1. Project Overview
The total planned investment for this project is 183.7761 million yuan, intended to be made through the acquisition of facilities. This project aims to increase investment in the research and development of innovative products such as Android TV smart speakers/smart home theaters, smart security system terminals (including smart doorbells, smart cameras, mobile sensors, door magnets, water immersion sensors, gateways, and other smart sensing products), and smart routers, accelerating the productization of the company’s core technologies to explore new profit growth points; at the same time, it will help the company align with the development trends of the smart terminal industry, meet consumer demands for smart audio-visual, smart security, and 5G smart terminal products, providing strong support for the company’s sustainable development in the future. The expected construction period for this project is 2 years.
2. Necessity of the Project
(1) Aligning with the Development Trends of the Smart Terminal Industry and Implementing the Company’s Development Strategy
Driven by the rapid development of new technologies such as Internet, Internet of Things, Artificial Intelligence, Cloud Computing, and Big Data, the smart home market has recently experienced a new wave, with smart terminal devices becoming increasingly popular and pervasive, and the types of products continuously enriching. Unlike traditional home decor, the arrival of the smart home era endows homes with personalization, intelligence, and quality, covering various family scene applications such as smart audio-visual, smart security, smart lighting, and smart shading, thus becoming increasingly favored by consumers.
Among them, the penetration rates of smart home terminal products such as smart speakers, smart security network monitoring cameras, smart access control, and smart routers are rapidly increasing, with a fast-growing market scale. The company firmly believes in the development of the smart terminal industry and has formulated a clear development strategy.
Based on consolidating the company’s family multimedia smart terminal products as advantageous products, through continuous forward-looking research and new product development, the company aims to enrich the types of family smart terminal products, establishing a product cluster centered on smart homes, covering multiple scenarios such as smart audio-visual entertainment, smart security, and smart communication, serving as a new engine for the company’s future sustainable development.
Therefore, in the context of the booming smart terminal industry, it is necessary for the company to further increase investment in the research and development of innovative smart home products to enrich the company’s product ecosystem and implement the company’s future development strategy. This project will increase investment in the research and development of new products such as Android TV smart speakers/smart home theaters, smart security system terminals, and smart routers, which will help enrich the company’s product ecosystem, enhance the company’s competitiveness in the smart terminal field, and promote the realization of the company’s future development strategy.
(2) Enriching Product Categories and Enhancing the Company’s Market Competitiveness
The company is a high-tech enterprise engaged in the research and development and sales services of family smart terminal products, covering two major fields: family multimedia smart terminals and 5G network communication terminals. However, in terms of structure, family multimedia smart terminals represented by smart network set-top boxes/smart TV sticks still account for over 90% of the company’s revenue, indicating a need for product richness improvement.
With the rapid development of smart homes and 5G communications, the market demand for related innovative smart terminal products is expected to grow rapidly. Based on the broad market prospects of the smart terminal industry and the company’s existing technological development capabilities, the company can develop new family multimedia smart terminal and 5G network communication terminal products. On one hand, this will meet the rapidly growing market demand downstream, further expanding the company’s operating scale; on the other hand, as new products gradually expand, the company’s business structure will be optimized, product categories will be enriched, and market competitiveness and profitability will continue to enhance, further consolidating the company’s position in the industry.
(3) Accelerating Core Technology Transformation to Cultivate New Performance Growth Points for the Company
Since its establishment, the company has focused on the field of smart terminal products, dedicated to providing global customers with comprehensive solutions that integrate system integration, software and hardware development, appearance structure design, interface design, product certification, and terminal device management services. The company has always placed great importance on product research and design innovation, and has formed a rich accumulation of core technologies covering various dimensions such as product intelligent development, product interconnectivity, automated testing and certification, data and cloud platforms, etc., forming a relatively complete core technology matrix in the fields of family multimedia smart terminals and 5G network communication terminals.
Due to the high consistency in technology, performance, process, and architecture among smart terminal products, the company possesses the design and development capabilities and core technology foundation for other smart terminal products. Additionally, with the rapid development of smart homes and 5G communications, the market demand for family multimedia smart terminal products and 5G network communication products is strong and shows a growth trend.
