A few years ago, when we silently took out his mobile phone in public places to search around the free WiFi, who would have thought, this one small action can "rub" a much favored capital, the overall market size of over 1 billion yuan in the market (source: iResearch) - business WiFi.
But is this really a profitable business? In February 27th, not long ago was listed as "air WiFi concept" brilliant science and Technology (002296, SZ) released 2017 annual results letters, revenue of about 528 million yuan, representing a growth of 2.59%, net profit attributable to shareholders of listed companies of about -1.51 billion yuan, compared with the same period last year fell sharply 227.37%.
Daily economic news (micro signal: nbdnews) reporter noted that before that, the company also made provision for its two commercial WiFi enterprises to reduce its value to about 180 million yuan.
Two share companies detract and drag their performance
2017 income does not increase profits, brilliant technology in February 27th disclosed the results of letters did not specify the reasons for the decline of its profits, said that only in the final report of available for sale financial assets, long-term equity investment, goodwill to conduct a comprehensive examination alone, the provision for impairment of assets of about 217 million yuan in accordance with the relevant principles.
Brilliant technology had forecast the 2017 annual performance in the 2017 three quarterly report, but the forecast was lowered in January 31st for two reasons.
First, the seven color Tongda involves the dispute of financing lease debt, which has affected its production and operation. It is estimated that the future recoverable amount of the asset is 0 yuan.
Second, the continuous loss of Seyfert technology 2015~2017 years, company to evaluate its performance in the future 3~5 years, and preliminary estimates of the investment amount of Recyclable.
Colorful accessibility and Seyfert science and technology are the brilliant technology layout of the 2015 "big traffic WiFi" key enterprises. Brilliant technology 2014 tracking rating report, a seven color access wholly owned subsidiary, Beijing first hot Information Technology Co., Ltd. (hereinafter referred to as a hot topic), mainly engaged in WiFi mobile Internet operation services, bus WiFi business has a high market share. While seyfer technology is committed to wireless network for high density crowd covering technology development and operation of services, mainly in the scene layout of the train station.
For two years, brilliant technology has increased the investment of the two companies, but failed to obtain good investment returns. As of 2017 semi annual report, brilliant technology on colorful Tongda holding 9.03%, 33% stake of seyfer technology. But combing the 2015 annual report, 2016 annual report, 2017 annual report, seyfer technology were net profit was -1071.44 million, -2294.91 million, -1408.69 million, but due to a smaller proportion of colorful Access Holdings did not have a significant impact on the investment income of listed companies.
Colorful accessibility and Seyfert science and technology are the brilliant technology layout of the 2015 "big traffic WiFi" key enterprises. Brilliant technology 2014 tracking rating report, a seven color access wholly owned subsidiary, Beijing first hot Information Technology Co., Ltd. (hereinafter referred to as a hot topic), mainly engaged in WiFi mobile Internet operation services, bus WiFi business has a high market share. While seyfer technology is committed to wireless network for high density crowd covering technology development and operation of services, mainly in the scene layout of the train station.
For two years, brilliant technology has increased the investment of the two companies, but failed to obtain good investment returns. As of 2017 semi annual report, brilliant technology on colorful Tongda holding 9.03%, 33% stake of seyfer technology. But combing the 2015 annual report, 2016 annual report, 2017 annual report, seyfer technology were net profit was -1071.44 million, -2294.91 million, -1408.69 million, but due to a smaller proportion of colorful Access Holdings did not have a significant impact on the investment income of listed companies.
At present, brilliant technology has formed a traffic WiFi layout covering public transport, railways, aviation and other fields, but it has not been effective in profitability, even in the field of layout. Will this affect the future development of the brilliant technology "big traffic WiFi" strategy? On the afternoon of February 27th, the daily economic news (micro signal: nbdnews) reporter called the brilliant technology secretaries public telephone, but his investor relations commissioner told reporters that he had no authority to answer relevant questions, with disclosure announcement as the criterion.
It is not unusual for the traffic WiFi enterprise to make profit. For example, at the beginning of 2017, "16WiFi", which provided WiFi services, shut down some of the city's business. Wu Chao, chief analyst of CITIC communications industry, told reporters that "at present, the business mode of transportation WiFi industry is not clear. Besides, traffic price has been decreasing. After 5G rises, we will gradually reduce the dependence on this commercial WiFi."
AI consulting also expressed similar views in the commercial WiFi Industry Research Report in 2015, and considered that slow speed, poor security, and difficult operation in logging are restricting the development of the industry.