Fintech is generally defined as the integration of finance and technology, applying technology to the financial sector and driving innovation in the financial system through technological tools.

Profitability is typically measured by the amount and level of a company's earnings over a specific period. Analyzing profitability involves a deep dive into a company's profit margins.

This article is part of our series on corporate value, focusing on 'Profitability'. We have selected 80 fintech enterprises as research samples, using indicators such as Return on Equity (ROE), Gross Margin, and Net Profit Margin for evaluation.

The data is based on historical trends and does not represent future projections; it is provided for static analysis only and does not constitute investment advice.

Top 10 Fintech Companies by Profitability:

10th Place: Newgen Software

Industry Segment: Vertical Application Software

Profitability: ROE 4.52%, Gross Margin 25.98%, Net Profit Margin 4.19%

Performance Forecast: ROE peaked at 12.81% in the last three years, with the latest forecast averaging 10.10%

Main Products: IT Solutions account for 76.43% of revenue, with a gross margin of 33.36%

Company Highlight: Newgen Software has provided IT solutions for information technology construction to insurance companies, banks, and other financial institutions for many years.

9th Place: New Morning Tech

Industry Segment: Vertical Application Software

Profitability: ROE 7.95%, Gross Margin 21.12%, Net Profit Margin 4.28%

Performance Forecast: ROE has declined continuously to 5.65% over the last three years, with the latest forecast averaging 10.95%

Main Products: Software Development accounts for 44.67% of revenue, with a gross margin of 17.83%

Company Highlight: The Collaboration Cloud Platform is New Morning Tech's primary product in the financial industry's business support layer, aligning with banks' fintech development plans and enhancing the output of intermediary business products.

8th Place: Beijing Northern Information Technology Co., Ltd.

Industry Segment: Vertical Application Software

Profitability: ROE 13.39%, Gross Margin 23.13%, Net Profit Margin 7.76%

Performance Forecast: ROE has risen continuously to 14.61% over the last three years, with the latest forecast averaging 13.60%

Main Products: Information Technology Services account for 64.01% of revenue, with a gross margin of 26.47%

Company Highlight: Beijing Northern Information Technology is a financial IT integrated service provider driven by fintech, primarily offering information technology services and business process outsourcing services to financial institutions, particularly banks.

7th Place: Hundsun Technologies

Industry Segment: Vertical Application Software

Profitability: ROE 22.25%, Gross Margin 73.80%, Net Profit Margin 21.38%

Performance Forecast: ROE has fluctuated between 17% and 31% over the last three years, with the latest forecast averaging 15.96%

Main Products: Software revenue accounts for 99.83% of total revenue, with a gross margin of 71.32%

Company Highlight: Whale Cloud, established by Hundsun Technologies, is dedicated to optimizing and enhancing financial public infrastructure services, including market data, aggregated payments, simulations, and KYC (Know Your Customer) processes.

6th Place: Dingdian Software

Industry Segment: Vertical Application Software

Profitability: ROE 13.56%, Gross Margin 68.65%, Net Profit Margin 28.53%

Performance Forecast: ROE has risen continuously to 16.53% over the last three years, with the latest forecast averaging 15.71%

Main Products: Custom Software Services account for 70.23% of revenue, with a gross margin of 61.87%

Company Highlight: Dingdian Software is a leading domestic provider of specialized platform software and information technology services, leveraging its proprietary 'LiveBOS' (Business Operation System) platform.

5th Place: iFinD

Industry Segment: Vertical Application Software

Profitability: ROE 26.44%, Gross Margin 90.04%, Net Profit Margin 47.11%

Performance Forecast: ROE has declined continuously to 20.19% over the last three years, with the latest forecast averaging 16.90%

Main Products: Value-Added Telecommunication Services account for 55.34% of revenue, with a gross margin of 82.39%

Company Highlight: iFinD boasts extensive experience in big data processing, analysis, and system construction, enabling it to provide big data application development and service extension capabilities across various industries.

4th Place: Lakala

Industry Segment: Financial Information Services

Profitability: ROE 0.23%, Gross Margin 28.33%, Net Profit Margin -0.90%

Performance Forecast: ROE peaked at 23.12% over the last three years, with the latest forecast averaging 17.24%

Main Products: Payment Services account for 88.28% of revenue, with a gross margin of 30.20%

Company Highlight: Lakala is gradually expanding its fintech services, e-commerce technology services, and information technology services to small and medium-sized enterprises, individual users, and commercial banks across various dimensions.

3rd Place: Zhongke Jiangnan Information Technology Co., Ltd.

Industry Segment: Vertical Application Software

Profitability: ROE 24.49%, Gross Margin 56.51%, Net Profit Margin 25.02%

Performance Forecast: ROE has declined continuously to 18.21% over the last three years, with the latest forecast averaging 16.99%

Main Products: Electronic Payment Services account for 38.20% of revenue, with a gross margin of 63.80%

Company Highlight: Zhongke Jiangnan is a leading provider of smart financial comprehensive solutions in China and one of the few nationwide financial information technology service providers.

2nd Place: Airong Software

Industry Segment: Vertical Application Software

Profitability: ROE 16.17%, Gross Margin 32.84%, Net Profit Margin 11.13%

Performance Forecast: ROE has risen continuously to 19.08% over the last three years, with the latest forecast averaging 19.61%

Main Products: Technology Development accounts for 93.13% of revenue, with a gross margin of 32.96%

Company Highlight: Airong Software primarily serves financial institutions, particularly banks, and other large enterprises. Of the 19 systemically important banks in China, Airong Software currently serves 12 of them.

1st Place: ChinaSoft International

Industry Segment: Vertical Application Software

Profitability: ROE 23.03%, Gross Margin 30.12%, Net Profit Margin 9.59%

Performance Forecast: ROE has fluctuated between 21% and 24% over the last three years, with the latest forecast averaging 20.09%

Main Products: Software Development and Services account for 75.59% of revenue, with a gross margin of 33.06%

Company Highlight: By collaborating with leading vendors such as Tencent, Huawei, Alibaba, and AWS, ChinaSoft International has successfully implemented multiple projects to migrate core business systems to the cloud, pioneering this effort in the insurance industry.