Hanwang Technology: Investigated our company on April 15

On April 18, 2022, Hanwang Technology (002362) issued an announcement that it would investigate our company on April 15, 2022.

The main contents of this survey are:

Q: The company's painting screen business has declined in 2021, how is the market space for painting screens at home and abroad, and is there a limited market space?

A: Hello, the intelligent interactive business of Pen will achieve revenue of 1.098 billion yuan in 2021, maintaining a stable high base. In 2021, in the direction of digital painting, the company broke the foreign monopoly, cut into the professional market, expanded and issued, and formed a series of product matrix with high, medium and low brand positioning of "Xencelabs", "XP-PEN" and "UGEE Youji", and the products were sold to more than 100 countries and regions, and promoted and sold on mainstream online platforms and offline channels at home and abroad. In 2021, the company will reach more target groups and integrate into the user ecological chain in various ways through digital marketing and alliance marketing. At this time, XP-PEN's brand renewal online conference is being released on the XP-PEN video number, welcome to pay more attention. Under the background of the diversified development of human-computer interaction demand, especially the development of digital creative industry, art education and electronic signature industry, the demand for digital painting intelligent interactive products in the inner pen has increased, and the market size of digital painting products is in the tens of billions.

Q: In the text big data business, what are the company's main competitors? What are the company's differentiating advantages over its competitors?

A: A series of leading technologies such as handwriting recognition technology, which has won the first prize of the National Science and Technology Progress Award, OCR recognition of the second prize of the National Science and Technology Progress Award, and NLP natural language processing in the industry, have become the leading enterprises in the field of text big data, and the company's humanistic digital business such as Manchu ancient books, Tibetan ancient books, Republic of China documents, and medical literature has long been in the leading position in the industry; the company relies on OCR recognition, free handwritten document recognition, complex report recognition, natural language processing NLP, RPA robot process automation and other technologies to provide services to customers in the way of "technology + product + service", the formation of "technology platform + industry track" business model, in various industries in the track to find digital, intelligent landing scenarios, and in the national key strategic cities to set up a subsidiary company to build a large marketing network, is currently widely used in the judiciary, archives, medical, finance, digital humanities, education and many other fields, through embedded business services + a variety of AI robots, Help government enterprises and institutions to digitalize business process reengineering and intelligent level, and improve the efficiency and service level of public services. The replicable product system enables the company to quickly promote in the industry with intelligent and digital needs, and in 2021, the company will expand the traffic management, immigration, urban construction, talent and other industries. The industry is still in the early stages of development, the current industry presents a small and scattered status quo, the company is currently in a leading position in the industry, there is no obvious all-round competitors. The company will take advantage of the combination of "technology + product + service" to further increase market expansion and further enhance market share.

Q: The strength of technology companies must have research and development close to market demand. We hope that the company can set up a department dedicated to market research and innovative mergers and acquisitions, which will be responsible for Mr. Liu Qiutong, to improve the external image of Hanwang.

A: Thank you for your suggestion, Mr. Liu Qiutong, as a director of the company, a special assistant to the chairman of the board of directors and a young person after the 90s, has made the company's management more balanced and maintained its sensitivity to the young generation of the market, and he is indeed responsible for part of the market research and innovative mergers and acquisitions.

Q: What is the R&D investment plan for this year? Are there any new products to bring to market?

A: In 2022, the company will continue to increase investment in research and development in the text big data business, promote the company's breakthrough and upgrading of cognitive intelligence technologies such as free handwritten document recognition, complex report recognition, natural language processing NLP, and improve the product system of various business lines; The three brands will carry out the promotion speed of new products in the market segment; seize the new opportunities brought by localization to the electronic signature industry, promote the growth of paperless signature products in the fields of public security and justice, party and government organs, and increase investment in consumer electronics penmanship, both in technology and product maturity; in the face and biometric recognition business, the face recognition, palmprint recognition, behavior recognition, intelligent video analysis, cross-lens recognition and other technologies will be upgraded and developed. Maintain the company's technological leadership in computer vision technology; integrate a variety of recognition technology and video analysis technology, and give play to the company's competitive advantage of combining soft and hard. AI terminal products, on the one hand, we will launch a new handwritten electric paper, a new generation of handwritten electronic paper through addition and subtraction, to bring users closer to the natural paper and pen record of the experience, to meet the needs of mobile lightweight office, portable note, digital reading, in order to build it into the fourth mainstream electronic products after mobile phones / computers / pads; on the other hand, we will focus on the direction of great entertainment, big health and research and development of products and projects, launching a bionic flapper with camera, Ai smart gun, the first domestic Koch sound sphygmomanometer and dozens of new products. Thank you for your interest.

Q: How big is the impact of the epidemic at home and abroad on Hanwang's production and sales? Within the foreseeable range, will Hanwang's revenue decline in 22 years? We investors are willing to work with Hanwang to overcome difficulties, will Hanwang continue to expand its business to find mergers and acquisitions opportunities?

A: Normalized COVID-19 epidemic prevention and control may cause certain restrictions or impacts on the company's market sales, marketing promotion, manufacturing, logistics and on-site delivery of industry business. However, the current epidemic situation is not as severe as the situation at the beginning of the outbreak in 2020, and it is still under control. The company will continue to use the combination of endogenous and epitaxial ways to develop the main business, and around the upstream and downstream of the industrial chain to expand the business, thank you for your support.

