On The Eve Of Counselling, The Concept Of "Material Alliance" Was Forced To Be Contacted.

As an intelligent gas meter supplier, the Qinchuan Internet of things Polytron Technologies Inc (hereinafter referred to as Qinchuan material union) is about to take the final exam.

According to the notice given by the Shanghai Stock Exchange, Qinchuan material alliance will be accepted by the first committee of the board of science and technology in December 13th, and this will also become the 112nd company since last year.

In twenty-first Century, the economic reporter found that the nature of Chuang Chuang, the flagship of Qinchuan Union, is the overall solution of intelligent gas, that is, the safety, fairness and intelligence of gas supply and use in the way of Internet of things and software system. According to its introduction, the company's technology level in the field is in the leading position in the industry.

But a lot of gas industry insiders think that compared with other gas meter companies, Qinchuan gas company is still small in scale of income, and the natural monopoly of gas industry and the heavy voice of gas traders, it is still to be observed whether Qinchuan can rely on its technological capability to gain competitive advantage.

"IOT" income is less than 4.

According to its prospectus, Qinchuan union is a technology company engaged in the production and marketing of intelligent gas meters and integrated management software. Its main way is to integrate measurement, intelligent control, data communication and gas meter to provide intelligent fuel gas solution for Gas Co based on Internet of things technology.

As a gas meter supplier, the biggest bargaining chip for IPO is related to the concept of "Internet of things". According to the reporters, the name and business of Qinchuan Union are changing on the eve of listing guidance.

Business data show that in May 2017, Qinchuan group changed the name of Qinchuan science and Technology Development Co., Ltd. for many years in the share reform process, changed "technology" in the original name to "Internet of things", and added "Internet of things" in business.

In September 13th, only four months later, Qinchuan material union completed the record in Sichuan Securities Regulatory Bureau under the guidance of Huaan securities.

It was also on the eve of entry into the counselling that Qinchuan Wulian attracted the entry of many venture capitalists including "Chengdu Xiangcheng Xingshen Venture Capital Co., Ltd.".

"Renaming from industry and commerce, to attracting venture capital, and then to the counseling period were completed in less than half a year. This series of actions is obviously to prepare for the listing of the company." An investment bank in Shanghai said.

Although Qinchuan associated with the name of the company is called "the union of things", but in the first half of 2019, the income from the IOT intelligent gas meter still accounted for only 37.65% of its operating income, while its income of up to 53.84% still came from the IC card intelligent gas meter.

Nevertheless, its income from the "Internet of things intelligent gas meter" is indeed increasing. Its ratio in 2017 and 2018 is 8.68% and 27.3% respectively.

A gas industry personage said that the gas meter has gone through three stages of development, one is the traditional mechanical gas meter, the disadvantage is that it needs to carry out manual "meter reading". The two is the intelligent gas meter. It is also adopted by most Gas Co at this stage, including IC card, CPU card, radio frequency card and many other modes. Three is the gas meter of the Internet of things, and it is also the direction of the transformation of the gas industry in the future.

According to the above industry sources, in some areas, it is mandatory to replace the new generation of Internet of things gas meters and the elimination or scrapping of old gas meters, which will bring opportunities to replace the Internet of things gas meters.

"At present, some areas are forced to replace the Internet of things gas meter, so there will also be some change rate." A Gas Co member in Beijing also said, "at the same time, some underdeveloped areas may be replaced directly from the original gas meter to the Internet of things gas meter".

White hot competition still exists

In the field of IOT gas meter, Qinchuan WFL will also face more severe competition.

First of all, in terms of volume, Qinchuan material alliance is still relatively limited compared with other competitors. Prospectus data show that Qinchuan Wulian first half of 2019 revenue, net profit to the parent company were only 101 million yuan and 17 million yuan, if compared with similar companies gold card intelligence, the two data are only 12.66% and 9.29% of the latter's same period.

"Because the gas industry is a relatively natural monopoly industry, the enthusiasm of service quality and technology renewal is not so strong, but for the upstream suppliers, Gas Co is a stable, not too big business risk customer, so Gas Co's position is also strong." A Gas Co source in North China said, "this has also caused some Gas Co customers to form more accounts receivable. In such a market environment, resources tend to gather together with leading companies."

The characteristics of this industry also made Qinchuan intangible assets accumulated a large proportion of accounts receivable.

Prospectus shows that at the end of 2018 and the end of the first half of 2019, the scale of accounts receivable of Qinchuan intangible assets amounted to 155 million yuan and 178 million yuan respectively, accounting for 76.29% and 174.96% of the total revenue in the same period. The turnover days were 241.72 days and 299.17 days, which were significantly higher than the 187.26 days and 225.86 days of the comparable company's average.

In addition, there is uncertainty in whether the gas meter of the Internet of things has enough commercial iteration requirements.

Qinchuan Wulian said that the gas industry needs a "process" to change the gas meter of the Internet of things.

"Because IOT smart gas meter increases the cost of new NB modules and communication services, and with the upgrading of its functions, the performance requirements of key components such as main chips and circuit boards are raised, so that the overall cost of products increases and the selling price is higher." "Because the IOT intelligent gas meter market is in the import stage and the price is higher, gas carriers have an acceptance process," Qin Chuan said. In addition, the replacement period of gas meters is longer, so it will be a gradual replacement process for different gas carriers to import from products to bulk purchases.

"The technological content of intelligent gas meters based on the Internet of things is available, but whether there is a larger commercial base in this vertical field, and whether or not it is consistent with the location of the science and technology board is still to be observed." An energy industry analyst at a brokerage firm in Beijing said.

But Qinchuan Wulian still thinks, "the future IC card intelligent gas meter sales will gradually decline, and there is a certain substitution relationship between the IOT intelligent gas meter."

"The replacement of Gas Co in the future will become a new generation of gas meter, so the market space of such business is indeed an objective existence." A gas supplier close to Sichuan said frankly, "but the supply category is single, only involving the gas field, so its technical barriers are relatively limited, and the complexity of the data needed is relatively low. Therefore, it may face fierce market competition."