Hillstone Networks(688030)2024-06-27 11:08Group 1: Company Performance and Market Response - The recent decline in stock and convertible bond prices is primarily influenced by market sentiment rather than operational issues, with the company actively implementing buyback plans and shareholder increase initiatives [1] - The overall operational efficiency and per capita output of the company have improved year-on-year, with a 45% increase in per capita output in Q1 2024 compared to the same period last year [4] - The company aims to enhance operational efficiency and accelerate profit recovery through the ongoing implementation of four key strategic initiatives [5] Group 2: Convertible Bond Adjustments - The company is considering adjusting the conversion price of its convertible bonds based on market fluctuations and investor demands, with a focus on balancing the interests of both stock and bond investors [3] - Any proposed adjustments to the conversion price will require approval from the board of directors and the shareholders' meeting [3] Group 3: Strategic Partnerships and Business Development - The partnership with Digital China has strengthened the company's channel ecosystem, leading to an estimated sales order contribution of approximately 90 million yuan in 2023, with significant growth expected in 2024 [2] - The company is leveraging Digital China's management expertise to enhance operational efficiency and cost management, which is crucial for profit recovery [4] - The collaboration has also facilitated resource investment from Digital China, enhancing the company's distribution capabilities and reducing fixed costs [4] Group 4: Key Strategic Initiatives for 2024 - The company is focusing on four major strategic initiatives, including the "Hundred Customers Plan" to target high-value clients, the iteration of its ASIC security chip, the advancement of domestic product lines, and the enhancement of security services [5] - The ASIC chip development is progressing, with the first batch expected to return for testing in August 2024, following the completion of 29 hardware platform models [5] - The company is actively expanding its presence in the domestic market, particularly in key projects with state-owned banks, to increase the scale and revenue share of its domestic products [5]