I. Discussion and Analysis of Operating Situation
During the Reporting Period, the Company realized revenue from its main business of approximately RMB1.777 billion, of which the revenue from its cloud computing business amounted to approximately RMB430 million.
Unit: 100 million yuan Currency: RMB
The specific development of each business is as follows:
(1) Traditional business: reduce costs and increase efficiency, and plowing into industry customers
The Company's traditional business segment, grasping the market opportunities of information technology upgrading and industrial change, combined with its own customer service accumulation of more than 20 years in the government and enterprise industry, to plowing into the customers and developing partners, Expanding business areas. During the reporting period, the company continued to maintain good cooperative relations with operators, finance, energy, government and other industry customers on the one hand, consolidating market share, and on the other hand, actively expanding new eco-partners,**** to enjoy the results of synergistic development. in the first half of 2020, new key projects in various industries include: operator industry, Henan Mobile 2020-2022 DICT integration support procurement project , China Tower's software development services for 2020-2021, 2019 Telecom Group Cloud Resource Pool Inner Mongolia Node A Expansion Project, Beijing Node Expansion Project and Shanghai Node A Expansion Project, etc.; in the financial industry, BOC Consumer Finance Co.'s New Production Environment Phase II Server and Storage Equipment Procurement Project, PICC Group's OA Construction Project, People's Republic of China Property and Casualty Insurance Co.'s Huawei All-in-One Project Procurement, China Postal Savings Bank Anti-Money Laundering 2019 New Functionality Project, etc.; in the energy industry, Yunnan Power Grid Company Limited 2020 Second Batch of Technical Service Project for Secondary Specialized Production Project, Sinopec Sichuan-East Natural Gas Pipeline Company Limited Integration Project, Beijing Jingneng Clean Energy Power Company Limited Videoconferencing System and Conference Integration and Renovation Project, etc.; and in the government, the National Health and Health Commission Statistical Information Center Palm Health Mobile Client APP system development project, Shenzhen Municipal Bureau of Finance Finance Bureau management system project, China Science and Technology Museum face recognition gate procurement project 1, Anbiao National 135 subject main data center system construction, etc.. The company will continue to maintain the advantages of integration and implementation capabilities in large-scale projects, and gradually expand its market share in various deep-rooted industries, laying a good foundation for horizontal expansion of business.
(B) Innovative business: "Yun Cheng Yun Sheng" strategic focus, competitiveness highlights
1, Yun Cheng series
During the reporting period, the company will be scattered big data-related products, sorted out into a complete one-stop data governance product line, so that the cloud into the series of the formation of the two optimal product lines: data governance series products and cloud computing series products. The company has organized the original scattered big data-related products into a complete one-stop data management product line, so that the cloud computing series has formed two optimal product lines: data management series and cloud computing series. Huasheng cloud computing business is located in the hybrid multi-cloud era of cloud resource management and application service experts, through the cloud computing and big data two optimal product lines of related products and services, empowering customers to digital transformation. In the context of the current new infrastructure, on the one hand, it accelerates the construction of a unified and converged cloud infrastructure, and on the other hand, it provides full lifecycle management for the enterprise's business systems in the cloud, and assists the enterprise's process optimization, efficiency enhancement, and business innovation through the construction of digital capabilities.
During the reporting period, the company won the bidding for Unicom's WoCloud Platform Integration and Development Project and the Bank of Tianjin's Co-location Dual-Active Data Center Project. Meanwhile, the company also continued to implement Phase IV of the Bank of China's Data Governance Project for its old clients, Phase II of the Hebei Agricultural Development Bank's Monitoring and Operation and Maintenance Project, Phase II of a domestic Top Bank's Efficient Management of VMware Clusters Construction Project, Phase II of a Provincial Carrier Autonomous Controlled Heterogeneous Hybrid Cloud Platform Construction Project, and Phase II of the Financial Client's Heterogeneous Cloud Platform Construction Project. The second phase of the construction project for a provincial operator's autonomous and controllable heterogeneous hybrid cloud platform, the second phase of the construction project for a financial client's cloud orchestration platform, etc.; the construction project for the security system of the Beijing Railway Transportation Command Core Platform, the hyper-converged cloud service project of Schneider Electric (China) Limited, the Beijing Mobile Network Management Technical Support Operation Service, and the data governance project of Longhu Real Estate have been implemented and completed in the reporting period.
