Analysis Report on Teamsun's R&D Expense Ratio

Based on the obtained data and charts, let me provide you with a comprehensive analysis report on Teamsun’s R&D expense ratio.

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Based on the 2024 annual report of Teamsun (600410.SS) and API data [0], the company’s R&D investment is as follows:

Indicator	2024 Data	2023 Data	YoY Change
Total R&D Investment	211 million yuan	211 million yuan	0%
Expensed R&D Investment	124 million yuan	131 million yuan	-5.28%
Capitalized R&D Investment	87 million yuan	80 million yuan	+8.08%
R&D Investment as % of Revenue	4.94%	5.08%	-0.14pct
R&D Expense Ratio (Expensed/Revenue)	2.91%	3.15%	-0.24pct
Proportion of Capitalized R&D	41.20%	38.05%	+3.15pct
Number of R&D Personnel	973	802	+21.32%
R&D Personnel as % of Total Staff	37.64%	32.48%	+5.16pct

Teamsun’s R&D investment over the past five years has the following characteristics:

• R&D Investment Amount
  : Increased from 162 million yuan in 2020 to 211 million yuan in 2024, with a cumulative growth of 30.2%
• Expansion of R&D Personnel
  : Increased from 650 to 973 people, a growth of 49.7%
• R&D Expense Ratio
  : Showed a fluctuating trend, peaking at 3.15% in 2023 before falling back to 2.91% in 2024

Based on data from the National Bureau of Statistics [1] and industry research reports [2]:

Industry/Type	R&D Expense Ratio	Characteristics
Software Development Industry (Overall)	Over 10%	Software development, biological products, semiconductors and other industries lead in R&D intensity
Industrial Software Industry	15.2%	Increased from 13.5% to 15.2% during 2020-2023
High R&D Intensity Industries	>15%	Pharmaceutical manufacturing (4.53%), semiconductors, etc.
Software and Information Technology Services Industry	Approximately 8-10%	Higher than the national average of 2.69%

Comparison Dimension	Teamsun	Industry Average	Gap
R&D Expense Ratio	2.91%	8-10%	5-7 percentage points lower
R&D Investment as % of Revenue	4.94%	10%+	Over 5 percentage points lower
Industrial Software Peers	2.91%	15.2%	12 percentage points lower

As clearly shown in the chart, Teamsun’s R&D expense ratio is significantly lower than the average level of the software industry, only

of the industry average.

Insufficient R&D investment may lead to:

• Slower new product development speed
• Core technology iteration lags behind competitors
• Insufficient layout in cutting-edge fields such as AI and cloud computing

• High R&D expense ratios are usually associated with more competitive talent compensation
• May affect the recruitment and retention of high-end R&D talent
• Although the number of R&D personnel increased by 21% in 2024, R&D expenses decreased by 5.28%, leading to a decline in per capita R&D investment

• In the same competitive environment, enterprises with lower R&D investment may gradually lose their technological advantages
• According to the company’s annual report [3], the company’s cloud service business revenue decreased by 7.73% YoY in 2024

• The 5.28% decrease in the company’s R&D expenses in 2024 was mainly due to “changes in the planning and scheduling of individual R&D projects” [3]
• The proportion of capitalized R&D increased from 38.05% to 41.20%, indicating an increase in the degree of R&D capitalization
• The increase in the proportion of R&D personnel indicates that the talent team is expanding, but expense control is more refined

• Teamsun’s main business is enterprise IT system solutions, making it a technology service-oriented company
• The company focuses on the construction and operation services of intelligent computing centers, with a high technology reuse rate
• Compared to pure software product companies, its reliance on R&D is relatively low

• Net cash flow from operating activities in 2024 was 703 million yuan, a YoY increase of 203.17%
• R&D investment is highly matched with operating cash flow
• A low R&D expense ratio helps maintain short-term profitability

Dimension	Degree of Impact	Explanation
Short-Term Competitiveness	Limited	Current business model is mature, with stable existing customers
Medium-Term Competitiveness	Medium	Technological iteration speed may lag behind peers with high R&D investment
Long-Term Competitiveness	High Risk	May miss opportunities in the wave of AI and digital transformation
Financial Performance	Positive	Helps improve short-term profit margins and cash flow

Company	Business Area	R&D Expense Ratio	Characteristics
Orient National Information (300166.SZ)	Big Data, Industrial Software	Approximately 8-10%	Sustained high R&D investment
Weaver Network (603039.SH)	Collaborative Office Software	Approximately 12-15%	High R&D for productized software
Inspur Information (000977.SZ)	Servers, Cloud Computing	Approximately 4-5%	Hardware-focused, moderate R&D ratio
Teamsun	IT Services, Intelligent Computing Centers	2.91%	Significantly lower than peers

Teamsun has an obvious gap with competitors in terms of R&D investment:

• Orient National Information
  : R&D expense ratio is approximately 3 times that of Teamsun
• Weaver Network
  : As a productized software company, its R&D expense ratio is higher
• Industry Trend
  : R&D expense ratios in the software development industry are generally over 10%

1. Teamsun’s R&D expense ratio is indeed lower than the industry average
   : The 2024 R&D expense ratio is 2.91%, which is only about one-third of the industry average (8-10%) [0][1].

2. The impact on competitiveness is two-sided
   :
   • Short-term impact is limited, as the company’s business model is mature
   • May face technological iteration pressure in the medium to long term
   • Risks of falling behind in emerging fields such as AI and digital transformation

3. The R&D strategy shows the characteristic of “efficiency first”
   :
   • Increased proportion of capitalized R&D (41.20%)
   • Talent expansion with expense control
   • Greater focus on short-term financial performance

Focus Area	Details
Trend of R&D Investment Changes	Whether it will continue to decline or improve
Quality of R&D Personnel	Changes in the proportion of highly educated and highly skilled personnel
New Product Launches	Whether there are major technological breakthroughs or new products
Effectiveness of Business Transformation	Improvement in the competitiveness of intelligent computing center business
Impact of Industry Policies	Opportunities for the company from IT Application Innovation (Xinchuang) and AI industry policies

• If R&D investment remains low, it may weaken the company’s technological barriers in the medium to long term
• May miss development opportunities in high R&D intensity fields such as industrial software and AI
• It is necessary to pay attention to whether the company makes up for insufficient internal R&D through mergers and acquisitions, cooperation, etc.

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[0] Jinling AI - Financial Data and API Analysis of Teamsun
[1] National Bureau of Statistics - 2024 National Science and Technology Funding Investment Statistical Bulletin (https://www.stats.gov.cn/sj/zxfbhjd/202509/t20250929_1961429.html)
[2] Debon Securities - In-Depth Report on the Industrial Software Industry (https://pdf.dfcfw.com/pdf/H3_AP202408171639323393_1.pdf)
[3] Teamsun - 2024 Annual Report (https://file.finance.qq.com/finance/hs/pdf/2025/04/26/1223324852.PDF)
[4] Teamsun - 2024 Semi-Annual Report (https://pdf.dfcfw.com/pdf/H2_AN202408291639566045_1.pdf)
[5] Teamsun - 2023 Annual Report (https://stockn.xueqiu.com/SH600410/20240424029927.pdf)