Guo Wei Explains Shenzhou Holding'S "New Racetrack": The Market Value Is Undervalued And Will Be Listed On The Science And Technology Innovation Board

"Even for companies like bat, they can't do the final landing and implementation of many products. Because his organizational structure and innovation system do not allow it. Even if he did, he couldn't compete with his competitors. Therefore, it will be found gradually that large companies will be more willing to do some platform based and product oriented business. " Recently, at the roadshow of Shenzhou holding's medium-term performance, Guo Wei, chairman of the board of directors of Shenzhou holdings, disclosed to the 21st century economic report and other media that smart city needs the accumulation of data and technology, and the cost baseline of the company's investment in R & D is about 5%.

In the first half of this year, thanks to China's accelerated development of new infrastructure, the overall performance of Shenzhou holdings achieved a substantial growth. Compared with the previous fiscal year, the profit of the parent company increased by about HK $920.3 billion, representing an increase of about HK $1.03 billion. As of press release, its total market value is HK $10.919 billion.

In this regard, Guo's direct call business is seriously underestimated. "I dare not say that when I give a person a valuation of 5 billion yuan, I will not even say that the return on the market is more than 1 billion yuan

The spin off may be the next move for Shenzhou holdings. After obtaining 700 million RMB round B financing, the post investment valuation of its smart city business company Beijing intero has exceeded 6.2 billion yuan. After the completion of the transaction, the equity of intertro will be owned by Shenzhou investment, Shenzhen Pratt Whitney, Changchun financial holding, Changchun Jingyue and other individual holders respectively of about 71.54%, 11.45%, 6.45%, 4.84% and 5.72% respectively. Guo Zhengli, COO of Shenzhou holdings, revealed that it was considering promoting the related work of splitting the business plate and preparing for A-share sci-tech innovation board.

Smart city entrance

From the financial report of Shenzhou holding, the proportion of smart city business is not too high at present. According to the data, the company's overall revenue of the smart industry chain business was about HK $3.092 billion, a significant increase of 31.56% compared with the same period of the previous fiscal year; the company achieved a profit of HK $78 million, an increase of 81.15% year-on-year. The overall revenue of smart city business was about HK $152 million, up 69.78% year-on-year, and the gross profit was about HK $44 million, with a year-on-year increase of 195.16%.

This performance is mainly driven by the new infrastructure projects. The flagship big data product "Yanyun DAAS" has been launched in a number of large Smart City 3.0 projects, and won more than 100 billion yuan of projects.

"The epidemic has its disadvantages, but it is the epidemic that highlights the important role of digital technology. Because China has a health code, people's whereabouts can be traced back to the source, and the safety between people is guaranteed, so China's economy has been rapidly recovered. " Guo Wei further explained that the smart city CTO mode adopted by Shenzhou holdings combines new technologies such as urban big data and Internet of things with the development strategy of urban digital industry, and is committed to solving a series of problems such as government management, medical treatment, transportation and environmental protection.

At present, the Intel headquarters project has been settled in Changchun. Jing Junhai, deputy secretary of Jilin provincial Party committee and governor of Jilin Province, expressed the hope that digital China and Samsung SDS and other partners would seize the opportunity and cooperate in an all-round way, promote the production base, sales center and R & D institutions in Jilin to upgrade the level and scale, improve the industrial ecosystem, and base on Jilin Province to radiate Northeast China, the whole country and even northeast Asia.

"The arrival of the epidemic makes the government realize that the investment in informatization is very important to the efficiency improvement of the whole city management." Guo Zhengli disclosed that the original signed contract was only one million million million yuan. Now, the amount of each contract under the CTO mode has reached hundreds of millions, and the business of the whole smart city has doubled.

This is just a microcosm of the industry. In the past 10 years, China's smart city construction has experienced two stages, namely, the decentralized construction stage of smart city concept introduction and the standardized development stage of smart city pilot exploration. At present, China's smart city construction has entered a new stage of smart city development, which is people-oriented, effect oriented, overall planning and intensive, and collaborative innovation.

According to the report of EU billion think tank, by the end of 2019, all cities above the sub provincial level, more than 95% of prefecture level cities and more than 50% of county-level cities have proposed the goal of building smart cities. In the future, the construction of urban data center will improve the ability of cross level, cross region and cross system collaborative operation, and further integrate with blockchain, Internet of things, cloud computing and other technologies, which will further break the information island and drive the construction and improvement of trusted data sharing and exchange platform.

Differentiated competition with bat

In the digital era, artificial intelligence technology needs to use data for calculation, and enterprises also need to accumulate relevant data such as product production, enterprise operation and user information. However, the current situation is that the development of digital construction of Chinese enterprises is slow, the production data and operation data of most enterprises are scattered, and there are data islands and data difficult to be effectively used.

According to Guo Wei, in cities, governments and large enterprises, data exists in many systems of different ages and different manufacturers. In order to realize data interconnection between various systems, it is often faced with problems of low efficiency and high cost. How to integrate a large number of urban big data in real time and effectively and transform it into an application that can serve the citizens, government and industry is the main problem in the construction of "new infrastructure".

According to the "2019h1 global semi annual smart city expenditure guide" released by IDC, in 2018, China's smart city technology-related investment scale was US $20.053 billion, with a year-on-year increase of 15.91%; in 2019, China's smart city technology related investment reached about 22.879 billion US dollars, an increase of 14.09% compared with 2018. In 2020, the scale of China's market expenditure will reach 26.6 billion US dollars, which is the second largest expenditure country, next only to the United States.

In this vigorous "city building campaign", not only the central enterprises represented by CETC, but also Internet companies have joined in. Baidu, Alibaba, Tencent, Huawei, Jingdong, Ping An, Hikvision, iFLYTEK, etc. have all vied to become players of smart city.

However, facing the huge market dividend, each company plays a different role and has its own unique advantages in a certain field. "Although there is a gap between the government and the government, there is a gap in understanding the role of the government and the government. We have a clear understanding of our early competitive advantages. " Guo Wei said.

In addition, Guo Wei also expressed his concern on three areas in the future. One is the innovation and evolution of cloud technology facilities; the second is the reconstruction of cognition and enterprise competitiveness based on big data knowledge; the third is the innovation of scene, that is, the innovation of business. "Shenzhou's companies are based on such a logical layout, which is both relevant and independent. They should be optimized in various fields. The whole distribution is around data business and technical logic."

As for the current hot technologies such as 5g, AI and the Internet of things, he believes that AI has few applications other than face recognition, and there is still a long way to go for the combination of AI and industry. "The innovation of technology companies must adhere to the long-term principle, not in how fast the business can grow, but to have a continuous voice in the industry."

(trainee reporter Yi Jiaying also contributed to this article)