Yonyou(SH:600588) Zheng Quan Zhi Xing·2025-04-11 07:58Core Viewpoint - Yonyou Network (600588.SH) faces significant challenges in 2024, reporting its largest loss since its IPO, with revenue decline and increased losses attributed to multiple factors including layoffs, goodwill impairment, and investment losses [1][2][5]. Revenue and Profitability - In 2024, Yonyou Network's revenue was 9.153 billion yuan, a year-on-year decline of 6.6%, while the net profit attributable to shareholders was -2.061 billion yuan, representing a 113% increase in losses compared to the previous year [2][3]. - The company's cloud service business, which has become a key revenue driver, contributed over 70% of total revenue in 2024, but its growth has significantly slowed, with revenue figures of 5.32 billion yuan in 2021, 6.353 billion yuan in 2022, 7.091 billion yuan in 2023, and 6.85 billion yuan in 2024, showing a decline of 3.4% year-on-year [2][3]. Customer Segments - All three major customer segments—large enterprises, medium-sized enterprises, and government/public organizations—experienced revenue declines in 2024, with large enterprise revenue at 5.864 billion yuan (down 10%), medium-sized enterprises at 1.251 billion yuan (down 9.7%), and government/public organizations at 907 million yuan (down 7.7%) [3][5]. Cost Structure and Expenses - The company has faced rising costs due to a major organizational restructuring, leading to a 22.7% increase in sales expenses to 2.743 billion yuan and a 20.09% increase in R&D expenses to 2.106 billion yuan in 2023 [5][6]. - In 2024, the company incurred 142 million yuan in severance payments due to layoffs, contributing to a 10.14% increase in management expenses to 1.22 billion yuan [5][6]. Asset Impairment and Investment Losses - Yonyou Network reported a total asset and credit impairment loss of 525 million yuan in 2024, a 123% increase year-on-year, driven by increased impairment losses on long-term equity investments and goodwill [6][7]. - The company also faced increased amortization of intangible assets from R&D investments, amounting to an additional 300 million yuan year-on-year, and investment losses increased by 69.34 million yuan due to declines in the valuation of invested companies [6][7]. Leadership Changes - Amidst poor performance, Yonyou Network's founder Wang Wenjing returned to the front line, taking over as president from Huang Chenhong, who had a brief tenure [8][10]. - The company has experienced four presidential changes in the past five years, reflecting ongoing leadership instability and concerns about finding a suitable successor [10][12].