神州信息(000555) - 2025 Q2 - 季度财报

Section 1 Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, having attended the review meeting, and plan no cash dividends, bonus shares, or capital reserve conversions for the reporting period - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[4] - All directors attended the board meeting to review this semi-annual report[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents This section lists the report's complete directory structure, including nine main chapters covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data - The report contains nine main chapters, from important notices to other submitted data[8] Directory of Reference Documents Reference documents include financial statements signed and sealed by the company's head, chief accountant, and head of accounting, along with originals of all publicly disclosed company documents and announcements during the reporting period, available at the company's Capital Strategy Department - Reference documents include signed and sealed financial statements and original publicly disclosed documents[10] - The reference location is the company's Capital Strategy Department[10] Definitions This section provides definitions for common terms used in the report, including company abbreviations, names of affiliated companies, regulatory bodies, currency units, and the reporting period, to ensure clear understanding of the report's content - The reporting period refers to January 1, 2025, to June 30, 2025[11] - "The Company, Company, DCITS, the Group" all refer to Digital China Information Service Group Co., Ltd[11] Section 2 Company Profile and Key Financial Indicators I. Company Profile The company's stock abbreviation is "DCITS", stock code 000555, listed on the Shenzhen Stock Exchange, with Wang Yongli as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | DCITS | | Stock Code | 000555 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Digital China Information Service Group Co., Ltd. | | Chinese Abbreviation | DCITS | | Legal Representative | Wang Yongli | II. Contact Person and Contact Information The company's Board Secretary is Liu Weigang, and the Securities Affairs Representative is Li Dan, both located at DCITS Building, No. 18, East District, Courtyard 10, Xibeiwang East Road, Haidian District, Beijing, with identical phone and fax numbers, and email address dcits-ir@dcits.com Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Liu Weigang | DCITS Building, No. 18, East District, Courtyard 10, Xibeiwang East Road, Haidian District, Beijing | 010-61853676 | 010-62694810 | dcits-ir@dcits.com | | Securities Affairs Representative | Li Dan | DCITS Building, No. 18, East District, Courtyard 10, Xibeiwang East Road, Haidian District, Beijing | 010-61853676 | 010-62694810 | dcits-ir@dcits.com | III. Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, or document storage locations; the company approved amendments to its Articles of Association and a change in legal representative to Mr. Wang Yongli, which was completed on June 10, 2025 - The company's registered address, office address, website, and email address remained unchanged during the reporting period[16] - The company's legal representative changed from Mr. Guo Wei to Mr. Wang Yongli, with the industrial and commercial change registration completed on June 10, 2025[19] IV. Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 7.98% to 4.42 billion yuan, but net profit attributable to shareholders and non-recurring net profit both declined, while net cash flow from operating activities significantly decreased by 69.39%; total assets grew by 15.09%, and net assets attributable to shareholders slightly decreased Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,423,197,189.12 | 4,096,145,450.41 | 7.98% | | Net Profit Attributable to Listed Company Shareholders | -96,379,629.35 | -76,534,117.83 | -25.93% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | -97,222,316.83 | -82,323,883.01 | -18.10% | | Net Cash Flow from Operating Activities | -2,857,302,766.55 | -1,686,834,316.68 | -69.39% | | Basic Earnings Per Share (yuan/share) | -0.1003 | -0.0794 | -26.32% | | Diluted Earnings Per Share (yuan/share) | -0.1003 | -0.0794 | -26.32% | | Weighted Average Return on Net Assets | -1.72% | -1.24% | -0.48% | | Period-End Indicators | Current Period-End (yuan) | Prior Year-End (yuan) | Period-End vs. Prior Year-End Change | | Total Assets | 13,787,587,060.76 | 11,979,374,002.81 | 15.09% | | Net Assets Attributable to Listed Company Shareholders | 5,558,396,594.27 | 5,643,853,668.62 | -1.51% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - The company had no differences in accounting data under domestic and overseas accounting standards during the reporting period[21][22] VI. Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 842,687.48 yuan, primarily including government subsidies, fair value changes in financial assets, and reversal of impairment provisions for receivables, alongside non-current asset disposal gains/losses and other non-operating income/expenses Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets | -194,201.49 | | Government subsidies recognized in current profit or loss | 3,391,588.63 | | Gains/losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedging activities related to normal business operations | 6,959,720.03 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 4,391,418.23 | | Other non-operating income and expenses apart from the above | -11,854,694.42 | | Less: Income tax impact | 23.91 | | Minority interest impact (after tax) | 1,851,119.59 | | Total | 842,687.48 | - The company does not classify non-recurring gains and losses as recurring gains and losses[25] Section 3 Management Discussion and Analysis I. Main Business Activities During the Reporting Period The company actively responds to the national "Five Major Articles" strategy, focusing on digitalization to provide comprehensive digital transformation services for financial institutions and general industry clients; the FinTech industry is undergoing deep transformation driven by AI technology, with continuous growth in banking IT investment but intense competition, and the company maintains a leading market position in core business systems and channel management - The Central Financial Work Conference proposed focusing on "five major articles" including technology