光环新网(300383) - 2023 Q1 - 季度财报

Important Content Reminder The company's board, supervisors, and management guarantee the accuracy and completeness of the quarterly report, with the CEO and CFO affirming financial information - The company's board of directors, supervisory board, directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false statements, misleading representations, or major omissions, and assume individual and joint legal liabilities[9][29] - Company head Yang Yuhang, chief financial officer, and head of accounting department Zhang Lijun declare and guarantee the truthfulness, accuracy, and completeness of the financial information in the quarterly report[2] Key Financial Data This section presents the company's key financial performance and position, including revenue, net profit, cash flow, assets, and equity Key Accounting Data and Financial Indicators Q1 2023 operating revenue grew 2.56% to RMB 1.88 billion, while net profit declined 10.26% to RMB 174 million, and operating cash flow surged 178.93% | Indicator | Current Period (RMB) | Prior Year Same Period (RMB) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,879,585,916.57 | 1,832,584,598.39 | 2.56% | | Net Profit Attributable to Shareholders of the Listed Company | 173,547,294.29 | 193,388,768.70 | -10.26% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | 173,697,451.47 | 193,192,679.87 | -10.09% | | Net Cash Flow from Operating Activities | 459,683,231.55 | 164,802,446.11 | 178.93% | | Basic Earnings Per Share (RMB/share) | 0.10 | 0.11 | -9.09% | | Diluted Earnings Per Share (RMB/share) | 0.10 | 0.11 | -9.09% | | Weighted Average Return on Net Assets | 1.42% | 1.47% | -0.05% | | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 19,437,497,742.65 | 19,310,568,716.34 | 0.66% | | Total Equity Attributable to Shareholders of the Listed Company | 12,279,769,155.91 | 12,105,851,674.49 | 1.44% | Non-recurring Gains and Losses and Amounts Non-recurring gains and losses for the period totaled -RMB 150,157.18, primarily from asset disposal and government grants | Item | Current Period Amount (RMB) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | -783,658.22 | | Government Grants Recognized in Current Profit or Loss | 603,650.00 | | Other Non-operating Income and Expenses | 3,554.97 | | Less: Income Tax Impact | -26,403.23 | | Impact on Minority Interests (After Tax) | 107.16 | | Total | -150,157.18 | - The company does not classify any non-recurring gains and losses listed in "Interpretive Announcement No. 1 for Information Disclosure by Companies Issuing Securities to the Public – Non-recurring Gains and Losses" as recurring gains and losses[5] Changes and Reasons for Key Accounting Data and Financial Indicators Key financial indicators saw significant changes across statements, influenced by cash management, maturing deposits, sales, and borrowings Significant Changes in Balance Sheet Items and Their Causes Trading financial assets rose 30.42% from cash management, while interest receivable and debt investments fell sharply due to maturing deposits | Balance Sheet Item | Period-end Balance (RMB) | Prior Year-end (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 1,463,622,906.33 | 1,122,210,616.19 | 30.42% | Mainly due to an increase in cash management balances | | Interest Receivable | 2,359,919.59 | 16,058,742.34 | -85.30% | Mainly due to the maturity of time deposits | | Debt Investments | 40,000,000.00 | 280,000,000.00 | -85.71% | Mainly due to the maturity of time deposits | | Advances from Customers | 2,101,377.37 | 1,214,546.14 | 73.02% | Mainly due to receiving advance rent payments from customers | | Employee Benefits Payable | 13,907,699.53 | 24,773,342.47 | -43.86% | Mainly due to payment of employee benefits accrued at the end of the prior year | Significant Changes in Income Statement Items and Their Causes Investment income surged 151.35% from cash management, credit impairment losses reversed, and other income significantly increased from tax deductions | Income Statement Item | Year-to-date (RMB) | Prior Year Same Period (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 9,272,825.93 | 3,689,220.88 | 151.35% | Mainly due to increased cash management income in the current period | | Credit Impairment Losses | 2,602,615.89 | -6,622,101.12 | -139.30% | Mainly due to the recovery of prior period accounts receivable in the current period | | Other Income | 5,975,049.38 | 498,441.24 | 1098.75% | Mainly due to increased input tax deductions in the current period | Significant Changes in Cash Flow Statement Items and Their Causes Operating cash flow surged 178.93% from sales collections, while investing and financing cash flows declined due to lower redemptions and reduced borrowings | Cash Flow Statement Item | Year-to-date (RMB) | Prior Year Same Period (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 459,683,231.55 | 164,802,446.11 | 178.93% | Mainly due to increased sales collections in the current period | | Net Cash Flow from