The company has achieved a comprehensive breakthrough in the government, finance, operators, energy, intelligent manufacturing, radio and television media and other industries. Combined with the current background of new infrastructure, it builds digital capabilities for enterprises, provides products and solutions adapted to the different construction stages of enterprise IT, and is always on the customer's side to provide scenario-based cloud computing-related products and services, covering enterprise cloud strategy planning, consulting, We provide cloud computing related products and services that cover the entire process of enterprise cloud strategy planning, consulting, construction and implementation, cloud migration, business orchestration, DevOps, cloud operation and maintenance, and operation, so that we can do a good job as an enterprise's digital assistant.
2, cloud win series
(1) emergency security cloud
Emergency as an emerging market, the first entrant will have a greater advantage, with the establishment of the Ministry of Emergency Management, the domestic emergency industry will gradually usher in the peak of the investment and construction. During the reporting period, the company focused on the strategy of "running the market, staring at the key points, and setting up benchmarks" to provide emergency management informatization consulting services, planning and design, and delivery and landing services for local emergency management departments nationwide.
"Run the market", the first half of the year to cover the country's 27 provincial emergency management functions, more than 127 municipal / county emergency management functions, more than 20 park-level emergency management functions; "focus", focusing on the nationally selected key topics, industry pilots, and the local community. Stare at the focus", focusing on the key themes and industry pilot units selected by the state, leading and participating in the top-level design and planning and project delivery; "Benchmarking", selecting five levels of pilot benchmarks (provinces, cities, counties/districts, parks, key enterprises), grading and building benchmark products and services by industry to provide reference and visit project cases for the subsequent project landing across the country. The report provides a reference for the subsequent project landing across the country, as well as project cases that can be visited.
During the reporting period, the company has won the bidding for the Ministry of Emergency Management forest firefighting project, the Beijing Municipal Health and Wellness Supervision Institute of Health Supervision Information Technology Operation and Maintenance Project Security Operation and Maintenance Services Procurement Project, the Heze Big Data Bureau visualization project, the Qiantang New District Emergency Management Project, and many other projects.
Among them, the Ministry of Emergency Management forest firefighting project is a national key project, the project is currently in delivery; Qiantang New District Emergency Management Project belongs to the pilot project of the key regulatory enterprises, the project is an important milestone for the emergency market from the G end to the B end, the project has been completed and delivered to the customer to use, the platform is running well, and is now planning for the next stage of the promotion of the matter.
During the reporting period, the company's emergency response business made important breakthroughs in 3D map engine technology, video service technology, converged communication technology and data governance technology, and applied for and completed 27 software copyrights and 7 patents.
(2) Cross-border logistics cloud
The company's cross-border logistics cloud is committed to focusing on the advantages of the port, and building a cloud service platform that aggregates business flows with the customs services of the port. By building a digital customs clearance system, connecting domestic and overseas customs systems, airport terminals, and through data interconnection with overseas, as well as pre-declaration and other modes, the company builds a digitalized China-Europe special line, which significantly improves the efficiency of the original logistics routes and reduces costs. At present, the cross-border logistics cloud in South China, East China, North China have signed local collectors, and signed more than 30 domestic and foreign aviation partners, logistics routes have covered the United States, Europe and Southeast Asia. At the same time, Cross-border Logistics Cloud has completed the testing of 9610 customs clearance module in the digital integrated service platform for cross-border e-commerce in a region of Hunan Province, and will be ready for on-line operation after the acceptance of the off-line operation site is completed; it has completed the system construction of 9610 customs clearance module in the digital integrated service platform for cross-border e-commerce in Chongqing Chongqing Chongqing Xinxin Europe Port, and has been put into use; it has completed the system construction of 9610 customs clearance module in the digital integrated service platform for cross-border e-commerce in a region of Henan Province. Completed the testing of the 9610 customs clearance service module of mail in a regional digitalized comprehensive service platform of Henan Province, and is waiting for the system to be put on line.
