Yusys Technologies Co.Ltd(300674) : 2022-002 Yusys Technologies Co.Ltd(300674) : record of investor relations activities

Investor relations activity record table 1 securities code: 300674 securities abbreviation: Yusys Technologies Co.Ltd(300674) Yusys Technologies Co.Ltd(300674) Investor relations activity record No.: 2022-002 investor relations activity category □ specific object research □ analyst meeting □ media interview □ performance briefing □ press conference □ roadshow activity □ on-site visit \uf0fe name of other participating units and personnel organization name participant organization name participant Tianfeng Securities Co.Ltd(601162) Miao Xinjun Zhongtai Securities Co.Ltd(600918) Institute scholar Tianfeng Securities Co.Ltd(601162) Wang Qianwen Zhongtai Securities Co.Ltd(600918) Research Institute Liu Yizhe Tianfeng Securities Co.Ltd(601162) Chen Yijiao Xingquan fund Huang Linwei Tianfeng Securities Co.Ltd(601162) Zhang ruofen Xingquan fund sun ruowei Tianfeng Securities Co.Ltd(601162) Zhang Yifan bocom Schroeder Wei Yumin Tianfeng Securities Co.Ltd(601162) Li Puyu Fuguo fund Lin Haoxiang Tianfeng Securities Co.Ltd(601162) Wen canxi Boshi fund Wang Zengcai Penghua Fund Xu Liheng noan fund Ge Jianan Penghua Fund Wang Shiqian Zhongrong trust Zhao Xiaoyuan Penghua Fund Dong Wei Zhongjin fund Hou Mingwei Penghua Fund Wang Zhifei Morgan Huaxin Xue Yipin Fuguo fund Sun Quan Jianxin wealth management Wang Jingchen Yinhua Fund sun Haoyang Jianxin fund Xu Jie Yinhua Fund Guo Sijie Junfeng assets Liu Ting Zhongzhu venture capital Cheng cangxing bank financial management Xu JUANJUAN CITIC asset management Guo Yu Xincheng life insurance asset management Jin Wei China Securities Co.Ltd(601066) Self operated Yang Ruiqi Xincheng fund Wang yingzhongrui Heyin Dong Jianan Western profit fund Hou Wensheng Zhongfu investment management Jingxin Western profit fund Wen Zhenyu Zhengyi assets Wu Shuxi Western profit fund Liu huizhenke fund Zeng technology everyone’s assets Zhang Meng Zhaoyin international Gong Yiyi everyone’s assets Li Yuanlong Yuxiu capital Feng Jiebo Yuanwang corner investment Zhai Hao invested by Rong Zhao Weiyuan Zihu Yanan Yixu invests Bi Qilin Yuancheng invests Su Liuzhu China Industrial Securities Co.Ltd(601377) Ziguan Wang Zhengyuan invests Tang Yadan Industrial Bank Co.Ltd(601166) Ziguan Jiang Yaokun invests Zheng Xiaoming Xinghua fund Gao Weixuan Yimi fund Sun Foundation dongxintai life insurance Liu Yue The Pacific Securities Co.Ltd(601099) Insurance Wang Jing investor relations activity record table 2 Xinhua assets Zhu Zhanyu Taiping fund Wei Zhiyu asked about investment Wang Haoshen wanlingxin fund Zhang Jintao Tongyuan investment Gu Xi Shanghai Yingshui investment Lin xintianhong fund Zhang Lei PICC assets Li Zheng snow Po Hong Chuansong Pu Yin Ansheng Chu Yanhui capital securities self operated Wang xiansen Ping An assets Zhang Liang Shanghai Dingfeng Zhang Haifeng Ping An pension Chen Xushan Sanxi capital Zeng Fengwen Minsheng plus silver fund Xiao Zhiwei Qingdao PENGYUAN Qin Jianli Jiupeng investment Dou Jinhu Qianhe capital Sun Ke Jiutai fund Deng Mao Ping An fund Zhai Sen evolution assets Wang Zhongsheng Panjing investment Wang Zhen Jin Yuanshun an Zhang bonuoding assets Zeng Xianzhao Jinyou Chuangzhi Shi Xiantao Mingtai assets Liu Chongcai Jinying fund Jiang Binyu Mingda assets Li Taojin Guangzi Yan weiminsen invests in Ding fanlun, Jiangsu Ruihua, Zhang Haifeng, Liuhe invests in you Xiaohui, Huatai birui, Lu Congzhen, Huarong securities, Zheng Yingliang, youhuabao fund, Zhongzhong assets, Pang Xinghua Hongdao investment, Zhuang Zichao, capital, Li Ang, Zhongzhong assets, Zhao Jingmeng Haifutong fund, self operated by Chenyang Haitong, Wei Shugen, Cathay Pacific Investment letter, Albert Cheng Haichen invests in Peng Yaomin, Guohua life, an Zichao Guoshou security fund Zhang fanguohai Franklin Zhang Zhiqiang Guangzhou financial holding Huang Yongguo transfer fund Jia qiuran Guangfa self operated Yang Xiaolin Genxi assets Zhu Dengke Everbright Prudential fund Lin Xiaofeng Gaoyi assets Xie Pengyu Everbright Prudential fund Chou Kailiang Gaoyi assets Lu Yifu anda investment an Junjie Oriental alpha fund Chen Weiwen Dongwu fund Hu qicong bairongyun IR Nataly Oriental self Zhang Kaiyuan Anxin fund sun Linghao Dingtian invested Zhang Huaian PAG Deng enqi Bodao fund Gao Xiaoxiao New Silk Road Feng Xin Zhongyi assets