Interim Results - asiainfo.irasia.com · • The final dividend for 2019 was distributed according...
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Interim Results August 2020
Transcript of Interim Results - asiainfo.irasia.com · • The final dividend for 2019 was distributed according...
Interim ResultsAugust 2020
Overview and Prospects
Financial Performance
Operation Performance
PRINCIPAL OPERATIONS HIGHLIGHTS
3*Emerging Businesses: Operation Support Systems(OSS)、Data-Driven Operation (DSaaS)、Vertical Industries and Enterprise Cloudification#For details of adjusted items, please refer to Appendix 3
• The Company has been selected as a constituent of each of Hang Seng Composite Index, Hang Seng Stock Connect Hong Kong Index and Hang Seng Internet & Information Technology Index, etc., change of which will take effect on 7 September 2020.
• The final dividend for 2019 was distributed according to the dividend payout ratio of 40% of net profit in the financial report for the period, and maintained the dividend payout guideline of not less than 40% of net profit in the financial report in 2020
+90.7%
Revenue from data-driven operation
55106
Relatively stable growth in operation revenue, robust growth in revenue from Emerging Businesses
+1.0%
2,479 2,504
Operation Revenue
+77.7%
Revenue from Emerging Businesses*
129
230
+10.1%
255
280
Adjusted net profit & net profit margin#
10.3%11.2%
+228.8%
71
233
Net profit & net profit margin
2.9%
9.3%
Performance continued to improve substantially
2019H1
2020H1
RMB million
+2.9%
868
894
Gross profit & gross profit margin
35.0%35.7%
4
CORPORATE PROFILE
Established in 1993, AsiaInfo Technologies (stock code: 01675.HK) serves as a leading provider of software products,solutions and services with its focus on the industries such as communications, finance, energy, transportation,government affairs and postal services etc. The Company is committed to leveraging its strong abilities in products,services, operation and integration to continuously sourcing new customers, create new businesses and explore newmodels, in order to assist different sectors for digital transformation
Possessing a software portfolio of over 500 highly reliable, stable and practical “carrier-grade” products,and continued to obtain the CMMI Level 5 ( Capability Maturity Model Integration Level 5) internationalcertification, showing AsiaInfo Technologies’ outstanding performance in software capability maturity, andonce again demonstrating our capabilities in software progress improvement and software developmentmanagement
Member of international standard-setting organizations such as 3rd Generation Partnership Project, GSMA,TeleManagement Forum, European Telecommunications Standards Institute and InternationalTelecommunication Union and the vice-chairman member of the China Alliance of Industrial Internet (中国工业互联网产业联盟), deputy secretary-general unit of China Highway Travel Information Service Alliance (中国公路出行信息服务联盟), and vice chairman member of Internet Society of China (中国互联网协会)
Awarded the Most Influential Software and Information Service Enterprise in China (中国最具影响力软件和信息服务企业),the Outstanding Enterprise in Electronic Information Industry (电子信息行业卓越企业), 5G Innovation Award (5G创新先锋奖), the Top 100 Enterprises with Comprehensive Competitiveness in Software & Information Technology Service (软件和信息技术服务综合竞争力百强企业), and the Best Digital Transformation Practice Award in International Software Fair (国际软交会最佳数字化转型实践奖)
Collaborating with major cloud providers by leveraging its abundant software product systems andexcellent project management ability, so as to provide products and services including cloud adoptionand application as well as data-driven operation for enterprise customers and has been awarded theExcellent Level Certification in Cloud Management Service by China Academy of Information andCommunications Technology (中国信息通信研究院)
Largest Telecom Software Product and Related
Service Provider in China Committed to becoming the