During the reporting period, the Company and relevant departments are actively promoting further business cooperation.
(3) Intelligent Retail Cloud
The company's controlling subsidiary ASL's GD America, which mainly serves Fortune 1000 companies, is a leader in promoting enterprise-level digital transformation, and is currently the leading international provider of next-generation large-scale e-commerce, open-source cloud computing platforms and big data solutions. The business scope is based on strategic consulting, early prototyping, and building new digital platforms for enterprise-wide delivery across cloud implementation, big data analytics, and continuous delivery.GD leverages its deep expertise in emerging technologies such as Artificial Intelligence, Data Science, Cloud Computing, Big Data, and DevOps, top-tier global engineering talent, lean software development practices, and high-performance product culture to Helping organizations become more agile and create new digital products and experiences, GD, headquartered in the San Francisco Bay Area and with technologists located in engineering delivery centers across the U.S., Central and Eastern Europe, is widely known for building and delivering some of the largest digital transformation initiatives in retail, technology and finance, helping clients gain market share, shorten time-to-market, and massively reduce digital operating costs. GD's top 10 clients currently span global organizations such as Apple, Google, Macy's, and Coles Stores.
During the reporting period, GD (stock code: GDYN) completed its listing on NASDAQ and was included in the FTSE Russell Index. For details, please refer to the Company's Announcement No. Lin2020-011 "Progress Announcement on the Sale of Overseas Assets by a Controlling Subsidiary and the Securitization of Such Assets in the United States" published on the website of the Shanghai Stock Exchange.In the first half of 2020, the prevalence of the New Crown Epidemic had a certain adverse impact on GD's share price, business operations and overall financial position, but the outlook is optimistic in the long term.GD's business in the retail industry has a relatively high degree of concentration, and it is more GD's business in the retail sector is relatively more concentrated and more susceptible to demand pressures, and as a result, revenues declined during the reporting period, but based on signs of recovery in the retail sector and recognition from a number of new customers, we believe that business growth in the second half of the year will gradually recover and return to past levels.
GD provides customized application development and digital engineering services by leveraging the technical strengths of its technology talent pool in Eastern and Central Europe, which has a strong IT supply base and a favorable cost position. It continues to invest in R&D to continually strengthen its service capabilities, including in managing e-commerce platforms, mobile apps, and customer engagement and loyalty platforms, to enhance the breadth of digital offerings for its clients.
Given its deep expertise in the retail and technology sectors, as well as building in CPG, manufacturing and financial services verticals, GD is poised to grow at an even faster pace as the New Crown outbreak eases.
(4) Intelligent Tourism Cloud
During the reporting period, Intelligent Tourism Cloud, one of the Company's vertical industry clouds, continued to maintain a steady pace and achieve sustained growth. Intelligent tourism cloud has provided consulting and planning services for the Tianjin Binhai New Area Culture and Tourism Bureau for the intelligent culture and tourism project, helping the construction of the Binhai New Area's intelligent city. Provide intelligent scenic area project construction services for Anping "Chinese Horse City" scenic area and Helan Mountain rock painting scenic area, and explore and innovate in comprehensive management, service and operation of scenic areas; provide different dimensions of operation services for Nanjing Fuzimiao Scenic Area, Zhengzhou Garden Expo Park and Panzhihua China Third Line Construction Museum, and develop the operation of products such as Lamp Wish, Palm Visitor Service Center and Cloud Tourism, which realize the deepening of the expansion of the scenic area's income generation and operation, as well as the strategic transformation.
(C) investment business: multi-point blossoming, rich earnings
In the first half of 2020, the company's investment business is mainly post-investment management, for the holding companies, on the one hand, is committed to its industry on the close synergy, cooperation **** birth, on the other hand, the company fully supports the invested enterprises listed separately.
During the reporting period, GD officially completed its listing on NASDAQ (stock code: GDYN) and was included in the FTSE Russell Index.
