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The upstream and downstream of the 5G+ industrial chain are exerting force, and the Internet of things applications are ushering in spring

The upstream and downstream of the 5G+ industrial chain are making efforts to usher in rapid development of the Internet of Things

1.1 In the 5G era, a variety of iot scenarios can be realized

5G improves performance in three typical application scenarios. According to the 5G Vision white paper published by the ITU’s International Telecommunication Union, 5G defines three typical application scenarios, They are the enhanced Mobile Broadband (eMBB) service that is upgraded for the original 4G broadband service, the ultra High Reliability and Low Latency (uRLLC) service for the scenario that requires high timely response, and the large-scale machine communication (mMTC) service for the scenario that a large number of communication devices are connected. 5G is far better than the widely used 4G network in terms of peak rate, connection density, end-to-end delay and other indicators. Spectrum efficiency is improved by 5-15 times, and energy efficiency and cost efficiency are improved by more than 100 times. In addition to surpassing the previous generation of mobile communication technology in terms of transmission rate, connection density, delay, power consumption and other indicators, the reform of 5G era is more supported by super performance indicators, oriented by specific business scenarios, so as to provide the ability of composite services.

Iot connectivity scenarios are complex and diverse. The terminal scenes of the Internet of Things are characterized by large number, wide distribution, different terminal sizes, and complex and diverse functions. According to different transmission rates, the application scenarios of the Internet of Things can be divided into ultra-low speed services represented by intelligent meter reading, intelligent street light and intelligent parking, medium-low speed services represented by wearable devices, POS machines and intelligent logistics, and high-speed services represented by automatic driving, long-range medical treatment and video surveillance.

The 5G R16 standard provides full coverage of high – and low-speed services for wide area networks. Faced with the complicated application scenarios of the Internet of Things, the communication protocols currently adopted are also very complex. According to different transmission distances, wireless network transmission scenarios of the Internet of Things can be divided into near field communication (NFC), LOCAL area network (LAN) and wide area network (WIDE-area network). 5G standards refer to the technical standards in the WIDE area network (WAN). In July 2020, the 5G R16 standard was frozen, the NB-iot standard for low and medium speed areas was included, and Cat 1 accelerated to replace 2G/3G, thus realizing the development of 5G full-rate service standard. Due to low transmission rate, NBIoT, Cat1 and other technologies are divided into low-power wide Area network (LPWAN), which can realize long-distance wireless signal transmission with low power consumption. They are mainly used in ultra-low/medium-low speed service scenarios such as intelligent meter reading, intelligent street lamp and intelligent wearable devices. 4G/5G is a high-speed long-distance transmission mode, which can be applied to video surveillance, telemedicine, autonomous driving and other high-speed business scenarios that require real-time performance.

1.2 Upstream Internet of Things module price reduction & downstream application enrichment, Internet of Things industry chain

The industrial chain of the Internet of Things can be roughly divided into four layers: perception layer, transport layer, platform layer and application layer. In essence, the Internet of Things is an extension of the Internet. On the basis of communication between people, the Internet of Things puts more emphasis on the interaction between people and objects and between objects. The perception layer is the data foundation of the Internet of Things. It obtains analog signals through sensors, then converts them into digital signals, and finally forwards them to the application layer by the transport layer. The transmission layer is mainly responsible for processing and transmitting the signals obtained by the sensing layer, which can be divided into wired transmission and wireless transmission, among which the wireless transmission is the main transmission mode. The platform layer is the connecting layer, which not only manages the terminal equipment at the bottom, but also provides soil for the incubation of the applications at the top.

