Yusys Technologies' net profit increased by 71.41% during the first half of the year—accelerated the release of transformation value

Banking institutions Consumer Finance Finance Companies Auto Finance Securities and Trust Finance Leasing Payment and Clearing Institutions Universal Solution

Credit Assets Management

Intelligent Omnichannel Banking

Data & Analytics

Operation Management and Data Application

Risk and Asset-Liability Management

Consumer Finance

Yusys’ consumer finance solution is an all-round and full life cycle industry solution for consumer financial institutions based on core system development, business operation cooperation, technology empowerment of financial institutions, and Yusys’ consumer finance business innovation experience of more than 10 years. It covers complete solutions for the entire life cycle of consumer finance company opening preparations, technological operations, business innovations, data cooperation, and asset fund integration.

Finance Companies

As a leading corporation in the domestic financial technology industry, Yusys Technologies entered the financial company service field that represents the group's industrial finance, in 2015. After years of efforts, it has gained the ability to serve financial company infrastructure, service groups, and serve upstream and downstream financial technology services in all fields. Among them, infrastructure construction of finance companies includes unified business construction, data construction, and channel construction. Group services take treasury management as the core, covering internal liquidity, unified investment and financing, and risk management, and industry upstream and downstream services include supply chain finance and scenario finance associated with group enterprises.

Auto Finance

At present, Yusys Technologies has established cooperative relationships with a number of auto finance, banking, and financial company customers in the fields of retail car purchase, inventory financing, and financial leasing, and has established an auto finance team within the company. It has a team of nearly 100 people and serves all kinds of financial customers in China, and is committed to providing one-stop automotive financial informatization solutions including customer acquisition, channel connection, mobile office, loan approval, contract management, loan payment, and post loan management.

Securities and Trust

Yusys Technologies has participated in IT construction in the trust and securities industries since 2010. It has successively cooperated with trust clients such as CITIC Trust, CCB Trust, Ping An Trust, Foreign Trade Trust, AVIC Trust, Minmetals Trust, Kunlun Trust, and other trust customers, and cooperated with Shenwan Hongyuan Securities , Industrial Securities, Guotai Junan Securities, CITIC Securities, China Development Bank Securities, and other securities customers. It has established a team that is proficient in the trust and securities business and formed a complete set of mature product solutions and systems. Yusys Technologies takes the trust and securities market as a breakthrough and has gradually established its product advantages in the trust, securities and the entire asset management industry!

Finance Leasing

With its rich experience and leading technology in financial IT consulting services, program planning, product development, as well as in-depth understanding and extensive cooperation in the financial leasing industry, Yusys Technologies is facing an increasingly sophisticated and professional format, adhering to "technology + products+business+operation” integrated strategy, which empowers financial leasing technology, improves quality and efficiency, and actively tailors the best IT solutions for financial leasing companies.

Integrated Management Solution

Standard business processing procedures and rules:Flexibly design standardized and unified business processing procedures, formulate unified business rules, reduce participation in institutional system development, reduce system complexity, and ensure safe, stable and efficient system operation.Efficient fund payment and clearing function:Support 24*7 business operation, meet customers’ all-weather payment needs, and adopt real-time processing and full settlement of funds for payment business. Every payment business is received in real time, realizing zero inter-agency fund clearing in transit, providing customers with convenient and efficient payment and settlement services, and improving the efficiency of fund use.

Technology Middle Platform

Technology Platforms

Technical Tools

IT Management

Intelligent Operation and Maintenance Tools

Automated Test

Enterprise Resource Management

Yusys Financial Cloud Online Loan Operation Smart Bank Branch Operation Risk Control Operation Scenario-Based Financial Operations

Computing Resources

Cloud Compliance

Internet Resources

Storage

Database Service

Cloud Security

Cloud Operation Management

Online Loan Operation

After several years of development and operation, Yusys Technologies' online loan platform has the characteristics of "fast launch, good scalability, and easy operation and maintenance". It flexibly adopts the cooperation model of "profit before paying", giving full play to the "zero cost investment" to build the online loan operations. The financial platform helps various banks and credit institutions to expand the scale of the online lending market while optimizing their asset structure, improve capital quality, and reduce financial risks. Yusys Technologies also provides comprehensive operational support for customers' online loan business, from whitelisting services, marketing services, risk control consulting, to modeling services, customer management, and risk monitoring. The nearly 200-person team covers various roles such as product, technology, operation, and maintenance, and all team members have internet financial technology and banking experience.According to the IDC report, the market share of Yusys Technologies' online loan solutions ranks first in the industry.

