TigerResearch/tigerbot-earning-plugin huggingface dataset:
deeply exploring customers' refined management needs though challenged by the changing external market and depressed real estate industry. At the same time, the Company continued to improve its comprehensive budget control covering sectors from strategy to execution, focusing on improving the cost-efficiency ratio and input-output ratio to drive steady growth in operating revenue and net profit.
(2) Detailed operation of the principal businesses
During the Reporting Period, the Company successfully carried out its principal businesses as planned, details of which are as follows:
1) Construction cost segment:
In 2022, the construction cost business achieved an operating income of RMB 4.773 billion, representing a year-on-year increase of 25.16%. During the Reporting Period, the Company signed cloud contracts of RMB 3.901 billion, representing a year-on-year increase of 25.84%. As at the end of the Reporting Period, cloud contract liabilities related to construction cost business amounted to RMB 2.675 billion, representing an increase of 30.69% from the beginning of the year. By the end of 2022, nationwide cloud transformation has been fully completed for the construction cost business. The cloud revenue recognized during the Reporting Period was RMB 3.275 billion, representing a year-on-year increase of 27.89%.
As the digital transformation of the construction industry has entered a deep-water zone, customers have been demanding more refined cost management, bringing the construction cost business into a transformation from cost estimation to whole life cycle digital cost management, and from position-end tools to enterprise-level cost management solutions. Under the subscription model, the Company has kept improving the cost effectiveness of our products and services, and always focus on customers to help them succeed. The application rates of the cloud- based pricing and cloud-based quantity takeoff products and engineering information services such as Gldjc.com and Guangcai Assistant hit new highs. As at the end of the Reporting Period, the Company served customers with full range of pricing and quantity takeoff products in all regions of the country on a subscription basis, with cloud transformation rate exceeding 90% and the renewal rate of 80% for 2022, remarking a complete cloud transformation in construction cost business.
Product line| Operating income from cloud services| YoY change| Cloud contract| YoY change| Year-end outstanding contract liabilities from cloud transformation
 Cloud-based pricing|1047|16.16%|1120|5.38%|781
 Cloud-based quantity takeoff|1003|20.86%|1127|13.79%|767
 Engineering information|833|14.70%|972|15.16%|698
 New digital cost solutions|393|277.71%|682|236.07%|429
 Total|3275|27.89%|3901|25.84%|2675
Notes: The new digital cost solution inherits and upgrades the market-based comprehensive unit pricing in cloud-based pricing products, the Enterprise Materials Library, Enterprise Indicators Library and Indicator Artifact App in the pool of engineering information products. Therefore, the cloud contracts and cloud revenue for the cloud- based pricing and engineering information products have been retrospectively adjusted for 2021.
Against the backdrop of the market-based transformation of cost estimation, the Company continued to promote the conceptual upgrade of “making cost estimation better with warmth in science and technology”. New digital cost solutions have become a new driving force. The Company continuously expanded the number of benchmark customers and projects, focusing on the cost control for construction organizations and developers, creating new growth potential for construction cost business. When it comes to the full range of quantity takeoff products, the Company continued to explore the transformation towards full life cycle instead of budget quantity takeoff. 3D BIMQ has been deeply integrated with Glodon NOVADesign architecture products. The integrated quantity calculation and design products were launched into the market with the localization upgrading strategy. The engineering information service was upgraded from material price information service to cost information service business. We also released the Index Network products to help enterprises compare and benchmark with excellent typical projects in the same industry in order to improve their own refined cost management. Cloud pricing GCCP6.0 released services such as collaboration model, algorithm for enterprise to determine the comprehensive unit price and quality control rules to further improve organizational efficiency and the quality of achievement documentation.
In terms of the service, the construction cost business continued to promote the development of digital systems, upgraded the call center to the customer operation center. The number of intelligent customer service consulting has reached 1.5 times of the number of manual support, and the success rate of intelligent customer service for mainstream products has risen to more than 80%. At the same time, we continued to promote the online operation system in relation to construction cost business, and explored diversified operation plans by using new technologies such as online live streaming and integrated media centers.