enabler of digital transformation for large enterprises in the 5G era
5
IT 1.0 Era IT 2.0 Era IT 3.0 Era
Independent IT era Cloud computing era “Cloud network computing” era
5G NETWORK WILL FACILITATE ENTERPRISE INORMATION SUPPORT SYSTEM INTO THE "CLOUD NETWORK COMPUTING" ERA
6
Real Time Observation Data
Objective Record Data
Non-contactable Transaction Data
… …
Cognition
Pre-cognition
Perception
Prediction
Insight
01011
11001
11101
Tens of billion of people
Trillions of Things
01011
11001
11101
01011
11001
11101
BIG DATA WILL SIGNIFICANTLY ENHANCE ENTERPRISE COGNITIVE CAPABILITIES AND OPERATION MODELS
7
DatabaseERP
System
CRMSocial
Platforms
Network Management
System
Billing
Compliance Operation
Asset Operation
Security Operation
Process Operation
Management Operation
Customer Operation
Employee Operation
Collaborative Operation……
Network+
Cloud
Intelligent
Platform
Intelligent
PlatformCorporate
BrainIntelligent
Platform
”CORPORATE BRAIN" HELPS TAPPING ENTERPRISE BIG DATA VALUE,IMPROVING OPERATION EFFICIENCY
8
Compliance Operation
Asset Operation
Security Operation
Process Operation
Management Operation
Customer Operation
Employee Operation
Collaborative Operation
Energy FinancePostal
ServicesTransportation Government
Affairs……Vertical Industries
Enterprises
Data-driven Enterprise Intelligent Operation
Cloud Service Resources
Operator Network
AsiaInfo Technologies will seize opportunities in the 5G era, exerts its operational support advantages, enable digital transformation of vertical industries and help building a “corporate brain"
……
Mixed Cloud Private Cloud
TelecomCloud
Edge Cloud
Public Cloud
ASIAINFO WILL EXERT ITS OPERATIONAL SUPPORT ADVANTAGES TO HELP INDUSTRIAL CUSTOMERS IN THE 5G ERA TO BUILD “CORPORATE BRAINS”
Overview and Prospects
Operation Performance
Financial Performance
10
• In the first half of 2020, despite the impact of the epidemic, the overall performance still recorded a stable growth, and the Emerging Businesses, namely operationsupport systems (OSS), data-driven operation (DSaaS), and vertical industries and enterprise cloudification, recorded high-speed growth, the revenue of which grew by 77.7%year-on-year
• The Company has been selected as a constituent of each of Hang Seng Composite Index, Hang Seng Stock Connect Hong Kong Index and Hang Seng Internet & Information Technology Index, etc., change of which will take effect on 7 September 2020.
Business Support Systems (BSS)
Operation Support Systems (OSS)
Data-driven Operation (DSaaS)
Vertical industries and enterprise cloudification
One Consolidation Three Developments
* For details of adjusted items, please refer to Appendix 3
（RMB million）
+1.0%
2,479 2,504
Operation revenue
2019H1 2020H1
YoY +77.7%
129
230
Including: RevenueFrom Emerging Businesses
2019H1 2020H1
YoY +228.8%
71
233
Net profit
2019H1 2020H1
YoY +10.1%
255
280
Adjusted net profit*
2019H1 2020H1
YoY
OVERALL PERFORMANCE RECORDED STABLE GROWTH AND EMERGING BUSINESSES RECORDED HIGH-SPEED GROWTH
11
Operator market
Vertical industries market
Data-driven operation(DSaaS)
Vertical industries and enterprise cloudification
BSS
OSS
• Focusing on key industries with large scale replication based on matured products
and solutions: energy, finance, transportation, government affairs, postal services,
etc.
• Provide cloud intelligence integration services and solutions to B-terminal, G-
terminal and C-terminal customers, such as cloud primary technology services,
cloud professional services, cloud MSP services and digital transformation
• Participating in 5G network
construction, establishing technical
influence, and obtaining 5G
business income and market share
• Relying on the big data-based
“products and services” platform,
helping enterprises to enhance
operational capabilities in market
insight, stock management, new
customers solicitation, risk
prevention and control, and assisting
the government to improve
management and service capabilities
in population management, public
safety, emergency protection, traffic
management, etc.
