Among the application software industry, the revenue of software products, which accounted for 31.7% of the industry, was CNY 1.54 trillion in 2016, up by 12.8% YOY, 0.9% higher compared to 2015. However, the growth rate was still 2.1% lower than the average industrial level. The information security products increased by 10.9%. The revenue of information technology services grew fast to CNY 2,511.4 billion in 2016, which took up 51.8% of the total revenue of the industry , up by 16% YOY, 1.1% higher than the average level. The embedded system software took up 16.5% of the revenue of the industry with an amount of CNY 799.7 billion, increasing by 15.5% YOY, 0.6% higher than the average.
In addition, the export of the application software industry developed in stability. In 2016, the export of Chinese software industry reached USD 51.9 billion, up by 5.8% YOY, 4.1% higher compare to 2015. The export of outsourcing services increased by 5%, reversing the downward trend since 2015; the export of embedded system software increased by 6%, falling by 3% compared to 2015.
According to this report, with the popularity of software application, more and more enterprises are confronted with informationization. However, the diversity and complexity of users' professions in China, increasingly complicates demands for software. In recent years, information technology represented by cloud computing and Internet of things has become new profit drivers and will provide a vast market space for future development.
In report, 50 application software enterprises listed in A-share market in China are analyzed.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders' equity.
- Earnings per Share
- Book Value per Share (BPS)
- Sales per Share (SPS)
- Net Cash Flow per Share from Operations
- Net Cash Flow per Share (CNY)
- Return on Net Worth
- Net Profit Margin on Total Assets
- Return on Invested Capital (ROIC) (%)
- Gross Profit Margin on Sales (%)
- Net Profit Margin on Sales (%)
- EBIT Margin (%)
- EBITDA Margin (%)
- Debt to Asset Ratio (%)
- Total Asset Turnover (times)
- Cash/Operating Income Received from Sales of Goods or Services
- YOY Growth Rate of Operating Revenue (%)
- YOY Growth Rate of Operating Profit (%)
- YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
2. Summary of Income Statement
- Gross Revenue (CNY, million)
- Total Operating Costs (CNY, million)
- Revenue (CNY, million)
- Operating Profit (CNY, million)
- Total Profit (CNY, million)
- Net Profit (CNY, million)
- Net Profit Attributable to Shareholders of Parent Company (CNY, million)
- Non-recurring Items (CNY, million)
- Net Profit Deducting Non-recurring Items (CNY, million)
- R&D Costs (CNY, million)
- Earnings Before Interest and Tax (EBIT) (CNY, million)
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)
3. Summary of Balance Sheet
- Liquid Asset (CNY, million)
- Fixed Asset (CNY, million)
- Long-term Equity Investment
- Total Assets (CNY, million)
- Liquid Liability (CNY, million)
- Non-current Liability (CNY, million)
- Total Liability (CNY, million)
- Capital Reserve (CNY, million)
- Surplus Reserve (CNY, million)
- Undistributed Profit (CNY, million)
- Shareholders' Equity (CNY, million)
- Equity Attributable to Shareholders of Parent Company (CNY, million)
4. Summary of Cash Flow Statement
- Cash Received from Sales of Goods and Services (CNY, million)
- Cash Flow from Operations (CNY, million)
- Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
- Cash Paid for Investments (CNY, million)
- Cash Flow from Investments (CNY, million)
- Cash Received from Investors (CNY, million)
- Cash Received from Borrowings (CNY, million)
- Cash Flow from Financing (CNY, million)
- Net Increase of Cash and Cash Equivalents (CNY, million)
- Cash and Cash Equivalents, End of Period (CNY, million)
- Depreciation and Amortization (CNY, million)
- Shenzhen Kingdom Sci-tech Co., Ltd. (600446.SH)
- China National Software & Service Co., Ltd. (600536.SH)
- Hundsun Technologies Inc. (600570.SH)
- Sunyard System Engineering Co., Ltd. (600571.SH)
- Yonyou Network Technology Co., Ltd. (600588.SH)
- Neusoft Corp. (600718.SH)
- PCI-Suntek Technology Co., Ltd. (600728.SH)
- Shanghai Baosight Software Co., Ltd. (600845.SH)
- Shanghai DZH Ltd. (601519.SH)
- Beijing Dahao Technology Corp., Ltd (603025.SH)
- Shanghai Weaver Network Co., Ltd. (603039.SH)
- Suzhou MedicalSystem Technology Co., Ltd. (603990.SH)
- Shanghai Baosight Software Co., Ltd. (900926.SH)
- Great Wall International ACG Co., Ltd. (000835.SZ)
- Fujian Newland Computer Co., Ltd. (000997.SZ)
- Ygsoft Inc. (002063.SZ)
- Beijing Shiji Information Technology Co., Ltd. (002153.SZ)
- Shanghai 2345 Network Holding Group Co., Ltd. (002195.SZ)
- Wisesoft Co., Ltd. (002253.SZ)
- Talkweb Information System Co., Ltd. (002261.SZ)
- Beijing Join-Cheer Software Co., Ltd. (002279.SZ)
- Henan splendor Science & Technology Co., Ltd. (002296.SZ)
- Hanwang Technology Co., Ltd. (002362.SZ)
- Glodon Co., Ltd. (002410.SZ)
- Fujian Rongji Software Co., Ltd. (002474.SZ)
- Beijing Transtrue Technology Inc. (002771.SZ)
- Sichuan Jiuyuan Yinhai Software Co., Ltd. (002777.SZ)
- Beijing Ultrapower Software Co., Ltd. (300002.SZ)
- Hithink RoyalFlush Information Network Co., Ltd. (300033.SZ)
- Beijing SuperMap Software Co., Ltd. (300036.SZ)
- YLZ Information Technology Co., Ltd. (300096.SZ)
- Wonders Information Co., Ltd. (300168.SZ)
- Tiznze Information Industry Inc. (300209.SZ)
- Beijing TRS Information Technology Co., Ltd. (300229.SZ)
- AVIT Ltd. (300264.SZ)
- Beijing Thunisoft Corp. Ltd. (300271.SZ)
- Beijing Philisense Technology Co., Ltd. (300287.SZ)
- Hakim Unique Internet Co., Ltd. (300300.SZ)
- Surfilter Network Technology Co., Ltd. (300311.SZ)
- Beijing Watertek Information Technology Co., Ltd. (300324.SZ)
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.