"dormant" in the first half of the year and "dormant" in the second half.
Compared with the overall situation of the semi-annual report, with the epidemic under control and the market picking up, the corporate performance generally grew rapidly in the third and fourth quarters, and the annual performance basically rebounded to positive growth. Some companies' annual reports even far exceeded expectations, and both total revenue and net profit doubled, such as Gaode Infrared and Dashi Intelligent. But overall, in 2020, the growth rate of total revenue and net profit of most enterprises decreased compared with previous years. In addition to the epidemic situation, the enterprise's own operating factors are the main reasons.
As of March 12, enterprises that have not published the 2020 annual performance report are not included.
The composition of annual performance largely depends on the project cycle of the industry field that the enterprise focuses on. Generally speaking, the cycle of government projects and large and medium-sized public projects is relatively long, such as discerning projects, new infrastructure projects or fire fighting, water conservancy and emergency projects, which need a cycle of 1-3/5 years. The cycle of small and medium-sized projects is slightly shorter, but it also takes 3-5 months. Generally speaking, the income of an enterprise is calculated by the amount of money received after project acceptance. Therefore, a long project cycle has a significant impact on the income statistics of enterprises in that year. But it is precisely because of this that the sustained and stable growth rate is an important reference standard to test the true strength of an enterprise. In this regard, Hikvision and Dahua joint-stock industry leaders still live up to expectations, strive for progress steadily, and continue to write the style of a big factory.
As leading enterprises in the industry, with years of profound accumulation, Haikang and Dahua have a strong resource base, including software and hardware technology research and development strength, rich channel network and mature market expansion experience. These resources also constantly promote enterprises to become stronger. Coupled with their keen insight into the market and their active attempts and layout in the field of innovation, the two giants not only maintained their dominant position in the security market, but also expanded more vertical application fields with their profound video AI technology, big data services and AIoT platform capabilities, completing the role change from a single intelligent security vendor to a comprehensive intelligent solution provider, further expanding the business market and enhancing the profitability of enterprises.
According to the business reports of Q 1, Q2, Q3 and Q4 in 2020 released by many enterprises, the past 2020 was a difficult year, especially in the first half of the year, the epidemic situation interrupted or delayed the progress of various projects. Fortunately, in the second half of the year, the market has gradually recovered to the pre-epidemic level. Under the opportunity of new infrastructure and digital upgrading of the industry, generate has shown new vitality. Many enterprises have also made great contributions to the difficult 2020 by flexibly adjusting their business plans and combining the resource advantages accumulated by enterprises for many years, such as Jieshun Technology and Dashi Intelligence.
With its intensive cultivation in the field of smart parking, Jieshun Technology has grown into a benchmark enterprise in the smart parking industry. 20 19 is the year when the new business income represented by smart parking, platform solutions and urban parking of jieshun technology began to be realized on a large scale. The emergence of the epidemic in 2020 slightly delayed the rapid progress of the company's innovative business. However, after the epidemic gradually eased, the huge number of people returning to work and travel consumption also accelerated the demand for parking business. The epidemic situation has also strengthened the social control of pedestrians and garage entrances and exits, and promoted the development of unmanned and intelligent management methods. All these have provided a good market environment for Jieshun Technology's smart parking business and pedestrian solution business, and promoted performance growth.
Dashi Intelligent also ushered in a bumper harvest in 2020, with total revenue increasing by 46.62% and net profit increasing by as high as 189.79% year-on-year. This achievement is also largely due to the forward-looking business layout of Dashi Intelligent. Through continuous deep cultivation in the intelligent Internet of Things industry, we have achieved a business form with AIoT management and control platform that can be copied into a system as the core and dedicated intelligent Internet of Things terminal products independently developed as the support, providing integrated solutions for many markets (smart medical care, smart transportation, data centers, smart communities, smart buildings, etc.). ). Under the current tide of the Internet of Things era, along with the wave of digital upgrading of the industry market, Dashi is in the year of Universiade. It can be predicted that as long as it operates normally and in a favorable market environment, its performance in the next few years can be expected.
