With the change of the times and the popularization of smart devices, many companies in the industry are seeking transformation to create better results, and Hanwang Technology is no exception. Initially, Hanwang Technology started out with stylus pens and tablets. After the development of informatization and the entry of smart devices such as computers and mobile phones into thousands of households, Hanwang Technology chose to transform, but judging from the results, its transformation path was not smooth.
Revenue exceeded 1.6 billion, but net profit fell by nearly half
Recently, Hanwang Technology submitted its report card for 2021.
Its financial report data showed that its revenue for the whole year of 2021 was 1.613 billion yuan, an increase of 3.74% compared with the same period last year; its net profit attributable to the listed company was 54 million yuan, a year-on-year decrease of 47.98%.
Regarding the decline in profits, Hanwang Technology's answer is consistent with that of many big sellers: Affected by the COVID-19 pandemic, the company faces multiple risks such as rising raw material prices, warehousing, and exchange rate fluctuations, which have affected the company's profits. This situation can be demonstrated from many aspects.
From the perspective of revenue structure, the revenue of Hanwang Technology's main products and main market regions has declined. In terms of products, pen intelligent interaction accounted for the largest revenue of 1.098 billion yuan, accounting for 68.06%, compared with 1.112 billion yuan in the previous year, a decline of 1.22% ; in terms of regions, the overseas market accounted for the largest proportion of revenue of 906 million yuan, and the proportion decreased from 62.30% in the previous year to 56.14% in 2021.
As profits declined, Hanwang Technology's stock price fell, which also made many people in the industry sigh. Since December 2020, Hanwang Technology's stock price has been in a state of big decline and small rise. From 30.10 yuan per share in December 2020, it has fallen to 14.18 yuan per share at the close of April 14. The extent of its floating loss can be imagined, and employee stock ownership has also been affected.
As a pioneer in the field of artificial intelligence, Hanwang Technology was founded in 1998. It has four major business segments: text big data, pen intelligent interaction, face and biometric recognition, and AI smart terminals. Its digital painting, capacitive pen and other products are mainly sold to more than 100 countries around the world including the United States, France, Japan, etc. through multiple mainstream online platforms such as Amazon, eBay, Walmart and offline distribution.
Recently, Hanwang Technology released an announcement showing that it is facing a major lawsuit. During the period from June to September 2021, Hanwang Rongbi signed a relevant agreement with the plaintiff to agree on the purchase of related products, but in December 2021, Hanwang Rongbi informed the plaintiff that the purchase project was invalid due to commercial reasons. However, the plaintiff believed that it had invested corresponding human, material and financial resources in the agreement, and required Hanwang Rongbi to bear joint and several liability for compensation and pay the plaintiff 10.356 million yuan in compensation .
Although Hanwang Technology suffered multiple impacts, it did not cut its investment in research and development. It not only invested huge sums of money to support product development, but also increased the number of research and development personnel.
According to its financial report, Hanwang Technology's R&D expenses in 2021 were 182 million yuan, an increase of 27.08% compared with the same period in 2020 , and its R&D personnel also increased by 19.16% compared with the same period last year. In addition to meeting the upgrade and maintenance of existing products, its R&D investment is also investing in the layout and development of new areas.
Planning ahead for new areas may be Hanwang Technology's clearest and most advanced understanding of this era. In the early years, when the paper era was transformed into the information era, Hanwang Technology was already seeking transformation.
Hanwang Technology's transformation journey
There is no industry that has a permanent bonus period. Even banks and Moutai have tried to transform. Some industry leaders have successfully achieved large-scale transformation, such as the transformation of suits into power batteries and the transformation of cigarette box paper into battery separators.
Hanwang Technology also realized this early and embarked on the road of transformation. Looking back at Hanwang Technology's transformation efforts over the years, it can be described as an "inspirational legend."
For Hanwang Technology, input devices including tablets and styluses are its specialty and once met the needs of some people. However, these products are only products that some consumers use to enter the technological era. With the advent of the era of computers and mobile phones for all, input auxiliary devices are gradually being neglected in the market.
The e-reader was the strategic product that Hanwang Technology aimed at transforming. Considering the market demand at the time, the direction Hanwang Technology chose was correct, but unexpectedly, Hanwang Technology, which had just begun to try to transform, encountered strong competitors - Apple and Amazon .
But whether in terms of its own strength or the market it faces, Hanwang Technology cannot be compared with Apple and Amazon.
Due to various factors, Hanwang Technology's sales were hit, which was reflected in the middle of 2010, and its performance declined sharply. At that time, the reasons for Hanwang Technology's performance decline included fierce competition from similar products and lack of core competitiveness .
Back then, Hanwang Technology was able to successfully occupy a place in the market not by "originality" but by "being the first". Although it launched its products earlier than other domestic companies, Hong Shibin, vice chairman of the China Household Appliances Marketing Committee, pointed out that as far as this product was concerned, Hanwang Technology was just a simple product processing manufacturer and did not have the power to define and innovate products, and lacked core competitiveness.
After that, in order to solve this dilemma, Hanwang Technology also took a series of measures such as price reduction, adjustment of product structure, and replacement , but it still failed to effectively save the declining performance.
After this "crisis", Hanwang Technology began to focus on e-book content service providers. However, some industry insiders commented on this move at the time, "It has once again entered a new field that it is not good at and has many industry fences."
After that, Hanwang Technology tried to transform into various fields such as air purifiers and face recognition equipment . Fortunately, Hanwang Technology finally ushered in spring on the road of transformation, with the explosion of two products: one is a handwriting screen for painting enthusiasts or illustrators, and the other is a stylus for financial institutions.
Hanwang Technology's product sales have ushered in a turning point, but combined with the financial report data in recent years, Hanwang Technology's transformation does not seem to be a real success. It can be seen from the financial report that Hanwang Technology still faces certain obstacles and fluctuations in new product development, profits and capital chain .
Today, although the ever-changing international situation has a significant impact on the company's business, its determination to transform remains.
According to reports, Hanwang Technology recently stated in an institutional survey that the company has cooperated with more than 30 mainstream automobile brands in the world for many years, relying on its leading handwriting input method, handwriting input technology and product service capabilities. Its main products are standardized and customized motorcycle input method solutions including handwriting recognition and pinyin , and settlement is made through the shipment volume of related models.
Some industry insiders believe that the next 5 to 10 years will be the period of realization of the artificial intelligence industry, and many companies will face more opportunities. As a technology company in the field of artificial intelligence, Hanwang Technology said that in the future it will work hard in technology, product development, marketing , etc. to maintain its leading position, seize the opportunities of the times, and promote the company's development in this industry. Hanwang Technology annual report Transformation |
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