2. Analysis of core competitiveness 1. R&D and product advantages Network access network technology presents the characteristics of diversification, short iteration cycle, and simultaneous coexistence of multiple technologies. The company focuses on radio and television network access networks, closely following customer needs, and continuously It has invested in research and development to form industry-leading solutions covering major technical routes, and is one of the leading companies in the industry.According to the characteristics of the coexistence of multiple technologies in the radio and television network, the company has developed a large number of "cross-technical route" products customized for radio and television operators, such as EPON+EOC technical route EOC central office by taking advantage of its own advantages of fully mastering mainstream access network technologies. , 10GEPON+HINOC integrated products, ONU under the FTTH technology route, etc.These integrated products with "cross-technical routes" designed as a whole can effectively reduce network construction costs and facilitate network maintenance by operators.The continuous emergence of new solutions and new products is a solid foundation for the company's performance, which has established the company's leading position in the field of radio and television access networks.Along with the technical service outsourcing needs and value-added application service opportunities of radio and television operators in the process of network planning and reconstruction, the company has successively involved in the comprehensive network management, planning and design, and engineering construction of radio and television networks; In view of the business opportunities in the industry, we have successively launched a series of solutions such as video surveillance, emergency broadcasting, smart safe community, and smart tourism to assist operators in promoting customer inbound services, creating new revenue growth points for operators.The company actively uses the company's deep understanding of the radio and television network and talent pool, as well as the customer resources formed over the years, from equipment to systems, technical services, and forms a comprehensive solution in which "products + services" rely on and promote each other.Relying on strong independent research and development capabilities and leading technological innovation capabilities, the company has made advance deployments for upcoming market hot spots at various key points in the development of the industry, accumulated a good reputation with excellent product performance and service quality, and successfully seized development opportunities. , so as to maintain competitiveness in the process of industry reshuffle brought about by the iteration of technical routes and changes in the market environment.The company has continued to invest in research and development, continuously enhanced its research and development capabilities, and accumulated rich intellectual property rights.As of the end of the reporting period, the company and its subsidiaries had a total of 82 patents and 110 software copyrights.Several technical personnel of the company presided over or participated in the formulation of 2 national standards, 4 industry standards and 1 industry standard.2. Market and Service Advantages Historically, radio and television networks have the characteristics that operators in each jurisdiction have their own systems and operate independently. Equipment procurement is scattered and the industry concentration is not high.Since 2009, under the promotion of the State Administration of Radio, Film and Television, the integration of "one province, one network" has been gradually implemented.After the integration of the provincial network, the provincial network radio and television network company, as the main body of operation and investment at the provincial level, has changed the construction pattern of the province, city and county of the radio and television network in the past.The bidding shortlisting model of unified procurement of equipment has changed the sales model of enterprises in this industry. Previously, the purchase and sales relationship was established directly with the scattered operators in various regions, and the supplier first entered the shortlist of provincial operators through open bidding, and then There is an opportunity to conduct business negotiations with local and municipal operators under the provincial network and achieve final sales. The market entry threshold is greatly improved, and it is difficult for ordinary small manufacturers or new entrants to obtain the qualification of provincial network operators, thus increasing industry concentration. Spend.The company has seized the development opportunities brought by the integration of the provincial network, and has expanded its market share and established a brand effect through extensive participation in the shortlisted bidding of several provincial radio and television operators.Up to now, the company has been shortlisted in the bidding of 24 provincial-level radio and television network companies across the country. Its products and services cover most regions of the country. It has established a good brand effect through a large number of successful project cases, laying a solid foundation for the company to further expand its business. Base.At the same time, the company deeply understands the development history of radio and television operators, fully appreciates the value of technical service capabilities and service awareness to radio and television operators, and has established a strong marketing network system in the shortlisted provincial networks. Marketing personnel and technical service personnel work together in Harbin, Shenyang, Shijiazhuang, Zhengzhou, Chengdu, Chongqing, Wuhan, Nanchang, Fuzhou, Nanning, Beijing, Ningbo and Guangzhou have established localized service agencies or dispatched service representatives to strengthen localized marketing services and technical service capabilities. It is one of the enterprises with the most extensive network and the strongest service capability, which fully meets the needs of localized, customized and whole-process follow-up services of radio and television network operators.3. Brand and Qualification Advantages The network transmission equipment and data communication products produced by the company have obtained the network access certificate for radio and television equipment, the network access license for telecommunication equipment, and the China National Compulsory Product Certification. In addition to the various qualifications of equipment products, the company has also obtained the security engineering enterprise design, construction and maintenance capability certificate (level one), CMMI (software capability maturity model integration) level three evaluation certification, Important qualifications for projects and software such as information security management system certification play an important role in providing customers with more mature industry solutions and higher-quality services, improving information technology service capabilities, and improving information security management systems. It will help the company to further develop the smart IoT application business, which is of great significance to the company's long-term sustainable development.4. Talent advantage The company's main business focuses on continuous development of network communication transmission and smart IoT business, and has certain brand influence and talent reserve advantages in related fields.Since 2021, the company has implemented a restricted stock incentive plan, and the incentive objects include company directors, senior managers, middle-level managers, core technical backbones, and core business backbones, further establishing and improving the company's long-term incentive mechanism, attracting and retaining. Excellent talents, fully mobilize the enthusiasm of the company's core team, effectively combine the interests of shareholders, the company's interests and the personal interests of the core team, so that all parties can pay attention to the company's long-term development and ensure the realization of the company's development strategy and business goals.During the reporting period, the company's employees were awarded the honorary titles of "Wuxi Youth Post Expert" and "Wuxi May 1st Labor Medal" respectively.The company has always insisted on creating an open and equal organizational atmosphere and adhered to the employment concept of "value creation as the foundation, stage for those who want to do things, opportunities for those who can do things, and treatment for those who do things".In the first half of 2022, the company will continue to combine self-cultivation and talent introduction, with performance contribution and value creation as the standard, strengthen performance management, match the talent promotion and elimination mechanism, optimize the construction of talent teams at various majors and levels, and continue to optimize the company's talent team structure. , improve the business level.