Securities code: Beijing Egova Co.Ltd(300075) securities abbreviation: Beijing Egova Co.Ltd(300075) Beijing Egova Co.Ltd(300075)
Record of investor relations activities
No.: 2022004
□ specific object research □ analyst meeting
□ media interview □ performance briefing
Investor relations activities □ press conference □ roadshow activities
Category □ site visit
√ other teleconferences
Minsheng securities, Kunlun Health Insurance, BOCOM fund, Shanghai Shangjin investment, name and securities of deppon participating units, Jianshun investment, Haibao life insurance, ChuangJin Hexin fund, Zheshang Securities Co.Ltd(601878) , name of national personnel, haisecurities asset management, Quanzhou Qinmai, China Post life insurance, harmonious remittance asset management, Orient Securities Company Limited(600958) self operated, Guoshou shares and CICC securities.
Time: April 8, 2022
Location teleconference survey
Receptionist of listed company
Mr. Wang Dong, President, and Mr. Qiu Lumin, Secretary of the board of directors
Member name
Interpretation of performance forecast for the first quarter of 2022:
The company has achieved good results in the first quarter of 2022 despite its growth in the first quarter of several consecutive years. It is expected that the net profit will be about 35-40 million yuan and the net profit growth rate will be about 30% – 50%. In previous years, the company’s bonus was generally paid in the third quarter. Now, based on the company’s continuous optimization of the evaluation system, the positive work of the company’s core team, the upsurge of investor relations activities, and the company’s confidence in the introduction of the main contents of the future market under good development opportunities, the progress of performance evaluation has been accelerated, and the bonus originally paid in the third quarter has been changed to the first quarter, The impact on the net profit is about 8 million yuan. Excluding this impact, the growth rate in the first quarter should be more than 60%, which also provides a good foundation for the performance growth in the second and third quarters. The company’s management has sufficient confidence in achieving the company’s operation and management objectives and further achieving high-quality development in 2022.
Interpretation of the company’s future development:
The 14th five year development plan has created a rare development opportunity for the company. In the 20th anniversary of the establishment of the company and entering the third decade stage, the company has formed a very clear development goal and plan. In the next three to five years, the company is confident to make the company enter a high-quality and rapid development stage by seizing the development opportunity, strengthening internal management and optimizing business structure. The company will continue to increase the gross profit margin of the project contract through various management measures. At present, it has achieved initial results in 2021 and will be more significant in the next few years.
At the same time, the company has carried out ecological cooperation with provincial and municipal governments, emphasizing common prosperity and common growth with cities. This year, the single scale of large projects has increased from about 10 million and 20 million to 30 million, 50 million or even 100 million. More orders will be placed in the next few quarters. Through the establishment of a joint venture with the government, give play to the company’s ability to participate in the formulation of industrial standards, product interaction and project operation for many years, and combined with the social and economic characteristics, solve the problem of excessive pressure on the early investment of local governments in digital construction in the short term, so that the company can undertake the local urban planning, construction and operation, and improve the leading power and bargaining power of the company, Thus enhancing the company’s ability to obtain large project orders.
Q & a session
1. The company has signed a strategic cooperation agreement with Weidu District, Xuchang city. What is the corresponding progress of cooperation?
A: Beijing Egova Co.Ltd(300075) and Weidu District of Xuchang City signed a strategic cooperation agreement at the beginning of the year. The teams of both sides are accelerating the implementation of relevant work and are expected to achieve results this year. At the same time, the company is confident to build Xuchang digital economy industrial park project into a digital governance card of the government. Through the project exploration of Xuchang City, the company has formed a new model with government customers all over the country to bring demonstration effect, and then promoted more than 1000 city and county projects from a single project to a long-term and sustainable project, creating a new model of sustainable development of digital economy belonging to Beijing Egova Co.Ltd(300075) , Then it will bring considerable income and profits to the company and lay a solid foundation for the future of the company.
2. In March this year, the Ministry of housing and urban rural development issued a notice requiring: “by the end of 2023, all provinces and autonomous regions will build provincial-level urban transport management service platforms, and cities above the prefecture level will basically build urban transport management service platforms”. Does the company benefit from this notice?
A: the urban operation management service platform is an important means to realize the unified management of one network. As the company’s core business, it has brought a positive impact on the company’s performance. With the continuous improvement of the government’s requirements for digital governance management, the company will continue to give full play to its technical advantages, business advantages and core competitiveness of products in the unified management of one network. The company has the determination and confidence to seize favorable market opportunities, strive to become a leading enterprise in the unified management of one network and achieve a high market share.
