Bairong Inc. achieves record revenue and adjusted net profit in 2021
BEIJING, April 2, 2022 /PRNewswire/ — Bairong Inc. (“Bairong” or “the Company”, 6608.HK), a leading independent AI-powered technology platform in China, released its 2021 annual report with new records for revenue and adjusted net profit. Its total revenue and adjusted net profit reached 1.623 billion RMB and 141 million RMB in 2021, representing annual growth of 43% and 76%, respectively.
Annual Report Highlights for the Year Ended December 31, 2021:
- Revenue from intelligent analytics and operations services, its largest business segment, grew 38% year-over-year to reach 737 million RMBthe best result of the last four years.
- Revenues from the other two segments also set new records. Precision Marketing Services revenue grew 60% year-on-year for 422 million RMB.
- Insurance distribution services revenue increased 37% year-on-year to 464 million RMBof which life and health insurance premiums accounted for the vast majority, with an average duration of insurance greater than 10 years and a renewal rate greater than 95%.
- Net cash flow from operating activities amounted to 265 million RMB, a 27% year-on-year increase. Cash equivalents and financial assets total 3.95 billion RMB.
Expand customer base and strengthen relationships with key customers
Bairong’s customer base includes the majority of state-owned banks, more than 900 regional banks, almost all China consumer credit companies and large insurance companies. At the end of 2021, the Company had provided services to 5,700 customers of financial service providers (FSPs) in China, including more than 3,300 paying PSF customers, an increase of 28% over one year. Average revenue per user (ARPU) of top FSP customers increased 25% year-over-year to reach 5.12 million RMB. The retention rate for key FSP customers reached 92%, and a net dollar expansion rate of 118% for KSP customers was achieved.
Bairong also strengthened its relationships with key customers. Take the example of a large state-owned bank. Bairong completed methodological research for a bank-wide retail business growth project in mid-2021. It also successfully integrated an AI-enabled voice robot service function into the intelligent operations of the bank’s retail business line, which included “Interactive Voice Response (IVR) + Manual” mode and IVR. Compared to previous purely manual working conditions, these two modes can help the bank reduce its costs by about 50% and 90% respectively.
Besides organic growth, Bairong has also acquired national management consulting and digital marketing cloud platforms. Its biggest merger and acquisition last year was the acquisition of Beijing All Union Technology Corp. (“All Union”).
Invest in R&D to strengthen technological innovation
Last year, Bairong’s total R&D investment reached 252 million RMB, representing 16% of its total turnover. Its R&D focuses on innovation in vertical areas including machine learning, AI-enabled voice robot, and private computing.
Bairong won five national invention patents last year. To date, she holds more than 150 copyrights and software patents. In 2022, the Company plans to expand its machine learning technology advantages, cooperate in research and development, optimize the application of ORCA, a machine learning platform for financial scenarios, ‘improve customer return on investment and other business objectives, and strengthen its competitive barriers.
Undervalued by the market
Compared to its benchmark fintech and SaaS companies listed in the United States and Hong Kong, the Company believes that it is significantly undervalued by the market. At present, Bairong’s P/E ratio is around 0.8, 150% lower than the median P/E ratio of the SaaS industry. Bairong’s cash alone is currently 108% of its current market value. Bairong’s current PS ratio is also well below the SaaS industry average in the hong kong stock market.
The annual report demonstrated that Bairong has maintained its robust growth in 2021. With its innovative technologies, deep knowledge and wealth of experience, Bairong believes it will continue to contribute to and benefit from the digital transformation of the banking industry by China.
About Bairong Inc.
Founded in March 2014Bairong is a leading AI-powered independent technology platform in China serving more than 5,700 financial service provider customers. Bairong was the largest independent provider of big financial data analytics solutions in China. Adhering to the mission of empowering every financial service provider China with intelligent and comprehensive data analytics, Bairong has built a cloud-native technology platform that supports the full business cycle of FSP customers, including intelligent analytics, decision support, consumer smart operating and wealth management solutions, enabling them to improve risk management capability, foster user activity and operational efficiency. Bairong also provides precision marketing and insurance distribution services that enable FSP customers to reach and serve their target customers more effectively.
For more information, please visit Bairong.
SOURCE Bairong Inc.