To meet the growing market demand downstream, the company needs to increase investment in the research and development of new products, accelerate the transformation of its core technologies, and enhance its design and development capabilities in the fields of smart home terminals and 5G network communication terminals, opening up new profit growth points for the company’s sustainable development. This project will research and develop smart speakers, smart security terminal products, and 5G interconnectivity products, accelerating the transformation of the company’s core technologies, quickly forming new products, and opening up new profit growth points, providing strong support for the company’s future sustainable development.
3. Feasibility of the Project
(1) Broad Market Prospects Provide a Market Foundation for This Project
In the field of smart speakers, smart speakers/smart home theaters are one of the important products of smart home audio terminal devices and serve as a crucial entry hardware for the smart home ecosystem. In recent years, with the continuous development of related technologies such as the Internet of Things and Artificial Intelligence, the global smart speaker market has rapidly developed.
According to Statista data, the global shipment of smart speakers is expected to exceed 98 million units in 2019, and is projected to reach 409.4 billion units by 2025, with a compound annual growth rate of over 20% from 2019 to 2025, showing a rapid growth trend. In the field of smart security terminals, the rapid development of artificial intelligence and Internet of Things technologies in recent years has greatly improved the intelligence level of security, expanding the market space for the smart security industry.
According to Juniper Research data, the global smart security industry market size was $12 billion in 2018, and is expected to reach $45 billion by 2023, with a compound annual growth rate of 30.26%. With the rapid development of the smart security industry, the smart security terminal products within it are also expected to show a rapid development trend.
WiFi 6 is the latest WiFi technology currently applied in the market. Benefiting from the continuous increase in the number of Internet users, as well as the rapid development of the Internet of Things and smart home industries, the WiFi 6 market is booming. According to Research And Markets data, the global WiFi 6 market size is expected to reach $11.5 billion in 2022 and $26.2 billion by 2027, with a compound annual growth rate of 17.9% during the forecast period.
At the same time, research on WiFi 7 related technologies is also underway. WiFi 7 is expected to utilize a 320MHz channel bandwidth and 4096-QAM signals, significantly enhancing the peak data rate to 30Gbps, which is expected to be four times faster than WiFi 6/6E, while greatly reducing transmission latency, offering vast development space. In summary, the fields involved in this project, such as Android TV smart speakers/smart home theaters, smart security system terminals, and WiFi 6/7 smart routers, all have broad market prospects, providing a solid market foundation for the capacity digestion of this project.
(2) Strong Technological Innovation Capability Provides a Good Technical Foundation for the Implementation of This Project
Since its establishment, the company has placed great importance on the construction of its technology research and development team and investment in the research and development of new technologies, products, and applications, possessing a rich reserve of R&D talent and strong technological innovation capabilities. With years of technological innovation and industry experience accumulation, the company has been recognized as a “high-tech enterprise” and has received the honor of “Specialized, Refined, and Innovative Small and Medium Enterprises” in Shenzhen, becoming a member unit of the Guangdong Province Internet of Things Association. The company has now formed a cutting-edge and efficient technology development and product design system, capable of providing global customers with customized comprehensive solutions that integrate system integration, software and hardware development, appearance structure design, interface design, product certification, and terminal device management.
Currently, the company’s products cover two major fields: family multimedia smart terminals and 5G network communication terminals, with main products including smart network set-top boxes/smart TV sticks, smart speakers, and 5G smart routers. After years of development, the company has formed a rich accumulation of core technologies in the aforementioned fields, such as modular development solution technology, video optimization technology, audio optimization technology, voice interaction optimization technology, Android system APK installation space optimization technology, WiFi Mesh networking solution technology, and device security and certification technology.
Due to the high consistency in technology, performance, process, and architecture among smart terminal and 5G network communication terminal products, the company’s rich core technology accumulation and strong technological innovation capabilities provide a solid technical foundation for the company’s future family multimedia smart terminal and 5G network communication terminal products.
