Core Insights - The company is undergoing a structural transformation in its overseas strategy, transitioning from a focus on Hong Kong to expanding in Southeast Asia, leveraging its self-developed ASIC security chips to break the long-standing technology monopoly held by foreign firms [1][2][3] Group 1: Strategic Developments - The self-developed ASIC security chips are expected to achieve small-scale shipments in Q4 of this year, targeting high-end clients in finance and telecommunications [1][3] - The company's global vision aims for overseas business to account for a significant portion of profits, with a goal of achieving a balanced profit distribution among domestic, overseas, and OEM businesses over the next three years [1][2] - The shift in focus from primarily serving Chinese financial clients in Hong Kong to a broader client base, with government sectors now becoming the largest customer segment [1][2] Group 2: Market Dynamics - The Hong Kong government's urgent need for supply chain security has created a favorable environment for the company, allowing it to capitalize on this demand as a leading Chinese cybersecurity firm [2] - In Southeast Asia, the company is focusing on high cost-performance products, responding to regional concerns about supply chain security amid geopolitical tensions [2][3] - The company plans to deepen cooperation in three key areas in Hong Kong: government, finance, and critical infrastructure, while expanding its market presence in Southeast Asia and exploring potential in Europe and the Middle East [2] Group 3: Technological Advancements - The self-developed ASIC security chips are a crucial tool for the company to break the overseas monopoly, with four years invested in R&D leading to expected mass production in Q4 [3][5] - The company emphasizes the importance of developing its own hardware to meet the specific performance needs of security scenarios, as general-purpose chips are insufficient for high-demand applications [4][5] - The introduction of AI technology alongside ASIC chips forms a "Double A Strategy," enhancing data processing efficiency and reducing the need for human monitoring of security alerts [5][6] Group 4: Competitive Landscape - The company is positioned as one of the few globally capable of producing high-end network security ASIC chips, alongside Fortinet, with no other domestic competitors currently able to match this capability [5] - The ASIC product line is expected to open new market opportunities, particularly in the low-end commercial market, which has been challenging to penetrate [6] - The company aims to redefine competition in the cybersecurity industry through technological innovation rather than homogeneous competition [6]

Core Viewpoint - Shanshi Network Technology is set to break the overseas monopoly with its self-developed ASIC security chip, which will begin small-scale shipments in Q4 2023, and is implementing a "dual A strategy" combining AI technology to enhance its market position and expand overseas operations [1][3]. Group 1: Company Strategy - The company aims to increase its overseas business share, targeting a balanced profit distribution among domestic, overseas, and OEM operations within three years [1][2]. - Shanshi Network Technology's overseas expansion strategy includes deepening cooperation in Hong Kong's government, financial, and critical infrastructure sectors, while focusing on high-cost performance products in Southeast Asia [2][3]. Group 2: Product Development - The self-developed ASIC security chip is a key tool for Shanshi Network Technology to overcome the long-standing dominance of foreign manufacturers in the high-end market [3][4]. - The company has invested four years in the development of the ASIC chip, with plans for mass production starting in Q1 2024, targeting high-end clients in finance and telecommunications [3][5]. Group 3: Market Positioning - The company has shifted its focus in Hong Kong from primarily serving financial clients to also addressing the growing demand from the government sector, which has become its largest customer [2][5]. - In Southeast Asia, the company is leveraging its high cost-performance advantage to attract clients, especially in light of recent geopolitical tensions that have heightened the focus on supply chain security [2][6]. Group 4: Technological Innovation - The "dual A strategy" integrates ASIC technology to enhance computational power and AI to reduce human resource requirements, improving efficiency in monitoring and responding to network security threats [6][5]. - The company aims to redefine competition in the network security industry by focusing on technological innovation rather than homogeneous competition, inspired by successful market strategies of established players like Fortinet [6].