Review on the Management of Zhuolang Technology’s 2023 Annual Board of Directors
() The operating comments of the Board of Directors in 2023 are as follows:
I. Discussion and analysis of business conditions
During the reporting period, the company’s total assets were 7,739,688,493.11 yuan, an increase of 20.16% compared with the end of the previous year after adjustment; The total liabilities were 5,294,142,915.68 yuan, an increase of 48.96% compared with the end of last year after adjustment; Shareholders’ equity attributable to the parent company is 2,110,209,574.23 yuan, down 12.19% from the end of the previous year after adjustment; Realized operating income of 622,413,473.41 yuan, down 31.27% year-on-year; The net profit attributable to shareholders of listed companies is -121,603,071.36 yuan. During the reporting period, the company’s key work was carried out:
(A) anchor the main business, and continue to build core business advantages
During the reporting period, the company firmly grasped the concept of "science and technology is the primary productive force", insisted on taking data as an important factor of production, promoted the deep integration of digital economy and real economy, accelerated the formation of new quality productive forces, solidly promoted new industrialization, helped the digital transformation, intelligent upgrading and green development of traditional industries, empowered strategic emerging industries and laid out future industries.
1. Focus on industrial software and deepen diversified layout.
Diversified layout of industrial software is realized through product expansion. While transforming and strengthening AIoT, data acquisition platform, industrial Internet box and other products, MES, WMS and other manufacturing industrial software products are introduced, the digital twin modeling engine is updated, the supporting configuration tools of Troia-Box and the function optimization of acquisition platform are completed, the delivery level of data acquisition projects is improved, and the independence of industrial Internet base software is realized. On the other hand, taking advantage of the opportunity of R&D delivery of key projects, we have further accumulated rich data resources and effective practical experience in the construction of relevant scene models, the standardization scheme for the transformation of medium-sized and above production lines, and the monitoring of the operation efficiency of energy-consuming equipment, the energy consumption index of key processes and the energy consumption statistics of unit products, the energy consumption index of output value and the energy consumption management of energy costs, which has laid a solid foundation for continuously extending the business scope and expanding the project scale.
2. Tap the potential of cloud formats and deepen key industries.
The company has always attached great importance to independent innovation and invested a lot of resources in accelerating technological innovation, improving customer experience and improving operational efficiency. In 2023, "Zhuo Lang Kunlun Cloud" deeply explored the actual needs of users in education, medical care, office and other fields, and successively completed many iterations of its own products, namely, the easy-to-teach version and the universal version of cloud desktop, and realized the full-line localization compatibility of servers, terminals and desktop operating systems.
3. Consolidate integration advantages and open up business space.
Based on the technical accumulation of its own software development, the company actively integrates software research and development with system integration business, effectively enhances the technical added value of system integration solutions, gives full play to the advantages of its own software products, and provides customized system integration solution services for customers in key industries such as government, public utilities and manufacturing. During the reporting period, the company continued to promote the implementation of various system integration projects and deeply cultivated key industries, covering many key industries such as education, smart cities and medical care.
4. Adhere to the line of innovation and help industrial transformation.
During the reporting period, the company cooperated with Tianjin State-owned Assets Supervision and Administration Commission to sort out the application scenarios of Xinchuang in the state-owned assets field, and based on years of experience in adaptation and migration projects, introduced several Xinchuang adaptation centers to verify the scenarios, and conducted business docking with many enterprises; Self-developed a series of training courseware for Xinchuang, and successfully held several open classes for Xinchuang; Actively expand the business docking of Xinchuang, and carry out business exchanges with many enterprises, involving transportation, urban investment, water and other industries.
5. Strengthen fine management and optimize IDC business.
In terms of Internet data center construction and hosting services, the company has professional technical capabilities and qualifications such as data center planning and design, construction project management and general contracting of mechanical and electrical equipment, and has full life-cycle service capabilities from data center planning, design and project management during construction to system online delivery and operation and maintenance services after completion. During the reporting period, the company strengthened industry cooperation with major operators, and further optimized the intelligent operation and maintenance platform system scheme of data center to better meet customer needs and operation and maintenance requirements.
(2) Keeping upright and innovating, and continuously improving the management level.