Zang Yi and other participants, totaling 70 people. Time: 16:00-17:00, January 13, 2022 place and form: 16:00-17:00, January 14, 2022 Beijing; Name of receptionists of listed companies for teleconference Mr. Dai Shiping, director, chief financial officer and Secretary of the board of directors Ms. Zhou fan, chief securities officer record of investor relations activities 3 main contents of investor relations activities introduction to the exchange activities: 1 How is the growth rate of financial information innovation business expected this year, and how is the rhythm of overall implementation? A: the company has long participated in the polishing process of financial information innovation demonstration projects and related products with big banks. In this process, it has accumulated corresponding capabilities with customers in all aspects, including the company’s own products. These projects are not limited to peripheral projects, but have also been carried out on core systems and large-scale core projects. The whole process of promoting Xinchuang’s business is also the company’s continuous communication and iteration with customers. Based on Xinchuang’s new hardware system, products, including data products, credit products, regulatory products and channel products, are upgraded and replaced by means of cloud and database, realizing the all-round delivery of a large bank. Small and medium-sized banks will face more challenges in this regard. On the one hand, small and medium-sized banks’ own scientific and technological capabilities, on the other hand, financial technology suppliers provide services to customers. In this process, financial technology suppliers are not only facing problems, but also opportunities and challenges. 2. In the process of Xinchuang project, we will cooperate with the underlying hardware manufacturers. Is there a large amount of transformation of relevant codes for software manufacturers? A: from the project case of a large bank, this workload is still large, exceeding our initial expectation, and the subsequent investment is far beyond the project planning. However, after the first project, the subsequent projects are very smooth, because we have accumulated experience in product and subsequent delivery, and the profit margin has been gradually reflected. For the company, through the cooperation opportunities with Dahang and open platforms, as well as our own product accumulation and R & D capabilities, the company can seize relevant business opportunities, Therefore, the subsequent overall profit situation and project implementation will also be optimistic. 3. What is the difference between the company’s share in the credit innovation cooperation project and the traditional project? A: in terms of the cooperation profit margin of the credit innovation project, it needs to be divided into several types of projects. At present, the projects with large volume are still integration and agency projects, which are less different from the previous projects in the record table 4 of the company’s integrated investor relations activities, and the profit margin is relatively stable; Software products of integration projects with base partners, such as databases and cloud management platforms, will involve heavy workload of secondary development or application system level migration. In this process, as an integrator of the project, it is necessary to purchase databases and cloud management platforms of Huawei and other partners, with a lower comprehensive gross profit margin, Because the project involves a new system and is also a learning process, but for the company, most of these projects have continuity. The contract amount of subsequent projects generally remains unchanged or the contract amount is larger, but it is basically the contract amount of the company. Because the product maintenance fee of hardware manufacturers in the second year is relatively limited, the comprehensive gross profit margin of subsequent project companies will be higher. In conclusion, in the short term, the company will pay attention to the business opportunities of Xinchuang and the products and technical capabilities accumulated in this process. In the long term, these accumulated capabilities and products enable the company to obtain sustainable business opportunities, and the comprehensive gross profit margin will gradually increase.

