Kylin Xin'an suspended military procurement activities on suspicion of collusive bidding Recently, Kirin Xin'an Company has been suspended from participating in military procurement activities since January 29 due to suspected collusive bidding. According to the list released by the military procurement network, Kirin Xinan was listed as one of the companies that suspended military procurement because it was suspected of colluding with the procurement and asset management department of the management and security department of the National University of Defense Technology. It is worth noting that the board members of Kirin Xin'an are all from the National University of Defense Technology, which also makes this incident a lot of attention. Kirin Xinan said in the announcement that it will not be able to participate in military procurement during the suspension period, but it will not affect the company's continuing operations. However, given the importance of the defense business in Kirin Xinan's revenue, the incident has raised concerns about the company's continued profitability. This incident has raised concerns and questions about the military procurement system. Military procurement has always been a highly sensitive and important area aimed at ensuring the quality and safety of military equipment.
However, the alleged collusive bidding seriously violates the principle of fair competition, not only harming the interests of other participants, but also affecting the quality and effectiveness of military equipment. So, how to solve the problems in army procurement, ensure fair competition and high-quality equipment **? First of all, it is necessary to strengthen supervision and examination of the military's procurement process and establish stricter systems and norms. At the same time, we will strengthen the crackdown on suspected collusion in bidding and seriously deal with violations of laws and regulations. In addition, more enterprises should be encouraged to participate in military procurement, expand the scope of competition, and improve the transparency and efficiency of procurement. In addition to the reform of the military procurement system, enterprises themselves should also strengthen internal management and supervision, and establish a sound risk control mechanism. Enterprises should attach importance to honest management, pursue real and fair competition, and aim to provide high-quality products and services. Only in this way can we be invincible in the fierce market competition.
In short, Kirin Xin'an's suspension of military procurement activities on suspicion of collusive bidding has triggered reflection and discussion on the military procurement system. Military procurement is an important and sensitive area that requires strengthened regulation and regulation to ensure fair competition and high-quality equipment**. At the same time, enterprises should also strengthen internal management, pursue honest management, and aim to provide high-quality products and services. Only in this way can the true meaning and value of military procurement be realized. According to the recent announcement released by Kirin Xin'an, the company expects a loss in net profit attributable to the parent company in 2023, which is expected to be -40 million to -28 million yuan. This is a huge change, as Kirin Xinan has maintained a steady growth performance in the years leading up to its IPO. In 2022, Kirin Xin'an's defense business accounted for 75% of its revenue96%, while the power business accounted for only 17% of revenue.
However, in the first three quarters of 2023, Kirin Xinan's revenue was only 8873490,000 yuan, and the net profit loss attributable to the parent company was 3378080,000 yuan. Kirin Xinan explained that the procurement progress of customer informatization construction in the defense industry has been delayed compared with expectations, resulting in the company's revenue realization falling short of expectations. This may be the main reason for the decline in performance. Kirin Xinan's product line in the defense sector has been successful in large-scale applications, but the company's revenue and profit have been affected due to the delay in customer procurement schedules. Kirin Xinan was quite optimistic about the performance in 2023 before, and even formulated a corresponding incentive plan. However, the actual situation was far from what was expected, and the company had to terminate the incentive program. For Kirin Xin'an, the sharp decline in performance is a serious challenge. The company will need to reassess the market environment and competitive dynamics, and adjust its strategy and operating model to restore the momentum of performance growth.
In addition, it is also important to strengthen communication and cooperation with customers and improve service quality and efficiency. In general, Kirin Xinan has a good foundation and advantages in the field of national defense, but it also faces some challenges. Companies need to further enhance their competitiveness and adapt to changes in market demand in order to succeed in the fierce competition. Kirin Xin'an used to be a popular investment target in the A** field, but recently suffered a huge setback. At the beginning of the company's IPO, the company raised more than expected, leaving investors looking forward to its prospects. However, due to the inability to participate in military procurement, Kirin Xin'an's share price has been sharply**, and its market value has shrunk by more than seventy percent. This news is undoubtedly a heavy blow to investors. Military procurement has long been a piece of the pie for Chinese companies, especially technology companies. However, Kirin Xinan has been excluded from this field for a number of reasons.
Military procurement not only involves high technical strength and reliability assurance. Although Kirin Xinan has rich experience and technical strength in the field of information security, it is unable to meet the requirements of military procurement due to the restrictions of some policies and regulations. The share price of Kirin Xin'an**, the market value has shrunk by 70%, which has undoubtedly brought huge losses to investors. Investors once had high hopes for Kirin Xinan's prospects, but now they can only watch their investments evaporate. It also makes one wonder why a once-high-profile company would suffer such a huge blow after being unable to participate in military procurement. Perhaps, we can think about this from another angle. Since Kirin Xinan cannot participate in military procurement, can it find new opportunities in other areas? The market demand in the field of information security has always been large, and it is not limited to military procurement.
With the development of science and technology and the progress of society, people pay more and more attention to information security. Kirin Xinan can turn its attention to the civilian market and look for new business opportunities. In addition to the civilian market, Kirin Xinan can also consider expanding into the international market. China's information security technology also has a certain influence in the world, for example, in the field of network security, China has become the world's largest importer of network security technology. Kirin Xinan can take advantage of this opportunity to promote its products and technologies to the international market and find new growth points. Of course, in order to gain a foothold in the highly competitive market, Kirin Xinan also needs to strengthen its own R&D capabilities and innovation capabilities. In the field of information security, the speed of technological change is very fast, and only by constantly introducing new products and technologies can we remain competitive. At the same time, Kirin Xinan can also consider cooperating with other companies to jointly develop the market. Cooperation can bring resource sharing and complementary advantages, and further enhance the company's competitiveness.
In short, the difficulties encountered by Kirin Xinan are temporary, as long as the company can find a new direction of development, strengthen its own R&D capabilities and innovation capabilities, there is still a chance to achieve commercial success. Military procurement is only one field, while the market demand in the field of information security is vast. Kirin Xinan can turn its attention to the civilian market and the international market to find new business opportunities. At the same time, strengthening cooperation with other enterprises can also bring more opportunities. Let's wait and see, and look forward to Kirin Xin'an being able to get out of the predicament and show its strength and potential again.