Revenue Up by 12.2%, Net Profit Rebounded in 2H 2022 with Net Profit Margin Stood at 10.7%
Results Highlights:
- Maintained a good momentum in overall business development with a growth of more than 10% in new orders year-on-year.
- Revenue amounted to RMB7,738 million, a year-on-year increase of 12.2%.
- Revenue from the Three New business* amounted to RMB2,573 million, a year-on-year increase of 64.2%, accounted for 33.3% of total revenue.
- Gross profit amounted to RMB2,939 million, a year-on-year increase of 11.1%.
- Profit for the Year amounted to RMB824 million, a year-on-year increase of 5.4%.
- Net profit margin reached 10.7%, a slight decrease of 0.6 percentage point year-on-year.
- Proposed a final dividend of HK$0.401 per Share with an annual dividend payout ratio of 40%.
Note*: Three New business represents digital intelligence-driven operation, vertical industries and enterprise cloudification, and Operation Support Systems (“OSS”)
HONG KONG SAR – Media OutReach – 7 March 2023 – AsiaInfo Technologies Limited (“AsiaInfo Technologies” or the “Company”, which together with its subsidiaries, is referred to as the “Group”; HKEX stock code: 1675), is pleased to announce its annual results for the year ended 31 December 2022 (the “Year”).
Overall results
In 2022, AsiaInfo Technologies adhered to the strategy of “One consolidation, Three developments”, and achieved a double-digit growth in revenue. Its revenue amounted to RMB7,738 million, increased by 12.2% year-on-year. Among which, revenue from the Three New business maintained a rapid growth and amounted to RMB2,572 million, increased by 64.2% year-on-year. The proportion of the Three New business to revenue reached 33.3%, increased by 10.6 percentage points year-on-year. As the Company strengthened its cost control and efficiency enhancement in the second half of the year, and improved its staff productivity, the gross profit for the year amounted to RMB2,939 million, representing a year-on-year increase of 11.1%, with gross profit margin reaching 38.0%. Net profit rebounded in the second half of the year, and amounted to RMB824 million, representing a year-on-year increase of 5.4%. Net profit margin remained a double-digit figure, reaching 10.7%.
Commenting on the Group’s results performance in 2022, Dr. TIAN Suning, Chairman and Executive Director of the Group, said, “China strives to facilitate the intensive integration of digital technology with the real economy, so as to realise the economic and social development from “volume growth” to “quality development”. AsiaInfo has been propelling the digital-intelligence transformation with technologies like 5G, AI and big data in thousands of industries, creating digital-intelligence value for its customers. In 2022, facing the resurgence of COVID-19 and other complicated situations, the Company overcame tremendous difficulties. Through the measures of increasing online collaborative efforts, expanding the scope of remote delivery project and refining cost control, the Company sustained a good momentum in business development and continued to sustain a double-digit growth in revenue. Meanwhile, the Company’s net profit rebounded significantly in the second half of the year, maintaining its decent profitability.
After taking into full consideration of various factors including Shareholders’ returns, the profitability, cash flow and capital requirement for future development of the Company, the Board has decided to propose the declaration of the final dividend of HK$0.401 per Share for the year at the Annual General Meeting with the annual dividend payout ratio of 40%.
Digital intelligence-driven operation business restructuring initially completed with revenue surpassing RMB1 billion
The publication of the “Twenty Provisions on Data” brings new driving force to accelerate the development of the big data and data operation industry. Leveraging the legal, compliant and rich data sources, the Company developed data-driven operation (DSaaS) products for different industries and business scenarios with its innovative and leading AI technology and increased marketing efforts. In telecommunications industry, DSaaS business benefited from the rapid development of 5G and the high growth in the digital transformation of the government-enterprise industry, the Company maintained its market leading position. Beyond telecommunications industry, the Company further focused on the digitalisation of government and enterprise, digital internet of vehicles (“IoV”) and digital consumption and developed replicable, marketable and operable digital intelligence business and operation services, which are recognised by leading customers including Digital Chongqing and Changan Auto. In 2022, revenue from the digital intelligence-driven operation was RMB1,150 million, increased by 57.6% year-on-year, accounting for 14.9% of the revenue.
Energy, government affairs and transportation and other industries formed in-depth and sustainable models
In 2022, the Company continued to focus on five strategic sectors and had developed in-depth and sustainable growth models in the energy, government affairs and transportation sectors. Moreover, the Company controlled risks stringently and ensured its vertical industries businesses maintained a high growth momentum under sound conditions, with revenues in the energy and transportation industries increased by 308% and 80% year-on-year, respectively, and revenue in the government affairs industry increased by 28% year-on-year.
