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On January 25-26, 2024, China Securities Regulatory Commission held the 2024 System Work Conference and emphasized that it should highlight the concept of investor orientation. To help investors better understand the real development situation and value of the enterprise, further protect the legitimate rights and interests of investors, etc., Caijing.com and 'Science and Technology Innovation Board Daily' jointly created the 'Shareholders Meeting in Perspective' column.

The 'Shareholders Meeting in Perspective' column is reported on site, focusing on the core management of the chairman of the listed company and others at the shareholders meeting, focusing on the long-term strategy, major decisions, and operational policies of the enterprise, aiming to enhance the image of the enterprise in the capital market, optimize investor relations management, and improve the governance and development of the listed company.

This issue features Beijing InHand Networks Technology.

Company profile

Established in 2001, Beijing InHand Networks Technology focuses on the research and application of industrial IoT technology, mainly providing customers with industrial IoT products, enterprise network products, digital distribution network products, intelligent vending control system products, and covering five major business sectors: enterprise networks, digital energy, industrial and building IoT, smart businesses, and vehicle and transportation.

Company Highlights

The company focuses on the core technology of industrial Internet of Things, with the ability to deeply integrate vertical applications and innovate across boundaries; actively enters the field of AI, successfully launching multiple AI products in the electrical utilities, smart business, and industrial sectors, helping intelligent manufacturing and driving, and radiating domestic and overseas markets through channel advantages.

Business model

The company generates profits by selling industrial Internet of Things products, enterprise network products, digital distribution network products, intelligent vending control system products, and providing related services. Currently, the main revenue comes from product sales revenue.

On September 23, 《科创板日报》reported (by Wu Xuguang) that Beijing-based Inhand Networks Technology held its first extraordinary general meeting of shareholders for 2024, where the proposal on repurchasing the company's shares through centralized competitive trading was approved.

After the meeting, a person from the Inhand Networks Technology secretary's office told 《科创板日报》 that the industrial Internet of Things communications sector remains a major focus for the company. At the same time, it is also accelerating its global market layout, expanding its offerings overseas to include not only industrial Internet of Things products but also digital distribution network products and smart retail AI locker products.

The industrial Internet of Things communications sector remains an important development direction.

Inhand Networks Technology is mainly engaged in the research and application of industrial Internet of Things technology. Its products include industrial Internet of Things products, enterprise network products, digital distribution network products, intelligent vending control system products, used in scenarios such as enterprise networks, in-vehicle, and transportation.

In this regard, the industrial internet of things communication products are the company's traditional core products, on this basis, it has vertically expanded into sub-divided solutions such as intelligent distribution network products and intelligent vending system products.

In the first half of 2024, the company achieved revenue of 0.261 billion yuan, a year-on-year growth of 10.29%; the net income attributable to the mother was 53.4194 million yuan, a year-on-year growth of 14.71%.

Due to the cyclical adjustment in the domestic market and insufficient effective demand, the performance of some communication equipment companies in the industry has declined, with some even experiencing negative growth. At this shareholder meeting, some shareholders expressed concerns about Beijing InHand Networks Technology's industrial internet of things communication business entering a performance decline period.

In response, Beijing InHand Networks Technology stated that the company has been rooted in the industrial internet of things communication field for many years, with business covering multiple segments of the internet of things industry chain. At the same time, relying on its first-mover advantage in international layout, in the first half of 2024, the company's domestic revenue was 0.144 billion yuan, overseas revenue was 0.117 billion yuan; during the same period, its domestic and overseas business gross margin rates were 45.70% and 60.83%, respectively.

"Science and Technology Innovation Board Daily" journalists noticed that Beijing InHand Networks Technology is involved in multiple business sectors, but the company's revenue scale is relatively small. As of the first half of 2024, among peer companies in the communication equipment industry, Raisecom Technology and Kyland Technology achieved revenues of 0.728 billion yuan and 0.42 billion yuan respectively, which are 2.79 times and 1.61 times the revenue scale of Beijing InHand Networks Technology at 0.261 billion yuan.

Regarding this, a person in charge of Beijing InHand Networks Technology told the "Science and Technology Innovation Board Daily" journalists that on one hand, the industrial internet of things communication products the company is engaged in are emerging industries developed based on network infrastructure. It is difficult for small and medium-sized enterprises in the industrial sector to make high investments, and their customers mainly focus on leading companies in the industry. On the other hand, different segments of the industry have different characteristics and varying demands, requiring deployment and development based on the actual application scenarios of each industry.