finance, green finance, inclusive finance, elderly care finance, and digital finance, guiding the development of FinTech[27] - AI technology is driving profound changes in the financial industry, promoting a "general-purpose and specialized integration" technology architecture and AI applications centered on processes[27] China Banking IT Solution Market Size | Year | Market Size (billion yuan) | YoY Growth | | :--- | :--- | :--- | | 2024 | 61.487 | 1.68% | - The company continues to innovate in the FinTech sector, maintaining its leading market position in core business systems, channel management, and open banking for thirteen consecutive years[35] FinTech Industry Development Trends The Central Financial Work Conference emphasized technology finance, with AI technology driving profound changes in the financial industry, building a "general-purpose and specialized integration" technical architecture to achieve intelligent processes and data-driven decision-making; in 2024, China's banking IT solution market reached 61.487 billion yuan, growing by 1.68%, indicating fierce competition but a clear direction towards intelligent upgrades for high-quality development - Breakthrough developments in AI technology are triggering profound changes in the financial industry, building a new "general-purpose and specialized integration" technical architecture by integrating general large models with financial business requirements[27] - In 2024, the market size of China's banking IT solutions was 61.487 billion yuan, a year-on-year increase of 1.68%, with the growth rate continuing to slow down[28] Company Main Business Introduction The company leverages "digital technology + data elements" for integrated innovation, providing comprehensive digital transformation services to financial institutions and general industry clients; in the financial sector, guided by ModelB@nk5.0, the company has built four major categories of digital solutions covering business, management, channels, and architecture, supporting core banking, credit, intermediate business, payments, digital banking, treasury management, open banking, asset-liability management, risk management, regulatory reporting, holistic data management, and enterprise-level microservice platforms - The company leverages "digital technology + data elements" for integrated innovation, providing comprehensive digital transformation services to financial institutions and general industry clients[29] - The company has built four major categories of solutions covering business, management, channels, and architecture, including distributed core banking systems, credit solutions, intermediate business solutions, payment solutions, digital banking solutions, treasury and cash management solutions, open banking, asset-liability solutions, risk management solutions, regulatory reporting solutions, holistic data management platforms, enterprise-level microservice platforms, enterprise service bus (ESB), and architecture management platforms[29][30][31][32][33][34] Company's Industry Position The company has received high industry recognition in FinTech, consistently ranking first in core business systems, channel management, and open banking according to CCID Consulting and IDC reports, while also improving its rankings in data intelligence, credit management, intermediate business, risk management, intelligent marketing, payment and clearing, and smart branch solutions - The company has maintained its market leadership in core business systems and channel management systems for thirteen consecutive years[35] - Rankings in data intelligence, credit management, intermediate business, risk management, intelligent marketing, payment and clearing, and smart branch solutions have all improved compared to last year[35] II. Core Competitiveness Analysis The company's core competitiveness lies in its continuously leading AI+FinTech capabilities, comprehensive full-stack solutions covering all banking scenarios, deep customer accumulation, excellent brand influence, active participation in industry standard development, and a FinTech industry ecosystem built with partners - During the reporting period, the company's R&D expenses reached 248 million yuan, with 9 new invention patents and 56 new software copyrights, totaling 2,420 items[36] - The company comprehensively upgraded its financial knowledge Q&A intelligent agent FinancialMaster and financial code assistant intelligent agent CodeMaster based on DeepSeek, and is promoting the transformation of all solutions to "+AI"[36] - The company has served over 2,000 financial institutions, including various banks, insurance, securities, and other financial sector clients, and over 11 overseas banks[39] - The company was recognized as one of Forbes China's "2025 AI Technology Enterprises TOP50" and other awards, and has approved 76 standards for release with 109 under research[40] - The company collaborates with Huawei, Tencent Cloud, and others, launching a "Financial Knowledge Q&A" joint intelligent agent integrated machine solution, and initiating the industry's first domestic cloud financial core system alliance and AIGC large model financial ecosystem[42] Deep Cultivation in AI+FinTech, Building Industry-Leading Technical Capabilities The company maintains high R&D investment, with 248 million yuan in R&D expenses during the reporting period and numerous new patents and copyrights; it actively embraces the AI wave, upgrading FinancialMaster and CodeMaster based on DeepSeek, and independently developing the "Qiankun" enterprise-level digital intelligence platform to build a "business model digital asset library" for core banking systems, thereby strengthening its technological leadership R&D Investment and Achievements | Indicator | Quantity/Amount | | :--- | :--- | | R&D Expenses (RMB) | 248 million yuan | | New Invention Patents | 9 items | | New Software Copyrights | 56 items | | Cumulative Software Copyrights and Valid Patents | 2,420 items | - The company comprehensively upgraded its financial knowledge Q&A intelligent agent FinancialMaster and financial code assistant intelligent agent CodeMaster based on DeepSeek, and is promoting the transformation of all solutions to "+AI"[36] - Independently developed "Qiankun" enterprise-level digital intelligence platform, a supporting foundation for digital transformation in the financial industry, deeply