NORTHKING TECH(SZ:002987)2022-11-23 07:01Group 1: Company Overview and Financial Performance - The company is a financial IT service provider, focusing on technology-driven services for financial institutions, including software products, solutions, and business process outsourcing [1][2]. - In the first three quarters of 2020, the company achieved revenue of CNY 1.584 billion, a year-on-year increase of 33.88%, and a net profit of CNY 184 million, up 55.57% [2]. - The IT service segment saw a revenue increase of 63.33% in Q3 2020, contributing 51.80% to the total revenue [2]. Group 2: Client Base and Market Expansion - The company has expanded its client base, adding 62 new corporate clients, totaling 245 active corporate clients by the end of Q3 2020 [2]. - The company aims to strengthen partnerships with state-owned and joint-stock commercial banks while also targeting small and medium-sized banks and non-financial institutions [2][3]. Group 3: Future Growth and R&D Investment - The company plans to increase R&D investment in areas such as big data, cloud computing, artificial intelligence, blockchain, and 5G applications [2][3]. - R&D expenses from 2017 to 2019 were CNY 50.47 million, CNY 78.39 million, and CNY 123.88 million, representing 5.00%, 6.39%, and 7.34% of revenue, respectively [5]. Group 4: Industry Trends and Service Demand - The IT service market is expected to grow significantly, with over 80% of the banking IT solutions market shifting towards IT services [3]. - The demand for IT services is anticipated to rise as financial institutions increase their investments in digital transformation and technology [3].