Comments on the Management of Gao Xinxing’s 2021 Annual Board of Directors
() The business review of the Board of Directors in 2021 is as follows:
I. The industry in which the company is located during the reporting period.
The company shall comply with the disclosure requirements of "software and information technology service industry" in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.3-Disclosure of Industry Information. Gaoxin’s current industry is software and information technology service industry, which refers to the business activities of producing, collecting, processing, processing, storing, transporting, retrieving and utilizing information and providing information services by using technologies such as computers and communication networks. Digital technology, goods and services are not only accelerating the infiltration of traditional industries in multiple directions, levels and chains, that is, industrial digitalization; Moreover, it is promoting the continuous development and growth of digital industrial chains and industrial clusters such as the construction and service of Internet data centers, that is, digital industrialization. The new infrastructure, such as 5G network, data center, industrial Internet, which is promoted by the state, is the digital economy infrastructure around science and technology. Various new formats spawned by the digital economy will also become a new important growth point of China economy.
The 2022 government work report puts forward that "it will promote the development of digital economy. Strengthen the overall layout of digital China construction. Build digital information technology facilities, promote the large-scale application of 5G, promote the digital transformation of industries and develop smart cities. Accelerate the development of industrial internet, cultivate and expand digital industries such as integrated circuits and artificial intelligence, and enhance the technological innovation and supply capacity of key software and hardware. Improve digital economic governance, release the potential of data elements, and better empower economic development. This is also the fourth consecutive year that the government work report mentioned "digital economy". The new infrastructure represented by Gigabit network and 5G is an important support to promote China’s digital economy to become stronger, better and bigger. According to the website of the Ministry of Industry and Information Technology: "By the end of 2021, China has built the world’s largest 5G network, with an annual investment of 184.9 billion yuan in 5G, accounting for 45.6% of the fixed assets investment in telecommunications. A total of 1.425 million 5G base stations have been built and opened, including 840,000 shared 5G base stations, covering all prefecture-level cities, more than 98% of county towns and 80% of townships, and gradually meeting the demand. The total number of 5G base stations in China accounts for more than 60% of the world; More than 300 cities across the country have started the construction of gigabit fiber-optic broadband networks. By the end of 2021, 7.86 million 10GPON ports have been built, which has the ability to cover 300 million households. " The coverage and application popularization of new information infrastructure such as 5G and Gigabit optical networks in China have been accelerated in an all-round way.
According to the research report of Guosheng Securities: "The biggest feature of the 5G era is the Internet of Everything. 3G and 4G have made the mobile Internet, while the three characteristics of 5G are directed at the Internet of Things. Low latency and wide connection are conducive to the interconnection of massive machines, and the Internet of Everything will become a reality in the 5G era. The Internet of Things is one of the fastest growing and most important directions in the 5G era. " By the end of December, 2021, the number of end users of cellular Internet of Things developed by (), China Unicom and () three basic telecommunications enterprises reached 1,399.22 million. CITIC Securities Research Report predicts: "The number of global Internet of Things devices will increase from 15.4 billion in 2015 to 30.7 billion in 2020, and reach 75.4 billion in 2025. In 2020, the number of global IOT devices will reach 28.1 billion, and the total global market will reach 1.7 trillion US dollars. In 2022, the number of global IOT devices will reach 25 billion, releasing 1.2 trillion US dollars of global industrial opportunities. In 2025, more than 55 billion IOT devices will be installed in the world, and the investment related to the Internet of Things will exceed 25 trillion US dollars. In 2017, the number of global Internet of Things devices reached 17.5 billion, and it will reach 31.6 billion in 2023. In 2016, the number of Internet of Things connections in the world was about 22.9 billion, and it is estimated that this number will increase to 50.1 billion in 2020. In 2026, the number of Internet of Things terminal connections will reach 23.72 billion, and the value of Internet of Things connections will reach 52.34 billion US dollars.
Behind the vigorous development of the number of Internet of Things connections is the deployment and support of new infrastructure, industrial Internet, smart cities and other digital economies. Many cities in China have been actively deploying and accelerating the promotion of 5G Internet of Things application scenarios. After years of development, the application of the Internet of Things has moved from closed-loop and fragmented to open and large-scale, and breakthroughs are gradually being made in large-flow application scenarios such as the Internet of Vehicles, smart transportation, public safety and smart cities.
With the long-term deep cultivation of the Internet of Things and market accumulation, Gao Xinxing focuses on the vertical application fields of the Internet of Things, smart transportation and public safety, and is committed to becoming the world’s leading provider of Internet of Things products and services in smart cities.
1. High-tech emerging dedicated car networking and smart transportation IoT vertical application track
(1) Policy background
At present, the car networking industry policy continues to be introduced, the car networking standards are promoted in an orderly manner, and the development direction is clear and clear. In 2021, China’s car networking has made positive progress in policy planning, standard system construction, key technology research and development, application demonstration and infrastructure construction, and has also played a positive role in promoting the transformation and upgrading of traditional industries such as automobiles and transportation, and promoting the formation of new industrial clusters for digital economy development.
In February, 2020, 11 ministries and commissions, including the National Development and Reform Commission and the Central Network Information Office, jointly issued the "Intelligent Vehicle Innovation and Development Strategy" to actively promote the development of the car networking industry. The development of the automotive electronics industry has gained new opportunities of intelligence, networking and security, and the smart road, one of the core of car-road coordination, will show explosive construction, and the new business model and data opening model of the automobile industry will become an important direction.
In February, 2021, the Central Committee of the Communist Party of China and the State Council issued the National Comprehensive Three-dimensional Traffic Network Planning Outline, which promoted the coordinated development of intelligent networked vehicles and smart cities, built a perception system of urban roads, buildings and public facilities, and built a smart travel platform based on urban information model platform and integrating urban dynamic and static data.
In March 2021, the National Development and Reform Commission and relevant departments and units issued the "Implementation Plan for Accelerating the Cultivation of New Consumption" to jointly develop smart cities and intelligent networked vehicles and build a smart travel platform "Checheng. com". Accelerate the construction of the pilot area of car networking in advantageous areas of the country and explore the industrial development and scale deployment of car networking (intelligent networked cars). Accelerate the formulation of relevant application standards and management methods, and promote the landing and demonstration of special scenes such as unmanned distribution and unmanned driving in industrial parks in an orderly manner.
In April 2021, the Ministry of Public Security drafted the Road Traffic Safety Law (Revised Draft), soliciting opinions from the public, and clarifying the relevant requirements for road testing and traffic of cars with autonomous driving function, as well as the provisions on sharing responsibility for violations and accidents.
In May 2021, the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology issued the Notice of the Ministry of Housing and Urban-Rural Development on Determining the First Pilot Cities for Collaborative Development of Smart City Infrastructure and Intelligent Networked Vehicles. According to the relevant work arrangements in the Notice of the General Office of the Ministry of Housing and Urban-Rural Development and the General Office of the Ministry of Industry and Information Technology on Organizing the Pilot Work of Collaborative Development of Smart City Infrastructure and Intelligent Networked Vehicles, six cities including Beijing, Shanghai, Guangzhou, Wuhan, Changsha and Wuxi were identified as the first batch of pilot cities for the coordinated development of smart city infrastructure and intelligent networked vehicles. In December 2021, the two ministries and commissions issued the Notice of the Ministry of Industry and Information Technology of the Ministry of Housing and Urban-Rural Development on Determining the Second Batch of Pilot Cities for the Collaborative Development of Smart City Infrastructure and Intelligent Networked Vehicles, and identified 10 cities including Chongqing, Shenzhen, Xiamen, Nanjing, Jinan, Chengdu, Hefei, Cangzhou, Wuhu and Zibo as the second batch of pilot cities for the coordinated development of smart city infrastructure and intelligent networked vehicles.
In July, 2021, the Ministry of Industry and Information Technology and other ten departments jointly issued the Action Plan of "Sailing for 5G Applications" (2021-2023), which explicitly mentioned the 5G+ car networking in the deepening action of industry integration applications. Strengthen the cooperation of automobile, communication, transportation and other industries, and jointly establish a complete test and evaluation system for 5G and vehicle networking to ensure end-to-end interconnection of applications. Accelerate the improvement of vehicle penetration and roadside deployment of C-V2X communication module. Accelerate the exploration of business models and application scenarios, support the creation of national-level vehicle networking pilot areas, promote the coordinated planning and construction of vehicle networking infrastructure and 5G networks, select typical areas of key cities, appropriate road sections and key highway sections, accelerate the deployment of 5G+ vehicle networking, and promote the innovative application of C-V2X technology in parks, airports, ports, mines and other areas. Establish a cross-industry, cross-regional trust and mutual recognition of the car network security communication system.
In July 2021, the Ministry of Industry and Information Technology, the Ministry of Public Security and the Ministry of Transport jointly issued the "Management Specification for Intelligent Networked Vehicle Road Testing and Demonstration Application (Trial)". The road test mentioned in it refers to the intelligent networked auto-driving function test activities carried out on the designated sections of roads (including expressways), urban roads, regional areas and other roads used for social motor vehicles; Demonstration application refers to the intelligent networked vehicle manned and loaded operation activities with pilot and trial effect in designated sections of roads (including expressways), urban roads, regional areas and other roads used for social motor vehicles; Test area (field) refers to the site with closed physical boundaries and facilities and environmental conditions such as roads, networking and so on required for the automatic driving function test of intelligent networked vehicles in a fixed area.
In September 2021, the Ministry of Transport issued the Action Plan for New Infrastructure Construction in the Field of Transportation (2021-2025). Based on the development strategies of key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing Twin Cities Economic Circle and Hainan Free Trade Port, and relying on key sections of national expressways such as Beijing-Harbin, Beijing-Hong Kong-Macao, Hangzhou-Shaoyong, Shenhai, Shanghai-Kunming, Chengdu-Chongqing and Hainan Island, as well as intercity expressways such as Jingxiong Expressway and Jiqing Middle Line, smart highway construction will be carried out to improve the operation and management level of road network, reduce the accident rate, alleviate traffic congestion and improve traffic efficiency.
Especially in November, 2021, the Ministry of Industry and Information Technology issued the "14th Five-Year Plan for Information and Communication Industry Development", proposing that key expressways and urban roads should realize the scale coverage of cellular vehicle networking (C-V2X), and promote the upgrading of expressway vehicle networking and the construction of national vehicle networking pilot areas in a "compartmentalized way" to jointly develop smart city infrastructure and intelligent networked vehicles.
At the same time, in recent years, the relevant policies are promoting the application and promotion of automobile electronic identification, a related product of vehicle unique identification. In March, 2021, the Ministry of Public Security issued the Road Traffic Safety Law (Revised Draft) (which has not been officially implemented), in which the revised draft stipulated that motor vehicles should be registered with electronic signs as required. Motor vehicle electronic identification is an information identification technology for vehicle identity authentication, which is formulated by the Ministry of Public Security in a unified national standard, unified promotion and unified management. Through the classified collection, accurate collection, massive collection and dynamic collection of vehicle traffic information, it can help the public security traffic control department to realize the fine management of vehicles and promote the upgrade of the comprehensive traffic management system. It can be seen that the construction of motor vehicle electronic identification conforms to the national strategic development plan and has important promotion significance for urban traffic management and vehicle-related control. As a result, the demand for electric bicycle management has become increasingly strong, and many ministries and commissions have issued policies to promote the standardized management of electric bicycle registration and road use; A number of policies, such as Opinions on Strengthening the Implementation Supervision of National Standards for Electric Bicycles (Guo Shi Jian Biao Chuang [2019] No.53) and Notice on Further Strengthening the Comprehensive Management of Traffic Safety of Electric Bicycles (Bus Management [2021] No.234), were promulgated, relevant ministries and commissions deployed to strengthen the application of intelligent technology, and the Communications Office of the Ministry of Public Security built a digital management system based on electronic signs; With the successful pilot of digital number plate management in Shenzhen, Hangzhou, Nanjing, Guangzhou and other places, the nationwide application has been promoted rapidly, and the industry market space is expected to be huge.
