In recent years, the Xinchuang industry has achieved rapid development. According to statistics from Haibi Research Institute, the core market size of Xinchuang will be 239.28 billion yuan in 2022, accounting for 26.0%. By 2025, the market size of Xinchuang is expected to exceed 2 trillion. - CAGR of 35.7% in 2025.
In the long run, the next five years may be a critical period for the development of "Daxinchuang", with a broad space for development. Under the Dongfeng of Xinchuang, many companies have also entered the fast lane of development, such as China Information, which will reap the report card of steady growth in 2022.
According to the 2022 annual report of Shenzhou Information, during the reporting period, the company achieved revenue of 11.999 billion yuan, a year-on-year increase of 5.67%, realized a net profit of 207 million yuan attributable to the parent, and deducted a net profit of 234 million yuan not attributable to the parent.
After the financial report was issued, Huaan Securities, Essence Securities, etc. all maintained a "buy" rating on China Information, and with the development of the Xinchuang industry, China Information may maintain this growth trend in 2023.
Steady growth in revenue, outstanding performance of the financial technology sector
In 2022, as the company's financial technology strategy continues to advance and benefits from the rapid implementation of emerging businesses such as online banking, the maturity of China Information's related products and solutions will be further strengthened, which will promote the steady growth of overall revenue.
From the perspective of the business side, thanks to the company's continued focus on the financial technology track and customer-centric market expansion, all business segments of China Information have achieved growth.
It is understood that by focusing on the innovation of the "technology + data + scene" model, China Information's business is mainly deployed in four areas: scene finance, financial innovation, data intelligence, and cloud-native digital security base. In terms of products, during the reporting period, China Information's system integration business achieved revenue of 6.349 billion yuan, a year-on-year increase of 5.24%; software development and technical service business revenue was 5.645 billion yuan, a year-on-year increase of 6.17%, and there were sufficient orders in hand, signed Unsold 1.756 billion yuan. This has laid a solid foundation for the long-term and stable growth of China Information's financial technology sector.
Source: China Information 2022 Annual Report
Specifically, China Information's financial technology sector includes software development and technical services for financial institutions, system integration business, and related businesses that are the basis for financial scene innovation. In 2022, the financial technology sector's contract and revenue accounted for the first time exceeded 50%, the contract value reached 6.1 billion yuan, a year-on-year increase of 2.96%, and the revenue was 6.074 billion yuan, a year-on-year increase of 11.01%, which is quite impressive.
The growth of this sector is closely related to industry trends. To some extent, China Information also benefits from the dividends of the development of the times. According to statistics from Statista, the revenue scale of the global financial technology industry has shown a rising trend in the past five years. Data show that the global financial technology industry market will reach US$146.2 billion in 2021, with a compound growth rate of 12.8% in the past five years. And according to preliminary statistics, in 2022, the global financial technology industry market will exceed 160 billion US dollars.
With such development dividends, China Information is also continuing to increase investment in research and development to promote business growth. According to the report, in 2022, China Information's research and development expenses will total 609 million yuan, a year-on-year increase of 5.84%, and the level of research and development investment will continue to lead the industry. It is worth mentioning that as of the end of 2022, the company has accumulated 1,820 software copyrights and patents, including 97 patents and 1,723 software copyrights. It owns all source codes and independent intellectual property rights from the bottom layer of the platform to the application layer. It can be seen that the company's technical strength is strong, which can effectively support the sustainable development of the bank's digital finance.
In terms of market position, China Information has outstanding competitive advantages in financial technology. During the reporting period, China Information ranked 34th in the 2022 IDC Global Financial Technology Rankings, and was awarded KPMG China's 2022 Top 50 Financial Technology Enterprises. Therefore, from the perspective of research and development capabilities and market position, China Information's financial technology sector is expected to continue to release the momentum that drives the company's upward development.
In fact, the financial industry has undergone multiple rounds of transformation and upgrading in the past 30 years, and China Information has also continued to transform and upgrade in line with the general trend in the development process. "No scene, no finance", for the sake of inclusive finance, the company is accelerating the construction of financial scenes and ecological construction. So from the perspective of the financial report, how effective is China Information in terms of scene business implementation?
Focusing on the three major financial application scenarios, the process of scenario business implementation is accelerated
Currently in the era of Scenario Finance 4.0, the importance of emerging technologies such as cloud computing, blockchain, and digital twins in industrial development has become more prominent. Banks and other financial institutions also pay more attention to the application of emerging technologies and the control of scene resources. For example, ICBC relies on "API platform + ecological cloud + Jufutong" to create a comprehensive scene resource pool of "industry + finance". However, in the process, how to better cater to the development trend of openness and integration, explore an innovative service model that conforms to its own logic, and find a suitable scenario application has also become a difficult problem for banks and other financial institutions.
In this context, the emergence of comprehensive service providers for the entire financial technology industry chain such as China Information Technology is crucial. At present, China Information has accumulated rich scene resources in finance, government and enterprise, operators, agriculture and other industries, and continues to promote the innovation and implementation of scene financial services. Through joint methods, it can help banks and other financial institutions to solve scene application problems. Realize complementary advantages and promote the development of inclusive finance.