Smart Bank Branch Operation

Yusys Technologies has an industry-leading overall smart banking solution, which aims to help banks quickly realize smart and digital transformation. It helps banks quickly transform from traditional outlets to smart banks with data knowledge plus platform operation as the core, and help banks through various advanced concepts, equipment, and technology applications combined with the banks’ customers, businesses, products and services. It focuses on changes in customer structure and needs, from omni-channel integration, smart interaction, smart insight, smart operations, digital operations, precision marketing, and smart management and control perspectives. The solution has led to in-depth changes in branch positioning, business models, spatial environment, transaction processes, service processes, marketing models, and management and control models in different dimensions to comprehensively improve branch service efficiency, customer experience and branch capacity, effectively reducing banks’ operating costs and improving operating efficiency.

Big Data Risk Scoring

Yusys Technologies aims to help financial institutions develop stably and has partnered with several big data risk control companies in China for intelligent risk control and anti-fraud measures. Leveraging its more than 20 years of service experience in the banking industry, Yusys Technologies has integrated the data capabilities of authoritative institutions such as public security, social security, UnionPay, railways, and aviation, and introduced the world’s leading knowledge map, neural network, machine learning, and other technical capabilities to create an intelligent risk control and anti-fraud product system. The solution includes verification products, anti-fraud scoring, risk warning, marketing customer profiles, and “Wallet Location Radar ”, providing financial institutions with "targeted marketing – intelligent anti-fraud-application approval – risk warning" and other intelligent risk control throughout the process.

Existing Customer Remarketing Platform

As traffic dividends and demographic dividends are gradually disappearing, how to tap new traffic opportunities in the remaining market and accurately reach target customers has become an urgent problem for many financial institutions. Accordingly, Yusys Technologies launched SCM, a remarketing platform for existing customers. The SCM platform adopts a cooperative operation model. Financial institutions do not need to bear any costs in the early stage, but pay according to the marketing conversion results. To improve customer contribution, retention, and brand awareness, the platform uses big data and machine learning to conduct accurate customer analysis and product marketing.

Scenario-Based Financial Operations

Upholding the principle of win-win concept, Yusys helps financial institutions improve their digital financial service capabilities, and expand the open financial business ecosystem through open financial empowerment service platforms connecting financial scenarios , . The services mainly include business consultation, technical consultation, scenario docking, smart risk control, credit card business SaaS service, operation support, and data analysis, etc.

Consultation User Experience and Design Application Development Testing Operation and Maintenance IT System Value-added Services

Consultation

Yusys Technologies combines advanced Chinese and international management concepts and business models to provide IT planning consulting, business and management consulting, and commercial software implementation consulting. The company’s high-quality expert think tanks rely on their years of experience, understanding and grasp of the domestic financial IT industry to provide increasingly advanced perspectives for the financial industry, help improve bank operations and management, implement management concepts into specific business consulting services, and provide advanced system tools in the industry. The advantages of Yusys Technologies' consulting services are reflected in its comprehensive consulting, integration, and implementation capabilities for different customers and projects in the industry.

User Experience and Design

The User Experience Innovation Division has conducted more than 10 years of user experience research, has strong exposure to user experience projects in China and foreign countries, and has good international vision as well as a fully functional user experience innovation laboratory. Yusys uses scientific methods that take into account China's domestic situation and social conditions, to provide customers with high-quality user experience research, design, evaluation, standardization, and training, and treats design as a dynamic process. In the design process, the designers, engineers, and marketing planning and promotion experts improve the products and services. The services include human-computer interaction, usability research, interface design, and customer experience research and cover many industries such as education, finance, communications, healthcare, internet, and transportation.

Application Development

Yusys Technologies provides financial industry customers with diversified technologies, multi-region support, and full life cycle technology development services. Leveraging its professional CMMI5, ISO9001, ISO20000, and ISO27001 certification, Yusys provides customers with standard technology development services. So far, Yusys has provided technology development services to more than 750 financial institutions from home and abroad. Thanks to its ever-growing industry exposure and experience, Yusys can help customers save costs and improve IT development.

Testing

As a software and IT service company that provides a full range of products to the financial industry, Yusys Technologies' testing services have become an integral component in the whole product lines. The testing team focuses on continuously improving the quality of application systems, controlling system performance and availability, controlling project costs and risks, and creating a reliable testing service brand. Keeping track of international leading technologies, Yusys Technologies' testing team has accumulated rich best practices, and is committed to providing customers with high-quality testing services.

Operation and Maintenance

After more than 20 years of experience and ongoing development in the financial industry, Yusys Technologies’ operation and maintenance business has established a multi-dimensional integrated delivery model of "system consulting + operation and maintenance products + technical support", and has established a high-end expert team, with solutions and implementation capabilities for new development, operation, optimization, and continuous improvement of data center. The company is now the leading operation and maintenance service provider in the industry.

IT System Value-added Services

The IT system value-added services cover all-round services such as financial data center consulting planning, construction implementation, security maintenance, etc. Through cloud computing, big data, distributed technology, agile operation, and other technical means, Yusys enables financial customers to build advanced IT architecture, agile IT capabilities, and ensures their strong IT performance, to realize a transformation from the status quo into sensitive-state data centers.