In the energy industry, the Company has secured a leading edge in 5G private network solutions in the nuclear power, wind power and others. Of which, the Company’s nuclear power projects with CNNC covered four major nuclear power bases, including Changjiang in Hainan Province, Fuqing in Fujian Province, Qinshan in Zhejiang Province and Tianwan in Jiangsu Province, with a total of 21 units in operation. In addition, the Company completed the construction of dozens of smart wind farms for Guohua Investment Energy Co., Ltd. and CGN Power Co., Ltd. In the transportation industry, the Company formulated the matured intelligent highway solutions and provided highway network toll collection management, digital intelligent transportation platform, intelligent marketing and customer operation service solutions for highway operation and management customers in Guangdong, Hunan, Yunnan, Shanxi, Gansu and Qinghai provinces. In the government affairs industry, the big data business had taken shape, with more than 50 projects signed during the year, covering scenarios such as data governance, data operation, data trading and city intelligence hubs. In 2022, the revenue from vertical industries and enterprise cloudification business amounted to RMB757 million, up by 78.2% year-on-year.
Grasping the development trend of OSS and BSS business integration
Against the backdrop of the intensive integration of the digital economy with real economy, the telecommunications industry embraces new opportunities. The Company closely followed and monitored the industry demand and leveraged the development trend of BSS and OSS integration in the 5G era to constantly innovate 5G BSS and OSS products. For the OSS business, the Company’s 5G network intelligent products focused on computing network, network automation, network digital twin and others, enabling the digital-intelligence transformation and innovation in the telecommunication industry, and facilitated the evolution of customers’ network automation to move to a further advanced level. With the deepening advancement of 5G deployment in 2022, the Company’s OSS business expanded rapidly and achieved a revenue of RMB666 million, representing a year-on-year increase of 61.3%. Both its market share and market position were bolstered significantly.
For BSS business, the Company further strengthened its market position and kept on fulfilling new projects and demand with digital intelligent products and solutions, facilitating the digital-intelligence transformation of its customers. The Company assisted operators in digital-intelligence innovation through products such as RPA, digital human, digital twins and databases. The Company powered up various business support systems and modules by creating new billing applications such as intelligent operation and maintenance, intelligent billing and payment health inspection. In terms of digital and intelligent planning, the Company deeply participated in the standardisation and planning of the digital and intelligent cloud native business operation systems of operators. For new customer exploration, the Company provided China Broadcast Network with a basket of business support solutions in the 5G centralised BSS project and facilitated its successful commercialisation of 5G services. In 2022, the revenue from the Company’s BSS business amounted to RMB4,925 million, representing a year-on-year increase of 0.2%.
Seize the opportunity of infotech application innovation
As a key player in the information technology and application innovation initiative, the Company continued to increase investments in R&D in innovative products concerned to accelerate the compatibility process of technology and product localisation. In 2022, the Company established AsiaInfo Anhui Technology to independently operate and manage database product business, achieving breakthroughs in many industries such as telecommunication, government affairs, transportation and healthcare. In addition, in Motainlun ranking, AntDB had been significantly advanced from 34th in January 2022 to 12th in February 2023. The contract value in 2022 was approximately RMB 60 million.
Future Prospect
Talking about the future strategies, Dr. TIAN said, “The Company always adheres to the strategy of ‘One consolidation, Three developments’ and firmly advance towards the goal of ‘achieving a business scale of over RMB10 billion in 2025, half of which comprises of the new business’. We will press ahead the ‘Three New business’ as the core driver to the rapid growth of the overall revenue of the Company. In terms of digital intelligence-driven business, the Company will grasp the opportunities brought by the ‘Twenty Provisions on Data’ policy, promote the replication of DSaaS scenario-based products in scale in digital TMT, digital government and enterprise, digital IoV, digital consumption and other areas. For the OSS business, by focusing on computing network, cloud-network integration and network automation and other areas, the Company will continue to drive OSS market share gain. In the vertical industries and enterprise cloudification, we will further focus on expanding the market in energy, government affairs, transportation and other industries with our proprietary products, striving for improvement in profitability.
“In terms of product R&D, we will advance our technology deployment including 6G OSS/BSS, 6G private network, and computing, communication and perception integration. For the 5G private networks, we will build cloud-based, white-box, open and lightweight 5G base stations and core network equipment based on cloud native, O-RAN and other technologies to empower enterprise digital intelligence transformation. In the digital intelligence sector, for new technologies such as AIGC, we will integrate into the ecology, actively cooperate with leading AI companies. We will well prepare, leveraging our accumulated experience and edges in the telecom industry, and strive to become the first batch of product and solution providers featuring AIGC in the industry.”Hashtag: #asiainfo
The issuer is solely responsible for the content of this announcement.
About AsiaInfo Technologies
AsiaInfo Technologies Limited (“AsiaInfo” or “the Company”; Stock code: 01675. HK), founded in 1993, is a leading software product, solution and service provider, as well as a leading provider of full-stack digital and intelligent capabilities. Capitalising on consulting and planning, product R&D, implementation and delivery, system integration, decision intelligence, data operation, customer service and other digital and intelligent core capabilities, AsiaInfo provides enterprise customers in industries such as telecommunications, government affairs, energy, transportation, cable and postal services with end-to-end close loop digital and intelligent transformation service.
AsiaInfo adheres to the strategy of “One consolidation, Three development”, maintains BSS market leadership with high quality and develops new businesses such as 5G OSS network intelligentisation, digital intelligence-driven operation, vertical industries and enterprise cloudification. The Company actively embraces advanced technologies such as 5G, cloud computing, big data, AI, and Internet of Things, forming three major product systems: cloud network, digital intelligence and IT.
