Bingo Software (SH:688227) Zheng Quan Zhi Xing·2025-06-23 17:09Core Viewpoint - The company received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, highlighting significant declines in revenue and profit margins, prompting a detailed analysis of its financial performance and operational challenges [1][14]. Financial Performance - The company reported a revenue of 520 million yuan in 2024, a decrease of 71.88 million yuan or 218.09% year-on-year [1]. - The net profit attributable to shareholders over the past three years was 47.11 million yuan, -10.68 million yuan, and -64.06 million yuan respectively, indicating a downward trend [1]. - The gross profit margin for the company has been declining, with the latest figures showing a gross margin of 35.35%, down 2.83 percentage points from the previous year [2][10]. Revenue Breakdown by Business Segment - Cloud Computing Business: - Revenue was 414.63 million yuan, accounting for 79.74% of total revenue, with a gross margin of 35.36%, down 6.33 percentage points [3][5]. - The sales of cloud products generated 48.01 million yuan, with a gross margin of 44.12%, a decrease of 16.65 percentage points [4][5]. - Cloud Solutions: - Revenue reached 263.75 million yuan, representing 50.72% of total revenue, with a gross margin of 26.19%, down 7.07 percentage points [3][6]. - Cloud Leasing: - Revenue was 102.88 million yuan, accounting for 19.78% of total revenue, with a gross margin of 54.76%, an increase of 1.33 percentage points [3][7]. - Industry Informationization: - Revenue was 105.37 million yuan, representing 20.26% of total revenue, with a gross margin of 35.31%, an increase of 8.29 percentage points [3][7]. Reasons for Margin Decline - The decline in gross margins is attributed to increased competition leading to lower product prices and rising costs associated with customized development for clients [5][11]. - The cloud solutions segment faced higher costs due to a greater proportion of low-margin system integration projects and increased procurement costs for third-party services [6][11]. - The company has adopted a flexible pricing strategy in response to market conditions, which has contributed to the observed margin decline [9][11]. Accounts Receivable Situation - As of the end of 2024, accounts receivable amounted to 619.36 million yuan, a 17.72% increase year-on-year, representing 119.11% of total revenue [14][18]. - The aging of accounts receivable has increased, with over 1 year of aging accounting for 497.73 million yuan, a 42.77% increase [14][20]. - The majority of accounts receivable are from large state-owned enterprises, which have a relatively stable payment capacity despite longer payment cycles due to government funding delays [17][19].