On the evening of August 14, 2019, AsiaInfo Technologies Co., Ltd. (AsiaInfo, stock code: 01675.HK) released its interim results for the six months ended June 30, 2019.
In the first half of 2019, the Company saw a good growth in operation performance, and software business revenue achieved double-digit growth, up 13.7% year-on-year to around RMB 2.4769 billion, of which digital operating service revenue continued to grow rapidly, more than doubled year-on-year; adjusted net profit was around RMB 254.7 million, up 26.9% compared with last year. Adjusted net profit margin was 10.3%, up 1.1 percentage points year-on-year, and profitability continued to improve.
2019 marks the first year of 5G commercialization, and the innovations in 5G technology and business is beginning to enter an important stage. As a close partner of telecom operators and an enabler of digital transformation of large enterprises, AsiaInfo is also actively embracing the technological revolution and industrial transformation brought by the 5G era and seeking new growth opportunities. During the first half year, the Company adhered to the "three new and four abilities" strategy as a guide, relying on its abilities in product, service, operation and integration, actively developed new customers, opened up new business and explored new models; AsiaInfo also took the "one consolidation and three developments" business strategy as the driving force, continued to consolidate the leading position in the software and service market of the telecom industry, strived for the breakthrough development of 5G network intelligent business, the scale development of digital operation business and the focused development of customer software and services in large enterprise, accelerating the business development process and realizing the stable and continuous improvement in profitability.
Helping operators transform and upgrade to 5G network with AsiaInfo's strong leading position in the operator market
The Company continued to increase its investment in business support, 5G network intelligence, scenario-based billing, big data and artificial intelligence. The revenue from the operator market grew steadily, further strengthening its leading position. AsiaInfo was also deeply involved in the centralized reform of telecom operators, and the centralized construction projects it had undertaken continued to expand, maintaining the core competitiveness of the business support system domain (BSS domain); it also supported operators to run specialized companies, providing a variety of software products and services, and helping specialized companies’ new business development; the "Phonex Tree Centralized Big Data PaaS Platform" co-developed by the Company helped China Mobile become the winner of "Outstanding Use of TM Forum Asset" and the Company 's "Platform + Industry Application + Operation" business model provided operators with the IoTs operation capability, continuing to expand the telecom operator market. As of June 30, 2019, the Company had served 225 telecom operators, an increase of 6.1% over the same period of the previous year, and the customer retention rate exceeded 99%.
The scale of digital operations expanded rapidly and revenue growth continued to double
AsiaInfo actively explored the innovative application of the digital operation business model in various industries, and cooperated with operators and cross-industry customers to create a digital operation ecosystem, enriching multi-dimensional data resources, pushing deeper into the data value and promoting mutual cooperation and mutual benefit. During the reporting period, the industry customers and service models were developed. For example, the “Platform + Operation” model was used to provide WeChat official account matrix operation services for operators and many large enterprises. The number of platform customers increased significantly; digital operation value-added services were provided to help specialized companies develop new business; AsiaInfo also cooperated with industry customers such as “operator + insurance” and “operator + IPTV (Internet Protocol TV)” to carry out data mutual assistance and accurate marketing of big data; the Company obtained new energy digital projects of the State Grid. During the reporting period, AsiaInfo's digital operation services realized revenue of approximately RMB 55.5 million. The growth of revenue and new orders doubled compared with the same period of last year and expansion in scale was continuing.
Actively expanding large enterprise market and empowering digital transformation in various industries
The Company actively expanded the market of large enterprises and empowered the digital transformation of various industries. AISWare DataOS, AsiaInfo's big data asset management platform, won the “Best Big Data Product” award from China Academy of Information and Communications Technology. The Company has served 43 non-telecom large enterprises, increased by 34.4% over the same period of last year, and the customer retention rate exceeded 99%.
Increasing R&D investment to build OSS domain network intelligent products
During the reporting period, the Company built the OSS domain network intelligent product, and received the first order. While pushing deeper into the traditional BSS market, the Company was also actively seeking new opportunities for the development of the OSS domain, integrating its technological advantages in the fields of communication artificial intelligence and BSS/OSS synergy, and launching 5G network intelligent products. The Company continued to deepen 5G pilot cooperation with R&D institutions or provincial companies under three major operators. By now, the Company has already carried out 4/5G commercial pilot work in 9 sites with the operators, and launched the first 5G network intelligent project. In addition, with the arrival of the 5G era, the Company continued to increase investment in research and development and accelerate the innovations of technologies and products; it was building leading 5G networks and business support capabilities, laying a solid foundation for the upgrading and transformation of operators and other industries in the 5G era. In the first half of the year, based on the technical concept of “global virtualization, global intelligence and global perceptibility”, the Company was building comprehensive leading 5G commercial software products and solutions, and launched a series of key 5G products. The Company officially became a member of the GSMA (Global Mobile Operators Association) and it would work with global telecom operators and industry partners to create a mobile ecosystem.
Looking into the future
The new 5G era will bright new opportunities. AsiaInfo will continue to adhere to the business development strategy of "one consolidation and three developments", create first-mover advantages with the "global" technology concept, fully support 5G construction of telecom operators. With profound technical accumulation and rich practical experience, it will empower the digital transformation of large enterprises and contribute to the construction of a "digital China".
Established in 1993, AsiaInfo Technologies Co., Ltd is providing software products and related services for the business transformation and digitalization of telecom operators and other large enterprises, relying on its capabilities in product, service, operation and integration. It is committed to becoming an enabler of digital transformation of large enterprises.
As the largest provider of telecommunications software products and related services in China, and the largest provider of BSS software products and related services in China's telecom industry, AsiaInfo has been working with China Mobile, China Unicom and China Telecom for a long time since the 1990s, supporting more than one billion users across China. AsiaInfo has industry-leading research and development capabilities, as well as comprehensive, highly specialized and innovative product lines, including customer relationship management, charging and billing system, big data, Internet of Things and network intelligence products.