Q: What are the downstream customers of the company's paperless signing business besides financial institutions and tax authorities? What is the percentage of sales of these customers? What application scenarios will be expanded in the future? Downstream demand situation also please introduce it, thank you!

A: Hello, in addition to the use of manual windows in banks, tax authorities, telecom operators and other industries, the company's electronic signature equipment is also integrated in self-service equipment such as VTM machines. Government affairs hall and other new landing scenarios demand growth is also faster, in addition to the traditional hardware signing equipment, the company is also seizing the localization of the electronic signature industry brought by the new opportunities, strengthen the research and development of supporting application software, the product is also upgraded from a single signature functional product to an integrated product, focusing on cultivating public security, judicial market, paperless judicial interrogation system in Liaoning, Sichuan, Jiangxi, Jiangsu, Anhui, Guangdong, Xinjiang and other places have more customers, the current China Mobile cloud shelf, New products such as intelligent self-service terminals are commercialized in more than 20 provinces and cities across the country. Under the tide of localization and digital signature development, paperless signing will have greater market opportunities. Thank you for your interest.

Q: Is it reasonable that the company's inventory has surged from 400 million in the previous year to 547 million in 2021, and the company has barely made provision for inventory decline? What kind of products are in stock? Electronic product update iteration is fast, how is the company ready to digest inventory?

A: The main reason for the increase in inventory in 2021 is that the supply chain is tight due to the global epidemic, and the company has increased the strategic stocking of some products, and the second reason is that the cross-border business transportation cycle has been lengthened, and the company's business stocking has increased. According to the company's four major business segments, the inventory is distributed in the four modules of pen intelligent interaction business, face and biometric recognition business, intelligent terminal business, and text big data business, of which the total inventory of digital painting business in pen intelligent interaction business is 356 million yuan, accounting for 65% of the overall inventory, and the overall library age is shorter and the turnover is faster. The Company conducts an inventory decline test at the end of each reporting period. The current provision for inventory price declines is reasonable. At the same time, in the daily operation, the company pays great attention to the risks on the inventory, and establishes relevant internal control mechanisms and reward and punishment measures to match the scale of inventory and the scale of operation, and at the same time, product iteration can be timely inventory cleaning.

Q: How will your company perform in the first quarter of 2022, and will there be an increase in profit year-on-year?

A: At present, the foreign economic and political situation is turbulent, the domestic side, in the context of expected weakening, supply shock, demand contraction, the company's management united to lead the majority of employees to strive to develop new products, open up new channels, develop new customers, and strive to promote the development of business, the situation in the first quarter, please pay attention to the relevant announcements issued by the company at that time.

Q: Mr. Liu, enterprises pursue market capitalization maximization, what kind of market capitalization do you want to develop Hanwang Technology into?

A: The company is an innovative enterprise of artificial intelligence, artificial intelligence is the most influential cutting-edge technology in the next 20 years, more and more related application areas, the company hopes to seize the relevant opportunities, the technical reserves and products applied to the digital, intelligent scene, become a world-class leader in the field, expect the company to grow in revenue and market at the same time, the company's market value can match it.

Q: How does the current overseas epidemic situation and international situation affect the company's overseas business?

A: The epidemic and the international situation have a certain impact on the company's overseas business: First, overseas transportation is tight, freight is rising, logistics costs are rising, although the company has digested some of the impact by planning shipping routes, preparing goods in advance, etc., but the logistics tension has greatly extended the time of goods in transit, resulting in an increase in inventory, which has an impact on sales and sales strategy formulation; second, the supply and demand of raw materials such as upstream chips are tight, although the company adopts methods such as advance stocking to alleviate the production pressure caused by raw materials and chip tensions. However, it still brings a lot of pressure to the research and development and listing of the company's new products. At the same time, due to the tight supply of raw materials and chips, the upstream price continues to rise, resulting in an increase in the cost of some of the company's products; third, a large part of the company's income comes from overseas sales, when the overseas epidemic is serious, the catalytic effect of the epidemic stimulates the rapid transformation of overseas shopping methods, the explosive growth of overseas online sales, after the epidemic is controlled, the trend of offline to online transfer slows down, and the demand for the online education market has also slowed down; fourth, the exchange rate fluctuations, the cost-effective advantage of overseas sales products weakens. To this end, the company has consolidated its market position through product promotion and increased brand investment.

Q: What is the opportunity for the company to enter the field of bionic flapping wing aircraft? How can its market performance be expected this year?

A: Hello, although at this stage Hanwang's bionic flapping wing flying machine is only a smart toy and STEAM model aircraft teaching aids, the breakthrough of bionic flapping wing technology is of great significance, not only for the unmanned aerial vehicle family to increase the commercial flapping wing flying machine category, but also will usher in the flapping wing flying machine from toy-level popularization to high-end industry commercial applications, at present, our bionic flapping wing bird in Douyin live broadcast and other mainstream e-commerce channels at home and abroad sales are good. In addition, the bionic flapping wing flying machine is just a small "egg" along the way in the process of Hanwang Technology's technical reserve for the next ten years. Han wang in the field of robotics in the next big game. Bionic robot is the product of the combination of bionics and the application needs of the robot field, the bionic robot is not for the bionic and bionic, compared with the real organism, the bionic robot not only has the physiological characteristics of the organism, but also can accurately complete the specified task according to the human setting.

