New Risk • May 27
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 8.3% 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: Major Risk Earnings have declined by 73% per year over the past 5 years. Minor Risks High level of debt (54% net debt to equity). Share price has been volatile over the past 3 months (8.3% average weekly change). Announcement • Apr 30
Linewell Software Co., Ltd., Annual General Meeting, May 20, 2026 Linewell Software Co., Ltd., Annual General Meeting, May 20, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Quanzhou, Fujian China Announcement • Mar 30
Linewell Software Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Linewell Software Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Dec 26
Linewell Software Co., Ltd. to Report Fiscal Year 2025 Results on Apr 30, 2026 Linewell Software Co., Ltd. announced that they will report fiscal year 2025 results on Apr 30, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings released: CN¥0.05 loss per share (vs CN¥0.079 loss in 3Q 2024) Third quarter 2025 results: CN¥0.05 loss per share (improved from CN¥0.079 loss in 3Q 2024). Revenue: CN¥290.1m (up 113% from 3Q 2024). Net loss: CN¥28.6m (loss narrowed 39% from 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 108 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Linewell Software Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Linewell Software Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Announcement • Jun 30
Linewell Software Co., Ltd. to Report First Half, 2025 Results on Aug 30, 2025 Linewell Software Co., Ltd. announced that they will report first half, 2025 results on Aug 30, 2025 Announcement • Apr 26
Linewell Software Co., Ltd., Annual General Meeting, May 16, 2025 Linewell Software Co., Ltd., Annual General Meeting, May 16, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Quanzhou, Fujian China Announcement • Mar 28
Linewell Software Co., Ltd. to Report Q1, 2025 Results on Apr 26, 2025 Linewell Software Co., Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 New Risk • Feb 17
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 8.5% 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 (14% operating cash flow to total debt). Earnings have declined by 29% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.5% average weekly change). Announcement • Jan 15
Tianjin Qizhong Shiyuan Enterprise Management Partnership (Limited Partnership) completed the acquisition of 5.85% stake in Linewell Software Co., Ltd. (SHSE:603636) from Wu Zhixiong. Tianjin Qizhong Shiyuan Enterprise Management Partnership (Limited Partnership) agreed to acquire 5.85% stake in Linewell Software Co., Ltd. (SHSE:603636) from Wu Zhixiong for approximately CNY 370 million on November 28, 2024. Tianjin Qizhong will acquire 33.952 million shares at CNY 10.98 per share.
The share transfer needs to be confirmed by the Shanghai Stock Exchange for compliance.
Tianjin Qizhong Shiyuan Enterprise Management Partnership (Limited Partnership) completed the acquisition of 5.85% stake in Linewell Software Co., Ltd. (SHSE:603636) from Wu Zhixiong on January 14, 2025. New Risk • Jan 02
New major risk - Revenue and earnings growth Earnings have declined by 29% 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 Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Earnings have declined by 29% per year over the past 5 years. Announcement • Dec 27
Linewell Software Co., Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 Linewell Software Co., Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: CN¥0.079 loss per share (vs CN¥0.063 loss in 3Q 2023) Third quarter 2024 results: CN¥0.079 loss per share (further deteriorated from CN¥0.063 loss in 3Q 2023). Revenue: CN¥136.0m (down 43% from 3Q 2023). Net loss: CN¥46.8m (loss widened 10% from 3Q 2023). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Announcement • Sep 30
Linewell Software Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Linewell Software Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Board Change • Jul 30
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Director Yong Cui was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Jun 28
Linewell Software Co., Ltd. to Report First Half, 2024 Results on Aug 03, 2024 Linewell Software Co., Ltd. announced that they will report first half, 2024 results on Aug 03, 2024 New Risk • May 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 4.2% per year over the past 5 years. High level of non-cash earnings (20% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • May 01
