Analysis of Revenue Changes in Sifang Jingchuang's Bank of China Business

According to public information, Sifang Jingchuang (Stock Code: 300605) has indeed seen a significant decline in revenue from Bank of China. The company’s management has provided a detailed explanation for this, mainly involving strategic-level resource reallocation.

Based on the prospectus and publicly disclosed data [1]:

This change means that revenue from Bank of China dropped sharply by approximately 76% in the first three quarters of 2024 compared to the previous level.

Regarding the decline in revenue from major clients, Sifang Jingchuang clearly provided the following explanation [1]:

Behind this explanation is the systematic strategic adjustment implemented by the company in 2024:

2024 was positioned by the company as “a year of proactive strategic transformation” [2]. The management assessed the situation and established the “strategic displacement” business strategy, deciding to proactively exit some business sectors with narrow profit margins.

The company proactively adjusted its business expansion direction and strategies, focusing resources on:

• Geographic markets with higher profit margins
  : Actively expanding overseas markets
• Strategic technology sectors
  : Digital transformation and innovative businesses
• High-potential businesses
  : Innovative businesses and other high-profit-margin businesses

Through the above strategic adjustments, the company achieved an increase in gross profit margin while

As a fintech enterprise, Sifang Jingchuang’s main clients are domestic and overseas banking and financial institutions [2]. The industry background faced by the company includes:

1. Intensified industry competition
   : Profit margins of some projects are increasingly narrow
2. Rising cost pressure
   : The salary costs of technical personnel continue to grow (per capita salary increased from RMB 99,000 in 2016 to RMB 243,800 in 2024)
3. Urgent need for transformation
   : The fintech industry faces opportunities from the digital transformation of banks

It is worth noting that Sifang Jingchuang faces a high risk of customer concentration:

• Revenue from the top five clients accounted for as high as 93.7% of total revenue in the first three quarters of 2024 [1]
• Bank of China (Hong Kong), the largest client, and Bank of China, the second-largest client, contributed more than 70% of the company’s revenue

[1] Sina Finance - “Sifang Jingchuang, ‘Bank Coders’ Encounter Growth Bottlenecks” (https://cj.sina.com.cn/articles/view/1077173264/40345c1000102i72o)

[2] 2024 Annual Report of Shenzhen Sifang Jingchuang Information Co., Ltd. (https://static.cninfo.com.cn/finalpage/2025-04-28/1223320536.PDF)"