Tongtech(300379)2024-04-29 13:57Domestic Middleware Market Growth - The domestic middleware market share is expected to continue growing, with foreign brands' market share declining year by year[4] - The application of domestic middleware is expanding, with increasing adoption in government, finance, and telecom sectors, while energy, transportation, healthcare, and education sectors present significant future market potential[28] - In 2023, the middleware market in China remained stable, with IBM and Oracle leading but losing market share, while domestic middleware vendors are gaining traction, especially in government and financial sectors[121] - The company's middleware products, under the TONG series, are widely used across various industries, serving over 10,000 enterprise users, maintaining a leading position in the domestic middleware market[132] - The company's middleware products are recognized as the top domestic vendor in the Chinese middleware market, with significant market share in government, finance, and telecommunications sectors[138] Company's Middleware Product Development - The company has collaborated with over ten provincial and municipal IT application innovation alliances and completed 14 middleware certification training sessions[15] - The company has expanded its middleware product portfolio, including application server, message, data cache, and load balancing middleware, catering to a broader range of financial institutions[3] - The company has adapted its middleware products to emerging technologies such as IoT, AI, and big models, expanding its product categories[12] - The company has reclassified its middleware product line into standard middleware and data middleware, with the latter supporting high-quality data supply and efficient circulation[41] - The company's middleware products have been upgraded to support cloud computing environments, enhancing data middleware capabilities and adding new cloud computing middleware categories[45] - The company's security middleware product, TongWeb-T, is the first domestically developed trusted middleware, significantly improving IT system security[46] - The company's middleware management platform, TongMMP, provides full lifecycle monitoring and management capabilities for middleware products, including automated deployment and upgrade[47] - Domestic middleware products in the telecommunications industry have passed major telecom operators' tests and are available on public and private cloud platforms, with cloud-native versions developed to adapt to cloud-native architectures[75] - The company's middleware products are widely used in core systems like billing and customer service in the telecommunications industry, with provincial branches exploring other middleware categories[75] - The company donated a middleware product to the openEuler community of the Open Atom Open Source Foundation, becoming the first professional middleware manufacturer to do so[160] - The company's TongWeb application server middleware passed the information security certification by the China Cybersecurity Review Technology and Certification Center (CCRC)[176] Cybersecurity Industry Growth - The cybersecurity industry is expected to grow, driven by emerging technologies like AI, machine learning, and zero-trust security, with more supportive policies anticipated[26] - The cybersecurity market is expanding due to the increasing complexity and diversity of threats, driven by the rapid development of IoT, industrial internet, vehicle networking, 5G, AI, and cloud computing technologies[70] - The cybersecurity industry in China is facing both opportunities and challenges, with growth driven by digital economy factors and emerging technologies like generative AI, quantum security, and cloud-native security[77] - The number of companies engaged in cybersecurity business in China reached 3984 by the first half of 2023, a 22.4% year-on-year increase, with service-oriented companies growing by 32.5%[82] Company's Cybersecurity Products and Solutions - The company has accumulated extensive experience in network security event analysis, warning, and handling, forming diversified solutions for various scenarios[38] - The company has focused on "internet content security monitoring" and "telecom network fraud governance" for over a decade, leveraging multimodal models and superior sample data[38] - The company's data security monitoring DPI products are widely used in operator IDCs and dedicated line exits, with real-time data flow security risk detection[52] - The company's data security products achieve a personal information recognition accuracy rate of ≥90% and a text, office software/file, compressed file, and image restoration recognition rate of ≥95%[52] - The company's VPN protocol parsing recognition rate is ≥60%, and industrial control protocol parsing recognition rate is ≥90%[52] - The company's network and information security sector focuses on building a new generation of three-dimensional, deep defense systems, leveraging AI technology and industry models[48] - The company has developed industrial sensitive data detection products, which have been validated and deployed on-site, providing