Investing Activities | -305,122,645.36 | 186,830,568.52 | -263.32% | Mainly due to higher redemption of cash management products last year compared to the current period | | Net Cash Flow from Financing Activities | -126,975,305.10 | 51,501,910.42 | -346.54% | Mainly due to reduced borrowings in the current reporting period | Shareholder Information This section details the company's common and preferred shareholder structure, including total shareholder count and top ten holdings Total Number of Common Shareholders and Top Ten Shareholders' Holdings At period-end, the company had 121,373 common shareholders; Zhoushan Baihuida held the largest stake at 25.75%, with some shares pledged - The total number of common shareholders at the end of the reporting period was 121,373[33] | Shareholder Name | Shareholder Nature | Shareholding Percentage (%) | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhoushan Baihuida Equity Investment Management Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 25.75% | 462,821,994.00 | 0.00 | Pledged | 110,197,100.00 | | Guangdong Hengjian Capital Management Co., Ltd. | State-owned Legal Person | 2.27% | 40,866,412.00 | 0.00 | - | - | | Guangdong Hengkuo Investment Management Co., Ltd. | State-owned Legal Person | 0.94% | 16,955,046.00 | 0.00 | - | - | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.92% | 16,510,779.00 | 0.00 | - | - | | China Three Gorges Capital Holdings Co., Ltd. | State-owned Legal Person | 0.84% | 15,067,036.00 | 0.00 | - | - | | Jin Fushen | Domestic Natural Person | 0.71% | 12,769,150.00 | 0.00 | - | - | | Geng Guifang | Domestic Natural Person | 0.62% | 11,172,633.00 | 0.00 | - | - | | Industrial and Commercial Bank of China Co., Ltd. - E Fund ChiNext ETF | Other | 0.62% | 11,165,824.00 | 0.00 | - | - | | Gongqingcheng Yunchuang Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Person | 0.56% | 10,112,126.00 | 0.00 | - | - | | Xu Qingliang | Domestic Natural Person | 0.48% | 8,570,000.00 | 0.00 | - | - | - The company's actual controller, Mr. Geng Diangen, is the executive partner of Zhoushan Baihuida Equity Investment Management Partnership (Limited Partnership); Ms. Geng Guifang is Mr. Geng Diangen's elder sister, and Zhoushan Baihuida Equity Investment Management Partnership (Limited Partnership) and Geng Guifang are parties acting in concert[34] - Guangdong Hengjian Capital Management Co., Ltd. and Guangdong Hengkuo Investment Management Co., Ltd. are wholly-owned subsidiaries of Guangdong Hengjian Investment Holdings Co., Ltd., and are parties acting in concert[34] Total Number of Preferred Shareholders and Top 10 Preferred Shareholders' Holdings The company had no preferred shareholders during the reporting period - The total number of preferred shareholders with restored voting rights at the end of the reporting period was 0[33] Changes in Restricted Shares There were no significant changes in the company's restricted shares during the reporting period - There were no changes in the company's restricted shares during the reporting period[34] Other Important Matters This section covers operational performance, AI and cloud strategy, market expansion, and commitment to green data centers Overview of Business Operations and Financial Performance Q1 2023 operations were stable, with operating revenue growing 2.56% to RMB 1.88 billion, despite increased data center costs, as AI computing capacity expanded - In Q1 2023, the company's various businesses operated steadily, with economic recovery driving stable growth in operating revenue[17] | Indicator | Amount (10,000 RMB) | Year-on-year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 187,958.59 | 2.56% | | Operating Profit | 20,219.47 | -5.14% | | Net Profit Attributable to Shareholders of the Listed Company | 17,354.73 | -10.26% | - Increased fixed costs and operating costs for the company's data centers, due to new facilities, energy-saving renovations, and rising electricity prices, were partially offset by improved rack utilization rates, mitigating the decline in profit[17] - The company is fully accelerating the construction of data center projects in Beijing-Tianjin-Hebei, Yangtze River Delta, Central China, and Xinjiang regions to ensure the delivery of data center resources[36] - As of the end of the reporting period, over 48,000 operational cabinets were deployed, with a sales rate exceeding 90% and steadily increasing rack utilization[36] AI and Cloud Computing Strategy The company offers integrated IDC and cloud solutions via high-quality data centers, operates AWS China (Beijing) Region, and strategically partners for AI and smart agriculture - The company relies on its self-built high-quality, highly customized, highly available, and highly secure data centers to provide users with full lifecycle services, from initial planning and design to later operation and management, along with integrated cloud computing solutions including Amazon Web Services[18] - During the reporting period, nearly a hundred