AsiaInfo Announces 2020 Annual Results, with Doubled Revenue from New Businesses and Profitability Hitting a Record High

2021-03-23 AsiaInfo


--- The revenue is about RMB 6.020 billion, with a year-on-year increase of 5.2%; 

--- The revenue from “Three New” businesses is about RMB 780 million, with a year-on-year increase of 106.5%, accounting for 13.0% of total revenue;

--- The gross profit is about RMB 2.303 billion, with a year-on-year increase of 8.3%; the gross margin reaches 38.3%, with an increase of 1.1 percentage points over the previous year; 

--- The profit for the year is about RMB 662 million, with a year-on-year increase of 62.0%; the profit rate for the year reaches 11.0%, with an increase of 3.9 percentage points over the previous year; 

--- The basic income per share is about RMB 0.85, with a year-on-year increase of 51.8%;

--- The adjusted net profit is about RMB 737 million, and the adjusted net profit margin reaches 12.2%, with an increase of 0.4 percentage points over the previous year;

On the evening of March 23, 2021, AsiaInfo Technologies Limited (known as: AsiaInfo, stock code: 01675.HK) announced the audited comprehensive performance as of December 31, 2020.

The overall performance grows well and the profitability hits record high

In 2020, despite the impact of COVID-19, the company’s overall operations remained well, and the profitability hit a record high. Especially driven by the rapid development of “Three New” businesses, operating income reached about RMB 6.020 billion, with a year-on-year increase of 5.2%, of which the revenue of “Three New” businesses reached about RMB 780 million, with a year-on-year increase of 106.5%, accounting for about 13.0% of total revenue (reaching double digit for the first time); profit for the year was about RMB 662 million, with a year-on-year increase of 62.0%; adjusted net profit was about RMB 737 million, and adjusted net profit margin reached 12.2%, with a year-on-year increase of 0.4 percentage points.

After fully considering the factors such as shareholder returns, company profitability, cash flow level and capital needs for future development, the Board of Directors decided to suggest the Annual General Meeting distributing the final dividend of HK$0.345 per share in 2020, with the annual profit dividend yield about 40%.

Revenue of “Three New” businesses doubled, with percentage in total revenue reaching double digit for the first time

In 2020, DSaaS business products and applications continued to be innovated and enriched, the model of payment by results was further promoted on a large scale, and the customer base continued to expand and have stronger intention to use. Therefore, the business was highly recognized. In particular, after the company has become an ecological partner of Tencent’s WeCom, the two parties work together to develop the WeCom market for large government and enterprise customers, and carry out private domain traffic operations centering on the WeChat ecosystem. In addition, in the process of fighting against the epidemic, the business value of DSaaS was further highlighted. The company cooperated with the National Health Commission and the Ministry of Industry and Information Technology to provide systematic and comprehensive product support for epidemic prevention and control. Products such as epidemic situation awareness, 3D immersive data visualization in sensitive areas, and joint operation plans of public health emergency for COVID-19 not only have been strongly recommended by the Ministry of Science and Technology, China Academy of Information and Communications Technology and OSCAR, but have been widely used. In 2020, DSaaS achieved revenue of about RMB 352 million, with a year-on-year increase of 131.7% and the growth rate reaching a record high. 

In terms of vertical industries and enterprise clouding services, the company focused on five strategic vertical industries, including finance, energy, transportation, government affairs and postal service. Through deep insights into customer needs, the company provides CRM, data management, DevOps, cloud MSP, smart city construction and other products and services to create benchmark product cases for gradual replication and promotion in the industry, and further expand large enterprise customer base. The company provides customers with cloud native technologies and products, cloud MSP, cloud migration, intelligent transformation on the cloud and other services to deepen cooperation with mainstream cloud vendors, which help customers migrate to and use the cloud faster and better. The projects jointly supported by the company and Alibaba Cloud have been frequently implemented. In addition to the smooth progress of OCJ project, projects of HBIS, Delong Steel and SANY have been added. Besides, the company was rated as “excellent”, the highest level certification of Trusted Cloud MSP, in the evaluation of Trusted Cloud• Cloud Management Service Provider Capability hosted by China Academy of Information and Communications Technology. As of the end of 2020, the company has served 85 large enterprise customers, with a year-on-year increase of 44.1%; the customer retention rate has continued to exceed 99%; and the cloud business revenue of enterprises in vertical industries is about RMB 180 million, with a year-on-year increase of 63.7%.

In terms of OSS business, the company has worked closely with the three major telecom operators and has always been committed to the innovation and commercialization of 5G network intelligence. Multiple provincial or group commercial implementation sites have been established for 5G OSS network intelligent products, contributing to the operators’ operation and maintenance of 5G network intelligence. Increasing from 27 commercial implementation sites in the first half of 2020, the total number of commercial implementation sites for 5G OSS services reached 73 throughout the year to accelerate development from “multi-point layout” to “all-round blooming”. In 2020, the company’s OSS business revenue was about RMB 248 million, with a year-on-year increase of 114.0%.

In terms of BSS business, the company actively overcame the adverse effects of the epidemic, quickly established an emergency support mechanism, adopted online collaborative tools to provide service support for customers and ensure project progress, and made efforts to improve efficiency. The company actively participated in the preparation of smart middle-ground plans and specifications for operators to help the implementation of smart middle-ground projects in various regions; actively explored 5G’s multi-dimensional, multi-layer and multi-mode billing capabilities to promote the launch of 5G SA billing system; assisted operators in digital construction of new IT to reconstruct the digital ecosystem, and accelerate the promotion of new integrated operation. In 2020, the number of telecom operator customers served by the company has increased steadily, and the customer retention rate has continued to remain at a high level of over 99%.

In terms of R&D, the company has obtained patents and software copyrights for a number of key innovative technologies and products. The company now has more than 900 software copyrights. While strengthening technological innovation, the company has established an innovative closed-loop model from standardization to commercialization, actively participated in 19 international/national technical standards organizations such as 3GPP, ITU, ETSI, IEEE, TMF, O-RAN, and contributed to 19 technical standards for international communications. In addition, under the background of new infrastructure and information technology application innovation, the company actively promoted the construction of independent and controllable products and technology lines, and advanced the development of domestic software in the progress of information technology application innovation. The database product AntDB has been selected as a key product in the field of information technology application innovation by the Information Technology Application Innovation Working Committee.

Committed to being an enabler for the digital transformation of large enterprises in the era of 5G

Facing the future, the company will actively embrace advanced technologies such as 5G, cloud computing, big data, AI, and the Internet of Things, and unswervingly promote strategic transformation, enhance “One Consolidation” with high quality, and boost “Three Development” at a high speed. In terms of traditional business, the company will continue to consolidate the leading position of operator market, actively tap the potential of businesses, and persistently improve efficiency. In terms of the “Three New” business, large-scale expansion will be accelerated. In this way, equal importance will be attached to DSaaS business scale and model innovation, cloud migration of vertical industry enterprises will focus on industry and high-quality development of cloud business, and the stock and increment of OSS business will go hand in hand to increase market share. The company will work with industry partners to build an open and cooperative ecosystem, continue to promote the transformation of business models, and speed up to keep up with the construction of “New Infrastructure”, “Information Technology Application Innovation” and “New Smart City”, in order to become the enabler of digital transformation of large enterprises in the 5G era.