Linewell Software Co., Ltd., Annual General Meeting, May 24, 2024 Linewell Software Co., Ltd., Annual General Meeting, May 24, 2024, at 14:30 China Standard Time. Location: Floor 9M, Building 3, Area 4, No. 186, Nansihuan West Road, Fengtai District, Beijing China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥8.15, the stock trades at a trailing P/E ratio of 45.9x. Average trailing P/E is 65x in the Software industry in China. Total loss to shareholders of 19% over the past three years. Announcement • Mar 29
Linewell Software Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Linewell Software Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥8.77, the stock trades at a trailing P/E ratio of 49.4x. Average trailing P/E is 62x in the Software industry in China. Total loss to shareholders of 2.6% over the past three years. Announcement • Dec 29
Linewell Software Co., Ltd. to Report Fiscal Year 2023 Results on Apr 30, 2024 Linewell Software Co., Ltd. announced that they will report fiscal year 2023 results on Apr 30, 2024 New Risk • Dec 21
New major risk - Revenue and earnings growth Earnings have declined by 7.9% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 7.9% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.1% average weekly change). Large one-off items impacting financial results. New Risk • Nov 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 6.2% 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 Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.2% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 01
Third quarter 2023 earnings released: CN¥0.063 loss per share (vs CN¥0.018 profit in 3Q 2022) Third quarter 2023 results: CN¥0.063 loss per share (down from CN¥0.018 profit in 3Q 2022). Revenue: CN¥240.2m (down 9.0% from 3Q 2022). Net loss: CN¥42.5m (down CN¥51.5m from profit in 3Q 2022). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. New Risk • Aug 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Jun 28
Linewell Software Co., Ltd. to Report First Half, 2023 Results on Aug 29, 2023 Linewell Software Co., Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Apr 24
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.24 (up from CN¥0.23 in FY 2021). Revenue: CN¥1.74b (up 1.4% from FY 2021). Net income: CN¥137.9m (up 1.8% from FY 2021). Profit margin: 7.9% (in line with FY 2021). Revenue missed analyst estimates by 7.4%. Earnings per share (EPS) also missed analyst estimates by 37%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Price Target Changed • Nov 16
Price target increased to CN¥19.04 Up from CN¥11.40, the current price target is provided by 1 analyst. New target price is 29% above last closing price of CN¥14.74. Stock is up 74% over the past year. The company is forecast to post earnings per share of CN¥0.38 for next year compared to CN¥0.23 last year. Board Change • Nov 16
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. 5 non-independent directors. Independent Director Hao Wang was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.018 (vs CN¥0.025 loss in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.018 (up from CN¥0.025 loss in 3Q 2021). Revenue: CN¥263.9m (up 38% from 3Q 2021). Net income: CN¥9.00m (up CN¥23.8m from 3Q 2021). Profit margin: 3.4% (up from net loss in 3Q 2021). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Aug 04
Linewell Software Co., Ltd. announced that it expects to receive CNY 1.817435 billion in funding Linewell Software Co., Ltd. announced a private placement of 176,450,000 common shares at a issue Price CNY 10.30 per share for a gross proceeds of CNY 1,817,435,000 on August 2, 2022. The transaction included participation from CR Digital Holdings Co., Ltd for 176,450,000 Shares. The company has signed share subscription agreement. The transaction has been approved 22nd Meeting of the Company’s 4th Directorate held and is subject to the approvals of the State-owned Assets Management Department, the Company’s Shareholders, the State-owned Assets Supervision and Administration Agency, the Concentration of Operators Anti-Monopoly Review, and the China Securities Regulatory Commission. The shares cannot be transferred within 18 months from the issuance closing date. Reported Earnings • Aug 03
