Dialogue Guo Xinping: Find "China position" in tens of billions of market

At present, the professional market accounted for 80% of the revenue, but Guo Xinping that only good mass market can become a big corporate financial weekly reporter Li Junling/wen August 6, 2011 afternoon, Guo Xinping and Financial weekly reporter for nearly four hours of conversation.　　As the Chairman of the group, Guo Xinping's background is the technical experts and the pragmatic style. But Guo Xinping. Until the end of the interview, Guo Xinping to his own heart said: "Do together think strong this enterprise I have to pursue." I hope that we can develop into a world-class enterprise. Although the gap is large, it is possible to catch up with foreign companies. "17 years of dedicated grinding sword."　　Since 1994, the company since its inception, the group has become the Chinese satellite navigation positioning in the field, across the professional and civil two major types of market leading enterprises.　　When it comes to satellite navigation, the product and the market, and the "position cloud", Guo Xinping is passionate; but when it comes to wealth and stock prices, he is also impressive. Guo Xinping is a man of strong self-control. One of the performances is to go to bed 10 o'clock every night.　　Even in the last year when the public thought of the same day. "Share price and I have little connection" stock prices will return to the rational, this is absolutely the matter. A lot of people may get hurt, but it's not our subjective will. Financial Weekly: From April 2 last year, the company listed to the present, the stock price of a lot of strong changes, listing 3 days breakthrough hundred Yuan. To this day, the outside world uses "the wealth shrinks" to describe you.　　What do you think about this? Guo Xinping: Stock wealth is paper wealth. There may be a big gap between today and tomorrow. I was born in the countryside, from the "Eat not full" of the era came, not much of the feeling of wealth.　　To tell you the truth, I have enough to eat, and then I can do things. It is creating a value. Value and wealth are different things. Some people have a lot of wealth, but they can't bring value to society. We bring value to the society, and get the corresponding return, this should be.　　So, for wealth, I will not pay special attention to it.　　Financial Weekly: Do you usually pay attention to the company's stock price every day? Guo Xinping: I basically don't look at work. Have time to look at, sometimes consecutive days do not look.　　I'm not sensitive to stock prices. In the long run, stock prices are a reflection of a company's value.　　But there are occasional factors in the short term, and the value of the stock is both relevant and not absolute. The company shares the issue price 37 yuan, the stock market opening day is 85 yuan, many of our colleagues are more happy. To tell you the truth, when the gong sounded, I didn't feel it when I saw the opening price of 85 yuan.　　Because I think the stock price and I have little connection, the company is the fundamental to do a good job. Then it rose so high that I felt a little wrong. Because there are some irrational factors. We are mainly industrial. The stock price must return to the rational, this is absolutely the matter.　　Many people may get hurt, but this is not our subjective will. Listing is a good opportunity for business。 But enterprises must be able to "sit down" for the future of the jump development ready. At this time the enterprise to withstand loneliness. Doing business is not for short-term stock price performance.　　Do business for the company's long-term development to do. Share prices should be concerned because there are a lot of investor interests here; But this concern is based on a long-term increase in the competitiveness of enterprises.　　Short-term care is meaningless. The share price must be related to the enterprise's own value. We're basically not very concerned about stock prices.　　Do your own thing well, and everything else is natural.　　Location Service market capacity is large in products, should be from the development of hardware manufacturing and sales to higher value-added application solutions such as software development of the financial Weekly: How do you describe the core competitiveness of the public think strong? Guo Xinping: It can be described as: it is China's space information industry technology reserves the most complete, the most advanced company, is the space information industry technology, models and standards to upgrade the promotion and guide.　　Company based on many years of experience, such as the accumulation of technology to position cloud technology as the support, from the cloud to the end, to provide customers with the wonderful experience of China location. Financial Weekly: August 2010, the "Location cloud" related technology and platform. In the July 2011, the "China position" service platform was launched, which realized the position cloud from the cloud to the end.　　What is the position of "position cloud" in the development strategy of the public thought and strong?　　Guo Xinping: Position Cloud, based on the development process of the 17 and the accumulation of enterprises, with the "consolidation of professional market, the development of mass market, leading the position of service market," the established strategy is closely related. In order to make great progress in satellite navigation and positioning industry, we must change the mode of development.　　In the product, should be from the development of hardware manufacturing and sales to higher value-added application solutions and other software development.　　All the people think strong to improve the overall competitiveness of the "cloud + End" business model. "Position Cloud" is "cloud + End". "Cloud" is the "China position" platform, is based on cloud computing technology position Service backend platform, responsible for intelligent thinking and intelligent decision-making like the brain; "+" or "Minisun", is a software middleware residing in the terminal, responsible for intelligent transmission and intelligence feedback like the nervous system; "End" that is "positioning terminal", is a variety of intelligent products with positioning capabilities, including consumer electronics and professional equipment, responsible for wisdom perception and intelligence execution like sensory and extremities.　　The "Location Cloud" system is the application of cloud computing to the navigation industry. Location Cloud has taken the lead in digital cities, Mobile asset Management, Beidou applications, high-precision location services, L-ERP (location-based Enterprise Resource management), vehicle networking, ship networking and other fields have a typical application, for the Government, enterprises and individual users to bring more intelligent government decision-making, business operations and personal life.　　We hope to join all the location providers and the public to explore this mysterious and vast location of the universe.　　Financial Weekly: "Location Cloud" platform construction is an open system? Guo Xinping: In "position cloud" construction, all participatingare collaborators. All think strong insist platform open, enterprises build "position cloud" attitude.　　