Wondershare Technology Group Co.Ltd(300624) recently released a performance forecast. It is estimated that the net profit attributable to shareholders of Listed Companies in 2021 will be 18 million yuan to 26 million yuan, a year-on-year decrease of 79.24% to 85.63%. This performance change is mainly due to the company’s increased R & D and SaaS transformation and upgrading.
According to the announcement, the R & D expenses of Wondershare Technology Group Co.Ltd(300624) in 2021 increased by about 50% over the same period of last year. During the reporting period, Wondershare Technology Group Co.Ltd(300624) increased investment in technology R & D, vigorously introduced high-quality elite technical talents, continuously increased the optimization of original products and the development of new products and technologies, strengthened the construction and application of video creative algorithm ability, AI basic ability, virtual digital human and virtual scene, completed the product implementation of a new generation of video technology engine Wes, and enhanced product strength. In addition, the company has invested large R & D resources to build and upgrade subscription order management, transaction payment platform and customer operation platform.
Continuous investment in elite technical talents, algorithms, subscription order management, etc., and actively support Wondershare Technology Group Co.Ltd(300624) SaaS upgrading. According to its 2021 semi annual report, Wondershare Technology Group Co.Ltd(300624) redefined “user-centered” with subscription mode, and made breakthroughs in several key indicators of subscription transformation. The annual performance forecast shows that due to the company’s rapid promotion of subscription transformation and upgrading, the proportion of subscription orders in the total orders continues to increase rapidly.
SaaS transformation will bring long-term benefits to business development, but in the early stage of transformation, it is often faced with the pain of the current decline in user unit price, which is regarded as a strategic measure for enterprises to exchange short-term profits for long-term development. The performance forecast shows that the average unit price of orders has decreased to a certain extent due to the fact that the subscription sales price is much lower than the software license sales price, which has an adverse impact on the operating revenue. In addition, multiple external factors such as the continuous global epidemic, the overall year-on-year decline in external market traffic and the appreciation of the RMB also affect the growth rate of the company’s performance.
It is worth noting that Wondershare Technology Group Co.Ltd(300624) is continuing to cultivate the field of digital creative software, paying more attention to and exploring the trend of the new era of the meta universe, adding code to enable the creator economy in terms of products, technology, resources and industrial ecology, and actively supporting the long-term development of the company. In terms of industrial ecology, Wondershare Technology Group Co.Ltd(300624) was recently invited to become a member of the yuan universe Industry Committee of China Mobile Communications Federation, which will work with industry colleagues to promote the development of China’s yuan universe industry. In January this year, the company, together with Tencent, Alibaba, byte beat and other enterprises, was rated as an outstanding enterprise in the construction of “meta universe”, and was selected into the list of top ten enterprises that change people’s living habits in 2021 released by Internet Weekly, net Research Institute and Deben consulting.
