Reconstruction Of "Invisible Champion": Detailed Explanation Of 5G New Track By CEO Gao Nianshu Of Yaxin Technology

Aixin technology, which has always been a low-key telecom software leader, has been paid close attention to by the capital market and the industry since this year.

In early September, asiaintech was officially included in the Hang Seng Composite Index, Hang Seng Hong Kong stock connect index and Hang Seng Internet technology industry index, and was also included in the Hong Kong stock connect. Earlier, China Mobile subscribed 182 million new shares of asiaintech, accounting for about 20% of the total shares, and completed the IPO and equity delivery on September 2, making China Mobile the second largest shareholder of asiaint.

The inclusion of enterprises in the Hong Kong stock connect generally means the improvement of capital liquidity and the revaluation of company value. In fact, since the listing of Asiatic technology in Hong Kong in 2018, it has begun to reconstruct the new track internally. Besides the core BSS business (including billing and other business support systems), it has opened three new services, namely 5g OSS, dsaas digital operation and vertical enterprise cloud.

The financial report shows that in the first half of 2020, the business income of asiaint technology is about 2.504.1 billion yuan, up 1.0% year-on-year, and the net profit is about 232.6 million yuan, with a year-on-year growth of 228.8%. Among them, the revenue of new business is 297 million yuan, up 77.7% year-on-year, and the proportion of new business income is pushed up to 9.2%. This also means that BSS business still accounts for more than 90% of its revenue at present, but the new business is growing rapidly under the catalysis of 5g and cloud.

Recently, Gao nianshu, CEO of AsiaInfo technology, said in an exclusive interview with the 21st century economic report: "we made a plan last year to reach 10 billion business scale by 2024, and the proportion of new business is expected to account for 40% - 50% He also told reporters that now is to explore the development of new business with the mentality of a start-up company, "we should do it as if walking on thin ice. There is no peace of mind. Any growth is not easy. There is always a balance between the growth of new business and the overall profit and loss of the company."

5g's "wings"

Asiense was officially established in 1993. Under the leadership of Tian Suning, the founder, asiaine got the first batch of orders for dial-up Internet access in China and grew rapidly. Asiense, also known as "Internet architect", became the first Chinese high-tech enterprise listed in the United States. Since then, during the industrial wave change, CICA has carried out privatization again. Until 2018, it chose to re list in Hong Kong stock market with the technology of Asia information technology.

At present, the strategic line of asiaint technology is very clear. On the one hand, it continues to consolidate the original telecom business, while the core BSS business is still robust; on the other hand, it opens up new directions in 5g and cloud computing markets.

"After 5g came, for to Company B has a pair of wings, and its business scope is wider and deeper. For example, in the communication network, after 5g comes, sliced network or private network of some industries can be more flexible to provide a secure and proprietary communication network for the vertical industry, "Gao nianshu told reporters," for example, the energy industry has more demands on this kind of private network, including Including power generation and power transmission, they have high requirements for the security of the network and data. "

In his opinion, 5g private network will be popularized on a larger scale this year, but "there will not necessarily be large-scale 5g applications this year, and a relatively large outbreak may have to wait until 2022. Now we are all in the stage of layout. We are looking for benchmarks and models. The scale of next year may be larger. It is estimated that the real outbreak will not be possible until the second half of 2021 or even 2022 at the earliest. "

However, 5g has brought new features such as slicing and new scenes of vertical industry, which have put forward new requirements for telecom software enterprises. Asiaint technology has also entered the field of OSS (business support system) business, digital operation business and cloud service provider from BSS. Its products also include AI, billing, PAAS platform, network intelligent products, etc.

At the same time, the cooperation between Asiatics and operators is also more in-depth. For example, China Mobile's equity participation is of great significance to both sides. Many people in the communication industry told the 21st century economic report that in exploring the future development of 5g business, mobile equity can enhance the cooperation between the two sides, better build 5g multi dimension billing system, improve the level of enterprise digital operation, and jointly expand the government enterprise business market Field. At the same time, Asia letter Technology said that this does not affect the cooperation with the other two operators.

How to run a new track?

