Core Viewpoint - In 2024, SuperMap Software Co., Ltd. faced significant operational challenges, with key financial indicators showing substantial declines, particularly a 212.70% year-on-year decrease in net profit and a 583.49% drop in net cash flow from operating activities [1][18]. Revenue and Profit: Decline in Scale and Profitability - The company's operating revenue for 2024 was 1,497,872,642.24 yuan, down 24.30% from 2023's 1,978,685,866.97 yuan, primarily due to a 24.52% decrease in software business revenue [2]. - The decline in revenue was attributed to market environment impacts, delayed customer demand, slower bidding processes, and extended project acceptance periods, with the largest revenue drop occurring in the North China region at 32.28% [2]. Net Profit: Multiple Factors Leading to Sharp Decline - The net profit attributable to shareholders was -171,429,329.14 yuan, compared to 152,110,488.98 yuan in 2023, marking a 212.70% decline [3]. - The significant drop in net profit was influenced by reduced operating revenue, poor cost control, and asset impairment, with asset impairment losses reaching 159,645,564.59 yuan [3]. Earnings Per Share: Consistent Decline with Net Profit Trends - Basic earnings per share were -0.3508 yuan, down 213.45% from 0.3092 yuan in 2023, reflecting a substantial decline in core business profitability [4]. Expense Analysis: Structural Adjustments and Optimization Needed - Total expenses decreased to 827,711,957.41 yuan in 2024 from 863,566,503.36 yuan in 2023, indicating some success in expense management during organizational changes [5]. - Sales expenses were 287,965,184.45 yuan, down 11.85%, primarily due to reduced labor and travel costs, suggesting a strategic adjustment in sales efforts [6]. - Management expenses slightly decreased by 3.91% to 269,759,731.48 yuan, indicating potential for improved operational efficiency [7]. - Financial expenses were -4,431,400.85 yuan, reflecting a decrease in interest income, which may impact overall funding returns [8]. R&D Investment: Continued Focus for Future Development - R&D expenses increased by 4.56% to 274,418,442.33 yuan, demonstrating the company's commitment to innovation despite current profitability challenges [10]. - R&D investment amounted to 381,061,073.21 yuan, representing 25.44% of operating revenue, highlighting the company's focus on technological advancement [11]. - The proportion of R&D personnel increased slightly to 42.64%, although there was a decline in the number of experienced staff, indicating a shift towards a younger workforce [12]. Cash Flow: Deterioration in Operating Cash Flow - The net cash flow from operating activities was -269,033,286.07 yuan, a 583.49% decline from 55,644,310.44 yuan in 2023, primarily due to reduced sales collections [13]. - The net cash flow from investment activities increased significantly to 263,780,099.81 yuan, mainly from redeeming financial products [14]. - The net cash flow from financing activities was -203,483,258.81 yuan, a 1,053.30% decrease, largely due to the absence of employee stock option exercise funds [15]. Overall Assessment - SuperMap Software is under considerable operational pressure in 2024, with deteriorating net profit and cash flow requiring close attention from investors. The company's focus on R&D and organizational changes is positive, but improving profitability and cash flow in the short term will be crucial for future growth [18].