Newtouch(SH:688590)2025-04-28 10:40Financial Performance - The company achieved total operating revenue of CNY 1.995 billion in 2024, an increase of 18.57% compared to 2023[23]. - Net profit attributable to shareholders decreased by 88.21% to CNY 8.09 million in 2024 from CNY 68.62 million in 2023[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -4.11 million, a decline of 109.51% year-on-year[23]. - Basic and diluted earnings per share fell by 89.66% to CNY 0.03 in 2024 from CNY 0.29 in 2023[24]. - The weighted average return on equity decreased by 4.69 percentage points to 0.56% in 2024[24]. - The company reported a net cash flow from operating activities of CNY 38.54 million, down 55.15% from the previous year[23]. - The total assets increased by 14.95% to CNY 3.103 billion at the end of 2024 compared to the end of 2023[23]. Research and Development - The company invested significantly in the development and marketing of cognitive large models, leading to increased sales and R&D expenses[25]. - The company increased its R&D investment, with annual R&D expenses of RMB 152 million, a year-on-year increase of 12.57%; 19 invention patent applications were submitted during the reporting period[51]. - The company has developed the Newtouch Insurance Data Warehouse Model (Newtouch IDWM), which enhances the efficiency of insurance information systems and has been widely applied in various insurance data projects[78]. - The self-developed "New Knowledge" large model utilizes MoE technology with a parameter scale of 98 billion, integrating trillions of tokens of industry data, improving inference accuracy and response speed[95]. - The company made progress in the research and development of distributed architecture products, accumulating experience in Openstack, Docker, Kubernetes, and other technologies[94]. Business Strategy and Market Position - The company is actively exploring new business areas, focusing on enhancing foundational computing and innovative traffic business[34]. - The company is committed to integrating AI technology into its core business, enhancing product innovation and market competitiveness[34]. - The company aims to enhance its core competitiveness by focusing on IT services and software robotics, with a higher emphasis on software products, SaaS services, and traffic services in the future[157]. - The company plans to complete the PaaS platform construction by 2025, increasing R&D investment in big data, cloud computing, artificial intelligence, blockchain, and privacy computing[160]. - The company aims to explore new growth points by tapping into the market for small and medium-sized financial institutions, enhancing its resilience against market fluctuations[120]. Corporate Governance - The company has established a governance structure that includes a shareholder meeting, board of directors, supervisory board, and senior management to ensure efficient and stable operations[165]. - The company has not reported any special arrangements for corporate governance[9]. - The company has no significant differences in governance compared to regulations set by the China Securities Regulatory Commission, ensuring adherence to legal standards[167]. - The company is focused on enhancing investor relations management and improving corporate governance through standardized practices[167]. - The company has established a long-term incentive mechanism to attract and retain talent, including stock option plans[193]. Shareholder Returns - The company distributed a total cash dividend of RMB 9,099,785.63 (including tax) to all shareholders for the first three quarters of 2024[7]. - The company completed a share repurchase of approximately RMB 60 million and distributed cash dividends of RMB 9.10 million, accounting for 28.44% of the net profit attributable to shareholders for the first nine months of 2024[49]. - The board approved the 2024 mid-term profit distribution authorization proposal for shareholders[178]. - The company has implemented a cash dividend policy that complies with the regulations and protects the rights of minority investors[196]. - The company plans to propose a three-year shareholder dividend return plan from 2024 to 2026[178]. Risk Management - The company has detailed various risks and countermeasures in the report, which can be found in the "Management Discussion and Analysis" section[4]. - The company has not faced any risks of more than half of the directors being unable to guarantee the authenticity, accuracy, and completeness of the annual report[12]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures for providing guarantees[11]. - The company’s accounts receivable at the end of the reporting period amounted to CNY 1.2517 billion, accounting for 62.73% of total revenue, posing a risk of bad debt losses[117]. Employee and Talent Management - The company has a total of 6,595 employees, with 4,769 in the parent company and 1,826 in major subsidiaries[191]. - The employee composition includes 5,224 production personnel, 317 sales personnel, 821 technical personnel, and 233 administrative personnel[192]. - The company emphasizes talent development through annual training plans and a focus on enhancing employee competencies[194]. - The company is committed to optimizing its compensation and incentive policies to align employee interests with long-term corporate goals[193]. - The average salary for R&D personnel rose to ¥21.07 million, up from ¥20.59 million[103]. Industry Trends and Outlook - The software and information technology service industry in China is projected to achieve a total software business revenue of CNY 13.73 trillion and a profit of CNY 1.70 trillion in 2024, representing a year-on-year growth of 10% and 8.7% respectively[63]. - The software industry is expected to experience a slowdown in growth in 2024, but revenue and profit are still anticipated to increase, leading the growth among all sectors of the national economy[69]. - The rise of generative AI is driving a new wave of technological transformation, with applications in text creation and video generation showcasing the potential of AI in various industries[70]. - The competitive landscape for large model AI is shifting towards a dual focus on pricing and application scenarios, with major players adopting differentiated pricing strategies to capture market share[71]. - The company is focusing on digital innovation ecosystems, emphasizing technology breakthroughs and resource allocation towards emerging industries like AI and 6G[74].