Industry chain mature & upstream raw material costs reduced, module prices have significantly reduced. Wireless module integrates chip, memory and other components, and provides standard interface to realize the communication or positioning function of the terminal, which is the key to connect the perception layer and the network layer. China, North America and Europe are the three regions with the largest demand for cellular communication modules. According to Techno Systems Research, global shipments of cellular communication modules for the Internet of Things will grow to 313.2 million units by 2022. The price of 2G/3G/ NB-iot modules has been greatly reduced under the dual factors of the increasing maturity of the Internet of Things industry chain and the accelerating process of replacing chips made in China, which has reduced the cost of module enterprises. In particular, the nB-iot module, in 2017, its price was still at the left and right level of 100 yuan, the end of 2018 to 22 yuan below, 2019 price has been the same as 2G, or even lower. The price of 5G modules is expected to drop due to the maturity of the industrial chain, and the marginal cost of raw materials such as upstream chips will decrease with the increase of shipments.

Applications in the downstream of the industrial chain are increasingly abundant. After several years of development, more and more Internet applications from the blueprint into reality, as in the sharing of the Shared economic cycling, Shared charging treasure, wireless payment device, wireless gateway, smart home, intelligent city, wisdom, energy, industrial iot applications such as unmanned machine, robot, food traceability, farmland irrigation, agricultural application, Vehicle tracking, intelligent driving and other vehicle network should be used. The boom in the iot industry is largely driven by the emergence of downstream applications.

1.3 The giants increase investment to promote the continuous high economy of the Internet of Things

Connectivity is the starting point of the Internet of things. Application and connectivity promote each other and the Internet of things continues to grow. The connection between devices is the starting point of the Internet of things. Different terminals are interconnected, and applications are generated. Rich applications in turn attract more users and more connections for the Internet of Things.

According to the GSMA report, the number of global Internet of Things connections will nearly double from 12 billion in 2019 to 24.6 billion in 2025. Since the 13th Five-Year plan, the market size of The Internet of Things in China has been growing steadily. According to the Internet of Things White Paper (2020) of China Information and Communication Institute, the number of Internet of Things connections in China was 3.63 billion in 2019, among which mobile Internet of Things connections accounted for a large proportion, growing from 671 million in 2018 to 1.03 billion at the end of 2019. By 2025, the number of iot connections in China is expected to reach 8.01 billion, with a compound annual growth rate of 14.1%. By 2020, the industrial chain scale of The Internet of Things in China has exceeded 1.7 trillion yuan, and the overall industrial scale of the Internet of Things has maintained an annual growth rate of 20% during the 13th Five-Year Plan period.

The number of iot connections will surpass the number of non-iot connections for the first time in 2020, and iot applications may enter an explosion period. Looking back on the development trajectory of mobile Internet, firstly, the number of mobile connections has achieved massive growth, and the connections have generated massive data, and the application has exploded. The most critical is that in 2011, the shipments of smart phones exceeded the shipments of PCS for the first time. Since then, the rapid development of mobile Internet has led to the explosion of applications. In 2020, the number of Internet of Things (IoT) connections globally surpassed the number of non-iot connections for the first time, according to a tracking report from IoT Analytics. According to the law, the application of the Internet of things will most likely usher in the outbreak.

Giants have increased investment in the Internet of Things to further accelerate the commercialization of its application. At the HiLink Ecology Conference in March 2019, Huawei officially put forward the “1+8+N” strategy for the first time, and then successively launched a variety of terminal devices such as smart watches Watch GT 2, FreeBuds 3 wireless headphones, to gradually enrich its IoT ecology. On April 17, 2021, the first smart car with Hongmeng OS, Alpha S, was officially launched, which means Huawei will include smart cars in its ecological layout. Shortly after that, On June 2, Huawei officially launched HarmonyOS 2.0, a universal IoT operating system that connects PCS, tablets, cars, wearables, and more. As for Xiaomi, at the beginning of 2019, Xiaomi announced the launch of the “mobile phone x AIoT” twin-engine strategy, and officially elevated AIoT to the strategic height of placing equal emphasis on mobile phone business. In August 2020, Xiaomi officially announced that its core strategy for the next decade would be upgraded from “mobile phone +AIoT” to “mobile phone ×AIoT”. Xiaomi makes use of its diversified hardware to drive the marketing of all scenes, including home scenes, personal scenes and AIoT intelligent life scenes.

