Reply of Geovis Technology Co.Ltd(688568) and China Securities Co.Ltd(601066) on the second round of examination and inquiry letter of Geovis Technology Co.Ltd(688568) applying for issuing A-Shares to specific objects in 2021 Shanghai Stock Exchange on March 8-1-1, 2002: the second round of examination and inquiry letter of Geovis Technology Co.Ltd(688568) applying for issuing shares to specific objects issued by your exchange on March 11, 2022 (szkss (refinancing) [2022] No. 46) (hereinafter referred to as “audit inquiry letter”) has been received Geovis Technology Co.Ltd(688568) (hereinafter referred to as ” Geovis Technology Co.Ltd(688568) “, “issuer” or “company”) and China Securities Co.Ltd(601066) (hereinafter referred to as ” China Securities Co.Ltd(601066) securities”, “sponsor”, “sponsor”), Beijing JUNHE law firm (hereinafter referred to as “issuer’s lawyer”), Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “accountant”) and other relevant parties have implemented the issues listed in the audit inquiry letter item by item check. The written replies to the questions raised in this audit inquiry letter are as follows, please review. The abbreviations or names used in the following replies. Unless otherwise specified, the abbreviations used in the reply to the audit inquiry letter have the same meanings as those in the prospectus; In the following reply, if the sum of the values of each sub item is inconsistent with the mantissa of the total, it is caused by rounding. The font format in the reply to the audit inquiry letter is described as follows: the questions listed in the inquiry letter are in bold (BOLD) and the reply to the questions is in Song typeface (not bold), the reply to the audit inquiry letter, the amendment of the prospectus, the supplement of 8-1-2 catalogue in regular script (BOLD) and question 1 about income forecast 3 question 2 about land and real estate Question 3 on financial investment 38 question 4 about financing scale 488-1-3 question 1 about revenue forecast according to the reply to the first round of inquiry: (1) cloud service subscription has a huge potential user base in tourism, education, media and other application scenarios. It is estimated that the number of paying licensed users in the third year will be 2000, and it is expected to attract about 6000 paying users in the seventh year; (2) The issuer calculates the growth rate of edge authorized users based on the compound growth rate of 35% of the number of customers of offline business from 2018 to 2020. According to the early contact with the target customer group, it is estimated that the number of edge users in the first year will be 25; (3) The issuer uses the number of Internet users and the penetration rate of head enterprise groups in their respective advantageous fields as the basis for calculating the number of end-user value-added services, and takes 0.42% as the basis for calculating the conversion rate of paying users; (4) The gross profit margin of the raised investment project in the first three years is 83.17%, 78.80% and 76.23% respectively. After the system is put into operation, the system operation cost is low, so the gross profit margin of the raised investment project is high. The issuer is requested to explain: (1) the situation of similar businesses of comparable companies in the contract industry, and explain the calculation basis for the number of paid licensed users of cloud service subscription business in the third year, and the calculation basis and rationality of increasing about 1000 users every year; (2) Combined with the specific situation of offline business, explain the comparability of offline business and edge authorization business, and the rationality of using the compound growth rate of offline business customers as the calculation basis of edge authorization user growth rate; (3) The specific contact between the issuer and the target customer group, whether corresponding contracts or orders are signed, and the basis for the estimated number of edge users to reach 25 in the first year; (4) The reason and rationality for the issuer to use the number of Internet users and the penetration rate of head enterprises to calculate the number of user value-added services at the issuer’s end, whether the calculation basis of 0.42% payment conversion rate is significantly different from that of comparable companies in the same industry; (5) The comparison between the issuer’s online operation projects and comparable companies in the same industry further explains the reasons for the high gross profit margin of this raised investment project. The reporting accountant is requested to verify the above matters and express clear opinions. Reply: I. the conclusion of similar businesses of comparable companies in the contract industry explains the calculation basis for the number of 2000 paid licensed users in the third year of cloud service subscription business, and the calculation basis and rationality of increasing about 1000 users every year. Cloud service subscription is mainly for small and medium-sized organizations and third-party developers. The company provides digital earth to users in the form of service subscription. After users purchase the paid licensed account, Online call can directly access data and use business functions, or build third-party business applications