The revenue of the digital security and confidentiality segment of Dongfang Zhongke 002819 SZ has de

Mondo Technology Updated on 2024-02-01

Oriental Zhongke (002819SZ) announced on January 30, 2024 that on January 29, 2024, Dongfang Zhongke accepted the investigation of Rongtong ** Management *** and other institutions, deputy general manager and secretary of the board of directors: Chang Hong; IR: Huang Bozhi participated in the reception and answered questions raised by the research institutions.

Details of the research institutions are as follows:

Qian Jiaxing, Rongtong**Management***Bao Geran, Hongyi Yuanfang**Management***Zhang Zhaojun, Western Lide**Management***Fang Yan, Shanghai Jingxi Investment Management Partnership (Limited Partnership); Hu Zeying, Xuanyuan Private Equity**Investment Management (Guangdong)**Ye Shanting, Convergence Capital Management***Geng Junjun, Guoyuan**Shares***, Fang Jingshu, Huaan**Shares***, Li Zhongyu, Guojin**Shares***, Liu Xiaoyao, Kaiyuan**Shares***Sun Qian, Xingye**Shares***Song Xinyu, Dongfang**Shares***Tong Xinyi, Oriental Fortune**Shares***, Yi Yuxin, SDIC**Shares***

The main contents of the survey:

Chang Hong, deputy general manager and secretary of the board of directors of the company, gave a brief introduction to the 2023 performance forecast in combination with the company's main business

The company's main business includes two parts: one is testing technology and service-related business; The second is digital security and confidentiality-related business. The net profit attributable to shareholders of listed companies in 2023 will be a loss of 60 million yuan to 120 million yuan, a decrease of 107% to 114% over the same period last year; Net profit after deducting non-recurring gains and losses was a loss of 395 million yuan to 455 million yuan, a decrease of 227% to 276% over the same period last year. The reasons for the change in performance are as follows:

1. In 2023, the company's testing technology and service segment will continue to grow steadily.

In the testing technology and services sector, the company provides customers with comprehensive solutions based on various complex test application needs. As a leading provider of advanced testing technology and technology services in China, the company has paid attention to the accumulation of technology and services very early, and has formed a significant competitive advantage after twenty or thirty years of development. The company can provide differentiated solutions according to the differentiated needs of R&D customers; And at the same time, a large number of test cases have been accumulated. Over time, this competitive differentiation has become more and more important. The company's leading position in the industry is also increasingly consolidated.

Based on the company's large number of scattered customers, the company can timely grasp the needs of many emerging industries and make corresponding layouts. After listing, the company set up a new energy vehicle division in response to the rapid growth of test system integration needs of the emerging (new energy) automobile industry. In 2022, the company acquired Northlink Information Technology to continue to consolidate and expand its dominant position in this field and become one of the leading companies in the industry in professional testing services. The new energy vehicle testing segment expects revenue growth in 2023 to be higher than the average of the overall testing business compared to 2022.

In the future, the company will continue to pay attention to the industry opportunities in emerging industries such as semiconductors and consumer electronics, and strive to enter more specific industry tracks based on the company's significant advantages in test and measurement, so as to continue to drive the growth of test and measurement business.

Second, due to the decline in revenue and the increase in investment, the loss of the digital security and confidentiality sector has expanded.

The economic recovery in 2023 did not meet expectations, the fiscal budget was delayed, project funds were tight, and industry opportunities were relatively reduced or postponed, which had a greater impact on the overall operating performance of the company's digital security and confidentiality segment, and the revenue declined significantly. In the whole year of 2023, affected by the entire economic environment, the overall budget does not meet expectations, and the start of many orders is delayed, resulting in the overall situation of the macro market is not very optimistic and the income has declined.

After the listed company officially completed the merger and restructuring of Wanlihong in 2021, it has continued to integrate for more than two years. In particular, it is aimed at some emerging business directions, such as big data, artificial intelligence, and basic operating system business represented by Huawei Hongmeng. These businesses are all businesses with relatively high growth potential, and they also have the characteristics of large investment and slow results. In 2023, we will also make a relatively large investment in various business lines, including product lines, mainly in labor costs.

Combining these two factors, the final result of the entire digital security and confidentiality business is declining compared with 2022 revenue, costs continue to increase, and losses have been magnified.

In addition, in recent years, the company has also made certain achievements in the construction of the open source HarmonyOS ecosystem. As a key member of the OpenHarmony Working Group of the Open Atom Open Source Association, the company's subsidiary, Zhongke Hongluo, signed a strategic cooperation with Huawei terminals in early 2023 to jointly build the HarmonyOS ecosystem and continue to contribute**. In the field of industrial Internet of Things, we provide hardware ecosystem partners with professional HarmonyOS support, covering R&D work such as southbound migration and northbound application development. In the field of government office, in order to solve the security needs of mobile office, the company has launched a mobile office application solution based on Open Atom OpenHarmony, and launched Wanlihong tablet.

3. Goodwill impairment in consolidated statements 2400 million yuan-300 million yuan.

Due to the unsatisfactory overall operating situation of Wanlihong, the estimated goodwill impairment amount is higher than in 2022.

4. The net profit in 2023 will also be affected by the performance compensation of Wanlihong's counterparty, and there will be a certain degree of change.

In 2022, the fair value change profit and loss of the company's trading financial assets increased by approximately RMB1 billion due to consideration of the compensation that should be made by the performance commitment party. In 2023, the amount of profit or loss on changes in the fair value of the company's trading financial assets decreased compared with 2022 due to the performance compensation of Wanlihong's counterparties. Therefore, the company's net profit before deduction in 2023 is different from that in 2022.

For the future, we believe that the overall macroeconomic situation may be in a bottom area, and the opportunities are structural, requiring listed companies to make more investment and efforts in their business. On the other hand, the company will also make some efforts in the efficiency and cost control of operation management. Some new businesses have invested more resources and management to promote the overall business to have a more obvious improvement. I believe that there will be opportunities and space for further improvement in both business segments!

Q&A: Recently, the State-owned Assets Supervision and Administration Commission (SASAC) and the China Securities Regulatory Commission (CSRC) have proposed to promote the inclusion of market value in the assessment and evaluation system of central enterprises, and have expressed their efforts to improve the quality of listed companies controlled by central enterprises.

Answer: The controlling shareholder of the company is Oriental Scientific Instrument Holding Group, the actual controller is the Chinese Academy of Sciences Holdings, the Chinese Academy of Sciences Holdings, is the first state-owned asset management company approved by the Chinese Academy of Sciences, and is a pilot enterprise for the reform of the national operating state-owned asset management system. It was incorporated on April 12, 2002, and on behalf of the Chinese Academy of Sciences, it is responsible for exercising the rights of investors in accordance with the law for the investment enterprises of the Chinese Academy of Sciences, and assumes the corresponding responsibility for maintaining and increasing the value of the institute.

The company's management holds shares in listed companies and has always attached great importance to the company's market value management.

Q: What are the company's core competitive advantages in the field of new energy vehicle testing?

Answer: In the overall test and measurement sector, the company has accumulated a large number of test cases and long-term customer relationships for a long time, and with the passage of time and the further differentiation of the industry, the company's leading position in the industry has been increasingly consolidated. In the field of research and development, there may be continuous demand for new energy vehicles in the future; We will also increase R&D investment in the field of new energy vehicles.

The above content and data have nothing to do with the position of the interface and do not constitute investment advice. Do so at your own risk.

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