Core Viewpoint - Baosight Software (600845) has seen a price increase of 5.76% this week, closing at 25.9 yuan on July 25, 2025, with a total market capitalization of 74.691 billion yuan, ranking 1st in the IT services sector and 202nd in the A-share market [1]. Company Announcements - The 31st meeting of the 10th Board of Directors and the 31st meeting of the 10th Supervisory Board of Baosight Software were held on July 21, 2025, where Mr. Tian Guobing was elected as the Chairman of the Board and the Director of the Strategic Committee [1]. - The first extraordinary general meeting of shareholders in 2025 was held on July 21, 2025, with 1,015 shareholders participating, representing 54.9768% of the total shares. Mr. Tian Guobing was elected as a non-independent director with 99.7625% of the votes [2][3].

Core Viewpoint - Beyondsoft Technology, while not a star company in China's tech industry, has grown from a small firm to a global IT service provider with over 30,000 employees since its establishment in 1995, paralleling the rise of the Chinese internet [1] Development History - The history of Beyondsoft reflects the evolution of China's IT service industry from learning and imitation to exporting experience [2] - The company's globalization journey began in 2002 when co-founder Zhang Rongjun was sent to the U.S. with a mere $20,000 to explore the market [2][3] Company Name and Philosophy - The name "博彦" symbolizes a gathering of talent, while "Beyondsoft" reflects the ambition to excel in software [4] - The early decision to focus on IT services over multimedia software was crucial for avoiding cash flow risks and establishing a core business model [5] Early Challenges and Successes - Beyondsoft faced significant challenges, including project management and client expectations, which were overcome through dedication and teamwork [6][7] - The first major client, Fisher-Price, was acquired through participation in a trade show, showcasing the company's commitment and technical expertise [8][9] Talent Acquisition and Development - The company recognized the critical need for talent and invested heavily in recruitment, attracting 45 graduates through a large-scale campus recruitment campaign in 2001 [10][11] - Beyondsoft developed a systematic talent cultivation model that was later expanded internationally, creating a diverse workforce capable of engaging with global clients [12] Globalization and Cultural Management - The company adopted a hybrid operational model to manage cross-cultural differences, leveraging the strengths of both Chinese and American employees [13] - Beyondsoft's experience in international markets has equipped it with unique capabilities to support other Chinese companies in their globalization efforts [12][13] Future Directions - Beyondsoft is transitioning from being a learner of global rules to a participant in defining new ones, emphasizing the need for a flexible organizational structure [15][16] - The company is investing in innovation hubs globally to foster collaboration among high-caliber talent, focusing on maximizing the value of skilled personnel [16] Conclusion - Beyondsoft's journey illustrates the importance of ambition and adaptability in navigating the complexities of globalization, providing a reference for other Chinese enterprises [18]

Core Viewpoint - The results of the Japanese House of Councillors election are expected to have a limited impact on the domestic stock market, according to Morgan Stanley's global market strategy team [1] Group 1: Market Impact - Concerns regarding fiscal expansion and delays in the US-Japan tariff agreement exist, but the stock market remains stable due to corporate reforms and capital inflows [1] - The overall market is supported by domestic demand stocks, particularly in sectors such as IT services, telecommunications, retail, food, and banking [1] Group 2: Political Landscape - There is uncertainty regarding the extent to which the ruling coalition will adopt the policy proposals of opposition parties in the long term, given the unclear political situation [1]

美国IT公司Astronomer首席执行官（CEO）安迪·拜伦在"酷玩乐队"演唱会上被拍到与公司人力资源 （HR）总监克里斯汀·卡伯特亲密搂抱后，已宣布辞职。 据美联社19日报道，Astronomer公司19日在领英上发布声明称，安迪·拜伦已经辞去了公司CEO的职 务，"Astronomer的管理层应在行为和责任心上树立标准，忠于公司自成立以来的价值观和文化。而近期 这一标准并未达到"。该声明发布一天前，Astronomer公司已宣布对这一事件展开正式调查，并对涉事二 人停职处理。目前该公司已任命其联合创始人兼产品主管彼得·德乔伊为临时CEO，同时开始寻找拜伦的 继任者。 美国Axios新闻网称，目前尚不清楚卡伯特是否会被解雇。她目前正在行政休假，等待正式调查结果。 来源：环球时报 责编：刘珺宇 校对：赵燕 美联储，降息大消息！ 刚刚！中美，大消息！ 特朗普被确诊患病 违法和不良信息举报电话：0755-83514034 邮箱：bwb@stcn.com 百万用户都在看 集体拉升！特朗普，突传重磅！ A股重磅！证监会，同意！ ...