In addition to the relevant policies of national ministries and commissions, Beijing, Shanghai, Guangdong, Jiangsu, Shandong, Hunan, Anhui, Chongqing and other places have issued the "Tenth Five-Year Plan" related plans, which also mentioned the need to vigorously develop the car networking and intelligent networked automobile industry.
(2) Standards and technical environment
The Internet of Vehicles is a new industrial form with deep integration of automobile, electronics, information and communication, transportation and other industries. On March 7, 2022, the Ministry of Industry and Information Technology issued "Guidelines for the Construction of Network Security and Data Security Standard System of the Internet of Vehicles" (hereinafter referred to as "Guidelines") to guide the development of related standards of the Internet of Vehicles, with a view to accelerating the establishment and improvement of the network security and data security guarantee system of the Internet of Vehicles and providing support for the safe and healthy development of the Internet of Vehicles industry.
As a key enabling technology, V2X wireless communication technology is helpful to build an industrial ecosystem of "human-vehicle-road-cloud" collaborative vehicle networking. China dominates the C-V2X standard, and China’s existing C-V2X technical standard has been basically completed and has a complete industrial chain, and 5G V2X technology has gradually landed. The unique characteristics of low latency and high reliability of 5G will realize the combination of wireless communication and GPS, so as to realize the real smart car networking.
(3) Market space
The scale of the Internet of Things industry is huge, and it is a trillion-dollar space market with sustained and rapid growth. According to GMSA’s forecast, the global Internet of Things industry will reach 1.1 trillion US dollars in 2025, among which IDC predicts that China’s Internet of Things expenditure will account for 26.7% of the global total, ranking first; According to China Internet Development Report 2021 (internet society of china), the scale of Internet of Things industry in China will reach 1.7 trillion yuan in 2020, up 13.3% year-on-year. According to IDC data, the Internet of Vehicles will be the fastest growing segment of the Internet of Things industry in China. Among them, the car networking industry is expected to achieve a compound growth rate of more than 35% from 2019 to 2024, much higher than other scenarios.
The development of Internet of Vehicles can effectively empower traffic, improve traffic efficiency and improve road traffic safety. Prospective Industry Research Institute predicts that the market size of China’s intelligent transportation industry will exceed 400 billion yuan in 2026; () The research report predicts: "It is estimated that the size of the V2X car terminal market will exceed 100 billion yuan in 2025, and it will grow rapidly in the later period, and it is expected to exceed 350 billion yuan in 2030. The roadside market mainly includes urban intersections and highway roadside infrastructure construction. It is estimated that its market size will be about 81.9 billion yuan in 2025 and will exceed 100 billion yuan in 2030.
Second, the high-tech emerging dedicated public safety vertical application track of the Internet of Things
(1) Policy background
1, the field of standardized construction of public security law enforcement
Since 2016, the Political Bureau of the Central Committee has repeatedly emphasized that China is not only an economic power, but also a country ruled by law. The central government has successively issued a series of documents, such as "the Central Committee of the Communist Party of China’s Decision on Comprehensively Advancing Several Major Issues in Governing the Country by Law", and attached great importance to the construction of law enforcement norms from the national policy level. The foundation of China ruled by law has three levels: one is to improve the legal system, the other is to enforce the law, and the third is to abide by the law. Enforcement of the law is a concrete manifestation of China ruled by law. Judging from the main body of law enforcement in China, there is a great demand for the construction of public security law enforcement team, and the standardization of public security law enforcement is a top priority in the construction of China ruled by law.
In December 2018, the General Office of the State Council issued the "Guiding Opinions on Fully Implementing the Recording System of the Whole Process of Administrative Law Enforcement and the Legal Review System of Major Law Enforcement Decisions", which proposed that the whole process of law enforcement should be fully implemented, mainly from four aspects: improving written records, standardizing audio-visual records, strictly recording and archiving, and playing a recording role; To comprehensively promote the informatization construction of administrative law enforcement, it is mainly stipulated from three aspects: strengthening the construction of informatization platform, promoting information sharing and strengthening intelligent application.
In May 2019, the Ministry of Public Security issued the "Guiding Opinions of the Ministry of Public Security on Strengthening the Construction of Law Enforcement and Case Handling Management Centers of Public Security Organs", requiring public security organs at the city and county levels to carry out the construction of law enforcement and case handling management centers according to local conditions, and to create a "one-stop" case handling place integrating case handling areas, case management areas, property management areas involved, integrated operations, intelligent assistance and other functions. In view of the fragmented and unsystematic law enforcement management in the past, the law enforcement case management center clarified the management department, equipped with full-time management personnel, and established a systematic, refined and full-process law enforcement management mechanism.
In January, 2021, the Central Committee of the Communist Party of China issued the Plan for the Construction of Rule of Law China (2020-2025), which requires strengthening the guarantee of science and technology and informatization. Make full use of big data, cloud computing, artificial intelligence and other modern scientific and technological means to build a "smart rule of law" in an all-round way, and promote the digitalization, networking and intelligence of the rule of law in China. Optimize and integrate all kinds of information, data and network platforms in the field of rule of law, and promote the construction of national rule of law informatization project.
The continuous leadership speech, policy release and national conference show that the legal system of China is a long-term national policy and law enforcement standardization work. The company’s public safety and law enforcement standardization system can also be extended to other government departments with law enforcement power, providing information product support for the construction of China ruled by law.
2. The field of intelligent security construction
In July, 2015, the State Council and the General Office of the Central Committee issued the Opinions on Strengthening the Construction of Social Security Prevention and Control System, proposing to incorporate the informationization of social security prevention and control into the overall planning of smart city construction, making full use of technologies such as the new generation Internet, Internet of Things, big data, cloud computing and intelligent sensing, remote sensing, satellite positioning and geographic information system, innovating social security prevention and control means, improving the digitalization, networking and intelligence level of public security management, and creating a number of organically integrated demonstration projects.
In 2020, the Ministry of Industry and Information Technology issued the "Notice on Launching the Pilot Demonstration of Network Security Technology Application in 2020", proposing security solutions such as basic management, trusted access, threat monitoring, situation awareness, etc. in terms of IoT cards, IoT chips, networking terminals, gateways, platforms and applications, combining the network security requirements of typical scenarios such as smart home, smart meter reading, retail services, smart security, smart logistics and smart agriculture.
In March, 2021, the Fourth Session of the 13th National People’s Congress voted to pass the 14th Five-Year Plan, which mentioned the cultivation and expansion of emerging digital industries related to intelligent security such as artificial intelligence, big data, blockchain, cloud computing and network security, and the upgrading of industrial levels such as communication equipment, core electronic components and key software.
In 2021, 31 provinces and cities in China successively put forward the development plan of intelligent security industry during the "Tenth Five-Year Plan" period. The planning contents mainly focus on the following points: (1) perfecting the social security prevention and control system and promoting the construction of safe cities; (2) Focus on the development of digital economy industry and form a digital security industry cluster; (3) Xinchuang is applied to industrial Internet, intelligent security, smart energy and other fields, forming a "Xinchuang+"overall solution.
(2) Market space
According to the data, the domestic public security information market scale was 72.08 billion yuan in 2018, 81.58 billion yuan in 2019 and 91.63 billion yuan in 2020, with a year-on-year growth rate of 12.32%. With the full coverage of the domestic basic network and the continuous improvement of the information level of public security management, there is still much room for development in the information construction of public security, and the market scale is expected to exceed 100 billion in 2022. Under the call of the national policy of "ruling the country according to law and enforcing the law in a civilized way", and under the background of the country’s efforts to build a sunny government and strengthen the standardization and informatization construction of law enforcement, the industry will usher in a period of rapid development, and it is expected that the market scale of the whole public security informatization will be broad.
II. Main businesses of the Company during the reporting period
The company shall comply with the disclosure requirements of "Software and Information Technology Service Industry" in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.3-Disclosure of Industry Information.
Based on the products and technologies related to the sensing, connection and platform layer of the Internet of Things architecture, Gaoxin starts from the application of the downstream Internet of Things industry, takes the two core common technologies of "holographic intelligence" and "ubiquitous communication" as the middle platform of science and technology, and realizes the strategic layout and industrial empowerment of the vertical integration of "terminal+application" of the Internet of Things. With the long-term deep cultivation of the Internet of Things, its business focuses on the Internet of Vehicles, smart transportation and public safety, and is committed to The main products and services are divided into three business segments: Internet of Things connection and terminal and application, police terminal and police information application, and software system and solution.
I. Internet of Vehicles and Smart Traffic Track
(1) Business overview
As for the business of "Internet of Things Connection, Terminal and Application", the company is mainly located in the field of Internet of Things transportation, based on the research and development of core technologies such as 5G+V2X communication, artificial intelligence, UHF RFID, augmented reality, big data analysis and mining, and with a full range of intelligent transportation solutions and full-stack intelligent networking solutions, it helps traffic to be safer and smarter.
(2) Main products
The company’s vehicle networking and intelligent transportation solutions have a complete "end+cloud" technical architecture. The overall architecture covers "vehicle terminal equipment layer, roadside equipment layer, platform layer and application layer". The whole scheme is centered around "people-vehicle-road-network-cloud", and at the same time, it can provide traffic flow collection, signal control, road video monitoring, situation judgment, traffic big data, comprehensive information release, and.
In terms of products, the company has accumulated profound technology in vehicle unit, vehicle-road coordination and vehicle networking platform, and has built a complete product system including vehicle terminal, roadside equipment, communication module and V2X platform, as well as a number of self-developed software and hardware products applied to intelligent transportation projects.
1. Automotive electronic identification products and solutions
At present, China is rapidly entering the era of vehicle networking, and the electronic vehicle identification (electronic license plate) will be used as a safe and credible "digital identity source" for intelligent networked vehicles and self-driving vehicles in the future, and will be more widely used. "Smart Car Innovation and Development Strategy" clearly "promulgated smart car logo management measures to strengthen the identity authentication, real-time tracking and event traceability of smart cars." The Guide to the Construction of National Vehicle Networking Industry Standard System (Intelligent Vehicle Management) requires that the authentic digital identity be used to identify the real identity of intelligent networked vehicles. Under the vehicle networking environment, it is necessary to install special reading equipment to read or write the relevant identity information of intelligent networked vehicles.
The company takes the car-related RFID technology as the core, providing customers with a full range of software and hardware products and solutions for end-to-end RF reading and visual RF dual-base reading, mainly covering: ① overall solutions such as technical research, product research, project implementation, car-related scene operation, delivery and acceptance of automobile electronic identification (electronic license plate); ② The social system solutions for the comprehensive management of electric bicycles, such as digital license plate production, registration and filing, road running and community management.
In terms of products, the company provides a complete set of technologies and products for electronic identification of automobiles and digital management of electric bicycles, including sensing layer equipment (including digital number plates of electric bicycles, ceramic labels/strips, indoor and outdoor readers, integrated readers, handheld readers, etc.), platform layer software (equipment remote management platform, intelligent traffic data platform, card management platform, etc.) and application layer software (fake deck inspection system, traffic flow monitoring system, etc.).
The company has continuously increased the R&D investment and product building for V2X technology and UHF RFID motor vehicle electronic identification series technology, and completed the research and development of many new products such as vehicle networking MEC, V2X protocol stack, vehicle networking RSU, radio frequency and video integrated reading equipment, and handset reading and writing module series.