Second quarter 2022 earnings released: CN¥0.024 loss per share (vs CN¥0.019 profit in 2Q 2021) Second quarter 2022 results: CN¥0.024 loss per share (down from CN¥0.019 profit in 2Q 2021). Revenue: CN¥218.6m (down 33% from 2Q 2021). Net loss: CN¥16.9m (down 250% from profit in 2Q 2021). Over the next year, revenue is forecast to grow 27%, compared to a 31% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥11.54, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 25x in the Software industry in China. Total returns to shareholders of 22% over the past three years. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥13.70, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 26x in the Software industry in China. Total returns to shareholders of 37% over the past three years. Price Target Changed • May 08
Price target decreased to CN¥11.40 Down from CN¥15.30, the current price target is provided by 1 analyst. New target price is 19% above last closing price of CN¥9.55. Stock is up 4.5% over the past year. The company is forecast to post earnings per share of CN¥0.38 for next year compared to CN¥0.23 last year. Reported Earnings • Apr 29
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: CN¥0.05 loss per share (down from CN¥0.013 loss in 1Q 2021). Revenue: CN¥125.6m (down 4.9% from 1Q 2021). Net loss: CN¥26.4m (loss widened 244% from 1Q 2021). Revenue missed analyst estimates by 14%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 56%, compared to a 33% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 8% per year. Board Change • Apr 27
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. 5 non-independent directors. Independent Director Hao Wang was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥11.65, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 25x in the Software industry in China. Total loss to shareholders of 9.0% over the past three years. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥12.25, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 29x in the Software industry in China. Total loss to shareholders of 8.2% over the past three years. Reported Earnings • Nov 01
Third quarter 2021 earnings released: CN¥0.025 loss per share (vs CN¥0.013 loss in 3Q 2020) The company reported a poor third quarter result with increased losses, weaker revenues and weaker control over costs. Third quarter 2021 results: Revenue: CN¥191.8m (down 6.4% from 3Q 2020). Net loss: CN¥14.8m (loss widened 104% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.019 (vs CN¥0.028 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥328.4m (up 81% from 2Q 2020). Net income: CN¥11.3m (down 34% from 2Q 2020). Profit margin: 3.4% (down from 9.4% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Apr 25
Full year 2020 earnings released: EPS CN¥0.42 (vs CN¥0.40 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥1.54b (up 12% from FY 2019). Net income: CN¥239.5m (up 12% from FY 2019). Profit margin: 16% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 20
New 90-day high: CN¥10.35 The company is up 3.0% from its price of CN¥10.07 on 20 November 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 1.0% over the same period. Reported Earnings • Jan 28
Full year 2020 earnings released: EPS CN¥0.39 (vs CN¥0.40 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥1.56b (up 13% from FY 2019). Net income: CN¥224.9m (up 5.3% from FY 2019). Profit margin: 14% (down from 16% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Dec 16
New 90-day low: CN¥9.65 The company is down 25% from its price of CN¥12.81 on 17 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 3.0% over the same period. Is New 90 Day High Low • Nov 25
New 90-day low: CN¥9.93 The company is down 27% from its price of CN¥13.67 on 27 August 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 7.0% over the same period. Reported Earnings • Oct 25
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥124.6m, down 6.7% from the prior year. Total revenue was CN¥1.11b over the last 12 months, down 4.5% from the prior year. Announcement • Oct 20
Linewell Software Co., Ltd. to Report Q3, 2020 Results on Oct 24, 2020 Linewell Software Co., Ltd. announced that they will report Q3, 2020 results on Oct 24, 2020 Is New 90 Day High Low • Oct 16
New 90-day low: CN¥11.90 The company is down 5.0% from its price of CN¥12.53 on 17 July 2020. The Chinese market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 4.0% over the same period. Is New 90 Day High Low • Oct 01
New 90-day low: CN¥12.00 The company is down 5.0% from its price of CN¥12.62 on 03 July 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Software industry, which is also down 5.0% over the same period. Announcement • Jul 18
Linewell Software Co., Ltd. to Report First Half, 2020 Results on Aug 29, 2020 Linewell Software Co., Ltd. announced that they will report first half, 2020 results on Aug 29, 2020