Q: At present, the epidemic situation in the country is rampant, and what impact does poor logistics in many places have on the company's operation and generation? Will it have a big impact on the company's first quarter results? When is the quarterly report expected to be disclosed?

A: Normalized COVID-19 epidemic prevention and control may cause certain restrictions or impacts on the company's customer visits, market sales, marketing promotion, manufacturing, logistics, and on-site delivery of industry business. The company has scheduled to disclose a quarterly report on April 30, 2022, please pay attention, thank you.

Q: Did executive Xu Dongjian know in advance of the company's financial details for the first quarter and make a decision?

A: Xu Dongjian, a shareholder of the company, makes a reduction arrangement according to his own needs, and according to the relevant rules, the pre-disclosure reduction plan can only be reduced within 15 trading days from the date of announcement of the reduction plan, and the window period cannot be reduced. At present, it is in the window period of the company's first quarterly report disclosure, and its implementation can only be implemented after the disclosure of the first quarterly report. Thank you.

Q: Is there any expectation for the company's future growth rate? What preparations does the company have?

A: At present, the foreign economic and political situation is turbulent, the domestic side, in the context of expected weakening, supply shock, demand contraction, the company's management unites and leads the majority of employees to strive to develop new products, open up new channels, develop new customers, and strive to promote the development of business: first, the company will increase R & D investment, further develop new products in line with market demand; second, the company will further increase the construction of market and channel networks, increase the promotion of customers; third, The company will further increase its communication with investors this year; fourth, the company will implement a special employee stock ownership plan in 2021 to repurchase the company's shares from the secondary market; in addition, the company will further explore more measures to enhance the value of the company. Thank you.

Q: I would like to ask you what the company's product planning in the face recognition business this year is? Are you planning to add an epidemic prevention element?

A: In terms of technology research and development, the company's face recognition, palmprint recognition, behavior recognition, intelligent video analysis, cross-lens recognition and other technologies are upgraded and developed to maintain the company's technological leading edge in computer vision technology; integrate a variety of recognition technologies and video analysis technologies, give play to the company's competitive advantage of combining soft and hard, tap more potential landing scenarios in the field of pan-security, and adopt more effective market strategies to seize the market. The company's personal card verification terminal integrates health code, temperature measurement, personal card comparison, and ID card recognition, which is special for epidemic prevention in Hebei Province

Q: iFLYTEK has set up new companies and launched new businesses, and your business will only continue to upgrade on the old products, how do you think you can lead the company back to the top?

A: Hello, as the forerunner of artificial intelligence, the company has also formulated a future development plan on the basis of the existing foundation. The company's development strategy in the next 5 years is to "rely on technology, refined products, expand the market" as the core concept, to "technology platform + industry track" and TOC intelligent terminal products business model, to promote the company's development and growth in the wave of social digitalization and intelligence. The company's development strategy in various business-related fields is as follows: Artificial Intelligence: Strengthen the accumulation of technology in the fields of computer vision and video structuring, and become a leader in the field of biometrics and intelligent video analysis. Big data related: seize the opportunity of the era of digital economy development, continue to maintain and improve investment in artificial intelligence and big data technology, rely on the accumulation of technology in image recognition, natural language processing NLP, etc., take industry digitalization and industry robots as the development goal, empower China's digital and intelligent society, and become a leading enterprise of text big data cognitive intelligence. Intelligent human-computer interaction: to become a leading enterprise in the field of digital painting and paperless, and further become a leading enterprise in the field of human-computer interaction. Intelligent terminal: Continue to deepen the field of handwritten electric paper, bionic robots, big health and other fields, and become a leading enterprise in this field. Bionic robots are one of the ultimate forms of artificial intelligence, in order to achieve this long-term goal, the company will gradually accumulate relevant technologies and productize on the basis of existing ones. In addition, the company plans to hold a spring new product series launch conference from May 10, 2022, including a new generation of handwritten electric paper, a large bionic flapping wing flying machine equipped with cameras and GPS, etc., and the company will strive to increase the sales revenue of new products and increase the proportion of new products in revenue. Stay tuned.

Q: Hanwang Dingzeng has lost more than 100 million yuan in funds, have the parties involved in the fixed increase communicated with the company, and will they continue to support Hanwang's future research and development work?

A: At present, the company has maintained good communication with the investors participating in the fixed increase, and the main investors continue to hold the company's shares and rank among the top ten shareholders of the company. The company is a high-tech enterprise in the field of artificial intelligence, and the proportion of R&D investment has been at a high level in the industry for many years, and the company will also maintain a certain degree of cutting-edge technology research and development investment.

Q: Management expenses account for a large part of the company's costs, will the company optimize the personnel structure in the future?

A: In 2021, in order to meet the needs of the development of industry trends, the company's operation and management scale increased, and the expansion of the layout scope led to an increase in corresponding expenditures year-on-year. Through budget management, the company strengthens expense control, and is also committed to the improvement of sales and gross profit. In terms of personnel structure, the company gives priority to the R&D and sales family.

Q: What is the company's production and operation goal for 22 years? How do leaders see which business this year's performance growth point comes from?

