Analysis Report on Profitability Sustainability of Jiu'an Intelligence

Based on the collected information, I now present an in-depth financial analysis report on Jiu’an Intelligence.

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Guangdong Jiu’an Intelligent Technology Co., Ltd. is an enterprise with nearly 20 years of experience in the intelligent vision field, which submitted a ChiNext IPO application to the Shenzhen Stock Exchange by the end of 2025. The company’s main business covers the production and sales of intelligent camera modules, terminals and supporting equipment, and also provides operational services such as data traffic packages, cloud storage, AI services and advertising services[1][2].

Financial Indicator	2022	2023	2024	Compound Annual Growth Rate
Operating Revenue (100 million yuan)	4.84	6.45	7.80	26.95%
Net Attributable Profit (10,000 yuan)	3,430.63	8,595.04	10,217.11	72.3%
Net Profit After Deducting Non-recurring Items (10,000 yuan)	4,391.64	9,763.65	10,153.86	52.0%
Basic Earnings Per Share (yuan)	0.69	1.75	2.11	-

Data shows that the company achieved double-digit high growth in both revenue and net profit over the past three years, with a net profit CAGR of 72.3%, far exceeding revenue growth, reflecting favorable economies of scale and improved profitability[1][3].

The most notable is the sharp increase in the company’s gross margin. According to the prospectus data, Jiu’an Intelligence’s gross margin reached

in 2024, significantly higher than the industry average[4]. This level is leading in the intelligent vision industry, mainly due to:

1. Product Structure Optimization
   : Increased proportion of high-margin cloud services and AI service revenue
2. Emerging Economies of Scale
   : Improved production capacity utilization, diluting unit fixed costs
3. Supply Chain Integration
   : Increased self-developed proportion of core components

Profitability Indicator	2022	2023	2024
Gross Margin	~45%	~52%	61.16%
Net Profit Margin	7.1%	13.3%	13.1%
ROE	18.40%	35.99%	30.15%

Net profit margin increased from 7.1% in 2022 to 13.1% in 2024, and return on equity (ROE) remained at a high level of over 30%, reflecting strong profitability and shareholder returns[1][3].

According to prospectus and industry analysis data, the total number of employees of Jiu’an Intelligence decreased from

, a decline of over 45%[4][5]. This change has triggered market concerns about the company’s growth quality and development sustainability.

Personnel Category	Change Trend	Proportion Change
R&D Personnel	Stable/Slightly Increased	Significantly Increased
Sales Personnel	Slightly Reduced	Slightly Decreased
Production Personnel	Sharply Reduced	Significantly Decreased

The proportion of R&D personnel increased from approximately 25% to

, and the average salary of R&D personnel reached [4][5]. This change indicates that the company is transforming from labor-intensive manufacturing to technology-driven development.

1. Automated Production Transformation
   : Introduced intelligent production lines, reducing reliance on production workers
2. Outsourcing Strategy Adjustment
   : Outsourced some non-core production links to professional contract manufacturers
3. Efficiency Improvement Driven
   : Improved per capita output through digital management
4. Cost Control Pressure
   : Optimized personnel structure ahead of IPO to improve profit margin indicators

Company	2024 Revenue	2024 Net Profit	Market Position
Ezviz Network (subsidiary of Hikvision)	5.442 billion yuan	504 million yuan	Industry Leader
Tongwei Co., Ltd.	1.162 billion yuan	200 million yuan	First Echelon
Jiu’an Intelligence	780 million yuan	102 million yuan	Second Echelon
Anlian Ruishi	691 million yuan	71 million yuan	Second Echelon
Mirui Technology	743 million yuan	82 million yuan	Second Echelon

Jiu’an Intelligence has an approximately

and compared to industry leader Ezviz Network, and is in a clear disadvantage in terms of scale[2][6].

