Han Wang Technology: The new main business profit is still unknown

Absrtact: If not 2012 through the sale of high-quality assets, "Han Wang Zhi-tong" to make a profit, Hanwang technology may have to face the "by St" the status of the current financial weekly reporter Huang/Beijing reported the first half of this year, Hanwang technology (002362.SZ) continued to lose 33.86 million, as its forecast development

If not 2012 through the sale of high-quality assets, "Han Wang Zhi-tong" to make a loss, the Han Wang technology may have to face the "St" Status quo

Financial Weekly reporter Huang/Beijing report

In the first half of this year, Han Wang Technology (002362.SZ) continued to lose 33.86 million, just as its forecast trajectory. Liu, the actual controller of the March 2010-listed "High-tech company", has no idea of today's predicament. At the most glorious time, the market value of Hanwang reached the highest of 17.5 billion yuan after two months of listing.

The electric paper book once was the trump card business of the Han Wang Technology, once for its contribution 3/4 income, now but like "chicken ribs". Hanwang technology does not want to give up the electric paper book business, but its development focus more to the character recognition, face recognition and other fields.

At the end of 2012, the book business accounted for 27.41% of the revenue, although in the Han Wang Technology 5 business still accounted for the heaviest, but compared with 2011, has slipped 77.01%, other businesses failed to bring the performance of the Han King to reverse.

The big shareholder is 600 million

July 27, the Han Wang science and Technology released half year performance letters, the first half of 2013, the loss expanded to 33.8636 million yuan, down 82.36% year-on-year.

The loss of the back, but also reflects the embarrassing situation of the Han King sales blocked, the first half of the total operating income of 140 million yuan, and in the same period in 2012, the figure of 195 million yuan, sales fell 28.29% year-on-year.

The reality is much worse than that of Hanwang. In April 2013, Hanwang disclosed a quarterly report predicting that the net profit attributable to the shareholders of the listed company in 2013 1-June was 26 million yuan-16 million yuan.

By the evening of July 12, the Han Wang science and technology side will be the first half of the annual performance notice to revise: The company is expected to lose 35 million yuan-27 million yuan. In the last half of the year, the Han Wang technology losses are gradually expanding.

This is the third year of continuous loss of Han Wang's main business. If it is not 2012 through the sale of the loss, the Han Wang technology may have to face the "St" Status quo.

For this loss, Han Wang Science and technology to explain the reasons for: the company optimize the product structure, the market prospects of unknown products to shrink, as well as the sale of Beijing Han Wang Debit Technology Co., Ltd. Equity stripping related business, resulting in the related business income decline;

"After the loss of Hanwang technology, it is the continuation of the paper business pains and other business profits still hard to reach expectations." "An insider in Beijing is worried about the prospect of Hanwang technology," he said.

Because the Han Wang technology has not yet announced semi-annual reports, it is difficult to see its first half of the paper business real sales. August 1, when the financial weekly reporter interviewed the Han Wang Science and Technology Securities Department, it only said "the business of the paper book in accordance with the expected normal progress".

The industry insiders believe that the decline in the business of paper books is still the biggest obstacle to the loss of technology. In a few short years, shipments have plummeted. In 2010, Han Wang's total sales volume of paper books exceeded 1 million units. In 2012, however, the sales of Han Wang's paper books were estimated to be about 100,000 units, which realized operating income of 62.0347 million yuan, a year-on-year decline of 77%. And Han Wang in June this year, the listing of new paper books, Taobao's turnover has less than 500 units.

Han Wang's paper only accounted for the 385 million yuan in 2012 operating income of 18%, 2010, the proportion of 75%, 2009 to 67%. The electric paper book business has become the Han King's "chicken Ribs", its 10.31% gross margin is also a major business in the lowest.

Since 2011, the domestic e-reader market has been battered by the impact of tablet computers and their own single function, sales and prices began to decline. Once in 2010 sales of the Han Wang paper book suffered a cold shoulder, inventory backlog serious, is still in the liquidation of inventory.

Hanwang Securities Department recently to the Financial weekly reporter introduced, the company since 2012 began to clean up the inventory, especially the paper screen inventory. By the end of 2012, the inventory balance of the paper screen was 33.62% lower than at the beginning of the year. As for the first half of 2013, the Chinese king said he would disclose it when it released its 2013.5 annual report.

After years of sluggish performance, but also to reduce the large shareholder frequently. From June to July this year, the third largest shareholder, Shanghai Joint Venture Investment Co., Ltd., through the Shenzhen bulk trading platform has 3 times to reduce the Han Wang technology stocks, a total of 8 million shares, holding the proportion of Han Wang to 4.997%. In 2011, the Shanghai joint venture has repeatedly sold the Han King stock, has been reduced to 28.326 million shares, set now about 600 million yuan.

The weakening of the paper books

The decadent of the electric paper book business is not only the Han Wang technology alone encounters, but the whole industry collective distress.

Beijing One person of this information Technology Co., Ltd. chief operating official ceremony Yong for the future of the paper book is not very optimistic. In his view, the electronic reading market will be more and more big, but the electronic Reader (paper) market is difficult to have further development space.

"The tablet has a strong alternative. "Fang that the more powerful tablets, big-screen mobile phones have greatly impacted the paper market, compressing the latter's market space." But the function of the electric paper book is single, it is difficult to satisfy the user habit. Fang also believes that the current key technology of the paper, such as slow reaction rate, will also slow down its development.

According to Digitimes, an international research firm, Global E-readers sold 11 million units in 2010, to 22.82 million in 2011 and 2012 to 9.82 million. Many people in the industry said that in the ipad as a representative of the tablet computer, such as the impact of the history of the paper book may have been difficult to reverse.