2 Iot downstream application combing

2.1 Intelligent connected vehicles: Technical standards landing + policy assistance, two major factors drive the accelerated development of Internet of Vehicles

The industrial chain of Internet of Vehicles mainly includes equipment manufacturers, TSP service providers, communication operators, etc. Chinese car networking industry upstream mainly includes RFID, sensor and positioning chip components/equipment manufacturers, such as the middle mainly includes terminal equipment manufacturers, auto makers and software developers, downstream is mainly composed of car remote service provider (TSP), the content service providers, telecommunications operators and system integration trader.

TSP service provider is the core of the whole Internet of Vehicles industry chain. A terminal device manufacturer provides device support for the TSP; a content service provider provides text, image, and multimedia information for the TSP; a mobile communication operator provides network support for the TSP; and a system integrator purchases required hardware for the TSP.

5G C-V2X is finally on the ground, enabling the Internet of cars. V2X (vehicle) wireless communication technology is the vehicle connected to everything else letter of information technology, including V on behalf of the vehicle, X represents any object to mutual information of the car, the interaction between information model including cars and car (V2V), between vehicle and road (V2I), car (V2P), and between people and between networks (V2N) and so on.

V2X consists of two types of communication, DSRC (Dedicated short range communication) and C-V2X (Cellular Vehicle Networking). DSRC was promoted as an official standard by IEEE in 2010, and was mainly promoted by the United States. C-v2x is the 3GPP standard and is being pushed by China. C-v2x includes LTEV2X and 5G-V2X, with lT-V2X standard evolving smoothly to 5G-V2X with good backward compatibility. C-v2x offers many advantages over DSRC, including support for longer communication distances, better non-line-of-sight performance, greater reliability, and higher capacity. In addition, while 802.11p-based DSRC requires a large number of new Rsus (road-side units), C-V2X is based on beehive networks and can therefore be reused with current 4G/5G networks at a lower additional deployment cost. In July 2020, 5G R16 standard will be frozen. 5G with its excellent performance can support the application of many networking scenarios such as V2V and V2I, and 5G-V2X technology will be gradually implemented to accelerate the development of zhaopin connected vehicles.

The United States is officially moving toward C-V2X. On November 8, 2020, the federal communications commission (FCC) officially decided to allocate the higher 30MHz (5.895-5.925GHz) of the 5.850-5.925GHz band to c-v2x. This means that DSRC, which had enjoyed the 75MHz spectrum exclusively for 20 years, has been completely abandoned and the United States has officially switched to c-v2x.

The policy end helps accelerate the development of the Internet of vehicles. In 2018, the Ministry of Industry and Information Technology issued the Action Plan for the Development of the Internet of Vehicles (Intelligent And Connected Vehicles) Industry, which proposed to achieve the goal of the development of the Internet of Vehicles industry in stages. The first stage is to achieve the penetration rate of Internet of Vehicles users above 30% by 2020, and the second stage is after 2020. Intelligent connected vehicles with high-level autonomous driving functions and 5G-V2X are gradually being applied on a large scale in the commercial industry, achieving a high degree of collaboration between “people, cars, roads and the cloud”. In February 2020, the National Development and Reform Commission, together with the Ministry of Industry and Information Technology and 11 other ministries and commissions, jointly issued the Strategy for Innovative Development of Smart Vehicles. It proposed that by 2025, lT-V2X and other wireless communication networks will be covered in areas, and 5G-V2X will be gradually applied to some supermarkets and expressways. Then, in April 2021, the Ministry of Housing and Urban-Rural Development and the Ministry of Industry and Information Technology jointly issued a notice, identifying six cities, including Beijing, Shanghai, Guangzhou, Wuhan, Changsha and Wuxi, as the first batch of pilot cities for the collaborative development of smart city infrastructure and smart connected vehicles.

