Steady growth in overall business Maintained a double-digit growth in Three New business

Results Highlights:

• Revenue amounted to approximately RMB7,891 million, an increase of 2.0%.
• Revenue from the Three New business[1] amounted to approximately RMB2,899 million, an increase of 12.7%, accounting for approximately 36.7% of total revenue.
• Adjusted net profit[2] for the Year was approximately RMB851 million and adjusted net profit margin was 10.8%.
• Operating cash flow was RMB582 million, an increase of 5.9%.
• Proposed a final dividend of HK$0.412 per Share, representing a dividend payout ratio equivalent to 40% of the adjusted net profit for the Year. Including the special dividend of HK$0.6 per Share declared in December 2023, the total dividend for the Year will be HK$1.012 per Share.

HONG KONG SAR - Media OutReach Newswire - 19 March 2024- AsiaInfo Technologies Limited ("AsiaInfo Technologies" or the "Company", which together with its subsidiaries, is referred to as the "Group"; HKEX stock code: 1675), is pleased to announce its annual results for the year ended 31 December 2023 (the "Year"). Overall results In 2023, AsiaInfo Technologies achieved a steady growth in revenue to RMB7,891 million, representing a year-on-year increase of 2.0%. Though the BSS and digital intelligence-driven operation businesses were under pressure, benefiting from the rapid growth of the OSS and vertical industry digitisation businesses, the overall revenue remained stable. The Three New business recorded a faster year-on-year growth of 12.7%, with its revenue amounting to RMB2,899 million, enlarging its proportion of the total revenue to 36.7%. Meanwhile, the Company stepped up its efforts in cost reduction and efficiency enhancement, maintaining a stable gross profit margin of 37.7%. Impacted by the non-operating items such as the impairment of goodwill and intangible assets, the net profit for the Year fell by 37.9% to RMB512 million. However, excluding the impact of the said non-operating items, the Company's adjusted net profit for the Year was RMB851 million, and the adjusted net profit margin sustained a double-digit figure of 10.8%, maintaining a sound profitability. Operating cash flow was RMB582 million, representing a year-on-year increase of 5.9%. Commenting on the Group's results in 2023, Dr. TIAN Suning, Chairman and Executive Director of the Group, said, "In the past year, the external economic situation was severe and complex, with ongoing uncertainties during the economic recovery. Meanwhile, customers in the telecommunications industry continued to ramp up efforts to reduce costs, boost efficiency and enhance their proprietary research and development ("R&D") capabilities. Against this backdrop, the Company's traditional business faced a real challenge. Therefore, the Company kept on developing new businesses on the one hand, and innovatively upgraded its traditional business using new technologies such as AIGC/ GPT on the other hand, to offset the pressure brought by the traditional business and maintain a healthy and stable business development. In 2023, the Company attached a higher importance to cash flow health and strengthened its refined cost management to ensure the Company's long-term sustainable development. Excluding the non-operating items, the Company's profit for the Year continued to grow, and its operating cash flow also improved as compared to the previous year, continuously creating value for shareholders, customers and society." The Board, after taking into consideration of various factors, particularly the cash returns of shareholders and the non-cash impact of the asset impairments, has decided to propose the distribution of a final dividend of HK$0.412 per Share for 2023 at the annual general meeting, representing a dividend payout ratio equivalent to 40.0% of the adjusted net profit for the Year. Including the special dividend of HK$0.6 per Share declared in December 2023, the total dividend for 2023 will be HK$1.012 per Share. OSS business maintained a rapid growth, BSS business faced a real challenge In the OSS business, the Company continued to seize market opportunities in areas such as computing power network, autonomous network, and ToB 5G networks with industry leading technology and products to promote rapid business growth. AsiaInfo's AN CoPilot efficiently supports telecommunication operators to advance to L4/ L5 high-level autonomous networks by building a model specific for autonomous network, network augmented cognition services and the toolkits. In 2023, the revenue from the OSS business reached RMB832 million, up by 24.9% year on year. In the BSS business, facing challenges from its customers' intensifying efforts to reduce costs, enhance efficiency, and enhance proprietary R&D capabilities, the downward pressure on the traditional BSS business is increasing. The Company capitalised on the trend and actively deployed...