Researcher|Wang Sixue Editor|Guo Jiangxi
Generally speaking, the management expenses of listed companies include salary and welfare expenses of managers, company-level depreciation expenses, repair costs, technology transfer fees, amortization expenses of intangible assets and deferred assets, and other management expenses (office expenses, travel expenses, labor insurance expenses, land use tax, etc.).
In 2022, 331 listed companies in the A-share computer industry (Shenwan primary industry) achieved a total management fee of more than 59.862 billion yuan.
Among them, the 10 companies with the highest management expenses are Hikvision (2.642 billion yuan), Nasda (2.048 billion yuan), iSoftStone (1.459 billion yuan), Tongfang (1.273 billion yuan), Guanglianda (1.229 billion yuan), iFLYTEK (1.227 billion yuan), Dahua (1.144 billion yuan), Yonyou Network (1.117 billion yuan), Aerospace Information (1.037 billion yuan), Unigroup (964 million yuan).
Not all of these companies have led to an increase in overhead. There are 4 companies with negative growth rate of net profit attributable to parents in 2022, namely Hikvision, iFLYTEK, Dahua and Yonyou Network.
The selection was further expanded, and 201 of the 331 target companies in the computer industry had a negative growth rate in net profit attributable to the parent in the year, accounting for more than 60% of the total total.
If companies with management expenses of more than RMB500 million and negative net profit growth rates in the current year are ranked by the growth rate of management expenses, Beyondsoft and Hang Seng Electronics are far ahead, surpassing Hikvision and the rest of the companies by 41.2% and 27.7%.
If the management fee increases, it will lead to a decrease in the company's net profit, which will affect the company's ownership equity. This implies that these companies need to control their overheads more effectively to improve their net profit and operating performance.
Combined with the performance of the above companies in the first quarter of 2023, we believe that the management performance of five companies, Hikvision, iFLYTEK, Dahua, Yonyou Network and Beyondsoft, is worthy of attention.
1
Hikvision has the highest management costs
Among the companies with the highest management expenses in the computer industry, Hikvision had the highest annual management expenses in 2022, reaching 2.642 billion yuan, an increase of 24%.
According to the company, the significant increase in management expenses was commensurate with the expansion of the company's business scale and the growth of personnel.
In 2022, Hikvision's net profit fell by 23.59% to only 12.837 billion yuan, which is not yet the level of 2020.
This also means that the expansion of the scale of the business does not give the company good feedback on the level of performance. Hikvision did not elaborate on the proportion of employee compensation in administrative expenses and the contribution of this increase to the overall increase in administrative expenses. In fact, completely conflating employee compensation with "management expenses" makes it impossible to judge the true "management performance".
From the data point of view, the company's employee compensation in the current period did show a relatively obvious increase. In the first quarter of this year, the company's performance continued to decline sharply, with a growth rate of -21.69%.
Hikvision has been affected by the "sanctions" trapped by the United States in recent years, and in 2019, the US government included Chinese companies such as Hikvision in the "Entity List"; On March 28, 2023, the U.S. Department of Commerce added five more Chinese entities to its trade blacklist, the vast majority of which are subsidiaries of Hikvision.
While the company's main business is restricted, Hikvision strives to promote its "1+N" spin-off and listing plan. Among them, Fluorite Network has landed on the Science and Technology Innovation Board on December 28, 2022, and the IPO of Hikrobot ChiNext has entered the stage of brokerage counseling.
2
iFLYTEK's performance deteriorated further
In 2022, iFLYTEK only created a net profit of RMB561 million with management expenses of RMB1.227 billion, a year-on-year decrease of 63.94%.
While the net profit declined, the management fee increased by 11.35%, and the company did not explain the reason for the increase in management expenses.
Specifically, it is mainly due to the increase in employee compensation and outsourcing service fees. Among them, Chairman Liu Qingfeng took into account the company's development stage, in order to reward outstanding employees, took the initiative to reduce the salary of the year, and actually received 3.9 million yuan in 2022.
In the first quarter of 2023, iFLYTEK's performance further declined, achieving operating income of 2.888 billion yuan, a year-on-year decrease of 17.64%; Net profit attributable to owners was -580 million yuan, down 152.26% from the same period last year.
iFLYTEK said that the loss was due to the special socio-economic objective environment in December last year and January this year, which was unable to promote the project process and contract signing in the current period, and then faced the Spring Festival holiday, and the work process of signing, implementation, delivery, and acceptance of many large projects in the first quarter was delayed, which affected the progress of revenue realization.
