AsiaInfo Technologies (1675.HK) included in Hong Kong Stock Connect scheme
SHENZHEN, China, Sept. 17, 2020 /PRNewswire/ -- AsiaInfo Technologies Limited, China's leading telecom software provider (Ticker Symbol: 1675.HK), has been added to the Hong Kong Stock Connect scheme.
The Hong Kong, Shanghai and Shenzhen Stock Exchanges launched the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect schemes on November 17, 2014 and December 5, 2016 respectively, as a means to allow Hong Kong and Mainland Chinese investors to trade securities in each other's markets through the trading and clearing facilities of their home exchange. With the inclusion of AsiaInfo Technologies, mainland institutional investors and eligible individual investors will be able to buy and sell stocks of the company through the scheme.
On September 7, changes in the number as well as the specific equities included in the Hong Kong Stock Connect scheme due to the periodic adjustment of the constituent stocks of the Hang Seng Composite Index took effect, where 10 new stocks under Shanghai-Hong Kong Stock Connect were added to the scheme and 11 were dropped; at the same time 24 under Shenzhen-Hong Kong Stock Connect were added and 15 were dropped.
As a leading telecom software provider in China, AsiaInfo Technologies has constantly enhanced its operation support system (OSS), cloud business and digital operations by consolidating its telecom business support system (BSS). These actions allowed the company to be at the forefront of the latest transformation of the IT sector.
Collaboration between leaders promotes synergies as new businesses grow rapidly
For the first half of 2020, AsiaInfo Technologies booked revenue of roughly 2.5 billion yuan (approx. US$36.87 million), up 1.0% year on year. Net profit for the reporting period amounted to 232.6 million yuan (approx. US$34.3 million), up 228.8% year on year. New businesses posted revenue of 229.7 million yuan (approx. US$33.8 million), rising 77.7% year on year and bringing new business-generated revenue from 5.25% of the total in the first half of 2019 to 9.2% in the first half of 2020.
"AsiaInfo Technologies experienced challenges due to the epidemic in the first half of the year, yet by proactively responding to the impact, we have turned the crisis into an opportunity, with our performance steadily improving and new businesses growing rapidly," said AsiaInfo Technologies chairman Tian Suning, expressing confidence in the latest additions to the company's portfolio.
AsiaInfo Technologies' revenue structure is undergoing a qualitative change. As a result of a transformative strategy consisting of a company-wide consolidation and a focus on the development of the three new businesses, each of which has delivered excellent performance, AsiaInfo Technologies is witnessing a second round of growth.
The strategy called for the consolidation of the telecom business support software (BSS) business, alongside the development of the 5G OSS (network support system) business, the cloud business for vertical companies and the digital operation (DSaaS) business.
As one of China's leading telecommunication software providers, AsiaInfo is deeply integrated into the Chinese telecommunications sector's industrial chain in tandem with a well-established presence in related verticals for more than 20 years, during which the firm offered a series of products and services, including CRM, scenario billing and big data, to the country's three major telecommunications operators. The company has taken a 50% share of the country's BSS market. Backed by years of experience, the company launched the OSS business with a focus on network intelligent management, enterprise on-cloud and digital operation businesses, successfully creating new growth points.
At the same time, AsiaInfo has been a pioneer in seizing development opportunities in the world of 5G and digital operations. With the arrival of 5G networks, operators will have more complex needs in terms of billing and CRM, creating a solid growth foundation for the BSS business.
The unbundling of OSS software and hardware in the 5G era has also created optimum conditions for the company's entry into the OSS sector, with expectations that the business will achieve high-speed growth.
In addition, in terms of digital operations, the company has been making efforts to grow the customer base in several of the verticals in which it has a presence, including finance, automotive and insurance, while focusing on larger, more mature customers who are better financed. As for the company's presence in China's fast-growing cloud computing sector, AsiaInfo is expected to experience rapid growth through a focus on customized applications for vertical sectors, value-added services in cloud operations and R&D capabilities.
China Mobile became AsiaInfo's second largest shareholder with the acquisition of 182 million new shares (roughly a 20% ownership) in the firm, as a result of completing a new share issuance and equity closing on September 2. Following China Mobile's strategic investment, the two parties are expected to achieve enhanced synergy, helping AsiaInfo accelerate growth of the new OSS and cloud businesses as well as opening a greater space for the company's future development.