With the good opportunity that Zhuolang Technology was selected into the list of "Double Hundred Enterprises" of the State Council State-owned Assets Supervision and Administration Commission, the company unswervingly practiced the road of high-quality development. First, comprehensively promote the construction of the company’s talent team, constantly improve the selection, appointment and management mechanism of leaders, improve the normalization mechanism for training and selecting outstanding young talents, and continuously strengthen the construction of the company’s talent echelon; Second, diversify financing channels, optimize credit granting of financial institutions and support business development; The third is to strengthen the investigation of accounts receivable cleaning, formulate a plan to reduce costs and increase efficiency, and clarify the key points of pressure control from the aspects of cost control, financing management, cleaning accounts receivable and centralized procurement; Fourth, the company continued to increase its R&D investment. During the reporting period, the R&D investment was about 94,656,743.17 yuan, an increase of 30.53% over the previous year, and its independent R&D capability was significantly enhanced.
(3) Prevent risks and constantly consolidate the cornerstone of compliance development.
During the reporting period, the company strictly implemented the internal control audit, continuously optimized the internal control construction, and carried out various audits such as the special audit of equity investment and the special inspection of major issues, so as to further standardize the internal management of the company, prevent and resolve major risks and effectively protect the fundamental interests of the company. In-depth development of the establishment of rules and regulations, and constantly improve the existing system norms, according to the system attributes and decision-making levels for scientific management. Strengthen the publicity of the legal system, actively participate in external training, and organize internal legal knowledge training of the company, which has effectively strengthened the professionalism of employees in performing their duties.
(4) Deepen governance and continuously improve the standard operation level.
Unify the strengthening of the party’s leadership and the improvement of corporate governance, establish a "1+N" corporate governance system based on the company’s articles of association, strictly implement the pre-research of the party Committee on major business management issues, and scientifically define the boundaries of responsibilities and rights of each governance subject. Adhere to the bottom line of information disclosure compliance, effectively implement the "Insider Information Insider Registration Management System" and other regulations. During the reporting period, it disclosed four regular reports and 99 temporary announcements, and standardized the management of insider information while protecting investors’ right to know. Attach great importance to the management and maintenance of investor relations, adhere to the concept of "investor-oriented", continuously improve the management level of investor relations, and carry out investor communication through multi-level and multi-channel methods.
(E) Keep going and further strengthen the leading role of Party building.
The company insists on strengthening the party’s political, ideological, organizational, work style and discipline construction, and insists on arming the mind, guiding practice and promoting work with the party’s innovative theory. Carry out in-depth education on studying and implementing the theme of Socialism with Chinese characteristics Thought of the Supreme Leader in the new era, solidly promote the action of "strengthening the roots and casting souls" in state-owned enterprises, give full play to the role of party committees in "guiding the direction, managing the overall situation and ensuring implementation", and give full play to the role of party branches as fighting fortresses and the vanguard and exemplary role of party member; Continue to promote the deep integration of party building work with the company’s production and operation, and promote the company’s high-quality development with high-quality party building.
Ii. the industry in which the company is located during the reporting period.
The company is a professional software and information technology service enterprise, whose main business covers software development, information system integration, Internet data center (hereinafter referred to as "IDC") construction and hosting.
Software and information technology service industry is a basic, strategic and leading industry related to the overall situation of a country’s national economy and social development. It has the outstanding characteristics of fast technology update, high added value of products, wide application fields, strong penetration, low resource consumption and full utilization of human resources, and plays an important supporting and leading role in economic and social development. The Tenth Five-Year Plan for the Development of Digital Economy points out that taking the deep integration of digital technology and real economy as the main line, we will strengthen the construction of digital infrastructure, improve the governance system of digital economy, jointly promote digital industrialization and digitalization of industries, empower the transformation and upgrading of traditional industries, cultivate () new formats and new models, and constantly make China’s digital economy stronger and better, thus providing strong support for the construction of "Digital China". The Development Plan of Software and Information Technology Service Industry in the Tenth Five-Year Plan pointed out that during the Tenth Five-Year Plan period, China’s software and information technology service industry should achieve the "four new" development goals of "achieving a new upgrade in industrial base, reaching a new level in industrial chain, achieving new development in ecological cultivation and achieving new results in industrial development".
In 2023, China’s software and information technology service industry (hereinafter referred to as "software industry") operated steadily, with high-speed growth in software business income and stable profitability. According to the data of "Economic Operation of Software Industry in 2023" released by the Ministry of Industry and Information Technology, in 2023, the total revenue of the national software and information technology service industry was 12,325.8 billion yuan, up by 13.4% year-on-year; In 2023, the total profit of the software industry was 1,459.1 billion yuan, a year-on-year increase of 13.6%.