On May 6, iFLYTEK released the "Spark Cognitive Big Model", but then fell into the "shell GPT" rumor; Recently, a user of Baidu AI Wen Xin wrote an article using AI saying that iFLYTEK was exposed to be suspected of collecting a large amount of user privacy data and using it for artificial intelligence research, which caused the stock price of iFLYTEK to plummet. In this regard, iFLYTEK said that the rumors were untrue.
3
Dahua's annual performance fell sharply, senior management positions were adjusted, and Q1 this year recovered
Last year, the performance of the security duo in 2022 was not satisfactory. In 2022, Hikvision will increase revenue without increasing profits; In 2022, Dahua Co., Ltd. achieved a revenue of 30.565 billion yuan, down 6.91% year-on-year, and a net profit of 2.262 billion yuan, down 33.70% year-on-year.
During the same period, management expenses increased by 19.78% to RMB1,144 million. The reasons for the increase in management expenses were not disclosed in the annual report, and the statement showed that the increase in the company's management expenses was mainly in labor costs, depreciation expenses and amortization of assets, and administrative office expenses.
In December 2022, Zhang Xingming of Dahua resigned as executive president and Jiang Xiaolai resigned as senior vice president, they will no longer hold any position in Dahua, and will serve as chairman and president of Dahua Rui Technology, a subsidiary of Dahua, and executive director of Hua Sense Technology, respectively. At the same time, Zhao Yuning, former senior vice president of Dahua and president of overseas marketing center, succeeded Zhang Xingming as the company's executive president.
In the first quarter of this year, Dahua's financial position improved, with revenue up 2.87% year-on-year to RMB6.016 billion and net profit up 43.20% to RMB493 million.
4
Yonyou Network suffered the largest loss in a single quarter
Although Yonyou Network's net profit decreased very significantly in 2022, reaching -69.03%, the company's management expenses still increased by 4.29%.
In the first quarter of this year, Yonyou's profit situation that Yonyou Network barely maintained last year was broken, with a loss of 397 million yuan and a non-net profit loss of 496 million yuan, the largest quarterly loss since its listing in May 2001.
During the same period, Yonyou Network's revenue increased by 15.3% year-on-year to 1.475 billion yuan.
In response to our questions, Yonyou emphasized that the management expenses in the first quarter of 2023 increased by 3.01% year-on-year, and the growth rate was low, which had little impact on the decline in the company's net profit.
Yonyou Network said that although the company's continuous strategic investment has a certain impact on the current profit performance, especially the R&D investment has a certain lag in the release of performance, the comprehensive innovation breakthrough of the company's products, the optimization of the company's personnel structure and the introduction of senior talents have laid a key foundation for the future growth of the company's performance.
In the 2022 annual report and the 2023 first quarter report, Yonyou Network explained the reasons for the decline in net profit that in order to seize the historical development opportunities of enterprise digital intelligence and information innovation, the company is strategically oriented, continues to firmly and actively increase investment in research and development, strategically optimizes the personnel structure, and continues to accelerate the introduction of senior talents.
5
Beyondsoft had the highest growth rate in management expenses
Beyondsoft is a leading software and information technology service provider in China, covering products and solutions, R&D engineering and IT operations and maintenance.
In 2022, the company's annual operating income in 2022 will be 6.479 billion yuan, a year-on-year increase of 17.11%; The net profit attributable to the parent was 309 million yuan, down 23.45% from the same period last year.
Surprisingly, Beyondsoft's management expenses increased by 200 million yuan, an increase of 41.2%, much higher than the growth rate of operating income and net profit, and the increase in management expenses accounted for 2/3 of the annual profit.
According to the company, this was mainly due to increased management investment in business expansion and the implementation of equity incentive plans this year.
It is obvious from the above figure that in 2022, the company will comprehensively increase employee compensation, travel and transportation, intermediary service fees and equity incentive expenses.
Produced by Rui Lan Caixun
The article is for reference only The market is risky and investment needs to be cautious
Source: Rui Lan Capital (ID: realan808)