Main products of roadside equipment and platforms:
2. Vehicle-road collaborative products and solutions
(1) Intelligent networking products and solutions
Based on the national experience of 300+ smart cities and intelligent transportation construction, Gao Xinxing has built a city-level commercial intelligent networking solution for urban "point, line and area" multi-scenarios based on C-V2X technology in the period of accelerating the business process of 5G and car networking. The company can provide a full range of core technologies such as roadside communication, edge computing intelligent unit, vehicle-mounted intelligent terminal, cloud control platform and various algorithm protocols. The comprehensive scheme includes urban vehicle networking solutions (applied to urban smart bus, Robotaxi, urban automatic driving connection, smart municipal special vehicle, smart logistics vehicle and other business scenarios), intercity vehicle networking solutions (applied to smart tunnels, smart high-speed toll stations, smart high-speed service areas, smart high-speed ramp control and guidance, smart high-speed key sections and other business scenarios) and vehicle networking solutions in specific areas (applied to parks, ports, airports, Scenic spots, test sites and other business scenarios), and combined with autonomous driving technology to create a number of smart transportation innovative business scenario applications, forming five major capabilities and characteristics of Gaoxin in the field of intelligent network connection, such as holographic perception, high-speed information transmission, efficient computing and processing, application integration and innovation, and decision support empowerment.
The company has formed a matrix of all train networking products, such as 5G+V2X module, OBU, RSU, V2X protocol stack, MEC, and the fusion algorithm of radar and video. Through the perceptual fusion technology of radar and video, it can perceive all kinds of environment, traffic status and traffic incident information of road information in real time, and support the identification of eight types of traffic participation, such as cars and pedestrians, within an effective range.
(2) Intelligent transportation products and solutions
The company has been deeply involved in the smart transportation industry for many years, and has rich experience in project delivery and system operation and maintenance. Its business covers urban traffic management, comprehensive transportation management, highway management and other fields. It can provide comprehensive intelligent transportation and vehicle networking solutions such as traffic flow collection, signal control, road video monitoring, off-site law enforcement, situation judgment, traffic big data, comprehensive information release, command and dispatch, and vehicle-road coordination. It is one of the few comprehensive transportation solutions and core application product research and development in China. The company focuses on expanding urban intelligent transportation and high-speed services, and integrates technical achievements such as video intelligence, AR, RFID and V2X with business systems. The main products and solutions include traffic operation system, intelligent traffic integrated command platform, intelligent traffic signal control system, intelligent traffic situation platform and other business products, as well as intelligent traffic applications such as high-speed management and control platform and traffic control video inspection system. The smart transportation industry is growing in scale and has broad prospects. Gaoxinxing will continue to deploy in the industry field, and further integrate information technologies such as big data, artificial intelligence and Internet of Things, namely cloud computing, with intelligent transportation to help the development of China’s transportation industry.
Main products and solutions of the company’s intelligent transportation:
3. Car-end products and solutions
In the current era of intelligent networking, the automobile industry is facing great development opportunities. The company is committed to providing better, smarter, safer and more reliable wireless connections and services for car networking industry partners and car owners. Based on the precipitation of cellular communication technology in recent 20 years and the close cooperation with upstream and downstream partners in the vehicle networking industry chain, the company has the capability of demand analysis, product definition, R&D, testing and delivery of complete vehicle terminals, launched a number of vehicle terminal products and vehicle-level module products for the vehicle front-loading and rear-loading markets, and established a supporting system for R&D, quality, testing, delivery and after-sales that meets the high-quality requirements of vehicles. It has obtained IATF16949 system certification, CMMI Level5 certificate and German mainland VDA6.3 certification, and is also the first batch of car networking enterprises authorized by Qualcomm’s 5G vehicle platform. The main products of the company’s car networking include 4G, 5G Only, 5G+C-V2X car front-loading module, car front-loading terminal T-Box, full-function car diagnosis after-loading product OBD, etc.
T-Box vehicle-mounted front-loading terminal: the system and process of R&D and production delivery have passed the most stringent IATF16949 automobile industry quality system certification of TUV Rheinland Group in the world in strict accordance with the requirements of front-loading OEM; It has the quality of car regulations and adopts the classic T-Box architecture, which is stable and reliable; Support key data protection and other security mechanisms, in line with the "SHE" security specification; The self-developed communication module that meets the technical requirements of vehicle regulations has been fully verified by domestic and foreign vehicle projects, and has been widely used in fuel vehicles, new energy vehicles and other vehicles. OBD full-function intelligent product after vehicle installation: It integrates the functional unit modules such as 4G communication, GNSS satellite positioning, accelerometer and gyroscope, and can realize the functions of vehicle WiFi, positioning and tracking, driving behavior analysis and judgment, vehicle fault diagnosis and alarm. The company can provide operators with an end-to-end vehicle networking 4OBD solution of "intelligent vehicle terminal products+platform /APP", helping operators to realize the whole process business from data collection, data sharing to data application, and has served 20+ operators around the world.
Main products of vehicle terminal:
Relying on the existing intelligent networking and UHF RFID-related technologies, the company laid out C-V2X vehicle-mounted equipment and roadside equipment, and grasped the industry opportunities brought by C-V2X in the era from 4G to 5G. The company has formed an advantage barrier of overseas+domestic market in the front and rear installation field of the Internet of Vehicles, realizing the outstanding advantages of foreign operators and domestic car factories. After-installed OBD products have reached supply relations with more overseas operators, and continued to expand operators in Europe and Southeast Asia; The front-loaded T-Box will enter more domestic vehicle manufacturers, strive to reach cooperation with Tier1 suppliers at home and abroad, and provide products and services for world-class car manufacturers. In addition to C-V2X equipment, it will also explore the smart transportation layout of C-V2X equipment+solution platform+application.
4. Rail Transit Products and Solutions
In 2021, the high-quality development of China’s railways achieved new results and achieved a good start in the 14 th Five-Year Plan. The national railways completed investment in fixed assets of 748.9 billion yuan, of which the national railways completed 661.6 billion yuan; 4,208 kilometers of new lines (2,168 kilometers of high-speed rail) were put into operation, and the national railway operating mileage exceeded 150,000 kilometers (the high-speed rail exceeded 40,000 kilometers). The "Tenth Five-Year Plan" for the Development of Modern Comprehensive Transportation System puts forward that by 2025, comprehensive transportation will basically achieve integrated development, and substantial breakthroughs will be made in intellectualization and greening, and comprehensive capabilities, service quality, operational efficiency and overall benefits will be significantly improved, and transportation development will move towards the world-class level. By 2025, the railway operating mileage will reach 165,000 kilometers, of which the high-speed railway operating mileage will reach 50,000 kilometers. In the next 3-5 years (2023 -2025), China will also build about 11,700 kilometers of railways, including 8,600 kilometers of high-speed railways and 3,100 kilometers of ordinary-speed railways. After 2023, the average annual growth of high-speed railways and ordinary-speed railways will be 2,867 kilometers.
The company has been deeply involved in the railway transportation market for 20 years and ranks among the best in the vertical market share of on-board equipment of railway rail cars. Combining various railway communication, control and information technologies, the company has created three series of products and solutions, namely "GYK railcar operation control equipment", "locomotive integrated wireless communication equipment" and "railcar safety information system", to meet the diversified and all-round railway operation safety requirements of customers. The company has been accelerating the trial and technical review of the new generation of train control equipment, laying a solid foundation for the follow-up products to go online. At the same time, adhering to the spirit of breakthrough and innovation, the company has expanded its business to subway engineering vehicles, intensified its efforts to develop a train control system for subway engineering vehicles that adapts to multiple scenarios and modes, and combined with special systems such as dispatching communication, video monitoring and plane shunting to provide an overall solution for subway engineering vehicles’ driving safety.
Research and development of rail transit products and solutions;
Second, the public safety track
(1) Business overview
In the implementation of the Internet of Things strategy, Gao Xinxing chose the vertical application field of public safety. The main products are divided into "police terminal and police information application" and "software system and solution". The company has been deeply involved in the field of public safety for more than ten years, always guided by the policy of "rule of law in China", deeply grasping the pain points and needs of customers with profound business experience and technical precipitation, and taking the Internet of Things, artificial intelligence, big data and video technology as the core, serving the police such as Kexin, legal system, traffic police, supervision, public security and anti-smuggling as applied products; Focusing on intelligent security and urban governance, we will build core business systems such as smart law enforcement, smart terminal, smart new police service and real-life AR through independent innovation and resource integration, and strive to build a city-wide prevention and control system, innovate a new urban governance pattern, and promote the process of public security informationization and intelligent transformation.
(2) Main products
1. Smart law enforcement system products
The company’s "smart law enforcement system" empowers law enforcement standardization. The system takes intelligent case handling and intelligent supervision as two pillar platforms, builds unified technical standards around the core elements and business processes of law enforcement management, and unifies the management functions of all law enforcement elements such as property management, case handling place management and case file management of the business pedigree, integrates law enforcement management into the case handling process, runs supervision and evaluation through the management process, and realizes pre-warning and in-process guidance through intelligent guidance, intelligent pre-judgment, precise supervision and precise training. After the judgment, a "cloud+terminal" all-round intelligent law enforcement product system was formed, which naturally combined online and offline, and realized the burden reduction, efficiency improvement and energy improvement for the police handling cases, provided standardized guidance for the whole process of law enforcement and case handling, and provided accurate guidance for the leadership decision-making.
Based on the concept of law enforcement system, the company mainly completed the micro-service transformation of the intelligent case-handling platform to the construction guide of the new generation police comprehensive platform of the Ministry of Public Security, which met the requirements of Shangyun deployment; It integrates the requirements of case handling place management and case handling supervision and management, develops and publishes a standard version of law enforcement management platform, seamlessly connects the business data of the three centers, and meets the needs of provincial and municipal customers for macro management of law enforcement case handling places; Re-unified planning and design were carried out for the services such as remote interrogation, lawyer meeting, and remote evidence showing, and a new version of video meeting integrated platform product was completed, which improved the technical reusability and business connectivity; Several versions of the three-center products have been iteratively upgraded, focusing on improving the product’s operational stability, rapid deployment, simple operation and maintenance, enhancing user experience and business process synergy, completing the localization adaptation of software and hardware platforms, and obtaining the certification of major integrated hardware manufacturers such as Huawei and Shuguang. In addition to two platforms and three centers, the company also plans to develop integrated hardware products such as electronic evidence management integrated machine, alarm receiving self-service terminal, electronic signature printing terminal, etc., and improve the original hardware products such as smart cabinets to realize the organic coordinated development of ().
Research and development of smart law enforcement system products:
2. Smart law enforcement terminal products
With the development of society towards the rule of law, the complexity of the law enforcement environment poses a great challenge to law enforcement personnel. In order to reduce differences in the law enforcement process, improve the credibility and efficiency of law enforcement, and protect the legitimate rights and interests of law enforcement personnel, high-tech emerging technologies based on video surveillance, video intelligent analysis, big data, cloud computing, augmented reality and other fields can provide the most comprehensive overall solution by combining terminals, acquisition equipment, management platform software and intelligent analysis algorithms. The company’s new generation of audio-visual management platform can realize the unified access and management of mobile and fixed audio-visual equipment, the unified push and scheduling services of various types of audio-visual streams, positioning streams and alarm streams, and the seamless integration of on-site real-time command and scheduling with traditional audio-visual applications. The concept of "smart new policing" runs through the audio-visual management platform, promoting the information construction of public security science and technology, improving the work efficiency of public security organs and meeting the needs of social security in the new situation.