In terms of fields, in 2023, the sales revenue of China’s software products reached 2,903 billion yuan, up 11.1% year-on-year, accounting for 23.6% of the total industry revenue, of which the revenue of industrial software products was 282.4 billion yuan, up 12.3% year-on-year; The revenue from information technology services was 8,122.6 billion yuan, up 14.7% year-on-year, accounting for 65.9% of the total industry revenue, of which the revenue from cloud services and big data services was 1,247 billion yuan, up 15.4% year-on-year; The revenue from information security products and services was 223.2 billion yuan, up 12.4% year-on-year, accounting for 1.8% of the total industry revenue; The revenue from embedded system software was 1,077 billion yuan, up 10.6% year-on-year, accounting for 8.7% of the total industry revenue.
Iii. Business of the Company during the reporting period
The company’s main business is software and information technology services, and its main products/services are divided into three categories: software development and cloud services, information system integration, Internet data center construction and hosting services.
(1) Software development and cloud service business
The company develops software based on its own technology, and the developed software products can not only serve the self-built cloud computing data center, but also be sold to customers independently. Based on technological innovation, this business continuously promotes the company’s business innovation, which is mainly divided into two business segments: cloud computing software development and industrial software development.
1. Cloud computing software development
Cloud computing software development business is a software system that the company develops unified management, deployment and scheduling of physical devices (servers, computing, storage, networks, etc.) and logical resources according to the requirements of cloud computing architecture and the needs of customers. Thanks to its years of technology accumulation and R&D capabilities, the company has developed and launched standardized cloud computing software products such as "Zhuo Lang Kunlun Cloud-Cloud Desktop", "Zhuo Lang Kunlun Cloud-Cloud Application" and "Zhuo Lang Kunlun Cloud-Private Cloud", and provided customers with software delivery and "hyper-converged" integrated software and hardware delivery mode, with application scenarios covering education, medical care, government affairs, operators and other fields.
2. Industrial software development
Based on the advantages of its own software development technology and the accumulation of industry experience, the company deeply developed the "Zhuo Lang Tiangong" series of intelligent manufacturing software products, deeply integrated the Internet of Things technology, big data technology, artificial intelligence technology and digital twin technology with the characteristics and needs of the manufacturing industry, and realized the manufacturing process control and management of digitalization of technology, production logistics, manufacturing and decision-making basis, and built an intelligent engine for industrial transformation and upgrading to help traditional manufacturing industries realize digital transformation.
(B) Information system integration
Information system integration refers to the integration of network, equipment, data, business process and information security into an interrelated, unified and coordinated whole system by comprehensively applying computer network, host, storage, information security and software technologies, and adopting various integration methods such as data integration, network integration and information system integration on the basis of in-depth analysis of industry characteristics and understanding of business requirements in different downstream fields, so as to fully share resources and realize centralized, efficient and coordinated business and data.
By integrating the products and advanced technologies of excellent software and hardware manufacturers at home and abroad, and combining the company’s rich vertical industry experience, the company tailored solutions for customers, covering manufacturing, education, medical care, transportation, finance, government affairs and other industries. The solutions include the overall planning and design of information systems, system architecture design, application software development, software and hardware selection, customer deployment, online delivery and post-operation and maintenance.
In line with the business opportunity brought by the "Xinchuang" wave of government and enterprise units in China, the company will continue to dig deep into the development potential of the industry, enlarge and strengthen key industries, and promote the rapid growth of business scale in combination with independent and controllable industrial chains; By enhancing independent research and development capabilities, the unique industry application software and professional services will be reflected in the system integration solution business, and the added value of technology will be enhanced.
(3) Internet data center construction and hosting services
Internet data center construction and hosting services refer to providing users with life-cycle services such as data center planning, design, project management, engineering construction, system online delivery, operation and maintenance services, and gradually forming customized management services for different levels of data center infrastructure, network communication, servers, storage devices and applications, such as infrastructure planning and design, network bandwidth services, server hosting services, virtual host services, data disaster recovery backup management, etc.