effective protection for industrial internet data security[53] - The core product "Content Risk Control System" focuses on identifying content security risks in communication networks, leveraging proprietary content recognition technology and machine learning capabilities[53] - The "Anti-Telecom Network Fraud Governance System" adopts a data-driven approach to combat telecom network fraud, offering a comprehensive and practical governance framework[53] - The "Network Deep Synthesis Content Monitoring System" provides full coverage of deep synthesis content monitoring, utilizing DPI and crawler technologies for data collection and analysis[53] - The "Zero Trust" product establishes a new security access control model based on continuous trust evaluation and dynamic access control, catering to cloud-based and remote work scenarios[53] - The "Comprehensive Intelligent Audit Platform" collects and analyzes log and traffic data from various network devices, servers, and databases to monitor sensitive data access[53] - The company's security operation management products integrate services like security operation support, security capability integration, self-service security management, and centralized risk supervision to enhance enterprise security operations[72] - The "Cloud Trace Online" platform offers SaaS cloud security assessment, data protection, and transmission security, featuring 8 major tools for comprehensive security evaluation and protection[72] - Security Orchestration Automation and Response (SOAR) breaks down silos, forms standardized security components, and provides security services through business orchestration[92] - API Security Management System identifies API vulnerabilities and attack behaviors, addressing five major API security risks and four management challenges[92] Company's Data Integration and Management Products - The company's "TongETL" data integration tool is widely used in government, transportation, military, and large enterprises for data integration and resource utilization[57] - The "TongCDC" product captures and processes incremental data changes in real-time, providing efficient data synchronization and exchange services[59] - The "TongDXP" data exchange platform supports cross-department, cross-region, and cross-level data exchange scenarios, offering comprehensive lifecycle management[59] - The "TongGW" API gateway software provides high-performance, high-availability, and high-security API management services, facilitating enterprise API economy[59] - Data Asset Management Product intelligently identifies and classifies massive data, supports distributed deployment, and provides foundational support for data classification and protection[92] - Agile Data Integration Platform provides lightweight and rapid integration of data, services, and messages, enabling seamless connection of internal and external applications and data[89] - Data Full Link Monitoring Product covers core business systems, data platforms, and key analysis applications, ensuring stable and efficient data operation throughout the lifecycle[89] Company's Emergency and Safety Products - The Chinese emergency industry market size is projected to reach 1.82 trillion yuan by 2025[24] - The company's emergency safety products are sold through both integrators and direct sales, targeting government and large enterprise clients, with a focus on digital transformation in government and urban management[125] - The company has established a comprehensive product system for emergency and urban safety, focusing on monitoring, early warning, and analysis capabilities[150] - The company's core products include a new-generation social security prevention and control platform, which enhances intelligent perception, three-dimensional prevention, rapid response, and precise strike capabilities[98] - The company has developed a drone intelligent control platform that integrates AI, big data, IoT, and mobile internet technologies to standardize and informatize drone control operations[98] - The company collaborates with academic institutions like the Southern Emergency Research Institute and Beijing Normal University to develop urban safety risk monitoring and early warning platforms, focusing on scenarios like gas explosions and urban waterlogging[98] - The company's safety production direction includes products for hazardous chemical management, closed-loop management, and environmental protection, with pilot projects in provinces like Liaoning, Guangxi, and Shandong[98] - The company's natural disaster prevention direction utilizes IoT, big data, AI, and remote sensing technologies to analyze and predict risks, integrating real-time monitoring data with various observation data[98] Company's Digital Transformation and Innovation - The company is leveraging AI, cloud computing, and big data to help industries undergo digital transformation, focusing on asset digitization, operational digitization, and decision-making digitization[84] - The company is actively involved in the digital transformation of government and enterprises, leveraging cloud computing and AI technologies to enhance product capabilities and market competitiveness[128] - The company's