On the evening of April 22, Huaru Technology (301302. SZ) released its 2023 annual report and 2024 first quarter report. According to the data, the company will achieve revenue of 362 million yuan in 2023 and 37.14 million yuan in the first quarter of 2024, a year-on-year increase of 92.99%. In 2023, Huaru Technology will continue to deepen R&D and innovation, explore technological research and engineering practices such as digital twins and military metaverse, continuously consolidate the company's core competitiveness, and cultivate the application of simulation technology in civilian fields such as industry and digital content production. In the face of the complex industry environment, in the first quarter of 2024, the company actively explored order acquisition channels and promoted the implementation of projects, and achieved year-on-year growth in both project execution and project acceptance.
On the same day, Huaru Technology also launched a repurchase plan, which intends to repurchase shares at a price of no more than 31.00 yuan per share, with a total repurchase amount of not less than 30 million yuan and no more than 50 million yuan, according to this calculation, the number of shares repurchased by the company is expected to be between 967,700 shares and 1,612,900 shares. According to the announcement, all the repurchased shares will be cancelled and the registered capital will be reduced accordingly, which fully demonstrates the company's confidence in the future development prospects and will effectively safeguard the interests of all investors.
Huaru Technology's main business is the sales and technical development services of simulation products, the company takes military simulation as the main line, relies on the three basic projects of platform, model and data, and closely follows the simulation needs of combat experiments, simulation training, equipment demonstration, test appraisal and comprehensive support, and carries out product research and development and technical services.
At present, the company has built dozens of application products such as sea and air joint combat experiment system, parachute simulation training system, ship combat command simulation training support system, etc., and the variety of product library has been steadily expanded, and the product performance and user experience have been continuously improved, which can gradually meet the simulation application needs of all levels and fields. After years of accumulation, the company's platform tools and application products have been widely recognized by downstream customers, and has grown into a leading enterprise in the domestic military simulation industry.
It is worth mentioning that Huaru Technology is one of the private enterprises in China with military simulation as its main business. Affected by the relevant qualification licenses and requirements of the military industry, the entry threshold of the military simulation market is high. However, since its establishment in 2011, the company has always taken military simulation as its main business direction, insisted on building a product and service ecosystem based on military simulation, formed a leading market competition position in terms of market coverage, major project participation, branding, etc., and successfully created a brand effect of military simulation private enterprises.
Since its establishment, Huaru Technology has always attached great importance to R&D and insisted on R&D investment and team building. As of the end of 2023, the number of R&D personnel of the company has reached 401, accounting for 40.10% of the total number of employees of the company, and the amount of R&D investment is 248 million yuan, a year-on-year increase of 43.5%, and R&D expenses have increased year by year. As of the reporting period, the company and its subsidiaries have obtained 121 patents and 473 computer software copyrights, forming a large number of advanced technologies with independent intellectual property rights in the military simulation industry. The company unremittingly carries out innovative research on simulation technology, and its technical strength is leading in the industry.
Taking the company's core product XSimStudio as an example, the product can be technically benchmarked against the most advanced simulation platform in the world, forming a rapid replacement for foreign products in the fields of combat experiments, equipment demonstration tests and military training, and has also become the basic platform standard of an experimental system and a research institute.
At the same time, Huaru Technology also actively strengthens the application of cutting-edge technologies such as artificial intelligence, big data, and cloud computing in the R&D and innovation of simulation products, deepens the research and engineering practice of digital twins, military metaverse and other technologies, and explores the methods and ways of hybrid intelligence to empower military decision-making.
In the future, with the continuous deepening of national defense informatization in the mainland, the market prospect of military computer simulation (software) is very broad. "Driven by policy guidelines and industry development trends, Huaru Technology, as a leader in the military simulation industry, will continue to benefit," said industry insiders.
In addition, in recent years, the application of simulation software in transportation, education, communications, medicine, energy and other industries has also shown a significant expansion trend, and the scale of the industry has grown rapidly. The company conforms to the development trend of the simulation industry, based on the military simulation business, intelligently upgrades the existing business system, actively expands to the civilian field, and is committed to transforming the achievements into various fields of national economic construction.
On the one hand, the company first expanded into applications in the industrial field. Huaru Technology, with its wholly-owned subsidiary, Beijing Dingcheng Intelligent Manufacturing Technology Co., Ltd., will build a series of TSIM digital equipment products to realize the integrated modeling and simulation of complex systems in the industrial field and help users achieve digital transformation.
On the other hand, the company is also expanding its application into the field of digital content production. Beijing Xiaoru Culture Technology Co., Ltd., a wholly-owned subsidiary of Huaru Technology, transforms the company's accumulated technological achievements in the military and military fields into related product research and development and digital content production in the field of national defense culture, actively explores the direction of digital creative applications such as national defense education and military games, and carries out serious game research and development and operation, national defense curriculum customization and promotion, military park construction and management, etc., to provide support for the country and the army to carry out national defense education.
It is understood that the tank armor competitive game independently developed by Xiaoru Culture provides users with immersive battlefield simulation, tactical application, equipment operation and other war game experience. At present, the product is already in the internal testing stage, and related products will be released one after another.
For the future development strategy, Huaru Technology elaborated in the annual report that it will practice the "1-3-1 development strategy", focus on "modeling and simulation, artificial intelligence, virtual reality, big data" technological innovation and product research and development, further condense the basic technical support of front-end applications, optimize, adjust and supplement the research and development of related products, and form two main product lines of XSIM digital battlefield series and TSIM digital equipment series, which together constitute X Sim The general technical base of the Verse military metaverse realizes the underlying empowerment and provides common support for the company's "military, military industry, and military entertainment" business fields.
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