based on service interfaces. (I) similar businesses of comparable companies in the same industry 8-1-4 the company expects to attract about 2000 paid license users and initial income in the third year of the implementation of the raised investment project, and 6000 paid license users in the seventh year of the implementation of the raised investment project. The company is a pioneer in the development of cloud service subscription market in the field of geographic information services, and comparable companies in the same industry have also made preliminary exploration in this field: the exploration in the field of cloud services disclosed by comparable companies and comparable companies, and the development of cloud service users disclosed by comparable companies Beijing Supermap Software Co.Ltd(300036) gis cloud service business segment is mainly composed of hypergraph data of a wholly-owned subsidiary established in Chengdu. As a business investment platform for GIS big data and cloud services, hypermap data continues to explore the public cloud application market, provide online GIS application services for industry users, provide online map data and API services for enterprise customers and partners, as well as popular online map drawing and geographic analysis services. Maphui, the holding company, provides public mapping, enterprise service platform, open platform and other businesses. Piesat Information Technology Co.Ltd(688066) company has gradually changed from project-based marketing mode to “platform + service” combination mode. The “cloud service subscription system” has been highly recognized by the majority of users. The mode of using remote sensing images and integrated platform achievements to provide services to users has lower cost, And it is easy to form strong stickiness with users (the specific number of paid licensed users is not disclosed) Navinfo Co.Ltd(002405) company has sufficient personnel reserves, technical reserves and experience accumulation in the fields of maps, chips, cloud services, etc., can complete the development of intangible assets, and has the ability to use or sell the intangible assets. Cloud services are widely favored by car manufacturers.
Cloud computing is entering a period of rapid development in China. In the next few years, with the continuous improvement of users’ acceptance of cloud services, the cloud service industry will usher in new opportunities for development. (the specific number of paid licensed users is not disclosed) (II) the calculation basis for the number of paid licensed users in the third year of cloud service subscription business, and the calculation basis and rationality of increasing about 1000 users every year. For cloud service subscription, the smooth implementation of the company’s fund-raising and investment project is expected to increase the application of the company’s digital earth products in civil scenes such as tourism, education and media. The specific analysis is as follows: 1. In the field of media, According to the characteristics of media programs such as history, geography, military and current politics, the cloud service subscription mode created by this fund-raising project will provide customers with online infrastructure of spatio-temporal data and digital tools such as animation production, which will greatly enrich the expression forms and program effects of relevant programs. 2. In the field of tourism, in view of the new social trend of “cloud tourism”, the cloud service subscription products of this fund-raising project will realize the efficient docking of various tourism resources and realize the further integration of virtual and reality based on digital earth. “Cloud tourism” has a long industrial chain. Take tourist attractions as an example. According to the 2020 statistical bulletin on culture and tourism development of the Ministry of culture and tourism of the people’s Republic of China, at the end of 2020, there were 133328-1-5a scenic spots in China, including 302 5A scenic spots and 4030 4A scenic spots. There is great potential to increase the coverage of online digital earth on tourism resources and increase the number of potential users in the tourism field. 3. In the field of education, digital earth can be widely used in general education such as geography, history, ideology and politics, interest and popular science, and education in professional fields such as surveying and mapping, military, tourism, agriculture and forestry. According to the main results of national education statistics in 2020 issued by the development planning department of the Ministry of education, there were more than 500000 schools at all levels and of all types in 2020, forming a huge potential customer group. In the process of calculating the future user growth of cloud service subscription, for the sake of prudence, the company only calculates the educational visualization and informatization in the above key target areas of cloud service subscription, and takes this as the main prediction basis for the number of customers: (1) the era of educational informatization 2.0 has entered the customer-oriented software and service market, and the market is in the race track preemption period Informatization is a typical industry application field newly expanded by the company’s online digital earth. In 2019, the