3. Does the company have a layout in terms of emergency management and urban safety?
A: Zhengtong mainly cooperates with some partners to make layout in this area. At the same time, Zhengtong also has its own advantageous products, such as urban underground pipelines, especially drainage and gas pipelines. Since the beginning of this year, we have worked with several major urban gas pipeline operators in China, such as China gas and China Resources gas, to combine technology and business, and strive to achieve new breakthroughs in urban lifeline management in combination with customer needs. 4. The increase trend of gross profit margin is very obvious. Will it continue in the future?
A: the core of the company’s sustainable development lies in two aspects: the expansion of the company’s scale and the improvement of its profitability. Over the past few years, the company has been paying great attention to and emphasizing the improvement of the gross profit margin of its core business. At present, the company has achieved the gradual improvement of the gross profit margin of each business by improving the product ability of software, standardizing product solutions, providing standardized services and building a localized service system. The growth rate of the company’s net profit margin increased significantly in 2021. In the future, while striving to increase revenue, the company will continue to adhere to the goal, launch more standardized software products and apply them to practical projects. Through the continuous introduction of new products to the market, the company will further improve the level of gross profit margin and realize the double growth of scale expansion and gross profit margin.
5. Affected by the epidemic this year, the financial funds of local governments may be relatively tight. Will it have a certain impact on the company?
A: in recent years, the government budget has been relatively tight. Internally, the company’s cash reserves enable the company to undertake various projects, and the company has found a way to adapt to the economic situation in the difficult mode, such as installment payment, establishing joint ventures, attracting social capital to participate in the construction of relevant projects and so on. Secondly, the digital transformation of the government is the general trend. The growth trend of the government’s financial capital investment in this area in the future is uncertain. In addition, in terms of the industry, the cost of information construction is very small for the government compared with the cost of infrastructure, but the effect is great. Therefore, considering internal and external factors, the company believes that this stage is a rare market development opportunity.
6. What are the new developments in the company’s driverless vehicles and metauniverse related technologies?
A: in January 2022, the company released the new products of Qiji driverless grid car. At present, the company’s technical and business teams are working intensively to promote the new products. More technical and application tests are being carried out for relevant products in Guangdong, Shandong, Anhui and other regions. We are also conducting procurement exchanges and communication with some interested customers. We will issue relevant announcements in time according to the landing of the products.
The company has been continuously strengthening the R & D and application of digital twin as one of the important supports of meta universe technology. In order to promote the construction of urban information model (CIM) platform based on digital twin technology, the company signed a strategic cooperation agreement with 4D vision in April 2022. Mr. Liu Xianlin, academician of the Chinese Academy of engineering, honorary president of the Chinese Academy of Surveying and mapping Sciences, chairman and chief scientist of 4D vision, attended in person. Founded in 1989, 4D vision is a national high-tech enterprise and an excellent scientific and technological innovation unit controlled by the China Academy of Surveying and mapping. The signing of the strategic cooperation agreement with 4D vision aims to combine the solid data acquisition and governance ability of 4D vision in the integration of space, space and earth, the corresponding data application and display ability with Beijing Egova Co.Ltd(300075) deep technology research and development ability and industry application ability, so as to better realize the modernization of urban management from two-dimensional to three-dimensional, from appearance to interior, from coarse to fine, and effectively help the city realize the modernization of governance ability and governance system.
In August 2021, Beijing Egova Co.Ltd(300075) launched the “crystal” digital twin platform. In combination with the relevant requirements of the construction of urban operation management service platform, in the comprehensive management of urban lifeline, gas supervision, intelligent drainage, intelligent water supply, road and bridge monitoring, outdoor
CIM based scenario application practices are available in various fields such as advertising management, site supervision, city appearance and environmental sanitation, municipal supervision, landscaping and comprehensive law enforcement, which can promote the digital upgrading of application scenarios and improve the scientific efficiency of urban governance. By the end of February this year, the contract amount of relevant projects had reached 180 million yuan.
7. At present, the construction of urban management, sanitation and other digital cities in many cities is under the jurisdiction of the big data Bureau and other centralized units in the city. Is arihuawei better than the company, and how will the company deal with it?
A: the company’s cooperation with Huawei, Alibaba and other companies is far more than competition. The focus of each company is different. Zhengtong has deep industry application accumulation, perfect production lines, its own system methods, and even participants in the preparation of industry standards. Therefore, it can provide deeper services. As a core partner, based on its own advantages and opportunities, the company is enough to jointly promote the expansion of projects including urban management, environmental sanitation and so on. After years of cooperation, the company believes that the current industry ecology can tolerate the common cooperation and development of companies at different levels.
Annex list (if any) none
Date: April 9, 2022
