SHENGLU TELECOM(SZ:002446)2022-12-08 09:34Group 1: Product Overview and Market Position - The main product of Hezheng Electronics is the DA Intelligent Connection System, which seamlessly connects smartphone applications to in-car terminals, enhancing user interaction and safety [2][3]. - Hezheng Electronics has developed relationships with major clients, including Dongfeng Nissan, and has recently expanded to other manufacturers such as Guangben and Dongben [3]. - The sales ratio target for Hezheng Electronics' products across three channels (OEM, boutique, and aftermarket) is set at 1:1:1, with boutique sales accounting for approximately 15% [3][4]. Group 2: Future Plans and Development - Hezheng Electronics plans to expand its product offerings and has secured front-end codes from several domestic brands, allowing participation in tenders [3][4]. - The company aims to achieve a sales volume exceeding 1 million units in the car entertainment terminal market [3][4]. - A second production facility of approximately 2,400 square meters is being prepared, with an expected total production capacity of 1 million units per year by March next year [5]. Group 3: Competitive Advantages and Challenges - Hezheng Electronics' products are recognized for their leading technology, with no significant competitors in the automotive electronics market since the launch of the DA Intelligent Connection System in late 2013 [4][5]. - The company has obtained various certifications, including Apple, HDMI, and Bluetooth, which are crucial for compliance with automotive standards [4]. - Hezheng Electronics is focused on maintaining a competitive edge by continuously upgrading its products and expanding its market presence [5][6]. Group 4: Financial Performance and Projections - In 2010, the traditional antenna business of Shenglu Communication generated a profit of 44 million, with expectations for growth in the upcoming year [5]. - The company anticipates that the profit from traditional business will increase compared to the previous year, although specific figures will depend on market conditions and operational plans [5]. Group 5: Strategic Partnerships and Management - Shenglu Communication will grant Hezheng Electronics significant operational autonomy while closely monitoring its development and strategic planning [4]. - The collaboration aims to leverage synergies between the two companies, enhancing product offerings and market reach [4].