Investor Relations | Chuling Shares' "Fusion" Technology Innovation Boosts Edge Computing Network Development
Recently, Mr. Xu Ping, Secretary of the Board of Chuling Shares, and Ms. Zhu Shuangshuang, Securities Affairs Representative, held an in-person meeting with institutions including Zhongjin Yinhai (Hong Kong), CITIC Securities, Tianying Capital, and Tianyan Shengze.
During the interactive discussion, the research institution gathered information on the company's overall situation and businesses such as computing-network convergence and cloud-network convergence:
1: What progress has the company made in the computing power network sector?
Answer:As AI large models increasingly drive commercial applications and national digital transformation accelerates, demands on computing power networks continue to rise. The company is fully committed to seizing opportunities in this field and has recently achieved breakthroughs in integrated computing-network and cloud-network projects. Notably, our edge intelligence connectivity unit secured its first PON SD-WAN intelligent gateway contract—a product built on the core principle of cloud-network convergence. It delivers multi-scenario services for government and enterprise clients, including internet access, cloud entry, network construction, and acceleration via a one-line-multiple-carrier approach. Additionally, the company's edge data sensing collaboration with carriers focuses on building computing-power network quality perception capabilities. This includes an end-to-end business perception monitoring system that meets quality monitoring requirements, enabling comprehensive collection and analysis of computing-power network quality data.
2: What are the main reasons for the company's low net profit margin? Where is the R&D investment primarily directed?
Answer:The company's net profit margin is relatively low due to modest revenue and significant period expenses, particularly in R&D. As a high-tech enterprise, the company invests heavily in developing data platforms for smart emergency response, smart agriculture, and digital rural initiatives. Additionally, we allocate substantial annual R&D funding to support new technologies and products—such as OTN and SPN—that align with evolving 4/5G network upgrades, ensuring our technological leadership. We also conduct research on key technologies aligned with our strategic roadmap.
3: Which types of convergence does the company's converged gateway product primarily refer to?
Answer:The Integrated Enterprise Gateway series is an all-in-one internet terminal designed for small and medium-sized enterprises (including shops and hotels) to meet their communication, office, and entertainment needs. It combines the functions of a fiber modem, router, landline phone, TV, and industry-specific smart applications. The gateway provides a comprehensive access solution that includes Internet TV, traffic management,上网 behavior control, enterprise applications, and more. By leveraging "1 broadband lines + 1 boxes + 1 platforms + N applications," it streamlines enterprise digitalization, builds a unified intelligent office ecosystem, and enables a single gateway device to "manage all enterprise connections."
4. What are the data mining capabilities and their key advantages?
Answer:The company's "Industry-Specific Small-Form-Factor DPI" fully covers edge networks, industrial internet, dedicated lines, enterprise networks, residential broadband, and IoT across 2G/3G/4G/5G operators, along with diverse data sources for collection and parsing. Built on fully self-developed DPI equipment, it delivers industry-leading processing performance. Our DPI platform has accumulated tens of thousands of protocol signatures. New protocol identification can be deployed in as little as one week for simple cases or up to a month for complex ones.
5 - Is there a competitive relationship with Huawei, FiberHome, and ZTE?
Answer:Huawei, FiberHome, and ZTE primarily focus on the core network and transport network. Our company specializes in the access network, which is closer to the user side—i.e., the edge—delivering edge access and applications.
Will 6 revenue and collections increase in the fourth quarter?
Answer:Revenue and collections from the carrier market follow a seasonal pattern, with Q4 typically outperforming the first three quarters, consistent with industry peers. Revenue and collections in the government and enterprise sector are settled in batches based on project progress.
