Guoteng Electronic Security Surveillance Service

Recently, Guoteng Electronics (300101, SZ), which is known as the "Beidou Navigation First Share," announced that it plans to use over-raised funds of 10 million yuan to establish "Chengdu Guoyi Electronic Technology Co., Ltd." (tentative name). For the purpose of the establishment, Guoteng Electronics stated that “National related ministries and commissions and local governments have issued a series of security monitoring and control industry development policies, and video images and optoelectronic technology products are more widely used in urban construction. China’s safe cities, smart cities and other fields have There is a huge market demand."

According to public information, Guoteng Electronics is not a long time in these fields. Since 2011, Guoteng Electronics has successively launched a series of security monitoring and system integration products. In 2013, company security monitoring product revenue accounted for 12.3% of total revenue. However, revenue growth in this area has increased rapidly from 14.11 million yuan in 2011 to 32.24 million yuan in 2013.

Guoteng Electronic annual report shows that in 2013 the company achieved revenue of 261 million yuan, an increase of 28.92% year-on-year; net profit loss of 153.115 million yuan. The company said that during the reporting period, it increased its investment in technology research and development and marketing of related core products, resulting in a significant increase in expenses compared to the same period of the previous year, and the first annual loss since its listing.

People in the industry believe that the intensified competition between GPS (Global Positioning System) and BeiDou has led to a decline in the profitability of the BeiDou navigation industry. This is a major reason why the related company's profits are unlikely to rise. Guoteng electronic overweight security business, or to reduce navigation product profitability pressure.