The commercial application of “5G+ Internet of Vehicles” has been launched. On April 19, 2021, China Mobile and many other units jointly issued the “WHITE Paper on 5G Vehicle Networking Technology and Testing” to accelerate the implementation of 5G vehicle networking applications. 5G will greatly enrich the information services, safe travel and traffic efficiency of the Internet of Vehicles. For example, based on the three typical scenarios of eMBB, uRLLC and mMTC, it can respectively provide information services such as on-board AR/VR video call, AR navigation and car time-sharing lease. Driving safety services such as real-time driving detection, pedestrian collision prevention and vehicle theft prevention, and traffic efficiency services such as panoramic synthesis, formation driving and parking space sharing.

2.2 Smart Home: Connection standard Matter has been established to promote the realization of whole-house intelligence

After several years of development, China’s smart home industry chain is basically clear. Smart home takes the residence as the platform, and connects the audio and video, lighting, air conditioning, security and other equipment in the home through the Internet of things technology, providing functions and means such as control and monitoring. The smart home industry chain mainly provides hardware and related software. The hardware includes chips, sensors, PCB and other components, as well as intermediate components such as communication modules. The middle reaches are mainly composed of smart home solution suppliers and smart home single product suppliers; Downstream provides consumers with both online and offline sales and experience channels, as well as a variety of smart home platforms and apps.

There are many intelligent household terminal at present, different mode of connection and the connection standard, there is not smooth enough simple operation, the user experience of problems, such as the user chose intelligent household products, are often out of demand for convenience, and thus the basis of unified connection standard and high compatibility platform is one of the key elements of the rapid development of smart home industry chain.

Smart home is in the intelligent stage of interconnection. As early as 1984, Company of American united science and technology turns smart home concept into reality, opened the world to compete with each other to build smart home to send from now on prolopreface.

Generally, smart home can be divided into three stages: Smart Home 1.0 is a product-centered intelligent stage of single product. This stage mainly focuses on the upgrading of smart products of segmented categories, but each single product is scattered and the user experience is poor; 2.0 is a scene-centered interconnected intelligent stage. At present, the development of smart home is in this stage. Through the Internet of things technology, the interconnection between smart devices can be realized, and a full set of smart home solutions are gradually emerging; 3.0 will be a user-centered phase of comprehensive intelligence, where the system will provide users with customized intelligent solutions, and artificial intelligence will play a key role, which will have a revolutionary impact on the interaction of smart home.

On May 11, 2021, the Matter protocol, a unified smart home standard, was released. Matter is a new application layer protocol launched by the CSA Connection Standards Alliance (formerly Zigbee Alliance). It is a new IP-based connection standard that only relies on the IPv6 protocol in the transport layer to be compatible with different physical media and data link standards. Matter, formerly known as CHIP (Connected Home Over IP), was launched in December 2019 by Amazon, Apple, Google and the Zigbee Alliance. CHIP aims to create a new smart Home protocol based on an open source ecosystem. Matter aims to address the current fragmentation of smart home products.

It will be accompanied by plans for the first batch of Matter certified product types and smart home brands. The first Matter products, including lights and controllers, air conditioners and thermostats, locks, security, curtains, gateways, and more, are expected to hit the market by the end of this year, with CHIP protocol leaders like Amazon and Google, as well as Huawei in the lineup.

Hongmeng OS is expected to promote the development of smart home. HarmonyOS 2.0, which will be released in June 2021, uses the underlying technology in the software to integrate devices. Smart devices not only connect to each other, but also collaborate, allowing users to use multiple devices as easily as one, resulting in a better user experience. At the hongmeng press conference, Huawei focused on promoting its Internet of things ecology. At present, most of its partners are still focused on the smart home field, and Hongmeng’s participation is expected to promote its rapid development.

2.3 Smart wearable devices: Commercial consumer devices take the lead in development, while professional medical devices catch up

The industrial chain of intelligent wearable devices is divided into upper/middle/downstream. Intelligent wearable refers to the wearable of sensors, including all intelligent activities of people and things, and its application field involves the category of the whole Internet of Things. A branch of intelligent wearable devices mainly focuses on human intelligence is wearable devices, which are mainly intelligent devices in the form of “wearing” and “wearing” of the human body. The industrial chain of smart wearable devices is divided into upper/middle/downstream. The upstream is mainly software and hardware suppliers. The hardware includes chips, sensors, communication modules, batteries, display panels, etc., while the software mainly refers to the operating system. The midstream involves manufacturers of smart wearable devices, which can be mainly divided into commercial consumer devices such as smart watches/wristbands, smart glasses and professional medical devices. The downstream of the industry chain mainly includes online/offline sales channels and end users.