integrating cloud-native architecture, distributed computing, big data analytics, and artificial intelligence technologies[36] - Built a "business model digital asset library" for core banking systems, enhancing the competitiveness of core solutions and promoting business model transformation and upgrading[37] Full-Stack Solutions, Comprehensive Services for Financial Digital Transformation The company offers a complete product matrix covering the entire banking operation chain, including business operations, channel services, internal management, risk compliance, and technical architecture, forming a full-stack solution with "broad product coverage + deep service penetration"; the service process forms a "consulting-implementation-operation and maintenance" closed loop, assisting clients in efficient operations and digital upgrades - The company's product system covers the entire banking operation chain, including core business, credit, payment, channel services, internal management, risk compliance, data management, and technical architecture[38] - Provides end-to-end service capabilities from strategic consulting to implementation and continuous operation and maintenance, forming a "consulting-implementation-operation and maintenance" closed loop[38] Deep Customer Accumulation, Continuously Driving Business Expansion and Breakthroughs The company has deeply cultivated the FinTech sector, serving over 2,000 financial institutions, including the central bank, state-owned large banks, joint-stock banks, city commercial banks, rural credit cooperatives, private banks, and foreign banks, as well as insurance, securities, and other financial sector clients, with overseas services to over 11 banks; extensive customer coverage and project experience translate into professional capabilities and market advantages - The company has served over 2,000 financial institutions, including the central bank, 3 policy banks, 6 major state-owned banks, 12 joint-stock commercial banks, over 100 city commercial banks, over 400 rural credit cooperatives and rural commercial banks, 16 private banks and independent direct banks, and 40 foreign banks[39] - Overseas services extend to over 11 overseas banks, and the company has accumulated a large number of clients in insurance, securities, and other financial sectors[39] Excellent Brand Influence, Deep Involvement in Industry Standard Development The company has received multiple prestigious awards in the FinTech sector, with several products earning innovation solution and technology implementation honors; by leading and participating in standard setting, the company drives industry development, having approved 76 standards for release and 109 under research by the end of the reporting period, and has been ranked as a "leader" in the central bank's financial information service API field for four consecutive years - The company was recognized as one of Forbes China's "2025 AI Technology Enterprises TOP50" and iResearch's "Top 50 Excellent Service Providers in China's FinTech Industry" among other prestigious awards[40] - As of the end of the reporting period, the company had approved 76 standards for release and 109 standards under research[40] - The company has been ranked as a "leader" in the central bank's financial information service API field for four consecutive years, being the only FinTech company on the list[40] Collaborating with Partners to Build a FinTech Industry Ecosystem The company actively participates in authoritative industry groups in finance and technology, establishing industry-academia-research collaborations with national financial think tanks and top universities; during the reporting period, it launched a "Financial Knowledge Q&A" joint intelligent agent with Huawei, signed a big data product cooperation agreement with Tencent Cloud, and, with Huawei Cloud, Tencent Cloud, and Alibaba Cloud, initiated the industry's first domestic cloud financial core system alliance and AIGC large model financial ecosystem to jointly promote industry development - The company has established industry-academia-research collaborations with the National Institution for Finance & Development, Tsinghua University, and the University of Science and Technology of China, and co-established the "Digital Intelligent Decision Joint Laboratory" with the University of Science and Technology of China[42] - Launched a "Financial Knowledge Q&A" joint intelligent agent integrated machine solution with Huawei, and signed a big data product cooperation framework agreement with Tencent Cloud[42] - Initiated the industry's first domestic cloud financial core system alliance with Huawei Cloud, Tencent Cloud, and Alibaba Cloud, and the industry's first AIGC large model financial ecosystem with Huawei, Tencent Cloud, and other enterprises[42] III. Main Business Analysis During the reporting period, the company achieved operating revenue of 4.42 billion yuan, a year-on-year increase of 7.98%, with software development and technical services revenue reaching 2.91 billion yuan, up 10.57%; however, net profit attributable to shareholders and non-recurring net profit declined due to increased overdue receivables and impairment provisions; the company has business layouts in financial, government and enterprise, and operator sectors, and is actively expanding overseas markets and AI empowerment Key Financial Data (Current Reporting Period) | Indicator | Amount (billion yuan) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 4.42 | 7.98% | | Software Development and Technical Services Revenue | 2.91 | 10.57% | | Net Profit Attributable to Listed Company Shareholders | -0.96 | -25.93% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | -0.97 | -18.10% | - The decline in the company's net profit attributable to shareholders and non-recurring net profit was primarily due to increased overdue receivables from some clients, leading to impairment provisions in accordance with prudence principles[44] Revenue by Business Segment (Current Reporting Period) | Business Segment | Revenue (billion yuan) | | :--- | :--- | | Financial Digitalization | 1.95 | | Government and Enterprise Digitalization | 1.99 | | Operator Digitalization | 0.465 | Overview During the reporting period, the company's operating revenue was 4.42 billion yuan, a year-on-year increase of 7.98%, with software development and technical