Hanwang technology internal is firmly believe that the book, such as electronic ink screen, will still be users of the electronic reading of the preferred equipment. "Big screen mobile phones, tablets to the user's choice too much, often make people can not calm down to seriously read." ”

Hanwang technology in the face of the main business of electric paper books, after the big face, in 2012 began to reduce the input of paper books. 2011 Han Wang Science and Technology electric paper book operating costs are still 270 million yuan, accounting for its total operating costs of 63.55%; but a year later, the cost of its paper books plummeted to 62.0348 million yuan, accounting for a ratio of 27.41%.

In the industry for the paper book is more with a pessimistic mood, the outside world has even been rumored that the Han Wang technology will give up the electricity paper business.

However, in the first half of 2012 with investors in an online communication, Han Wang Technology chairman Liu claimed that Han Wang will not quit the paper business. He believes that "digital reading represents the future, as long as the insistence, there will be good harvest, we will fight and raise war, long-term adherence." ”

Just, the paper book is no longer the mainstream of Hanwang science and technology, its introduction of the frequency of new electronic paper books are declining. In 2013, Hanwang launched an electronic paper with a front light source only when Amazon's Kindle reader entered the Chinese market in June.

and Hanwang technology, the future of the paper will only do the book business paper books, the introduction of several special products each year, into the "handwriting technology, touch technology, the former light technology" and other advantages of technology.

At the same time, Amazon's Kindle has been successful in foreign markets with a "terminal + content" model that domestic manufacturers want to replicate to China, but the effect is not obvious.

Han Wang, Dangdang, Shanda literature and so on have launched their own paper books and electronic bookstore. Among them, the establishment of the 2008 Han Wang Bookstore is almost the earliest E-book city in China. But all along, Han Wang more attention to hardware research and development, in the content of investment and advantages are limited.

Shanda Literature has the largest original novel Web site, while Dangdang and most of the domestic publishing house relationship familiar, technical background of the Han King in this respect does not have a greater advantage. According to an industry personage, the Han Wang bookstore staff performance assessment more to the number of copyright, so that the bookstore to a certain extent, "there is no quality." The lack of digital copyright protection in China, but also to a certain extent hinder the development of paper books.

Han Wang Science and Technology Securities Department, the Han Wang Bookstore as a content platform, with content provider 28 divided into electronic books sales revenue.

New main business profit still unknown

Too much reliance on a single paper book business, so that the Han Wang technology gradually by the capital market "abandoned." In the past year, no broker has written a research report focusing on Hanwang technology, and its share price has been at a low ebb all year.

Han Wang, who wants to get out of trouble, has to make a transition.

At present, the company focuses on the development of character recognition, face recognition, trajectory input, digital reading, and several other major directions. "The Han Wang Technology securities department to the reporter so described its current main business." This is also the Han King as its current four main business. Once dominated by the electronic paper Book (digital Reading), the status is no longer.

From the cost, 2012, OCR product line (mainly used for word recognition) operating cost of 43.491 million yuan, accounting for the total operating costs of Han Wang 19.22%; the cost of the industry application is 52.3365 million yuan, accounting for 23.12% The cost of the handwritten trajectory product line and portrait recognition business is 38.0528 million yuan, 25.1174 million yuan, respectively, 16.81%, 11.1%.

In 2011, Hanwang technology on the OCR product line, industry applications and portrait recognition, such as several major business investment, has not so much attention, that year the business accounted for the proportion of the cost of Han Wang under 10%, only the handwritten trajectory of the product line accounted for more than 13% of the cost.

At present, the industry application products has become the King of technology revenue contribution to the largest business, 2012 its operating income of 90.8126 million yuan, accounting for total revenue than 23.57%;OCR product line followed; and the paper business has been reduced to the company's third largest business.

A scanning electronic dictionary "e-pen", is becoming one of the main OCR product line of Han Wang. Hanwang Technology Securities Department said the scanning electronic dictionary by the company, hoping to give Han Wang to bring new profit growth. Han Wang did not disclose the sale of the product.

At present, the Han Wang technology for word recognition, face recognition, track input, such as the business outside the book more investment.

May 2013, Han Wang and the United States ViewSonic Joint venture to establish Shenzhen ViewSonic Han Wang Touch Control Technology Co., Ltd., into the handwritten electromagnetic pen LCD screen market, of which, the Han King capital 8.75 million yuan, accounting for 34% of shares.

The new factory is located in the Shenzhen Industrial Park, the main production of 4.7 inches to 21.5 inches, such as a variety of specifications of the electromagnetic hand-written LCD module, as well as electromagnetic handwriting touch monitor. are now in production and into the sales phase.

And this half a year ago, the Han Wang technology to a wholly-funded subsidiary of the capital of the Han Wang wisdom to increase 40 million yuan, overweight the investment in the education industry.

However, the Han Wang technology focus on the development of character recognition, face recognition, track input, digital reading and other strategies, in the performance of the company has not brought substantial changes.

The damage from the book business has been hard to make up, and other businesses are not yet showing enough profitability. From 2011 to the first half of this year, Han Wang has been losing so heavily that Hanwang technology has to live by selling good assets.

December 2012, the Han King issued a notice, to Beijing Digital Zheng Tong Technology Co., Ltd. and 4 natural persons sold wholly-owned subsidiary "Beijing Han Wang Debit Technology Co., Ltd." equity, 116 million yuan. Han Wang Debit in the field of intelligent transportation is on the rise, and Han Wang debit also in the Domestic Highway license plate recognition system has nearly 50% market share, its 2011-year income growth of 68%, is a Han Wang's quality assets.

Relying on the sale of Han-Wang Zhi-tong, at that time operating profit-13.8843 million yuan in the end of the Han Wang technology.