The penetration rate of smart wearable devices is expected to increase. IDC tracking report shows that in the first quarter of 2021, China’s wearable device market shipments were 27.29 million units, among which the smart wearable device shipments were 3.98 million units, the penetration rate was 14.6%, basically maintaining the average level of recent quarters. With the continuous promotion of 5G construction, the smart wearable devices, as one of the typical applications, are expected to achieve further growth in preparation for the continuous outbreak of downstream applications of the Internet of Things.

As a typical application of consumer IoT, commercial consumer smart wearable devices take the lead in development. At present, commercial consumer devices are the mainstream products of the market, accounting for about 80% of the market share (2020), mainly including wrist watches, wristbands, bracelets and other products supported by the wrist, shoes, socks or other products worn on the leg supported by the foot, and glasses, helmets, headbands and other products supported by the head. There are several reasons for this. Firstly, the hardware and software involved are relatively simple. Take the sensor, the most important hardware material in smart wearable devices, for example, the hardware sensor applied in smart wristband and smart headset is a simple motion/environment/biosensor. Second, the use of a variety of scenarios, smart wearable devices in healthcare, navigation, social networking, business and media and many other fields have a wide range of application scenarios; Third, it has a strong sense of experience and interaction. For example, smartwatches can obtain vital signs data by keeping close to the skin, and exercise monitoring and health management can be carried out conveniently and quickly. For example, VR glasses can realize motion capture and gesture tracking, and create a grand virtual scene on a limited site to achieve immersive experience.

The aging population is driving the development of the professional medical grade smart wearable device market. According to the seventh National Census, the population aged 60 and over accounted for 18.7 percent of the national population, and the population aged 65 and over accounted for 13.5 percent, 5.44 and 4.63 percentage points higher than the results of the sixth National Census, respectively. China is already in an aging society, and the medical demand of the elderly has increased sharply, bringing opportunities to the professional medical grade smart wearable device market. It is expected that the market size of China’s professional medical grade smart wearable device industry will reach 33.6 billion yuan by 2025, with a compound growth rate of 20.01% from 2021 to 2025.

2.4 Fully Connected PCS: Telecommuting demand is expected to drive the penetration rate of fully connected PCS

Fully connected PC, a computer that can be connected to the Internet “anytime, anywhere”. A fully connected PC builds a wireless communication module into a traditional PC, enabling “connectivity on startup” : users can activate mobile Internet services when they start up for the first time, achieving fast and seamless Internet connection, even when there is no WiFi. At present, wireless communication modules are mainly used in high-end business notebooks.

The epidemic has driven the demand for telecommuting, and the penetration rate of communication modules is expected to increase. In 2020, due to the impact of the epidemic, home working, online learning and consumer demand recovery, PC shipments grew substantially. IDC’s tracking report shows that for the whole of 2020, the global PC market shipments will grow at an annual rate of 13.1%. And the surge in PC demand has continued, with global shipments of traditional PCS reaching 83.6 million units in the second quarter of 2021, up 13.2% from a year earlier. At the same time, people’s demand for “anytime and anywhere” office gradually emerged, driving the development of fully interconnected PC.

Penetration of fully connected PCS is currently at a low level, with traffic charges a key factor holding back cellular mobile networks on laptops. In the future, with the adjustment of traffic rates, the improvement of 4G/5G network deployment, the penetration rate of wireless communication modules in PCS is expected to increase, and the shipment of fully connected PCS is expected to further increase.

