Chengdu JOUAV(SH:688070)2022-11-17 14:38Company Overview - Chengdu Zongheng Automation Technology Co., Ltd. focuses on the research, development, production, and sales of industrial drone-related products [2][3]. Market Position and Competition - The industrial drone industry has a low concentration, with numerous small-scale companies and diverse application fields, including agriculture, inspection, security, mapping, emergency response, and logistics [3][4]. - The company holds a competitive advantage due to its comprehensive capabilities in R&D, manufacturing, and service, covering the entire industrial chain [5][6]. Financial Performance - In 2021, direct sales accounted for 54.20% of revenue, while distribution sales made up 45.80%, with a noted increase in distribution due to the growing demand in the industrial drone sector [4]. - The company’s gross profit margin has declined due to promotional policies and the impact of large integrated projects, but plans to raise product prices from June 2022 to mitigate this [3][4]. Product and Service Offerings - The company’s product pricing ranges from hundreds of thousands to millions, with a focus on customized solutions [6][7]. - As of the end of 2021, the company had orders for drone services worth 20.68 million yuan, reflecting a year-on-year growth of 171.85% [7]. R&D and Innovation - In 2021, R&D expenses increased significantly, focusing on electric and hybrid vertical take-off fixed-wing drone systems, with total investments reaching 25.948 million yuan [9]. - The company emphasizes continuous R&D investment to maintain its competitive edge in technology and product innovation [5][8]. Future Outlook - The company plans to expand its presence in the security sector by integrating advanced technologies into its drone systems, aiming for sustained revenue growth in this area [7][8]. - Despite challenges posed by the pandemic, the demand for drones in various sectors, including public health and safety, is expected to grow [8][9].