During the Reporting Period, the digital transaction business, originally known as e-government business, achieved operating income of RMB 400 million, of which the proportion of operation and maintenance and operation income from the public resources transaction management system continued to increase. The market- oriented bid analysis and review products achieved rapid growth. The Company successfully delivered several major projects such as Tibet Project, Shanghai Project and Shenzhen Digital Trading Platform Phase I, and won the bid for the Shenzhen Phase II Project. The Company continued its efforts in the first-tier cities in Beijing, Shanghai, Guangzhou and Shenzhen, and expanded the coverage of provincial capital cities to fully support the digital transformation and upgrading of the construction industry.
2) Construction management segment:
During the year, the construction management segment achieved an operating income of RMB 1.326 billion, representing a year-on-year increase of 9.99%. By the end of 2022, the Company has served more than 90,000 projects with its smart site products, involving more than 7,000 customers. In 2022, 21,000 new projects were initiated, involving 1,600 new customers.
In the face of the complex and ever-changing external environment, the Company developed its construction management segment with a focus on promoting the in-depth operation of leading customers and key projects, and promoted the implementation of enterprise-level management products and project-level smart construction site solutions by virtue of the integrated project management demands of construction enterprises. The Company also carried out strategic cooperation with a number of leading construction enterprises, focusing on expansion into central government-owned enterprises and state-owned enterprises (especially targeting at infrastructure clients) and strengthening in-depth application support for private-funded enterprises, to ensure the rapid growth of contracts. In terms of delivery in the construction management segment, the Company mainly serves construction enterprises, and the delivery, acceptance and payment of products are significantly seasonal. The proportion of revenue achieved in the fourth quarter is usually the highest of the whole year. However, due to the high infection in the fourth quarter of last year, the implementation, delivery and customer acceptance of the construction management segment were affected, resulting in a slowdown in the growth of annual revenue even though the Company recorded a revenue growth of over 30% in this segment during the first three quarters of the year.
In terms of the product of the construction management segment, the Company leveraged the customer success indicator system to drive the product value improvement. In 2022, the Company completed the definition and regular review of the key customer success indicators for six key products. Material management, labor management, BIM + smart construction site and safety management products have established a closed value loop of products and channels driven by customer business success. The loop has been in iteration and verification, increasing the product-level customer success indicators by 10%-20%.
In terms of enterprise-level solutions, the Company focused on cooperation with the central government-owned, infrastructure and provincial construction systems, and developed stable strategic cooperation with a group of leading customers. During the Reporting Period, the Company propelled three integrated solutions: integrated safety solution, integrated production solution and integrated cost solution. It provided customers the management value of business connectivity and data interoperability horizontally, and realized information connectivity from enterprise-level to project-level vertically to enhance the operational efficiency of customers. The enterprise-level project management system marked the launch of the new generation of products from 0 to 1 in the platform + module mode. Shanghai Baoye’s integrated solutions for project-enterprise integration and business-finance integration were fully launched. These solutions have been promoted across more than 400 projects under construction of the Group, the production planning system has been implemented, and the production risk indicators have become stable. In The 20 MCC, engineering management and control platform has fully gone live, and the platform has been deeply applied in more than 300 projects under construction. Thanks to the platform, the enterprise value indicators of production business were improved, with excellence in the overall application of safety business. PMCore, a lightweight project management system, was launched for the segment market of small and micro enterprises, and the product value and marketing model were preliminarily verified.
During the Reporting Period, the digital project integration management platform accumulated and improved the core digital capabilities of the industry through the “platform + module”. The PaaS platform has been developed, and the platform is equipped with the ability to rapidly develop standardized SaaS applications and deliver personalized solutions on a large scale. In the second half of the year, the open platform portal was established, offering access to industry customers and ISVs, thus providing the industry with digital building base capacity. We delivered and launched the first phase of enterprise-level project management platform + component model for BCEG, one of our benchmark customers.  The phase 1 of data governance project of BCEG went live, marking that group data standards are formulated and data can be accessed for key projects.
3) Digital design segment:
The digital design business achieved operating income of RMB 120 million, down 7.91% year-on-year. During the Reporting Period, the digital design business focused on the development, customer validation and marketing of Glodon NOVADesign products based on our graphics platform with independent intellectual property rights.