services revenue at 2.91 billion yuan, up 10.57%; however, net profit attributable to shareholders and non-recurring net profit declined due to increased overdue receivables and impairment provisions; financial digitalization revenue was 1.95 billion yuan, government and enterprise digitalization revenue was 1.99 billion yuan, and operator business revenue was 465 million yuan Main Business Revenue for the Current Reporting Period | Business Type | Revenue (billion yuan) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 4.423 | 7.98% | | Software Development and Technical Services Revenue | 2.907 | 10.57% | | Financial Industry Revenue | 1.950 | - | | Government and Enterprise Business Revenue | 1.993 | - | | Operator Business Revenue | 0.465 | - | - Net profit attributable to listed company shareholders was -96.38 million yuan, and net profit attributable to listed company shareholders after deducting non-recurring gains and losses was -97.22 million yuan, primarily affected by impairment provisions for receivables[44] Deep Cultivation in Financial Software and Services, Promoting FinTech Strategic Upgrades The company's financial software and services business market share has risen to first among Chinese listed companies, with revenue of 1.64 billion yuan, a year-on-year increase of 3.21%, and contract value of 1.85 billion yuan, up 2.60%; the key account strategy is steadily advancing, with revenue from state-owned large banks and joint-stock banks growing by 26.28%; the company accelerates the deep integration of AI technology with financial business scenarios, achieving AI implementation in core, credit, channel, data, risk, and cloud solutions - The company's market share in China's banking IT solution market has risen to first among Chinese listed companies[46] Financial Software and Services Business Performance | Indicator | Amount (billion yuan) | YoY Growth | | :--- | :--- | :--- | | Financial Software and Services Business Revenue | 1.639 | 3.21% | | Financial Software and Services Business Contract Value | 1.846 | 2.60% | | Revenue from State-owned Large Banks and Joint-stock Banks | - | 26.28% | | Revenue from Top Ten Financial Software and Services Clients | - | 20.74% | - The company has achieved AI implementation in projects across core, credit, channel, data, risk, and cloud solutions[47] Driving Banking Business Enhancement and Digital Transformation The company's core solutions continue to lead the industry, successfully signing benchmark projects such as Huaxia Bank's core deposit system and Jiangsu Bank's new-generation core system, solidifying its leading position; credit solutions help banks enhance risk control efficiency, while intermediate business and payment solutions improve product launch speed, profitability, and transaction processing efficiency - Signed key projects including Huaxia Bank's core deposit project, Jiangsu Bank's new-generation core system and customer information management system construction project, and Jilin Rural Credit Union's new-generation core system construction project[48] - Credit solutions signed Ping An Bank's "Retail Loan Post-Loan Early Warning Project" and "AI Interbank Knowledge Base Construction Project," enhancing credit risk control efficiency[48] - Intermediate business won bids for Xinjiang Bank's medical insurance mobile payment and Qinghai Rural Credit Union's scenario settlement platform projects, while payment solutions serve clients such as China Development Bank and Zhongguancun Bank[48][49] Optimizing Bank Omnichannel Service Experience and Scenario Penetration Capabilities The company's digital finance business focuses on omnichannel digital transformation, with electronic channels collaborating with China Resources Bank and China Trust Bank, and counter solutions implemented at Mintai Bank, MUFG Bank, and others; treasury and cash management system market expansion is significant, signing with Bank of Communications, Huaxia Bank, etc., and winning bids for Shanghai Rural Commercial Bank, Guangfa Bank, etc.; open banking signed the Shanghai Rural Commercial Bank-Enterprise Direct Link project and won bids for Shangrao Bank and Tianjin Bank's ecosystem cloud projects - Electronic channels completed cooperation agreements with China Resources Bank and China Trust Bank; counter-related solutions were implemented at Mintai Bank, MUFG Bank, and Chongqing Bank[50][51] - Treasury and cash management systems signed with Bank of Communications, Huaxia Bank, China Resources Bank, Tianjin Bank, and Bank of Ningbo, and won bids for key projects with Shanghai Rural Commercial Bank, Guangfa Bank, Chengdu Bank, and China Merchants Bank[51] - In open banking, signed the Shanghai Rural Commercial Bank-Enterprise Direct Link project and won bids for Shangrao Bank and Tianjin Bank's ecosystem cloud-related projects[51] Assisting Banks in Strengthening Compliance Operations and Refined Management Efficiency The company's asset-liability solutions successfully won and signed projects such as China Development Bank Head Office's asset-liability system construction project, enhancing banks' proactive management capabilities; risk management solutions won bids for China Development Bank and Hebei Bank's market risk Xinchuang projects, and secured Huashun Trust's comprehensive risk management system, among others; in the financial data asset domain, the company deeply cultivates intelligent data governance, data security, and large model scenario applications; the integrated regulatory reporting solution has completed iterative upgrades to meet regulatory requirements - Asset-liability solutions won and signed projects such as China Development Bank Head Office's asset-liability system construction project and Agricultural Development Bank Head Office's business domain project cluster[52] - Risk management solutions won bids for China Development Bank and Hebei Bank's market risk Xinchuang projects, having successfully launched 6 market risk Xinchuang projects to date[52] - In the financial data asset domain, built core capabilities for data asset operations, with scenario implementations such as intelligent data querying and corporate/retail intelligent agents[52] - The integrated regulatory reporting solution has completed comprehensive iterative upgrades and has been implemented in multiple policy banks, city commercial banks, rural commercial banks, and