Renowned economist and member of the Information and Communication Economic Expert Committee of the Ministry of Industry and Information Technology, Pan Helin, stated in an interview with the "Science and Technology Innovation Board Daily" today (September 23) that the domestic bottleneck in the development of industrial internet of things and digitalization mainly lies in the lack of integrated solutions. There are differences in the digital transformation solutions required for the internet of things and digital transformation. This also indirectly indicates that there is still a long way to go for the application and promotion of industrial internet of things.

"The trend of industrial internet of things communication remains positive." A person in charge of Beijing InHand Networks Technology further stated that with the iterative upgrading of industrial internet of things technology and the development from the Internet of Everything to Intelligent Internet of Everything, as well as the issuance of policies, the market's interest in industrial internet of things may continue to increase, and it is expected that the industrial internet of things sector will have an annual growth rate of around 20% in the future.

According to the semi-annual report of Beijing Inhand Networks Technology, in the first half of 2024, the company's industrial Internet of Things product revenue was 0.136 billion yuan, a year-on-year increase of 19.80%, accounting for 52.05% of the revenue.

"In 2024 and beyond, the industrial Internet of Things communication sector remains a key focus for the company." Looking ahead, a spokesperson from Beijing Inhand Networks Technology stated that the industrial Internet of Things communication business will continue the growth trend seen in the first half of the year.

Intending to continue expanding overseas market channels.

Globalization has always been a key strategic goal for Beijing Inhand Networks Technology.

Regarding the revenue growth situation in overseas markets for the first half of 2024, a spokesperson from Beijing Inhand Networks Technology stated that the company's overseas revenue increased by 48.24% year-on-year, accounting for 44.73% of the total revenue.

"Overseas markets have always been a market that the company values greatly, the company will continue to put in great efforts to expand internationally." Regarding the company's expansion plans and project implementation in overseas markets, during the shareholder meeting, a spokesperson from Beijing Inhand Networks Technology told the reporter from 'Star Market Daily' that based on the competitiveness of the company's industrial Internet of Things communication products in overseas markets, the company will focus on promoting its full range of products to a wider range of overseas countries or regions.

"In the first half of the year, the company's sales expenses increased by 15.53% year-on-year, mainly due to the company strengthening its overseas market layout, including structural adjustments for overseas personnel, recruitment promotions, and other work." The spokesperson introduced.

In terms of overseas business expansion, Beijing Inhand Networks Technology stated during an institutional investor survey in August this year that the company's current overseas revenue mainly comes from industrial Internet of Things products and related enterprise network products, targeting customers in overseas industrial, commercial and business branches, public transportation, and other fields. In terms of global sales region layout, it has established a global sales system with a core focus on the Americas, Europe, and Asia-Pacific. Currently, the highest proportion of overseas revenue comes from North America, followed by Europe and the Asia-Pacific region.

In addition to industrial IoT products, the company is also expanding its overseas footprint by bringing digital power grid products and intelligent retail AI smart locker products to support the global sales of all products. An official from InHand Networks Technology Secretariat said that, taking intelligent retail smart lockers as an example, "Against the backdrop of slowing domestic market demand, the expectations for the intelligent transformation of overseas non-smart vending machines are good. The market for non-smart vending machines overseas is in the tens of millions, with a large existing stock. Due to the low popularity of mobile payments overseas, the company's products have already been promoted in Southeast Asian countries where mobile payment applications are more widespread."

What risks does InHand face when expanding its business in overseas markets? Will it be affected by geopolitical factors? And how to deal with them? These are also the topics that investors pay more attention to at shareholder meetings.

Previously, Li Hongyu, director and general manager of InHand Networks Technology, stated that geopolitical risks will have a certain impact on the company's overseas business. The company has made early layouts in the upstream supply chain and production stages to cope with risks from international sources: First, it emphasizes diversification, with the company identifying sales areas in the Americas, Europe, Asia-Pacific, and seeking market opportunities in multiple countries or regions; Second, actively seeking strategic cooperation, strengthening cooperation with local enterprises, sharing resources, and enhancing customer stickiness.

Looking forward to the overseas market, InHand Networks Technology stated that it plans to invest more resources in the global supply chain, enhance the company's ability to deal with international trade risks, improve its service responsiveness to overseas customers, and support the growth of the company's revenue and global business expansion.