IDC hosting services of the company include basic services and value-added services. Among them, the basic services mainly include services such as overall computer room leasing, cabinet leasing, bandwidth leasing, server hosting, etc., and are supported by resource services such as power supply, air conditioning, fire protection and security. Value-added services mainly include network monitoring, network security, network management, daily operation and maintenance services. The potential users of IDC hosting services include both operators (mainly in the form of full space leasing) and institutional or enterprise users (in the form of cabinets or cabinet space leasing).
Iv. analysis of core competitiveness during the reporting period
The company focuses on the main business of software and information technology services, and constantly promotes the research and development, upgrading and iteration of core technologies, as well as the innovation of products and solutions, helping enterprises to deepen their digital transformation. After years of accumulation, the company has built a strong core competitiveness in business model, technology research and development and talent team.
(A) vertical depth of collaboration business model
With the gradual landing of IDC business layout, the company has formed a full-chain business model covering the upstream and downstream links of the software and information technology service industry chain, from software development and information system integration to Internet data center construction and hosting. Based on the full chain business model, on the one hand, the company can give full play to the advantages of its own resources and provide users with one-stop customized services such as planning and design, system integration, software development, operation and maintenance management based on its own IDC resources and self-developed cloud computing technology to promote cross-selling among business segments; On the other hand, in the process of providing services for different types of customers, the company can continuously deepen the understanding of customer needs in all links of the industrial chain and in all downstream fields, feed back and improve the company’s product design planning and technology research and development direction, and form a virtuous circle in which technology research and development capabilities, service provision capabilities and business promotion capabilities are continuously enhanced.
(2) Excellent technical research and development capabilities
After long-term technical research and development and experience accumulation, the company has certain core technical strength in software, hardware and other aspects; We have invested a lot of resources in technological innovation, customer experience improvement and operational efficiency improvement, established a relatively perfect R&D system, trained an excellent R&D team and possessed strong R&D capabilities. The company has the qualification and certification, covering software, integration, confidentiality, security, IT services and value-added telecommunications services, covering all kinds of software and information technology services industry-wide links.
(C) Forward-looking industrial chain layout of Xinchuang
As a professional information technology service provider, the company closely followed the development trend of the industry and made a forward-looking strategic layout to meet the domestic substitution wave of Xinchuang. In terms of software development business, the company’s cloud computing software has achieved compatibility between local operating systems and local servers/processors, greatly improving the construction efficiency of users’ information system architecture; In terms of information system integration business, the company maintains good cooperative relations with major local Xinchuang industrial chain enterprises and can provide customers with comprehensive independent and controllable transformation solutions; In terms of data center construction and hosting business, the company has the ability of planning, construction and operation and maintenance of domestic data centers, which fully meets users’ requirements for data security.
(D) High-quality customer resources
In the long-term operation, the company has accumulated rich customer resources, completed many landmark projects covering government affairs, education, finance, manufacturing, medical care and other fields, gradually established a broad and solid customer coverage network, and accumulated profound vertical service experience in the long-term cooperation with customers, which can grasp customer needs and industry development trends. At the same time, as the "enterprise intelligent manufacturing and digital system solution provider", the company will continue to explore the potential business opportunities brought by the digital transformation of government and enterprises and the wave of innovation, and realize the promotion and development of business scale.
(E) Professional talent team
In the long-term technology research and development and business promotion, the company attaches great importance to the construction of talent echelon and has trained a group of R&D and operation management personnel with solid technical foundation. Relevant personnel have many years of industry experience, participated in and guided the planning, design, implementation and operation and maintenance of some software and information technology service projects, have a deep understanding of the market and customer needs, and can feed back into the company’s technical service system to form a sustainable business cycle.
V. Main operations during the reporting period
During the reporting period, the company realized operating income of 622,413,473.41 yuan, down 31.27% year-on-year; The net profit attributable to shareholders of listed companies is -121,603,071.36 yuan.
VI. The Company’s Discussion and Analysis on the Company’s Future Development
(A) the industry pattern and trends
1. The computing power policy will boost the high-quality development of computing power in China.
In October 2023, the Ministry of Industry and Information Technology, the Central Network Information Office, the Ministry of Education, the National Health and Wellness Commission, the People’s Bank of China and the State-owned Assets Supervision and Administration Commission of the State Council jointly issued the Action Plan for the High-quality Development of Computing Infrastructure, proposing that by 2025, the scale of computing power will exceed 300EFLOPS, and the proportion of intelligent computing power will reach 35%, and the computing power between the east and the west will develop in a balanced and coordinated manner.
