Comments on the computer industry: Westone Information Industry Inc(002268) benchmark orders have been implemented, and the data security business model has been established

Event overview: Recently, the data security policy and industrial progress have been flying together. In the personal information protection law implemented in 2021, it is pointed out that “protect the rights and interests of personal information, standardize personal information processing activities, and promote the rational use of personal information”. The policy continues to be implemented, clarifying the importance of data circulation security. On January 12, Westone Information Industry Inc(002268) disclosed the progress announcement of strategic cooperation with Zhejiang Century Huatong Group Co.Ltd(002602) . The company signed the entrusted service contract for personal information security compliance service project with Zhejiang Century Huatong Group Co.Ltd(002602) sun Shengqu company, which will provide personal information security compliance services for Shengqu company and ensure that Shengqu company can establish and maintain a personal information Security compliance system with a service period of three years, The total contract amount is 120 million yuan (including tax).

The business model of data security service fee has been established. This contract defines the business model for providing personal information security and compliance services. The service period is three years, the total contract amount is 120 million yuan (including tax), and the average annual service fee is 40 million yuan. It is a benchmark order for establishing the data security business model.

The protocol planning shows the importance of data security, and the data security in the field of games and IDC is implemented. In this service contract, the company provides Shengqu with services and construction in the field of game data and IDC Supercomputing Center. Game data terminal: 1) escort the personal information protection in the game business scenario and the implementation of minor game supervision policies; 2) Create a more comprehensive and reliable security solution for the game industry, ensure the security of the game master station and payment, and improve the ability of game data privacy and security protection; 3) Jointly carry out overall research, technical pre research, security application development, and provision of comprehensive solutions for cloud game security in the direction of cloud game and artificial intelligence security. IDC Supercomputing Center: 1) based on the large supercomputing centers under Zhejiang Century Huatong Group Co.Ltd(002602) , jointly study the security operation capability based on cloud and big data architecture, and provide customers with sustainable security risk situation awareness and adaptive protection capability; 2) Jointly build cloud security solutions to provide passwords and security protection capabilities for important information systems such as government and state-owned enterprises on the cloud; 3) Cooperate to establish the data security framework of Supercomputing Center, help enterprises realize the ability of discovery, classification, monitoring, storage, encryption or destruction, and provide third-party secure storage services for important data of government and enterprises.

Game scenes are diversified, and data security is the general trend. In recent years, the game field has increasingly become one of the “hardest hit areas” of personal information leakage. The personal information associated with the game is easy to be obtained by criminals, and players may become the “prey” for the accurate promotion of game advertising. At the same time, game manufacturers will also become the locking target of blackmail software, and there are huge risks hidden in data problems. China has continuously introduced relevant policies in recent years. Relevant policies such as the network security law, the personal information protection law (Draft) and the personal information security specification of information security technology all stipulate the security management obligations of game platforms. The counterparty of this order is Shengqu information technology (Shanghai) Co., Ltd. many of its games involve end games, mobile games, page games and other forms. Personal information is staggered and mixed, and the risk of disclosure is high. Compliance data security is imminent.

Investment advice: Westone Information Industry Inc(002268) take privacy computing as the core technology to provide a comprehensive and reliable security solution

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