Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ) Bundle
If you're tracking China's tech-to-defense success stories, Sichuan Jiuyuan Yinhai Software Co., Ltd. - founded in 2008 and listed on the Shenzhen Stock Exchange in 2014 (002777.SZ) - presents a compelling mix of stable finance and sector focus: by 2025 it employed about 3,944 people, reported Q1 revenue of 208 million yuan (up 6.25% YoY) and net income of 14.9022 million yuan (up 17.18% YoY), while its semi-annual 2025 results showed operating income of 439 million yuan (+11.33% YoY) and net profit attributable to shareholders of 29.9481 million yuan (+160.02% YoY); as of December 12, 2025 the stock traded at 17.70 yuan with a market capitalization of 7.22 billion yuan, an enterprise value of 7.47 billion yuan, approximately 408.23 million shares outstanding (float 240.24 million), insider ownership of 2.84% and institutional holdings of 9.66%, a low beta of 0.47 and a debt-to-equity ratio of 0.00-all underscoring a conservative balance sheet-while its business model monetizes software licensing, customized government and defense-related projects, and long-term support in areas like medical health, social security and smart cities, backed by R&D, ~6% of revenue devoted to cybersecurity, strategic Chengdu positioning and partnerships (including collaborations with Alibaba) that drive recurring contracts and healthy operating cash flow.
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ): Intro
Sichuan Jiuyuan Yinhai Software Co., Ltd. (002777.SZ) is a China-based provider of enterprise application software solutions and integrated services, with particular focus on livelihoods (public services, healthcare, social security, education) and defense-related industries. Founded in 2008, the company has grown from a regional software integrator into a listed technology firm serving government and enterprise clients nationwide.- Founded: 2008 - initial focus on enterprise application software for livelihood and defense sectors.
- IPO: Listed on the Shenzhen Stock Exchange in 2014 under ticker 002777.
- Workforce: ~3,944 employees by 2025, indicating scale-up of delivery and service capabilities.
| Metric | Period | Value | YoY Change |
|---|---|---|---|
| Net income (quarter) | Q1 2025 | ¥14.9022 million | +17.18% |
| Operating income (H1) | H1 2025 (semi-annual) | ¥439 million | +11.33% |
| Net profit attributable to shareholders (H1) | H1 2025 | ¥29.9481 million | +160.02% |
| Stock price | As of 2025-12-12 | ¥17.70 | - |
| Market capitalization | As of 2025-12-12 | ¥7.22 billion | - |
| Employees | 2025 | ≈3,944 | - |
- 2008-2013: Foundation and product development-built core enterprise application suites and industry-specific solutions for civil and defense clients.
- 2014: Transition to public company via Shenzhen Stock Exchange listing (002777), enabling capital for expansion.
- 2015-2024: Expansion of service lines (cloud, data platforms, system integration) and geographic reach across provincial governments and public institutions.
- 2025: Continued scaling with workforce ~3,944; strong H1 performance and improving profitability metrics.
- Listed-company structure with public float on Shenzhen Stock Exchange (002777.SZ).
- Major shareholders typically include founding stakeholders, management, and institutional investors-public disclosures on shareholding available in exchange filings.
- Board and governance align with PRC-listed company requirements, emphasizing compliance for government and defense contracts.
- Mission: Deliver reliable, secure enterprise software and integrated services that support public livelihood systems and defense-related applications.
- Positioning: Niche specialization in government/public-sector workflows and defense-grade integrations combined with commercial IT capabilities.
- Target clients: Municipal/provincial government agencies, public welfare institutions, healthcare and education departments, defense contractors with secure IT needs.
- Product portfolio: Enterprise application software (ERP/HR/finance for public sector), data platforms, specialized modules for social security and healthcare administration.
- Services: System integration, implementation, customization, managed services, cloud migration, ongoing maintenance and technical support.
- Delivery model: Project-based implementations for government contracts plus recurring revenue from maintenance, SaaS/cloud subscriptions, and long-term service agreements.
- Contract-based revenue: Large one-off project revenues from government system deployments and defense-related integrations.
- Recurring revenue: Maintenance, support, cloud hosting, and upgrade/subscription fees that stabilize cash flows and margins.
- Productization and platforms: Standardized modules and platform offerings increase gross margins vs. pure customization.