In December 2023, the National Development and Reform Commission, the National Data Bureau, the Central Network Information Office, the Ministry of Industry and Information Technology, and the National Energy Administration jointly issued the "Implementation Opinions on Deepening the Implementation of the" East Counting and West Computing "Project and Accelerating the Construction of a National Integrated Computing Network", proposing that by the end of 2025, the comprehensive computing infrastructure system will take shape.
In March 2024, the Government Work Report 2024 took "vigorously promoting the construction of modern industrial system and accelerating the development of new quality productivity" as the government’s work task in 2024, and mentioned the important role of "artificial intelligence+"action and the construction of computing power system.
To sum up, in the future, China will continue to optimize the layout of computing facilities, promote the diversified configuration of computing structures, and meet the needs of different types of computing services.
2. Data transaction will probably bring a new model of digital economy.
In August, 2023, the Ministry of Finance issued the Interim Provisions on Accounting Treatment of Enterprise Data Resources, which clarified the scope of confirmation of data resources and the applicable criteria for accounting treatment. In September of the same year, under the guidance of the Ministry of Finance, China Assets Appraisal Association issued the Guiding Opinions on Data Assets Appraisal, and determined that the valuation methods of data assets include three basic methods: income method, cost method and market method and their derivatives. In December 2023, the National Development and Reform Commission publicly solicited the opinions of the "Three-year Action Plan for Data Elements ×" (2024-2026) (draft for comments), and proposed that by the end of 2026, the breadth and depth of application scenarios of data elements will be greatly expanded, and the multiplier effect of data elements will be manifested in the field of economic development.
With the entry of data assets into the table, the three-year action plan of "data elements ×" and the management of data assets, the system construction will probably enter the stage of "practice" from "breaking the problem", the construction of digital economy is expected to be further accelerated, and data transactions will probably bring a new model of digital economy.
3. The refinement of the evaluation standard of Xinchuang will accelerate the development of the industry.
In recent years, the relevant departments have intensively released the evaluation standards for the basic software and hardware of Xinchuang, and the evaluation standards for domestic Xinchuang products such as CPU, operating system, database, general-purpose server, workstation, portable computer and desktop computer have been gradually improved. The refinement of the evaluation standards for related Xinchuang products will further expand the scope of benefits and promote the accelerated development of Xinchuang industry. On the one hand, in the future, Xinchuang Software is expected to open the road of differentiation through AI; On the other hand, the industry Xinchuang will probably become the main force of Xinchuang’s expansion.
(II) Company development strategy
Combined with Tianjin’s industrial planning and relevant national industrial policies, the company has clearly defined its strategic position as an enterprise intelligent manufacturing and digital transformation system solution integrator, and established its development goals during the Tenth Five-Year Plan period, namely, building itself into a leading industrial enterprise of Tianjin’s state-owned system software and new infrastructure, an overall integration unit of intelligent manufacturing system solutions, a backbone core enterprise of information technology innovation and application, a main undertaker of digital transformation services of state-owned state-owned enterprises, and a new builder of smart city and digital government construction.
(3) Business plan
In 2024, the company will keep in mind the spirit of the important speech made by the Supreme Leader General Secretary when he visited Tianjin, strive for the first place in developing new quality productivity, persist in research and development innovation, deepen performance management, achieve cost reduction and efficiency improvement, and fully achieve the annual business objectives. The main measures are as follows:
1. Adhere to high-quality development and deepen the reform of state-owned enterprises.
As a state-owned listed company in Tianjin, the company will unswervingly implement the high-quality development route, continue to promote the deepening and upgrading of state-owned enterprises, fully implement the comprehensive reform implementation plan of "Double Hundred Enterprises", and accelerate the company’s high-quality growth based on its main business and development needs.
2. Strengthen scientific and technological innovation and continuously consolidate competitive advantage.
In 2024, the company will further increase R&D efforts in the fields of artificial intelligence empowerment manufacturing development, cloud infrastructure software, big data platform and new infrastructure, actively introduce outstanding talents through continuous investment in R&D resources, strengthen exchanges and cooperation with partners inside and outside the industry, and promote technological innovation and iterative upgrading of core products.
3. Deeply focus on the main business and actively explore the business map.
(1) Continue to cultivate key industries.
