Yangtze River Business Daily news ● Yangtze River Business Daily reporter Ming Hongze
Through asset adjustment, Hande Information (300170. SZ) has enabled the business performance to increase significantly.
On the evening of January 18, Hande Information released its 2021 annual performance forecast, and the company expects to make a profit of 190 million yuan to 245 million yuan, an increase of about 2 times year-on-year.
In the first three quarters of last year, the company made only a profit of 2.0205 million yuan. The comparison found that the performance of the fourth quarter soared sharply.
The reporter of Changjiang Business Daily found that the substantial increase in the operating performance of Hande Information stemmed from the disposal of subsidiaries. In fiscal 2021, the company concentrated on divesting a number of immature subsidiaries, and due to the loss of significant impact on some of the original associated companies, it was reclassified into financial asset accounting in terms of financial accounting methods, which in turn generated a lot of investment income. Without these investment gains, the company would lose money.
Hande Information continues to carry out industrial transformation and upgrading, and at present, the company has become a digital ecological integrated service provider, helping enterprises to digitally transform, with thousands of customers.
God's operation has helped to greatly increase performance
The originally precarious operating performance suddenly shined, and Hande Information expects a significant increase in full-year performance.
According to the performance forecast, in 2021, the company expects to achieve a net profit attributable to the shareholders of the listed company (hereinafter referred to as net profit) of 190 million yuan to 245 million yuan, and a profit of 65.7095 million yuan in the same period last year, an increase of 189.15% -272.85% year-on-year.
The market was somewhat surprised by this level of net profit, which was about 2 times the year-on-year increase.
According to the third quarterly report, in the first three quarters of last year, Hande Information achieved operating income of 2.044 billion yuan, an increase of 9.79% year-on-year; net profit was only 2.0205 million yuan, down 95.06% year-on-year; net profit after deducting non-recurring gains and losses (referred to as deduction of non-net profit) was a loss of 0.80 billion yuan.
Specific to a single quarter, in the first, second and third quarters of last year, the company's operating income was 654 million yuan, 685 million yuan and 705 million yuan, respectively, an increase of 10.90%, 14.23% and 4.87% year-on-year. The corresponding net profit was 0.18 billion yuan, 0.14 billion yuan and -0.30 billion yuan, with a year-on-year change of 46.40%, 3.92% and -293.27% respectively; the deducted non-net profit was -0.13 billion yuan, -0.32 billion yuan and -0.35 billion yuan, with losses for three consecutive quarters, a year-on-year decline of 1323.68%, 500.94% and 397.47%.
Compared with the third quarter report and the annual performance forecast, in the fourth quarter, the company is expected to achieve a net profit of 188 million yuan to 243 million yuan. In the fourth quarter of 2020, the company achieved a net profit of 0.15 billion yuan. It can be seen that the company's net profit in the fourth quarter of 2021 increased by more than 10 times year-on-year.
However, the sharp increase in net profit in the fourth quarter was not a significant increase in the profitability of Hande's main business, but relying on non-recurring gains and losses.
Hande Information explained that in 2021, the company's non-recurring profit and loss was about 376 million yuan, mainly due to the investment income generated by the company losing a significant impact on the original associated enterprise and reclassifying it into financial asset accounting.
According to the third quarter report of 2021, hand information's investment income in associates and joint ventures was a loss of 61 million yuan.
In addition, the non-recurring profit and loss of 376 million yuan also includes the financial support funds of the registered region. At present, Hande Information has not disclosed in detail the support funds received. In 2020, the company received government subsidies of 0.10 billion yuan. In the first three quarters of 2021, government subsidies were 0.07 billion yuan.
According to this estimate, in 2021, the company will not receive a lot of support funds. The main part of the non-recurring profit or loss, then, is still the investment income generated by the redistribution of financial asset accounting. The company said that the overall development of associated enterprises is relatively fast, the recognition of the capital market is high, the valuation has grown rapidly in recent years, and the disposal and sale of some subsidiary shares in 2021 has obtained a better return on investment income.
