New Risk • May 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 48% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.2% average weekly change). Annonce • Apr 29
Shanghai Newtouch Software Co., Ltd., Annual General Meeting, May 26, 2026 Shanghai Newtouch Software Co., Ltd., Annual General Meeting, May 26, 2026, at 14:00 China Standard Time. Location: 5F, T6, No. 308, Kangshan Road, Pudong New Area, Shanghai China Reported Earnings • Apr 29
Full year 2025 earnings released: CN¥0.48 loss per share (vs CN¥0.03 profit in FY 2024) Full year 2025 results: CN¥0.48 loss per share (down from CN¥0.03 profit in FY 2024). Revenue: CN¥2.11b (up 5.6% from FY 2024). Net loss: CN¥127.4m (down CN¥135.5m from profit in FY 2024). Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 6% per year. Annonce • Mar 30
Shanghai Newtouch Software Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Shanghai Newtouch Software Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Reported Earnings • Mar 01
Full year 2025 earnings released: CN¥0.45 loss per share (vs CN¥0.03 profit in FY 2024) Full year 2025 results: CN¥0.45 loss per share (down from CN¥0.03 profit in FY 2024). Revenue: CN¥2.12b (up 6.1% from FY 2024). Net loss: CN¥119.5m (down CN¥127.6m from profit in FY 2024). Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jan 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.9x net interest cover). Earnings have declined by 30% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). New Risk • Jan 13
New major risk - Revenue and earnings growth Earnings have declined by 30% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.9x net interest cover). Earnings have declined by 30% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Annonce • Dec 26
Shanghai Newtouch Software Co., Ltd. to Report Fiscal Year 2025 Results on Apr 29, 2026 Shanghai Newtouch Software Co., Ltd. announced that they will report fiscal year 2025 results on Apr 29, 2026 Board Change • Dec 12
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Chun Xu was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.003 (vs CN¥0.052 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.003 (down from CN¥0.052 in 3Q 2024). Revenue: CN¥542.0m (up 19% from 3Q 2024). Net income: CN¥668.9k (down 94% from 3Q 2024). Profit margin: 0.1% (down from 2.4% in 3Q 2024). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 17% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Sep 30
Shanghai Newtouch Software Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Shanghai Newtouch Software Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Annonce • Jun 30
Shanghai Newtouch Software Co., Ltd. to Report First Half, 2025 Results on Aug 30, 2025 Shanghai Newtouch Software Co., Ltd. announced that they will report first half, 2025 results on Aug 30, 2025 Annonce • May 13
Shanghai Newtouch Software Co., Ltd., Annual General Meeting, Jun 03, 2025 Shanghai Newtouch Software Co., Ltd., Annual General Meeting, Jun 03, 2025, at 14:00 China Standard Time. Location: 5F, T6, No. 308, Kangshan Road, Pudong New Area, Shanghai China Reported Earnings • May 05
First quarter 2025 earnings released: EPS: CN¥0.06 (vs CN¥0.06 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.06 (in line with 1Q 2024). Revenue: CN¥434.2m (flat on 1Q 2024). Net income: CN¥15.7m (up 4.0% from 1Q 2024). Profit margin: 3.6% (in line with 1Q 2024). Revenue is forecast to grow 26% p.a. on average during the next 2 years, compared to a 16% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. New Risk • May 03
New major risk - Revenue and earnings growth Earnings have declined by 27% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 27% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (0.4% net profit margin). Annonce • Mar 28
Shanghai Newtouch Software Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Shanghai Newtouch Software Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 New Risk • Mar 14
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.4% Last year net profit margin: 4.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.2x net interest cover). Share price has been highly volatile over the past 3 months (14% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (0.4% net profit margin). Valuation Update With 7 Day Price Move • Jan 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥14.83, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 31x in the IT industry in China. Total returns to shareholders of 12% over the past three years. Annonce • Dec 27
Shanghai Newtouch Software Co., Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Shanghai Newtouch Software Co., Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥16.43, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 34x in the IT industry in China. Total returns to shareholders of 21% over the past three years. Valuation Update With 7 Day Price Move • Nov 25
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥17.55, the stock trades at a trailing P/E ratio of 78.6x. Average trailing P/E is 74x in the IT industry in China. Total returns to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥16.85, the stock trades at a trailing P/E ratio of 75.4x. Average trailing P/E is 75x in the IT industry in China. Total returns to shareholders of 19% over the past three years. Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.052 (vs CN¥0.071 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.052 (down from CN¥0.071 in 3Q 2023). Revenue: CN¥455.4m (up 10.0% from 3Q 2023). Net income: CN¥10.7m (down 34% from 3Q 2023). Profit margin: 2.4% (down from 3.9% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 02
