The company released its 2022 annual report, in line with expectations. In 2022, the company achieved operating income of 5.084 billion yuan, an increase of 11.13% over the previous year; achieved net profit of 191 million yuan, an increase of 15.34% over the previous year; and achieved net profit of 176 million yuan after deducting non-return to the mother, an increase of 1244.12% over the previous year. According to the 2022 annual report, the company's gross margin was 26.20%, an increase of 0.9 pct over 2021. The company's gross margin for the first three years all fell within the 25.15%-25.31% range. The rise in gross margin indicates that industry price competition is slowing down, and the company's operating quality has improved marginal.
The gross margin of CDN and edge computing services has increased, and the application of liquid cooling technology has been promoted. The company's CDN and edge computing business achieved annual revenue of 4.764 billion yuan, an increase of 11.04% over the previous year, with a gross margin of 26.49% (+1.17pct). The gross margin of the company's CDN business in 2019/2020/2021 was 24.91%/25.70%/25.32% respectively. At that time, Internet vendors used CDN as a strategy to enter the cloud market, and the price war in the company's CDN market was intense. The joint compression of the upstream and downstream ends put significant pressure on the gross margin of the company's CDN business. 2022 The rise in gross margin in the CDN business indicates that competition in the company's industry is slowing down, and market prices are gradually returning to a more rational path. The company's IDC and liquid cooling business achieved revenue of 263 million yuan, up 6.92% year on year, gross margin was 20.14%, down 4.78% year on year. The company provided IDC+ liquid cooling energy saving solutions and provided overall solutions for hosting space leasing, hosting bandwidth leasing, data center hosting services and enterprise-grade Internet communication. The subsidiary Green Cloud Map has reached strategic cooperation with Dell Technology Group. Its self-developed submersible liquid cooling technology can provide enterprises with customized solutions for liquid cooling data centers. Its customized liquid cooling solutions can provide customized solutions for various industries Liquid cooling solutions meet customized requirements such as high power cooling, high energy efficiency, extremely low noise, and product display.
AI drives growth in computing power and traffic demand, and edge computing power+IDC and liquid cooling+security create a powerful circle of capabilities. The company has been deeply involved in the CDN industry for many years, has served more than 3,000 medium and large customers, and has introduced acceleration and accelerated security solutions for the retail industry, gaming industry, e-commerce live streaming, integrated media, government affairs, etc. After years of deep industry cultivation, as a neutral CDN service provider, the company has accumulated large-scale management and technical service experience in terms of platform scale, scheduling capabilities, and video and web page optimization. Edge platforms in the AI era will become an important vehicle for the completion of AI inference tasks. At the same time, the emergence of a new generation of general-purpose computing technology and killer applications will change the current Internet paradigm and drive Internet traffic once again into a rapid growth trajectory. The company is moving into the edge computing era, gradually upgrading CDN nodes to edge computing nodes with storage, computing, transmission, and security functions. At the same time, it provides customers with full-stack security services including infrastructure and application protection and enterprise security access on the edge computing platform. Multiple capability building will once again lead the company's industry development in the AI era.