Qin Yan, chairman of Dingyang Science and Technology: We have a strong engineer culture

At 8 am on most working days, Qin Yan will appear on time in Antongda Industrial Park in Baoan District, Shenzhen, earlier than most employees. "Many times the security guard is here, and I am the second." He said.

Dingyang Technology, which was listed on the Science and Technology Board last December, has rented the factory and office buildings of this industrial park for more than ten years, and gradually expanded from a small area to 6 floors. The company's decoration is simple and simple, but the business is not simple. This is a national specialized "little giant" company.

As the founder and chairman of Dingyang Technology, Qin Yan often crosses the time difference at 8 o'clock in the morning and evening and meets European and American employees and customers. Now, for more than half a year after the market, he is also used to a new job -the reception agency for investigation. 98 in April and 156 in May, this is the number of investment institutions in Qin Yan in the two months. At most, he received 7 online and offline surveys. He once talked about sore throat and could not make a sound.

Dingyang Technology is the first company listed in A shares to measure the instrument industry in GM, and it is also a representative of the domestic road under the monopoly of foreign giants. With the scarcity of themes and the domestic instead of the domestic instead, Dingyang Technology has attracted the attention of many investors, and Qin Yan is also adapting to this attention.

On the third anniversary of the opening of the science and technology board, Qin Yan accepted an exclusive interview with the reporter of the Daily Economic News. In his opinion, Dingyang Technology is a group of engineers serving another group of engineers. Starting from the vision of "allowing each electronic engineer to have a professional digital oscilloscope", Dingyang Technology began the road of science and technology innovation, and there were twists and turns in the middle. There are still many challenges in the future, but Qin Yan is full of confidence.

Qin Yan interviewee confessed

I wrote 210,000 lines of code in two and a half years

During the development of electronic products, the weak electrical signal cannot be seen, and the oscilloscope can draw the electrical signal diagram to help engineers or R & D personnel understand the fluctuations of the signal voltage value. abnormal. Therefore, oscilloscope is called the "eyes" of electronic engineers.

More than 2000 years ago, in the early 2000s, the global oscilloscope market shifted from analog oscilloscope to digital oscilloscope. The cheapest digital oscilloscope of foreign brands also cost more than 10,000 yuan, which is often unbearable by ordinary companies.

"Is it possible to develop a domestic digital oscilloscope and invest in the market at a cheaper price?" Qin Yan saw the opportunity in the middle. Subsequently, Qin Yan and his classmate Shao Haitao at the University of Electronic Science and Technology began a business trip in a set of commercial and residential rooms in Baishizhou, Shenzhen. In order to develop the first digital oscilloscope, they spent all their savings at that time, but the progress was still less than expected. It was planned for half a year, and it took two and a half years. It was not until 2005 that the first prototype was completed.

In the past two and a half years, Qin Yan wrote about 210,000 lines of C language code, while Shao Haitao completed the design work such as all hardware schemes, PCB (printed circuit board). Since 2004, Zhao Yafeng, who was born in control engineering and has many years of hardware engineers, has begun to write FPGA (programming logic door array) code in the form of consultants. By 2008, Zhao Yafeng also officially joined Dingyang Technology.

In the following years, this digital oscilloscope was gradually mass -produced, and the ODM (original design manufacturer) model was used at the price of half of the imported oscilloscope at that time to meet the market's expectations of high cost performance and quickly opened the market. In 2007, Dingyang Technology officially established a company from a grassroots studio, and gradually shifted from ODM manufacturers to the establishment of "SIGLENT Dingyang" its own brand, allowing the company's business to continue to grow and grow.

From 2012 to 2014, in order to promote the company's brand and expand global channels, Qin Yan had to run abroad almost every other month to visit local dealers, with footprints in Europe, North America, and Australia. What impressed Qin Yan was that he had only spent about 10 days and ran five or six countries in Europe. In Istanbul, Turkey, he also dragged a severe cold and fever body to meet with customers. The busy schedule and the great work intensity made him 10 pounds lighter at that time.

Recruiting scientific research talents does not spare no effort and costs at the expense of cost

In early July this year, Dingyang Technology ushered in a new group of school enrollment, most of which were R & D positions. On the day when the reporter's visit to the "Daily Economic News", more than 40 new employees were conducting training training, and the company was lively.