Behind the corporate financial report, it reflects the changes in the industry market. From the published corporate performance report, we can clearly feel the following changes:
Digital upgrading of the industry brings new business opportunities
When artificial intelligence, big data and cloud computing become familiar keywords, a revolution about digital upgrading of the industry has begun. AI empowers data and business to go to the cloud to improve management efficiency, reduce comprehensive costs, reshape business processes, and help governments and enterprises achieve digital transformation and intelligent upgrading. This is probably the most basic definition of digitalization.
From the specific business profiles of many enterprises, it can be found that the industries that are undergoing digital transformation and upgrading are covered from public departments such as police, fire protection, emergency response, justice, water conservancy, to large industries such as energy, manufacturing, parks, campuses, communities, hospitals, cultural tourism, and retail.
With the arrival of the digital transformation and upgrading trend of many industries, the traditional operation and management methods can no longer meet the demand, and the solution of AIoT architecture has become a necessary measure to drive business digitalization. In line with the wave of digital upgrading and transformation of the industry, intelligent security enterprises have opened up a broader vertical industry market, and TO G and TO B businesses have also ushered in new growth.
Although the long tail market is fragmented, it should not be underestimated.
In addition to the digital upgrade of large and medium-sized industrial markets, many remaining super-fragmented intelligent application scenarios have also exploded the application demand for AI technology. Although the long tail market formed by them is highly dispersed, the overall scale can not be underestimated, and many new business opportunities can also be tapped.
For example, intelligent early warning of wearing masks in public places, parabolic detection at high altitude, prohibition of battery cars from entering elevators, intelligent monitoring of community garbage classification, sentry duty in communities, straw burning detection and other small and medium-sized scenes. Facing the problems of customers' lack of concentration, low project unit price and high standardization difficulty, the test is the ability of enterprises to balance scale and customization.
Some vendors provide these users with standardized solutions with simple scenarios, standard applications, quick response and simple delivery by launching open platforms. Many a sand makes a tower, and this business cannot be ignored.
Overall, the R&D investment of enterprises is increasing year by year.
The R&D investment of many enterprises is increasing year by year, "7.62% in 20 17, 8.99% in 20 18 and 9.5 1% in 20 19", which is the industry leader Hikvision's R&D investment in recent years.
At present, enterprises that can survive and live in the highly competitive industry market have all experienced layers of tests and customs clearance of innovative technologies. In line with the development trend of the industry, no enterprise still adheres to the traditional security business intact, and most enterprises have completed or are completing the expansion from traditional security to AIoT business.
It is not a case that the R&D investment ratio is close to 10%. According to the historical data of the industry, the annual R&D investment of enterprises in the intelligent security industry mostly stays at 4.5%- 10%. With the arrival of new technologies such as AI and IOT, the security industry has entered an intelligent era, and the higher technical threshold makes the R&D investment ratio increase year by year.
The value of software is prominent, and the software business is growing year by year.
With the continuous improvement of industry intelligence, the proportion of feedback backend from many enterprises is getting higher and higher in the projects with intelligent solutions.
Dahua said in a recent investment survey interview that the audience level of software has reached the highest level in history. Dahua explained that this is mainly due to the changes in the value of software in the industry: the early days belong to the logic of online data of the Internet of Things, and software serves the perception of the Internet of Things. Users can see what happens in the real world through the video surveillance system, but users don't pay attention to the functions of real software; Now, Internet of Things, AI, big data, cloud computing, 5G and other new technologies have formed a complete information network, which has promoted more convenient and faster IOT collection, data transmission, data storage and data application. These new application breakthroughs and the trend of layered decoupling have become important promoters of software in the security industry, making the value of software clear.
In the increasingly service-oriented commercial market, the application of software system can better meet the dynamic needs of users, but for enterprises, software has a high reusability compared with hardware. Building a unified software technology architecture and building a large-scale system software support capability has also become the consensus of the industry.
Potential customer 202 1
At present, the market has returned to the state before the epidemic, and the demand for various projects has been released one after another. In addition, 202 1 is the first year of China's Tenth Five-Year Plan, and new infrastructure and digital economy will undoubtedly become the focus. New formats such as artificial intelligence, big data, cloud computing and blockchain are still the direction of policy promotion. The overall market environment is improving and business opportunities are unlimited. Looking forward to this time next year, I can give all enterprises a more satisfactory answer sheet.