New Risk • May 23
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: 1.7% Last year net profit margin: 3.8% 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: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.7% net profit margin). Board Change • May 20
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Qingzhe Jiang 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. Duyuru • Mar 31
Topsec Technologies Group Inc. to Report Q1, 2026 Results on Apr 30, 2026 Topsec Technologies Group Inc. announced that they will report Q1, 2026 results on Apr 30, 2026 Duyuru • Dec 31
Topsec Technologies Group Inc. to Report Fiscal Year 2025 Results on Apr 24, 2026 Topsec Technologies Group Inc. announced that they will report fiscal year 2025 results on Apr 24, 2026 Duyuru • Sep 30
Topsec Technologies Group Inc. to Report Q3, 2025 Results on Oct 30, 2025 Topsec Technologies Group Inc. announced that they will report Q3, 2025 results on Oct 30, 2025 Duyuru • Jul 02
Topsec Technologies Group Inc. to Report First Half, 2025 Results on Aug 27, 2025 Topsec Technologies Group Inc. announced that they will report first half, 2025 results on Aug 27, 2025 Duyuru • May 13
Topsec Technologies Group Inc. Approves Cash Dividend for the Year 2024 Topsec Technologies Group Inc. at its Annual General Meeting held on 09 May 2025, approved cash dividend/10 shares (tax included) of CNY 0.20000000 for the year 2024. Duyuru • Apr 22
Topsec Technologies Group Inc. Proposes Final Cash Dividend for the Year 2024 Topsec Technologies Group Inc. proposed final cash dividend/10 shares (tax included) of CNY 0.20000000 for the year 2024. Duyuru • Apr 20
Topsec Technologies Group Inc., Annual General Meeting, May 09, 2025 Topsec Technologies Group Inc., Annual General Meeting, May 09, 2025, at 14:30 China Standard Time. Location: 6F, LCC Office Building, Jinping District, Shantou, Guangdong China Duyuru • Mar 31
Topsec Technologies Group Inc. to Report Q1, 2025 Results on Apr 29, 2025 Topsec Technologies Group Inc. announced that they will report Q1, 2025 results on Apr 29, 2025 Duyuru • Dec 31
Topsec Technologies Group Inc. to Report Fiscal Year 2024 Results on Apr 19, 2025 Topsec Technologies Group Inc. announced that they will report fiscal year 2024 results on Apr 19, 2025 Duyuru • Oct 24
Topsec Technologies Group Inc. Announces Interim Profit Distribution Plan (A Shares) for 2024, Payable on 29 October 2024 Topsec Technologies Group Inc. announced 2024 interim profit distribution plan to be implemented (A shares): Cash dividend per 10 shares (tax included) of CNY 0.18000000. Record date: 28 October 2024; Ex-date: 29 October 2024; Payment date: 29 October 2024. Duyuru • Sep 30
Topsec Technologies Group Inc. to Report Q3, 2024 Results on Oct 30, 2024 Topsec Technologies Group Inc. announced that they will report Q3, 2024 results on Oct 30, 2024 Duyuru • Sep 05
Topsec Technologies Group Inc. Approves Interim Profit Distribution Plan for 2024 Topsec Technologies Group Inc. at the Extraordinary General Meeting of 2024 on 02 September 2024 approved 2024 interim profit distribution plan. The detailed profit distribution plan is as follows: Cash dividend per 10 shares (tax included) of CNY 0.18000000. New Risk • Aug 17
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 0.8% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Duyuru • Aug 17
Topsec Technologies Group Inc. Proposes Interim Cash Dividend for the First Half of 2024 Topsec Technologies Group Inc. proposed interim cash dividend of CNY 0.18000000 per 10 shares (tax included) for the first half of 2024. Reported Earnings • Aug 16
Second quarter 2024 earnings released: CN¥0.10 loss per share (vs CN¥0.11 loss in 2Q 2023) Second quarter 2024 results: CN¥0.10 loss per share (improved from CN¥0.11 loss in 2Q 2023). Revenue: CN¥451.3m (down 16% from 2Q 2023). Net loss: CN¥116.5m (loss narrowed 3.6% from 2Q 2023). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. Duyuru • Jun 29
Topsec Technologies Group Inc. to Report First Half, 2024 Results on Aug 28, 2024 Topsec Technologies Group Inc. announced that they will report first half, 2024 results on Aug 28, 2024 Reported Earnings • Apr 21