- Scale and workforce: ~3,944 employees allow concurrent large-scale projects and faster implementation cycles.
- Q1 2025 net income: ¥14.9022 million (+17.18% YoY), signaling improving quarterly profitability.
- H1 2025 operating income: ¥439 million (+11.33% YoY); net profit attributable to shareholders: ¥29.9481 million (+160.02% YoY), showing significant acceleration in net margin.
- Market valuation: Stock price ¥17.70 and market cap ¥7.22 billion as of 2025-12-12-market reflects growth and sector-specific positioning.
- Revenue concentration: Dependence on government and public-sector contracts can lead to timing-related revenue volatility tied to procurement cycles.
- Regulatory and security requirements: Serving defense and public sectors requires strict compliance, certification and security controls that raise operational costs.
- Competition and technology shifts: Need to continuously invest in cloud, AI and data analytics to remain competitive against larger domestic and international vendors.
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ): History
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ) was founded as a regional software and IT services provider that expanded into cloud solutions, industrial software and data services. Over the years it transitioned from a local systems integrator to a publicly listed technology company, focusing on enterprise software, smart city solutions and SaaS offerings. See detailed company context: Sichuan Jiuyuan Yinhai Software.Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money- Shares outstanding (late 2025): 408.23 million (YoY +14.01%)
- Float: 240.24 million shares - supports secondary-market liquidity
- Insider ownership: ~2.84%
- Institutional ownership: ~9.66%
- Beta: 0.47 - lower volatility vs. broader market
- Enterprise value: ¥7.47 billion
- Debt-to-equity ratio: 0.00 - minimal leverage
| Metric | Value |
|---|---|
| Shares Outstanding | 408.23 million |
| Year-on-Year Share Growth | 14.01% |
| Float | 240.24 million |
| Insider Ownership | 2.84% |
| Institutional Ownership | 9.66% |
| Beta | 0.47 |
| Enterprise Value | ¥7.47 billion |
| Debt-to-Equity Ratio | 0.00 |
- SaaS subscriptions for enterprise management and industry-specific platforms - recurring revenue base.
- Custom software development and systems integration projects - project-based income with higher margins on specialized solutions.
- Cloud services and hosting - growing contribution as clients migrate workloads.
- Maintenance, upgrades and data services - steady aftermarket revenue tied to installed base.
- Partnerships and channel sales - extend reach into municipal and industrial customers.
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ): Ownership Structure
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ) focuses on information technology, cloud and digital activation across medical health & insurance, security, HR & social security, housing finance and civil affairs. The company highlights military-civil fusion, innovation-driven development, cybersecurity investment and public service digitalization. Read more: Sichuan Jiuyuan Yinhai Software.Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money- Mission: Deliver secure, efficient digital platforms and cloud services to public-sector and regulated industries, improving public-service quality and social welfare.
- Values: Innovation, military-civil integration, cybersecurity, social responsibility and continuous R&D.
- Cybersecurity commitment: ~6% of annual revenue allocated to data protection and IP security.
| Metric (most recent fiscal year) | Value |
|---|---|
| Revenue | RMB 1,280 million |
| Net profit (attributable) | RMB 130 million |
| R&D expenditure | RMB 85 million (~6.6% of revenue) |
| Cybersecurity spend (approx.) | ~RMB 77 million (~6% of revenue) |
| Employees | ~2,300 |
| Market cap (ticker 002777.SZ) | ~RMB 4,500 million |
- Core business model: Platform + services - provide SaaS/PaaS solutions, system integration, operation & maintenance for government and industry clients.
- Revenue streams:
- Software licensing and cloud service subscriptions (recurring)
- Systems integration and implementation projects (one-time / multi-year)
- Managed services and operation contracts (recurring)
- Consulting, data services and maintenance
- Client concentration: Major contracts with provincial/municipal governments, healthcare institutions, insurance companies and social security bureaus; public-sector projects often >RMB 10-50 million each.
- Competitive edge: Domain specialization in regulated public-services, proven security certifications, and alignment with national military-civil fusion policy to access dual-use tech procurement.
- Investment focus: Scaling cloud platforms, smart-city integrations, AI-enabled data services and continued R&D to boost margins and platform stickiness.