Research and development of main products of smart law enforcement terminal:
3. Video intelligent products and solutions
At present, video images have become the most commonly used means in police work. Gao Xinxing gives full play to the technical advantages of taking video as the main line and puts forward an intelligent video solution. This solution takes view analysis, artificial intelligence, big data and cloud computing as the core technologies, and relies on the system architecture of "one cloud, one lake and one platform". Through hierarchical decoupling and agile integration of algorithms, applications and hardware, various businesses can be quickly launched. The core business products include video image database, video networking platform, enabling middle platform and video integrated application platform. Research and development of video intelligent products and solutions;
4. Video holographic products and solutions
The high-tech emerging multi-level networked three-dimensional prevention and control cloud defense platform takes the AR augmented reality patent pioneered in the industry as the core, and based on the video map engine, the cities in the province are managed in a gridded partition on the video map. By fusing all kinds of police, video and other data of "county-city-province", the details of buildings, streets, people, cars, emergencies and police forces in the highlight video are automatically superimposed on the "real map" based on the highlight video in the form of point, line and area map layers, so as to truly realize the command of one map in the whole province, enhance the function of cross-regional command, and achieve a flat, fast and accurate command effect. The main business products are AR camera, AR cloud defense system, 3D holographic command platform, AR integrated machine, AR gateway, etc.
Third, other major Internet of Things products
(1) Wireless communication module products and solutions
With the evolution trend of cellular communication technology, from 4G to 5G era, the company’s cellular communication module covers all scenarios of high, medium and low rates, and has layouts in 2G/3G/4G/Cat.M1, 5G and V2X technologies. In terms of products, the company has successively launched a number of 5G communication modules. The company took the lead in completing the domestic three-certificate certification based on the 5G module GM800(M.2 interface) of Qualcomm SDX55 platform. The first batch passed the warehousing test of China Telecom and got the key to open the domestic 5G door. The research and development of the 5G module GM801 packaged with LGA platform was completed, and it was first applied to the 5G CPE terminal. The 4G module has been tested by tens of millions of market applications, and has exerted its strength in vertical application fields such as car networking, industrial Internet of Things, smart meters, mobile payment, security monitoring, consumer electronics, asset tracking, etc., providing reliable Internet of Things connections for tens of millions of devices around the world.
Main products of wireless communication module:
(B) Communication dynamic ring monitoring products and solutions
Based on the dynamic ring monitoring products, the company deeply explores the needs of customers to extend the scene, and expands to vertical applications in other industries such as power, finance and chain stores, creating a full range of intelligent communication Internet of Things products from the sensing layer, acquisition layer, transmission layer to the central application layer. At the same time, the comprehensive operation and maintenance and operation management service of IDC data center, which is "customer-centered, process-based and benefit-value-centered", provides users with end-to-end all-round service support and provides customers with safe, convenient, efficient and energy-saving diversified products and comprehensive solutions. At present, the company has mobile ring monitoring solutions for base station rooms, integrated monitoring solutions for intelligent power distribution facilities, operation and maintenance management solutions for data center infrastructure, and operation support management solutions for data centers, etc. The market share of this segment of the company in domestic operators’ mobile ring monitoring has always remained the first.
Research and development of dynamic loop monitoring products and solutions;
Fourth, the specific business model of the company’s main business
(A) R&D model
The company adopts a research and development mode dominated by independent research and development, and has formed a research and development division system in which the Group and its divisions/subsidiaries perform their respective functions. Specifically, the Academia Sinica of the Group conducts research on general technologies such as big data, AI and Internet of Things, and has the technical ability to transplant to domestic equipment; Product line R&D departments are set up under each business division and subsidiary to support business needs and realize the sharing of R&D resources of the whole group.
According to the market demand put forward by the product operation team, the company’s R&D center will conduct technical, economic and market feasibility analysis with the finance, procurement and marketing departments to jointly determine the R&D plan of new products. For the core link or technology of the product, we will develop it completely independently, and for some supporting technologies, we will adopt cooperative or outsourcing development methods when necessary to improve the research and development efficiency. The new products developed must go through the processes of achievement appraisal, small batch production, final trial and design finalization, and can only be promoted and sold to the market after passing the inspection by the R&D and Quality Management Department of the company.
(B) the sales model
The sales of the company’s products are divided into domestic market and overseas market, and the sales channels include direct selling and distribution mode, in which direct selling is the main mode, supplemented by distribution, and direct selling mode is adopted for group customers and new product markets to directly grasp and manage important customer resources and provide technical services in time; For other customers and markets, the distribution mode is adopted, so as to concentrate resources on product technology research and development, and at the same time promote the rapid expansion of the products of the target company in various vertical markets, and accelerate the sales return and increase the market share. The company’s car networking products, communication modules and public security information products are mainly sold in the domestic market, while the car networking products are mainly sold in the international market. In order to meet the needs of market development and facilitate sales management, the company divides the global sales areas including China for different products. At present, it has established a relatively perfect distribution channel base in China and basically sells overseas through direct sales and agent channels.
(3) Procurement mode
The raw materials, structural parts, purchased parts, auxiliary materials, packaging materials, machinery and equipment required by the company are centrally purchased through a special supply chain department. The company has formulated rules and regulations such as Group Procurement Management Measures, Procurement Control Procedures and Supplier Management Procedures, which are used to standardize procurement behavior, ensure product quality and timely supply, and reduce procurement costs and risks. In the specific implementation, after the business unit of the company defines the customer’s product demand, it determines the material demand list together with the company’s R&D department, and provides it to the supply chain department to make overall arrangements for procurement, and the procurement personnel perform procurement according to the material category. In view of the material requirements of common materials and large projects, the company adopts bidding to purchase, determines the order price, supplier composition and purchasing ratio, and then allocates orders to suppliers according to the purchasing requirements. Generally speaking, after a company issues a purchase order to a supplier, the supplier arranges the material preparation according to the purchase order, delivers it to the company after the material preparation is completed, and the company accepts it after the incoming materials pass the inspection. The quality management personnel of the supply chain department ensure that the raw materials purchased by the company meet the requirements of the company and customers.
(D) Mode of production
The company’s products are mainly used in the Internet of Vehicles and intelligent transportation, police terminal and police information application, smart city software platform and application, and intelligent rail transit and other Internet of Things application fields, specifically including IOT modules, roadside unit equipment, public security information products and moving ring monitoring equipment, etc., driven by market demand, and produced in strict accordance with the company’s quality management system and regulations according to the product’s own characteristics and users’ demand characteristics, production plan, process specifications and technical specifications.
The company adopts the production mode of combining outsourcing and self-production, and the products that cannot be produced by itself due to production site restrictions are handed over to outsourcing. For some products produced by outsourcing, the company entrusts the production process to outsourcing manufacturers, and focuses on the research and development of products and core technologies. In order to ensure the product quality and production efficiency, the company has established a strict management system for outsourcing manufacturers, selected the first-class outsourcing manufacturers in the industry, and strictly followed the requirements of ISO9001 quality management system, and sent specialists to the site to control the production quality of outsourcing manufacturers to ensure the product quality.
For some products produced independently, flexible group work mode and parallel work mode emphasizing cooperation are adopted in production, and manual, semi-automatic and automatic lean production mode is moderately adopted, so that resources can be rationally allocated and fully utilized, and products meeting customer requirements can be delivered on time with good quality and quantity. The company’s production process covers organizational management, site and facilities management, behavior control and safety technology management. The production process can be divided into production process confirmation, production scheduling, production welding, assembly, debugging and acceptance.
Third, the core competitiveness analysis
(A) track advantages
At present, the deployment and support of the digital economy such as 5G, new infrastructure, industrial Internet, smart cities, and the number of Internet of Things connections are booming. Many cities in China have been actively deploying and accelerating the promotion of 5G Internet of Things application scenarios. High-emerging and dedicated vertical application fields of Internet of Things, such as car networking, smart transportation and public safety, are the key cultivation industries in the future development direction of the country, with broad market space. The company will continue to focus on the Internet of Things industry to promote the rapid development of various businesses and win a leading market position.
(B) Technology and qualification advantages
1. Master the core common technologies of the Internet of Things.
(1) Ubiquitous communication technology: to achieve full coverage of all systems and series in the communication field, covering GSM/GPRS and CDMA 1X； of 2G networks; WCDMA, EV-DO and TD-SCDMA； of 3G network; TDD-LTE, FDD-LTE (including NB-IoT) and LoRa； of 4G networks; A full range of wireless communication technologies of the Internet of Things, such as 5G network and C-V2X, covering various communication network standards, are even more widely used in ubiquitous connection scenarios such as car connection and Internet of Things.
(2) Holographic intelligent technology: the dual deep integration of AI decision-making and AR interaction is realized, the boundary of human perceptual interaction is expanded by using AR holographic technology, and the AI cognitive ability is integrated to help realize fast and accurate decision-making. In the aspect of video and audio management, it has the full-stack underlying technology to realize the basic support ability of video and audio for multi-system, multi-product and multi-scene; Large-scale AI algorithm, with the ability of scene rapid iteration; Self-developed big data computing framework, providing hundreds of billions of seconds of processing power.
2. Patent and qualification advantages
The company attaches great importance to scientific and technological innovation and product research and development, has rich experience in industrialization of scientific and technological achievements, and has formed a perfect comprehensive research and development system. By the end of the reporting period, the company and its holding subsidiaries had applied for more than 1,350 patents and more than 1,300 software copyrights, with high market recognition and value of intellectual property rights.
At present, the company has obtained the "National Enterprise Technology Center" jointly recognized by the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation, which indicates that the company’s innovation level has achieved a leap-forward improvement and plays a leading role in the industry. During the reporting period, the company once again passed the first-class qualification of ITSS operation and maintenance service capability maturity (the first enterprise in Guangdong Province that passed this first-class qualification) and the CMMI5-devv1.3 maturity certificate issued by the most stringent certification institution in the international software field. It has "TUV Rheinland IATF16949：2016 Quality Management System Standard Certification", "ISO 9001: 2015", "ISO27001" and "ISO14001 Certification", "Safety Technology Prevention System Design, Construction and Maintenance Qualification Grade I", "Security Engineering Enterprise Design, Construction and Maintenance Capability Certificate (Grade I)" and "Electronic and Intelligent Engineering Professional Contracting Grade I Qualification" At the same time, the company also has a number of qualification certificates such as National Intellectual Property Advantage Enterprise, Guangdong Intellectual Property Demonstration Enterprise, High-tech Enterprise Certificate, AAA Enterprise Credit Rating Certificate, Guangdong Contract-abiding and Credit-abiding Enterprise (for 14 consecutive years), Guangdong Industrial Enterprise Industrial Internet Application Benchmark and Guangzhou Artificial Intelligence Registration Enterprise.Highlighting the company’s advantages in many aspects, such as honest management and comprehensive strength of the industry, is conducive to the company’s positive role in attracting investment, government bidding, signing cooperation and so on.
(3) Product advantages
(1) Vehicle networking product capability
The company has accumulated more than 100 million Internet of Things devices worldwide, and delivered more than 10 million Internet of Vehicles terminals. It is the first enterprise in the industry to invest in 5G and V2X products and research and development, and also the first enterprise in the world to launch the terminal products of 5G+V2X rail modules; The company actively participated in more than 40 related topics and standards drafting of vehicle networking technology and industrial application; Obtained patents related to 100+ car networking products, and has a complete system and capability from demand to R&D, testing, production and manufacturing. The system and process of research and development, production and delivery of the company’s car networking products are strictly in accordance with the requirements of the pre-installed OEM; It has passed the IATF16949：2016 quality management system standard certification of —TUV Rheinland, the authoritative and well-known certification institution in the automobile industry, and obtained the pass to enter the automobile front-loading market, which indicates that the company’s quality management system level and product quality assurance ability have reached a higher level in the industry; Obtained CMMI Level5 certificate and VDA6.3 certification in mainland Germany; Completed the multi-vehicle interface protocol, adapted to more than 14,000 vehicles, gained a deep understanding and technical accumulation of communication networks in major overseas countries and regions, and obtained many international certifications such as FCC/CE/RoHS/E-Mark/WEEE/Wi-Fi/BT.