new features or services were launched in the Amazon Web Services China (Beijing) Region operated by the company[18] - Amazon Web Services overseas launched multiple AIGC products, including the generative AI service Amazon Bedrock and the large AI model Titan, indicating that the integration of AI and cloud will significantly impact the growth space and development model of cloud computing[18][37] - Subsidiaries Guanghuan Youyun and Guanghuan Cloud Data continue to provide users with cloud service products and solutions based on Amazon Web Services, while also seeking more diversified development in the emerging intelligent computing power market with their own resources and technological advantages[18] - Wushuang Technology became one of the first ecological partners of Baidu Ernie Bot, attempting to apply Baidu's leading intelligent dialogue technology to one-stop advertising and marketing, integrating business with AI to better help advertisers improve efficiency[19] - The company and its subsidiary Guanghuan Cloud Data Co., Ltd. signed a strategic cooperation framework agreement with Moore Threads Intelligent Technology (Beijing) Co., Ltd. to jointly build a computing power network required for Artificial Intelligence Generated Content (AIGC) applications, connecting upstream and downstream industries[37] - Subsidiary Guanghuan Cloud Data Co., Ltd. signed strategic cooperation agreements with Muxi Integrated Circuit (Shanghai) Co., Ltd. and Dicui Intelligent Technology (Shanghai) Co., Ltd. to strengthen cooperation in smart agriculture, jointly building an ecosystem chain for smart agriculture application scenarios based on fully self-developed general-purpose GPUs[21] Market Expansion and Brand Building Wushuang Technology's operating revenue grew 4% from client marketing demand, while the company upgraded its VI system and intensified brand promotion - In the first quarter, Wushuang Technology experienced increased client marketing demand, with operating revenue growing approximately 4% year-on-year[19] - Wushuang Technology continues to make breakthroughs, leveraging its years of deep cultivation and accumulation in the marketing field, constantly seeking newer and more diversified business growth points while fostering a positive marketing ecosystem[19] - In early 2023, the company upgraded its corporate VI system and LOGO, using this as an opportunity to increase corporate brand promotion and marketing efforts, actively participating in industry and segmented customer market activities to enhance market share and industry influence[36] Green Data Centers and Sustainable Development The company implements green data center operations, optimizing facilities with advanced technologies for industry-leading PUE, and invests in clean energy solutions - The company strictly implements energy conservation and emission reduction management systems, continues to practice the construction and operation of green data centers based on a continuously improving energy-saving management system, and persistently optimizes existing data centers for energy efficiency[22][38] - In energy-saving renovation projects, advanced energy-saving technologies such as high-efficiency evaporative cooling composite air conditioners, composite indirect evaporative condensation technology, variable frequency compression technology, liquid pump technology, heat pipe technology, and intelligent control systems are adopted to achieve efficient energy utilization and full use of natural cold sources[22] - After renovation, the data center's PUE reached an advanced level within the industry[22] - The company continues to increase investment in clean energy applications, promoting the implementation of photovoltaic projects at Taiheqiao Data Center, Fangshan Data Center, and Zhongjin Yunwang Data Center[22] - Water source heat pump technology is utilized to extract waste heat from data center cooling water for heating public areas within the data center park; during winter, cold machines are turned off, and cooling towers are used as a cold source for various data centers, maximizing energy reduction and lowering PUE values[22] - The company consistently adheres to the development direction of data centers towards "high technology, high computing power, high energy efficiency, and high security," continuously exploring and improving data center design, construction, and technical levels, further advancing towards green, digital, networked, and intelligent operations[23] Honors and Industry Position The Changsha Cloud Computing Center received a "Structural Excellence" award, and the company was recognized as a top IDC service provider, ranking fifth in China's IDC Data Center TOP30 - In early 2023, the company's Changsha Cloud Computing Center project received the "Changsha Structural Excellence Project" honor awarded by the Changsha Construction Industry Association[23] - In February 2023, the company was invited to participate in the "17th IDC Industry Annual