"Location Cloud" covers a huge market, the industry to work together to develop, share and popularize, only when the market is complete, this industry can truly mature.　　Satellite navigation and positioning industry to achieve great development, in research and development, enterprises should be from the closed to open, cooperation. The implementation path of "position cloud" is carried out according to the logic of "state support--the core enterprise gathers construction--the broader industry enterprise participates in the whole society popularization application".　　"Location Cloud" pointed to the satellite navigation as a new industry into the national Twelve-Five planning, including the many enterprises, such as the company has been several departments of the country's industrial policy support.　　Financial Weekly: How to estimate the size or capacity of the location service market? Guo Xinping: The next 5-10 years is the key period of the strategic transition of the position service industry in China, which will form a huge mass market, professional market and Security Service market.　　The whole industry will also experience the rapid development process from small to large, from weak to strong. The two major markets of mobile communication and automobile industry are the main objects of navigation and position service industry. Only mobile phones and cars, there will be more than 600 million users are potential navigation and location applications of the service object.　　The advent of the Internet of things will also increase the number of 1 billion-meter network terminals, the market demand is difficult to estimate. The mass market still has a chance. If you do a good job including the professional and the public position service market, it is possible to become a big corporate financial weekly: Some investors believe that the value of the combination of thinking strong, its products in the professional market performance is the key.　　What kind of expansion strategy will be practiced in the professional market and the mass market in the future? Guo Xinping: 2007 company established strategy has not changed: to strengthen the professional market, the development of the mass market, leading the position service market. The company's operating income in the professional market accounts for 80% of total income, and profits accounted for more. Therefore, we will continue to focus on the professional market, do deep and strong.　　This is the foundation of the company's development.　　The professional market to do a good job, all think strong is an excellent medium and small companies; if the mass market is well done, it is likely to be a medium-sized company; If you do a good job, including professional and public position service market, it is possible to become a big company. We think the mass market still has a chance. Users have a great demand. Although there are "cottage" and low prices and other irregular phenomenon, but with the improvement of people's living standards and quality requirements of the improvement, the mass market is still a chance.　　Companies in the mass market to introduce some of the old products profit margins are relatively low, but we will also do innovative products and innovative services.　　Companies in the mass market targeted customer base is high-end, such as some car navigator users, they pursue quality of life and quality of life.　　Financial Weekly: How to look at the mass market on the emergence of a large number of "cottage machine" phenomenon? Guo Xinping: "Cottage machine" so that more people know the navigation products, but "cottage machine" did not regulateFan, not easy to use, we will not say that the brand is not good, but that this category of products is not good to use. This will adversely affect the development of the industry.　　In addition, the production of Shanzhai Navigator do not pay voice broadcast, handwriting input, map and other costs, often also evade taxes, so, the cost of Shanzhai machine is very low, and the cost of the normal machine is not an order of magnitude.　　Financial Weekly: How to deal with the "cottage" reality? Guo Xinping: Because the "cottage" phenomenon is serious, many companies have withdrawn from the mass market because they cannot make money. My view is "The remnant is king". We want to be the ones that are left.　　In tens of billions of of the market size, the public think strong hope to find a place.　　Financial Weekly: In the development of navigation products, there is no consideration and automobile manufacturers to cooperate? Guo Xinping: The company and the automobile manufacturer's cooperation has been trying. But car manufacturers have a lot of uncertainty. Generally speaking, the car electronic equipment of the original car is developed along with the automobile. The development cycle of general automobile products is years. Electronic products have been out of date for such a long time.　　We are also considering how to effectively match the development cycle of electronic products and automobiles.　　Financial Weekly: In product sales, how to deal with the relationship between direct marketing and channels? Guo Xinping: Different product lines, the business model is not the same. In the professional market, direct sales accounted for 30% to 40%, channels accounted for 60% to 70%. In the future we will further reduce the proportion of direct sales, so the channel will be very happy; in the mass market, 100% is done through channels.　　In the expansion of brand channels, the company has established a national key provincial capital cities near thousands of terminal channels.　　Financial Weekly: What are the new plans for product development this year? Guo Xinping: In addition to the existing Beijing, Shanghai, Xi ' an three research and development centers, together with the public is also planning to set up in Shenzhen, personal consumer products based product research and Development Center, because Shenzhen is the center of Consumer electronics Industry, the future Shanghai Research and Development Center will be completed in the field of professional products, automotive related products and China position platform related products　　Xi ' An research and development center mainly undertakes the research and development of GIS data collection and measurement products, and the main bearing system products in Beijing center, including Beidou second-generation, chip, algorithm and other basic research.　　Financial Weekly: All the people think strong recently announced the equity incentive plan, what kind of consideration?　　Guo Xinping: The incentive program involved the company directors, senior management, middle management, the core technology (business) staff and the Board of directors that the need to motivate the total of 98 people, accounting for the current total of 577 employees of the 16.98%.　　The company plans to grant the incentive to the target stock options of 2.9937 million, accounting for the current total of the 144 million shares of the public thought of the 2.08%. With the development of the public thought strong, the company's demand for talent has gradually increased. The incentive plan is to fully mobilize the company's top management and staff enthusiasm, effectively put the interests of shareholders, the company's interests and the operator's personal interests together, so that all partiesPay close attention to the company's long-term development.