Sanwei Xin'an Capital Customs Creation Board: The market share of the main products is only 0.41%, and the steps of localization to be accelerated

Picture source: Oriental IC

On September 22, Sanwei Xinan officially launched a full "core" series of products, including innovative results such as password chips, password board cards and password machines.

Just 7 days before the release of new products, the CSRC released the "Approval of the first public issuance of stock registration for the first public issuance of stocks". When the IPO was approved, Sanwei Xinan released a series of new products to the outside world to show its determination to "create a hardcore technology" in the field of commercial passwords.

The password infrastructure provider established in 2008 has finally passed through the science and innovation board after 14 years of dormancy. The prospectus shows that Sanwei Xinan's proposed shares plan to issue no more than 19.14 million shares this time, accounting for not less than 25%of the total share capital after the issuance.

San Weixin'an's release of new products may be a response to the previous number of technical patents, but from the relevant data disclosed by the prospectus, there is still a major raw material chip, assembly accessories, etc. Risk factors such as insufficiency have laid hidden dangers for its future development.

In the first half of 2022, the estimated revenue and net profit increased, and the market share was only 0.41%

On December 21, 2021, Sanwei Xin'an Application Science and Technology Board was listed. After nearly nine months of review, on September 14, 2022, Sanwei Xinan ushered in the good news approved by the IPO and updated the prospectus.

The prospectus shows that from 2019 to 2021 (hereinafter referred to as the "reporting period"), Sanwei Xinan's operating income was 134 million yuan, 202 million yuan, and 270 million yuan. 20.4786 million yuan, 52.305 million yuan and 74.6951 million yuan.

From January to March 2022, Sanwei Xinan realized operating income of 27.2888 million yuan, an increase of 6.54%year-on-year; net loss attributable to shareholders of parent company was 9.2145 million yuan, a year-on-year decrease of 4.57%. At the same time, it is expected that the operating income from January to June 2022 was 91.681 million yuan to 99.8571 million yuan, a year-on-year increase of 21.33%to 32.15%; the net profit attributable to the owner of the parent company was 1,055,100 yuan to 12.861 million yuan, a year-on-year increase of 121.96 %To 183.91%.

Because the industry is in a certain season, the realization of Sanwei Xinan's revenue and net profit is mainly concentrated in the fourth quarter. Therefore, from the expected financial expected in the first half of the year, although the net profit in the first quarter of this year is expected, the overall is better to get better. Essence

San Weixin's profit mainly comes from the sales of password products, as well as providing password technology services for customers. The products mainly include password board cards, password machines and password systems.

From the perspective of revenue, during the reporting period, the company's password board card revenue accounted for 40.54%, 31.64%, and 28.59%, respectively; the total revenue of the password was 42.37%, 44.24, respectively. %And 44.19%; the total revenue of password systems accounted for 8.21%, 17.73%, and 21.80%, respectively.

While the proportion of password card card revenue has decreased, the proportion of revenue of the password system has increased significantly. It is understood that Sanweixin's password system products mainly include key management and identity authentication systems and cloud password service platforms. With the development of cloud computing technology, more and more traditional applications have migrated to the cloud, which provides space and opportunities for its layout of cloud password service products.

At present, the leading domestic commercial code manufacturers mainly include Naitong, Sanwei Xin'an, Jiangnan Tianan, Fisherman Information, and Xingtang Communication. From the perspective of market share, Sanwei Xinan's 2020 password board card, password machine and password system revenue was 190 million yuan, and the market share was about 0.41%.

As the first domestic cryptographic enterprise, Guolong, which was listed in 2008, was 593 million yuan in password product revenue in 2020 and a market share of 1.27%. In addition, the Naitong achieved operating income of 2.789 billion yuan in 2021, and the net profit attributable to the owner of the parent company was 238 million yuan.

In contrast, Sanwei Xinan's three -year net profit was about 147 million yuan. Although it has been deducted, there is still a large gap in market share and R & D investment.

Core technology patents are limited, and new products are released?

The prospectus shows that during the reporting period, Sanwei Xinan's R & D investment was 32.91 million yuan, 37.0817 million yuan, and 50.451 million yuan, respectively, accounting for 24.60%, 18.31 and 18.66%of operating income.

It is worth noting that employees' compensation, share payment, foreign association service fee and depreciation amortization fee are the main components of R & D expenses. During the reporting period, the total proportion of R & D expenses was 88.10%, 89.89%, and 86.45%, respectively.

