Minister of Industry and Information Technology Jin Zhuanglong: Cultivating a New Model and Business Model of "Beidou+" Source: Transferred from China Securities Journal

On October 26, Jin Zhuanglong, secretary of the Party Leadership Group and minister of the Ministry of Industry and Information Technology, said at the second Beidou Scale Application International Summit that the Ministry of Industry and Information Technology would actively expand the application of Beidou in emerging fields such as the industrial Internet, the Internet of Things, and the Internet of Vehicles, help industrial enterprises to "smart change and digital transformation", foster a new model and new business model of "Beidou+", and promote the formation of new quality productivity.

Creating distinctive industrial clusters

Jin Zhuanglong stated that the Chinese government attaches great importance to the development and large-scale application of the Beidou industry. Through unremitting efforts, China's Beidou has become a world-class satellite navigation system, with fully validated high-precision, short message and other characteristic service capabilities, possessing global service capabilities. In 2022, the core industry scale of Beidou in China will exceed 140 billion yuan. Beidou Plus and Beidou Plus are widely used in transportation, communication, agriculture, eteorology, electricity and other fields, helping various industries accelerate their digital and intelligent transformation, forming a good situation of deep application and large-scale development.

The Ministry of Industry and Information Technology will implement the deployment of the National Conference on the Promotion of New Industrialization, organically combine the construction of a manufacturing power with the development of digital economy, industrial informatization, etc., vigorously promote the spirit of Beidou in the new era, aim at the direction of industrial development and consumption upgrading, coordinate the improvement of supply capacity and large-scale market-oriented applications, and comprehensively assist China's Beidou in better serving the world and benefiting humanity.

Jin Zhuanglong stated that efforts will be made to strengthen and expand the Beidou industry. Focusing on the development of the entire industry chain including Beidou chips, modules, and terminals, we will deepen collaborative innovation among industry, academia, research, and application, strive to increase variety, improve quality, and create brands, break through a group of core technologies and key products with independent intellectual property rights that lead industrial development, and cultivate a group of leading backbone enterprises with strong innovation capabilities. Support the development of local Beidou industry clusters and create a number of characteristic industrial clusters.

Accelerate the application in key industries. Fully utilize the high-precision spatiotemporal reference information of the Beidou system, accelerate the integration and innovation of Beidou with mobile communication, inertial navigation, high-precision vision and other technologies.

Promote the upgrading of mass consumption. Implement the "Several Opinions on the Promotion and Application of Beidou in the Field of Mass Consumption", focus on typical products such as smartphones, wearable devices, car terminals, and shared two wheelers, expand the scale of terminal applications, accelerate the construction of application infrastructure, and promote the formation of more high-quality Beidou time and space services. Implement the Beidou Mass Consumption Application Promotion Action and cultivate a batch of new products and applications that are user-friendly and easy to use.

Jin Zhuanglong also proposed to promote the international development of Beidou. Support domestic enterprises to deepen cooperation with global suppliers, encourage joint research and development between Chinese and foreign scientific research teams, and welcome more foreign-funded enterprises to participate in the development of Beidou. Strengthen close cooperation with international organizations such as 3GPP to promote the entry of Beidou into the international standard system. Facing emerging market countries and developing countries, we will strengthen market docking and exchange of scientific and technological talents, promote the joint construction of the "the Belt and Road", and inject new momentum into global common prosperity.

Significant comprehensive benefits

According to the White Paper on the Development of China's Satellite Navigation and Location Services Industry in 2023, with the implementation of relevant national and industry policies and plans, as well as the increasingly strong demand for industry and regional economic transformation and upgrading, the application of "+Beidou" has developed rapidly, significantly empowering traditional industries.

The white paper points out that Beidou is achieving deep and organic integration with various applications, further developing towards industry depth and regional development. The Beidou application service model of "industry+region" and the Beidou integrated application system are gradually forming.