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to CN¥14.44, the stock trades at a trailing P/E ratio of 59.4x. Average trailing P/E is 68x in the IT industry in China. Total returns to shareholders of 9.5% over the past three years. Annonce • Sep 30
Shanghai Newtouch Software Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Shanghai Newtouch Software Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (7.9% increase in shares outstanding). Reported Earnings • Aug 28
Second quarter 2024 earnings released: EPS: CN¥0.022 (vs CN¥0.079 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.022 (down from CN¥0.079 in 2Q 2023). Revenue: CN¥495.4m (up 27% from 2Q 2023). Net income: CN¥6.13m (down 69% from 2Q 2023). Profit margin: 1.2% (down from 5.1% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Annonce • Jun 28
Shanghai Newtouch Software Co., Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Shanghai Newtouch Software Co., Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 New Risk • Jun 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 28% per year over the past 5 years. High level of non-cash earnings (28% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.4% average weekly change). Shareholders have been diluted in the past year (9.2% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥12.95, the stock trades at a trailing P/E ratio of 44.2x. Average trailing P/E is 47x in the IT industry in China. Total loss to shareholders of 13% over the past three years. Annonce • May 15
Shanghai Newtouch Software Co., Ltd., Annual General Meeting, Jun 03, 2024 Shanghai Newtouch Software Co., Ltd., Annual General Meeting, Jun 03, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Shanghai China Reported Earnings • May 01
First quarter 2024 earnings released: EPS: CN¥0.06 (vs CN¥0.03 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.06 (up from CN¥0.03 in 1Q 2023). Revenue: CN¥433.2m (up 37% from 1Q 2023). Net income: CN¥15.1m (up 108% from 1Q 2023). Profit margin: 3.5% (up from 2.3% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Annonce • Mar 30
Shanghai Newtouch Software Co., Ltd. to Report Q1, 2024 Results on Apr 29, 2024 Shanghai Newtouch Software Co., Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Reported Earnings • Feb 27
Full year 2023 earnings released: EPS: CN¥0.30 (vs CN¥0.22 loss in FY 2022) Full year 2023 results: EPS: CN¥0.30 (up from CN¥0.22 loss in FY 2022). Revenue: CN¥1.69b (up 28% from FY 2022). Net income: CN¥70.5m (up CN¥122.5m from FY 2022). Profit margin: 4.2% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. New Risk • Feb 02
New major risk - Revenue and earnings growth Earnings have declined by 43% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 43% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.8% average weekly change). Shareholders have been diluted in the past year (7.6% increase in shares outstanding). New Risk • Jan 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Shareholders have been diluted in the past year (7.6% increase in shares outstanding). New Risk • Dec 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.071 (vs CN¥0.13 loss in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.071 (up from CN¥0.13 loss in 3Q 2022). Revenue: CN¥413.9m (up 11% from 3Q 2022). Net income: CN¥16.3m (up CN¥46.9m from 3Q 2022). Profit margin: 3.9% (up from net loss in 3Q 2022). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 20% growth forecast for the IT industry in China. Reported Earnings • Aug 28
Second quarter 2023 earnings released: EPS: CN¥0.079 (vs CN¥0.023 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.079 (up from CN¥0.023 in 2Q 2022). Revenue: CN¥390.1m (up 25% from 2Q 2022). Net income: CN¥19.9m (up 260% from 2Q 2022). Profit margin: 5.1% (up from 1.8% in 2Q 2022). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 19% growth forecast for the IT industry in China. Annonce • Jun 28
Shanghai Newtouch Software Co., Ltd. to Report First Half, 2023 Results on Aug 28, 2023 Shanghai Newtouch Software Co., Ltd. announced that they will report first half, 2023 results on Aug 28, 2023 Reported Earnings • Apr 26
Full year 2022 earnings released: CN¥0.22 loss per share (vs CN¥0.60 profit in FY 2021) Full year 2022 results: CN¥0.22 loss per share (down from CN¥0.60 profit in FY 2021). Revenue: CN¥1.32b (up 2.6% from FY 2021). Net loss: CN¥51.9m (down 137% from profit in FY 2021). Reported Earnings • Mar 02
Full year 2022 earnings released: CN¥0.20 loss per share (vs CN¥0.60 profit in FY 2021) Full year 2022 results: CN¥0.20 loss per share (down from CN¥0.60 profit in FY 2021). Revenue: CN¥1.29b (flat on FY 2021). Net loss: CN¥48.8m (down 135% from profit in FY 2021). Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥12.57, the stock trades at a trailing P/E ratio of 26.9x. Average trailing P/E is 56x in the IT industry in China. Total loss to shareholders of 24% over the past year. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥10.75, the stock trades at a trailing P/E ratio of 23x. Average trailing P/E is 46x in the IT industry in China. Total loss to shareholders of 23% over the past year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 2 non-independent directors. Independent Director Hongliang Liu was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.03 (vs CN¥0.069 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.03 (down from CN¥0.069 in 3Q 2021). Revenue: CN¥277.8m (up 3.5% from 3Q 2021). Net income: CN¥8.32m (down 51% from 3Q 2021). Profit margin: 3.0% (down from 6.3% in 3Q 2021). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 20% growth forecast for the IT industry in China. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥9.97, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 23x in the IT industry in China. Total loss to shareholders of 22% over the past year. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.042 (vs CN¥0.086 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.042 (down from CN¥0.086 in 2Q 2021). Revenue: CN¥312.5m (flat on 2Q 2021). Net income: CN¥5.53m (down 71% from 2Q 2021). Profit margin: 1.8% (down from 6.3% in 2Q 2021). Over the next year, revenue is forecast to grow 42%, compared to a 24% growth forecast for the IT industry in China. Price Target Changed • May 12
