The future development prospect of the company

What are the industries and products made by the company, what support does the country have, what relevant policies are there, what is the development trend of the industry, and can have it both ways follow the current development direction?

US sanctions against ZTE have dealt a heavy blow to China. Many domestic companies rarely do chip design before this. A company in Beijing has been doing the reverse service of designing chips. Although it has been barely developed before, the ZTE incident has brought heavy losses to Chinese people, and the state strongly supports chip design. Companies in Beijing, following this trend, successfully applied for listing on the Growth Enterprise Market in 2020. This is what the national policy support and industry direction bring us, and how to look at the development direction of the company-have it both ways under the national policy and industry development trend.

Judge how wide the moat of the company is, and whether it has sufficient backing and industry experience in the case of policy changes or major problems in the industry?

Every company should have its own moat. This moat includes many factors, including the number of company partners and the business volume between them, the company's ability to take risks, and whether the influence of the company's relevant systems on employees can make employees absolutely sincere to the company.

No matter when, every industry can't be smooth sailing. Therefore, it is good when it is calm, so you need to set sail quickly and go ahead at full speed, so that the wider your moat is, the better. And in times of adversity, under some unfavorable factors, we have enough funds to avoid risks and take risks. In 2020, COVID-19 thinks it will influence every company to some extent. Many companies with narrow moats will close down one after another, and the long-term efforts of many entrepreneurs will be destroyed. This is a bloody historical witness.

How a company develops, the current development trend is of course important. Financial statements can only show the development of the past period of time. Of course, financial statements are essential for us to predict the future development trend. But more importantly, it needs to be promoted in combination with the current development trend and relevant national policies (especially the moat of startup companies is relatively narrow) to make it easier for companies to survive; Old companies also need to formulate relevant policies to conform to the trend of the times or future development trends. But on the other hand, our ability to take risks should also be improved. Things change, who can absolutely say that the development prospects of products and services provided by the company will always be so good? Therefore, a company's ability to take risks also needs to make judgments.

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