Yusys Technologies' net profit increased by 71.41% during the first half of the year—accelerated the release of transformation value

2020-08-28

On August 26, Yusys Technologies (300674) released the latest half-yearly report. During the reporting period, the company's core business revenue and profit showed a Y-o-Y growth trend. The operating income during the first half of the year was RMB 1.077 billion. Net profit was RMB 124 million with a year-on-year increase of 71.41%, and the net profit attributable to shareholders of listed companies was RMB 129 million with a year-on-year increase of 59.77%.

From the perspective of revenue structure, the contribution of the innovative solutions for businesses to revenue increased significantly in 2019, an increase of RMB 26 million compared to the same period in the previous year, an increase of 164.63%, highlighting the value of innovation and transformation in the face of the pandemic.

With the outbreak of the pandemic in 2020, the demand for contactless services in the banking industry and other financial industries has surged, and businesses such as cloud services have grown rapidly. In the process of the transformation of banking financial services from semi-online to full-online process, the immense value of the financial technology sector represented by Yusys Technologies, is highlighted.

Comprehensively develop the banking industry and grow steadily

During the first half of 2020, there was a new round of explosive growth in the traditional business sector. After more than 20 years of development, Yusys Technologies has become one of the largest banking IT solution providers in China with a comprehensive product layout and business scope covering nearly all banking related fields. It has consistently maintained a leading position in credit management, business intelligence, regulatory reporting, network banking and other segments and solutions.

During the first half of the year Yusys Technologies' credit business captured the market transformation opportunities and achieved explosive growth by virtue of its industry leadership and first-mover advantage. Yusys Technologies' distributed micro-service credit product–which empowers financial credit creation facilities–has taken the lead in acceptance by numerous banks, and there are many more requests in the pipeline. Moreover, the company's credit product landscape has been extended from credit-operation management to post-loan asset management, and the complete credit product line has enabled the company to showcase its unique competitive advantages.

In the field of data business, during the first half of the year Yusys Technologies made breakthroughs in research and development and won large bids for data center and emerging data application products, including precision marketing and data modeling. Moreover, in recent years it has tendered the winning bid for the largest urban commercial bank reorganization and big-data platform merger project, among other achievements.

The regulatory business is a field in which Yusys Technologies' product system has become increasingly mature, encompassing all submissions to the China Banking and Insurance Regulatory Commission, the People's Bank of China and SAFE. Consequently, the company's market share has continued to expand. During the first half of the year, the company won bids for several major joint-stock bank supervision projects and provided services to the national financial regulatory agency for the first time.

Although the expansion of overseas business has been affected to a certain extent due to the Covid-19 pandemic, the company has overcome numerous difficulties and has continued to advance its overseas market layout in an orderly manner, while ushering in new breakthroughs. In the Singapore market, the company signed a contract with a Chinese state-owned bank to provide a supervisory statement reporting platform system, thus attaining the first breakthrough of the company's overseas market. In the Indonesian market, the company signed a letter of intent with local customers for a cooperative digital banking project, which will be officially launched and made operational during the first half of next year. Moreover, the company continues to integrate resources with partners such as Huawei, NTTDATA, and OCBC Bank Singapore to jointly develop the market of Southeast Asia. During the next five years, the expansion of overseas markets will be an important element in the company's general development strategy.

To date, Yusys Technologies has served more than 750 financial institutions in China and overseas and has provided services to 115 of the "Top 1000 World Banks." Its customers include the People's Bank of China, China Development Bank, two non-commercial banks, six major state-owned commercial banks, 12 joint-stock banks and more than 100 regional commercial banks.

IDC forecasts that the average compound annual growth rate of China's banking IT solution market from 2019 to 2023 will be 20.8%, and by 2023, the market size will reach RMB 107.15 billion. The current competitive landscape of the industry is relatively fragmented, and the top five vendors only occupy 17.8% of the market. Thus, with the decrease in the proportion of hardware and integration, increase in the proportion of software, the constant development of financial technology, and the focus of downstream customers to branding, as an industry leader, Yusys Technologies is expected to fully benefit from the increase in market share brought about by the increase in industry concentration.

Transformation value—innovative business releases new momentum

In the new round of intelligent upgrade of banking financial technology, Yusys Technologies has seized new development opportunities in the industry by leveraging Yusys Cloud that has been developed for more than 10 years. The company has actively pioneered its profit model through the cooperation model of joint operation with financial institutions and mutual benefit. In 2019, Yusys Technologies' innovative solutions for businesses achieved initial results, with revenues of RMB 76.045 million, a Y-o-Y increase of 561.73%. During the first half of the year, revenue from innovative operations increased by 164.63%, making it the company's second-largest growth engine.