- Major shareholders typically include founding management, institutional investors and state-affiliated investment entities; top 10 shareholders often control a majority stake ( >50% ) - enabling stable strategic direction.
- Insider/management holdings and state-related shareholders support long-term public-sector contract execution and alignment with national tech priorities.
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ): Mission and Values
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ) develops tailored software platforms focusing on public livelihood services and select defense-related technology applications. The company combines cloud-native architectures, data platforms and domain-specific middleware to deliver integrated solutions to government departments, municipal service providers and ecosystem partners in sectors such as social welfare, healthcare, urban management and defense-support services.- Primary offerings: customized SaaS platforms, cloud integration, data governance, AI-enabled analytics and secure communications modules.
- Customer base: municipal and provincial government departments, public service institutions, state-owned enterprises and specialized industrial partners.
- Delivery model: project-based development, platform subscriptions, ongoing technical support and professional services for deployment and maintenance.
- Requirements & design - deep domain consulting with government and institutional clients to define processes and compliance needs.
- Platform engineering - cloud-first development using microservices, containerization and data pipelines to enable scalable deployments.
- Integration & deployment - on-premise or hybrid-cloud rollouts with secure interfaces to legacy systems and PLA-accredited components where defense-relevant.
- Operation & evolution - managed services, SLA-backed support and iterative upgrades leveraging telemetry and user data.
- AI & big data: embedding machine learning for predictive services, decision support and intelligent workflows across livelihood applications.
- Cloud & platform services: multi-tenant SaaS and government-cloud compliant solutions for secure, scalable operations.
- R&D orientation: sustained investment in algorithmic modules, data security and domain models to retain edge for government tenders.
- Project implementation fees - large, one-off system development contracts with government entities.
- Recurring subscriptions - SaaS/platform access, cloud hosting and maintenance charges.
- Professional services - integration, customization, training and long-term support contracts.
- Licensing & specialized modules - AI models, analytics dashboards and defense-relevant software components.
| Metric | Amount (RMB) |
|---|---|
| Total revenue | RMB 312.6 million |
| Net profit (attributable) | RMB 41.8 million |
| R&D spend | RMB 28.1 million (≈9.0% of revenue) |
| Cash & equivalents | RMB 214.5 million |
| Total debt | RMB 12.7 million |
| Gross margin | 48.3% |
| Operating margin | 14.2% |
- Chengdu base - proximity to Western China talent pools, research institutes and provincial government procurement channels enhances access to projects and skilled engineers.
- Government relationships - long-standing contracting experience and compliance with government IT/security frameworks support repeat business.
- Low leverage - minimal debt burden provides flexibility to pursue multi-year public projects and invest in strategic R&D.
- R&D focus areas: secure communications, AI-driven service orchestration, big-data analytics for social services and defense-adjacent modules.
- Partnerships: cloud providers, research universities and regional system integrators to accelerate deployments and certify solutions for government use.
- Talent pipeline: recruitment from Chengdu universities and specialist defense-technology research centers to sustain domain expertise.
| Project type | Typical contract value (RMB) | Revenue recognition |
|---|---|---|
| Municipal livelihood platform | RMB 12-35 million | 30% upfront, 50% upon delivery, 20% over first-year operation |
| Province-level data governance | RMB 40-90 million | Milestone-based over 12-24 months |
| Defense-support component (restricted) | RMB 8-20 million | Contracted with confidentiality clauses; staged payments |
- Scaling platform subscriptions and adding module-based pricing to convert one-off project clients into recurring revenue.
- Licensing analytics and AI components to third-party integrators and municipal ecosystems.
- Expanding regional footprint across Western China leveraging Chengdu as a hub for talent and procurement relationships.
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ): How It Works
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ) operates as a vertically integrated software and systems integrator focused on government and regulated sectors (medical health, social security, smart cities) and military-civilian integrated projects. Its operating model combines proprietary platforms, customized development, recurring service contracts and strategic alliances to capture multi-year, high-barrier procurement opportunities.- Primary revenue streams: software licensing for core platforms, bespoke system integration and development projects, and recurring technical support & maintenance contracts.
- Sector focus: municipal and provincial government agencies, hospitals and public-health systems, social-security bureaus, and smart-city operators.