For the Glodon NOVADesign Housing (Architecture, Structure and MEP), the Company has realized the discipline-wide collaborative design and production of drawing for ordinary residential and simple public buildings with the concept of "data-driven integrated design". In this regard, the Company also achieved the integration of BIM design and quantity takeoff through the BIM data interoperability. The rising efficiency and great accuracy facilitate customers effectively to improve the economic rationality of design. Since the release of our Glodon NOVADesign Housing (Architecture, Structure and MEP) set in July 2022, a total of nine design institutes have used the set in their 14 projects to design and deliver construction drawings by the end of the year, and the set has been promoted in three of those institutions at a large scale.
The Company successfully launched a road conceptual design product under Glodon NOVADesign Road. With this product, we could provide services in the two-dimensional drawing production, landscape design, road design, three-dimensional modeling, roaming display and other multi-use scenarios, achieving100% coverage of "road + bridge + tunnel + traffic facilities + landscape + ancillary facilities", and we therefore realize the goal of designing a comprehensive scheme with only one software. Since its release in July 2022, the Glodon NOVADesign Road product has proven its value in 26 projects of 43 design institutes. It has been successfully applied in complex productive projects, helping customers to improve the success rate of bidding. By the end of 2022, the projects covered by Glodon NOVAdesign Road involved more than 100 km of roads, more than 70 bridges, 11 tunnels and10 interchanges.
During the Reporting Period, GFC3, the digital building data exchange standard, was released, unifying the data interfaces of design, cost and construction products, thus promoting the application of BIM data throughout its life cycle. The design platform based on our graphics technology with independent intellectual properties reached the international mainstream level in terms of stability, performance and graphics modeling capability, supporting the successful release of the digital dimensional design products. In addition, we have conducted in-depth external ecological cooperation in the fields of water conservancy and hydropower, railroad, power grid, and ship design, etc.
4) Innovative business unit:
We focused the digital developer business on project development stage to develop design management system, engineering management system and cost data system for developers in order to meet the digital transformation needs of developers (including property developers, urban investment companies and owner builders). Based on the core business concept of "integration between enterprise and projects, and interaction between the developer and the construction enterprise", we achieved rapid growth in business scale under our major account management system characterized by collaboration among customer managers, solution experts and delivery experts. To be specific, we served nearly 100 developers during the Reporting Period, involving more than 1,000 projects.
We continued to focus the digital city business on the planning, construction and management and intelligent ecosystem business to create a benchmark for the planning, construction, management and operation project in Xinjin, Chengdu. The ecological value of the Guangyang Island project was highlighted. Based on those, we developed preliminary ecosystem products. In terms of the platform construction, we steadily promote the integration of Citymaker engine of Gvitech and our graphics platform to rapidly enhance the massive spatial data management, 3DGIS capability, large scene scheduling and rendering capability. The CIM platform has taken initial shape with project scale application capability.
When it comes to the digital college business, the digital teaching platform was launched and successfully covered more than 1,000 target colleges and universities. In terms of majors, the platform was expanded from cost estimation to construction management and design majors. Based on the new decoration industry workers, we have organized "Glodon + construction enterprises + colleges" to build a new industry college so as to supply talents for more than 10 first-class construction enterprises, such as China Construction Fourth Engineering Division, China Construction Fifth Engineering Division and China Construction Bureau and Bridge Engineering of CTCE, based on the resources of students from existing colleges.
In terms of the digital supply and procurement business, the bilateral matchmaking mode has basically taken shape under the supply chain platform, resulting in improvement in the business scale and service standard. The upgrading of the platform was recognized by customers. The demand-side purchaser operation achieved scale growth. The supply-side products were upgraded to solutions, and were extended to marketing growth and green building materials on the basis of the original supply-side smart marketing services, helping customers upgrade from value in efficiency to value in new revenue streams.
To develop the digital finance business, we firmly consolidated the foundation of digital credit business, optimized digital risk control products, established digital asset management system for the core scenarios of large enterprises, and developed supply chain financial service platforms for two construction groups of the State-owned Assets Supervision and Administration Commission of the province during the Reporting Period. The platform covers data access to multiple scenarios such as material acceptance and smart construction sites, helping all parties involved in the customer's supply chain system to achieve efficient financing and reduce overall costs.