Core Viewpoint - India's rapid diplomatic response to Trump's threat of a 10% tariff on BRICS countries highlights its economic dependency on the U.S. and raises questions about its reliability as a partner in international coalitions [1][3][6] Economic Dependency - India has a trade surplus with the U.S. amounting to $45.7 billion, with its IT services exports constituting 37% of the global market, heavily reliant on the U.S. market [3] - The potential impact of U.S. sanctions could severely affect India's IT services market, valued at approximately $35 billion [3] Diplomatic Reactions - India's swift clarification of its stance, stating it does not intend to challenge the dollar's dominance, contrasts sharply with its previous support for currency diversification among BRICS nations [1][6] - The urgency of India's diplomatic efforts, including sending its foreign minister to China, reflects a significant shift in its foreign policy approach [1][6] International Relations - India's actions have led to disappointment among other BRICS members, undermining the organization's unity and raising doubts about India's status as a reliable partner [6][11] - The perception of India as a "spoiler" within BRICS is growing, potentially isolating it in future multilateral negotiations [11][15] Strategic Shortcomings - India's recent behavior indicates a lack of strategic foresight, as it struggles to navigate the emerging multipolar world while maintaining its economic ties with the U.S. [13][20] - The increasing isolation of India within BRICS is evidenced by its high opposition rate of 31% in decision-making processes, significantly higher than other member states [15] Historical Context - The current situation reflects a broader trend of declining U.S. dollar dominance, with a quarter of countries reducing their dollar reserves, indicating a shift in global economic dynamics [17][20] - India's reluctance to take on responsibilities in the evolving international order may lead to its marginalization in future geopolitical developments [19][20]

Financial Data and Key Metrics Changes - IT Services revenue for Q1 was $2.59 billion, reflecting a quarter-on-quarter decline of 2% in constant currency terms, which is within the guidance range [8][21] - IT Services margin was 17.3%, an expansion of 80 basis points year-on-year [8][22] - Net income grew by 10.9% year-on-year, with EPS at INR 3.20, reflecting a 10.8% year-on-year increase [25][26] - Free cash flow generation was robust at 115% of net income, with gross cash including investments at $6.4 billion [26][27] Business Line Data and Key Metrics Changes - In the Americas, revenue grew 1.5% year-on-year in constant currency terms, while APMEA's revenue remained flat [9][23] - BFSI sector declined 3.8% sequentially and 3.5% year-on-year, while Healthcare grew 0.5% sequentially and 3.5% year-on-year [24] - Capco grew 6% year-on-year, driven by strong performance in Latin America [9][24] Market Data and Key Metrics Changes - Europe faced headwinds with a sequential decline of 6.4% and a year-on-year decline of 11.6% [23] - Digital spending in India, the Middle East, and Southeast Asia kept the market resilient [9] Company Strategy and Development Direction - The company is focusing on AI-led efficiency and transformation, with a strategic shift towards consulting-led and AI-powered solutions [16][47] - The management emphasized the importance of vendor consolidation and cost takeout deals, which are expected to drive future growth [12][22] - The company aims to maintain a balance between renewing existing contracts and securing new business [13][111] Management's Comments on Operating Environment and Future Outlook - Management noted significant macro uncertainty affecting overall demand, with clients prioritizing cost optimization and AI initiatives [6][7] - The outlook for the second half of the year is positive, supported by a strong order book and healthy pipeline [19][56] - The company is guiding for a sequential revenue growth of -1% to +1% in constant currency terms for the next quarter [19][28] Other Important Information - The Board declared an interim dividend of INR 5 per share, with a commitment to pay dividends twice a year [27][28] - The company reported bookings worth $5 billion in total contract value, a growth of 51% year-on-year, with large deal bookings reaching $2.7 billion, up 131% year-on-year [12][22] Q&A Session Summary Question: On deal wins and ACV growth - Management acknowledged that while TCV has grown, ACV growth has not kept pace due to longer deal tenures and a focus on cost takeout [31][32] Question: On capital allocation and dividend policy - The company has moved towards a dividend-focused capital allocation policy, with buybacks remaining an option for the future [34] Question: On margins and deal execution - Management indicated that while current margins are strong, there may be pressures due to upfront investments in large deals, but they aim to maintain margins in the 17% to 17.5% range [40][52] Question: On customer-specific challenges in Europe - Management stated that client-specific challenges in Europe are largely behind them, and they expect stabilization and growth in the second half of the financial year [99][100] Question: On discretionary spending trends - Management noted that discretionary spending is returning in pockets, particularly around data, AI, and modernization projects [113]

