On the evening of March 18, 2019, AsiaInfo Holdings Co., Ltd. (AsiaInfo for short, stock code: 01675.HK) announced the Company's annual financial report as of December 31, 2018. The financial report shows that in the fiscal year 2018, AsiaInfo saw a strong performance, with the software revenue growing steadily, reaching RMB 5.192 billion, an increase of 7.6% over the previous year, which was the highest record in the past three years, especially the digital operating service,which experienced a booming growth and nearly doubled that of the previous year. The Company realized RMB 602.2 million in net profit, an increase of 29.9% from the previous year.The number of large enterprise customers reached 38, increased year-on-year by 35.7%.
In the past year, AsiaInfo actively implemented the "Three News and Four Capabilities" strategy, tried to develop new customers, start new businesses and explore new models based on its capabilities in product, service, operation and integration, which helped maintain a good development trend and led to remarkable results in 5G network, digital transformation, Internet of Things, artificial intelligence and so on.
Hold a leading position in traditional carrier market with stable growth trend
AsiaInfo is China's largest telecommunications software product and service provider. It has been in the telecom carrier market for more than 20 years and has industry-leading R&D, product, service and operational capabilities, providing supports for more than 1 billion customers nationwide and holding an absolute leading position in the industry.
In 2018, AsiaInfo increased its investment in business support, 5G intelligent network, digital operation, big data and artificial intelligence, supplying over 500 products to telecom carriers. The Company also actively participated in the centralized reform of telecom carriers, supported the development of multiple large projects; actively expanded the growth opportunities of telecom carriers in new business areas such as Internet of Things, digital operation, intelligent customer service and 5G intelligent network, and continued to explore the telecom carrier market. As of December 31, 2018, it has established partnership with 214 telecom carriers, an increase of 10.9% over the previous year, and the customer retention rate exceeded 99%.
Accelerate large enterprise customer market expansion and usher in breakthrough progress
With in-depth industry awareness and good understanding in the telecom carrier market, valuable project management skills and a wealth of carrier-grade software products, AsiaInfo was actively expanding large enterprise customer market in the non-telecom industry and focusing on main business areas such as postal service, broadcasting, finance, energy and automobiles, etc., providing support services for the business transformation and digital operation of large enterprises.
AsiaInfo is now cooperating with large leading enterprises in the industry and has made breakthrough progress. For example, the Company has launched China Post Group's customer relationship management system, obtained orders of customer relationship management system from China Life Property & Casualty Insurance Company Limited and PICC Life Insurance Co., Ltd, and entered the grid industry and formed strategic partnerships with the State Grid and its subsidiaries. As of December 31, 2018, the Company has 38 large non-telecom enterprise customers, an increase of 35.7% over the previous year, and the customer retention rate exceeded 99%.
Digital operation is growing rapidly, forming a new engine for the future
With the continuous evolution of the business transformation and digitalization of Chinese enterprises, the digital transformation of different sectors is unstoppable. AsiaInfo, relying on its strong data analysis capabilities, professional modeling and IT capabilities, as well as its deep understanding of operational scenarios and pain points of customers' businesses, accurately analyzes the development of the enterprise market and its customer trends, and provides SaaS-based digital operation service tools, enhancing values for customers to achieve win-win results.
At present, AsiaInfo vigorously cultivates the emerging field of digital operation services, providing innovative digital operation services to key customers including carriers, banks, automobiles enterprises, as well as those in public affairs and other related industries, And we actively expanded customer base and income sources with measures such as jointly establishing innovative laboratories on data-driven business with headquarters and subsidiaries of various telecom operators, and established a strategic partnership with China Merchants Bank. In 2018, the Company's digital operation service realized a revenue of nearly RMB 82.5 million, which nearly doubled the number of the former year. Highly recognized by carriers and customers in the financial, automotive and public affairs industries, AsiaInfo has formed a strong market influence.
Fully launch R&D for 5G and industrial internet products
With the implementation of the national Internet Power Strategy and the huge innovation space brought by 5G technology, telecom carriers are accelerating the construction of a new generation of communication technology infrastructure. AsiaInfo has fully launched the R&D for 5G products, helping carriers build a universe-wide virtualized, intelligent, and appreciable 5G network. At the same time, the Company seizes the development opportunities in the industrial Internet era and actively explores the industrial Internet service model.
In 2018, AsiaInfo launched the planning and pre-research work for a new generation of business support system targeting at 5G business models and scenarios. It made breakthrough progress in 5G network intelligence, released 5G network intelligent product strategy and plan, built a series of product prototypes, including customer experience management products, network virtualization products, network intelligent analysis products, etc., and carried out pilot cooperation with research institutions or provincial companies of the three major carriers. In February 2019, the Company was elected as vice chairman of the Alliance of Industrial Internet, to jointly promote the development of the national industrial Internet industry with well-known enterprises in the industry.
Actively explore the SaaS-based IoT business model
Facing the industrial changes and development opportunities in the era of Smart Things, AsiaInfo has increased its development and investment in the field of Internet of Things, and established an innovative business model of IoT platform + IoT industry application + IoT operations.
In the smart community, car networking and other fields, AsiaInfo has developed mature industry applications, provides SaaS-enabled IoT services, and carries out in-depth cooperation with well-known companies such as Beijing North Star, Kangqiao Service, DESAY SV, BYD, and Changan Automobile. As of December 31, 2018, the smart community solutions have covered more than 3 million users and activated more than 200 communities; and the car networking platform has provided services for more than 6 million members of Changan Automobile and more than 300,000 high-end users of BYD.
According to Tian Suning, Chairman of AsiaInfo, the pace of the 5G commercial era is accelerating, and new technologies such as artificial intelligence, big data, Internet of Things and cloud computing have also triggered a new wave of industrial digitalization. In 2019, AsiaInfo will adhere to the strategy of "Three News and Four Capabilities" (new customers, new business, and new forms; capabilities of services, products, integration, and operation), seize the development opportunities to help telecom carriers' 5G network construction and business operations, and continue to expand the telecom industry's more than 20 years of achievements and accumulation to the enterprise market. It will also plan to explore new business models in the industrial Internet era and strive to become the enabler of the digital transformation of large enterprises. The bright future is not far away.