Watertek(300324)2022-12-07 09:28Group 1: Company Overview and Strategy - The company focuses on embedded systems, information security, and industry informationization, aiming to become a leading high-tech enterprise in military and civilian information products and services [3][4]. - The overall development strategy includes optimizing the business system, concentrating resources on platform products, and transitioning from project-driven to market-driven approaches [3][4]. - The company plans to enhance its service capabilities in the defense and military sectors, with a focus on electronic and information technology [4][12]. Group 2: Business Development and Mergers - The company is acquiring 100% of Xi'an Xigu Microelectronics for a total estimated transaction value of CNY 54.6 million, with 15% paid in cash and 85% through share issuance [6][7]. - The acquisition aims to strengthen the company's service capabilities in the military electronics reliability assurance sector, positioning it as a leader in this field [7][8]. - The integration of Xi'an Xigu is expected to create synergies in customer resources and service areas, enhancing market service capabilities [7][8]. Group 3: Financial Performance and Market Position - Xi'an Xigu has maintained an average gross margin of over 75% in recent years, indicating sustainable profitability due to low unit costs and strong brand recognition in the military electronics testing market [8][9]. - The company has established long-term stable partnerships with various military production units, enhancing its brand and customer advantages [9][10]. - The tax control business has expanded its service network to cover 28 provinces and cities, indicating steady growth in this segment [10][11]. Group 4: Future Outlook and Product Development - The company is committed to developing embedded systems and software testing products, with a focus on military applications and new product launches [12][13]. - Future research and development will prioritize products for the army and air force, including command communication systems [13][14]. - The company plans to enhance its self-organizing network business, focusing on portable and miniaturized solutions [14][15].