"It is true that we are a leader in the BSS industry, but if we were confined to this field, we would have seen the ceiling. But it is impossible to leave overnight. We are based in the communication industry and look for new growth points. The new business is also based on the products polished after the operator market, and then used in other industries. " He said.

Specifically, Asiatics has planned three growth points for itself. One is the field of Telecom OSS. At present, Asiatics has launched products and solutions for network intelligence and virtualization, network planning, network optimization, network customer experience management, network management and layout and other series of products. "It is a general trend for some IT companies to participate in OSS. On the one hand, it is necessary to integrate B domain and O domain (data domain), and on the other hand, it technology needs to be more integrated with communication technology," Gao told reporters

The second growth point of asiaint technology is the SaaS tool based on data operation. First of all, this can be used in the field of operators. In the view of high education, it is difficult to drive revenue by new users with high penetration rate and high saturation rate. Therefore, it is necessary to improve value management. In other words, we should recommend thousands of people and thousands of faces according to customer needs and scenarios.

The third growth point is cloud services in vertical industries. It is reported that asiaintech has successively become a partner of Alibaba cloud MSP and Huawei cloud CSSP, providing multi cloud management platform and cloud relocation tools, etc., and has expanded its business in key industries such as finance, transportation, postal service, energy, retail and government.

In recent years, giants have invested in 5g and cloud computing hardware infrastructure, but whether there are enough SaaS applications to meet the needs of enterprises is a more critical issue. In foreign countries, SaaS track is relatively mature, while domestic SaaS is just starting, in which the software ecology has begun to establish, and the market is huge. Various companies cut in from different angles, and have not yet run out of the giants.

For asiaint, how to transplant more than 500 product capabilities to other industries is a big test. "We may not be able to directly move the product to other industries, but it has considerable reusability. The common parts of the base can be copied, and even can reach 60% reusability," Gao nianshu told reporters. "We are not starting from scratch. We can provide services for this industry by combining the operation of technology and business in the middle and recruiting new industry experts."

Reconstruction of CICA

In the eyes of the outside world and in the financial report data, Asiatic mainly provides the core business support system for the three major operators. However, within asiaintech, Gao has already broken the original system, which means "a second venture". The reconstruction of asiaint technology can be traced back to 2017, when it began to redefine the strategy, including how to improve the operating value of operators and how to expand new customers outside the operators.

Gao nianshu introduced to the reporter that the new business of dsaas really began to land in 2018, OSS was proposed in 2018, product development was conducted in 2019, and business was started in 2020. The real starting point of the new strategy is in 2018. "I have done some exploration before, but it is relatively unclear. At that time, the company did not divide into big B enterprises and small and medium-sized enterprises, and all markets were involved. I think the problem at that time was in the market of small and medium-sized enterprises, because it adopted the same method as the big B market. "

As for small and medium-sized enterprises, the cost of doing customized service for small and medium-sized enterprises has been increased, which has led to the increase of the cost for small and medium-sized enterprises. So now we clearly choose to focus on the big B vertical field and provide a platform level service for small and medium-sized enterprises. " Gao nianshu said.

Although the market of large-scale b-end enterprises is huge, it is not easy to penetrate into new industries. Gao read his book and said that he needs to understand the production process and internal collaborative norms of large industries very deeply. Sometimes it takes a lot of time and the complexity is higher than expected.

According to the reporter's understanding, asiaintech is also gathering industry experts with profound understanding of various industries, and will also carry out some acquisition actions based on industrial collaboration.

On the other hand, it is difficult to balance the short-term and long-term interests of the company.

Gao's answer is also very clear, maintaining stable growth in the process of balance, "first of all, the company should live well, so it is prudent to do new business. I need to calculate the balance between growth rate, cost and profit. If it is not done well, I will fall into a big pit and may not be able to climb out in the future. Therefore, the speed of development is not required to be too fast. We can improve the development speed within the scope of control. Under this speed, the company has a certain profit space. Now, the plan is to take both into account, and the performance in the past two years is growing steadily. "

From the perspective of performance, since 2017, asiaint technology has turned losses into profits, and its revenue and net profit have been improved since 2018. Next, how to recreate asiaint in the 5g and cloud world still needs to be tested.