The company released the interim report of 2021: during the reporting period, the operating income was 1.753 billion yuan, an increase of 120.52% over the same period last year; the net profit was 27 million yuan, compared with a loss of 213 million yuan in the same period last year.
Comment
There has been a sharp increase in revenue and profits have been turned into profits. During the reporting period, the company achieved operating income of 1.753 billion yuan, an increase of 120.52% over the same period last year, an increase of 53.37% over the same period in 2019. The net profit of returning to the mother was 27 million yuan and deducting 13 million yuan of non-net profit, which was close to the upper limit of the previous performance forecast. In terms of business, the revenue of smart medical and health business reached 780 million yuan, up 88.02% over the same period last year; the revenue of intelligent government affairs reached 742 million yuan, an increase of 175.84% over the same period last year; and revenue from Internet services reached 230 million yuan, an increase of 107.29% over the same period last year.
The improvement in the company's performance is mainly due to the substantial growth in various businesses and the improvement in the level of gross profit margin.
Cost control has achieved remarkable results, and investment in R & D has continued to increase. During the reporting period, the expense rate during the company period decreased by 12.44pct to 19.85%, and the effect of cost control was remarkable. Among them, the sales expense rate was 3.54%, down 3.09 pct from the same period last year; the management expense rate was 13.31%, down 4.90 pct from the same period last year; and the financial expense rate was 3.01%, down 4.45pct from the same period last year. The company continues to increase investment in research and development, to meet the needs of different segments of various industries for in-depth adaptation and optimization of customized services. 2021H1, the company invested 154 million yuan in R & D, an increase of 26.00% over the same period last year.
The 3 billion fixed increase plan will be launched to further consolidate the business advantages. The company previously announced a new fixed increase plan, it plans to raise 1.014 billion yuan for the future public health and medical innovation management service project, 890 million yuan for the future urban wisdom service platform project, 200 million yuan for the expansion of enterprise human resources digital platform project, and 8.96 yuan for repayment of bank loans and improvement of capital structure. Most of the funds raised are invested in the company's traditional medical IT and Smart City track, which will help the company to further consolidate its business advantages.
Profit forecast: the company is expected to achieve a net profit of 1.02 billion yuan in 2021-2023, covering the "prudent overweight" rating for the first time.
Risk tips: medical and government information business progress is slow; Bull health management business is not as expected; industry competition intensifies.