As the head of the company, Qin Yan deeply realized that in a technology -intensive industry, the company does not need any heavy assets. Scientific research talents are the company's most valuable assets. "We have spared no effort and cost in the recruitment of personnel, especially the recruitment of R & D personnel, but we are still saving other unnecessary expenses, spending expenses," he said.

Data show that in 2021, Dingyang Science and Technology R & D investment was 38.29 million yuan, an increase of 32.63%over the same period last year, accounting for 12.60%of operating income.

"During the IPO roadshow, our core technicians have been in the shortest time for more than 8 years. They can stay in the company for so long, which have a close relationship with our company's engineer culture." Qin Yan said Essence

This is first because the company's management itself is technology. The reporter noticed that Qin Yan, Shao Haitao, and Zhao Yafeng, the first science and engineering men who had buried the first digital oscilloscope in R & D company, now become Dingyang "BIG Three" (three giants) in the mouth of employees. A unified active person is the company's actual controller. Today, the division of labor of the three founders is very clear. Qin Yan is responsible for the overall marketing and the company's overall strategy. Although it is in charge of marketing, Qin Yan's positioning of the company's sales staff is still an engineer.

"Our sales staff are engineers who graduate from electronics, communication, and automation related majors, and science -class engineers. They need to understand technology to introduce our products to our customers when selling products. Current test needs. "Qin Yan introduced.

In addition, from the perspective of employee composition, the company's employees have four % of R & D personnel. As of the end of 2021, a total of 118 company R & D personnel increased by 31.11%year -on -year, and the R & D team has grown further.

Qin Yan believes that the engineer culture from top to bottom allows the company to know how to motivate engineers and retain engineers. Before listing, Dingyang Technology took the lead in implementing a multi -round equity incentive plan in the industry to bind the personal interests of employees with the company's interests. Not long ago, Dingyang Technology announced the latest round of equity incentives. The number of restricted shares planned was 749,400 shares. In addition to the three founders, the incentive object also included 59 technical (business) backbone personnel.

According to Qin Yan, with the implementation of this equity incentive plan, the equity incentive object basically covers most of the Dingyang science and technology employees who do not include first -tier production staff. Equity incentive coverage is widely covered and rare in listed companies.

Qin Yan said: "Many of our employees are now shareholders of the company. This also conforms to a concept of my early, that is, developing employees into a company partner, so that employees do their jobs than doing their own things. Practicing is good for the company's development. "

Copy systemic strategies in response to "Black Swan" adopt systemic strategy

Taking the digital oscilloscope as the breakthrough, for more than ten years, Dingyang Technology has gradually expanded the product to the main product of the four general electronic testing instruments of digital oscilloscope, signal generator, spectrum analyzer, and vector network analyzer. At present, Dingyang Technology has accumulated tens of thousands of enterprises, universities and research institutions such as more than 80 countries and regions around the world. Well -known end -known company customers include Apple, Cisco, DJI, Intel, Google, BYD, etc. Application covers industries such as communication, semiconductors, automotive electronics, medical electronics, consumer electronics, education and research, government units and other industries.

Qin Yan believes that although GM's testing instruments do the business of To B, its business model is similar to To C consumer goods. "The technical threshold, brand threshold, and channel thresholds in this industry are very high. Our downstream customers are distributed in all walks of life, countries and regions. Customers will mainly buy you because of your brand, your product quality, and your sales channels. Products, but the vast majority of terminal customers will not come to the company, they are in the long -term, in a corner of the earth. "

With the strengthening of R & D strength and the rich product line, the scale and profitability of Dingyang Technology gradually grow. From 2017 to 2020, the compound annual growth rate of Dingyang Technology's operating income reached 21.77%, and the compound annual growth rate of net profit reached 39.75%. The latest annual report shows that in 2021, Dingyang Technology achieved operating income of 304 million yuan, an increase of 37.60%year -on -year; net profit attributable to mothers was 810.585 million yuan, a year -on -year increase of 50.92%.

However, compared to the growth rate of the past double digits, in the first quarter of this year, the growth rate of Dingyang Technology has significantly slowed. In the first quarter of 2022, the company's operating income and net profit attributable to the mother only increased by 3.96%and 6.59%, respectively.

The company pointed out in the first quarter report of 2022 that the tight supply of some chips used in low -end products used in the first quarter caused a proliferation period, so the growth rate of operating income (3.96%) was lower than the increase in order (36%).