A: The company will operate in four major business segments in 2022. First, text big data business: continue to increase investment, promote the company's breakthrough and upgrading of cognitive intelligence technologies such as free handwriting document recognition, complex report recognition, natural language processing NLP, and improve the product system of each business line, and build a national marketing system supported by molecular companies and regional centers in the country. Political and legal field: Expand and upgrade products from electronic file generation centers to smart files, further deepen the business management process, and at the same time open up political and legal markets such as procuratorates, public security bureaus, and arbitration on the basis of the existing court market, and accelerate "going out" with the SPC, the Supreme People's Procuratorate, and the Beijing Municipal High Court as benchmark projects to expand business to all provinces and cities across the country. Further excavate the market opportunities in the field of archives and digital humanities, combine smart archive products with various industries, and successively launch industry products such as smart libraries, smart talents, smart urban construction, smart migration, and smart traffic management, and expand the markets of libraries, talents, urban construction, immigration, traffic management and other industries nationwide. Second, pen intelligent interaction: to explore the existing pen touch interaction technology and AR, VR and meta-universe of the new intelligent interaction technology, around the "UGEE Youji", "XP-PEN", "xencelabs" three brands to carry out market segmentation at home and abroad online and offline marketing promotion work, and accelerate the "xencelabs" professional product line of new product launch speed, and continuously improve brand identity and market share. Continue to expand cooperation with major consumer electronics manufacturers in capacitive pens, and promote C-terminal capacitive pens to domestic and overseas markets. Seize the new opportunities brought about by localization into the electronic signature industry, and promote the growth of paperless signature products in the fields of public security and justice, party and government organs. Third, face and biometric recognition business: technology research and development, face recognition, palmprint recognition, behavior recognition, intelligent video analysis, cross-lens recognition and other technologies to upgrade research and development, to maintain the company's leading edge in computer vision technology; the integration of a variety of recognition technology and video analysis technology, give play to the company's soft and hard combination of competitive advantages, tap more potential landing scenarios in the field of pan-security, and take a more effective market strategy to seize the market. AI terminal products: According to the characteristics of user portraits, accelerate the launch and upgrading of new products. Based on the company's core technical advantages and refined products, give full play to the advantages of the "Hanwang" brand barrier, and improve marketing capabilities and effects, promote the market volume of AI terminal products such as AI handwritten electric paper, flapping wing aircraft, and big health, and strive for a single product explosion.

Q: Tell us about the marketing of professional digital painting products last year and this year's promotion plan.

A: The company's professional-level digital graphics products were launched in early 2021, focusing on high-end professionals, and in 2021, they obtained bulk orders from north American professional art colleges, reflecting the recognition of the company's products by professionals. The company actively cooperates with domestic and foreign media professional colleges, top painting artists in the industry, CG Special Committee of China Film Art Society and other head circles, and expands the reach of the crowd, enhances brand influence and consolidates the professional brand image by implanting the top competitions of global art majors.

Q: What are the highlights of the company's innovative research and development of the first Koch sphygmomanometer? There are many sphygmomanometers on the market, how will the company break through? What is the layout plan in the field of big health this year?

A: Hello, the Köhl tone sphygmomanometer measurement principle adopts the gold standard of non-invasive blood pressure measurement, which is suitable for a larger population than the mainstream measurement principle (oscilloscope method) on the market, and the measurement results are more accurate. On the one hand, we build cooperative relations with medical institutions, relying on medical institutions to promote the Sphygmomanometer of the Koch method of sound; on the other hand, we tap the deep needs of users in the service of hypertension and chronic disease management, and serve users with the help of "APP + cloud platform + medical institutions". Thank you for your interest.

Q: Your company's stock price has been chattering in the past year, can the chairman have measures to stabilize the stock price?

A: First, the company will increase R & D investment and further develop new products that meet market demand; second, the company will further increase the construction of market and channel networks to increase the promotion of customers; third, the company will further increase communication with investors this year; fourth, the company implemented a special employee stock ownership plan in 2021 to repurchase the company's shares from the secondary market; in addition, the company will further explore more measures to enhance the value of the company, thank you.

Q: Is the company's digital drawing board a must for the creation of the metacosm?

A: Hello, the company's electromagnetic pen, capacitive pen technology and related digital painting products can be used as the underlying support technology or tool for virtual scene and virtual character creation. The development of the metaverse will increase the construction demand of virtual scenes, virtual scenes and virtual characters need to be digital scene drawing or modeling, and the company's digital painting products are good digital creative tools, which can be used in animation, games, clothing, architecture and other fields of virtual characters, scene design and production. In addition, the development of the metaverse may bring some new changes and models to the digital economy, and we will also keep up with the times to better meet the needs of new scenarios and fields, thank you.

Q: Now that there are fewer and fewer manual windows in bank branches, will the company's signature board gradually shrink?

A: Hello, in addition to the use of manual windows in banks, telecom operators and other industries, the company's electronic signature equipment is also integrated in self-service equipment such as VTM machines. In addition to the traditional bank, business hall window industry, government hall, paperless office and other new landing scene demand growth is also faster, in addition to the traditional hardware approval equipment, the company is also strengthening the research and development of supporting application software, products are also upgraded from a single signature function products to integrated products, focusing on cultivating public security, judicial market, paperless judicial interrogation system in Liaoning, Sichuan, Jiangxi, Jiangsu, Anhui, Guangdong, Xinjiang and other places have more customers, the current China Mobile cloud shelves, New products such as intelligent self-service terminals are commercialized in more than 20 provinces and cities across the country. Under the tide of localization and the development of digital signatures, paperless signatures have greater market opportunities. Thank you.

