Whether the security industry touches the ceiling and where are the new development opportunities? Leading enterprises have their own layout Fu Liquan, chairman and President of Zhejiang Dahua Technology Co.Ltd(002236) ( Zhejiang Dahua Technology Co.Ltd(002236) . SZ), said at the annual report of 2021 and the performance presentation of the first quarter of 2022, "it is very lucky that we have not seen the ceiling of development. The company has transformed into an intelligent Internet of things solution provider with video as the core, and completely opened the original ceiling of pure video through the two business strategies of city and enterprise."
The financial Associated Press reporter learned from the performance meeting that the company's future growth momentum will be based on overseas business, software business and innovation business, and set relevant goals: the net software revenue will exceed 3 billion in 2023, and the subsidiaries responsible for innovation business will strive for three revenue scales exceeding 1 billion this year.
In 2021, Dahua's software revenue was 1.6 billion. Fu Liquan mentioned that "in the process of product transformation to solution, the most important element is the application of artificial intelligence embedded in software. The growth of software business reflects the depth of solutions and the stickiness of customers." In addition, he believes that overseas attention to software and market demand are strong, and the gross profit margin of software is significantly higher than that of hardware.
As of April, Dahua's shareholding in Zero run technology was 8.89%. According to the prospectus of Zero run technology at the beginning of this year, it lost 4.845 billion in three years. Fu Liquan admitted that the company has indeed borne great pressure in the past few years and will have a great impact on its performance this year. If it goes public at zero, the impact on Dahua may become positive next year.
At the same time, the company hopes that the auto industry chain of Zero run can bring new application scenarios to the company's products. For example, Fu Liquan said, "we are considering opening up the system of Le orange and Zero run, and the suppliers of Zero run can also be partners of Huarui technology, a subsidiary of tuokuan in the industrial field."
Last year, Dahua carried out more integration of its subsidiaries and accelerated the development of innovative businesses, including machine vision and Siasun Robot&Automation Co.Ltd(300024) , smart home, smart fire fighting, etc. Fu Liquan said, "the average growth rate of subsidiaries last year was 61.7%. We hope to exceed this growth rate this year and strive for three companies to break through the revenue scale of 1 billion." The company's innovative business revenue in 2021 was 2.848 billion yuan, accounting for 61.7%.
In the first quarter of this year, Dahua's revenue increased by 14.34% and its net profit increased by 2.3% year-on-year. Fu Liquan said, "all the investment last year has been fully released and reflected in the first quarter of this year. Overseas businesses promote the construction of distribution pipeline 3.0, and China's sales channels sink to cities. This year, we will continue to increase the investment in channels."
In view of the decline of gross profit margin in 2021, Xu qiaofen, chief financial officer of the company, explained, "excluding the thermal imaging factor in 2020 and the freight factor in the fourth quarter of 2021, under the same statistical caliber, the gross profit margin in 2020 is 39.55% and that in 2021 is 40.12%, but it has increased."
Zhejiang Dahua Technology Co.Ltd(002236) 's 2021 annual report shows that the company's revenue is about 32.835 billion yuan, an increase of 24.07% year-on-year; The net profit was about 3.378 billion yuan, a year-on-year decrease of 13.44%.