In terms of digital transformation and intelligent upgrading of government and enterprise customers, the company will continue to deepen key industries, concentrate on expanding military industry, education, smart cities and other fields, and achieve another breakthrough in adding new customers, new businesses and new industries. At the same time, continue to deepen and expand regional coverage, explore the central and western markets, and enhance the regional coverage capacity of key industries. In terms of smart cities, the company will also make full use of its mature products and related technologies in the fields of smart parking, smart education, smart medical care and smart public security, actively explore the national market, deeply polish products, and form an industry solution that can be quickly replicated.
(2) Fully promote the construction of Xinchuang Cloud.
First, focus on launching the business model of Xinchuangyun+private network, first of all, apply it in the qualified state-owned assets and party and government systems, and give full play to the company’s technological advantages in the field of Xinchuangyun; The second is to take OA office and cloud desktop as the breakthrough point, and use the company’s mature products and successfully delivered solutions to quickly form the "Tianjin Solution" of Xinchuang Cloud and accelerate the application of Xinchuang in our city.
(3) Continuously improve the operational efficiency of data centers.
In terms of data center operation, the company will increase the research and development of technologies such as distributed refrigeration architecture and liquid-cooled servers in data centers, optimize energy-saving operation schemes of project equipment in various places, and reduce energy consumption levels; Optimize the operating efficiency of each system in the data center, improve the responsiveness and effect to the needs of all parties, continuously improve the service guarantee ability, and improve the market recognition and industry reputation.
4. Consolidate corporate governance and enhance the compliance system.
The company attaches great importance to the construction of the board of directors, and reasonably sets and clearly defines the rights and responsibilities of the shareholders’ meeting, the board of directors, managers and party organizations. In terms of standardized governance, the board of directors will further improve the company’s relevant rules and regulations, optimize the company’s governance structure, and improve the standard operation level; At the same time, we will continue to strengthen the construction of internal control system, insist on operating according to law, continuously optimize the internal control process, further improve the risk prevention mechanism, and ensure the healthy, stable and sustainable development of the company. The board of directors of the company will do a good job in information disclosure in strict accordance with relevant regulations, and continuously improve the transparency and timeliness of the company’s information disclosure. Strengthen the communication between the company and investors, deepen investors’ understanding and recognition of the company, and promote the long-term, stable and good interactive relationship between the company and investors.
5. Adhere to the breeding drive and build a high-quality talent echelon.
In 2024, the company will continue to adhere to the drive of talent selection and establish a scientific talent development plan; Broaden the channel of talent introduction through various ways such as school-enterprise alliance; We will continue to promote the innovation of the assessment mechanism, establish an incentive model in which compensation and benefits are linked in the same direction, and unswervingly implement the dynamic competition mechanism of "cadres can be promoted and demoted". Through a series of measures, such as compiling human resources planning, building a training system and improving the evaluation mechanism, we can stimulate the entrepreneurial spirit of the company’s cadres, employees and officers, so that all employees can always maintain their enterprising attitude, dare to be the first and face difficulties, and make new achievements on the journey of digital industry.
(4) Possible risks
1. Policy risks
Supported by national policies such as new infrastructure, "internet plus", big data strategy and digital economy, IDC industry has made great progress. However, influenced by the goal of "double carbon", IDC’s industrial policies began to be oriented to energy consumption control, and the requirements for PUE (data center energy efficiency) gradually increased, and the entry barriers of first-tier cities and Beijing-surrounding areas showed a continuous tightening trend. If the relevant policies of the region where the company’s key data center projects are located change, if the company fails to make effective adjustments in technology and operation in time, the company’s performance may be adversely affected to some extent.
2. Market risk
Relying on high-quality technical team and professional management team, the company has certain competitive advantages in terms of product safety, reliability and functionality, professionalism and timeliness of service. However, with the continuous improvement of the scale and competitiveness of competitors in the industry, the competition in the industry is becoming increasingly fierce. If the company cannot keep up with the development trend of the industry, meet the changes in customer needs, and further enhance its strength in product research and development, technological innovation and customer service, it will probably affect its market position and competitive advantage in the future. If there is an oversupply in the IDC market in the future and the relationship between supply and demand changes structurally, which will affect the unit price and market sales, there is a risk that the market sales pressure will increase and the income will be less than expected.
3. Operational risks
Macro factors such as economic downturn and international trade disputes may bring certain uncertainty to the company’s production and operation, and the development of project financing and the stability of supply chain may also be affected to some extent. The company’s procurement, production and sales may be less than expected, which will adversely affect the company’s performance.