isoftstone
isoftstone

Interpreting the New Growth Strategy: iSoftStone Holds 2023 Annual and Q1 2024 Performance Briefing

2024.05.22

 

On May 22nd, iSoftStone Information Technology (Group) Co., Ltd. (301236.SZ) held its 2023 annual and Q1 2024 performance briefing. Chairman and General Manager Liu Tianwen, Director and Vice General Manager & Chief Financial Officer Zhang Cheng, Independent Director Jian Jianhui, Secretary of the Board Wang Yue, and Sponsor Representative Zhang Zongyuan attended the meeting.

During the meeting, iSoftStone had in-depth communication with investors on hot topics such as the business situation in 2023, the four major business growth strategies, and investor relations.

In the face of factors such as intensified global competition, slowed economic growth, and the incomplete recovery of enterprise growth momentum and expectations, iSoftStone, with a stable posture, demonstrated its leading position in the software and information technology services industry. In 2023, iSoftStone's overall operations remained resilient, achieving operating income of 17.581 billion yuan, net profit attributable to shareholders of the parent company of 534 million yuan, and net cash flow from operating activities of 872 million yuan. As the core engine for the company's transformation and upgrading, the digital innovation business entered a steady development stage. In 2023, the digital innovation business achieved operating income of 8.348 billion yuan, accounting for 47.48% of the total revenue. iSoftStone actively rewarded shareholders. In 2023, it proposed a cash dividend of 1.8 yuan (tax included) for every 10 shares held, with a cash dividend ratio of 32.1% for 2023, and the cumulative cash dividend over the past three years accounted for 59.9% of the average net profit attributable to shareholders of the parent company. At the same time, the company's Q1 2024 report data showed a year-on-year growth of 29.65% in operating income, maintaining overall stability.

Liu Tianwen said, "The performance in 2023 fully demonstrates the company's outstanding strength and shows the long-term and stable development momentum created by the company based on the strategies of 'capability-driven, innovation-driven.' The company has launched four major business growth strategies based on 'intelligence, independence, green, and internationalization', actively improving multi-level business portfolios. On the basis of solid software and digital technology services, relying on Kunpeng/Ascend development computing and terminal hardware products, and deepening the layout of digital energy and intelligent computing services, we are creating a full-stack digital technology service model of 'service + software and hardware products + operation', continuously seizing market opportunities, and embracing a new wave of technological trends."

In addition, iSoftStone will actively expand domestic and foreign markets through strategic cooperation and mergers and acquisitions to continuously improve its market share and industry influence. In the first quarter of 2024, with the addition of iSoftStone Computing (Tongfang Computer) and Justone International (Tongfang International), the company will leverage synergies to launch more and better products and overall solutions for the enterprise market and consumer market. In terms of internationalization, the company is accelerating its layout in Southeast Asia and the Middle East markets, strengthening overseas delivery capabilities. In 2023, iSoftStone participated in multiple key industry summits in Southeast Asia and the Middle East, further connecting with overseas institutions and customers, and promoting the construction of overseas brands for relevant regional companies.

In terms of investor relations, iSoftStone will continue to maintain transparency and timeliness, strengthen communication with investors through various channels to ensure that shareholders fully understand the company's operating conditions and future plans, formulate reasonable and stable dividend policies, and actively create value for shareholders through high-quality development.

This performance briefing not only comprehensively summarized iSoftStone's achievements and milestones in the past year but also conveyed the company's firm confidence and relentless pursuit for the future to the outside world. In the face of increasingly fierce market competition, iSoftStone will continue to adhere to customer-centricity, strengthen capability-driven and innovation-driven approaches, and use digital technology products and services to help customers achieve greater business value. In the new journey ahead, iSoftStone will work with all partners to jointly embark on a brighter new chapter.

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