Today (March 24), Wisesoft Co.Ltd(002253) ( Wisesoft Co.Ltd(002253) , SZ) released the annual report for 2021. In 2021, Wisesoft Co.Ltd(002253) revenue was 301 million yuan, a year-on-year decrease of 15.67%, and the net profit attributable to shareholders of listed companies was 252092 million yuan, a year-on-year decrease of 62.59%.
The reporter of the daily economic news noted that Wisesoft Co.Ltd(002253) mainly attributed the decline in performance to the impact of covid-19 epidemic. In 2020, Wisesoft Co.Ltd(002253) achieved double growth in revenue and net profit, thanks to the fact that three new products such as face recognition software developed by the company contributed nearly 100 million yuan in the trial period. However, the good times are not long. In 2021, the revenue of Wisesoft Co.Ltd(002253) AI products and services decreased by 19.38% year-on-year.
the net profit fell below 30 million yuan for the first time in seven years
Wisesoft Co.Ltd(002253) handed over this 2021 report card is not good-looking.
In 2021, Wisesoft Co.Ltd(002253) revenue and net profit decreased, of which the net profit decreased by more than 60%, which was the first time that the net profit of the company fell below 30 million yuan in recent seven years.
For the reasons for the decline in performance, Wisesoft Co.Ltd(002253) said it was mainly affected by covid-19 epidemic.
On the one hand, the large-scale bidding originally scheduled by users in the reporting period was delayed, and the bidding of projects involving the company’s advantageous products in the field of air traffic control was delayed by nearly 100 million yuan, resulting in a decrease in the number of new contracts signed by the company in the reporting period and a corresponding decrease in the income recognized by stages of contract execution. In the fourth quarter with concentrated income, the region where the company is located is seriously affected by the epidemic, so it is impossible to arrange technicians to carry out acceptance at the customer’s site to realize income.
On the one hand, the company’s gross profit margin and other labor costs are increased, resulting in the extension of the project implementation cycle and the direct decline of other labor costs.
In terms of business, Wisesoft Co.Ltd(002253) mainly has two businesses. One is the aviation related business dominated by air traffic control, including civil aviation air traffic control products and services, on-the-job pilot flight simulator training business of airlines, military aviation air traffic control products and services, and military aviation combat simulation training products and services. The first three are Wisesoft Co.Ltd(002253) ‘s traditional advantageous businesses, and the fourth is its new businesses that began large-scale application in 2021.
In 2021, aviation related businesses also contributed more than 50% of the revenue to Wisesoft Co.Ltd(002253) and the operating revenue of this part was 158 million yuan, a year-on-year decrease of 17.69%. As early as 2020, Wisesoft Co.Ltd(002253) aviation related businesses began to show a decline, with a year-on-year decrease of 6.98% in 2020.
Covid-19 epidemic has a great impact on the aviation industry, not only Wisesoft Co.Ltd(002253) , but also the performance of many listed companies in the aviation industry chain in 2020 is not ideal.
AI product revenue decreased by 19% year on year
Despite the decline in aviation business revenue, Wisesoft Co.Ltd(002253) has achieved double growth in revenue and net profit in 2020, with a year-on-year increase of 4.33% and 30.17% respectively, which is mainly due to the progress of another new business of the company.
Wisesoft Co.Ltd(002253) ‘s new business is based on artificial intelligence, including aviation special speech recognition technology and product related business, high-speed and high-precision 3D measurement technology and 3D face recognition related business, extended reality and digital twin related business.
Wisesoft Co.Ltd(002253) said in the 2020 annual report that the company has begun to promote three new products such as high-precision 3D face camera and high-precision 3D face recognition software. The revenue increased by 740928 million yuan year-on-year, an increase of 336.17%.
However, the development of the company’s new business in 2021 is not smooth. The revenue of AI products and services was only 86.766 million yuan, a year-on-year decrease of 19.38%. The revenue of virtual reality and augmented reality products and services was 52.35 million yuan, a year-on-year decrease of 2.97%. In addition, the intangible assets formed by the company’s three-dimensional R & D investment in the early stage began to be amortized, and the increase of R & D expenses affected the profit of 130211 million yuan.
At the same time, the gross profit margin of new businesses also decreased significantly. The gross profit margin of artificial intelligence products and services decreased by 9.72 percentage points year-on-year, and the gross profit margin of virtual reality and augmented reality products and services decreased by 15.58 percentage points year-on-year.
After covid-19 epidemic, Wisesoft Co.Ltd(002253) had a “Scene” for a while by virtue of three-dimensional face recognition technology, which timely solved the problem that people wearing masks could not be recognized automatically. However, Wisesoft Co.Ltd(002253) also disclosed in the 2021 annual report that after more than two years of trial, the related products had the problems of high cost and price, large product volume and inconvenient calibration. The company also successfully developed two new three-dimensional measurement technologies and products with performance meeting the application requirements last year.