Q: Can you introduce the gross profit margin of each product of the company? What are your plans for gross margins this year?

A: For the gross profit margin of the company's four business segments, please refer to the company's annual report. The company's products and services are based on several core technologies of the company, and there are core competitiveness in the industry, and the gross profit margin level belongs to the leading level of the same industry. In order to improve the market competitiveness of the company's products and services, the company has maintained a high investment in research and development for many years, from the underlying technology to the productization, from the life cycle project to the shelf technology, and will be strategically planned according to the development of the industry. At the same time, in the supply chain management, the company pays attention to the cultivation of core suppliers, and also pays attention to cooperation with small and medium-sized enterprises to ensure the company's advantage in cost.

Q: How does the company's business get involved in the digital economy?

A: The national policy level has given clear support and guidance to the development of the digital economy, such as the "14th Five-Year Plan for the Development of the Digital Economy" issued by the State Council, which has made a series of specific arrangements for the digital economy, pointing out that optimizing and upgrading digital infrastructure, vigorously promoting the digital transformation of the industry, and accelerating the promotion of digital industrialization. The company's technology and products are empowered by digital government and digital economy, and have a wide range of application scenarios in the construction of intelligent and digital society. Relying on OCR recognition, free handwriting document recognition, complex report recognition, natural language processing NLP, RPA robot process automation and other technologies to form a business model of "technology platform + industry track" in the text big data business, the company looks for digital and intelligent landing scenarios in various industry tracks, and sets up subsidiary companies in key strategic cities across the country to build a large marketing network, which is widely used in many fields such as justice, archives, medical treatment, finance, digital humanities, education, etc., through embedded business services + A variety of AI robots help government enterprises and institutions to digitalize business process reengineering and intelligence, and improve the efficiency and service level of public services. The replicable product system enables the company to quickly promote in the industry with intelligent and digital needs, and in 2021, the company will expand the traffic management, immigration, urban construction, talent and other industries. The company will seize the opportunity of digital economy and digital government construction, and use its own technology and products to better empower it.

Q: You can see that the company has many large customers, how does the company use these high-quality key customer resources?

A: The company is a parent-subsidiary management, in the early stage of contact with major customers, in order to more accurately meet the primary needs of customers, mainly by each counterpart subsidiary to carry out product output. After years of operation and relationship maintenance, customer stickiness is further enhanced, we will be timely customer-oriented, the company's other related technologies and product solutions into the key customer system, in-depth mining of customer value, but also for the company's technology to find more landing scenarios.

Q: Can the company's face recognition recognize electronic ID cards?

A: Hello, the company is the earliest in the industry to conduct face recognition algorithm research enterprises, and has the ability to connect with various platforms, the company's PERSONAL CARD comparison technology and products have been supplied to the market in large quantities, and are widely used in important conferences, large-scale events, entrance and exit management and other places. The design of the product scheme of the id verification terminal has included the identification module for physical identity cards and electronic identity cards, and has relevant technical reserves. Hebei Provincial Temperature Measurement and Epidemic Prevention Project puts forward the demand for electronic ID card recognition, and the company provides health code + temperature measurement + electronic ID card + personal ID card comparison products for the project. Thank you.

Q: Does the company have palmprint recognition technology?

A: Biometric recognition technology is an important technical component in the field of artificial intelligence, the company has a variety of technical reserves in this field, palmprint recognition technology is one of the relevant reserve technologies, and has patents, after the technology matures will be timely introduced to the market.

Q: What will be R&D investment in 2021?

A: Hello, the company is a high-tech enterprise in the field of artificial intelligence, with R&D investment accounting for about 10% over the years, which is at a high level in the industry. In 2021, the company invested 220 million yuan in research and development, up 43.44% year-on-year, accounting for 13.77% of revenue.

Q: How is the company's layout in the e-paper market? What do you think are the reasons and difficulties that hinder the mass production and large-scale application of electronic paper? How large is the e-paper industry market expected?

A: In 2009, Hanwang's first electric paper book was listed, and by 2020, with the birth of Hanwang handwritten electric paper, Hanwang has been working hard to make products that directly hit the deep needs of consumers, and from public reading to the layout of smart office handwritten paperless equipment in the workplace. The new generation of handwritten e-paper based on the company's pen intelligent interaction technology and handwriting body recognition core technology brings users a sense of experience closer to natural paper and pencil records, and can transform the handwritten documents formed in the users' daily records into text data that can be saved and intelligently retrieved on multiple platforms. The product is equipped with the company's smart pen with core technology to meet the needs of mobile lightweight office, portable notes, and digital reading, with a view to making it the fourth mainstream electronic product after mobile phones/computers/pads. According to the "Global E-paper Market Analysis Quarterly Report" (GlobalePaperMarketAnalysisQuarterlyReport) released by RUNTO, in 2021, the global e-paper module shipments will be 2. 100 million pieces, an increase of 29.5% compared to 2020. 1%; The end market size of the e-paper market was $11.3 billion, an increase of more than 32.9% compared to 2020. LOTTO predicts that in 2022, global e-paper module shipments will reach 4. 200 million units, an increase of more than 100% year-on-year. By 2025, the overall end market size of e-paper products is expected to reach $72.3 billion, with a compound growth rate of 59%.

