“Science and Technology Board Daily” reporter noted that in the second half of this year, Kaios PHM predictive operation and maintenance management platform was selected into the professional (technical) list of key industrial Internet platforms in Jiangsu Province. At present, the platform has provided more than 35 solutions in the field of operation and maintenance in different industries such as steel, automobile, new energy, wind power, and chemical industry, and tens of thousands of access equipment.

According to unaudited first-half financial figures, Kaios is now running at a slight loss. As of June 30, 2023, the company’s total assets were nearly 125 million yuan and liabilities were 46.791,700 yuan. In the first half of the year, the revenue was 24,796,700 yuan, and the net profit was -2,216,900 yuan. The audited revenue in 2022 was 63.0949 million yuan, and the net profit was 4.8529 million yuan.

In response to Gaohua’s intention to go deep into the field of industrial Internet sensors, Chen Xin said, “The company plans to cooperate with Kaios to research highly reliable, multi-sensor acquisition terminals with edge computing functions for key industry areas, enrich the company’s product line, to enhance the company’s competitiveness in key industry markets, and increase the demand for the company’s sensing device products.”

It should be noted that from the current product line of Gaohua technology, there is a relatively single product structure. As of the first half of the year, the revenue of high-reliability sensors was 120.4 million yuan, accounting for 83.52% of the total revenue; The revenue of sensor network system was 21.79 million yuan, accounting for 15.12% of the total revenue. The company’s high-reliability sensors are currently based on military sales revenue, accounting for more than 70% of total revenue.

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From this point of view, Gaohua Technology’s investment in Kaios is not only to use algorithms to improve the networking and intelligence of sensors and their systems, but also to help the company further cut into the field of industrial sensors.

Avic Securities said that China’s industrial sensor market has a broad space, and the improvement of domestic capacity is an important driver for the development of domestic industrial sensors. At present, the scale and level of sensor development in the United States, Germany and Japan are leading the world, with a combined market share of nearly 70%. Compared with the more than 20,000 product varieties produced worldwide, only about a third of them are produced in China.

The end customers of Gaohua technology industrial sensors are mainly large industrial enterprise groups such as CRRC Group, Baowu Group, Zheng Coal Machine, Sany Group and Xugong Group. However, the competition in the industrial field is also more fierce, not only foreign manufacturers such as Danfoss and Drucker, but also domestic manufacturers such as Ningbo CRRC Times Sensing Technology Co., LTD., Kangyu Measurement and Control Instrument Engineering Co., LTD.

From the company’s research and development investment data in recent years, research and development investment in the first half of this year is less than expected. In the first half of this year, research and development expenses were 18.66 million yuan, accounting for 12.95% of revenue, an increase of only 0.04 percentage points compared with the same period last year. From 2019 to 2021 and in the first half of 2022, the company’s R&D expenses were 21.582 million yuan, 20.552 million yuan, 26.9633 million yuan and 16.9984 million yuan, accounting for 16.57%, 13.16%, 11.91% and 12.91% of the current operating income, respectively. Gaohua technology has not maintained an increasing trend in R&D investment year by year.