In addition, the Company's high-quality targets invested through industry funds also made further progress during the reporting period:
(1) Telink Microelectronics, a high-quality chip enterprise incubated by the Company through the participation of three funds, has been growing and attracting strategic investments from various parties.
In March 2020, the National Integrated Circuit Industry Investment Fund Co. (hereinafter referred to as "IC Industry Fund") formally invested in Telink Microelectronics and became the second largest shareholder of Telink Microelectronics. The IC Industry Fund's shareholding in Telink Microelectronics shows that Telink Microelectronics' technical strength and strategic position in chip research and development have been strongly recognized.
(2) The IPO application of Beijing Huasheng Tiancheng Low-Carbon Industry Venture Capital Center (Limited Partnership), in which the Company invested in JingJin Electric Power Technology Company Limited (hereinafter referred to as "JingJin Electric Power"), was accepted by the Shanghai Stock Exchange (SSE) during the reporting period. JingJin Electric is an industry-leading provider of motors and power systems for new energy vehicles, and one of the few manufacturers in the industry that can comprehensively cover the power systems and core components for the most important applications of new energy vehicles, with a rich portfolio of products including motors, electronic controls, control software, battery packs, special transmissions for new energy vehicles, and reducer assemblies, etc. JingJin Electric's products are characterized by excellence and systematic innovation, and the company is committed to the development of new energy vehicles. The company strongly supports the rapid development of new energy vehicle market with excellent products and systematic solutions, and has won the trust of global customers by virtue of its outstanding quality and technological advantages, and successfully pushed China's new energy vehicle electric drive products to industrialization and internationalization.
(3) The shares of ZiGuang (000938) held by the Company through its equity participation in Beijing GuoYanTianCheng Investment Management Company Limited (hereinafter referred to as "GuoYanTianCheng") were released from the restriction on the sale of the remaining part of the shares during the reporting period, and GuoYanTianCheng sold part of the shares of ZiGuang during the reporting period. The shares of Amlogic indirectly held by the Company through its participation in Jiaxing Enigma Fund have expired the lock-up period on August 7, 2020, and the shares can realize circulation.
The Company's precise investment layout has not only efficiently and successfully perfected the industrial chain, but also brought the Company substantial investment returns.
Second, the risks that may face
1, market risk
By the macroeconomic environment, the target industry bidding lags behind, the project implementation progress slows down, resulting in the risk of the company's income is less than expected.
2, technology risk
The company does not have an accurate grasp of the direction of information technology development, the resources invested in the lack of sustainable development of technology and business direction, resulting in the risk of waste of resources. In this regard, the company will have a comprehensive understanding of the latest trends in the development of industry technology, timely tracking of new technologies, and rapid response to new market demand.
3, investment risk
The company's foreign direct and indirect investment is more, it is expected that the second half of 2020 due to the fluctuation of the securities market, may bring changes in the company's earnings. The company's current investment business has entered the post-investment management stage, and affiliated enterprises in the market, technology, finance, manpower and other aspects of the need to optimize the integration, there is a risk that the integration effect does not meet expectations; and the synergy with the participating enterprises need to be more closely. In this regard, the company will further improve the management system, so that the participation and holding subsidiaries synergistic development.
4, overseas business risk
The company's business scope touches North America, Europe, there are countries where the business of trade protection, political risk, economic risk affecting the company's overseas business operations may occur; at the same time, with the company's overseas business increases, the exchange risk increases.
C. Analysis of core competitiveness during the reporting period
(a) Systematic cloud product advantages
As one of the earliest enterprises involved in cloud computing services in China, the company actively laid out the entire industrial chain, and has a significant advantage in the field of comprehensive cloud computing services. Ten years of precipitation has enabled the company to form a series of products and programs such as big data overall solutions, cloud computing management platform software, vertical industry application software, etc., providing one-stop "independent and controllable, secure and trustworthy, highly efficient and usable" cloud services for customers in various industries to meet the needs of users in multiple scenarios.