(2) automobile electronic identification product capability
In UHF RFID technology, the company has independent research and development strength in antenna design, network management and other fields, and has mastered RFID core patents such as air interface protocol, anti-collision algorithm, signal processing, coding and encryption. The company also actively participates in the establishment of local and national RFID standard systems, and has a complete set of technologies and products for electronic identification of motor vehicles and digital management of electric bicycles; The first domestic reading and writing equipment meeting the national standard of motor vehicle electronic identification was introduced, and the first test report of motor vehicle electronic identification reading and writing equipment issued by the traffic safety product quality supervision and testing center of the Ministry of Public Security was obtained. The products passed all the tests organized by Wuxi. At the same time, he also served as a member of the overall group, frequency and communication group and application group of China Electronic Label Working Group, participated in intellectual property group affairs, and promoted the construction of RFID standard industrialization in China.
(3) train control product capability of rail cars
The company has formed a product system with rail car operation control equipment (GYK), subway engineering vehicle traffic safety monitoring system, locomotive integrated wireless communication equipment (CIR), GYK remote maintenance monitoring system (GMS), self-propelled special equipment remote monitoring system (GMIS2000S) and video monitoring system (CLZS-700) as the core. It ranks among the best in the vertical market share of train control of railway rail cars; Actively undertake various tasks and topics organized by China National Railway Group Co., Ltd. and China Railway Academy Group Co., Ltd., participate in the formulation of a number of industrial technical standards, have a number of completely independent intellectual property rights, and are "railway transportation infrastructure equipment manufacturers" certified by the State Railway Administration. Many products have won "administrative license certificate", "CRCC certification certificate", "SIL4 safety grade certification" and "product bureau-level technical appraisal", and passed the international IRIS system certification, and are railways.
(D) Delivery advantages
At present, the company focuses on the product transformation strategy, and the whole product line covers the vehicle terminal equipment layer, roadside equipment layer, platform layer and application layer. Under the current tight market supply, the Group’s supply chain has the ability to efficiently coordinate and manage the internal and external resources of the supply chain, ensuring the stable and orderly delivery of the tasks throughout the year, fully guaranteeing the company’s sufficient supply of all kinds of required raw materials and the supply of alternative raw materials, and providing guarantee and support for the sustained, healthy and stable development of the business. In terms of manufacturing, the company can assist R&D in pilot test and quality management support at the product end in combination with product planning, and effectively put the product scheme on the ground, and have efficient engineering landing ability in manufacturing to ensure product quality and quality. During the reporting period, the company’s manufacturing passed the on-site audit of dozens of well-known companies at home and abroad.
At the same time, the company has more than ten years of project operation experience in application scenarios such as smart transportation, safe city and smart city, and has a few domestic IoT application enterprises with full-stack product coverage and large-scale system project delivery capabilities. The company has undertaken 300+ smart transportation, safe city, smart city and other projects, with strong practical experience, intensively studied various police services, quickly captured and deeply understood customer needs and business models, combined with its own information technology advantages, and customized the model with mature products and characteristics to ensure stable and efficient project results, excellent experience and in-place details.
(E) Customer advantage
The company’s business covers Europe, America, Asia and other countries and regions, providing products and solutions for 1,000+ customers around the world. Domestic customers cover three major communication operators, vehicle manufacturers, provincial and municipal government departments, people’s banks, commercial banks, railway corporations, local railway bureaus and other customers in different fields; Internationally, the company has formed in-depth cooperation with overseas communication operators, TSP (Internet car service provider), insurance companies and Tier1 suppliers. In terms of car-end products and rail car terminal products, the company’s main customers are domestic vehicle manufacturers and domestic railway bureaus, providing customers with high-quality and safe communication products, with high industry entry threshold and strong customer stickiness, forming certain competitive barriers. The company will continue to improve the customer structure, enhance the diversification of customer groups and enhance customer stickiness.
(VI) Ecological advantages
Gao Xinxing advocates the concept of an open, cooperative and win-win ecosystem, expands industrial value and creates a healthy and benign industrial ecosystem. By building a win-win ecosystem with customers, partners, industrial organizations and standards organizations, we will promote technological progress and industrial development. Gao Xinxing believes that "openness, cooperation and win-win" can foster each other’s growth and development and jointly promote the integration and development of the Internet of Things industry. Gaoxinxing will continue to build a mature ecosystem together with partners, innovate application scenarios and cooperation models, and help customers and partners explore new situations and release the potential of the industry.
The company maintains long-term strategic cooperation with Huawei, Tencent, Baidu, ZTE and other Internet and communication companies. During the reporting period, Gao Xinxing officially became the national preferred integrator of Huawei’s traffic police business, and it is one of the four collections of Huawei’s national traffic police business. Relying on Huawei’s strong product and market capabilities, Gao Xinxing’s experience and ability in traffic police business will be more outstanding and comprehensive. At the same time, it was awarded the Best Industry Partner, Best ISV Partner, Outstanding Anping Industry Contribution Award and Science and Technology Innovation Award by Huawei, which was highly recognized by the partners.
(VII) Advantages of group management mode
In recent years, the company has completed the organizational structure reform, carried out group unified management, coordinated development and efficient operation of all business divisions and subsidiaries, and concentrated resources to support the development of major business tracks. Business resources are shared among business units in the group, and the group headquarters provides functional support to its subsidiaries and business divisions in marketing channels, supply chain, general technology research and development, financial management, human resources, operation management and capital operation, so as to promote the smooth implementation of the overall business strategy of the group through the functional positioning and functional sharing of the group headquarters.
Fourth, the main business analysis
1. Overview
Gaoxinxing is committed to becoming the leading product and service provider of the Internet of Things in smart cities around the world, and has become a leader in the application field and sub-sectors of the Internet of Things represented by the Internet of Vehicles, smart transportation and public safety through building networking big data application industrial clusters.
In 2021, the management of the company worked hard around the annual business indicators issued by the board of directors of the group at the beginning of the year. All business segments and all cadres and employees of the group worked together and the business situation improved. High emerging consolidated statements realized operating income of 2,672,941,300 yuan, up 14.91% year-on-year; The net profit attributable to the parent company was 43,292,700 yuan, a year-on-year increase of 103.93%, and the net profit turned losses into profits; The net cash flow from operating activities was 181,426,000 yuan, up 190.03% year-on-year, and it turned positive for the first time after three years. In the main business income, the main products are divided into three business segments: Internet of Things connection and terminal and application, police terminal and police information application, and software system and solution. (1) "Internet of Things connections, terminals and applications": realized income of 1,501,719,900 yuan, accounting for 56.18% of operating income, and revenue increased by 25.48% year-on-year. Among them, the income of car networking products was 330.3054 million yuan, accounting for 12.36% of the operating income, and the income increased by 115.77% year-on-year; (2) "Application of Police Terminal and Police Informatization": The income was 391,556,600 yuan, accounting for 14.65% of the operating income, and the income increased by 40.07% year-on-year; (3) "Software systems and solutions": the revenue was 779,664,800 yuan, accounting for 29.17% of the operating income, and the revenue decreased by 8.25% year-on-year. By region, (1)"Domestic sales": realized income of 2,420,762,200 yuan, accounting for 90.57% of operating income, and revenue increased by 7.89% year-on-year; (2) Foreign sales: 252,179,200 yuan was realized, accounting for 9.43% of the operating income, and the income increased by 206.29% year-on-year. In terms of R&D investment, the total R&D investment in 2021 was 356.285 million yuan, accounting for 13.33% of the main income. During the reporting period, the Company focused on the following aspects:
First, focus on key strategies and strive to improve the management level and quality.
(A) business as the center, the implementation of performance growth strategy.
By further analyzing the external market, competitive environment and sales resources as a whole, the company promotes the transformation of product management, deeply discusses the direction and business planning of key products, focuses on resource investment, and makes the core products bigger and stronger, thus forming the core competitiveness of the group. All business divisions and subsidiaries developed in coordination and operated efficiently, and concentrated resources to support the development of major businesses. The comprehensive operating level of major units was steady and improved, and the operating quality was improved, achieving performance growth.
(2) Breakthroughs have been made in the products and business of the two main tracks.
1. Internet of Vehicles and Smart Traffic Track
(1) automotive electronic identification products and solutions-the electric bicycle industry has landed rapidly and won a breakthrough.
The market share of the company’s automobile electronic identification (electronic license plate) remains at the leading level in China, and the product line vertically covers the whole scene of software and hardware products. The company’s motor vehicle electronic identification related projects have been applied in nearly 20 cities such as Chongqing, Changsha, Nanjing, Xiamen, Wuxi, Shenzhen, Beijing, Tianjin and Wuhan, and won 100 million yuan-level projects covering the whole city such as Northwest China and Chongqing, making it the first brand of automotive electronic identification in China. The winning bid for the key vehicle electronic identification system project in Changsha, Hunan Province-the company has built the core framework of electronic identification operation of motor vehicles with local traffic police, banks and other third-party organizations involved in vehicle operation, which provides a good environmental foundation for the application scenario construction and socialized operation of electronic identification, and is the first in the industry. At the same time, the company has also established a local subsidiary specializing in Internet operation of electronic identification of motor vehicles in Changsha. The successful landing of Tianjin PICC Motor Vehicle Electronic Identification System Project is the first time to realize the promotion mode of combining motor vehicle electronic identification with insurance industry, further promoting the promotion and application of related products and technologies, and enhancing the market share and industry influence of motor vehicle electronic identification products. During the reporting period, we won the bid for the equipment procurement project of Yueyang key vehicle management system, promoted the comprehensive application of "Beidou+automobile electronic license plate", maximized the synergistic effect between vehicles and roads, and improved the utilization rate of road resources and traffic management ability.
The company has also won new breakthroughs in the field of non-motor vehicle management (electric bicycles). The company’s electric bicycle electronic license plate and dual-base integrated identification equipment have become the first equipment in the industry to pass the product quality inspection of the Institute of Traffic Science of the Ministry of Public Security. The equipment has comprehensively optimized the electric bicycle management system from the data collection layer to the business application layer, provided all-round solutions from electric bicycle filing to road riding behavior monitoring, and realized the deployment in actual projects. The company won the bid for the project of Shijiazhuang Electric Vehicle Integrated Management Service System, which mainly provides the digital number plate of electric bicycles, the registration service system of electric bicycles, system deployment and so on. Shijiazhuang has fully implemented the information management of electric bicycles, realizing the coverage of the number plate of the first provincial capital city in northern China. In November 2021, the company also won the bid for the purchase order of Guangzhou bicycle license plate, and undertook the largest digital license plate supply project in China at that time to provide electronic license plates for electric vehicles to Guangdong Province. During the reporting period, the company carried out pilot projects in Guangdong and several cities in various provinces.
The company has been deeply involved in the subdivision of automobile electronic identification for many years, participated in the standard research and development, testing and pilot work of automobile electronic identification, launched the first reading and writing equipment in China that meets the national standard of automobile electronic identification, and obtained the first test report of reading and writing equipment for automobile electronic identification issued by the traffic safety product quality supervision and testing center of the Ministry of Public Security. During the reporting period, Gaoxin Zhilian Technology Co., Ltd., a subsidiary of the company engaged in electronic license plate business, won the title of national key specialization and new giant enterprise, and won the special prize of Tianjin Scientific Progress.