overall market scale of China’s education informatization exceeded 430 billion yuan, which will continue to grow and the growth rate will tend to be stable in the future. The era of educational informatization 2.0 has entered the customer-oriented software and service market, and the market is in the race track preemption period. The visual and information comparable companies in the field of education are shown in the following table: company name, main business, Beijing lechihang Software Co., Ltd. (acquired by Iflytek Co.Ltd(002230) (Stock Code: Iflytek Co.Ltd(002230) . SZ) in 2016) provides comprehensive information solutions for primary and secondary schools and education management departments at all levels. Its main products include digital campus solutions, lechiyun education solutions, regional education cloud solutions From the establishment of Beijing lechihang Software Co., Ltd. (hereinafter referred to as “lechihang”) at the end of 2011 to the end of June 2016, the number of users covered by the four products of lechihang reached nearly 5000, with an average annual increase of about 1000 users Qtone Education Group(Guangdong) Co.Ltd(300359) ( Qtone Education Group(Guangdong) Co.Ltd(300359) . SZ) covering multiple scenes inside and outside the school and covering b-end and C-end subjects such as schools, teachers, parents and students. In 2015, Considering the prospect of SaaS field and the changes of online education industry, Qtone Education Group(Guangdong) Co.Ltd(300359) based on the needs of users, upgraded the original information construction project to e-saas (education softwaresaservice) business group. In August 2015, Qtone Education Group(Guangdong) Co.Ltd(300359) officially released full course cloud 1.0. By the end of 2015, Qtone Education Group(Guangdong) Co.Ltd(300359) had provided e-saas services to a total of 2832 schools in China, The user scale is growing rapidly Newcapec Electronics Co.Ltd(300248) ( Newcapec Electronics Co.Ltd(300248) . SZ) company is an industry informatization enterprise based on school informatization and applied and covered in many industries. In 2020, the company comprehensively iterated the all-in-one card for new and old customers and upgraded it to the code card face all-in-one school communication solution. The number of card free campus customers of the company was 9; There are more than 500 one-stop customers and 117 new customers in 2020; Code card face one school connection solution customer 8-1-6 Company Name: nearly 500 main businesses, 90 new in 2020, with a market share of nearly 20%. The “K12 smart campus cloud platform” developed and launched by the company has now launched 116 customers. By the end of 2020, the mobile Internet product “perfect campus” serving college students, By the end of the reporting period, Vtron Group Co.Ltd(002308) ( Vtron Group Co.Ltd(002308) . SZ) has accumulated access to more than 1400 colleges and universities in China. At present, the company carries out two main businesses: ultra-high resolution digital splicing wall system business (VW business) and kindergarten operation management service business. By the end of 2019, the number of kindergarten customers directly / indirectly served by the education brand of the company’s children’s growth platform has reached thousands, and the number of children’s community schools, children’s early education / early care and other customers served by the company’s diversified children’s growth scenario business has also reached nearly thousands. (2) the company’s research on intended customers. Before the launch of this fund-raising project, the demand for digital earth cloud service subscription business, On the one hand, the company conducts research on the operation of Companies in the active geographic information industry in the market, on the other hand, with the help of the existing sales network, the company makes a certain degree of understanding of the needs of customers in different fields. The specific conditions are as follows: 1) Research on the operation of comparable companies in the same industry Piesat Information Technology Co.Ltd(688066) , Navinfo Co.Ltd(002405) and listed companies in the local information industry represented by Beijing Supermap Software Co.Ltd(300036) , Although beneficial attempts have been made in the field of digital earth cloud services, it is still in its early stage, and the financial data and operation mode of its related businesses have not been disclosed in detail, Only according to Beijing Supermap Software Co.Ltd(300036) 2021 annual report: ” Beijing Supermap Software Co.Ltd(300036) gis cloud service business segment is mainly dominated by maphui, the holding company of the company. Maphui provides mass mapping, enterprise platform and other businesses. At present, the enterprise platform has more than 450000 customers and serves more than 100 subdivided industries and fields such as logistics express delivery, home appliances, finance and insurance, retail chain, smart property, real estate, advertising media, public security and fire protection through the mode of enterprise one map.” In addition, through the company’s preliminary research, some unlisted small and medium-sized enterprises in China’s geographic information industry have also launched some excellent products due to the rapid transformation speed
