I2SOFT(BJ:830799)2024-04-19 11:14Corporate Developments - In February 2023, the company became one of the first stocks to be traded on the Beijing Stock Exchange's market-making system[4]. - The company was selected as a key ecological partner for Baidu's Wenxin Yiyan in March 2023[5]. - In March 2023, the company achieved TMMi Level 3 certification for its software testing maturity model[5]. - The company officially joined the openGauss community in March 2023, enhancing its technological collaboration[5]. - In April 2023, the company won its first project bid with the Agricultural Bank of China, contributing to its digital transformation efforts[5]. - Starting from May 2023, the company optimized its strategic layout by establishing branches in multiple cities including Shenzhen, Hefei, and Changsha[5]. - The company became a member of the Star Alliance in December 2023, indicating its commitment to industry collaboration[5]. Financial Performance - The company's operating revenue for 2023 was CNY 606,430,207.68, a slight increase of 0.07% compared to CNY 606,034,197.19 in 2022[27]. - The net profit attributable to shareholders for 2023 reached CNY 70,459,817.08, representing a significant growth of 36.77% from CNY 51,517,247.43 in 2022[27]. - The total assets increased by 29.82% to CNY 928,321,534.22 in 2023, up from CNY 715,085,144.28 in 2022[28]. - The total liabilities rose by 49.42% to CNY 533,083,088.02 in 2023, compared to CNY 356,762,096.50 in 2022[28]. - The weighted average return on equity (ROE) based on net profit attributable to shareholders was 19.08% in 2023, up from 14.92% in 2022[27]. - The net cash flow from operating activities for 2023 was CNY 79,996,770.61, a substantial increase of 122.49% from CNY 35,954,778.13 in 2022[28]. - The basic earnings per share for 2023 was CNY 0.34, reflecting a growth of 36.00% compared to CNY 0.25 in 2022[27]. - The company's total non-recurring gains and losses amounted to CNY 9,482,585.75 in 2023, compared to CNY 7,786,325.11 in 2022[35]. - The company's asset-liability ratio (consolidated) was 57.42% at the end of 2023, compared to 49.89% at the end of 2022[28]. - The company reported a 45.56% increase in net profit for 2023 compared to the previous year, with net profit growth rates of 4.14% in 2022 and 4.95% in 2021[30]. Client and Market Engagement - The company has served 15 out of the 20 systemically important banks in China, including major clients like Industrial and Commercial Bank of China and Agricultural Bank of China[42]. - The company has added new clients such as Agricultural Bank of China and Bank of China Consumer Finance during the reporting period[49]. - The company aims to expand its coverage of large financial institutions, having already covered 22 out of 33 banks with assets exceeding ¥1 trillion[49]. - The company has maintained stable and increasing cooperation with existing clients, ensuring a solid foundation for sustainable business growth[49]. Technological Advancements - The company holds 23 software technology invention patents and has 14 more pending, enhancing its competitive edge in software products[43]. - The company is focusing on digital transformation solutions, leveraging advanced technologies like artificial intelligence and big data[41]. - The company has integrated five self-developed products into the Huawei Kunpeng ecosystem, successfully passing compatibility tests, which enhances its service offerings in the financial technology sector[51]. - The company is actively exploring practical applications of large language model technology in commercial banking[48]. - The company is focusing on artificial intelligence, developing products like "Digital Financial Assistant" and "Digital Financial Steward," and has become a partner with Baidu for AI solutions[52]. Research and Development - The company has achieved various certifications, including CMMI5 and ISO9001, which bolster its credibility in the market[43]. - The company has trained 893 personnel in HarmonyOS development certification, supporting the demand for large-scale HarmonyOS-based electronic channel construction for banking clients[51]. - The company is enhancing its talent structure and technical capabilities, focusing on twelve core technologies including virtual reality and artificial intelligence[52]. - The company has completed several R&D projects aimed at upgrading product technology and enhancing user experience, which are expected to positively impact future business operations[108]. Financial Technology Trends - The software industry in China is projected to grow, with software business revenue expected to reach 12.33 trillion yuan in 2023, a year-on-year increase of 13.4%[56]. - The IT investment in China's banking sector is expected to reach 593.6 billion yuan by 2025, reflecting a growth of 93.5% from 2022[58]. - The application of artificial intelligence, cloud computing, big data, and blockchain technologies is becoming increasingly widespread in the Chinese banking sector[60]. - The financial technology investment trend in 2023 shows a continuous growth focus on digital transformation and risk management[65]. Governance and Shareholder Information - The company has a total of 92,429,161 restricted shares and 62,208,935 unrestricted shares held by the top ten shareholders[182]. - The largest shareholder, Wu Zhen, holds 24.42% of the company's shares, while Zhang Yan holds 15.87% directly and controls an additional 10.00% through Qianwen Enterprise, totaling 50.29% combined[184]. - The company has established a complete decision-making process and mechanism for profit distribution, ensuring the protection of minority shareholders' rights[198]. - The company held its annual general meeting on May 19, 2023, to approve the profit distribution proposal[196]. Risk Management - The company recognizes the risks associated with high dependency on major clients, particularly the potential impact of contract renewals with key partners like Industrial and Commercial Bank of China[140]. - The company has not reported any significant changes in major risks during the reporting period, maintaining a stable risk profile[142]. - There is a risk that revenue growth may not align with profit growth due to increasing operational scale and regulatory changes in the banking sector, which could impact demand for the company's products and services[141]. Future Outlook - The company plans to enhance product development in 2024, focusing on "virtual reality" and "artificial intelligence" technologies, and aims to promote the application of "digital financial assistants" and "digital financial managers" products[130]. - The company is committed to supporting the digital transformation of financial institutions by leveraging its strengths in financial innovation and technology development[130]. - The company aims to build a comprehensive digital operation service system, integrating consulting, design, development, and operation[135].