In addition, the company places great emphasis on talent cultivation and introduction. After years of accumulation, it has a group of experienced professional technical R&D talents and management personnel with rich experience, covering various dimensions such as Android terminal systems, AIOT smart applications, wireless communication, audio and video decoding, DVB system platforms, customer value-added services, and hardware and structure of smart terminal products, product development testing. Therefore, it is evident that the strong R&D and project support team provides solid talent and technical support for the company’s new product development. In summary, the company possesses strong technological innovation capabilities, laying a good technical foundation for the implementation of this project.
(3) Excellent Customer Service Team and Comprehensive After-Sales Service System Provide Full Support for the Implementation of This Project
Through long-term practice, the company has established a professional and comprehensive technical service system, possessing global technical service experience. The company always takes customer needs as the guide, closely monitoring market trends for family multimedia smart terminals and 5G smart terminal products, meeting downstream customers’ demands for personalized and intelligent smart terminal products. To meet the diverse needs of customers in different regions in real-time, the service content covers the entire process of pre-sales technical and product development consultation, supply assurance, and after-sales service.
At the same time, the company collaborates across different departments to provide global customers with customized comprehensive solutions that integrate system integration, software and hardware development, appearance structure design, interface design, product certification, and terminal device management services, coordinating resources from platform providers, operators, content providers, and core material suppliers, greatly improving product development and certification efficiency, shortening product development cycles, and laying a solid foundation for establishing long-term stable cooperation with customers.
In addition, the company has developed an “intelligent terminal management platform,” which has functions such as terminal device control, hardware detection, error alarms, remote assistance, software management, and local data security protection. The company plans to further enhance the platform’s functionality and compatibility, thus empowering the company’s technical services and effectively improving technical service efficiency. In summary, the company has an excellent customer service team and a comprehensive after-sales service system, providing full support for the implementation of this project.
4. Relationship Between the Project and the Company’s Existing Main Business and Core Technologies
This project is based on the company’s existing family multimedia smart terminal and 5G network communication terminal product business, developing new products such as smart audio-visual entertainment, smart security, and 5G smart terminals, accelerating the productization of the company’s core technologies, quickly bringing new products to market, and opening up new profit growth points for the company. The implementation of this project will further enrich the company’s product structure and enhance the company’s market competitiveness.
5. Project Investment Estimate
The total planned investment for this project is 183.7761 million yuan.
7. Project Approval or Filing Status
This project has been filed with the Development and Reform Bureau of Bao’an District, Shenzhen, and has obtained the “Shenzhen Social Investment Project Filing Certificate” (Shen Bao An Fa Gai Bei An [2023] No. 0376). This project does not fall under the construction projects regulated by environmental protection-related laws and regulations and does not require an environmental impact assessment.
8. Project Environmental Protection Status
This project mainly involves the research and development of software and hardware technologies for innovative products and does not involve production processes. The project does not generate noise pollution; the solid waste mainly consists of household waste, which is uniformly transported by local sanitation departments; there are no process wastewater discharges during the technical research and development process, and domestic sewage is discharged into the municipal sewage pipeline for centralized treatment by sewage treatment plants.
9. Economic Benefit Analysis of the Project
The investment project has undergone detailed feasibility studies. According to the research, after the completion of this project, the post-tax internal rate of return is 19.63%, and the post-tax investment payback period is 5.79 years (including the construction period).
The complete feasibility study report is based on relevant laws, regulations, and standards from national departments and local governments, adhering to the principles of objectivity, practicality, science, and fairness. Based on the available data and information, it primarily conducts research and demonstration on aspects such as the project construction background, demand analysis and necessity, feasibility, construction scale and content, construction conditions and plans, project investment and funding sources, social benefits, economic benefits, and environmental protection of project construction, to determine the economic rationality and technical feasibility of the project, providing decision-making references for project investors and competent authorities.
This report is an excerpt of the publicly available parts. Customized feasibility study reports for purposes such as government project approval and filing, State-owned Assets Supervision and Administration Commission filing, bank loans, industrial fund financing, and internal board investment decisions can be consulted with Sihan Industrial Research Institute.
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