DHCC(002065)2024-11-18 08:17Group 1: Business Overview - Donghua Software focuses on core technology research and application in fields such as 5G/6G, blockchain, big data, AI, IoT, and cloud computing, aiming to create market and social value through continuous innovation [3]. - In 2023, the company achieved a revenue of CNY 11.524 billion, with a net profit of CNY 438 million, representing a year-on-year growth of 9.68% [3]. - For the first three quarters of 2024, the company reported a revenue of CNY 8.186 billion, a 10.13% increase year-on-year, with a net profit of CNY 200 million in Q3, up 106.53% [3]. Group 2: Research and Development - The company has maintained stable cash flow and has not pledged shares since its listing, with R&D investments of CNY 1.128 billion, CNY 1.149 billion, and CNY 1.113 billion over the past three years [3]. - Donghua Software has developed various AI models in healthcare, finance, smart cities, and water conservancy, including fully autonomous models and collaborative models with other companies [4]. Group 3: Strategic Partnerships - The company signed a cooperation framework agreement with Moore Threads in September 2024 to enhance technological innovation capabilities in the Ningbo region [4]. - Donghua Software is actively involved in expanding its international presence, having undertaken projects in Macau and Ethiopia, while focusing primarily on domestic operations [6]. Group 4: Market Position and Competition - Over 60% of the company's business is concentrated in North China, with efforts to expand in East and South China, particularly in the Yangtze River Delta and Pearl River Delta regions [7]. - The company leverages its extensive client base and technological innovation to maintain a competitive edge in the market, emphasizing the importance of technology as a moat for the business [7].