Glodon Company Limited

Glodon Company Limited is a digital building platform service provider based in China, specializing in the construction industry. Founded in 1998 and listed on the Shenzhen Stock Exchange in 2010, Glodon offers a range of digital software and hardware products, solutions, and services that support the entire lifecycle of engineering projects. The company serves various stakeholders in the global construction value chain, including developers, designers, contractors, and material suppliers, aiming to enhance efficiency and quality in construction through systematic digital capabilities. Glodon's operations are divided into three main business segments: Digital Design, Digital Cost, and Digital Construction, along with ancillary services. The Digital Cost segment provides software products and services for construction project management, while the Digital Construction segment focuses on platform-based solutions for project and enterprise management. The Digital Design segment offers a three-dimensional forward-design platform tailored for different project phases. Additionally, Glodon engages in digital innovation units that support upstream and downstream stakeholders, enhancing its market position through comprehensive digital solutions and a focus on AI-driven technologies.

In 2024, the Company achieved total revenue of RMB6.203 billion, representing a year-on-year decrease of 4.93%, while net profit attributable to shareholders of the listed company reached RMB250 million, marking a 116.19% year-on-year increase. During the Reporting Period, in response to changes in the external environment and shifts in customer demand due to business transformations, the Company proactively adjusted its operational strategies, optimized its product and business structures, and concentrated its business resources on core products, key regions, and major clients. This led to a more rational product portfolio and more efficient utilization of channel resources. The Company further focused its organizational resources on enhancing internal operational efficiency and overall service quality, deepened digital operations, and implemented multiple measures to effectively control costs and expenses, achieving significant results. During the Reporting Period, sales expenses, administrative expenses, and R&D expenses decreased by 5.97% year-on-year, further enhancing the Company's overall core competitiveness. By business segment, Digital Cost services generated operating revenue of RMB4.986 billion, a year-on-year decrease of 3.55%. Cloud contracts signed during the Reporting Period amounted to RMB3.424 billion, a year-on-year decrease of 3.93%. Digital Construction services achieved operating revenue of RMB787 million, a year-on-year decrease of 8.71%. Digital Design services generated operating revenue of RMB90 million, a year-on-year increase of 3.28%. Overseas business achieved operating revenue of RMB203 million, a year-on-year increase of 5.07%. Detailed Analysis of Key Business Segments 1. Digital Cost business: strong foundation with breakthrough growth in new business During the Reporting Period, the Digital Cost business continued its transition from single-position tools to comprehensive cost management application scenarios. The renewal rate and utilization rate of traditional cost estimation tools remained stable, while the cost calculation products deepened their penetration among major clients, leading to a continuous increase in their application rate. The growing demand for data services driven by customer business transformation has resulted in rapid growth in data-driven products such as Zhibiaowang and Procurement Recommendation Prices. Additionally, influenced by customers' increasing quality requirements for bidding processes and policy-driven factors, the bid evaluation business maintained rapid growth. During the Reporting Period, the coverage rate of individual-level indicators on Zhibiaowang increased from 53.78% to 79.25%, achieving 100% coverage of mainstream building types such as residential, office, and industrial facilities. This led to significant growth in application rates, customer satisfaction, and revenue. The bid evaluation product successfully transitioned to a SaaS model, achieving large-scale delivery and application. Enhanced by AI, its capabilities in bid document recognition and inspection improved significantly, demonstrating the product's value and driving rapid revenue growth. The cost calculation product underwent a value upgrade with the release of an "AI Intelligence" feature, improving accuracy to approximately 70% and reducing the time required for tasks from two days to one hour. The application rate among major clients continued to rise. On the marketing front, the Company successfully organized a cost management competition for construction enterprises, marking the first national competition in the cost management field. In collaboration with industry-leading experts, the Company established the first-ever digital cost management evaluation system for construction enterprises, promoting the industry's transition to refined cost management. The competition attracted 3,426 participating companies and empowered nearly 10,000 cost management professionals, driving comprehensive upgrades in cost management awareness, institutional systems, and digital empowerment across the construction industry. 2. Digital Construction business: clear transformation results and upgraded value of core products During the Reporting Period, the Company proactively adjusted its operational strategy, shifting its focus from pursuing scale to prioritizing profit and cash flow management. On the product side, the Company concentrated on key production factors such as materials, labor, and machinery, as well as core business management scenarios in the construction process, offering project-level standardized products and reducing the proportion of low-margin products. On the marketing side, the Company focused on core regions and key clients, strengthening penetration of single products among major clients and building regional strongholds, achieving breakthroughs in enterprise-level products with key clients. As a result, the operational quality and management level of the Company's construction business significantly improved during the Reporting Period. During the Reporting Period, the Company achieved a breakthrough in intelligent tower crane anti-collision technology, securing a leading position in product competitiveness within the industry. In material management, the Company launched its first self-developed smart hardware, the Intelligent Inspection All-in-One Machine, which integrates board-level components and combines multiple functions, significantly enhancing product cost-effectiveness and user experience. In labor management, the Company transitioned from closed attendance systems to mobile attendance systems, expanding into new application areas such as wage management and labor quotas, highlighting its differentiated competitive advantages. On the marketing front, through multi-dimensional marketing campaigns, the Company effectively disseminated thought leadership in digital construction, reaching approximately 35,000 enterprises and 140,000 individuals during the Reporting Period. This created a favorable market environment and laid the groundwork for the subsequent large-scale adoption of its products. 3. Digital Design business: significant benchmark achievements and enhanced integrated value During the Reporting Period, the Company focused on combining application scenarios to create benchmarks for integrated digital building measurement and digital road design-to-construction drawing solutions, validating the value of integration. It strengthened product R&D and promotion efforts, building marketing capabilities for large-scale deployment, thereby laying the foundation for further expanding the market share of its digital design products.