NeuSoft(SH:600718)2022-04-28 16:00Financial Performance - Neusoft achieved a new record in new contract value, surpassing 10 billion RMB for the first time in 2021, following a previous milestone in 2020[2]. - The net profit for the parent company in 2021 was 524,607,234 RMB, with an undistributed profit of 5,298,038,390 RMB at year-end[8]. - Neusoft reported a total revenue of RMB 10.5 billion for the year 2021, representing a year-on-year growth of 15%[16]. - The company achieved a net profit of RMB 1.2 billion in 2021, which is an increase of 20% compared to the previous year[16]. - Neusoft Corporation reported a revenue of CNY 8.73 billion in 2021, representing a 14.60% increase from CNY 7.62 billion in 2020[29]. - The net profit attributable to shareholders was CNY 1.17 billion in 2021, a significant increase of 794.35% compared to CNY 131.18 million in 2020[29]. - The company's net cash flow from operating activities reached CNY 782.74 million, up 39.75% from CNY 560.08 million in 2020[31]. - Basic earnings per share (EPS) for 2021 was CNY 0.98, compared to CNY 0.11 in 2020, marking a 794.35% increase[31]. - The company reported a significant increase in sales expenses, totaling ¥610,234,217, which is a 9.20% rise from ¥558,823,928 last year[93]. - The company’s international business revenue was impacted by currency exchange losses due to the appreciation of the RMB, affecting overall performance in international markets[96]. Business Growth and Strategy - The company's main business revenue and profit showed good growth despite challenges such as the pandemic and semiconductor shortages, with the automotive electronics business (excluding Neusoft Ruichi) growing nearly 50%[2]. - Neusoft plans to expand its market presence in Southeast Asia, targeting a revenue increase of 25% in this region for 2022[16]. - Neusoft is developing new AI-driven healthcare solutions, with an expected launch in Q3 2022, aiming to capture a 10% market share in the digital health sector[16]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[30]. - Neusoft's future outlook includes a projected revenue growth of 18% for the upcoming fiscal year, driven by increased demand for digital transformation solutions[173]. - Neusoft plans to invest 1 billion RMB in R&D for new technologies and products in the next fiscal year, focusing on AI and cloud computing[173]. - The company aims to expand its market presence in Southeast Asia, targeting a revenue growth of 30% in that region by 2023[181]. - Neusoft is exploring potential acquisitions to enhance its capabilities in the healthcare sector, with a budget of 500 million RMB allocated for this purpose[173]. Research and Development - Neusoft's R&D expenditure reached RMB 1.5 billion, accounting for approximately 14.3% of total revenue, highlighting its commitment to innovation[16]. - The company registered 427 new software copyrights and applied for 190 patents in 2021, with over 90% being invention patents[55]. - The company focused its R&D investments on key areas such as the HIS core platform, clinical decision support systems, and medical imaging information systems, enhancing its capabilities in healthcare and social security[82]. - The total R&D expenditure for the period was CNY 976,844,653, accounting for 11.18% of operating revenue, a year-on-year decrease of 1.41 percentage points[107]. - Neusoft's R&D expenditure for the year was CNY 1.5 billion, accounting for 14% of total revenue, reflecting a strong commitment to innovation[184]. Market Position and Industry Trends - Neusoft has established a comprehensive ecosystem in the healthcare sector, covering hospital information systems, medical insurance, and medical big data, positioning itself as an industry leader[2]. - The software and information technology service industry in China achieved a total revenue of 949.94 billion RMB in 2021, reflecting a year-on-year growth of 17.7%[45]. - The company continues to strengthen its leading position in the medical health and social security sectors, actively participating in national projects[57]. - Neusoft ranks first in the Chinese medical insurance information system market, maintaining its leadership position[63]. - The company’s automotive electronic market in China is projected to approach 900 billion yuan by 2025, driven by increasing vehicle ownership[50]. - The global automotive electronics market is expected to exceed 400 billion dollars by 2028, growing from approximately 218 billion dollars in 2020[50]. Corporate Governance and Management - The company has established a management committee mechanism to improve governance and operational efficiency, ensuring compliance with legal and regulatory requirements[151]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a diverse and professional governance structure[153]. - The company has implemented a performance evaluation and incentive mechanism to attract and retain key management and employees[155]. - The company has been recognized for its transparency and timely information disclosure, which has been positively acknowledged by regulatory authorities[160]. - The company actively engages in social responsibility initiatives, including educational support and poverty alleviation programs in rural areas[159]. Innovation and Technology - Neusoft is committed to leveraging its software capabilities to create value for society and enhance shareholder returns in the next 30 years[2]. - The company is focusing on innovation and globalization strategies, particularly in cloud computing, big data, IoT, AI, and blockchain technologies[44]. - Neusoft's digital twin technology is anticipated to improve operational efficiency by 20% for its clients in the manufacturing sector[16]. - The company launched a new AI-driven software platform that is expected to generate an additional 300 million RMB in revenue within the first year of operation[173]. - Neusoft's NeuSAR product ecosystem is beginning to take shape, with applications in advanced driver assistance systems and autonomous driving[73]. Strategic Partnerships and Collaborations - The company has initiated a strategic partnership with a leading automotive manufacturer to enhance its E/E architecture solutions, projected to generate an additional RMB 500 million in revenue by 2023[16]. - Neusoft's strategic partnership with Toshiba aims to leverage digital solutions, enhancing service capabilities in the technology sector[184]. - The company signed over 50 strategic agreements in the "Smart Cloud City" initiative, enhancing collaboration with key partners[54]. - Neusoft has signed a strategic partnership with a major telecom operator to enhance its service offerings, expected to generate an additional 200 million RMB in revenue[200]. Employee and Talent Management - The company employs 17,919 staff globally and has established a dual career development pathway to support employee growth and talent management[89]. - The total pre-tax remuneration for all board members amounted to 29.34 million yuan for the reporting period[169]. - The company has implemented a stock incentive plan to attract and retain key talent, which is expected to enhance overall performance[200].