(2) Vehicle-road collaborative products and solutions
Intelligent networking products and solutions-benefiting from the increasing coverage of roadside intelligent equipment
The company has successfully laid out pilot projects in several cities by virtue of its overall brand advantages, business advantages and outstanding ability to understand the industry in the field of car networking. During the reporting period, we focused on the demonstration area of intelligent network connection application, the construction of Shuangzhi pilot cities, the application of intelligent network connection bus and the construction and application of intelligent network connection test site, and landed smart bus, intelligent network connection test site, smart high-speed and other projects in Guangdong, Henan, Tianjin and other places for specific scenarios; At the same time, actively participate in the construction of Tianjin Xiqing District, Changsha Pilot Area and Guangzhou, Zhuhai and other intelligent network demonstration areas. Actively apply for relevant intellectual property rights in vehicle-road collaboration technology, and have obtained a number of patents on vehicle-road collaboration technology such as lightning fusion algorithm and tunnel positioning based on C-V2X, and applied for software copyrights such as V2X cloud control platform and multi-access edge computing MEC; Co-sponsored the development of roadside fusion perception system with ICT Institute and other units, participated in the pre-research of national standards for vehicle-road collaborative information interaction series, and participated in several standards under research such as vehicle-road collaboration and V2X platform on smart highways; At the same time, Gao Xinxing also obtained the qualified evaluation report of MEC equipment for vehicle networking issued by China ICT Institute, becoming the first enterprise in the industry to pass the MEC equipment test of ICT Institute; Industry-University-Research has been further strengthened, and has cooperated with Tongji University, Sun Yat-sen University and many other university partners to carry out innovative scientific research work of intelligent network; At present, the company has initially possessed the upstream and downstream ecology of intelligent networking, and has formed strategic cooperation with a number of head Internet companies and autonomous driving companies, with complementary advantages and differentiated cooperation.Jointly explore opportunities for coordinated market of vehicles and roads all over the country.
In July 2021, Guangzhou was approved as a national public service platform project of "5G+ car networking" by the Ministry of Industry and Information Technology, led by Guangzhou Automobile Group, and the consortium composed of China Automobile (Beijing) Intelligent Networked Automobile Research Institute, Guangdong Intelligent Networked Automobile Innovation Center, Guangzhou Public Transport Group and Gaoxin Technology Group became one of the three winning teams in China, helping Guangzhou to build a pilot application environment for 5G+ car networking. The development of this project will rebuild the foundation stone for Guangzhou to strive for a national-level car networking pilot area, which is of great significance for the transformation and upgrading of the city’s automobile industry, promoting the high-quality and healthy development of domestic car networking technologies, applications and industries, and establishing new advantages for future development. It will also provide Guangzhou experience for establishing a national unified car networking system at the national level.
The company actively participates in industry organizations and alliances, as well as the compilation of vehicle networking topics and standard formulation.
Intelligent Transportation Products and Solutions —— Winning the Landing of Continuous Large Projects
During the reporting period, Gao Xinxing officially became the national preferred integrator of Huawei’s traffic police business, and it is one of the four collections of Huawei’s national traffic police business. Relying on Huawei’s strong product and market capabilities, Gao Xinxing’s experience and ability in traffic police business will be more outstanding and comprehensive. By the end of the reporting period, the company has successfully delivered a number of smart transportation projects in Guangdong, Hunan, Liaoning, Gansu, Guizhou, Inner Mongolia, etc., among which more than 10 projects are over 100 million. During the reporting period, the company once again won more than 100 million yuan of Shenzhen rail transit orders-Shenzhen Metro Line 16 project police communication system equipment procurement project, and the urban rail market continued to make breakthroughs.
(3) Car-end products and solutions-double the revenue compared with the previous year’s performance.
With the recovery of the epidemic, the company’s domestic and foreign car networking products and market development have gradually recovered. The company’s car networking terminal products achieved a substantial recovery in performance, achieving an operating income of 330,305,400 yuan, an increase of 115.77% over the previous year. In the front-loading market, the company is committed to providing car-level terminal product solutions for car manufacturers and Tier1 manufacturers with rich experience in supporting front-loading products and project management specifications and product design and development specifications that meet the requirements of the front-loading system, so as to realize reliable on-board communication. The company has provided safe and reliable car networking wireless connection services and car terminal products for car networking industry partners such as Geely, Chang ‘an, (), Guangzhou Automobile, continental Germany, Mobis, Pioneer, Junsheng, etc., and has more than ten years of service experience in the former loading plant and million-level supporting experience in car regulation modules. T-Box products for commercial vehicles and passenger cars have been adapted or commercialized on dozens of models of customers. During the reporting period, the company’s car networking products won large orders and added a number of OEM module designated projects such as Hyundai, Hongqi and Changan. In the aftermarket, the company cooperated with many well-known TSPs (Internet car service providers) in Europe and North America, and head communication operators AT&T and T-Mobile to develop on-board diagnostic system products (4OBD and UBI) for the aftermarket. The company’s OBD products have deep cooperation with the world-leading Tier1 German mainland, which has won deep praise from customers, and the OBD market has broken through foreign operators such as Viettel.The company’s aftermarket products have realized the adaptive adaptation of more than 14,000 models around the world, meeting the strict requirements of the international market, and have been highly recognized and affirmed by customers after listing.
The company is the first camp enterprise of 5G(V2X) vehicle communication. In terms of products, the company has launched the world’s first batch of LGA-packaged vehicle specification module GM860A, which is put into commercial use, and flexibly meets the loading requirements for vehicle-mounted front-loading, rear-loading and roadside equipment and the communication requirements of 5G+C-V2X. At the same time, the company’s 5G+V2X vehicle terminal has been put into pre-commercial testing in the first batch in the world. This product is developed based on GM860A, and CAN match all kinds of conventional or self-driving vehicles through vehicle Ethernet and CAN interface. The global commercialization of the company’s 5G+V2X vehicle classification module and 5G+V2X vehicle terminal has accelerated the mass production process of intelligent networked vehicles, which has an important milestone significance for the large-scale commercialization of 5G vehicle networking.
During the reporting period, the company won the "Treasure Award" of the Internet of Things think tank in 2021, the "Gold Award" of IOT media products in 2021, and the NB-IoT enterprise pioneer list in 2021. (4) Rail transit products and solutions-keep the top position in the market segment for many years.
With the steady growth of railway investment planning, the company provides mature and stable products just needed in the segmentation field of railway rail cars, with high customer stickiness and good reputation in the industry. The stock market and incremental market complement each other, maintaining strong competitiveness in product quality, technology and service.
The company’s new generation of train control product GYK-160G has passed the trial examination of several railway bureaus in China State Railway Group Co.,Ltd., and has met the technical evaluation conditions. The safety level of self-developed products has reached the highest SIL4 level, achieving a historic breakthrough in operation control from 120km/h to 160km/h for the first time; Complete the development of V2.0, a traffic safety monitoring system for metro engineering vehicles, and run it in Guangzhou Metro and pass the acceptance test; The "Cloud Eye" intelligent safety management and control system V1.0 for railway freight yard has been developed, and it has been put into use and sold in China State Railway Group Co.,Ltd.. Complete the research and development of WTP(5G) access technology for the new generation of locomotive integrated wireless communication equipment (CIR), and complete the joint debugging test in the loop laboratory of china academy of railway sciences Group Co., Ltd.; V1.0, the intelligent monitoring system for anti-slip iron shoes in the station, passed the test of the National Railway Product Quality Supervision and Inspection Center; By the end of the reporting period, the company has successfully won the bid for the procurement project of GYK equipment remote maintenance and monitoring system (GMS) of China Railway Jinan Bureau Group Co., Ltd., China Railway Nanning Bureau Group Co., Ltd. and () Co., Ltd..
In terms of urban rail application, based on the judgment of the rapid growth of the engineering vehicle business in the urban rail market, the company makes use of the superior products and mature solutions formed in the national railway market to vigorously develop the urban rail market. The company actively cooperates with signal system manufacturers to promote the in-depth application of the train control system of engineering vehicles. The company has continuously tapped the potential needs of customers and achieved breakthroughs in the urban rail market in Guangzhou, Hefei, Wuxi, Changzhou, Nanchang and Changsha. The acceptance of the first full-scene construction vehicle safety monitoring system in the subway industry indicates that the technical innovation of the full-scene application of the subway construction vehicle safety system in the main line and the depot has made phased progress towards the mode of "human control+machine control"; In Guangzhou Metro, the access of interlocking information and mainline signal of the depot is realized, which verifies the application value of the company’s train control product scheme in the urban rail market. The company actively participates in the frontier topics of the industry, actively undertakes various tasks organized by China National Railway Group Co., Ltd. and China Railway Academy Group Co., Ltd., and joins the research group of China State Railway Group Co.,Ltd. Railway 5G private network to participate in the formulation of standards and promote the development of the industry; Actively apply to join "China Local Railway Association", "Guangzhou Rail Transit Industry Alliance" and "Zhongguancun Rail Transit Video and Security Industry Technology Alliance" and become members of the Association and Alliance.
2. The public safety track strives for steady progress, taking advantage of the trend of national public safety informatization construction.
Gao Xinxing has been deeply involved in public security informatization for more than ten years, focusing on business application products strategically, covering the whole life cycle service of full-stack products required by the industry, and providing overall delivery and operation and maintenance services of integrated projects. During the reporting period, the company made good progress in the strategic layout and market development of public safety track.
In terms of smart law enforcement products, China exclusively provides a "cloud+terminal" smart law enforcement system to increase efficiency and reduce burdens for public security law enforcement, and help the construction of China ruled by law to be stable and far-reaching. The company broke through the two lifelines of "smart case handling" and "smart case management", and connected the office center, case management center and property management center to build a "cloud+terminal" smart law enforcement system, which realized the first time that the business of public prosecution, law and company was fully connected to the material evidence center in China; Complete the business planning and technical modeling of intelligent case handling platform 4.0, and open up a new mode of unified promotion of case management and property management products in prefecture-level cities.
The company’s intelligent law enforcement case handling platform ranks first in the national market share. It has landed in Qinghai, Ningxia, Guangdong, Shandong and other provincial-level smart law enforcement case-handling platforms, laying a good foundation for subsequent business expansion in other provinces and cities and establishing the first brand of domestic law enforcement standardization. By the end of the reporting period, the company has been deeply involved in law enforcement business for more than ten years. The first "cloud+terminal" intelligent law enforcement system has been laid out in 23 provinces, 300+ prefecture-level cities and 1,600+county-level cities, covering 500+ projects. Actively participated in the formulation of standards at the ministerial level and in five provinces; We have broken through the national platforms such as China Customs General Administration’s anti-smuggling case handling platform and China Marine Police’s law enforcement case handling platform, and more than ten provincial platforms such as Guangdong Province’s law enforcement case handling platform, Shandong Province’s law enforcement management system, Shanghai City’s law enforcement case handling platform and Yunnan Province’s wisdom rule of law platform, laying a solid foundation for the promotion of more products in the future. Landing in Guangdong Province’s first intelligent law enforcement "platform+terminal" integrated star project, access to 40+ case-handling areas, more than 400 case-handling area terminal equipment. At the same time, the company participated in the preparation of standards and specifications such as the new police integrated micro-service of the Ministry of Public Security, and occupied the commanding heights in the market for establishing the first brand of law enforcement standardization.