Q: The shareholders of other companies increase their shares in the company during the downturn, and the company's executives have repeatedly reduced their holdings at a low level, do you think that a company executive should do something beneficial to the company? And shouldn't the company be treated like a cash machine?

A: The relevant personnel of the company make arrangements for reducing their holdings according to their own needs, and the company respects their legitimate rights and interests, and will also try to do a good job in communication and coordination. Thank you.

Q: As the most important platform for e-commerce, you can see your product sales from Taobao and Jingdong, Hanwang was once the leader of electric paper books, and now the sales volume is very poor, the translation pen is the company's strength, but so the monthly sales of the product are not as good as one-tenth of the sales of translation pens such as iFLYTEK, is this the performance of the company's products?

A: Hello, based on the industry's leading independent core technology, software design and hardware production capacity, the company launched innovative AI intelligent terminals and other new domestic products. While the company continues to do a good job in technology and products, the company will continue to improve its sales capabilities and marketing capacity building. In fact, in recent years, the company has built and improved the construction of domestic and foreign marketing networks, overseas, the company's products through Amazon, eBay and other platforms sold overseas hundreds of countries, domestically, the company attaches importance to the operation and maintenance of online e-commerce, through short videos, self-media drainage, talent unboxing evaluation and other ways to carry out brand and product promotion, self-operated stores and product sales rankings have risen. In the future, the company will continue to accelerate the launch and upgrading of new products according to the characteristics of user portraits. Based on the company's core technical advantages and refined products, give full play to the advantages of the "Hanwang" brand barriers, and enhance marketing capabilities and effects, promote the market volume of AI terminal products such as handwritten electric paper, flapping wing aircraft, and big health, and strive for a single product explosion. Thank you.

Q: Can Hanvon's OCR business grow explosively this year? Can the business development of museums, courts, these places grow by leaps and bounds?

A: The national policy level has given clear support and guidance to the development of the digital economy, such as the "14th Five-Year Plan for the Development of the Digital Economy" issued by the State Council, which has made a series of specific arrangements for the digital economy, pointing out that optimizing and upgrading digital infrastructure, vigorously promoting the digital transformation of the industry, and accelerating the promotion of digital industrialization. The company's technology and products are empowered by digital government and digital economy, and have a wide range of application scenarios in the construction of intelligent and digital society. Relying on OCR recognition, free handwriting document recognition, complex report recognition, natural language processing NLP, RPA robot process automation and other technologies to form a business model of "technology platform + industry track" in the text big data business, the company looks for digital and intelligent landing scenarios in various industry tracks, and sets up subsidiary companies in key strategic cities across the country to build a large marketing network, which is widely used in many fields such as justice, archives, medical treatment, finance, digital humanities, education, etc., through embedded business services + A variety of AI robots help government enterprises and institutions to digitalize business process reengineering and intelligence, and improve the efficiency and service level of public services. The replicable product system enables the company to quickly promote in the industry with intelligent and digital needs, and in 2021, the company will expand the traffic management, immigration, urban construction, talent and other industries. The company has formed exemplary benchmarking projects and high-quality customers in various fields, such as in the judicial field, electronic files synchronously generate related products in the SPC, the Supreme People's Procuratorate landing, in the medical field, Tongren Hospital, Union Hospital, PLA 301 Hospital, West China Hospital, etc. are the company's customers, in the field of digital humanities, the National Library is the company's customers for many years, in the field of wisdom archives, China's first historical archives, China's second historical archives are all company customers. The company will seize the opportunity of digital economy and digital government construction, and use its own technology and products to better empower it.

Q: The company developed the first bird product, and the difference between the competition with DJI drones is reflected?

A: Hello, flapping wing flyer is a drone track other than a quadcopter drone. The breakthrough of bionic flapping wing technology is of great significance, not only adding a commercial flapping wing flying machine category to the unmanned aerial vehicle family, but also ushering in the commercial application of flapping wing flying machine from toy-level popularization to high-end industries.

Q: Is the company's plan to grant a bank credit guarantee of 200 million yuan to the subsidiary in 2022 based on what is the specific business plan of the subsidiary?

A: The company currently implements the parent-subsidiary system of the company structure, in order to encourage each subsidiary to be able to take responsibility independently, in the subsidiary's capital needs, the company prepares a certain line of credit for it. The company's subsidiaries have strict management measures in the use of credit funds, and the utilization rate of the credit line has not been high in recent years, and it has not been used within the scope of the guarantee line in 2021. Thank you.

Q: Hanwang loses more than 15 million yuan in foreign exchange every year, what is the specific reason? Are there any prevention and control measures for this in the future?

A: The company's products are sold to more than 100 countries or regions such as the United States, Germany, Japan, Canada, Australia and other overseas e-commerce platforms, mainly in US dollars, euros, yen, etc., and the company's overseas revenue in the past two years has exceeded 900 million yuan. The products sold by the company on the overseas e-commerce platform are mainly denominated directly in foreign currencies, and the relevant exchange rate changes have been taken into account when pricing, and if there is a substantial appreciation change in the RMB exchange rate in the later stage, the company will adjust the price of the foreign products as appropriate. In addition, the company will choose the opportunity to exchange foreign currency into RMB according to the capital demand and exchange rate.