finance companies[53] Solidifying Bank Technology Foundation and Platform Support Capabilities The company's enterprise-level microservice platform and Enterprise Service Bus (ESB) continue to hold a leading market position, signing with Ningxia Rural Commercial Bank and winning bids for Jiangxi Rural Credit Union, Tailong Bank, and other projects, building flexible and scalable distributed technical architectures for banks; the architecture management platform successfully signed with Shanghai Rural Commercial Bank and won bids for Ping An Bank and other projects, helping banks achieve dynamic adaptation between IT architecture and business requirements - The enterprise-level microservice platform and Enterprise Service Bus (ESB) continue to hold a leading market position, signing with Ningxia Rural Commercial Bank and winning bids for Jiangxi Rural Credit Union, Tailong Bank, and other client projects[54] - The architecture management platform successfully signed with Shanghai Rural Commercial Bank and won bids for Ping An Bank and other client projects, helping banks achieve dynamic adaptation between IT architecture and business requirements[54] Accelerating Overseas Market Expansion, Boosting FinTech Strategic Growth The company continues to advance its globalization strategy, increasing investment in overseas business, focusing on team building, product R&D, market expansion, and delivery assurance; it has introduced professional teams with rich overseas experience, upgraded its overseas product system centered on the Sm@rtOneBank integrated financial solution, and targeted the Southeast Asian market, signing a corporate online banking system for a digital bank in Singapore and assisting a Malaysian bank in deploying its corporate credit comprehensive management solution - The company increased investment in overseas business, introduced experienced sales and pre-sales teams, and supplemented technical architecture and delivery specialized teams[55] - Upgraded its overseas product system centered on the Sm@rtOneBank integrated financial solution, actively exploring the application of AI in overseas financial scenarios[55] - Overseas business targets key Southeast Asian markets, signing a corporate online banking system for a digital bank in Singapore and assisting a Malaysian bank in deploying its corporate credit comprehensive management solution[55] Actively Embracing the AI Wave, Strengthening FinTech Strategic Empowerment As a leading FinTech enterprise, the company continues to build vertical large models for the financial industry, deeply cultivating "AI+Finance" application scenarios; based on DeepSeek, it comprehensively upgraded its financial knowledge Q&A intelligent agent FinancialMaster and financial code assistant CodeMaster, and partnered with Huawei to launch a "Financial Knowledge Q&A" intelligent agent integrated machine solution; CodeMaster has been deployed in multiple core banking delivery projects, significantly improving coding efficiency; the full range of solutions has achieved AIGC scenario implementation, driving credit business transformation from "experience-driven" to "data-intelligent-driven" - The company comprehensively upgraded its financial knowledge Q&A intelligent agent FinancialMaster and financial code assistant intelligent agent CodeMaster based on DeepSeek[56] - Partnered with Huawei to launch a "Financial Knowledge Q&A" intelligent agent integrated machine solution running on the Ascend AI software and hardware platform[56] - CodeMaster has been deployed in multiple core banking delivery projects, with significant improvements in coding efficiency under large model assistance, and generated code quality reaching the level of senior developers[56] - The "+AI" strategy for all solutions has achieved AIGC scenario implementation in core, credit, channel, data, risk, and cloud solutions[57] Year-on-Year Changes in Key Financial Data During the reporting period, the company's operating revenue increased by 7.98%, but financial expenses and income tax expenses changed significantly; net cash flow from operating activities decreased by 69.39% year-on-year, mainly due to increased cash payments for goods and services; net cash flow from investing activities significantly decreased by 598.67%, while net cash flow from financing activities increased by 135.00%, primarily due to increased bank borrowings Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,423,197,189.12 | 4,096,145,450.41 | 7.98% | - | | Financial Expenses | 39,689,938.66 | 17,149,895.20 | 131.43% | Increase in interest expenses | | Income Tax Expenses | -23,411,304.24 | -10,076,186.61 | -132.34% | Decrease in deferred income tax expenses | | R&D Investment | 235,998,634.96 | 271,893,471.65 | -13.20% | - | | Net Cash Flow from Operating Activities | -2,857,302,766.55 | -1,686,834,316.68 | -69.39% | Increase in cash paid for goods and services | | Net Cash Flow from Investing Activities | -144,032,281.02 | -20,615,277.00 | -598.67% | Decrease in matured and redeemed wealth management products | | Net Cash Flow from Financing Activities | 1,963,608,881.25 | 835,572,157.16 | 135.00% | Increase in bank borrowings | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[59] Composition of Operating Revenue During the reporting period, the company's total operating revenue was 4.42 billion yuan, a year-on-year increase of 7.98%; by industry, government and enterprise revenue accounted for the highest proportion (45.06%), growing by 28.58%; financial revenue accounted for 44.09%, decreasing by 3.12%; operator revenue accounted for 10.52%, decreasing by 11.20%; by product, software development and technical services revenue accounted for 65.72%, growing by 10.57%; system integration revenue accounted for 34.22%, growing by 3.34%; domestic revenue accounted for 99.96%, growing by 7.97% Composition of Operating Revenue (Current Reporting Period) | Category | Item | Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Total | Total Operating Revenue | 4,423,197,189.12 | 100% | 7.98% | | By Industry | Financial | 1,950,076,270.62 | 44.09% | -3.12% | | | Government and Enterprise | 1,992,910,364.22 | 45.06% | 28.58% | | | Operator | 465,415,106.88 | 10.52% | -11.20% | | By Product | Software Development and Technical Services | 2,907,042,591.96 | 65.72% | 10.57% | | | System Integration | 1,513,644,108.10 | 34.22% | 3.34% | | By