Watertek(SZ:300324)2022-12-04 10:28Group 1: Business Overview - The company's main business is divided into three segments: embedded system testing products and services for defense and military, information security products and services for tax and finance sectors, and smart city information service platforms [3][4]. - The smart defense business is expected to see a recovery in orders due to military reforms, with many projects transitioning from research to mass production, contributing to performance this year [3][4]. - The tax control business has evolved from hardware to software and intelligent service platforms, leveraging historical tax data to assist banks in loan processes [4][5]. Group 2: Financial Performance - The company projected a profit of CNY 233.5 million to CNY 303.5 million for 2019, representing a year-on-year growth of 445.33% to 608.87% [5]. - The military business has maintained stable growth despite a decrease in its revenue and profit share due to the rapid expansion of tax information services [6]. Group 3: Future Development Focus - The military sector remains a cornerstone for the company, with ongoing improvements in technology, quality, and management driven by strict military client requirements [6]. - The company aims to synergize military and civilian business lines, enhancing growth in both sectors [6]. Group 4: Smart City Initiatives - The subsidiary, Taihao Intelligent, is a leading player in the smart city sector, with strong order acquisition capabilities and successful projects in Beijing [9][10]. - The company is expanding into big data applications and has achieved CMMI5 certification, indicating international standards in project management and software development [10]. Group 5: Tax Information Business - The tax information business has developed a bank-enterprise interaction platform, addressing the loan difficulties faced by small and medium enterprises [12]. - The platform utilizes blockchain technology to facilitate loan applications for SMEs, with plans for significant expansion in 2020 [12]. Group 6: Strategic Partnerships - The company signed a framework agreement with Poly Technology in December 2019, aiming to leverage opportunities in military inspection and smart city projects through international channels [12].