+38.6%40
56
Revenue from OSS
2019H1 2020H1
+90.7%
55
106
Revenue from DSaaS
2019H1 2020H1
+103.0%
（RMB million）
34
68
Revenue from vertical industries and enterprise cloudification
2019H1 2020H1
EFFECTIVE TRANSFORMATION THROUGH IMPLEMENTING THE"ONE CONSOLIDATION, THREE DEVELOPMENTS" STRATEGY
12
Number of customers in
operators’marketCustomer retention rate>99%262
• 多省BSS 、数据中台、以及
相关中心化大型工程项目的
持续推进
• “平台+应用”解耦并重构
BSS核心业务系统
• ……
Propelling 5G business support
• 5G SA billing system: Comprehensive upgrade to deploy products in over 18 provinces, and will put into commercial operation successively in the second half year
• 5G network slice end-to-end management: Help customers to achieve full-domain, full-process, and end-to-end network slice configuration and rapid activation
• 5G cloud network integration support:Further upgrading and optimization of the two-level support system for cloud network integration
• 5G integration package support: 5G integration package support upgrade for operators in various provinces
• 5G business end-to-end support upgrade: 5G end-to-end support upgrade of individual, home and other businesses
• ……
• 多省BSS 、数据中台、以及
相关中心化大型工程项目的
持续推进
• “平台+应用”解耦并重构
BSS核心业务系统
• ……
Deepening 5G smart operation
• Smart middle office platform: Actively participated in the formulation of different solutions and specifications for smart middle office platform, and provided assistance in implementing smart middle office platform projects
• Grid operation: Completed the delivery of grid operation platform in many provinces, enabled customers to run refined operations
• Equity operation: Helped customers in many provinces to set up equity operation centers and assisted customers to transform to internet-based operations
• Digital content and service operation: Assisted professional companies to carry out APP user operations under the “platform + operation” model
• Private domain traffic operation: Helped customers to construct private domain traffic marketing platform based on corporate WeChat account
• …..
• 多省BSS 、数据中台、以及
相关中心化大型工程项目的
持续推进
• “平台+应用”解耦并重构
BSS核心业务系统
• ……
Product innovation empowers digital transformation
• Self-developed database: Eliminated O for business support domain to help customers shifting to independent and controllable technology
• RPA robots: Helped operators and customers to achieve automated and intelligent business processes to further improve process efficiency
• Knowledge Graph: Helped customers to make customer service systems smarter
• Full domain AI platform: Provided intelligent-incorporated algorithm model and inspiration engine for front-end business scenarios
• Cloud primary technology: Helped provincial customers to complete the grayscale release of core systems, so as to consolidate cloud primary capabilities
• ……
Efficiency of telecom BSS core business continues to improve
Telecom BSS
16.4%
FURTHER SOLIDIFYING LEADERSHIP POSITION IN OPERATORS' MARKET FOR BSS
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Commercial progress of 5G OSS products
in the first half year
New 5G network intellegent cooperation commercial sites
• 5G SMS gateway virtualization (AsiaInfo’s first NFV network virtualization commercial products)
• 5G network’s first management-grade system CSMF & NSMF (China's first operator-grade 5G network slice manager commercial system)
• 5G network intelligent maintenance
• O&B integrated customer satisfaction intelligent analysis system
• IBN support system
• Wireless network intelligent management system
• ……
27 sites
cumulatively
Revenue exceeded
RMB15.3 millionFirst phase revenue breakthrough
of RMB10 million
Intelligent planning
optimization
Intelligent emergency
management
Intelligent performance management
Intelligent resources
management
Intelligent customer
experience management
Network maintenance
Control and management
Business opening up and orchestration
Customer cognition
Intelligent analysis
Intelligent orchestration
(slicing/network resources)
AISWare
5G-Slicing
Mgmt
AISWare
5G-OSS
AISWare
NFV
AISWare
SDN
AISWare
CEM
AISWare
ReTINA/
LBS+
AISWare
CMP-N
Network orchestration
Vendor neutrality: As a neutral vendor, it has advantages and rich experience in cross-domain vendor connectivity, andhas already approached many mainstream network equipment vendors
Cross-domain connection: Comprehensive O-domain and B-domain product solutions, helped operators to achieve O-domain and B-domain integration and end-to-end management of networks and businesses
From AI inspiration to intelligent incorporation: Leading communication artificial intelligence technology in theindustry, supported the comprehensive intelligence of networks and businesses
