On the evening of April 8, Jiadu Technology (600728. SH) announced its 2023 annual results. During the reporting period, the company achieved operating income of 6.228 billion yuan, a year-on-year increase of 16.7%, and the net profit attributable to the parent company was 395 million yuan, a year-on-year turnaround.
Judging from the published data, Jiadu Technology has handed over a good report card, but Titanium Media APP noticed that the main reason for the company's turnaround is the rise in the market value of the company's strategic investment in artificial intelligence listed companies, resulting in a non-recurring profit and loss of 331 million yuan. Aside from the income from stock speculation, Jiadu Technology's non-net profit for the whole year of 2023 will be -33.5583 million yuan, which is in a state of loss.
In the secondary market, as of the close of trading on April 9, the company's share price closed at 5.02 yuan, an increase of 2.87%, and the current total market value is 10.77 billion yuan.
Stock trading earnings have become a barometer of the company's performance
After combing the titanium media APP, it was found that the artificial intelligence listed company invested by Jiadu Technology is Yuncong Technology (688327.SH), and as of the end of December 2023, the company still holds 48.056 million shares of Yuncong Technology, with a shareholding ratio of 4.63%.
From January to March 2023, benefiting from the explosion of the AI concept, the share price of Yuncong Technology rushed from 10.91 yuan at the beginning of the year to 33.81 yuan on March 31, bringing Jiadu Technology a fair value change income of 1.337 billion yuan (after tax), driving the company's net profit attributable to the parent company to soar 35 times year-on-year. With the correction of Yuncong Technology's share price, in the second quarter of 2023, the company's share price fell from a high of 44.14 yuan to 17.3 yuan, resulting in a huge loss in Jiadu Technology's net profit in Q2, with a loss of 985 million yuan.
In Q3, the share price of Yuncong Technology fell further to 14.74 yuan, and Jiadu Technology continued to lose money, and its net profit attributable to the parent company was -181 million yuan. In the fourth quarter, the share price of Yuncong Technology rebounded, and finally closed at 16.86 yuan at the end of the year, and Jiadu Technology was able to turn losses into profits in the quarter, with a net profit of 212 million yuan attributable to the parent company. It can be seen that the income from stock speculation has become a barometer of Jiadu Technology's performance.
Aside from the income from stock speculation, Jiadu Technology's non-net profit from Q1 to Q4 in 2023 will be 7.7759 million yuan, -51.5963 million yuan, -79.1062 million yuan, and 89.3683 million yuan respectively, of which the company is in a state of loss in Q2 and Q3.
Titanium Media APP noticed that on the day of the issuance of the annual report, the company's management also had major adjustments, involving three positions: chief financial officer, secretary of the board of directors, and supervisor. Among them, Chen Huijun, the chief financial officer, resigned due to the adjustment of work responsibilities and was replaced by Ms. Mo Xiuchun until the end of the term of the 10th board of directors; Zhao Jie, secretary of the board of directors, resigned due to personal reasons and was replaced by Zhou Zhesi; He Yuejiao resigned as a supervisor, and Huang Haiming was nominated as a candidate for supervisor.
What is the business quality of the traffic model?
According to public information, Jiadu Technology is mainly engaged in intelligent security, intelligent rail transit, communication value-added, etc., and its main products and services are smart city solutions, intelligent rail transit solutions, ICT products and service solutions, industry intelligent products and operation services.
It should be noted that in 2023, AIGC technology, represented by large models, is disrupting the entire AI industry. Google, OpenAI, Microsoft, NVIDIA, Meta and other large technology companies have led the early technology exploration, while domestic artificial intelligence manufacturers have been catching up in the past year.
The company also mentioned in the 2023 annual report that at present, the Jiadu Zhixing transportation model has been deployed in Guangzhou Metro, Changsha Metro, Guangzhou Traffic Police and other application pilots, and the application of the large model will be gradually launched in the future. So what is the real situation of the smart product and operation service business related to this model?
In 2023, the revenue of Jiadu Technology's three major businesses, namely industry intelligent products and operation services, industry intelligent solutions, and ICT products and service solutions, will all grow to varying degrees. During the reporting period, the above products achieved revenue of 301 million yuan, 2.335 billion yuan and 3.589 billion yuan respectively, an increase of 11.55%, 16.56% and 17.36% year-on-year respectively. It can be seen that the company's industry intelligent products and operation services business not only has the smallest revenue scale, but also has the lowest revenue growth rate.
Although the revenue scale of intelligent products and operation services in the industry is the smallest, the gross profit margin of this product is the highest. In 2023, the gross profit margin of industry intelligent products and operation services will reach 51.6%, but compared with 68.6% in the previous year, it will decrease by 17 percentage points. The company explained that the decline in gross profit margin was mainly due to the difference in the proportion of software and hardware of the products involved in the delivery of projects in different years.
The gross profit margins of the company's industry intelligent solutions and ICT products and service solutions were 17.46% and 6.24% respectively. It can be seen that the ICT products and service solutions business, as the main force of the company's revenue, has the lowest gross profit margin.
Not only that, the overall gross profit margin of Jiadu Technology has always been lower than the average of its peers. In 2023, the company's gross profit margin will be 12.64%, an increase of 0.24 percentage points from the previous year. Compared with peers, from 2019 to 2021, the gross profit margins of Jiadu Technology were 13.35%, 33.47%, and 33.29%, respectively, lower than the average of 30.77%, 33.47%, and 33.29% of peers.
At that time, Jiadu Technology explained that the company's service and product integration business revenue accounted for a relatively large amount, and the business was based on a mature customer and supplier cooperation system, with fast turnover, but the gross profit margin was low, making the company's gross profit margin lower than the industry average. In fact, the company's gross margin, excluding the service and product integration business, still lags the average of its peers. From 2019 to 2021, the gross profit margin excluding this business was 19.23%, 26.12%, and 25.45% respectively.
In addition, Titanium Media APP noticed that the amount of the company's accounts receivable is rising. From 2021 to 2023, the book value of the company's accounts receivable will be 2.623 billion yuan, 3.199 billion yuan and 3.233 billion yuan respectively, accounting for more than 40% of the revenue in each period. (This article was first published on the Titanium Media App, by Li Ruohan)