Q: Is the buyback from the secondary market finished?

A: Hello, the company disclosed the progress announcement of the employee stock ownership plan on April 7, 2022, the actual amount of payment received by the employee stock ownership plan is 568.5959 million yuan, as of now, the company's 2022 employee stock ownership plan securities account has purchased a total of 115,500 shares of the company's shares through the secondary market, and the total transaction amount is 1,826,716.87 yuan (including stamp duty). The company's employee stock ownership plan strictly follows the provisions of the window sensitive period can not buy and sell the company's stock, the employee stock ownership plan shares have not yet been fully purchased, the company will strictly follow the relevant provisions in a timely manner to fulfill the obligation of information disclosure.

Q: What stage has the company's robot development reached, or is it just this gimmick and no substantive research and development at all?

A: Hanvon is a pioneer in the field of artificial intelligence, with industry-leading key technologies in the artificial intelligence industry chain such as text image recognition, natural language processing, biometric recognition, intelligent video analysis, and intelligent human-computer interaction in visual image recognition and human-computer intelligent interaction. The highest state of artificial intelligence is cognitive intelligence, that is, the machine itself can think and understand. As a veteran artificial intelligence enterprise in Zhongguancun, Hanwang Technology is in a leading position in technology in many fields. For example, computer vision, also known as the "eye of the machine", allows robots to obtain the ability to "see", including text image recognition, face and other biometric recognition technologies. Natural language comprehension encompasses both the "brain of the machine" and the "hand of the machine," that is, the ability of the robot to "read" and "write." "On the other hand, Hanwang is studying the application of olfactory recognition technology to allow robots to have olfactory systems, and has achieved preliminary results, in addition to storing key technologies such as muscle control." Therefore, although robot research and development has certain difficulties and a long research and development cycle, it needs innovative companies such as Hanwang to do it.

Q: Does your company pay dividends this year?

A: Due to the company's negative accumulated undistributed profits, it does not yet have the conditions for dividends. The company is currently operating well, the fundamentals are solid, the company will strengthen the exchange with investors in a variety of ways to enhance mutual understanding, better convey the value of the company, thank you for your attention.

Q: The company's drawing board is hardware, how to consider this part of the painting software?

A: Hello, the company's electromagnetic pen, capacitive pen technology and related digital painting products, capacitive pen can be used as the underlying support technology or tool for virtual scene and virtual character creation. The company's products are adapted to Various operating systems such as Windows, IOS, Android, Hongmeng and various mainstream painting design software such as Photoshop and CDR, and the company integrates into the user ecological chain through digital marketing and alliance marketing to reach more consumer groups. The company will also develop a part of the application software to continuously improve product performance and functions, in order to establish a better ecology and bring better experience to users. Thank you.

Q: Is there any update on the litigation between the company and Entropy Technology?

A: Hello, the relevant cases have been accepted, and Entropy Technology has also received the Notice of Civil Case Response and related complaints issued by the Beijing Intellectual Property Court. For the infringement of the company's rights and interests, the company firmly adopts legal means to protect the company's own rights and interests. In the follow-up, the company will fulfill its information disclosure obligations in a timely manner in accordance with relevant regulations. Thank you.

Q: In addition to the digital painting section in the company's pen intelligent interaction business, does other businesses make money?

A: The company's pen intelligent interaction business is subdivided into three parts: digital painting, paperless signing and approval, and capacitive pen. In 2021, in addition to digital painting, the other two parts of the business benefited from the integration of resources and the effectiveness of business promotion, and the overall revenue was growing. Capacitive pen business after the previous benchmark project demonstration and experience accumulation, the new development of ZTE, OPPO and other large customer resources, for consumer electronics factories to provide supporting capacitive pens, and began to test the water Amazon, JD.com, Tmall and other online platforms, while actively developing authorized sales agents; paperless signing business, the current profit is good, in addition to the original customers such as finance, operators, etc., open up more government service windows such as party and government organs landing scenarios, related products to the integration of products upgrade. Under the trend of paperless tide, there will be more market opportunities. Thank you.

Q: How does the company's business in smart cars work?

A: With its leading handwriting input method, handwriting input technology and productization service capabilities, the company has maintained years of cooperation with more than 30 mainstream automobile brands around the world.

Q: How do you work with customers on the corporate text big data side?

A: The text big data business is based on OCR+NLP technology, supplemented by hardware equipment such as scanners and high-speed cameras, and serves customers in judicial, medical, archives, finance and other industries through the model of technology + product + service. Text big data technology after completing data processing, identification, structuring, mining, extraction, comparison, analysis and other actions, combined with NLP natural semantic understanding and other high-level artificial intelligence technology, in the judicial aspect, can be used for legal articles, case data processing, identification, mining, comparison, on this basis to integrate legal articles and cases, case analysis and even auxiliary judgment; in the medical field, can be used for digital processing, identification, comparison, judgment, analysis of medical records, on this basis for auxiliary diagnosis and treatment; in the financial field, It can identify relevant bills and licenses, quickly capture industry news, conduct judgment and analysis, and use it as an intelligent investment advisor; in the field of archives, it can be used for digitized processing, identification, and comparison of documents, excavating new historical clues, establishing a connection between people and events, and enhancing the reuse value of archives. The company provides data services in the form of combining soft and hard, sending people to the field service, and has accumulated a high-quality customer base with high viscosity. In addition, in the field of education, the company's examination paper recognition, formula recognition technology, etc. are widely used in information education and online education. With the maturity of AI technology and the deepening of application, the future of AI text big data is to develop into industry intelligent robots in various industries. At present, the company has formed benchmarking projects and high-quality large customers in various industries, such as in the judicial field, electronic file products have landed in the SPC and the SPP.