In terms of smart law enforcement terminal business, it focuses on mobile law enforcement audio and video supervision, and the product scheme realizes the full chain coverage from mobile collection, transmission and platform management. We will continue to promote the standardization and popularization of on-site law enforcement, deepen the dominant areas in the public security and traffic police industries, complete the construction of three provincial platforms in Shandong, Yunnan and Shanxi, and make new breakthroughs in the comprehensive management of urban management and political and legal committees. In the administrative law enforcement industry, we actively expanded industry customers, and benefited from the "three systems" related policies. All administrative law enforcement units started the record system of the whole process of law enforcement, and completed the construction of audio-visual platforms for four provincial administrative law enforcement units, including Henan and Shanxi, during the year, and made full efforts in administrative law enforcement business. The company also successfully entered the police equipment agreement procurement catalogue; Seize the 5G market and realize the application of 5G law enforcement recorder in the public security mobile information network; Take the lead in completing product localization adaptation, obtain localization adaptation certification, and launch localization end-to-end solutions.
In terms of video intelligent business, we will build video intelligent and data intelligent applications with people and vehicles as the core and data as the wings, covering the full-stack business of monitoring and early warning, investigation and judgment, verification and control, empowering various police types and comprehensively improving the actual combat capability of public security. The company’s first video cloud in the industry empowers the middle platform, enhances the agile delivery ability of personalized application requirements, helps the public security users to create an application innovation ecology, and launches a full-stack video cloud solution, which has landed in a provincial-level node construction project of a public security video cloud in Guangdong Province, a video cloud construction project in Zhuhai, a video monitoring and bayonet construction project of roads around Guangdong Province, Shaoguan Xueliang video cloud, Guangqing light rail video cloud, Zhongshan video cloud and other projects, and also provides strong model support for the company’s future market development.
In terms of video holography business, the company pioneered AR video holography technology in China and deeply studied the intelligent application of video, helping police officers to maximize video application and comprehensively improve the modernization level of social comprehensive management ability. The cooperation between the company and its strategic partner Huawei is deepening. In terms of product integration, the combination of Huawei’s holographic intersection solution and high-emerging high-point AR real-life products can achieve the perfect matching of traffic incident verification, intersection traffic evaluation digitization and high-point real-life command; In terms of business integration, the high-tech emerging AR real-life command platform carries out event information flow, real-life linkage and event handling for traffic incidents identified by holographic intersections, which improves the handling efficiency of traffic management and forms a business closed loop of traffic management, helping the traffic police to command and dispatch the "last mile". The company has successfully landed in Sinopec, Guangzhou Fortune Forum, Guangzhou Customs and other cases. The company’s three-dimensional cloud defense system has spread all over 24 provinces, 100+ cities and 200+ projects.
In terms of smart new policing and smart new supervision business, we will focus on the two major themes of security management and control and business integration, and realize smart prevention and control in all fields, smart management of all factors and all-round smart services. The company has accumulated the comprehensive database project of Guangdong Provincial Supervision Corps, the new supervision project of Zhuhai Wisdom and the new supervision project of Zhongshan Wisdom, setting a new benchmark for the construction of smart supervision in Guangdong and radiating business to the whole country.
3. Other IoT products and solutions
The number of wireless communication module products-Internet of Things connections is increasing, breaking through a brand-new industry: the company has a profound understanding of communication technology, rich industry experience, and cellular.
The communication module covers the whole scene of high, medium and low rates, and has the layout in 2G/3G/4G/Cat.M1, 5G and V2X technologies. GM800, the company’s 5G module, took the lead in obtaining network access certificate, non-commissioned approval certificate, CCC certification and China Telecom warehousing certification, and took the lead in supporting the networks of China Telecom, China Mobile, China Unicom and China Radio and Television. The company’s module products are mainly used in smart meters, asset tracking, financial payment, security monitoring, public network intercom and other major industries. In terms of regional distribution, China, Europe and North America have become the main application areas of cellular modules, and Southeast Asia, India and South America will continue to increase the number of connections. At the same time, the company is pre-researching a new generation of modules for the domestic 5G market, reducing the cost of 5G modules, improving the pain points of high cost and difficult promotion of 5G modules in the existing market, and promoting the increasing number of Internet of Things connections.
Communication dynamic ring monitoring products and solutions-Over the years, the mobile ring monitoring market share of domestic operators has always been the first: at present, the company has the mobile ring monitoring solution of base station room, the integrated monitoring solution of intelligent power distribution facilities, the operation and maintenance management solution of data center infrastructure and the operation support management solution of data center, etc., and the market share of this segment of the company has always been the first in domestic operators. The company has opened up a new development direction in power business, and laid out three major business directions: power distribution room monitoring, moving ring monitoring in information communication room, and three-dimensional inspection of substation/material warehouse. The three-dimensional video inspection system was introduced through the integration and innovation of 3D+AR technology, and successfully delivered in Jiangsu and Zhejiang projects; The data center business has been carried out steadily, and has successfully won the DCIM project in Shaanxi, the energy consumption project in Henan and the dynamic monitoring projects in several data centers, which has also laid a solid foundation for the subsequent data center business development.
(C) R&D system has made great progress.
In 2021, the company’s R&D system will continue to upgrade in core technologies, product research and development, and capacity system construction. The division of R&D organization resources is further clarified. The Central Research Institute of the Group conducts research on general technologies such as artificial intelligence, big data, AI, public platforms and Internet of Things, and has the technical ability to transplant to domestic equipment; Product line R&D departments are set up under all business divisions and subsidiaries to support business needs; R&D and Quality Management Department of the Group-the platform for capacity building, management and promotion of R&D system and quality system, empowers all business units of the Group, provides service support and ensures the realization of the strategic objectives of the Group.
At the same time, in order to realize the sharing of R&D resources, reduce costs and increase efficiency. The company realizes standardized control and value evaluation of R&D projects through R&D project management and project classification; The first phase of online PLM system further standardized the effective control of the whole product life cycle of the whole group; Set up an R&D sharing team to manage the R&D public resources of the Group as a whole and promote the internal sharing of R&D resources; Unify R&D environment management and configuration management, control R&D information security of the Group, and save R&D costs; Integrate technical shelves, knowledge base and experience base, build a platform for sharing R&D achievements, help each product line to improve R&D capabilities and level, and reduce R&D investment. On the technical level, the company has made various improvements and breakthroughs in many technologies this year; At the product level, there are gains in the management and development of self-developed products.
(IV) The Group’s supply chain system was further improved.
In 2021, the Group’s supply chain system was further improved. Based on the guidance of taking management as the center, pulling products with market and pulling management with operation, the supply chain cooperates with R&D and sales to sort out the whole life cycle management process of products, which clarifies the input and output between supply chain, R&D and product line at all stages of products, improves product management ability and reduces business risks.
Procurement and delivery: In the face of the tight supply of raw materials in the market, the Group’s supply chain proactively identifies supply risks, coordinates and manages internal and external resources of the supply chain, and ensures that the delivery tasks are carried out in a stable and orderly manner throughout the year, which fully guarantees the sufficient supply of all kinds of raw materials needed by the company and the replenishment of alternative raw materials, and provides guarantee and support for the sustained, healthy and stable development of the business; Inventory management: the inventory management system of the whole group has been established, the naming principles of the locations of all legal persons in the whole group have been unified, and the person in charge of the locations has been defined. Take the lead in sorting out, counting and re-ordering all the warehouses of the whole group, including R&D samples, issued goods and after-sales spare parts; Cost optimization: the supply chain platform continues to promote the overall coordination of R&D, supply and marketing of the whole group, take multiple measures in operation and management, implement lean production to reduce costs and increase efficiency, improve the demand forecasting and stocking mechanism, continuously improve the accuracy of demand forecasting of all units by adhering to S&OP meetings, further optimize and reduce the material library, improve the material reuse rate, and gradually form the material scale advantage; Manufacturing: assist R&D with product planning to support pilot test and quality management at the product end, effectively put the product scheme on the ground, improve the engineering ability in manufacturing, adhere to the road of intelligent manufacturing, and ensure good quality, fast delivery and excellent technology. During the reporting period, the company’s manufacturing successfully passed the on-site audit of dozens of well-known companies at home and abroad.
(E) Domestic+foreign dual channels were further strengthened.
The company’s business faces the global market and has provided products and solutions for 1000+ customers around the world. In the domestic market, the sales network covers 31 provinces, municipalities and autonomous regions, more than 173 prefecture-level service outlets and more than 20 provincial offices abroad. The company has integrated the marketing network of public safety business, set up a marketing center, created a unified sales platform for government industries, realized resource sharing of the sales platform, made full use of the resource sharing platform, brought into play the advantages of group operation, and increased the company’s internal market cooperative combat capability. At present, it is running well. In the international market, the company actively responded to the impact of the epidemic on overseas markets, focused on online marketing through the maintenance and update of self-media channels such as websites and WeChat, and exhibited its brand by participating in industry and online exhibitions, creating a safe, reliable and professional brand image of car networking, and committed to becoming a reliable partner of customers. The company has set up sales platforms in the United States, Europe and other places, completed the establishment of overseas sales channels, and formed in-depth cooperation with many top communication operators in Europe and America. The products have been exported to the United States, Canada, Germany, Spain, Britain, Sweden, Belgium, Czech Republic, Austria, Mexico, Malaysia and other countries and regions. In addition, the company has obtained high-emerging trademarks in more than ten countries and regions such as the United States, Japan, Germany, France, and the United Kingdom, laying a brand foundation for high-emerging brands to accelerate their going out to sea.
Second, the level of group management continued to improve.
The Group optimized the setting of functional departments at headquarters, and strengthened the functional orientation of functional departments at headquarters in party building, rule making, sharing platform construction, enabling services and improving management efficiency.
Party building leads management and establishes a brand with characteristics of non-public party building: On the occasion of the party’s centenary birthday, the Group Party is now achieving the annual performance target of "High-tech party member Struggler". Carry out in-depth study and education of party history, and combine it with enterprise development, enterprise management planning and party building to promote production; Efforts will be made to build a demonstration site for party building in non-public enterprises in the new era and give play to the leading role of party building brands. The Party Committee of Gaoxinxing Group has become a characteristic brand of non-public party building in Guangzhou, and won the honor of "two new" economic organizations and "two strong and six good" party organizations in Guangzhou.
Greatly improve the informatization and digitalization level of the Group, and improve the efficiency of examination and approval decision-making: actively close to the business needs, and further optimize and upgrade the informatization office systems such as CRM system, PLM system, R&D desktop cloud, HCM system and fee control system, effectively improve the management and control ability of IT system, complete the normalization of the approval process of the Group, and optimize the efficiency of the approval process.
Optimize the structure of human resources and establish a long-term incentive mechanism: take business needs as the guide, manage and serve business, devote to value-added activities and value contributions, and carry out human resources construction around many aspects. Focus on "optimizing structure, improving quality and efficiency, and stimulating vitality" to improve quality and efficiency through the incentive mechanism; Strengthen the orientation of employing people and the improvement of personnel structure, and promote the streamlining and rejuvenation of cadres. During the reporting period, the group level promoted the implementation of the fifth phase of the core employee stock ownership plan, and several subsidiaries successively promoted the stock ownership plan involving senior management and core employees, and established a long-term incentive and restraint mechanism to effectively stimulate employees’ motivation, creativity and vitality; And the introduction of the "High-tech Development Program V2.0" to enhance employee professionalism, centripetal force, cohesion and so on.
Financial management reduces costs and improves efficiency, and the cash flow becomes strong: the project of improving quality and increasing efficiency of financial information is implemented, and the process specification system and accounting guidance manual of various business types are output; In terms of budget management, financial analysis and fund planning, we further optimized the process, further improved the financial platform’s ability to support business from the group and business units, started comprehensive budget management, optimized projects, promoted payment collection and strictly controlled period expenses, reduced operating costs, improved operating efficiency and capital utilization efficiency, and reduced capital costs. We also took a number of measures to actively improve the cash flow problem and realize the company’s annual operating cash flow turning positive.