Ceremony" and was awarded "2022 China IDC Industry Digital Transformation Best Service Provider"[23] - In April 2023, "China IDC Data Center TOP30," jointly researched and selected by Deben Consulting, eNet Research Institute, and Internet Weekly, ranked the company fifth[24] - In March 2023, Wushuang Technology once again won multiple awards, including "Synergy and Win-Win Award," "Industry Breakthrough Award," and "Content Pioneer Award," at the 2023 Baidu Channel Ecosystem Core Agent "Synergy Conference"[40] - As a Titanium Agent for Alibaba Group's Super Huichuan Platform, Wushuang Technology received six major awards during the reporting period, including the Super Huichuan Exquisite Cornerstone Award, Exquisite Breakthrough Award, Titanium License Award, Exquisite Pioneer Award, Excellent Leadership Award, and Excellent Pioneer Award[40] Quarterly Financial Statements This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the current quarter Consolidated Balance Sheet As of March 31, 2023, total assets were RMB 19.44 billion, up 0.66% from year-start, with total liabilities at RMB 6.61 billion and total equity at RMB 12.83 billion | Item | Period-end Balance (RMB) | Year-start Balance (RMB) | | :--- | :--- | :--- | | ASSETS | | | | Cash and Cash Equivalents | 2,286,202,048.78 | 2,258,923,418.12 | | Financial Assets Held for Trading | 1,463,622,906.33 | 1,122,210,616.19 | | Accounts Receivable | 2,288,842,517.00 | 2,259,217,985.33 | | Total Current Assets | 6,994,117,722.03 | 6,661,530,371.04 | | Fixed Assets | 7,454,084,375.17 | 7,589,791,834.03 | | Construction in Progress | 1,590,588,659.41 | 1,379,094,668.75 | | Total Non-current Assets | 12,443,380,020.62 | 12,649,038,345.30 | | TOTAL ASSETS | 19,437,497,742.65 | 19,310,568,716.34 | | LIABILITIES | | | | Short-term Borrowings | 394,780,081.27 | 384,290,081.27 | | Accounts Payable | 1,547,419,993.79 | 1,525,468,777.63 | | Total Current Liabilities | 2,592,302,500.43 | 2,523,260,647.86 | | Long-term Borrowings | 3,360,003,230.69 | 3,399,319,060.16 | | Total Non-current Liabilities | 4,017,911,890.42 | 4,135,867,236.52 | | TOTAL LIABILITIES | 6,610,214,390.85 | 6,659,127,884.38 | | SHAREHOLDERS' EQUITY | | | | Total Equity Attributable to Owners of the Parent Company | 12,279,769,155.91 | 12,105,851,674.49 | | Minority Interests | 547,514,195.89 | 545,589,157.47 | | TOTAL SHAREHOLDERS' EQUITY | 12,827,283,351.80 | 12,651,440,831.96 | Consolidated Income Statement Q1 2023 total operating revenue reached RMB 1.88 billion, up 2.56%, while net profit attributable to the parent company decreased 10.26% to RMB 174 million | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,879,585,916.57 | 1,832,584,598.39 | | Operating Cost | 1,536,347,129.23 | 1,468,831,761.56 | | Selling Expenses | 7,247,990.29 | 6,982,788.43 | | Administrative Expenses | 59,131,727.96 | 56,267,646.57 | | Research and Development Expenses | 62,503,411.20 | 60,170,056.54 | | Financial Expenses | 28,825,946.07 | 24,195,355.59 | | Other Income | 5,975,049.38 | 498,441.24 | | Investment Income | 9,272,825.93 | 3,689,220.88 | | Credit Impairment Losses | 2,602,615.89 | -6,622,101.12 | | Operating Profit | 202,194,685.55 | 213,158,491.60 | | Total Profit | 201,494,346.34 | 213,207,034.24 | | Net Profit | 168,116,376.18 | 179,929,103.87 | | Net Profit Attributable to Owners of the Parent Company | 173,547,294.29 | 193,388,768.70 | | Basic Earnings Per Share | 0.10 | 0.11 | | Diluted Earnings Per Share | 0.10 | 0.11 | Consolidated Cash Flow Statement Q1 2023 operating cash flow surged 178.93% to RMB 460 million, while investing and financing activities resulted in net outflows | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Rendering of Services | 1,918,474,616.31 | 1,580,837,599.98 | | Subtotal of Cash Inflows from Operating Activities | 1,946,898,947.71 | 1,610,856,077.15 | | Cash Paid for Goods and Services | 1,337,878,943.81 | 1,279,808,682.71 | | Cash Paid to and on Behalf of Employees | 81,234,828.37 | 80,058,050.85 | | Subtotal of Cash Outflows from Operating Activities | 1,487,215,716.16 | 1,446,053,631.04 | | NET CASH FLOW FROM OPERATING ACTIVITIES | 459,683,231.55 | 164,802,446.11 | | Cash Received from Disposal of Investments | 1,537,104,715.85 | 2,150,000,000.00 | | Cash Paid for Investments | 1,627,800,000.00 | 1,310,000,000.00 | | NET CASH FLOW FROM INVESTING ACTIVITIES | -305,122,645.36 | 186,830,568.52 | | Cash Received from Borrowings | 62,490,000.00 | 212,798,400.00 | | Cash Paid for Repayment of Debts | 73,268,149.27 | 129,004,324.37 | | Cash Paid for Distribution of Dividends, Profits or Interest Payments | 52,281,950.06 | 29,121,127.45 | | NET CASH FLOW FROM FINANCING ACTIVITIES | -126,975,305.10 | 51,501,910.42 | | NET INCREASE IN CASH AND CASH EQUIVALENTS | 27,278,630.66 | 403,134,925.05 | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,286,202,048.78 | 2,673,014,791.50 | Audit Report The company's first-quarter report is unaudited - The company's first-quarter report is unaudited[57]