Chinese software, soft .

Mondo Gastronomy Updated on 2024-02-01

Are you the prefix "? China's software, the leading domestic software, has fallen by more than 27% since 2024. Behind the sharp drop in stock prices is the net loss of 2-400 million yuan attributable to the parent company of China Software in 2023.

textZhou Hanming.

In the prefix", some of them can't bear it.

The Digital Intelligence Research Society found that the share price of China Software, the "domestic software leader", has fallen by at least 27% in 2024. In this regard, the investor community has commented, "Are you the first word".

Behind the sharp drop in stock prices, the performance of Chinese software is also unbearable. On January 23, China Software disclosed the announcement of the pre-loss of 2023 annual results. The data shows that China Software's net profit attributable to the parent company in 2023 will be 2-400 million yuan, deducting a non-net loss of 48-5.700 million yuan.

As a leading domestic software, Digital Intelligence Research Society found that since it landed in the capital market in 2002, China's software has maintained a profitable state. Until 2022, "the gears of the loss began to turn". In 2022, China's software net profit attributable to its parent company will reach 4,533240,000 yuan, a net loss of 3774 after deducting non-profit210,000 yuan.

Judging from the disclosure of the annual report of the pre-loss in 2023, the loss of Chinese software has further expanded.

According to public information, China Software was established in 1994 and is the northern software base among the three major software bases approved by the former State Planning Commission, and is also a core member of China Electronics. At present, the controlling shareholder is China Electronics Information Industry Group, and the actual controller is the State-owned Assets Supervision and Administration Commission, a proper "national team".

After years of development, China Software has formed three major business segments: independent software products, service-oriented business and industry solutions. Among them, the industry solution business includes network information business and digital business; Service-oriented business includes tax and financial supervision business; Independent software products include basic software products, system software platform products, software and hardware integration products and data security products. Taking the 2022 annual report as an example, these three major businesses account for % and 60% of revenue respectively.

It's clear that industry solutions are the largest business component of Chinese software. In 96Of the total revenue of 400 million yuan, industry solutions contributed 579.1 billion yuan. Although it is a pity to have a year-on-year decrease of 10%, what is even worse is that the average gross profit margin is less than 10%, far lower than 334% period expense rate. The Digital Intelligence Research Society learned that the industry solutions are mainly for customers such as ministries and commissions, central enterprises, state-owned enterprises and local governments.

In the 2023 annual report of the pre-loss, China Software also mentioned the reasons for the loss, namely, the impact of the network information market caused the amount of new contracts to be lower than expected, which lowered the profit contribution; Increase investment in major projects such as tax business, and provide for losses on impaired equity investments. The pre-loss of the 2023 performance is closely related to the network information business in the industry solution.

The total revenue proportion of service-oriented business segments and independent software products is not as large as the proportion of industry solutions. But for Chinese software, these two businesses are still indispensable and even very important.

On a case-by-case basis, independent software products will achieve revenue of 159.6 billion yuan, although the average gross profit margin is still as high as 712%, but also down 205%。Independent software products can be said to be the "base" business, which mainly includes the development of operating systems, the development of low-quality platforms and special railway products represented by digital dispatching systems.

The core of this segment of the business is Kylin Software. Kylin Software was formed in December 2019 through the merger of China Electronics Subsidiary Zhongbiao Software and China Software Subsidiary Tianjin Kylin. After the merger, Kylin Software has three major domestic operating system brands: Galaxy Kylin, Winning Bid Kylin and Starlight Kylin.

As of the third quarter of 2023, Kylinsoft's net profit increased by 153% year-on-year, and the future looks very bright. It is worth noting that the pre-loss for the whole year of 2023 does not seem to have much to do with the independent software product business for the time being.

The service-oriented business achieved revenue of 222.4 billion yuan, although a slight year-on-year decrease, but still maintained a high gross profit. The average gross margin was 585%, an increase of 012%。In the past 2023, the tax project in the service business has increased investment, which catalyzed the year-end loss.

It is worth mentioning that in the 20 years before the loss in 2022, the revenue of China Software increased by more than 50 times, with a compound annual growth rate of more than 20%. This achievement is placed in the entire A-shares, and it is also an explosive existence. Looking ahead, the 14th Five-Year Plan proposes that the "scale of the software and information technology service industry" will be increased from 816 trillion yuan to 14 trillion yuan in 2025, and the future is still very bright.

This article is originally produced by the Digital Intelligence Research Society, without permission, please do not use any channels and platforms. Violators will be prosecuted.

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