3. Analysis of related enterprises

With the acceleration of communication network and other related infrastructure construction, the demand for sensors, wireless communication modules, Internet of things terminals and other hardware has gradually increased. As follows, we will introduce relevant enterprises in various industries in detail:

3.1 Remote communication

Wireless communication module leader, deep ploughing module field for ten years. Yuyuan Communications was founded in 2010. After ten years of development, it has become the largest cellular module supplier in the industry, accumulated rich technology and experience, and has competitive advantages in supply chain, RESEARCH and development, production, sales, management and many other aspects. The company is mainly engaged in the design, production, research and development and sales of wireless communication modules and their solutions in the field of Internet of Things. Its products cover 2G/3G/LTE/5G/ NB-iot cellular modules, WiFi&BT modules, GNSS positioning modules and various types of antennas supporting the modules. Widely used in vehicular transportation, smart energy, wireless payment, intelligent security, smart city, wireless gateway, smart industry, smart life, smart agriculture and many other fields.

Revenue and profit continued to grow. In 2020, the annual operating revenue of the company was 6.106 billion yuan, up 47.85% year on year; Returnee net profit was 189 million yuan, up 27.71% year on year. In the first quarter of 2021, the company’s operating revenue was 1.856 billion yuan, up 80.28% year on year; The net profit was 61 million yuan, up 78.43% year on year. The growth of the company’s operating income is mainly attributable to the increase of LTE, LTEA-A, LPWA and 5G module business volume. In 2020, the company’s wireless communication module shipments exceeded 100 million pieces.

We will maintain a high level of r&d investment to inject impetus into sustainable development. In 2020, the company’s R&D investment reached 707 million yuan, with a year-on-year growth of 95.41%. The increase mainly comes from the increase of compensation, depreciation and direct investment, among which employee compensation accounted for 73.27% of the R&D investment. In 2020, the company set up the R&D center in Foshan, so far the company has five r&d centers in Shanghai, Hefei, Foshan, Belgrade and Vancouver. The company has more than 2000 r & D personnel, for the company to continuously reserve and launch in line with the market demand of innovative products to provide backup force.

Explore segmentation scenarios to achieve multi-dimensional business profit. In 2020, the company launched a number of vehicles-level 5G module projects, and the volume of vehicles-front installation business increased significantly. It has provided services for more than 60 Tier1 suppliers and more than 30 world-renowned mainstream oems. In addition to the wireless communication module, the company also expanded the EVB test board, antenna, cloud platform and other services, among which the Internet of Things cloud platform is the company’s own research and development, in order to help customers to achieve end-to-end business scenarios in a convenient and efficient way.

Wide and 3.2

The world’s leading Internet of Things wireless communication solutions and wireless module provider. Fibocom was founded in 1999 and listed on the Shenzhen Stock Exchange in 2017, becoming the first listed company in China’s wireless communication module industry. The company independently develops and designs high-performance 5G/4G/LTE Cat 1/3G/2G/ NB-iot /LTE Cat M/ Android smart/car plane-level wireless communication modules, and provides end-to-end Internet wireless communication solutions for telecom operators, IoT equipment manufacturers and IoT system integrators. After more than 20 years of accumulation of M2M and iot technologies, the company has been able to provide iot communication solutions and customized solutions for almost all vertical industries.

The revenue grew steadily and the overseas business developed rapidly. In 2020, the company’s operating revenue was 2.744 billion yuan, up 43.26% year on year; The net profit was 284 million yuan, up 66.76% year on year. In 2020, the company’s overseas business grew rapidly, achieving the revenue of 1.87 billion yuan, a year-on-year increase of 61.37%, the revenue proportion increased from 60.52% in 2019 to 68.17%. In the first quarter of 2021, the company’s operating revenue was 860 million yuan, up 65.03% year on year; The net profit of returning home was 80 million yuan, up 54.35% year on year.