Matured network management middle office business system: A full set of matured products for technology middleoffice, data middle office, AI middle office, and network management business middle office
Support customer-level technical specifications: Intensely participated in the formulation of technical specificationsfor China operators in the network slice and network intelligent maintenance sectors. When compared with traditionalequipment companies, AsiaInfo products are more appropriate to meet customers’ needs for integrated networkmanagement, activation, and intelligent operation and maintenance
Continued to expand and upgrade 5G network intelligence products5G OSSProduct series
Commercial layout continued to deepen and thenumber of commercial sites increased rapidly
5G OSSCommercial penetration
ACCELERATED COMMERCIAL APPLICATION OF 5G OSS PRODUCTS
Epidemic prevention and control, intelligent operation tools for community epidemic prevention, community security management, telecom anti-fraud, transportation network management and electronic police traffic based on big data
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Revenue106
million Growth rate90.7%
Result-based charging
SaaS subscription
Charging per item
……
Charing per tool software
Industry analysis report, winning clients by precision marketingscenario, long tail customer operations, resume contact withcustomers and fans matrix operation
Identity authentication, credit assessment, small- and mid-size enterprise marketing, online customer marketing and design promotion services
WeChat operation of IPTV customer and big data precision marketing for IPTV customers
Inventory customer internet zone operation (shared by result),package upgrade from 4G to 5G, 5G package terminal upgrade,digital content and service operation, live broadcast and fansoperation (shared by result) and private domain traffic user operationGovernment and enterprise business operations based on big dataand increased revenue from new market
Provide government with emergency services for flood prevention based on meteorological big data and operator big data
Operator
Government affairs
Public service
Bank
Insurance
Cable TV
Data-driven operation services（DSaaS）
Financial insig
ht clou
d
Financial marketing clou
d
Financia
l risk control clou
d
Population
managemen
t clou
d
Transportatio
n insig
ht clou
d
Telecom
anti-frau
d clou
d
Custome
r visit
monitorin
g clou
d
Address
selection service
cloud
Retentio
n managemen
t clou
d
Data source
Compliant externally introduced data
Authorized processing data
Customer-owned data
Middle office technology sharing
Algorithm
model
Mobile tools
Analysis
tools
Visible tools
Business scenario
bank
API portal
Cloud manage
ment tool
Emergenc
y managemen
t clou
d
Epidemic preventio
n and control
cloud
DSaaS
The operators market has achieved model breakthroughs, and vertical industries and markets such as government affairs, banking, and insurance continue to penetrate
Continuous Expanding in key industries
Provide customers with data-driven DSaaS services
DSaaS product mechanism
DSaaScommercial model
DSaaS BUSINESS INCREASING BY OVER 90%, WITH REVENUE BREAKTHROUGH OF RMB100 MILLION
CRM supporting upgrade of China Post Group; and the Big Data Project of Postal Savings Bank head office and branchesThe Data Collection Platform Project of Chongqing Post and the Micro Service Cloud Platform Project of Sichuan Post
The DevOps Phase II and Big Data Project of China CITIC Bank; the Data Standard and Quality Management Project of China CITIC Bank and the CRM Project of PICC life insurance
15
Number ofLarge enterprise
customers
Revenue
68.15million48.8%
64
Vertical industries andEnterprise cloudification
Develop standard products and industry-customized products, and cooperate with cloud vendors to expand the industry market
Government and
enterprise cloud
Cloud management
Provide enterprises with cloud and intelligent integration
services and solutions
Cloud and intelligent integration
Business middle office
Corporate-grade Smart Middle Office
AIMiddle office
Data middle office
Technology middle office
Industry cloud solutions
• Energy cloud solution
• Financial cloud solution
• Transportation cloud solution• ……
……• AntDB • DevOps
Cloud products (PAAS+SAAS)
• DataGo• Data middle
office• Technology
middle office
Cooperate with cloud vendors to expand MSP
103.0%
The market for large enterprises in vertical industries continues to expand
Vertical industries market expansion
Provide customers with cloud and intelligent integration services and solutions
Positioning of AsiaInfocloud business
Media cloud
Medical cloud
Cloud software
Cloud network
Internet of Things
Big data
5G
AI
Construct with Alibaba Cloud to expand Hebei Steel and Delong Steel
