AsiaInfo Announces 2021 Interim Results, with a 140.9% YOY Increase of “Three New” Business Revenue and Rapid Net Profit Increase by about 20%

2021-08-09 AsiaInfo


---The company’s operating income was about RMB 2.715 billion, a year-on-year increase of 8.4%, and orders on hand increased by more than 25% from a year earlier;

---The company’s “Three New” business revenue was about RMB 553 million, a year-on-year increase of 140.9%, and orders on hand increased by more than 150% from a year earlier, with the “Three New” business accounting for 20.4% of total revenue;

---The company’s gross profit was about RMB 997 million, a year-on-year increase of 11.6%, and gross profit margin reached 36.7%, a year-on-year increase of 1.0 percentage point, maintaining a good growth of profitability;

---The company’s net profit was about RMB 280 million, a year-on-year increase of 20.2%; the net profit margin was about 10.3%, a year-on-year increase of 1.0 percentage point;

---The company has been included in the MSCI China All Shares Small Cap Index Constituent Stocks.


On the evening of August 9, 2021, AsiaInfo Technologies Limited (known as: AsiaInfo, stock code: 01675.HK) announced the interim comprehensive performance as of June 30, 2021.

In the first half of the year, AsiaInfo firmly seized the opportunity of digital transformation of economy and society, further deepened its strategic transformation, enhanced “One Consolidation” with high quality, advanced the “Three Developments” at a high speed, and achieved good growth in overall performance. In the first half of the year, the company’s revenue reached about RMB 2.715 billion, a year-on-year increase of 8.4%; net profit was about RMB 280 million, a year-on-year increase of 20.2%; net profit margin reached 10.3%, a year-on-year increase of 1.0 percentage point. In the first half of the year, AsiaInfo’s orders on hand increased by more than 25% from a year earlier, maintaining a strong momentum for business development.

The acceleration of the large-scale expansion of the “Three New” businesses (DSaaS business, vertical industry and enterprise cloud business, OSS business) are the important driving force for the company’s overall operating performance to maintain a trend of good growth. In the first half of the year, the revenue of the “Three New” business increased significantly to about RMB 553 million, an increase of 140.9%; the proportion in total revenue exceeded 20% for the first time, and orders on hand increased by more than 150% from a year earlier.

DSaaS business: innovative model, which is safe, compliant, and stays ahead

In recent years, the DSaaS digital operation business led by AsiaInfo has maintained a doubled growth rate. By seizing the development opportunities of digital industrialization spawned by 5G and COVID-19, AsiaInfo has explored multiple models such as results-based payment, share settlement, subscription, etc., to help customers in multiple key industries with precision marketing, smart operations, and quality and efficiency improvements. In the first half of 2021, the DSaaS business achieved revenue of about RMB 309 million, a year-on-year increase of 192.0%, accounting for 11.4% of total revenue. Both the growth rate and revenue ratio of DSaaS business reached a record high, becoming the strongest driving force in the “Three New” businesses.

Since the beginning of this year, AsiaInfo has strengthened and deepened the strategic cooperation with Tencent to jointly develop the WeChat market for large government and enterprise customers. Centering on the private domain traffic of WeChat ecosystem, DSaaS tools and products based on the WeChat ecosystem have now covered millions of business managers of customers in communications, radio and television, finance and other industries, providing services to more than 200 million users.

It is worth mentioning that AsiaInfo always takes data information security as the cornerstone and guarantee in its DSaaS business, strictly abides by relevant national laws and regulations, and insists on protecting sensitive information during data usage to ensure the legality and security of data information. 

Vertical industry and enterprises’ access to cloud: actively make overall arrangement in industries

 and expand cooperation with cloud vendors 

In the first half of 2021, AsiaInfo has continued make overall arrangement in vertical industries of five strategic vertical industries including finance, energy, transportation, government affairs, and postal services, as well as the market of enterprises’ access to cloud, deepen product and capability accumulation, and further expand its large corporate customer scope, achieving revenue of about RMB 113 million, a year-on-year increase of 65.7%.

In the energy field, AsiaInfo has promoted the full implementation of a number of typical 5G application scenarios in nuclear power, wind power, thermal power, etc., and established industry private networks to accelerate the digital transformation of the energy industry. In the field of smart cities, AsiaInfo focused on close integration of data value and long-term operation to build an integrated capability system for smart city construction and operation, and reached a strategic cooperation with Guangxi BBGI Information Innovation Group to help the construction and operation of “Digital Guangxi”.

