Main platforms will be fully mass produced Qi An Xin Technology Group Inc(688561) implement the “three-step” platform strategy

At the Qi An Xin Technology Group Inc(688561) R & D platform strategy press conference on April 19, Qi Xiangdong, chairman of Qi An Xin Technology Group Inc(688561) R & D platform, said that the company’s revenue will continue to grow in 2022, the gross profit margin will remain above 60%, and the mass production of the platform will drive the R & D expenses to drop significantly and significantly shorten the R & D cycle of new products. After using the platform, the products will be more stable and the safety performance will be significantly improved.

He disclosed that the mass production of the R & D platform can effectively solve the five magic spells faced by the current digital industry Qi An Xin Technology Group Inc(688561) has been the first to taste the sweetness, and the growth rate of production lines related to R & D platforms is more than three times higher than the industry average.

“Over the past 20 years, thanks to China’s 1 billion internet users, the consumer side has promoted the vigorous development of the Internet industry. However, with the peaking of demographic dividend, weak innovation and vicious competition, the supervision has been strengthened step by step, and the growth rate has slowed down significantly.” With the rise of the digital era of government, it is no longer applicable to the east side of consumption and the supply side of the Internet. The increasingly fierce cyberspace war closely binds network security and national security, driving industrial growth.

More and more enterprises have become members of the digital industry. Qi Xiangdong believes that when these enterprises are developing and learning from the successful model of the early Internet, they have encountered the “enclosure curse” of burning money and subsidizing circle users, the “human efficiency ratio curse” of personnel growth exceeding revenue growth, and the “imported curse” of foreign acclimatization There are five major problems: the “standardization curse” that standardized products cannot meet personalized needs, and the “upgrading curse” that is difficult to upgrade and iterate and lack of continuous innovation.

Starting from 2017, Qi An Xin Technology Group Inc(688561) adheres to the route of “strong R & D” and begins to gradually implement the “platform” strategy, hoping to find solutions to the above problems. In 2019, Qi An Xin Technology Group Inc(688561) basically completed the four R & D platforms of “Kunpeng”, “Noah”, “Leier” and “Zion”. In March 2021, Qi An Xin Technology Group Inc(688561) announced the upgrading of LEGO strategy, launched four new platforms of “Chuantuo”, “Dayu”, “Xuanji” and “Qianxing”, and formed the R & D matrix of eight platforms. On April 19, 2022, at the R & D platform strategy press conference, Qi Xiangdong announced that the main platforms would be fully mass produced and successfully solved the five magic spells.

The first is to improve performance based on the platform, reduce costs and get customers at low cost. Secondly, it can avoid repeated development and save a lot of manpower. Thirdly, close to China’s national conditions and meet the needs of Chinese customers. At the same time, standardized production is used to realize personalized needs. In addition, the powerful elastic architecture makes the upgrade stable and simple.

For example, through the mass production application of Kunpeng platform, the cost can be reduced by half under the same specification and performance, so as to double the cost performance of border security products. The revenue of the border security production line in 2021 increased by 47.4% year-on-year, three times the industry average growth rate of 15.8% (data of China Academy of information technology). After the mass production of Kunpeng platform in 2021, the per capita income of relevant production lines exceeded 4.1 million yuan, a year-on-year increase of about 40%, reaching 2-3 times that of the leading manufacturers in the network security industry. At the same time, the profit margin increased significantly, with a per capita gross profit of 2.66 million yuan, a year-on-year increase of 43.5%.

For another example, q-sase launched by Qi An Xin Technology Group Inc(688561) has been based on Dayu R & D platform since 2022, which can realize the collection and enrichment of alarm logs of various security components (such as SWG, NGFW, WAF, flow probe, etc.) in the security resource pool, as well as the merging and analysis of rules. At the same time, it has realized the integration with platforms such as situation awareness and security operation, creating the Chinese model of SASE. Relying on Dayu platform, Qi An Xin Technology Group Inc(688561) the release time of the first version in many fields such as regulatory situational awareness, SASE, TSOC and industrial safety was shortened from 9 months to 3 months for similar products, and the R & D efficiency was improved by 300%. The development cycle of the Winter Olympic Research and judgment analysis system is shortened from the traditional 100 days to 10 days under the extreme demand of the Winter Olympic Organizing Committee.

For example, the unified mass production based on Chuantuo platform has reduced the cost by 2 / 3 on the premise of ensuring low bugs and high quality, breaking the “Impossible Triangle” of “good, fast and provincial” in product research and development.

“Platformization is Qi An Xin Technology Group Inc(688561) long-term strategy and the guarantee to help Qi An Xin Technology Group Inc(688561) realize the vision of the world’s No. 1 network security company”. Qi Xiangdong described the platform strategic blueprint of “three steps” at the press conference.

The first step is the R & D platform. Through the successful mass production of the R & D platform, promote the R & D personnel to improve the human efficiency ratio by about 40%, and lay a solid foundation for the company’s profitability in 2022. The second step is the product platform, truly realize the coordination of safety products and unified data management, comprehensively improve the product competitiveness, maintain the high growth rate of the company’s revenue and continue to lead the industry. The third step is to make the capability platform, adapt to the integration trend of the safety industry, lead the industry towards centralization, change the current situation of “small-scale, scattered and homogeneous”, and promote Qi An Xin Technology Group Inc(688561) to move forward to the first in the world.

“The revenue from mass production of the platform will not only be Qi An Xin Technology Group Inc(688561) , but also the whole network security industry. We will fully open the R & D platform to ecological partners and help the whole industry achieve significant improvements in revenue scale, profit, human efficiency ratio and R & D efficiency. At this year’s BCS conference, we will announce detailed ecological partner certification standards and open the platform access application channel.” Qi Xiangdong said.

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