The Emergency Production Management Platform of China National Nuclear Power, the Exclusive Wireless Network Project of Guangxi Xing An wind power of State Power Investment Corporation and the Operation Management Project of China National Nuclear Power
The Expressway Operation Monitoring Platform Project in Yunnan; the Road Network Integrated Management Platform Project of Guangxi Transportation Science and Technology Group
The first phase of the e-commerce platform project supported by technology from Alibaba Cloud and AsiaInfo was launched successfully
The Data Management Project of Tianjin Fire Research Institute of MEM and the 5G Smart Water Service Project of the Water Affairs Bureau of Wuzhong District, Suzhou
MSP
Energy
Finance
Government affairs
Postal Services
CRM supporting upgrade of China Post Group; and the Big Data Project of Postal Savings Bank head office and branchesThe Data Collection Platform Project of Chongqing Post and the Micro Service Cloud Platform Project of Sichuan Post
Transportation
TAPPING INTO ENTERPRISE CLOUDIFICATION BUSINESS AND CONTINUOUS EXPANSION OF VERTICAL INDUSTRIES MARKET
16
• The R&D investment focuses on strategic moves, continues to strengthen the technology system of middle office to drive business efficiency improvement, and increases the technology R&D investments in Emerging Business to accelerate product innovation. In the first half of 2020, the R&D investment amounted to RMB350 million, representing 14.0% of revenue, and the R&D investments remains stable
Platform enpowerment5G network intelligence AI inspiration Smart city Innovative application
Operator market + Vertical industries market
• IoV smart operation• Cloud resources pool
management• Financial marketing
cloud• Police anti-fraud cloud• ……
• 5G slice end-to-end operation
• Intelligent customer experience management
• Location capability server• 5G industry private
network• ……
• Process automation robot
• Intelligent access control system
• Intelligent security integrated machine
• ……
• 5G city digital twinning• Urban brain• Smart expressway• Smart medical care• ……
• DevOps• Industrial internet platform• Knowledge graph
management• Blockchain equity mutual
benefits• ……
The BOM three-domain integration solution supports
operators' global virtualization, global intelligentization and
global perception
Based on a unified middle office system, five categories and nearly 60 5G industry products and solutions are cultivated to drive the replication and value maximization of vertical industries
Operator Market
Mid
dle
off
ice
tech
no
log
y s
yst
em
Technology
middle office
Business Capability Opening
and Operation
Safety
systemData center
middle office
AI center
middle office
Operation business
middle office
Network
management
middle office
Management
business middle
office
LEADING TECHNOLOGICAL R&D STRENGTHS HELP ACCCLERATE BUSINESS TRANSFORMATION
17
Population big data platform for epidemic prevention and controlrecommended by CAICT and the Open Source Cloud Alliance for Industry
Human flow and epidemic trend sensing productsVisualization solution of 3D immersive data in sensitive regionsNovel coronavirus pneumonia public health emergency joint operation planRecommended by Ministry of Science and Technology
Human flow and epidemic trend Sensing in epidemic regions
Epidemic command module
Population big data platform for epidemic prevention and control
Responded quickly and launched 16 products
and solutions for epidemic prevention and control
Visualization of 3D immersive data on sensitive regions
Trend sensing of high-risk population for disease control
D8ECF6
Public health emergency joint operation plan
……
Location capability server
Intelligent outbound epidemic information collection
Access control system for abnormal monitoring of sensitive people
Continued to provide refined data support for the Ministry ofIndustry and Information Technology, the Beijing MunicipalDevelopment and Reform Commission, different district andcounty governments, and key communities to accurately andeffectively assist epidemic prevention and control andresumption of production.
Spatio-temporal location big data-based epidemic prevention and control solutionsThe Solution of Industrial Internet Platform on supporting Epidemic Prevention and Control and Resumption of Production was short listed by the Ministry of Industry and Information Technology
ENDEAVOUR TO PREVENT AND CONTROL THE EPIDEMIC HIGHLIGHTING DATA VALUE AND CORPORATE RESPONSIBILITY
18
25%：For daily operations
Enhance AsiaInfo's service capabilities
in the operators sector
• BSS • 5G OSS
• Building and improving IT capability
• Network platform
• Smart middle office platform
……
Collaborate with each other to enhance AsiaInfo’s
emerging business development capabilities
