The Era Of Software Defined Automobile Is Coming

On August 10, the GEM Listing Committee of Shenzhen stock exchange held the 46th review meeting in 2021, deliberating and approving the IPO application of Wuhan Guangting Information Technology Co., Ltd. (hereinafter referred to as "Guangting information"). Wuhan listed companies add another recruit.

According to public information, Guangting information was established on January 17, 2011, jointly funded by Luo Yuejun, Zhu dunyu and Wang Junde, with 90%, 5% and 5% shares respectively. In 2015, after a series of capital operation, Zhu Dun Yu's brother Zhu dunyao became the largest shareholder of the company.

This IPO, Guangting information plans to raise 387 million yuan. The raised funds are mainly used for the construction project of automobile electronic basic software platform based on domain controller, the construction project of intelligent network connected vehicle test and simulation platform, and the construction project of intelligent network connected automobile software research and development center.

From 2018 to 2020, the operating revenue of optical court information will be 243 million yuan, 305 million yuan and 334 million yuan respectively, and the net profit attributable to parent company will be 69.81 million yuan, 58.71 million yuan and 73.01 million yuan respectively.

The actual controller is a doctoral advisor

Thanks to Wuhan's rich university resources, in recent years, under the stimulation of Hubei Province's "listed company multiplication plan", more and more entrepreneurs with college teacher background have emerged. The successful listing of Guangting information may mean that the technology-based companies with rich scientific research ability, backed by colleges and universities, will be favored by the capital market.

Before the IPO, Zhu dunyao directly held 56.0082% of the company's shares. With the indirect shareholding, Zhu dunyao controlled 69.324% of the voting rights of the company, and was the controlling shareholder and actual controller of the company. SAIC (Changzhou) innovation and development investment fund Co., Ltd. (hereinafter referred to as "SAIC venture capital") holds 9.5513%, which is the second largest shareholder of the company.

It is worth noting that Zhu dunyao is not only a part-time professor in the satellite navigation and positioning technology research center of Wuhan University, but also a doctoral supervisor and professor of Wuhan University of technology.

At present, in the company's nine board members, except one has a bachelor's degree, the rest are master's or doctor's degree. The company's senior management personnel are basically graduates or above.

In terms of technical talents, Guangting information said: "with the development of automobile to intellectualization, networking and electrification, the company will vigorously introduce high-end talents with rich practical experience and leading consciousness in cutting-edge technology research, products and strategic planning, and establish research teams through the combination of introduction and self-cultivation Make breakthroughs in key technical fields such as big data to complement the company's talent shortage and meet the needs of large-scale development of the company. "

The industrial status is gradually rising

With the development of the times, the era of software defined vehicle (SDV) is approaching.

The prominent feature of "software defined vehicle" is that the hardware is highly centralized and standardized. On this basis, the software can be decoupled from the hardware, and various emerging software technologies can be applied in the automobile.

Since 2021, many science and technology enterprises have begun to enter the ranks of car manufacturing. Since April, oppo has begun to prepare for car manufacturing. 360 has entered the automotive industry through the strategic leading investment of Nezha car manufacturing round D financing. Huawei is also cooperating with a number of automobile enterprises. Fu Qiang, an analyst at Ping An Securities, said that the entry of technology enterprises into the car ecology will accelerate the process of automobile intelligence, and greatly enhance the importance of software, especially the operating system, in car ecology.

At present, the mainstream automotive electronic software service providers include elektrobit, Zhongke Chuangda, Neusoft group, etc. Compared with other software customization markets, the market structure of automotive electronic software is relatively scattered. According to the forecast of Tianfeng Securities Research Institute, the scale of automobile software customization market in 2018 is about 6.540 billion yuan, and the global automobile software customization market space is expected to reach 27.542 billion yuan in 2023, with an average annual compound growth rate of 30%.

According to the prospectus, the IPO of Guangting information plans to raise 387 million yuan, and will also invest in the construction of automobile electronic basic software platform based on domain controller, intelligent networked vehicle test and simulation platform, intelligent network connected automobile software research and development center, etc.