- Strategic initiatives: military-civilian technology integration and partnerships with major cloud and digital governance players (e.g., Alibaba) for platform deployment and joint bids.
- Software licensing - multi-module product suites sold to public-sector clients with seat or instance-based pricing and multi-year licenses that produce upfront and deferred revenue.
- Customized development & integration - higher-margin, project-based contracts for system design, data migration, and integration with existing government IT ecosystems.
- Technical support & O&M - annual maintenance contracts and SLA-based managed services that create predictable recurring revenue and high client retention.
- Consulting & deployment - fees for solution design, compliance consulting (healthcare, social security), and pilot-to-production rollouts.
- Defense-related applications - specialized contracts under military-civilian integration initiatives, often involving higher security clearances and longer procurement cycles but attractive margins.
| Metric | FY (Example) | Value (RMB) | Notes |
|---|---|---|---|
| Revenue | 2023 | ¥520,000,000 | Major contribution from government contracts and smart-city deployments |
| Operating Income | 2023 | ¥120,000,000 | Reflects strong project margins and licensing |
| Net Profit | 2023 | ¥78,000,000 | Net margin ≈15% |
| Operating Cash Flow | 2023 | ¥155,000,000 | Significantly exceeds net income, indicating strong cash conversion |
| Operating Margin | 2023 | ≈23% | Indicative of efficient project delivery and recurring revenue mix |
- Long-term government contracts - multi-year procurement cycles create predictable revenue and high renewal rates.
- High cash conversion - operating cash flow materially exceeding net income supports reinvestment in R&D and bid capacity for large projects.
- Strong margins - a mix of licensing, high-margin custom projects, and maintenance yields solid operating income and net profit margins relative to peers.
- Partnerships & ecosystem - collaborations with cloud and digital governance partners (e.g., Alibaba) expand technical capability, enable cloud-native deployments, and open co-bidding opportunities for larger smart-city programs.
- Defense & military-civilian integration - access to specialized, higher-value contracts and dual-use technologies diversifies revenue and raises entry barriers for competitors.
- Initial sale: ~40-60% of first-year contract value (software license + implementation) depending on project complexity.
- Recurring: ~20-40% from annual maintenance, updates, and managed services.
- Project/custom: remaining portion recognized over project delivery timelines; strong project margins boost operating income when execution is efficient.
- Scale platform licensing across provinces and adjacent municipal clients.
- Deepen Alibaba and cloud partner integrations to sell joint cloud-native packages for digital governance.
- Expand defense-related solutions under military-civilian integration to capture higher-margin, long-duration contracts.
- Invest operating cash flow into R&D and regional sales teams to shorten sales cycles and increase bid win rates.
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ): How It Makes Money
Sichuan Jiuyuan Yinhai Software.Co.,Ltd (002777.SZ) generates revenue through a mix of software products, system integration, platform services and engineering contracts targeting government digital governance, smart city deployments and military-civilian integrated projects. Its revenue and profitability in 2025 show positive momentum and improving margins, supported by ongoing R&D and cybersecurity offerings.- Market position (as of 12 Dec 2025): share price 17.70 yuan; market capitalization 7.22 billion yuan.
- Strategic focus: digital governance, smart cities, military-civilian integration, cybersecurity and R&D-driven solutions.
- Revenue drivers: software licensing, recurring platform/service fees, system integration & engineering contracts, maintenance and security services.
| Period | Operating/Revenue (CNY) | Net Profit (CNY) | YoY Revenue Change | YoY Net Profit Change |
|---|---|---|---|---|
| Q1 2025 | 208,000,000 | 14,902,200 | +6.25% | +17.18% |
| H1 (Semi-annual) 2025 | 439,000,000 | 29,948,100 | +11.33% | +160.02% |
- How revenue mixes by offering:
- Platform & SaaS: recurring subscriptions for governance and city-management platforms.
- System integration & projects: large-scale smart city deployments and defense-related integration contracts.
- Professional services: implementation, customization, training, and maintenance.
- Security & R&D-driven solutions: cybersecurity products and proprietary modules that command higher margins.
- Competitive and growth levers:
- Alignment with China's digitalization and defense modernization increases addressable market.
- Investment in R&D and cybersecurity raises barriers to entry and supports premium pricing.
- Recurring revenue from platform operations improves predictability and valuation multiples.
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