Yangtze River Business Daily NewsYangtze River Business Daily reporter Shen Yourong.
Hang Seng Electronics (600570.), a leading provider of financial technology products and services in ChinaSH) business performance is back on the growth track.
On the evening of January 28, Hang Seng Electronics disclosed that the company expects to achieve a net profit attributable to shareholders of listed companies in 2023 (hereinafter referred to as "net profit") of about 134.5 billion yuan, an increase of 2 over the previous yearAbout 5.4 billion yuan. In 2022, the company's net profit fell by 25% year-on-year45%。
Net profit has changed from a decline to an increase, what does Hang Seng Electronics rely on? The company explained that thanks to the digital transformation and upgrading of the financial industry, the continuous increase in investment in science and technology of financial institutions, the company adjusted its business strategy in a timely manner and achieved the growth of its main business.
Hang Seng Electronics focuses on the financial industry, focusing on capital market business, mainly providing one-stop financial technology solutions for customers, banks, and other customers.
Hang Seng Electronics adheres to the principle of "product first.
First, the business strategy of "customer first" to provide customers with valuable services. The company's core competitiveness lies in the leading technology, and it is roughly estimated that in the past four years, the company's R&D investment will exceed 8 billion yuan.
By the end of 2022, Hang Seng Electronics had invested more than 7,000 R&D personnel, more than half of the company's total number of employees.
Full-year earnings of 134.5 billion turned from a decline to an increase
In the active promotion of digital transformation and upgrading of China's financial institutions, Hang Seng Electronics, which provides services to financial institutions, has gained a piece of the pie and achieved positive growth in operating performance.
On the evening of January 28, Hang Seng Electronics issued a voluntary disclosure announcement for the 2023 annual results forecast. The company expects full-year operating income of approximately 729.2 billion yuan, an increase of about 78.9 billion yuan, a year-on-year increase of 1214% or so. The company expects to achieve a net profit of approximately 134.5 billion yuan, an increase of about 25.4 billion yuan, a year-on-year increase of 23around 27%; It is estimated that the net profit after deducting non-recurring gains and losses (hereinafter referred to as "net profit after deducting non-recurring profits") will be approximately 137.8 billion yuan, compared with the non-net profit deducted in the same period last year, will increase by about 23.3 billion yuan, a year-on-year increase of 20Around 38%.
In the first three quarters of 2023, the company's operating income and net profit were 436.8 billion yuan, 60.7 billion yuan, a year-on-year increase03%。Among them, in the first, second and third quarters, the company's operating income was 113 billion yuan, 169.7 billion yuan, 154.1 billion yuan, a year-on-year increase02%；Net profit was 22.2 billion yuan, 22.4 billion yuan, 16 billion yuan, a year-on-year increase47%。
In the first three quarters, operating income and net profit both maintained rapid growth.
According to the annual data and the third quarterly report data, the company's operating income and net profit in the fourth quarter are expected to be 292.4 billion yuan, 73.8 billion yuan. Compared with the same period last year, the operating income and net profit were 276.5 billion yuan, 10Compared with 8 billion yuan, the change range is 575%、-31.67%。
Judging from the quarterly data alone, the operating income and net profit in the fourth quarter were lower than expected.
The full-year operating performance was outstanding, why was the fourth-quarter performance lower than expected?
Hang Seng Electronics explained that in 2023, thanks to the impact of the digital transformation and upgrading of the financial industry, financial institutions will continue to increase their investment in science and technology, and the company will continue to maintain its leading market position and continue to grow its operating income. However, in the second half of the year, the implementation rate of IT budgets of financial institutions declined, project management became more stringent, and customer procurement project approval, procurement decision-making process and acceptance process were lengthened, which affected the company's revenue growth in the fourth quarter compared with previous years. As for net profit and non-net profit, the company said that on the one hand, the company strengthened investment in core parts and strategic projects, and on the other hand, implemented more refined management of costs and expenses, improved overall operating efficiency, made the revenue growth rate higher than the cost growth rate, improved the quality of growth, and enhanced business resilience.
According to the company's explanation, the main reason for the slowdown in operating income growth in the fourth quarter is not the company itself, but customer factors.
In 2022, the company achieved a net profit of 109.1 billion yuan, down 2545%, mainly due to the decline in income from changes in fair value of financial assets.
Committed to becoming a leader in financial technology
Although the net profit fluctuated, the overall profitability of Hang Seng Electronics was still strong. This is directly related to the company's market position and comprehensive product competitiveness.
Founded in 1997 and listed on the main board of the Shanghai Stock Exchange in 2003, Hang Seng Electronics has maintained a sustained profitability. Among them, from 2019 to 2022, the company's operating income continued to grow, from 387.2 billion yuan to 650.2 billion yuan, and the operating income in 2022 has doubled compared with 2018. During this period, the company's net profit was 141.6 billion yuan, 132.2 billion yuan, 146.4 billion yuan, 109.1 billion yuan, and the annual net profit exceeded 1 billion yuan.
Hang Seng Electronics mainly provides financial technology products and related services for the capital market business of financial institutions. The operation of Hang Seng Electronics is directly related to the development of the capital market, the investment in science and technology of financial institutions, and the development of the financial technology industry. In turn, the development of Hang Seng Electronics can also help the healthy development of the financial industry and capital market.
Judging from the disclosed information, Hang Seng Electronics focuses on capital market business, mainly providing one-stop financial technology solutions for customers such as **, banks, **insurance asset management, trusts, and private equity. According to the type of product or service, the company's business can be divided into eight major sectors: wealth technology services, asset management technology services, operation and institutional technology services, risk and platform technology services, data service business, and innovation business.
Hang Seng Electronics' business strategy is product first.
First, the customer first.
First, the technology is leading. The premise of product first is technology leadership. The company said it is committed to becoming a leader in fintech technology and creating first-class products with leading technology.
Hang Seng Electronics has built a first-class R&D architecture system of Hang Seng Research Institute, technology platform headquarters and business department platform, closely observed, tracked and judged the new trends of cutting-edge technology, and built a mechanism to quickly transform related technologies into products. Hang Seng Electronics has independently developed the financial digital infrastructure and the new generation of information innovation infrastructure LIGHT technology platform to meet the needs of full-product line technology upgrading and full-stack information innovation technology solutions.
Hang Seng Electronics said that the company's R&D expenses and the proportion of R&D personnel are at the industry-leading level. From 2020 to the first three quarters of 2023, the company's R&D investment was 149.6 billion yuan, 213.9 billion yuan, 234.6 billion yuan, 178.4 billion yuan, and the R&D investment in the first three quarters of 2023 increased by 1370%。
If R&D investment for the whole of 2023 increases at this rate, then R&D investment will reach 266.7 billion yuan. From 2020 to 2023, the total R&D investment in the four years will reach 864.8 billion yuan.
As of the end of 2022, the number of R&D personnel in Hang Seng Electronics was 7,016, accounting for 52 of the total number of employees57%。