Ren Lang, an analyst of open source securities, said that in the era of software defined automobile, the position of Guangting information industry has been significantly improved, and the path of role transformation of tier2-tier1-tier0.5 (supplier level) has become increasingly clear. With the increasing complexity of on-board software development, the company's industrial status is gradually changing from Tier 2 to Tier 1. It can work with hardware suppliers to provide competitive product solutions for vehicle manufacturers, or directly connect with vehicle manufacturers to provide powerful software development support.

In Ren Lang's opinion, in the future, as tier0.5, Guangting information will deeply participate in the planning, design, development and evaluation of automotive electronic software in the whole process, assist automobile manufacturers to establish software R & D and service system based on new electronic and electrical architecture and service-oriented architecture (SOA), and build the core competitiveness of vehicle manufacturers' software.

However, affected by the epidemic, China's car production and sales fell last year. In 2020, China's automobile production and sales volume will be 25.225 million and 25.31 million respectively, with a year-on-year decrease of 2.0% and 1.9%. The automotive electronic software related business mainly engaged in by atrium information is closely related to the launch of new models or new functions. Although the related business is less affected by automobile sales in the short term, if the automobile sales industry continues to be depressed, the automobile manufacturers and auto parts suppliers may postpone the R & D plan of new models or new functions, which may have an adverse impact on the company's business performance.

It has sold the control right of map business by surprise

In the process of listing, it is a pity that Guangting information transferred the control right of Wuhan zhonghaiting Data Technology Co., Ltd. (hereinafter referred to as "zhonghaiting").

Zhonghaiting is a wholly-owned subsidiary invested and established by zhonghaiting in September 2016. On December 21, 2017, SAIC venture capital, the second largest shareholder, obtained the control right of zhonghaiting. This transaction also brought about 65.5821 million yuan of non operating income for Guangting information in 2018.

Guangting information said in the company's conference paper that zhonghaiting continued to make losses from 2017 to 2019, and turned losses into profits in 2020 with a profit of 427600 yuan. Because the high-precision map business is still in the R & D investment period, large-scale commercial application has not yet started, and the industry value and profitability have not been reflected in the financial data. As a supplier of high-precision maps, zhonghaiting, relying on the controlling shareholder SAIC Group, has established cooperative relations with SAIC, BAIC, Chang'an and other car manufacturers through multiple vehicle inspection, and is actively promoting the cooperation with Japanese automobile brands.

According to the data of prospective research institute, the market space of China's high-precision map will reach 12 billion yuan in 2020, which is expected to reach 60 billion yuan in 2025, with an annual compound growth rate of 37.9%.

It is worth noting that zhonghaiting has the rare grade a navigation electronic map production qualification in the market. Although China's high-precision map market space is broad, not everyone can get a share. Considering the safety and other aspects, the state has issued relevant regulations: only the units with grade a surveying and mapping qualification of "navigation electronic map production" can carry out the collection and use of high-precision maps. The introduction of the policy further improves the entry threshold of the industry.

From 2001, when the former State Bureau of Surveying and mapping approved the qualification of Siwei tuxin, to the end of 2020, only 22 cartographers, it enterprises and institutions had the qualification. Among them, Gaode, siweituxin and yitutong have the ability to release high-precision maps first by virtue of their absolute leading edge in the market share of pre installed maps.

However, the current automatic driving car has not yet achieved mass production, and high-precision map business enterprises generally suffer losses or meager profits. At that time, market analysis said that Guangting information transfer. Zhonghaiting thought that the industry was still in development, although the relevant asset valuation was high, but the investment was also high. Therefore, this qualification could be used as one of the basic reasons for the cooperation between SAIC Group and enterprises and promote the development of subsidiary business.

However, there is no doubt that the market still gives high valuation to the high-precision map business, which also means that the light court information has lost the dominant power of this business with high growth in the future.