Smart energy
Smart city
Smart finance
Smart medical care
35%：For strategic synergy investmentsand mergers and acquisition
40%：For new technology R&D and EmergingBusiness development
In April 2020, China Mobile and AsiaInfo Technologies
reached a strategic investment agreement to invest
HK$1.385 billion to subscribe for the new shares and will
hold nearly 20% of the shares *
* Assuming no further changes in the number of issued shares from this date to the completion date
……
Facilitate the formation of in-depth strategic
synergy between the two parties
One Consolidation, Three Developments
Vertical
industries and
enterprise cloudificati
on
DSaaSOSSBSS
C H B N
Connection
+ application
+ equity
Smart home
Network+
cloud +
DICT
Innovation
Entrepreneurship
Creation
HC B N
Enterprise cloudification
Verticalindustries
Data-drivenoperation
CHINA MOBILE’S STRATEGIC SHAREHOLDING SUBSCRIPTION, DEEPENING STRATEGIC COOPERATION
Cooperate with leading companies to achieve complementary advantages and win-win cooperation
Strategic cooperation
19
Sta
nd
ard
ized
o
rgan
izati
on
sQ
ualifi
cati
on
s an
d h
on
ors
• Information system construction and service capability assessment (CS4 Level)
• Become a member of China Information Technology Application Innovation Working
Committee
• CMMI Level 5 (Capability Maturity Model Integration Level 5), the highest level of
certification
• China's Top 100 Enterprises in Comprehensive Competitiveness in Software and Information
Technology Services
• China's Most Influential Industry Brand in Software and Information Services
• Best Practice Award for Digital Transformation in China’s Digital Economy and Software
Service Industry
•… …
• Officially joined International Telecommunication Union• Four standardized proposals cooperated with China Telecom were approved by International Telecommunication Union
• Two 5G network AI proposals and one 5G R17 standard were approved by 3rd Generation Partnership Project
• Nine proposals including 5G international standards were approved by European Telecommunications Standards Institute
• Become a member of GSMA to make contributions to global 5G construction
• Joined the O-RAN Alliance to make contributions to the construction of operator wireless networks
• 5G AIOps intelligent maintenance products won the TMF Asia Summit Award
• Joined the 5G Network Slice Alliance
Cloud service
provider
Vertical
industries
5G vendors
Telecom
operators
北京华电天仁电力控制技术有限公司
中泰晟华智慧(天津)科技有限公司
……
Members of standardized organizations and industry associations, our influence continues to rise
Comprehensive strengths
CONTINUE TO DEEPEN STRATEGIC COOPERATION WITH INDUSTRY PARTNERS AND WIN WIDE RECOGNITION IN COMPREHENSIVE STRENGTHS
20
MSP capability assessment dimension
Consultation capabilities: 3 sub-dimensions and 13 capabilities
• Basic enterprise capability
• System evaluation capability
• Planning and design capability
Migration capabilities: 3 sub-dimensions and 10 capabilities
• Migration plan capability
• Migration implementation capability
• Migration verification capability
Management capabilities: 5 sub-dimensions and 14 capabilities
• Multi-cloud access capability
• Resources management capability
• Operation and maintenance management capability
• Operation management capability
• Security management capability
Provide comprehensive cloudservices, and possess soundstaff structure, strongtechnical capabilities,comprehensive tool system,and standardizedmanagement system
3 dimensions, 11 sub-dimensions and 34 capabilities
MSP Excellent Level Certification of Trusted Cloud by CAICT
To meet the various needs of the cloud MSP
industry development and lead the development of
the industry, AsiaInfo Technologies participated
intensively in the preparation of “Cloud MSP
Development White Paper” led by China Academy
of Information and Communications Technology
Excellent
Enhanced
Foundation
On 29 July 2020, the China Academy of Information and Communications Technology awarded the
Cloud Management Service Capability Excellent Level Certification to AsiaInfo Technologies, being
the highest assessment standards for Trusted Cloud (currently only five MSPs have passed such
certification)
AWARDED THE CLOUD MSP EXCELLENT LEVEL CERTIFICATION, INTENSIVELY PARTICIPATED IN CLOUD MSP WHITE PAPER PREPARATION
21
AsiaInfo Technologies will form cooperative alliances with China's operators, large cloud vendors and more industry partners to seize market opportunities such as 5G, new infrastructure, information technology innovation, and epidemic-derived digital operations, and continue to practice the business strategy of “One consolidation, Three developments" to improve efficiency and growth rate, and drive the steady growth in performance.