Regarding the strategy of responding to the shortage of the chip, Dingyang Technology pointed out in response to investors' questions that the sudden approach of some chips is close to the state of production, which cannot be paid, or the delivery period is not expected. Some domestic devices with relatively good delivery periods are used to replace it to solve long -term delivery problems; some chips can be bought from market traders. These measures will greatly improve the later delivery situation.

"This year's" Black Swan "is indeed more. In the first quarter, it was relatively obvious, and it encountered the Shenzhen epidemic, Russia and Ukraine conflict, and long -term control of Shanghai, which more or less affected our business this year. "Qin Yan said," As we use some systematic methods to deal with, the shortage of chip shortage has been eased after May. In the second quarter, more shipments were shipped in the first quarter. Big improvement. "

According to the company, if the implementation of the strategy is better, the overall gross profit margin in the second and third quarters will decline slightly, but sales revenue and pure profits will increase significantly.

Domestic chemical road resistance and long need to break through the technical bottleneck

Data in Dingyang Technology's prospectus quoted Technavio showed that in 2019, the market size of the global general electronic test and measurement industry was US $ 6.118 billion (about RMB 41 billion); by 2024, the market size will reach US $ 7.768 billion (about approximately about approximately In line with RMB 52 billion), the average annual compound growth rate will remain at 4.89%. The data also shows that the industry's first echelon is mainly European and American companies such as Tike, Lico, Rhodes and Schwartz. Although it is a representative company of China's GM's electronic testing industry, Dingyang Technology's global market share is still not more than 1%. Specifically, the prospectus shows that in 2019, Dingyang Technology's digital oscilloscope has a share of 0.87%in the global market, the market share of the signal generator is 0.52%, and the market rate of the spectrum and network analyzer is only 0.14 %, The company's main products in the global market are relatively low.

Qin Yan also frankly said to reporters: "General electronic testing and measurement instrument, the total market for the world, and more than 90%of them belong to a few European and American giants. From the perspective of our domestic manufacturers, it needs to break through the new technical bottleneck and launch a higher. Grade products continue to enhance brand awareness and improve sales channels, and gradually enhance their market share. "

"Daily Economic News" reporter noticed that the development level of high -end electronic measuring instruments, including general electronic testing and measurement instruments, has become one of the national science and technology levels, comprehensive national strength and international competitiveness. This is also one of the industries that need to be promoted in my country. At the moment when the international trade environment is unstable, the wave of "domestic replacement" has risen, and the demand for localization of key equipment and instruments has become increasingly strong. The development of domestic general electronic testing and measuring instruments has been driven by dual -driven policy and market.

The performance growth rate of Dingyang Technology also confirms this. As a representative of domestic manufacturers, Dingyang Technology's revenue growth (income in 2021 increased by 37.60%year -on -year) was significantly higher than the global market growth rate (the compound annual growth rate was 4.89%). Qin Yan believes that this is the result of the "cost -effectiveness" strategy that the company has adhered to since its establishment. It can gradually replace European and American brands in the product grade that has been covered in the domestic market.

"The company's existing products have similar or better performance indicators of the same grade products as foreign superior companies, and the price is more than 30%lower than that of European and American head brands. For some customers, they still buy it. "Qin Yan said.

However, at present, domestic manufacturers can replace European and American giants' shares are still concentrated at low -end. For the research and development of high -end products, especially high -bandwidth and high -frequency products, domestic enterprises also need long -term technical accumulation.

Qin Yan also said: "Market share, brand, channels, product grades, etc., we all have a certain gap with European and American giants, but there is a gap to have motivation, which also shows that our next development space is still very large. It is necessary to overcome some new RF microwave -related modules, circuits, algorithms, protocols and other technologies. Every time it overcomes one -time technical difficulties, launch some products that fill the domestic gap, for us, to obtain new fuels in the Blue Sea market. "

He mentioned that from 2017 to 2021, the company's high -end products accounted for from 2%to 11%, and the process of high -end products was accelerating.

For the future strategy, Qin Yan finally described to reporters: "In the next 3 to 5 years, we will continue to focus on the industry, continue to focus on the high -end development of the four main products, and go to higher bandwidth and frequency to advance to advance. ; We must also enrich their own product lines and increase their family members; at the same time, increase investment in brand building and channel construction, and start around the industry benchmarking customers in the downstream customer group. "

Daily Economic News

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