Price target decreased to CN¥22.40 Down from CN¥32.39, the current price target is provided by 1 analyst. New target price is 72% above last closing price of CN¥13.01. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥0.86 for next year compared to CN¥0.78 last year. Reported Earnings • Apr 30
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.78 (up from CN¥0.58 in FY 2020). Revenue: CN¥1.28b (up 19% from FY 2020). Net income: CN¥141.2m (up 73% from FY 2020). Profit margin: 11% (up from 7.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 7.3%. Earnings per share (EPS) exceeded analyst estimates by 34%. Over the next year, revenue is forecast to grow 37%, compared to a 25% growth forecast for the industry in China. Reported Earnings • Feb 28
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.75 (up from CN¥0.58 in FY 2020). Revenue: CN¥1.28b (up 19% from FY 2020). Net income: CN¥137.1m (up 68% from FY 2020). Profit margin: 11% (up from 7.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 7.3%. Earnings per share (EPS) exceeded analyst estimates by 29%. Over the next year, revenue is forecast to grow 37%, compared to a 25% growth forecast for the industry in China. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥20.45, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 29x in the IT industry in China. Total returns to shareholders of 27% over the past year. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.09 (vs CN¥0.12 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: CN¥268.4m (up 20% from 3Q 2020). Net income: CN¥17.0m (up 7.7% from 3Q 2020). Profit margin: 6.3% (down from 7.1% in 3Q 2020). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.12 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: CN¥309.6m (up 39% from 2Q 2020). Net income: CN¥19.4m (up 23% from 2Q 2020). Profit margin: 6.3% (down from 7.1% in 2Q 2020). Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 26% share price gain to CN¥30.08, the stock trades at a forward P/E ratio of 49x. Average forward P/E is 24x in the IT industry in China. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment improved over the past week After last week's 25% share price gain to CN¥21.66, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 25x in the IT industry in China. Reported Earnings • Apr 26
Full year 2020 earnings released: EPS CN¥0.58 (vs CN¥0.58 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: CN¥1.07b (down 3.9% from FY 2019). Net income: CN¥81.6m (up 2.6% from FY 2019). Profit margin: 7.6% (up from 7.1% in FY 2019). The increase in margin was driven by lower expenses. Annonce • Feb 03
Shanghai Newtouch Software Co., Ltd. (SHSE:688590) agreed to acquire remaining 15.33% stake in Shanghai Newtouch Information Technology Co., Ltd. from Shanghai Dongshu Venture Capital Center (Limited Partnership), Ivy (Shanghai) Phase III Venture Capital Partnership (Limited Partnership) and Rizhao Ivy Innovation Venture Capital Partnership (Limited Partnership) for CNY 30.05 million. Shanghai Newtouch Software Co., Ltd. (SHSE:688590) agreed to acquire remaining 15.33% stake in Shanghai Newtouch Information Technology Co., Ltd. from Shanghai Dongshu Venture Capital Center (Limited Partnership), Ivy (Shanghai) Phase III Venture Capital Partnership (Limited Partnership) and Rizhao Ivy Innovation Venture Capital Partnership (Limited Partnership) for CNY 30.05 million on February 1, 2021. Post the transaction, Shanghai Newtouch Software Co., Ltd. will hold 100% stake in Shanghai Newtouch Information Technology Co., Ltd. Shanghai Newtouch Software will acquire 10.33%, 3% and 2% stakes in Shanghai Newtouch Information Technology Co., Ltd. from Shanghai Dongshu Venture Capital Center (Limited Partnership), Ivy (Shanghai) Phase III Venture Capital Partnership (Limited Partnership) and Rizhao Ivy Innovation Venture Capital Partnership (Limited Partnership) for CNY 202.5 million, CNY 58.8 million and CNY 3.9 million in cash, respectively. The transaction will be financed through the own funds of Shanghai Newtouch Software. Shanghai Newtouch Information Technology Co., Ltd. has total assets of CNY 213.5 million and total net assets of CNY 87.2 million as of December 31, 2020. Shanghai Newtouch Information Technology Co., Ltd. generated operating income of CNY 226.7 million and net profit of CNY 5.02 million for the year ended December 31, 2020. The transaction has been approved by the Board of Directors of Shanghai Newtouch Software. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥16.39, the stock is trading at a trailing P/E ratio of 28.6x, down from the previous P/E ratio of 34.2x. This compares to an average P/E of 55x in the Software industry in China. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥21.62, the stock is trading at a trailing P/E ratio of 37.8x, down from the previous P/E ratio of 45.4x. This compares to an average P/E of 58x in the Software industry in China.