5) Overseas business:
We actively responded to multiple severe challenges such as international geopolitics and economic downturn, and maintained stable development of the overseas business, achieving an operating income of RMB 153 million during the year, basically the same as the previous year.
As for the international cost estimation, the subscription revenue from Cubicost products accounted for over60%, and the application rate of pricing and quantity takeoff products was further increased. As a part of our attempt to develop new digital cost solutions in overseas market, we cooperated with JTC Corporation of Singapore, and Ministry of Public Works of Indonesia and its 29 provincial centers on construction cost management.
In terms of international development of construction management segment, we released AI-aided design function for MagiCAD and continued to expand its leading position in core regions, while maintaining good growth momentum in key regions such as UK, Germany and Italy.
(3) Continuous advancement of core technologies supports key business development
During the Reporting Period, the Company focused its investments on graphics technology and artificial intelligence to ensure that the core technology supports development of key businesses. The core graphics technologies were expanded from housing construction to infrastructure and CIM scenarios, further supporting the performance improvement in the Glodon NOVADesign Housing (Architecture, Structure and MEP) set and Glodon NOVADesign Road product, as well as the application of drawings for construction infrastructure products in high- volume component scenarios. In terms of artificial intelligence, thanks to its active efforts in the industry AI application innovation and technology research, the Company has made breakthroughs in deep learning-based interactive generation technology, and it has applied Foundation Model technology in construction cost business to provide services such as intelligent determination of comprehensive unit price and intelligent quantity calculation. The general building arrangement tool in intelligent design (arranging buildings in accordance with mandatory building codes) has been used by users for verification purpose, enabling the Company to be the domestic leader in real-time daylight analysis performance. Mass production has been achieved for labor face recognition terminals, and a number of CV safety hazard identification algorithms have been integrated into hummingbird box products(an industrial-grade edge computing endpoint applied at construction sites). As a part of its commitment to protection of intellectual property rights, the Company issued its Patent Management System in 2022. In the same year, the Company was granted 22 new invention patents, and registered 281 new software copyrights and 78 new trademarks. Thanks to those, the Company was granted the honorary title of "National Intellectual Property Advantage Enterprise for 2022" by China National Intellectual Property Administration.
(4) Value chain was optimized and upgraded by focusing on customer success
Based on its positioning as a "digital enabler", the Company continued to deepen the application of customer success indicators so that they cover all of its key products. In terms of the pilot products, an end-to-end closed loop has been created, which means values of those products have been realized, and the pilot products attained improvement in both key scenarios and key indicators. Customer success indicators have driven implementation of key sales and service actions, thus creating interconnection between customer needs and the Company's production and research, marketing, service and functional departments.
In 2022, the Company further promoted the standardized organization management. Digital Glodon established preliminary procedures, indicating the transformation of process development from management to operation. The digital system supports business procedures, thus improving operational efficiency across the board. The digital system is characterized by data-driven efficient decision-making through a unified database to support scenarios such as operational analysis and asset management. In the face of the complex and changing external environment, the Company especially allocates more resources to human resource management. To be specific, the Company carries out campus recruitment and development program and grassroots cadre development program, and optimizes the job qualification system to promote the internal flow of talents. The Company also continuously improved performance management and value distribution, thus driving the rapid upgrade of its talent pool.
(5) Empower digital transformation for the construction industry to expand brand influence
Based on the current systematic trend of enterprises in the digital transformation, the Company provides the industry with concepts, paths, methods, solutions and best practice benchmark cases for digital transformation. In this regard, the Company raised a groundbreaking proposition of "systematic digital reshaping of enterprise control and expansion". Such proposition gains resonance in the industry as it hits the pain points and mistaken areas of enterprises in their transformation. During the Reporting Period, the Company participated in the compilation of several national standards and industry specifications, such as the Standard for Collaborative Management of Intelligent Construction and Building Industrialization, providing guidance for the digital transformation of the industry. Focusing on the value proposition of "systematic digitalization", the Company has announced its proposition to the market and actively participated in the Digital China Summit and other events to convey to global practitioners Glodon's thoughts and practical insights on the digital transformation and upgrading of the construction industry, thus expanding its global influence.