The company’s products involve M2M/MI two fields. M2M includes mobile payment, Internet of vehicles, smart grid, security monitoring, etc. MI includes tablet, notebook, e-book and other consumer electronic products. In 2014, the company received strategic investment from Intel, and thus entered the field of notebook computers. It has established good cooperative relations with leading enterprises such as Lenovo, HP, Dell and so on, with obvious first-mover advantage. In 2020, the pandemic has led to an outbreak of telecommuting demand and a substantial increase in laptop shipments. In the future, the pandemic will have a long-term impact on work and life, so the company’s MI business is expected to continue to grow. In July 2020, the company acquired the assets of Sierra Wireless’s global automotive front loading module business through a wholly-owned subsidiary of Ruling Wireless, and actively launched an international strategic layout of the automotive front loading market. On July 12, 2021, the Company issued the “Plan to Issue Shares and Pay cash to purchase Assets and Raise Supporting Funds”, planning to acquire 51% of Ruiling Wireless, realize the wholly-owned holding of Ruiling Wireless, and further expand the company’s market penetration in the field of Internet of Vehicles.

3.3 Move to communication

Deep ploughed for decades in the field of Internet of things terminal leader. Move for communication was established in 2009, the main business for the iot terminal equipment research and development and sales business, products are mainly applied in vehicle management, mobile track item management, personal communications as well as the four major fields of animal traceability management, provide for the customer, including transportation, smart mobile, wisdom ranch, intelligent connection, and many other areas of the solution.

After the outbreak eases, the company’s revenue & returnee net profit picks up. In 2020, the company achieved an operating income of 473 million yuan, down 24.91% year on year; Its net profit was 90.47 million yuan, down 44.25% year on year. In the first quarter of 2021, the operating revenue was 153 million yuan, up 58.09% year on year; Homeowner’s net profit reached 24.73 million yuan, up 28.65% year on year. The business of the company is concentrated in the overseas market, and the foreign revenue accounted for 88.06% in 2020. Among them, North America and South America, the main sales regions, were greatly impacted by the epidemic, which had a certain impact on the company’s performance. However, with the control of the epidemic at home and the gradual resumption of work and production in overseas countries, the company’s sales orders increased significantly and its business conditions improved.

Insist on both international and domestic markets. Internationally, the company has become a leader in the field of animal traceability products in the Australian market, and has developed markets including Europe, South America, North America and Africa. For animal traceability products, the company launched an e-commerce platform, which not only improved the entire business cycle, but also effectively reduced the impact of the epidemic on business development. In China, in March 2021, the company successfully won the bid for the Internet of Things label reader (fixed, handheld) procurement project of China Construction Bank Co., LTD., indicating that the company has gradually established its own brand awareness in the domestic market.

3.4 emerging

The company is the world’s leading smart city iot products and services provider. Gao Xinxing was founded in 1997 and listed on the Growth Enterprise Market in 2010. The company has been committed to researching and developing products and technologies related to the perception, connection and platform layer based on the Architecture of the Internet of Things. Starting from the application of the downstream Internet of Things industry, based on the general wireless communication technology and UHF RFID technology, the company has realized the vertical integration strategy layout of “terminal + application” of the Internet of Things. The company focuses on vertical application fields such as Internet of vehicles, intelligent transportation and public security informatization, and has many solutions such as cloud data, communication security, smart finance, smart new police, power Internet of Things, smart city, smart railway, smart new traffic management and video cloud.

The macro environment and market volatility led to a decline in revenue. In 2020, the company achieved an operating income of 2.326 billion yuan, down 13.63% year on year; Net profit to the parent – 1.103 billion yuan. In the first quarter of 2021, the company achieved an operating income of 390 million yuan and a net profit of -56.42 million yuan, basically unchanged from the same period last year. This is due to the impact of the trade war between China and the United States and the ongoing COVID-19 outbreak overseas, which impacted the company’s overseas business in 2020.

Master core technologies of Internet of Things and video artificial intelligence. The company has a full range of Internet of things wireless communication technology covering various communication network systems, products in the domestic leading position, and through Europe, the United States, Japan, Australia and other international certification. In addition, the company also has Internet of vehicles technology, UHF RFID technology, big data and artificial intelligence technology, AR technology and other technologies. By 2020, the company and its holding subsidiaries have more than 1,200 applied patents and more than 1,100 software Copyrights, with high market recognition and value.