Full year 2023 earnings released: CN¥0.33 loss per share (vs CN¥0.18 profit in FY 2022) Full year 2023 results: CN¥0.33 loss per share (down from CN¥0.18 profit in FY 2022). Revenue: CN¥3.12b (down 12% from FY 2022). Net loss: CN¥371.4m (down 281% from profit in FY 2022). Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 33% per year, which means it has not declined as severely as earnings. Duyuru • Mar 30
Topsec Technologies Group Inc. to Report Q1, 2024 Results on Apr 30, 2024 Topsec Technologies Group Inc. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥6.67, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 29x in the Software industry in China. Total loss to shareholders of 66% over the past three years. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥6.87, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 28x in the Software industry in China. Total loss to shareholders of 66% over the past three years. Duyuru • Dec 30
Topsec Technologies Group Inc. to Report Fiscal Year 2023 Results on Apr 20, 2024 Topsec Technologies Group Inc. announced that they will report fiscal year 2023 results on Apr 20, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: CN¥0.031 loss per share (vs CN¥0.19 loss in 3Q 2022) Third quarter 2023 results: CN¥0.031 loss per share (improved from CN¥0.19 loss in 3Q 2022). Revenue: CN¥643.5m (up 10% from 3Q 2022). Net loss: CN¥36.2m (loss narrowed 83% from 3Q 2022). Revenue is forecast to grow 27% 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 24% per year and the company’s share price has also fallen by 24% per year. Duyuru • Oct 24
Topsec Technologies Group Inc. Announces Board Appointments Topsec Technologies Group Inc. held its 4th Extraordinary General Meeting of 2023 on 20 October 2023 approved the appointment of Li Hua as non-independent directors. She Jiangxuan and Jiang Qingzhe as independent directors. Zeng Qinwu as non-employee supervisors. Duyuru • Sep 30
Topsec Technologies Group Inc. to Report Q3, 2023 Results on Oct 31, 2023 Topsec Technologies Group Inc. announced that they will report Q3, 2023 results on Oct 31, 2023 Reported Earnings • Aug 19
Second quarter 2023 earnings released: CN¥0.11 loss per share (vs CN¥0.12 loss in 2Q 2022) Second quarter 2023 results: CN¥0.11 loss per share (improved from CN¥0.12 loss in 2Q 2022). Revenue: CN¥536.0m (up 6.9% from 2Q 2022). Net loss: CN¥120.8m (loss narrowed 14% from 2Q 2022). Revenue is forecast to grow 26% p.a. on average during the next 3 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 29% per year whereas the company’s share price has fallen by 25% per year. Duyuru • Jul 01
Topsec Technologies Group Inc. to Report First Half, 2023 Results on Aug 19, 2023 Topsec Technologies Group Inc. announced that they will report first half, 2023 results on Aug 19, 2023 Duyuru • Jun 09
Topsec Technologies Group Inc., Annual General Meeting, Jun 28, 2023 Topsec Technologies Group Inc., Annual General Meeting, Jun 28, 2023, at 15:00 China Standard Time. Agenda: To consider 2022 work report of the board of directors; to consider 2022 annual accounts; to consider 2022 annual report and its summary; to consider 2022 profit distribution plan; to consider 2022 remuneration for directors; to consider Change of the Company's registered capital and amendments to the Company's articles of association; to consider 2022 work report of the supervisory committee; to consider 2022 remuneration for supervisors; and to consider reappointment of 2023 audit firm. Reported Earnings • Apr 23
Full year 2022 earnings released: EPS: CN¥0.18 (vs CN¥0.20 in FY 2021) Full year 2022 results: EPS: CN¥0.18 (down from CN¥0.20 in FY 2021). Revenue: CN¥3.54b (up 5.7% from FY 2021). Net income: CN¥205.1m (down 11% from FY 2021). Profit margin: 5.8% (down from 6.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 30% 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 25% per year whereas the company’s share price has fallen by 22% per year. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Deputy General Manager & Non-Independent Director Jiyang Kong was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2022 earnings released: CN¥0.19 loss per share (vs CN¥0.072 profit in 3Q 2021) Third quarter 2022 results: CN¥0.19 loss per share (down from CN¥0.072 profit in 3Q 2021). Revenue: CN¥583.3m (down 15% from 3Q 2021). Net loss: CN¥214.2m (down 342% from profit in 3Q 2021). 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 22% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥10.48, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 28x in the Software industry in China. Total loss to shareholders of 32% over the past three years. Reported Earnings • Aug 21