According to the announcement, Hande Expects net profit net profit net after non-recurring gains and losses (referred to as non-net profit) to be a loss of 186 million yuan to 131 million yuan in 2021.
R&D expenditure of 170 million remained stable
Hande Information continues to carry out industrial layout, although the operating performance is under pressure, but the investment in research and development has not decreased.
In the performance forecast, Hande Information said that China's digital economy is growing rapidly, industrial digitalization continues to heat up, and the company's independent products are gradually mature. Thanks to the strengthening of the company's downstream customers' demand and increased digital investment, the company's independent product digital intelligence production and marketing C2M business and group control GMC business have a higher growth rate in 2021. The company's traditional pan-ERP business and ITO business will grow steadily in 2021, laying a stable foundation for the overall business development.
According to public information, Hande Information was originally an information product implementer, and after two industrial transformations and upgrading, it has developed into a digital ecological integrated service provider through the solution provider stage. At present, its business field has been expanded to comprehensive enterprise information application product research and development, consulting implementation and technical services.
Hande Information said that the company is one of the earliest engaged in high-end ERP implementation services in China professional consulting companies, over the years, in addition to the traditional IT field of continuous excellence, but also actively track and study the development and application of cloud computing, big data, Internet of Things, artificial intelligence, industrial Internet and other technologies, fully with partners in the global IT ecosystem to jointly promote the application of new businesses including cloud, big data, intelligent manufacturing, smart marketing, Internet of Things and other new businesses in the field of enterprise services, And has established long-term cooperative relations with a number of high-quality customers.
In the 2021 semi-annual report, Hande Information introduced that the company continued to consolidate its leading position in the field of high-end enterprise information suite software implementation services in China, applied the experience and technical reserves of pan-ERP and ITO business solutions in its own products, and actively laid out in the two fields of digital intelligence production and marketing C2M and group control GMC, opening up new business growth points.
In fiscal 2021, Hande Information carried out a series of operations, gradually increasing the proportion of its own product business, and divesting some subsidiaries that required large R&D investment and continuous incubation by optimizing the asset structure. According to the announcement, Hande Information significantly reduced the shareholding ratio of some subsidiaries, such as the start of the subsidiary Zhenyun Information, Zhenyi Technology, Zhenhui Information, Zhen Zero Technology and other capital increases and share expansions, and Hande Information gave up the right of pre-emptive subscription. This move, in the eyes of the market, Hande Information wants to put some subsidiaries that require a lot of upfront investment out of the table.
According to the announcement, in 2021, Hande Information will divest the immature subsidiaries, superimpose Hande Digital Intelligent Production and Marketing C2M, group control GMC independent products have been basically developed, and the company's industrial layout is becoming more and more perfect.
Since 2019, hand information's operating performance has been under obvious pressure. In 2019 and 2020, the net profit achieved by the company was 0.86 billion yuan and 0.66 billion yuan, respectively, down 77.74% and 23.69% year-on-year, respectively. However, the company's R&D spending has not been significantly reduced.
In the first three quarters of 2018, the company's R&D expenses were 153 million yuan, compared with 173 million yuan and 160 million yuan in the same period of 2019 and 2020, respectively. In the first three quarters of 2021, its research and development expenses were 170 million yuan, an increase of 0.10 billion yuan year-on-year. With the divestiture of subsidiaries that require upfront investment, the company's R&D investment concentration will increase. At present, the company has more than 4,000 R & D personnel.
In the financial report, Hande Information said that after more than 20 years of development, the company has established a global market sales and service network, has a wealth of customer resources, and has provided information and digital transformation services for thousands of enterprise customers. Customers cover manufacturing, finance, circulation and trade industry, telecommunications industry, real estate industry, fast moving consumer goods industry, Internet industry, public utilities, etc., covering large, large, medium-sized and small and micro enterprises.
Editor-in-charge: ZB
This article originated from the Yangtze River Business Daily