In fact, the company has a leading market advantage and abundant business confidence in this area. According to the report released by IDC in 2022, China Information continues to maintain its leading position among the top three in China's banking IT solution market. The company's core business solutions, channel management solutions, and open banking solutions have three major advantageous businesses. Crowned.
In 2022, in order to help financial institutions sink their capabilities, better serve agriculture, rural areas and small, medium and micro enterprises, and use digital technology to achieve financial inclusion, China Information will continue to focus on the three major financial institutions: rural finance, small, medium and micro enterprise finance, and digital RMB. Application scenarios have promoted the process of business landing.
According to the financial report, in the field of agricultural finance, China Information provides integrated solutions of "platform + data + service" through the three major systems of "digital agriculture and rural areas", "financial empowerment of agriculture, rural areas" and "digital operation services". The linkage between online and offline has been realized, which has accelerated the development of agriculture. During the reporting period, China Information accumulatively helped banks provide high-quality financial services to more than 7 million farmers.
In terms of small, medium and micro-scenario finance, relying on full data risk control capabilities and core big data technology service capabilities, China Information has created integrated financial and credit services around key products such as credit, financial risk control, and model intelligence. The financial report shows that the company successfully won the bid and signed contracts with 17 customers including China Resources Bank and Fumin Bank, providing powerful assistance for the business development of various types of financial institutions such as small, medium and micro.
In terms of digital renminbi, China Information's digital renminbi solution has been implemented in more than 10 banks including Hua Xia Bank. In addition, the company's "Wuka, a prepaid consumer service platform based on blockchain and digital renminbi", has been piloted and released on the platform in Hainan Province. Financial report data shows that by the end of 2022, there will be more than 500 merchants and more than 15,000 consumers people settled in.
Thanks to the smooth implementation of the scene business, China Information's performance in 2022 has also achieved steady growth. The financial report shows that during the reporting period, the proportion of major customers signing contracts and customer concentration continued to increase. Among them, the total amount of contracts signed by major fintech state-owned banks exceeded 2 billion yuan, a year-on-year increase of 14.72%, and the total amount of contracts signed by joint-stock banks increased by 16.53% year-on-year. And the bonus of Financial Credit Innovation will also help the further development of China Information.
Accelerate the promotion of financial innovation, China Information welcomes development opportunities again
At present, in order to allow key business systems to fully meet the underlying development needs of Xinchuang, banks and other financial institutions hope to try domestic innovative databases and servers to replace the underlying technologies that have stagnated for more than ten years, which has also given birth to IT solutions for banks in my country. market development.
According to IDC data, in 2020, the market size of my country's banking IT solutions will be 50.24 billion yuan, a year-on-year increase of 18.0%. It is estimated that the CAGR from 2021 to 2025 will be 14.64%. billion. Under the development dividend of Financial Credit Innovation, China Information may usher in development opportunities.
From the perspective of the industry, at present, the competition pattern of banking IT solutions is still relatively fragmented, and the market share of CR5 is 21%. ), Nantian Information (3.8%), Sunlight Technology (2.9%). It can be seen that the gap between enterprises in the industry is not large, and the market space is sufficient. China Information is expected to demonstrate its unique advantages and increase its market share by virtue of its layout in financial innovation.
Specifically, the accumulation of China Information over the years has formed technical barriers. By integrating its own capabilities in product development and product integration, it has completed the adaptation of more than 20 mainstream domestic databases. In addition, it has national cutting-edge IT infrastructure construction and independent research and development capabilities for financial solutions, which can meet customers' needs for financial innovation in one stop and help financial institutions build a cloud-native digital security base.
It is worth mentioning that, based on its deep accumulation in the field of financial digitization, China Information has built a comprehensive Xinchuang ecosystem in the industry. Recently, it released the industry's first distributed core system and the [email protected] fifth-generation bank The overall architecture planning mainly guides the integration and development of financial innovation and bank digital transformation from the architectural level, and finally forms an overall full-stack financial innovation service including consulting, adaptation, products, integration, and operation and maintenance. It is foreseeable that this move will further enhance its competitive advantage.
Based on continuous efforts in the field of financial innovation and innovation, the development results have also been fed back into the performance. According to the financial report, the total contracted value of China Information's financial innovation business is 1.323 billion yuan.
As for future development, the company stated that under the impetus of Financial Credit Innovation, it will continue to rapidly expand the scale of advantageous solutions such as core business systems and enterprise-level micro-service platforms, and at the same time continue to optimize management strategies and improve delivery efficiency. Performance growth has a more positive impact.
In addition, according to the financial report disclosure, the company has sufficient cash flow. During the reporting period, the total assets at the end of the period were 12.44 billion yuan, and the accounts receivable were 2.72 billion yuan; in terms of cash flow, the net cash flow from operating activities was 201 million yuan. The cash received from commodities and rendering of labor services was 12.335 billion yuan. And its R&D investment continues to increase, and its operating capabilities are also continuously strengthened. These constitute the confidence of China Information to improve its performance and pave the way for the further expansion of its market scale. Generally speaking, in the dividends of Financial Credit Innovation, China Information has broad prospects for development, and future growth can be expected.
Author|Lucky
Source: Songuo Finance