Region | Domestic Region | 4,421,503,142.65 | 99.96% | 7.97% | | | Overseas Region | 1,694,046.47 | 0.04% | 45.33% | Gross Profit Margin by Industry Segment Change | Industry | Gross Profit Margin (Current Reporting Period) | Gross Profit Margin YoY Change | | :--- | :--- | :--- | | Financial | 15.90% | 0.40% | | Government and Enterprise | 11.54% | 1.92% | | Operator | 8.87% | -7.09% | Composition of Main Business Costs During the reporting period, the company's main business costs primarily consisted of personnel and technical collaboration expenses and equipment procurement costs; personnel and technical collaboration expenses accounted for 57.53%, increasing by 9.84% year-on-year, while equipment procurement costs accounted for 40.27%, increasing by 6.45% year-on-year Composition of Main Business Costs (Current Reporting Period) | Cost Component | Amount (yuan) | Proportion of Operating Costs | YoY Change | | :--- | :--- | :--- | :--- | | Personnel and Technical Collaboration | 2,208,207,483.85 | 57.53% | 9.84% | | Equipment Procurement | 1,545,676,808.84 | 40.27% | 6.45% | | Other | 84,300,957.89 | 2.20% | 3.67% | IV. Non-Core Business Analysis During the reporting period, the company's non-core businesses impacted total profit, with asset impairment losses reaching 130 million yuan, accounting for 83.50% of total profit, mainly due to expected credit losses on receivables, contract asset impairment, and inventory write-downs; investment income and fair value change gains/losses had a smaller impact on total profit and were less sustainable Impact of Non-Core Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 6,733,538.76 | -4.31% | Investment income from holding and disposing of trading financial assets, and equity method accounting for long-term equity investments | Investment income from holding and disposing of trading financial assets is not sustainable | | Fair Value Change Gains/Losses | -320,490.48 | 0.21% | Fair value changes of trading financial assets | No | | Asset Impairment | -130,518,768.13 | 83.50% | Provision for expected credit losses on receivables, contract asset impairment, and inventory write-downs | Yes | | Non-Operating Income | 829,348.45 | -0.53% | Clearing of intercompany balances, receipt of compensation, etc. | No | | Non-Operating Expenses | 12,878,244.36 | -8.24% | Payment of late fees and compensation, etc. | No | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets were 13.79 billion yuan, an increase of 15.09% from the end of the previous year; among current assets, monetary funds significantly decreased by 9.92%, mainly due to increased cash payments for goods and services; inventory significantly increased by 12.50%, mainly due to increased uncompleted projects; among current liabilities, short-term borrowings significantly increased by 14.02%, mainly due to new short-term borrowings Major Changes in Asset Composition (Current Reporting Period-End vs. Prior Year-End) | Item | Current Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Proportion Change | Explanation of Major Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 990,744,799.81 | 7.19% | 2,049,377,961.97 | 17.11% | -9.92% | Due to increased cash payments for goods and services | | Inventory | 4,644,878,932.71 | 33.69% | 2,538,700,097.19 | 21.19% | 12.50% | Due to increased uncompleted projects | | Short-term Borrowings | 2,369,830,086.96 | 17.19% | 380,245,134.25 | 3.17% | 14.02% | Due to new short-term borrowings | Major Changes in Asset Composition At the end of the reporting period, the company's total assets were 13.79 billion yuan, an increase of 15.09% from the end of the previous year; monetary funds decreased by 9.92%, mainly due to increased cash outflows from operating activities; inventory increased by 12.50%, mainly due to increased uncompleted projects; short-term borrowings significantly increased by 14.02%, reflecting increased financing activities Major Changes in Asset and Liability Items | Item | Current Period-End (yuan) | Prior Year-End (yuan) | Proportion Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 990,744,799.81 | 2,049,377,961.97 | -9.92% | | Inventory | 4,644,878,932.71 | 2,538,700,097.19 | 12.50% | | Short-term Borrowings | 2,369,830,086.96 | 380,245,134.25 | 14.02% | Major Overseas Asset Information The company had no major overseas assets requiring disclosure during the reporting period - The company had no major overseas assets during the reporting period[70] Assets and Liabilities Measured at Fair Value At the end of the reporting period, the company's financial assets measured at fair value totaled 227 million yuan, primarily including trading financial assets and other equity instrument investments; trading financial assets had a period-end balance of 85.49 million yuan, with a fair value change loss of 0.32 million yuan for the period; other equity instrument investments had a period-end balance of 141 million yuan Assets and Liabilities Measured at Fair Value (Period-End) | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses for the Period (yuan) | Period-End Balance (yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 176,818,604.99 | -320,490.48 | 85,494,068.01 | | Other Equity Instrument Investments | 141,173,340.87 | 41,028.49 (Cumulative fair value change recognized in equity) | 141,214,369.36 | | Subtotal of Financial Assets | 317,991,945.86 | -320,490.48 | 226,708,437.37 | - The company's major asset measurement attributes did not undergo significant changes during the reporting period[72] Asset Rights Restriction Status as of the End of the Reporting Period At the end of the reporting period, the company's restricted long-term receivables amounted to 62.65 million yuan, representing project receivables pledged for bank borrowings; restricted monetary funds totaled 34.41 million yuan, including funds frozen due to cases, security deposits, and funds frozen for uncompleted services; apart from these, the company had no other major assets seized, detained, frozen, mortgaged, or pledged Asset Rights Restriction Status (Period-End) | Item | Amount (yuan) | Restriction Reason | | :--- | :--- | :--- | | Restricted Long-term Receivables | 62,651,632.50 | Project receivables pledged for bank borrowings | | Restricted Monetary Funds | 34,418,544.07 | Funds frozen due to cases, security deposits, service frozen funds | VI. Investment Status Analysis During the