Financial Data and Key Metrics Changes - IT Services revenue for Q1 FY 2026 was $2,590 million, reflecting a quarter-on-quarter decline of 2% in constant currency terms, which is within the guidance range [8][21] - IT Services margin was 17.3%, an expansion of 80 basis points year-on-year [8][22] - Net income grew by 10.9% year-on-year, with EPS at INR 3,200, reflecting a 10.8% year-on-year increase [25][26] - Free cash flow generation was robust at 115% of net income, with gross cash reaching $6,400 million [26] Business Line Data and Key Metrics Changes - In the Americas, revenue grew 1.5% year-on-year in constant currency terms, while APMEA's revenue remained flat [9][23] - BFSI sector declined 3.8% sequentially and 3.5% year-on-year, while Healthcare grew 0.5% sequentially and 3.5% year-on-year [24] - Capco grew 6% year-on-year, driven by strong performance in Latin America [9][24] Market Data and Key Metrics Changes - Europe faced a decline of 6.4% sequentially and 11.6% year-on-year, with clients focused on maintaining competitiveness [23][24] - Digital spending in India, the Middle East, and Southeast Asia kept the market resilient [9] Company Strategy and Development Direction - The company is focusing on AI-led efficiency and transformation, with a strategic shift towards consulting-led and AI-powered solutions [17][48] - The company aims to build an AI-first enterprise, integrating AI capabilities into industry solutions [17][18] - The outlook for the next quarter is cautious, with guidance for sequential growth of -1% to +1% in constant currency terms [19][28] Management's Comments on Operating Environment and Future Outlook - Management noted significant macro uncertainty affecting overall demand, with clients prioritizing cost optimization and vendor consolidation [6][7] - The company expressed confidence in the second half of the year due to a strong order book and healthy pipeline [19][57] Other Important Information - The Board declared an interim dividend of INR 5 per share, with a commitment to pay dividends twice a year [27][28] - The company reported bookings worth $5 billion in total contract value, a growth of 51% year-on-year, with large deal bookings reaching $2.7 billion, up 131% year-on-year [13][14] Q&A Session Summary Question: On deal wins and ACV growth - Management acknowledged that TCV has been growing faster than ACV due to a mix of longer-tenure deals and vendor consolidation [32][33] Question: On capital allocation and dividend policy - The company has moved towards a dividend-focused capital allocation policy, with buybacks remaining an option [35] Question: On margins and deal execution - Management indicated that while current margins are strong, there may be pressures due to upfront investments in large deals [39][40] Question: On deal wins in traditionally weak areas - The company has invested in domain expertise and focused on consulting-led strategies to win deals in new sectors [48][49] Question: On discretionary spending and project pauses - Certain projects remain paused due to ongoing evaluations of tariffs and geopolitical factors, but management is hopeful for future investments [52] Question: On client metrics and active clients - The decline in active clients is attributed to a weak discretionary spend environment, but the company continues to focus on large accounts [98] Question: On competitive pressures and pricing - Management acknowledged competitive pricing pressures in the current environment but emphasized the importance of execution [119]

