Financial Services Association, April 8 (Reporter Wu Xin) As a holding subsidiary of Radio and Television Express, Zhongke Jiangnan (301153.SZ) also shared a share of the digital factor market construction in the past year. In particular, as digital assets were listed, investors' enthusiasm for it increased, and questions were frequently asked at today's performance briefing.

Luo Panfeng, chairman of the company, said at the performance conference that the company is continuously exploring data element circulation applications, including “data entry,” and will test and practice related businesses based on the company's actual situation.

Regarding the market share situation of the company's various businesses, Zhongke Jiangnan responded: Currently, there is no authoritative data on the market, but according to statistics from Zhongke Jiangnan, its electronic payment products and services have covered 33 provincial, 455 prefecture-level and city-level financial units; integrated budget management has participated in benchmarking and upgrading work in 12 provinces; and the accounting cloud platform has covered more than 170,000 budget units. According to information, the electronic payment business and the integrated budget management business have formed the basic market of Zhongke Jiangnan.

In addition to accounting data elements, Zhongke Jiangnan is also exploring the economic benefits brought by digital elements of health insurance. The Financial Services Association reporter learned from the results meeting that the digitalization of its new business industry “has already produced economies of scale.” Among them, the National Health Insurance Administration's electronic bill application blockchain platform and electronic bill sharing project have completed the construction of the National Administration's main node and 28 sub-nodes, and nearly 3,000 medical institutions have been launched.

Financial reports show that the electronic business of the industry currently accounts for a relatively low share of the total revenue of Zhongke Jiangnan, at only 4.47%, but the revenue growth rate in 2023 was significant, 126.19%.

In addition, investors are more concerned about the impact of share payment fees on Zhongke Jiangnan's net profit in 2023. “Although share payment fees had an impact on the 2023 apparent profit index, and related expenses offset the increase in net profit to a certain extent, the company's actual operating level and profitability were not affected. Stock payments will be accrued throughout 2024.” Luo Panfeng said in response at the performance meeting.

The reporter learned that in 2023, Zhongke Jiangnan achieved net profit of 289 million yuan after deducting from mother, an increase of 19.49% over the same period last year. Excluding the impact of share payment fees, net profit after deduction was 346 million yuan, an increase of 43.27% over the previous year.

Notably, the company was questioned by investors due to the 6.62 percentage point increase in accounts receivable as a share of total assets at the end of 2023. The company said that in order to reduce the risk of accounts receivable and avoid the concentration of businesses in a certain region or business, it will enhance business diversity, and has now expanded business areas such as medical insurance and electronic billing. Furthermore, the company will reduce operating costs, increase repayment of accounts receivable, and avoid the risk of bad debts as much as possible.