Second quarter 2022 earnings released: CN¥0.12 loss per share (vs CN¥0.08 loss in 2Q 2021) Second quarter 2022 results: CN¥0.12 loss per share (down from CN¥0.08 loss in 2Q 2021). Revenue: CN¥501.5m (up 14% from 2Q 2021). Net loss: CN¥140.9m (loss widened 63% from 2Q 2021). Over the next year, revenue is forecast to grow 41%, compared to a 31% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Reported Earnings • Apr 30
Full year 2021 earnings released: EPS: CN¥0.20 (vs CN¥0.35 in FY 2020) Full year 2021 results: EPS: CN¥0.20 (down from CN¥0.35 in FY 2020). Revenue: CN¥3.35b (down 41% from FY 2020). Net income: CN¥230.0m (down 43% from FY 2020). Profit margin: 6.9% (down from 7.0% in FY 2020). Over the next year, revenue is forecast to grow 42%, compared to a 33% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥8.77, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the Software industry in China. Total loss to shareholders of 42% over the past three years. Board Change • Apr 27
High number of new directors There are 7 new directors who have joined the board in the last 3 years. Deputy General Manager & Non-Independent Director Jiyang Kong was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 18
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: CN¥0.36 (up from CN¥0.35 in FY 2020). Revenue: CN¥3.54b (down 38% from FY 2020). Net income: CN¥413.2m (up 3.3% from FY 2020). Profit margin: 12% (up from 7.0% in FY 2020). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 5.4%. Over the next year, revenue is forecast to grow 40%, compared to a 33% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 1% per year. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.072 (vs CN¥0.08 loss in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: CN¥685.0m (down 51% from 3Q 2020). Net income: CN¥88.6m (up CN¥183.1m from 3Q 2020). Profit margin: 13% (up from net loss in 3Q 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 20
Second quarter 2021 earnings released: CN¥0.08 loss per share (vs CN¥0.042 loss in 2Q 2020) The company reported a poor second quarter result with increased losses, weaker revenues and weaker control over costs. Second quarter 2021 results: Revenue: CN¥440.3m (down 73% from 2Q 2020). Net loss: CN¥86.6m (loss widened 73% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥21.11, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 27x in the Electrical industry in China. Total returns to shareholders of 88% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.72 per share. Reported Earnings • May 01
First quarter 2021 earnings released: CN¥0.08 loss per share (vs CN¥0.14 loss in 1Q 2020) The company reported a soft first quarter result with weaker revenues and control over costs, although losses reduced. First quarter 2021 results: Revenue: CN¥265.0m (down 64% from 1Q 2020). Net loss: CN¥95.4m (loss narrowed 39% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥23.11, the stock is trading at a trailing P/E ratio of 74.5x, up from the previous P/E ratio of 61.3x. This compares to an average P/E of 33x in the Electrical industry in China. Total returns to shareholders over the past three years are 48%. Is New 90 Day High Low • Nov 14
New 90-day low: CN¥20.02 The company is down 16% from its price of CN¥23.77 on 14 August 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 10.0% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: CN¥21.05 The company is down 10.0% from its price of CN¥23.50 on 31 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 6.0% over the same period. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥211.3m, down 39% from the prior year. Total revenue was CN¥6.59b over the last 12 months, up 4.8% from the prior year. 