network security solutions focus on operational efficiency and customer experience, integrating advanced technologies to provide effective and user-friendly security products[134] - The company has developed advanced public safety and intelligent hardware control technologies, supporting national low-altitude economic development and drone control services[139] - The company has completed compatibility adaptation with the Ascend MindSpore AI framework, advancing AI content monitoring and generative AI (AIGC) applications[155] - The company has achieved breakthroughs in data trusted sharing technology through collaboration with the Chinese Academy of Sciences[155] - The company has developed a series of standardized tools, including AutoML, AI Agent+LLM, and intelligent decision-making, to enhance data security and AI capabilities[143] Company's Financial Performance - The company's revenue for 2023 was 556.7939 million yuan, a year-on-year decrease of 29.62%, with a net loss attributable to shareholders of 672.7762 million yuan[168] - The traditional core business of basic software achieved revenue of 276.9253 million yuan, a year-on-year increase of 16.96%, accounting for 49.74% of total revenue[173] - The gross profit margin of the basic software business further increased to 96.59%, driving the overall gross profit margin of the company[173] - The company's revenue in the September quarter reached a record 20.72 billion, a 12% increase year-over-year[110] - The company's operating cash flow for the quarter was 19.6 billion, a 26% increase year-over-year[110] - The company's installed base of active devices reached a new all-time high across all major product categories[110] - The company's board of directors declared a cash dividend of 85.5 billion and $89.5 billion[110] - The company plans to continue investing in research and development, with a focus on new technologies and products[110] - The company is exploring opportunities for market expansion and potential mergers and acquisitions[110] Company's Sales and Service Model - The company's sales model for network security products primarily targets major telecom operators like China Mobile, China Telecom, and China Unicom, as well as government and industry clients, mainly through direct sales and bidding processes[107] - The company's middleware sales are conducted through both direct sales and channel partnerships, targeting major clients in the financial and telecom sectors, as well as central and local government agencies[113] - The company's direct sales model involves a professional sales team focusing on key markets and customer needs, with a significant portion of sales coming from direct engagement with clients[116] - The company offers two types of services: product after-sales support and customized software development, with the latter tailored to meet specific customer requirements[117][118] - The company provides comprehensive after-sales services, including phone support, installation guidance, fault diagnosis, quarterly visits, and product patch upgrades, ensuring customer satisfaction and product reliability[126] Company's Industry Recognition and Achievements - The company has obtained 805 software copyrights, 130 invention patents, and 84 trademarks, enhancing its product innovation capabilities[141] - The company has deployed service outlets in 30 provincial regions across the country, ensuring localized and efficient customer service[158] - The company has collaborated with over 20 provincial-level innovation alliances and bases in the field of information technology innovation[143] - The company has participated in the formulation and release of 3 national standards and 6 industry standards, with 4 more industry standards under review[144] - The company has been authorized as a training base for industrial and information technology talent, supporting middleware-related education and research[157] - The company completed compatibility certification with over 5,000 upstream and downstream products by the end of 2023, a year-on-year increase of 124.6%[160] - The company's DPI traffic collection platform V2.0 completed and passed mutual compatibility testing and full-stack performance optimization testing certification with Huawei's Kunpeng920[162] - The company was awarded the "Middleware User Satisfaction First" award for the 14th time[171] - The company was recognized as a "2022 Beijing Software Core Competitiveness Enterprise (Innovative)" and "2022 Beijing Software Core Competitiveness Enterprise (Growth)"[176] - The company's solutions were selected as outstanding solutions in the second phase of the financial information innovation ecosystem laboratory of the People's Bank of China[176] National Strategy and Policy Support - The national strategy emphasizes the integration of advanced technologies like cloud computing, big data, AI, and IoT in military applications, highlighting the importance of domestic middleware in defense[34] - The Chinese government has introduced multiple policies to support the development of the software and IT industry, including the "Digital China" strategy and the "High-Quality Development Action Plan for Computing Infrastructure"[8]