reporting period, the company's investment amounted to 1.8 million yuan, a significant decrease of 91.75% compared to the same period last year; the company had no securities investments, derivative investments, or use of raised funds Investment Amount for the Reporting Period | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 1,800,000.00 | 21,818,400.00 | -91.75% | - The company had no securities investments, derivative investments, or use of raised funds during the reporting period[75][76][77] VII. Major Asset and Equity Sales The company did not undertake any major asset or equity sales during the reporting period - The company did not sell major assets during the reporting period[78] - The company did not sell major equity during the reporting period[79] VIII. Analysis of Major Holding and Participating Companies During the reporting period, the net profits of the company's major holding subsidiaries, Digital China Rongxin Software Co., Ltd. and Digital China Information Systems Co., Ltd., were both negative, affected by slowing client digitalization demand and intense industry competition; Beijing Digital China Technology Co., Ltd. achieved a net profit of 12.80 million yuan; the company established a new subsidiary, DCITS Malaysia Sdn.Bhd., and deregistered Hainan Digital China Fangyuan Technology Co., Ltd., with no significant impact on overall production, operations, or performance Financial Overview of Major Holding and Participating Companies (Current Reporting Period) | Company Name | Net Profit (yuan) | Impact Explanation | | :--- | :--- | :--- | | Digital China Rongxin Software Co., Ltd. | -31,420,474.53 | Business development affected by slowing client digitalization demand and intense industry competition | | Digital China Information Systems Co., Ltd. | -49,703,506.89 | Business development affected by slowing client digitalization demand and intense industry competition | | Beijing Digital China Technology Co., Ltd. | 12,804,883.00 | - | | Digital China Guoxin (Beijing) Information Technology Co., Ltd. | -12,630,059.30 | Net profit affected by credit impairment provision and reversal | | Digital China Information Technology Singapore Pte.Ltd. | -12,764,399.42 | Net profit affected by exchange rate fluctuations | | Smart Digital China Tianrong (Beijing) Monitoring Technology Co., Ltd. | 15,049,143.68 | - | - During the reporting period, a new subsidiary, DCITS Malaysia Sdn.Bhd., was established, and Hainan Digital China Fangyuan Technology Co., Ltd. was deregistered, with no significant impact on overall production, operations, or performance[81] IX. Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[82] X. Risks Faced by the Company and Countermeasures The company faces risks of intensifying industry competition, product and technology underperformance, and team and talent loss; to address these, the company implements measures such as technological innovation, cost control, internationalization strategy, increased R&D investment, deepened industry-academia-research cooperation, building a multi-dimensional talent development system, and implementing equity incentives to consolidate market position, enhance technological competitiveness, and stabilize its core team - Risk 1: Intensifying industry competition. Countermeasures: Focus on technological innovation as the core driver, deeply cultivate cutting-edge technologies such as artificial intelligence, accelerate product iteration and optimization; strengthen cost control and improve operational efficiency; actively promote international strategic layout and explore overseas markets[82] - Risk 2: Product and technology underperformance. Countermeasures: Guided by ModelB@nk5.0 as a strategic blueprint, actively embrace the artificial intelligence technology wave, continuously promote product innovation and iteration through the integrated innovation of "digital technology + data elements"; increase R&D investment and deepen collaborative cooperation with scientific research institutions[83] - Risk 3: Team and talent loss. Countermeasures: Build a multi-dimensional talent development system, provide competitive compensation and benefits, create transparent promotion channels and systematic training mechanisms; foster a high-quality cultural atmosphere; actively implement equity incentive plans[84] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system[85] - The company did not disclose a valuation enhancement plan[85] XII. Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[85] Section 4 Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management of the Company During the reporting period, there were multiple changes in the company's directors, supervisors, and senior management, including the election of independent director Dou Chao, and the departure of independent director Fang Yihan, director Fei Jianjiang, and several vice presidents and regional presidents due to the expiration of their terms Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Dou Chao | Independent Director | Elected | January 16, 2025 | Re-election | | Fang Yihan | Independent Director | Term Expired | January 16, 2025 | Re-election | | Fei Jianjiang | Director | Term Expired | January 16, 2025 | Re-election | | Hao Jinrui | Vice President | Term Expired | January 16, 2025 | Re-election | | Yu Ding | North Region President | Term Expired | January 16, 2025 | Re-election | | Tang Zhifeng | South Region President | Term Expired | January 16, 2025 | Re-election | | Dai Ke | Vice President | Term Expired | January 16, 2025 | Re-election | | Yan Guangming | Vice President | Term Expired | January 16, 2025 | Re-election | | Li Kanxia | Vice President | Term Expired | January 16, 2025 | Re-election | | Ma Hongjie | Vice President | Term Expired | January 16, 2025 | Re-election | II. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[88] III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures On March 27, 2025, the company canceled 18.54 million stock options from the 2023 stock option incentive plan that did not meet performance targets, with all granted but unexercised options now canceled; the lock-up period for the 2022 employee stock ownership plan has expired, and 2.50 million shares were sold during the reporting period - On March 27, 2025, the company approved and completed the cancellation of the remaining 18.54 million stock options from the 2023 stock option incentive plan on April 21, 2025, due to not meeting the 2024 company-level performance targets[89][90][621] - Following this cancellation, all granted but unexercised stock options under the company's 2023 stock option incentive plan will be canceled[90][622] - The lock-up period for the company's 2022 employee stock ownership plan has expired, and 2,503,900 shares were sold during the reporting period[91] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[93] V. Social Responsibility The company is committed to building a sustainable value chain, deepening its FinTech responsibilities, prioritizing customer focus, ensuring data security and privacy protection, and promoting responsible supply chain management; concurrently, the company empowers talent development by providing health management, humanistic care, and career development support, and actively practices "technology for good" by donating funds to the University of Science and Technology of China to support university scientific research innovation and FinTech talent cultivation - The company adheres to a "customer-centric" philosophy, ensuring customer data security and privacy protection, and promotes responsible supply chain management, advocating that suppliers practice ESG principles[93] - The company builds a multi-dimensional talent development system, offering health check-ups, employee mutual aid funds, humanistic care activities, labor rights protection, and career development channels[94] - During the reporting period, the company donated funds to the University of Science and Technology of China to support university scientific research innovation and FinTech talent cultivation, practicing "technology for good"[94] Section 5 Significant Matters I. Commitments Fulfilled and Overdue Unfulfilled Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period During the reporting period, the company had no commitments by its actual controller, shareholders, related parties, acquirers, or other committed parties that were fulfilled or overdue and unfulfilled as of the end of the reporting period - The company had no unfulfilled commitments by related parties during the reporting period[97] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation by the controlling shareholder and other related parties of the listed company - The company had no non-operating fund occupation by the controlling shareholder and other related parties during the reporting period[98] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[99] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[100] V. Board of Directors' and Supervisory Board's Explanation on the "Non-Standard Audit Report" for the Current Reporting Period During the reporting period, the company did not receive a "non-standard audit report" from its accounting firm - The company did not receive a "non-standard audit report" from its accounting firm during the reporting period[101] VI. Board of Directors' Explanation on the "Non-Standard Audit Report" for the Previous Year During the reporting period, the company had no explanation regarding the "non-standard audit report" for the previous year - The company had no explanation regarding the "non-standard audit report" for the previous year during the reporting period[101] VII. Matters Related to Bankruptcy and Reorganization The company did not undergo any bankruptcy or reorganization matters during the reporting period - The company did not undergo any bankruptcy or reorganization matters during the reporting period[101] VIII. Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters; other litigation includes a sales contract dispute with supplier Anlibofa Group Co., Ltd. involving 46.72 million yuan, where a first-instance judgment ordered Anlibofa to pay the price and interest, but no enforcement results are available yet; newly added and ongoing other litigation and arbitration cases during the reporting period amounted to approximately 913 million yuan, some of which have been concluded with no significant impact on the company - The company had no significant litigation or arbitration matters during this reporting period[102] Overview of Other Litigation Matters | Basic Information of Litigation | Amount Involved (million yuan) | Litigation Progress | Judgment Result and Impact | | :--- | :--- | :--- | :--- | | Sales contract dispute with Anlibofa Group Co., Ltd. | 46.72 | First-instance judgment ordered Anlibofa to pay the price and interest, no enforcement results yet | For basic information on this case, please refer to the company's announcement disclosed on Juchao Information Network | | Newly added and ongoing other litigation and arbitration cases during the reporting period | 913.3409 | Some awaiting trial, some under review, some concluded | Concluded cases are executed according to judgment/ruling, ongoing cases are still under review, with no significant impact on the company | IX. Penalties and Rectification Status The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[104] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[105] XI. Significant Related Party Transactions During the reporting period, the company engaged in ordinary course related party transactions, primarily involving sales of goods, technical services, and procurement of goods and administrative services; transaction pricing followed market principles and did not exceed approved limits; the company did not engage in other significant related party transactions such as asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships Ordinary Course Related Party Transactions (Current Reporting Period) | Related Party | Related Party Transaction Content | Related Party Transaction Amount (million yuan) | Approved Transaction Limit (million yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Digital China Holdings Limited | Procurement of Goods | 8.21 | 50.00 | No | | Digital China Group Co., Ltd. | Procurement of Goods | 23.1616 | 550.00 | No | | China Southern Airlines Company Limited | Sales of Goods, Technical Services, or Labor | 20.2572 | 70.00 | No | | Total | - | 77.1666 | 815.00 | - | - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[109] - The company had no related party transactions involving joint external investments during the reporting period[110] - The company had no related party creditor-debtor relationships during the reporting period[111]