On October 9th, Zhong'an Ke Co., Ltd. (600654.SH) held a teleconference for investor relations activities, co-hosted by the Secretary of the Board of Directors, Li Kai, and the Chief Financial Officer, Li Xiang. Nearly 20 investment institutions participated in this exchange event. The conference mainly focused on in-depth discussions with investment institutions on the company's operating performance, future development strategies, and market layout.

Selected content from the exchange:

Steady performance growth with outstanding overseas performance

As a professional security and safety integrated operation service provider, Zhong'an Ke has formed three major business formats: integrated security operation services, smart city system integration, and intelligent security product manufacturing. The company is gradually exploring emerging businesses in artificial intelligence represented by the smart computing center. In the first half of 2024, the company achieved a revenue of 1.314 billion yuan, a year-on-year increase of 3.43%; the net profit attributable to the shareholders of the listed company reached 25.091 million yuan, a significant increase of 503.1% compared to the same period last year; the equity attributable to the shareholders of the listed company reached 1.623 billion yuan, an increase of 2.09% compared to the same period last year.

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It is particularly worth mentioning that, thanks to the rapid growth of overseas integrated security service business, the company achieved a revenue of 702 million yuan in the second quarter of this year, which not only increased by 14.79% compared to the first quarter but also achieved a high growth of 13.89% compared to the same period last year, showing a good development momentum. At the same time, the net cash flow from operating activities of the company reached 45.256 million yuan, with a continuous positive cash flow, continuous optimization of asset structure, continuous improvement of overall operating conditions, and steady realization of high-quality development.

Deep cultivation of overseas markets and seizing development opportunities

As the only listed company on China's A-share market with a layout in overseas integrated security service business, Zhong'an Ke's various overseas subsidiaries have been deeply involved in the security integrated operation service industry for decades, with tens of thousands of security personnel overseas. The company has accumulated a large number of high-quality and stable customers in various local industries such as retail, transportation, finance, and government agencies overseas. In the first half of the year, the company actively developed market business and improved service levels, especially in countries and regions such as Thailand and Hong Kong. By adjusting competitive strategies, a number of key customers were newly won, effectively improving business income and operating profit. In addition, the company also seized the opportunity of competitors in the Hong Kong region being sanctioned, significantly expanding the security operation service market in Hong Kong, and achieving significant growth in revenue and profit.

In the future, the company will continue to deeply explore the potential of overseas markets: First, it will continue to respond to the development needs of the "Belt and Road" initiative, based on the company's Guardforce overseas security brand, and strive to rapidly expand business in Southeast Asia, the Middle East, and other regions through mergers and acquisitions, to support and escort the overseas expansion of Chinese-funded enterprises, and further expand the service map of Guardforce. Second, focusing on high-quality overseas customer resources and combining the advantages of the mature smart city system industry in China, it will form an efficient linkage, promote the mature smart security, electronic monitoring products and technologies in China to high-quality overseas customers, and provide customers with professional intelligent equipment and smart city overall solutions, further enhancing the company's comprehensive competitiveness in overseas security operation services.

Optimize domestic layout and deepen the application of artificial intelligence

In the domestic market, Zhong'an Ke combines its traditional advantages, gradually adjusts its business direction, and focuses on the fields of smart medical care and network information security. With the development of the artificial intelligence industry, the company attaches great importance to the opportunities for the artificial intelligence industry to empower future industries of listed companies. In the second half of 2023, the company jointly established an artificial intelligence research institute with Wuhan University to accelerate the in-depth development of artificial intelligence application scenarios. This year, the company and Yixing City in Jiangsu Province jointly invested in the construction of the "Yixing City Artificial Intelligence Computing Center", and planned to explore the vertical application of artificial intelligence technology in the data industry field through joint cooperation of universities, governments, and enterprises, focusing on the vertical application in the smart city field and market opportunities such as the inclusion of government data assets in the statement.In the field of intelligent product manufacturing, the company focuses on the research and development and application breakthroughs of artificial intelligence products, deeply integrates with market demands, promotes the intelligent industrial upgrade, and empowers the company's future domestic intelligent business, thereby continuing to expand the scope of cooperation with industry-renowned brands such as Huawei, Dahua, Hikvision, Honeywell, and Sunac. In the future, the company will actively integrate its differentiated advantages in various fields, strengthen the synergy of domestic and international business industries, thereby enhancing the company's overall core competitiveness.

Actively manage market value and enhance investor returns

The company places great importance on market value management and is committed to promoting market value growth through good operating performance and the enhancement of intrinsic value. On the one hand, the company actively optimizes its industrial layout, strengthens its main business market position, accelerates business synergy, cultivates emerging momentum, and maintains a good trend of overall sustained growth in its main business, laying the foundation for the company to continue to achieve high-quality development in the future. On the other hand, the company highly values communication with investors, actively conveys information about the company's production and operation to investors through regular performance briefings, investor research, telephone exchanges, and other means, providing necessary references for investors' decisions.

Recently, as market sentiment warms up, the company will also actively respond to market demands by further improving the transparency of information disclosure, increasing the frequency of investor exchanges, enhancing investor returns, and actively seeking suitable targets for mergers and acquisitions, actively doing a good job in various business operations and continuously improving market value management.

This telephone conference not only demonstrates the steady development of Zhongan Ke in the security and security industry but also provides investors with a good opportunity to deeply understand the company's future development strategy. Zhongan Ke will continue to adhere to the concept of honest operation and innovative development, strive to achieve high-quality development, and bring greater confidence and expectations to investors.