Q: Now there are not a few companies with electromagnetic pens, electric paper book companies such as: Aragonite, Xunfei, Palm Reading, Painting Board Companies such as: Gao Man, Painting King, why is the company said to be the world's only two brush touch manufacturers?

A: In terms of wireless passive electromagnetic touch technology, the company is the only two companies in the world with clear intellectual property rights. The company also licenses the technology to the terminal manufacturer through technology licensing.

Q: The company's 2021 annual text big data growth is relatively fast, what are the internal reasons, is it sustainable?

A: The company has been working in the field of text intelligence for many years, breakthrough to solve the technical problems of free handwritten document recognition and complex report recognition in industry applications, and the breakthrough of technology has promoted the substantial progress of digitalization and intelligent construction of industry applications, so that the electronic traditional business archives have changed from image resources to retrievable, applicable formatting and textual resources, and then use NLP technology to achieve semantics and graphs. In addition, the company's application of technical capabilities to improve, can quickly better meet customer needs, diversified technical solutions can be embedded in customer business processes, embedded business services + a variety of AI robots can better meet the needs of customers intelligent, digital, while embedded in business processes products will also enhance customer stickiness, more conducive to the company to tap customer value.

Q: Hanwang's face recognition technology is very powerful, do you have a good plan for face recognition products?

A: The company will upgrade and develop technologies such as face recognition, palmprint recognition, behavior recognition, intelligent video analysis, and cross-lens recognition to maintain the company's technological leadership in computer vision technology; the company will continue to focus on the two areas of identity recognition and intelligent video analysis. In terms of identity recognition, we have noted that this year the government should vigorously promote the implementation of electronic identity cards, before the company's personal identity card verification product design has included electronic identity card identification module, in 2022 the company will combine customer needs, timely corresponding to the actual increase in the identity card verification products in the function module of electronic identity card recognition; at present, in the Hebei Province epidemic prevention special project has received relevant demand, to provide them with health code + temperature measurement + electronic identity card + personal card comparison of comprehensive products to help epidemic prevention. In terms of intelligent video analysis, the company will continue to use leading video structure technology to further excavate complex monitoring scenarios such as high-altitude projectiles, land resources, oil and gas pipelines, and rivers, and provide monitoring and analysis services for local land bureaus, water conservancy bureaus, oil exploration and transportation units. Thank you.

Q: I heard that Hanwang is going to release a new electric paper book in May, is there any difference between it and Huawei's ink level board?

A: Thank you for your attention. This time, the proposed release is a handwritten electric paper, which is a new category, focusing on handwriting and reading functions. Through the investigation of customer use experience, the company found that the capacitive screen + handwriting, in the mobile phone and pad use smoothly, but on the ink screen, the experience is not very good: first of all, the capacitive pen needs to be charged, and the ink screen saves power, can not be charged for a long time; secondly, the ink screen itself does not emit light, similar to paper, is the principle of reflected light, adding a capacitive screen on the ink screen will affect the clarity of the ink screen; again, the combination of the capacitive screen and the pen will also cause the screen to be mistakenly touched, affecting the use experience. Based on the above considerations, we have done some addition and subtraction on the new product, such as removing the capacitive screen and light guide plate, making the electric paper thinner and clearer, and interacting through Hanwang's self-developed wireless passive electromagnetic pen and physical buttons, handwriting is smoother, and the page turning speed is faster. Increase battery capacity to keep the product on standby or for longer. The note-taking software is also more optimized. In short, unlike tablets, it is a professional handwritten note-taking and reading device. Stay tuned and thanks again.

The main business of Hanvon Technology: Engaged in the production of software and hardware products, industry applications, technology authorization and platform services related to the intelligent interaction field with pattern recognition as the core.

Hanwang Technology's 2021 annual report shows that the company's main revenue was 1.613 billion yuan, up 3.74% year-on-year; the net profit attributable to the mother was 54.0949 million yuan, down 47.98% year-on-year; the deduction of non-net profit was 44.7526 million yuan, down 54.81% year-on-year; among them, in the fourth quarter of 2021, the company's single-quarter main revenue was 504 million yuan, down 11.63% year-on-year; the single-quarter net profit attributable to the mother was 14.0633 million yuan, down 58.34% year-on-year. In the single quarter, the non-net profit was 8.3901 million yuan, down 73.6% year-on-year; the debt ratio was 19.6%, the investment income was 26.6655 million yuan, the financial expense was 7.9949 million yuan, and the gross profit margin was 49.38%.

The stock has been rated by 1 agency and 1 by a buy rating in the last 90 days; the average target price for institutions in the past 90 days is 17.38.

Here is detailed profit forecast information:

The Securities Star Valuation Analysis Tool shows that Hanwang Technology (002362) has a good company rating of 2.5 stars, a good price rating of 2 stars, and a comprehensive valuation rating of 2.5 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)

The above content is compiled by Securities Star based on public information, if you have any questions, please contact us.