UniStrong(SZ:002383)2022-12-08 06:44Business Overview - Beijing Huzhong Sizhuang Technology Co., Ltd. focuses on high-end products and services in the spatial information application market, with three core business segments: Beidou mobile internet applications, Beidou high-precision applications, and spatial information services [1][2] - Beidou mobile internet applications include GIS data collection products, portable navigation products, and handheld mobile smart terminals [1] - Beidou high-precision applications involve chips, boards, precision agriculture, marine positioning, driving schools, and measurement terminals [1][2] - Spatial information services focus on high-security databases, spatial data, and location-based service platforms [1][2] Financial Performance - The company achieved total revenue of ¥200,321,400.34, a 15.64% increase year-on-year, primarily due to the integration of the North American subsidiary Hemisphere [2][3] - Excluding Hemisphere's revenue, original business revenue decreased, with a 59.65% decline in the consumer product line [2] - Beidou mobile internet products grew by 26.56%, while Beidou high-precision applications surged by 352.87% [2] - The net profit for the period was -¥34,282,371.63, a 3.56% decrease from the previous year, with a gross margin of 39.14%, up by 8.05% [3] Market Insights - The public security market is considered vast, encompassing various sectors beyond police work, such as fire services and urban security management [4] - The precision agriculture market is still in the cultivation stage, with expectations for rapid growth in the next 3 to 5 years due to government subsidies [6] Strategic Initiatives - The company is enhancing its technical capabilities in high-precision chips and boards, aiming for international top-tier performance [6] - The management emphasizes a strategic transformation year, aiming for smoother operational performance [3][5] Operational Challenges - High management costs were attributed to increased R&D and operational expenses from Hemisphere, although overall management expenses decreased by 13% when excluding these factors [3] - The company is focusing on integrating business resources and deepening industry solutions to strengthen its market position [3][5] Future Outlook - The company is optimistic about the potential of the public security market and is actively expanding in this area [4] - The focus remains on specialized markets rather than the competitive mass market for vehicle navigation terminals [5]