Sansec(688489)2025-04-30 02:08Summary of Conference Call Company Overview - The company is facing challenges in covering costs with revenue, leading to ongoing losses. Compared to the same period last year, first-quarter performance has declined due to the acquisition of Tianan in the second half of last year and increased R&D and sales personnel [2][4] Key Industry Insights - Significant progress has been made in digital transformation, particularly in the energy, telecommunications, and cloud computing sectors, resulting in noticeable revenue growth [2][5] - The company has not yet officially launched quantum products, focusing instead on pilot projects in high-security demand industries such as finance, telecommunications, and energy, while also participating in the development of anti-quantum standards [2][6] Competitive Positioning - In the competitive landscape of quantum pilot projects, the company demonstrates strong competitiveness through its established projects in finance, energy, and telecommunications, and is leading in R&D and product development [2][8] - The company has transitioned from chip to module, complete machine, and system solutions, integrating anti-quantum algorithms with traditional algorithms to address current needs and future quantum computing security challenges [2][7] Data Cross-Border Services - The company primarily provides system construction and encryption service upgrades for banks, particularly for the Cross-Border Interbank Payment System (CIPS), having supplied related hardware and software to around 60-70 banks [2][9] - The company is also expanding its services to overseas payment institutions and is involved in a data communication project between Chongqing and Singapore, although data cross-border services are still in the early stages [2][9] Financial Performance - In the first quarter, the company experienced a revenue growth of over 30%, attributed to the consolidation of Tianan's financials and growth in certain sectors. However, net profit declined as expected due to seasonal factors and increased costs [4] Workforce and Resource Allocation - The company anticipates that its total workforce will not exceed 925 employees by the end of 2024, with potential optimization in personnel. Future investments will focus on R&D, particularly in artificial intelligence, while market expansion will remain industry and region-specific [3][10] - New emerging businesses, such as data cross-border services, will not significantly impact overall resource allocation [11]