(ii) Leading technology
In terms of data governance, cloud computing platform and vertical application technology research and development, the company has become a leader in this field in China, has been recognized as a key software enterprise within the national planning layout for many years, and has been awarded the title of "2019 Top 10 Leading Enterprises in Software and Information Services" in 2019. " title. The company has a professional team of cloud product development, service and data analysis talents, including senior engineers, nearly 100 senior project managers and project managers certified by the Ministry of Industry and Information Technology as well as more than 1,000 consultants with more than 5 years of experience.
With the expansion of the company's business territory, the company has formed a joint R&D layout of "China, Silicon Valley, and Europe", and has a leading edge in mastering the global cloud computing, Internet of Things (IoT), big data, artificial intelligence and other technologies. The company has obtained CMMI-L5 software maturity capability certification, CMMI-L5 is the most difficult and highest level of software capability maturity certification, through the certification signifies that the company's product development and project management capabilities to reach the international advanced level, but also to promote the company's continuous improvement of internal efficiency, enhance the quality of management, and to enhance the company's competitive advantage.
(C) brand advantages and complete qualification system
Twenty years of intensive cultivation, the company has established a mature marketing system, to create a solid customer base and good customer reputation, is the operator, the government, finance, energy, consumer, industrial logistics, safety supervision, tourism, the Internet, and other industries, the trust of the customer's partners, with a high market position. The company is a national high-tech enterprises, with ISO series certification, classified information systems integration qualification (Class A) and other qualification certificates.
At the same time, the company is China's comprehensive through the ISO9001, ISO20000, ISO27001 three major international quality management system certification of IT service providers, is one of the earliest through the CMMI-L5 international assessment of the certification of the software enterprises, the country's first batch of information systems integration and services large-scale first-class enterprise one of the enterprise qualification, with the People's ** and State value-added telecommunications business license. * and the country value-added telecommunications business license, with security engineering enterprises - design, construction and maintenance of the ability to certify the first level, the information security services qualification certificate - security engineering class two certificates.
(D) a large customer base and close partnerships
20 years of intensive cultivation for the company has laid a large customer base, the company has accumulated more than 10,000 government enterprises, industry customers to provide solutions and services, user viscosity is high, in the field of telecommunications, postal services, finance, government, tourism, education, manufacturing, energy, transportation, the military and other areas accumulated a large number of stable and high-quality customer resources. The company has accumulated a large number of stable high-quality customer resources. In the face of these industry customers, the company has outstanding business understanding, with cloud infrastructure construction, customized cloud application software development, data services, information security and other one-stop cloud service capabilities, and customers to form an interdependent, *** with the development of the relationship.
Meanwhile, under the current policy and market environment, the company attaches great importance to cooperation with industry head companies. The company has more than 50 world-class partners, and has maintained close cooperation with major domestic and foreign vendors over the years, is an official AWS senior partner, and actively hand in hand with Baidu, Huawei and other domestic cloud computing IAAS layer leader, is committed to building a segmented industry cloud leading enterprises. Among them, the company and Huawei have established a long-term partnership, and the two sides are committed to *** with the development and exploitation of the technology and application scenarios involved in the new generation of IT. In the field of cloud computing and kunpeng computing industry, the two sides will comprehensively coordinate the complementary resources, around the cloud and kunpeng computing industry to strengthen the deep integration of the three dimensions of the product, industry, region, and based on the multi-cloud platform and emergency response, finance, electric power and other key industries around the ecology of the effective combination of the realization of huashengtiancheng and Huawei's focus on the industry program to achieve the cooperation of Huawei to bring a new space for development and opportunities.
(E) marketing service network and internationalization advantages
The company has dozens of member companies, has formed a marketing service network based in Beijing, China, covering major cities in China and Hong Kong, Macao, Taiwan, Southeast Asia, North America and Europe, with the ability to globalize the sales of products, system construction and service delivery. The company is actively expanding overseas markets, in the United States, Europe, Russia, Ukraine, Poland, Hong Kong and Southeast Asia have set up molecular companies and R & D centers, the company practices the "Belt and Road" initiative to carry out inter-regional brand, products, technology, personnel and customers and other elements of the **** enjoyment and integration, the internationalization of the advantages of the prominent.