N e w c u s t o m e r N e w b u s i n e s s e s N e w m o d e l
Data-Driven Operation (DSaaS)Telecom Operation Support Systems (OSS)
Leveraging our product, service, integration and operation capabilities to assist enterprises in digitalization and creating new value
2020-2024 Revenue and profit continue to grow rapidly
Organization Optimization Projects
Human Resources Projects
Cost-effective Control Projects
Data-driven Operation Projects
Telecom Business Support Systems (BSS)
Vertical Industries and Enterprise Cloudification
AI is everywhere (intelligent services are everywhere. AsiaInfo Technologies is everywhere. Love is everywhere)
Investment and M&A Projects
Telecom Business Support Systems (BSS)
Strategic Cooperation Projects
F o c u s o n c u s t o m e r s R e s u l t - o r i e n t e d O p e n c o l l a b o r a t i o n P u r s u i t o f e f f e c t i v e n e s s E m b r a c e c h a n g e
Operational ability Integration ability Service ability Product ability
Telecom Operation Support Systems (OSS)
Data-Driven Operation (DSaaS)Vertical Industries and enterprise
cloudification
LOOKING FORWARD: DEEPEN THE BUSINESS STRATEGY OF “ONE CONSOLIDATION, THREE DEVELOPMENTS", CORE BUSINESS EFFICIENCY CONTINUES TO BOOST, STRIVE TO GROW THE EMERGING BUSINESSES AT FULL SPEED, DRIVE SOUND PERFORMANCE GROWTH
Overview and Prospects
Operation Performance
Financial Performance
23
Jan – Jun 2020 Jan – Jun 2019 ChangesRevenue 2,504 2,479 1.0%Including: Revenue from Emerging Businesses 230 129 77.7%Gross profit 894 868 2.9%Gross profit margin 35.7% 35.0% 0.7PPOperating expenses (633) (749) (15.5%)Other profit or losses 30 5 536.1%Income tax expenses (58) (53) 9.0%Net profit 233 71 228.8%Earnings per share (RMB) 0.32 0.10 220.0%
Adjusted data*Adjusted net profit 280 255 10.1%Adjusted net profit margin % 11.2% 10.3% 0.9pp
Net cash outflow in operating activities 181 358 (49.4%)
* For details of adjusted items, please refer to Appendix 3
PERFORMANCE HIGHLIGHTS
24
Proportion of revenue from EmergingBusinesses to revenue*
5.2% 9.2% Proportion of revenue from Emerging Businesses to revenue
* Emerging Businesses：OSS, DSaaS, vertical industries and enterprise cloudification business
Operation Revenue
+1.0%
2,479
2019H1
2,504
2020H1
2,190
2018H1
+13.2%
RMB million
Number of telecom operator customers
+16.4%
225
2019H1
262
2020H1
212
2018H1 个
Number of large enterprise customers
+48.8%
43
2019H1
64
2020H1
32
2018H1 个 RMB million
+103.0%
2020H1
230
68
106
56
+77.7%
2019H1
129
34
55
40
+90.7%
+38.6%OSS
DSaaS
Vertical industries and enterprise cloudification
RELATIVELY STABLE GROWTH IN OPERATION REVENUE, ROBUST DEVELOPMENT IN EMERGING BUSINESSES
25* For details of adjusted items, please refer to Appendix 3
Gross profit and gross profit margin
+2.9%
868
35.0%
2019H1
894
35.7%
2020H1
662
2018H1
30.2%
RMB million
Net profit and net profit margin (%)
+228.8%
71
2.9%
2019H1
233
9.3%
2020H1
87
2018H1
4.0%
RMB million
Earnings per share
+220.0%
0.10
2019H1
0.32
2020H1
0.14
2018H1RMB
Adjusted net profit and adjusted net profit margin*(%)
+10.1%
255
10.3%
2019H1
280
11.2%
2020H1
201
2018H1
9.2%
RMB million
SOUND PROFITABILITY AND SIGNIFICANT IMPROVEMENT
26
Continuous good cost - control Maintain stable cost structure
Cost of sales
Selling expenses
Administration expenses
R&D expenses
Continuous reinforcement of digitalized project management and process optimizationOn-going positive effect from our product middle office strategy
Cost ofsales
Continuously strengthen the level of precision management of marketing activities and improve marketing efficiencyMarketing activities decreased year-on-year due to the epidemic
Sellingexpenses
Continuously enhance the standard of back office precision management and improve functional management efficiencyOverheads dropped year-on-year due to the epidemic
Administrationexpenses