At the same time, AsiaInfo continued to deepen cooperation with many mainstream cloud vendors such as Alibaba, Tencent, Huawei, Baidu, etc., to jointly expand the services provided to multiple benchmark customers such as the State Council Information Office, Industrial Securities, State Grid, and government agencies, and deepened the cooperation on topics and data models in the comprehensive transportation sector. In the first half of the year, AsiaInfo passed Huawei’s “CSSP-IaaS Capability Certification”, and signed a strategic cooperation agreement with Tencent Cloud, becoming a core partner of Tencent Cloud. 

Facilitate the 5G’s “Sail Setting” initiative, consolidate and enhance the leading position of operators in the market

As an essential factor of economic development during the “14th Five-Year Plan” period, the state has vigorously promoted 5G to expedite development. AsiaInfo grasps the development trend of the integration of BSS & OSS in 5G era, improve 5G network and application support capabilities to consolidate and enhance the leading position of operators in the market. 

In terms of OSS business, AsiaInfo’s 5G network intelligent products and technological influence has been at the forefront of the industry. At the same time, the implementation of product benchmarks and large-scale applications such as 5G business orchestration, 5G slicing operation, NFV converged short message gateway, network middle-ground, and CEM customer perception management fully supports the 5G network construction and operation, customer service and experience optimization of customers, and empowers the applications for vertical industries. In the first half of 2021, the company’s OSS business has covered more than 90 provincial-level and professional companies from operators, achieving revenue of about RMB 131 million, a year-on-year increase of 135.8%. 

In terms of BSS business, AsiaInfo actively satisfies customers’ needs of business support transformation and innovation, and continues to improve efficiency in order to effectively support the development of the 5G business of operators. In the first half of 2021, the company’s BSS business revenue reached RMB 2.109 billion, maintaining a basically stable business scale; newly signed orders gained a year-on-year increase of 10%, ensuring the stable development in future.

Pioneer of R&D and innovation

AsiaInfo always adheres to the concept of “Pioneer of R&D and innovation”, and builds AsiaInfo’s global domain premium product system and solution capabilities with “ingenuity”. In order to empower various industries under the era of 5G, AsiaInfo has built a core product system and global domain product and solution capabilities, and makes efforts in becoming a “leader of 5G network intelligence, an important participant in domestic information innovation, an innovator of communications AI, the builder of digital intelligence middle-ground capability”. In the first half of 2021, the company invested RMB 443 million in R&D, a year-on-year increase of 25.9%.

As a leader in the smart technologies of 5G networks, AsiaInfo has 44 proposals that have been approved by voting by international and domestic communication standards. As an important participant of domestic information innovation, the self-developed AntDB enterprise-level MPP relational database products and Flying Server middleware products are fully compatible with the upstream and downstream series of domestic software and hardware such as Huawei’s Kunpeng, Loongson, Kirin, and UnionTech, and have been widely used in many industries; and the company's self-developed multi-cloud management OS platform has been adopted by large central enterprises in the electronics industry. As an innovator of communications AI, AsiaInfo is forward-looking. It has led the writing and publication of The Next Decade of Communications AI., promoted the full implementation of AI product system including AI middle-ground, edge AI recorder, AIOps, smart access, and RPA robotic process automation platforms in vertical industries, and organized the formulation of the first 3GPP 5G international standard for autonomous network federated learning and the international standard for 3GPP SA5 autonomous driving network level. 

As of June 30, 2021, AsiaInfo has a total of 952 software copyrights, 54 patents, and 178 patent applications for a number of key technologies and products.

The management of AsiaInfo stated that, facing the development opportunities of “digital industrialization” and “industrial digitalization” during the period of “14th Five-Year Plan”, AsiaInfo will unswervingly promote the strategic transformation of “One Consolidation and Three developments”, strive to build the “Three New” business into a strong growth engine, actively seek strategically coordinated investment and merger opportunities, and drive the continuous and rapid development of performance with intensive development and extensive growth, and steadily advance to the goal of “realizing over 10 billion of business scale, with new business accounting for the half” by 2025, so as to create greater value for the country, shareholders, and customers!