According to Statista data, the global civilian security market size is expected to reach

by 2029, and the smart security camera market size will increase to USD 24.2 billion. The size of China’s smart security camera market is expected to reach USD 5 billion in 2029, with user numbers exceeding 200 million, leaving considerable room for penetration growth[2][6].

1. High-Growth Track
   : The smart security industry has a CAGR of over 15%, with broad market space
2. Increased R&D Investment
   : R&D expense ratio increased from 13.45% in 2024 to
   15.28%
   in the first half of 2025, continuously consolidating technical barriers[4]
3. Cloud Services Business Momentum
   : Gradually building an AIoT ecosystem, with gross margin of cloud platform services exceeding 70%
4. Optimized Customer Structure
   : Established partnerships with international well-known brands such as Wyze, Xiaomi, and Roku

1. Uncertain Sustainability of Employee Reduction
   : The cost reduction space brought by personnel optimization is limited, and may face rebound pressure in the future
2. Intensified Giant Squeeze
   : Ezviz Network holds a 12.4% market share, and its shipment volume has ranked first globally for consecutive quarters[2]
3. Gross Margin Fluctuation Risk
   : The gross margin fluctuated significantly from 2022 to 2024, reflecting that cost control capabilities need to be strengthened
4. Cash Flow Status
   : Net cash flow generated from operating activities decreased from 57.08 million yuan in 2023 to 35.53 million yuan in 2024[1]

Challenge Dimension	Specific Performance
Technology Conversion	How to convert R&D investment into market competitiveness
Channel Construction	Expanding market space under the monopoly pattern of giants
Talent Retention	How to maintain core team stability after personnel optimization
Brand Building	Enhancing brand premium capability and getting rid of OEM dependence

Considering Jiu’an Intelligence:

• 72.3% CAGR of net profit
• 61.16% gross margin leading the industry
• Continuous increase in R&D investment

The current valuation needs to focus on the balance between its

and .

1. Questionable Growth Quality
   : Sharp employee reduction may overdraw future cost optimization space
2. Insufficient Competitive Barriers
   : Significant technological gap with Ezviz Network
3. Customer Concentration Risk
   : ODM model has high dependence on major customers
4. Uncertainty in IPO Review
   : Has been included in the first batch of on-site inspection list in 2026[2]

Jiu’an Intelligence has demonstrated favorable growth and improved profitability in the intelligent vision track, with the sharp increase in gross margin and rapid growth in net profit as its core highlights. However, the

has triggered concerns about the quality of its profit growth.

From a sustainability perspective:

• Short-term
  (1-2 years): Profitability is expected to be maintained relying on personnel optimization and economies of scale
• Mid-term
  (3-5 years): Facing competitive pressure from giants, technology conversion capability is the key
• Long-term
  (more than 5 years): Need to establish differentiated competitive advantages and get rid of dependence on cost optimization

Investors need to closely monitor the company’s

after IPO, , and to judge the true sustainability of its profit growth.

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[1] Securities Times - Jiu’an Intelligence’s ChiNext IPO Application Accepted (https://www.stcn.com/article/detail/3559045.html)

[2] Sina Finance - With Giants Ahead, Jiu’an Intelligence Brave Challenges for IPO (https://finance.sina.com.cn/jjxw/2026-01-06/doc-inhfkskp8245315.shtml)

[3] Securities Times Data - Financial data in Jiu’an Intelligence’s prospectus

[4] Sina Finance - Jiu’an Intelligence Financial Indicator Chart (https://n.sinaimg.cn/finance/transform/520/w832h488/20251231/26aa-eff405ee5718277f42b0622c4121789a.png)

[5] Sina Finance - Employee Data Comparison Chart (https://n.sinaimg.cn/finance/transform/327/w632h495/20251231/2dd1-fd95f1299dcfb84f2e54984dd41e79b4.png)

[6] Beijing Business Daily - Industry Analysis Report (https://finance.sina.com.cn/jjxw/2026-01-07/doc-inhfkwse5695737.shtml)