Summary of Zhimingda Conference Call Company Overview - Company Name: Zhimingda - Industry: Military Embedded Computing - Headquarters: Chengdu, Sichuan Province, China - Established: 2022 Financial Performance - 2024 Revenue: 438 million CNY, a decrease of 33.95% year-on-year [2][4] - 2025 H1 Revenue: 295 million CNY, an increase of 84.83% year-on-year [2][4] - Core Business: Airborne business accounts for over 60% of revenue in both 2024 and 2025 H1 [2][5] - Order Backlog: As of mid-2025, the order backlog reached 608 million CNY, a year-on-year increase of 73.71% [2][6] Market Dynamics - Military Embedded Computer Market: Rapidly developing, with a strong demand for upgrades in China's military aircraft [2][7] - Comparison with US: China has approximately 3,300 active military aircraft, significantly lower than the US's 13,000 [7] - Cost Structure: The avionics system cost has increased, representing 30%-40% of advanced fighter aircraft costs, expanding the market for embedded computing [7][8] Business Segments - Airborne Business: Remains the core revenue source, with significant contributions from unmanned systems and commercial aerospace [2][4][5] - Missile Guidance Systems: Increased demand for precision-guided weapons is driving growth in the missile-borne embedded computing market [2][9] - Satellite Sector: The number of commercial satellite launches has reached new highs, increasing demand for onboard computers [2][10] Competitive Landscape - Main Competitors: Military research institutes and a few qualified enterprises [12] - Competitive Advantages: - Flexible production mechanisms and effective incentive measures [12] - Strong historical collaboration with clients, leading to high customer retention [12] Emerging Opportunities - Unmanned Systems: The demand for embedded computing in unmanned systems is expected to rise significantly due to modern warfare needs [2][11] - Low-altitude Economy: Development in this area is expected to boost demand for civilian products [11] Challenges - Order Delays: Orders were delayed in 2024 due to industry conditions, impacting delivery [2][6] - Market Competition: Facing competition from state-owned research institutes with less flexibility in production [12] Conclusion Zhimingda is positioned for recovery and growth, leveraging its core competencies in military embedded computing and expanding into new markets such as unmanned systems and commercial aerospace. The company’s strong order backlog and increasing revenue in 2025 indicate a positive outlook despite previous challenges.
智明达20250912