Shanghai New Centurion Network Information Technology (605398.SH) has issued a profit warning, expecting a year-on-year decrease in net profit for the year 2024 of between 61.39% and 69.78%.

Shanghai New Centurion Network Information Technology (605398.SH) released its performance forecast for 2024, expecting a net profit attributable to shareholders of the listed company of 18 to 23 million yuan, a decrease of 61.39% to 69.78% compared to the previous year. In 2024, as the company's client business systems undergo structural transformation, transitioning from foreign brands that dominated the market to innovative products, the sales revenue of original factory software, hardware, and services of non-innovative products have been affected. Additionally, with adjustments in customer IT maintenance service demand and budgets, the revenue and profitability of the company's own service business continue to be under pressure. State-owned enterprises have been continuously optimizing and adjusting their compliance management systems for bidding and procurement, requiring the company to be more proactive and strict in project delivery time and regulation, delaying the realization of revenue and gross profit from internal services as a result. Furthermore, in order to achieve its development strategy in the field of artificial intelligence, the company is actively exploring new directions to effectively integrate AI large models with IT maintenance scenarios. In 2024, the company increased its investment in research and development projects such as intelligent platforms for large-scale operation models and cloud management platforms for innovative databases, aiming to optimize business efficiency and upgrade products and services through the development of AI technology. This will further deepen the company's business layout in the field of artificial intelligence, driving the enhancement of its core competitiveness.