Safeguarding the technological achievements in the company’s core fields: By the end of the reporting period, the company and its holding subsidiaries had applied for 1,350+ patents and 1,300+ software copyrights, which had high market recognition and value. The application and authorization of a number of patent qualifications effectively protect the company’s inventions, prevent the loss of scientific research achievements, and ensure the first-Mover advantage of the company’s core fields; Once again, it passed the first-class ITSS and the highest-level CMMI5 qualification certification and other qualifications.
Significant progress has been made in capital operation and major investment: Xinglian Tiantong, the first internal incubation subsidiary of the group, introduced tens of millions of investments from strategic investors with state-owned assets background and was recognized by capital; The Group’s "Intelligent Manufacturing Base Project" located in Guangzhou Zhongxin Knowledge City officially laid the foundation stone, which is one of the first major digital new infrastructure projects in Guangzhou, and also provides an important industrial base for Guangzhou’s artificial intelligence and Internet of Things industry gathering. The "Intelligent Rail Transit Industry Base Project", a subsidiary of Gaoxin Chuanglian, has made good progress. After the completion of this project, it will become the first intelligent rail transit industry base in Zhejiang Province, featuring train control, communication, informationization and artificial intelligence products and solutions, with the development goal of improving the output value of the rail transit industry in Zhejiang Province and helping to promote the intelligent development of the rail transit industry.
V. Prospect of the Company’s Future DevelopmentUnder the current wave of digital transformation, industrial Internet of Things, big data, artificial intelligence and 5G have become a general trend. The digital upgrade of thousands of industries means great opportunities for the industries and businesses in which Gaoxin is located. In 2022, the company has accumulated profound technology and market accumulation in many sub-application fields of Internet of Things, such as car networking, smart transportation and public safety, and continues to strive for the top position in the sub-fields. On the basis of customer orientation, the company will run through and guide the company’s overall activities in the new year with the theme of "technology leading, business focus, platform empowerment, organizational coordination and efficient implementation".
As a high-tech company with long-term development, products and technology are always the core competitiveness of the company, and it is necessary to constantly innovate in products to better meet customer needs and create value for customers, which is the source of the company’s development. Firm strategic focus, based on the Internet of Vehicles, smart transportation, public safety and other Internet of Things industry applications. Put human, financial and material resources into the main business, strive to focus on business and become the new growth engine of the group, and establish a leading position in the industry. All business segments are based on big data applications (products) of the Internet of Things, benchmark the industry, actively embrace big data artificial intelligence technology, and all business units enhance exchanges and sharing in markets, technologies and resources to give full play to synergies.
The organizational structure and R&D system have been resolutely transformed into product-oriented companies. The organizational structure management of the Group further focuses on the strategic development needs, gradually adjusts and optimizes, and focuses on strengthening product management and sharing platform construction, so that the platform can empower all business units and give full play to the multiplier effect.
Clear organizational management principles and construction direction, and form a unified consensus internally. Standardize the governance structure of the group, continue to give full play to the management Committee and subordinate professional working groups, enhance the professional support of major decision-making and reduce the risk of major decision-making; Strengthen product management, reform product research and development mechanism, and implement product director responsibility system for end-to-end life cycle management of products; Strengthen the construction of headquarters sharing platform; The functional departments of the headquarters gradually adjust to the three-pillar model, integrate and concentrate on basic affairs, and the professional service functions are close to the front line to realize the help and empowerment of business units; Adjust the operation mechanism, integrate business resources and further focus on the main business.
R&D ability is improved, and PLM system improves project management ability. First, deeply understand the business and deepen the application. Further rationalize the complete R&D process from demand, project establishment, R&D to product release, and effectively share and reasonably control R&D resources; The second is to determine the core technologies in more subdivided fields to be in the forefront of the industry; The third is to increase the total number of applications for high-value invention patents and take the lead in establishing national standards or industry standards. Fourth, do a good job in public and basic technologies, reduce repeated development and reduce the difficulty of research and development. The overall principle is to focus resources on effective output of R&D investment and business expansion, giving priority to ensuring current income.
The planning of improving financial ability should start with one key point, one implementation and two unification. Focus on the construction of financial system, and the financial system will be transformed and upgraded to adapt to the current situation of product-oriented and project-oriented parallel company management; Fully implement the budget work, improve the overall budget management level, and unify fund management and accounting. Improve resource allocation and operational efficiency, implement management consulting results, and improve the profit-making and human-efficiency ratio of labor costs of 10,000 yuan.
The human resource capacity improvement plan adheres to the concept of "talent is the company’s first resource", and strives to create an open and inclusive human resource management environment of "attracting talents, activating talents and achieving talents". In 2022, it is necessary to promote the younger cadres and focus on evaluating the members of the management team, so that the top leaders can be promoted and demoted. At the same time, we will continue to improve the mechanism and system construction related to human resources, focusing on establishing and improving a scientific and effective incentive and restraint management system for value creation, value evaluation and value distribution, continuously improving the efficiency of human resources and realizing the competitive advantage of human efficiency in domestic industries. Enhance the team ability of the three pillars of the human resource management system around the needs of the company’s business development, in line with the positioning of "integration, service and professionalism", constantly promote organizational innovation, system innovation and mechanism innovation of the company’s human resource management, and build a professional, systematic and energy-saving human resource management system.
Supply chain capacity improvement. Focusing on the idea of seeking benefits from management, we should forge ahead, make up for shortcomings, enhance the overall ability of the supply chain team and do a good job in supporting the main business. First, the supply chain team is further integrated and finely divided, so as to improve efficiency, increase inventory turnover rate and significantly reduce costs; The second is to further strengthen the end-to-end supply chain business process construction, and eliminate management dead ends, blind spots and three-no-care zones; Third, adhere to the principle of quality first and strengthen the construction of quality culture.
IT and informatization capacity improvement planning, one focus, two unifications, three capabilities and four platforms. One key point is to support the organizational structure reform of the group; The two unifications are unified group IT management and unified group approval process; The three abilities are to establish group IT management and control ability, strengthen IT project management ability, and cultivate IT architecture design and data management ability. The four platforms are supply chain platform, financial management platform, human resources platform and operation management platform.
Risks faced by the company and countermeasures:
(1) Risk of changes in industry regulatory policies
At present, the company focuses on two vertical application fields of Internet of Things, namely, the Internet of Vehicles, intelligent transportation and public safety, building a big data industrial application cluster, and is committed to becoming a leading product and service provider of Internet of Things in smart cities around the world. The company’s business has strong industry foresight, and the infrastructure construction, public security informationization, software system and solution projects in the Internet of Vehicles business are greatly influenced by the investment decisions of national and local policies and the development process of the industry.
Countermeasures: In view of the above risks, the company has been strengthening the research on the guiding policies, development direction and industrial development law of its industry, paying attention to continuously upgrading its own products, technologies and solutions, paying close attention to the market iteration and the development of vertical innovation markets in its industry, and ensuring that the company stands at the forefront of the industrial wave. Actively promote the diversified development of the company’s business and build a diversified customer system.
(2) Risks in talent and management.
Human resources are an important factor in the development of science and technology enterprises. With the continuous expansion of the company’s business, the market competition and development platform that the company faces will also become larger and larger. We need more middle and high-end talents such as R&D, market expansion and industry experts to support us. If we can’t recruit, train or retain more talents, it will pose pressure and challenge to the company’s long-term development.
The company’s business scale and business scope are constantly expanding, the organizational structure is increasingly complex, and the requirements for company management are getting higher and higher. These changes will put forward new and higher requirements for company management, and also put forward higher requirements for the company to establish and improve management systems, systems and restraint mechanisms that meet the needs of enterprise development in a short period of time.
Countermeasures: Talent is the company’s first resource, and we will make every effort to create an open and inclusive management environment of "attracting talents, activating talents and achieving talents" and create a common organization belonging to high-tech emerging people. The company will vigorously promote the achievements of human resources consulting projects and further enhance the professional ability of the group’s overall human resources management. At the same time, the company will always implement the corporate culture spirit of "integrating culture", continue to promote the long-term incentive mechanism, extensively absorb and make good use of outstanding talents, speed up the training of a group of leading talents who can shoulder heavy responsibilities, and enhance the youthfulness, professionalism and professional ability of the talent team.
(3) the risk of technological innovation
The technology of the industry in which the company is located is very rapid, and the "subversive innovation" of industry demand and business model is constantly emerging. In this context, the company has the risk of losing its competitive advantage due to improper grasp of technical products and market trends, the risk of sunk costs due to mistakes in the development and application of key technologies, and the risk of existing core technologies being imitated by competitors due to leaks.
Countermeasures: The company attaches great importance to the investment in product R&D and the improvement of its comprehensive R&D strength, and has formed an effective technology R&D system. In view of the development trend of the industry, it actively does a good job in the research and development of new products and technical reserves.
(4) Project risk
Most of the company’s software systems and solutions are large-scale system integration projects, and the project implementation is complex, and the project implementation risk is high. The whole process from technical disclosure, scheme demonstration, deepening design, product selection, project procurement, project construction, system debugging, project acceptance and operation and maintenance after delivery must be carefully managed, which requires the company’s comprehensive strength to be very high, and the company has project implementation risks.
Countermeasures: The company will strengthen the selection of projects, and give priority to local projects with financial support or projects with strategic traction significance to build industry benchmarks. According to the national policy, timely adjust the project business model, transaction structure, payment method, etc. The company has summarized and accumulated successful experience in implementing large-scale projects, and will continue to strengthen project management, refine a series of systems such as project cost management, project schedule management, project risk management and project quality management, strictly control the standardization of project operation procedures, further enhance the company’s project delivery capacity, and reduce project implementation risks.
(5) Goodwill impairment risk
At present, the goodwill on the company’s books is generated by the acquisition of Gaoxin Chuanglian, with a balance of 147,155,200 yuan, accounting for 2.49% of the company’s total assets in 2021 and 4.38% of the net assets returned to the mother, with a small proportion. With the adverse effects of epidemic factors gradually decreasing, the demand for railway transportation has gradually recovered, and the demand for railway rail transit products engaged by Gaoxin Chuanglian has also gradually recovered. In 2021, Gaoxin Chuanglian achieved an operating income of 293,049,300 yuan, an increase of 13.12% over the same period of last year, achieving continuous growth. If in the future, Gaoxin Chuanglian fails to accurately grasp the market situation and the development trend of industry technology, as well as various factors such as intensified market competition and changes in industrial policies, the acquisition target may face the situation that the performance and operation are not up to expectations or the future business environment will undergo major adverse changes, and there is a risk of further impairment of goodwill, which may affect the company’s profits and losses in the future. The company comprehensively predicts that there is a certain risk of goodwill impairment in the future, but it is less likely.
Countermeasures: The company should integrate resources reasonably, quickly and effectively, give full play to industrial synergy, constantly improve corporate governance structure and internal control system, strengthen human resource management and cadre team building, and make use of existing advantages to continuously improve technology research and development and innovation capabilities, enhance comprehensive competitiveness, and enhance the overall operation level of the company and its subsidiaries.
(6) Epidemic risk
The domestic epidemic situation has been effectively controlled gradually, but it has not been completely calmed down, and uncertainties still exist. At the same time, the overseas epidemic situation continues to be repeated, resulting in the company’s efficiency decline in product delivery, project implementation, business negotiation and business promotion. The decline of related work efficiency will lead to the risk that the company’s short-term income growth will slow down or even decline. Countermeasures: On the one hand, the company will pay close attention to the development of the epidemic, make a response plan in advance, and actively deal with and respond to the risks and challenges it brings. On the other hand, strengthen the improvement of organizational management ability, and actively communicate with customers and suppliers to ensure the efficiency of telecommuting, and the company will actively respond to and meet the service needs of customers.