Summary of Conference Call Notes Industry or Company Involved - The discussion primarily revolves around the public fund reform and its impact on the market, as well as the performance of listed companies in various sectors. Core Points and Arguments 1. **Order Recovery and Sustainability** The recovery of orders in certain sectors is expected to be sustainable, which is a key point of discussion [1] 2. **Profit Fluctuations** The net profit growth rate for listed companies has seen significant volatility, with a year-on-year decline of approximately 13-14% in Q4, returning to levels seen in 2015-2016, excluding the pandemic [1][2] 3. **Quarterly Performance Discrepancies** Q4 of 2024 showed a drastic decline of 70% in quarter-on-quarter growth, attributed to various asset impairments and provisions. In contrast, Q1 typically shows a recovery, with historical averages around 100%, but this time it reached approximately 250% [2] 4. **Challenges in Profit Guidance** Due to uncertainties in hedging policies and external factors, making linear projections regarding profit is challenging. The focus should shift to actual order conditions [3] 5. **Order Indicators** The analysis suggests using pre-sale accounts and contract liabilities as indicators of order strength, especially since the recording of pre-sale accounts has shifted to contract liabilities since 2017 [3] 6. **Leverage Trends** After a period of deleveraging, there was a slight increase in leverage in Q1 of this year, indicating a potential shift in financial strategies [4] 7. **Cash Flow Improvement** The operating cash flow as a percentage of revenue was positive in Q1, indicating a relatively healthy cash flow situation, with improvements noted in pre-receivable and contract liabilities [5][6] 8. **Sector-Specific Order Trends** Certain sectors, including chemicals, electronics, and power equipment, are experiencing faster order growth, while others are lagging. The differentiation among sectors is significant, making it difficult to generalize trends [11] 9. **Focus on Export-Related Orders** Orders related to exports, particularly in motorcycles and wind power, are showing improvement, with a notable correlation between order growth and stock price performance [14][15] 10. **Public Fund Reform Impact** The new public fund reform may lead to significant reallocations in investment strategies, with concerns about how funds will adjust their portfolios based on benchmark indices [22][24] 11. **Market Dynamics and Fund Flows** The market is currently balanced among major institutional investors, with concerns that public funds may lead to a one-time adjustment in market styles without creating new capital inflows [27][28] 12. **Long-Term Sector Performance** The long-term performance of sectors will likely depend on their fundamental and industrial trends rather than short-term fund reallocations [28] Other Important but Possibly Overlooked Content - The discussion highlights the importance of understanding the underlying order trends and their sustainability, as well as the potential impact of macroeconomic factors on profit and cash flow [7][10][20] - The need for detailed analysis at the secondary industry level to better understand order conditions and their implications for stock performance [11][12] - The potential for significant market reactions based on public fund strategies, emphasizing the need for careful monitoring of fund flows and sector performance [26][29]

Market Overview - On July 15, the Shanghai Composite Index fell by 0.42%, while the Shenzhen Component rose by 0.56% and the ChiNext Index increased by 1.73%[3] - The total trading volume in both markets exceeded 1.61 trillion yuan, showing a week-on-week increase[1] Investment Strategy - The current market is in the early stage of a rally, characterized by slow rises and sharp declines, with a focus on weight stocks to attract investors[1] - Investors are advised to switch to dividend stocks or hold quality stocks during corrections, avoiding arbitrary adjustments to their portfolios[2] Fund Flow - On July 15, the Shanghai Stock Exchange saw a net outflow of 13.505 billion yuan, while the Shenzhen Stock Exchange experienced a net inflow of 18.733 billion yuan[4] Economic Data - China's GDP for the first half of 2025 grew by 5.3% year-on-year, with industrial added value increasing by 6.4%[5] - Fixed asset investment rose by 2.8% year-on-year, totaling 248.654 billion yuan, while retail sales increased by 5.0% to 245.458 billion yuan[5] Price Trends - The National Bureau of Statistics predicts a moderate recovery in prices in the second half of the year, supported by stable economic growth and effective demand expansion policies[8] Industry Developments - The 11th batch of national drug procurement is expected to start soon, with preparations underway[9] - Inner Mongolia is focusing on developing hydrogen energy equipment manufacturing in key cities[10] ETF Market - The ETF market has seen a surge in new issuances this year, with the number of newly established ETFs and their fundraising exceeding the total for the entire year of 2024[12]

Group 1 - Company expects a net loss of 47 million to 67 million yuan for the first half of 2025, with a non-recurring net profit loss of 70 million to 90 million yuan [1] - Main reason for the loss is the seasonal nature of revenue, with project bidding and contract signing concentrated in the first half, while acceptance and payment occur mainly in the second half [1] - The actual controller of the company, Guo Huaqiang, completed a share reduction plan just three days before the profit warning, selling 1.27 million shares for 25.55 million yuan, reducing his holding to 2.23% [1] Group 2 - Company has faced intensified competition in the financial technology sector, with new entrants including internet giants and strong financial institutions establishing fintech subsidiaries [2] - In 2024, the company's total revenue and net profit declined by 7.58% and 43.28% year-on-year, respectively [2] - The company's sales gross margin fell to 26.13% in 2024, a decrease of 3.15 percentage points from the previous year, marking a 20-year low [2] - In Q1 2025, the company's gross margin further declined to 9.75%, ranking 9th from the bottom in the entire IT services industry [2] - The company's operating cash flow showed a significant decline, with a net cash flow of -26.8 million yuan in Q1 2025, also a 20-year low [2]