During the reporting period, from the perspective of R & D expense ratios, the average value of listed companies in the same industry was 13.16%, 15.57%, and 15.76%. During the period, its sales revenue is small compared to the same industry listed companies, and R & D expenses account for a higher proportion of operating income.

As of the date of the signing of this prospectus, Sanwei Xinan has obtained a total of 29 authorized patents, of which 24 invention patents have no overseas patent. In addition, 161 software copyrights have been obtained, and 6 integrated circuits have been obtained. Judging from the known disclosure data, the Guizhitong authorized more than 200 national invention patents and more than 370 software copyrights, which was a large gap compared with it. As a knowledge -intensive high -tech industry, there is still room for controversy. On September 22, Sanwei Xinan launched the successful development of the XS100 password security chip, and based on this chip developed a series of products such as password board cards and password machines to create the latest "core" series of password products.

At the time of comprehensively pushing the market, San Weixin'an attaches great importance to the development of the core "password chip" of the industry chain. The planned fundraising is 403 million yuan, which will also be used in the development and development and upgrading of password products, password security chip development and upgrading, accounting for 36.49%and 42.44%of the total investment, respectively.

Nevertheless, Sanwei Xinan still has the risk of insufficient financing and talent reserves. It admits in the prospectus that the company is still in the business development period, the scale is still small, the capital strength is weak, the financing channels are relatively lacking, and the development is limited to a certain extent.

At the same time, with the high -speed development of emerging fields such as big data, artificial intelligence, the Internet of Things, and blockchain, and the increasing personalized and customized needs of customers, their existing manpower reserves have made greater challenges.

During the reporting period, the number of R & D of Sanwei Xinan was 99, 111 and 139, respectively, accounting for 43.23%, 42.86%, and 44.27%of the total number of employees. The trend of growing year by year.

Although talents are the key to siege, it may be embarrassed if there is no self -developed hardcore technology.

The main raw materials depend on import, and the localization of the commercial password industry is to accelerate

The prospectus shows that during the reporting period, the amount of Sanwei Xinan's procurement chip was as high as 19.741 million yuan, 23,062,800 yuan, and 360,900 yuan. The amounts of accessories are 11.9941 million yuan, 11.907 million yuan, and 19.9139 million yuan, of which imported assembly accessories account for 57.12%, 51.67%, and 56.60%, respectively.

Three Weixin'an pointed out that due to the comprehensive influence of global chip manufacturing capacity, the new crown epidemic, and international trade frictions, there are different degrees of supply tensions such as imported chips and assembly accessories. The risks of imported raw materials such as chips and assembly accessories.

In the new product released this time, it introduced that the password board card has achieved 100%nationwide production, and at the same time increase the localization rate of the core device of the cryptic machine and enhance the supply chain security of the password product.

According to the "2021-2022 Commercial Code Industry Analysis Report", at present, there are many companies in my country's commercial password industry. There are more than 1,200 domestic production and commercial password companies, showing a competitive situation of "more powerful leadership and clear echelon". From the perspective of scale, the current commercial password industry is mostly small and medium -sized enterprises, with relatively small revenue volume, and the industry is relatively fragmented. Each company's business is concentrated in a few areas or individual advantage industries.

On August 20, 2021, the Personal Information Protection Law of the People's Republic of China was officially released and implemented on November 1, 2021. The "Personal Information Protection Law", as the basic law in the field of personal information protection, has jointly constructed my country's data governance legislative framework with the "Cyber ​​Security Law", "Password Law" and "Data Security Law".

The analysis believes that with the implementation of the password method and the state's support for domesticization, the performance requirements of underlying chips, cards, and device performance will continue to improve, and the performance upgrade of industrial technology and products will have a large performance. Facing fierce international competition from foreign products to the irreversible trend of domestic products, and commercial password products will be a large number of localization.

According to Sidy statistics, the market size of domestic commercial passwords in 2020 is 46.6 billion yuan. The commercial password industry is relatively scattered and has not yet formed an industrial cluster advantage. It is expected that the scale of the commercial password industry in 2023 is expected to reach 98.585 billion yuan.

Zhang Yuegong, chairman and general manager of Sanwei Xinan, stated at the "Core" series of product conferences that "'"' "company with core technology 'is the original intention of Sanwei Xinan. Large cryptic hardcore technology. "

Change the import situation of dependence, the release of the XS100 password security chip may be just a small step on the road of success. At the moment when competition is increasing, if San Weixin wants to keep his original intention, there can be many of them.

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