Brief Introduction

Linkage software is committed to the application of emerging technologies in the financial industry, providing customers with consulting, design, development, maintenance and other comprehensive software services.

The company has a strong competitive advantage in the field of financial technology. Since 2004, the company has cooperated with Nomura, the world's top financial service technology provider, to participate in the construction of a large number of important financial core systems and master massive data processing technology. It has gained a good market position and reputation in the field of high-end software development services in Japan's financial industry.

According to statistics, the core business systems of many Japanese enterprises have been used for a long time, which makes their information systems more complex and black box. In particular, financial institutions and large enterprises continue to use the core business systems that have been built for many years, of which 20% have been used for more than 21 years, and up to 60% by 2025. Most of these systems use mainframe or old technology architecture, which has high maintenance cost and slow progress of digital transformation.

Many Japanese enterprises will take 2025 as their goal, hoping to solve the problem of system upgrading by using new technologies; at the same time, they hope to use emerging technologies such as cloud computing to reduce the construction and operation costs of IT systems and the construction period, so as to realize digital transformation. It is expected that the proportion of IT investment in digital transformation by these financial institutions and large enterprises will increase from 10% in 2017 to 40% in 2025.

In China, the company actively promotes the transformation and upgrading of the securities industry. It is a well-known IT supplier in the industry, with more than 80 securities companies and related enterprises including GuotaiJunan, Huatai Securities, China CITIC construction investment, etc.

According to the operating data of securities companies released by China Securities Association, in the past three years, the business income and profit of 131 securities companies in China have been on the decline as a whole. Securities companies must constantly innovate business to achieve profit growth. Against this background, major securities companies began to rely on financial technology empowerment, optimize and upgrade software and hardware systems, and seek breakthroughs in reducing costs, improving operational capabilities, and expanding innovative financial products and sales channels.

The company's advantages are as follows:

1.Software development service capability advantage.

2.Cost control advantages.

3.Talent advantage.

4.Customer resource advantage.

Company Overview

Full name Linkage Software Co.,LTD
Abbreviations LZRJ
Code 688588
Founded 2003-01-03
Listing 2020-05-11
Domicile Suzhou City,Jiangsu Province
STAR Theme New Generation IT
CSRC Sector Information transmission, software and IT
Has weighted voting rights structure? No



  2020 2019 2018
Earnings Per Share 0.5192 0.4162 0.2537
R&D expenditure as a % of operating revenue 9.42% 9.06% 9.15%
Operating Revenue 630.09 596.62 467.05
Net Income 200.75 149.84 91.34

Income Statement (Unit: RMB mn)

  2020 2019 2018
Operating Revenue 630.09 596.62 467.05
Operating Costs 328.70 330.29 275.69
Operating Income 222.59 163.37 98.76
Pretax Income 222.60 163.37 98.72
Income Tax 21.87 13.86 7.49
Net Income 200.75 149.84 91.34

Balance Sheet(Unit: RMB mn)

  2020 2019 2018
Current Assets-Total 953.69 488.74 413.70
Non-current Assets-Total 350.04 301.55 271.74
Total Assets 1,303.73 790.29 685.44
Current Liabilities-Total 93.57 104.58 92.38
Non-current Liabilities-Total 8.69 4.66 4.72
Total Liabilities 102.26 109.24 97.10
Stockholder's Equity
Share Capital 751.76 366.72 366.72
Retained Profits 448.39 312.99 219.95
Total Owners' Equity 1,200.15 679.71 586.67

Cash Flow Statement (Unit: RMB mn)

  2020 2019 2018
Net Cash Flows-Operating 169.32 136.57 92.65
Net Cash Flows-Investing -407.99 -17.53 -54.75
Net Cash Flows-Financing 308.30 -72.00 -36.00

Top 10 Shareholders

Name No. of Shares Held (mn) % of Shares Held
张宝泉 79.43 19.86%
吴艳芳 66.68 16.67%
新余华达启富投资中心(有限合伙) 28.62 7.15%
新余华盈投资中心(有限合伙) 27.22 6.80%
新余华富智汇投资中心(有限合伙) 26.45 6.61%
天风证券-苏州工业园区凌志软件股份有限公司-第一期员工持股计划-天风证券天浩18号定向资产管理计划 9.20 2.30%
周颖 7.72 1.93%
梁启华 5.78 1.45%
上海汉理前泰创业投资合伙企业(有限合伙) 5.36 1.34%
新余富汇投资中心(有限合伙) 5.05 1.26%
As of 2021-03-31

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