4. In terms of digital RMB, whether the company’s participation mode and impact on the company may bring changes in its business model, and whether the cooperation with the six major banks will enable the company to obtain certain advantages a: we divide digital RMB into four links, the first is the issuance link, which is in the charge of the central bank, and the second is the operation of digital RMB, including nine institutions including large state-owned banks, The third is cooperative operation institutions, commercial banks and non bank payment institutions, and the fourth is consumption. Yusys Technologies Co.Ltd(300674) is positioned as an application software developer, so it has participated in the second, third and fourth links in the past two or three years, especially in the second and third links. In the second link, we have deep cooperation with several major banks as digital RMB operators. It includes all-round cooperation between the front desk (Digital RMB APP), the middle desk (front-end system, user center, service center and management center) and the back office (Accounting and clearing). In the third link, we have cooperated with a number of small and medium-sized banks on the 5 Scene merchant side of the docking operation organization and investor relations activity record table, including payment side (such as personal card binding, redemption and Redemption), scene side (individual and corporate), payment and clearing. Cooperation with non operating banks is usually divided into several stages: A. complete the docking of digital RMB payment channels to realize the redemption, redemption and basic functions of personal and corporate businesses; B. Realize the relevant signing, query management and other functions of portals such as mobile phones and counters, and improve the overall experience; C. From the portal, merchants and users can fully experience the convenience and consumption of digital RMB; In the fourth link, we connect with the bank ecological partners at the scene end through the bank end to support the use of digital RMB. In terms of the possibility of changes in business model, financial IT system suppliers mainly need system transformation, which will be gradually released in the next three to five years. For financial IT manufacturers, the current digital RMB is mainly in the payment and consumption scenario; The need for the transformation of the background system is not very large. Of course, as the digital RMB gradually enters the circulation link, the demand for multiple application scenarios such as credit, supervision, data and channels will gradually appear. At that time, the demand for system transformation and upgrading will increase, and it is not ruled out that some new business models will appear. 5. What competitive advantages does the company have compared with companies in the same industry? A: the company has the following advantages: first, the company has a comprehensive product line. At present, the company has four main product lines and other product lines. These four major product lines are formed through years of development and accumulation, and the impact of order fluctuation of individual product lines can be mitigated through the model of multiple product lines; Second, the customer structure is balanced and will not be affected by the business changes of a single category of customers; Third, R & D investment continues to increase. Over the past years, the company has adhered to high growth R & D investment to provide good support for technology accumulation and product accumulation; Fourth, the management efficiency continues to improve. While ensuring business growth, the company attaches importance to improving management efficiency and driving the improvement of human efficiency, and can lead the development of the industry in combination with the potential of product excellence, investor relations activity record table 6 and customer resource advantages. 6. What is the source of confidence that the company’s profit growth rate is higher than the revenue growth rate? What is the judgment on the employment situation of the industry in 2022? A: combined with the performance of the company’s listing for three years, the profit growth rate has always been higher than the revenue growth, which is the result of the company’s active management and fine operation to ensure qualitative growth and human efficiency improvement; It is also based on the technology and product capabilities accumulated by the company in the industry for more than 20 years. Over the years, the annual personnel growth in the industry has been the norm. The company has also been focusing on improving human efficiency and gradually reducing the single dependence on the growth of the number of employees. In addition, the company’s efforts in product and R & D will also reduce the impact caused by labor fluctuations. 7. How to understand the incremental part brought by the industry’s credit creation compared with the previous business a: at present, credit creation is more inclined to the transformation of the original system. For example, a credit creation project is based on the distributed architecture, the technical complexity is much higher than the traditional credit business, and the product itself also needs to be reconstructed. Therefore, the project complexity increases and the requirements for technology also increase, The contract amount also increases accordingly. In the long run, the complexity of Xinchuang project and high technical requirements will improve the concentration of the whole industry to a certain extent, and the business opportunities tend to focus on the leading manufacturers. 8. How long is the implementation and delivery cycle of the credit product line? What year is the order revenue recognized? A: for the credit product line, under the distributed architecture superimposed micro service system, the scale and complexity of the project increase. Such projects generally take about 18 months from input to acceptance. Therefore, the order revenue in the second half of 2021 cannot be recognized in that year. On the whole, the revenue tends to be confirmed later. The growth of the company’s order amount also far exceeds the growth of the number of orders, and the growth of order amount is more obvious. 9. In history, the company established credit, data and other product lines through acquisition. Is there any prospect of acquiring other product lines after that? Record of investor relations activities 7 answer: Yusys Technologies Co.Ltd(300674) in the past, in the process of cooperation with major customers, the company was exposed to a lot of systems, so there was still a lot of accumulation at the business level, After the acquisition of Beijing Yichu in 2007, the credit product line has injected the previous capacity accumulation, cooperated with major cooperative banks on this basis, reconstructed the technical structure, and gained the upper hand in the development process of more than ten years. These multi-level efforts and practices have made the company occupy the first place in the field of credit products in the past few years. In terms of acquisitions and mergers, the company has done a lot in the past and fully has the ability in this regard. In the future, it will also consider relevant opportunities in the market to expand products and markets in China or abroad. 10. The market share of the company’s financial cloud business has ranked first, specifically what services to provide and what are the future development ideas a: according to the report on China’s financial cloud market (first half of 2021) tracking released by International Data Corporation (IDC), in the field of financial cloud, the company’s financial cloud continues to rank first in the market share of China’s financial cloud (application) solutions. Since 2019, the company’s financial cloud business has ranked first for three consecutive years by virtue of its advantages, and has attracted more and more attention in the market. Relying on the company’s accumulation at the cloud level in the past ten years, it has relevant products, services and solutions. Whether it is the construction of data center, project consultation, solution and subsequent operation and maintenance, it has very strong ability. Since 2007, the company is also the first manufacturer in the industry to provide financial cloud services to small and medium-sized banks, and it is also the largest company so far. In the past two years, with Baidu’s strategic stake, both sides

- Advertisment -