On the one hand, the application of Beidou in the industry continues to deepen, forming a deep integration trend with various applications, constantly improving the level of digital and intelligent development in the industry, and continuously enhancing the industry's fine management and security controllability capabilities; On the other hand, the application of Beidou, combined with the high-quality development needs of the region, actively expands the application of Beidou's spatiotemporal information and location services in areas such as vehicle road coordination, unmanned distribution, intelligent transportation integration, intelligent infrastructure construction, and intelligent urban-rural construction. It strongly supports major regional development strategies and injects new momentum into regional construction and economic development transformation and upgrading.

Taking industries such as transportation, disaster prevention and reduction, agriculture, electricity, gas, petroleum and petrochemicals as examples, the spatiotemporal information provided by Beidou has penetrated into the most basic business processes, and the scale of promoting the application of Beidou equipment has exceeded tens of millions, achieving significant economic and social benefits.

For example, the Beidou application rate for monitoring key operating vehicles is 100%, and the use of Beidou to supervise drivers' safe and compliant driving has significantly reduced the incidence and mortality rate of traffic accidents; The Beidou high-precision gas leak detection technology has supported 150 gas companies nationwide to detect over 700000 kilometers of gas pipelines, significantly reducing the risk of safe operation of gas pipelines; More than 22000 hidden disaster points in 17 provinces in China have installed low-priced and low-energy Beidou landslide warning devices, achieving "civil defense+technical defense", enhancing disaster warning capabilities, and effectively ensuring the safety of people's lives and property; The application of Beidou in agricultural machinery is deepening towards unmanned farms, with significant effects on increasing production, energy conservation, and income generation; Beidou positioning and navigation, time and frequency synchronization, and short message communication applications have been integrated into more than 20 business scenarios in the power industry, and will continue to support the digital transformation and development of the power grid in the future; Oil companies are vigorously promoting the use of Beidou to replace GPS devices, and closely integrating various aspects of the petroleum and petrochemical industry. They actively apply Beidou to fully empower the digital and intelligent development of petroleum and petrochemical production and construction.

Actively layout the Beidou industry

With the comprehensive construction of the Beidou system, in recent years, all parties have been accelerating their layout in the Beidou field.

Taking Hunan, the host city of this summit, as an example, Hunan attaches great importance to the development of the Beidou industry, fully leverages the advantages of Beidou technology as a source, accelerates the implementation of the ten major projects for deepening application, continuously expands the industrial scale, continuously produces innovative achievements, continuously strengthens platform support, and continuously optimizes the industrial ecology.

In 2022, the total output value of the Beidou industry in Hunan Province reached 38 billion yuan, a year-on-year increase of 34%. Currently, Hunan is anchoring the beautiful blueprint of "three highs and four new", accelerating the construction of a "4 × 4" modern industrial system, comprehensively expanding the application fields and scale of Beidou, striving to increase the industrial scale to about 100 billion yuan within three years, and building it into a national Beidou technology innovation leading zone, Beidou scale application demonstration zone, and Beidou industry high-quality development cluster, forming an internationally competitive and domestically leading industrial cluster.

Hubei Province has issued the "Three Year Action Plan for Breakthrough Development of Beidou Industry in Hubei Province (2023-2025)", which proposes that the market target is to create 1-2 leading enterprises with a scale of over 5 billion yuan, 5 leading enterprises with a scale of over 1 billion yuan, cultivate 8 local Beidou listed enterprises, cultivate a group of "specialized, refined, unique and new" and "single champion" enterprises in Beidou sub fields, and attract a group of Beidou related enterprises to settle in Hubei.

Listed companies continue to increase their layout in the Beidou industry. On the evening of October 18th, Haige Communication announced that the company had issued 177 million A-shares to specific targets, raising a total of 1.855 billion yuan. The capital raising for this fixed increase is planned to be invested in three projects, including 800 million yuan for the "Beidou+5G" communication and navigation integration R&D industrialization project, 500 million yuan for the unmanned information industry base project, and 550 million yuan for the Tianshu R&D center construction and satellite Internet R&D project.

Beidou Xingtong has previously raised 945 million yuan through private placement, which will be used for the development and industrialization of Beidou/GNSS SoC chips for comprehensive PNT applications, high-precision Beidou/GNSS SoC chip development and industrialization projects for vehicle functional safety, research and development condition construction projects, and supplementary working capital.