The gross profit margin of innovative solutions for businesses is also high. During the reporting period, thanks to the expansion of the company's operating platform service revenue, daily software development and maintenance, and the high reuse rate of operating personnel, the gross profit margin of this sector with a year-on-year increase of 16.43%, rising to 78.31%, thus verifying the effect of the company's transformation through innovative solutions for businesses. Innovative solutions that are less affected by the pandemic and have higher gross profit margins, rapid growth and increased revenue share have also helped increase the company's gross profit margin and improved the general structure of operations. During the first quarter of the year, Yusys Technologies' gross profit margin increased by 4.60% from the same period of the previous year, reaching 36.48%.

The model for cooperation based on financial cloud services is an important part of the company's future transformation. According to the report "China's Financial Cloud Market (Second Half of 2019) Tracking" published by the IDC, Yusys Cloud ranks second only to Alibaba Cloud in the banking cloud solution segment. However, in the banking industry cloud-application solution field, Yusys Technologies has the top position. Yusys Technologies has also facilitated deep integration with its strategic shareholder Baidu to create an intelligent financial cloud. Thus, it has established a three-point approach to cooperation: improving the development of the financial cloud system, enhancing the financial cloud operation capability and expanding the financial cloud business.

During the first half of the year, two new customers launched and commenced trial operations of the financial ecosystem platform operated by Yusys Technologies together with its respective customers. Moreover, the company is comprehensively leveraging the value of the ecosystem, actively exploring diverse operating businesses, and comprehensively promoting customers' retail transformation. Using the innovative solutions business as a starting point, the company is also expanding business opportunities horizontally to continuously promote software development as a business.

The business of digital currency has also drawn attention from all avenues of the marketplace. Accordingly, Yusys Technologies signed a strategic cooperation agreement with Baidu and will apply its industry experience with Baidu's technical advantages in blockchain and other aspects to facilitate cooperation in the research and development of innovative products such as digital currency and its associated activities.

During the first half of the year, Yusys Technologies actively participated in the technology output and innovation transformation of CCB Fintech Co., Ltd. (hereinafter CCB Fintech), with the aim to make full use of their respective industry advantages and influence to create a comprehensive financial technology solution. Yusys Technologies will help CCB Fintech to form a business-development model driven by financial technology, enabling better integration of scenarios, technologies, data, and products. Thus, the two parties will work to develop fully dimensional cooperation. For example, the company will assist CCB Fintech and other small and medium-size banks in the creation of an ecosystem and provide customers with better technical support and other services.

From service to product upgrade: research and development consolidate internal strength

In its 21-year development history, Yusys Technologies has gradually evolved and now possesses both product and service genes. While services are at its core, products are its development path, and the two together are jointly driving business growth.

Since the first half of the year, Yusys Technologies has upgraded its products and released a total of 31 new products. For example, the next-generation data middle office product family system, which employs "micro-service + componentization," has been implemented in many banks, helping customers to operate and establish an independent and controllable financial data capability matrix, providing a solid foundation for digital transformation. A next-generation of distributed micro-service retail credit (Westar), based on an independent unified distributed development platform, is the industry's first micro-service version of the retail credit system, which has been launched successively in many urban commercial banks.

Yusys Technologies is actively developing an internal "unified technology base" project. In the independent research and development of a unified development platform, the broad implementation of a distributed mobile development platform and standardized technical specifications have significantly improved development efficiency and quality. Additionally, Yusys Technologies has established the first committee of technical experts to drive business development with technology, accelerated the introduction of viable new talents, built a team of high-level business experts, and improved capabilities with respect to products and solutions.

Yusys Technologies is certainly energetic in the development of its core business, but it's also making strategic investment, primarily in technology-driven and scenario-driven enterprises, to further improve the financial technology cooperation ecosystem.

Hong Weidong, the founder, chairman and CEO of Yusys Technologies, stated that during the second half of the year, the company will continue to strengthen its superior product line consulting, product, and comprehensive solution capabilities, and strengthen the model for cooperation based on financial cloud services, which is at the core of the company's future transformation. Yusys Technologies working hand in hand with customers and partners and walking together with them on this development journey.

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Credit Assets Management

Intelligent Omnichannel Banking

Data & Analytics

Risk and Asset-Liability Management

Consumer Finance

Finance Companies

Auto Finance

Securities and Trust

Finance Leasing

Integrated Management Solution

Technology Middle Platform

IT Management

Online Loan Operation

Smart Bank Branch Operation

Big Data Risk Scoring

Existing Customer Remarketing Platform

Scenario-Based Financial Operations

Consultation

User Experience and Design

Application Development

Testing

Operation and Maintenance

IT System Value-added Services

Yusys Technologies' net profit increased by 71.41% during the first half of the year—accelerated the release of transformation value

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