Fully accounted for as expenses and relatively stable in R&D investmentsFocus on investing in products and solutions for EmergingBusinesses, and continue to build a middle office technology system
R&D expenses
Total cost
RMB million
-7.9%
-21.0%-25.1%
+0.0%
2020H1
2,244
352
118163
1,610
2019H1
2,360
382
150218
1,611
5.0%
Proportion of total cost to revenue (%)
-1.4pp
-1.3pp-2.3pp
-0.7pp
2020H1
89.6%
14.0%
4.7%6.5%
64.3%
2019H1
95.2%
15.4%
6.0%8.8%
65.0%
5.6pp
MAINTAIN GOOD CONTROL OVER COST AND STABLE COST STRUCTURE
Thank you！
RMB’000January to June
2020January to June
2019YOY YOY%
Revenue 2,504,146 2,479,331 24,815 1.0%
Cost of sales (1,610,482) (1,610,848) 366 0.0%
Gross profit 893,664 868,483 25,181 2.9%
Selling and marketing expenses (163,242) (218,091) 54,849 (25.1%)
Administrative expenses (118,336) (149,831) 31,495 (21.0%)
Research and development expenses (351,533) (381,692) 30,159 (7.9%)
Finance costs (11,390) (29,990) 18,600 (62.0%)
Exchange gains and losses (3,820) 10,613 (14,433) (136.0%)
Other income, revenue and losses 52,437 25,663 26,774 104.3%
Share of results of associates andImpairment losses on associates
(7,656) (1,637) (6,019) 367.7%
Profit before tax 290,124 123,518 166,606 134.9%
Income tax expenses (57,557) (52,786) (4,771) 9.0%
Net profit 232,567 70,732 161,835 228.8%
Adjusted net profit 280,438 254,666 25,772 10.1%
28
APPENDIX 1: SUMMARY OF CONSOLIDATED INCOME STATEMENT
RMB’000 2020/6/30 2019/12/31 YOY YOY%
Non-current assets 2,687,281 2,822,732 (135,451) (4.8%)
Including: Goodwill 1,932,246 1,932,246 - -
Pledged bank deposits and termdeposits – non-current
24,371 198,612 (174,241) (87.7%)
Current assets 4,921,500 4,717,908 203,592 4.3%
Including: Trade and note receivables 853,485 841,182 12,303 1.5%
Contract assets 1,630,971 1,554,521 76,450 4.9%
Pledged bank deposits and term deposits 629,092 321,246 307,846 95.8%
- current Bank balances and cash 1,658,844 1,810,591 (151,747) (8.4%)
Current liabilities 3,377,473 3,471,080 (93,607) (2.7%)
Including: Trade and note payables 394,105 358,048 36,057 10.1%
Contract liabilities 181,556 296,945 (115,389) (38.9%)
Other payables, deposits received andaccrued expenses
1,635,690 1,922,837 (287,147) (14.9%)
Bank borrowings - current 858,035 594,372 263,663 44.4%
Non-current liabilities 248,320 162,357 85,963 52.9%
Total equity 3,982,988 3,907,203 75,785 1.9%29
APPENDIX 2: SUMMARY OF CONSOLIDATED BALANCE SHEET
30
To facilitate comparisons of the operating performance of the Company in different periods, non-recurring, non-cash or non-operating items, which were not indicative of the operation of the Company, were excluded, and are listed as follows:
For the year ended 30 June
RMB’000 2018 2019 2020 Details of adjustment
Reconciliation of net profit to adjusted net
profit
Net profit 86,837 70,732 232,567
Add:
Pre-IPO Share-based compensation plan related expenses
24,531 175,608 38,867
The relevant expenses of the Employee Share IncentiveScheme implemented before listing will besubstantially recognized in 2020
Amortisation of intangible assets arising from acquisition
17,148 7,566 5,184The intangible assets from business combination in2010 has already been fully amortized in 2020H1
One-off listing expenses 20,862 - -Had not occurred after 2018
Interest expenses for theprivatisation of syndicated Loan
24,069 11,373 -Full repayment in 2019
Exchange loss/(gain), net 27,240 （10,613） 3,820
With the repayment of bank loans, the effect ofexchange gains and losses will be significantly reduced.Due to the unpredictability of exchange rate changes,no estimate is made for its impact in 2020H2
Sub-total of adjusted items 113,850 183,934 47,871
Adjusted net profit 200,687 254,666 280,438
RMB’000
Sub-total of adjusted items
2018H1
113,850
2020H1
47,871
2019H1
183,934
APPENDIX 3: IMPACT OF NON-OPERATIONAL EVENTS WILL BE REDUCED YEAR BY YEAR
