Tech Innovation and Global Expansion: Talkpod CEO Interviewed by HKTKWW

China's economy has developed with high quality. Last year, its GDP reached 134.9 trillion yuan, up 5% year-on-year. The growth rate ranked among the top among major economies in the world, and its total economic size remained firmly in second place in the world. China is actively expanding domestic demand, and its consumer market has great potential. In addition, its manufacturing industry is moving towards high-end and intelligent development, which has attracted global companies to settle in China. For example, Tesla of the United States has set up a factory in Shanghai, LG Energy Solution of South Korea has established its China headquarters in Nanjing, and Sweden's Epiroc Group has increased its investment in China to share the fruits of the economy.

On the other hand, Chinese companies continue to actively go overseas to explore business opportunities, especially targeting the "Belt and Road" market. Nan'an, Quanzhou, Fujian Province, known as the "Hometown of Chinese Walkie-Talkies", has stepped up its efforts to enter the Middle East. In the first three quarters of last year, the scale of exports of locally produced walkie-talkies to the Middle East market increased by nearly 38%.

Intercom manufacturer Yuantuo: 70% of sales are exported

[Ta Kung Pao News] Reporter Jiang Huangjin Nan'an reports: Last year, orders for communication electronic products in the Middle East shifted to China on a large scale. "Middle Eastern buyers say that Chinese walkie-talkies are durable and safe. They have identified 'Made in China' products. This is an opportunity for the walkie-talkie industry." Chen Qingtian, chairman of Yuantuo Electronics in Nan'an, Quanzhou, Fujian Province, said: "The domestic and foreign sales ratio used to be 4:6, but this year it is 3:7." In Nan'an, Quanzhou, China's largest walkie-talkie production base, local export orders have increased significantly. Industry insiders interviewed said that Chinese walkie-talkies that focus on technological innovation, communication security and intelligence are highly recognized by overseas users. In the first three quarters of last year, the scale of exports of walkie-talkies produced in Nan'an to the Middle East market increased by 37.9% year-on-year.

In late December last year, workers were actively producing at the Yuantuo Electronics Factory in Nan'an. Chen Qingtian said: "We are all rushing to complete an order worth 5 million RMB, which is the largest order I have ever ordered since I started working." Nan'an is a county-level city in Quanzhou with a population of 1.5 million. It is famous for its stone and hardware, and is also known as the "Hometown of Chinese Walkie-Talkies." In 2023, the global walkie-talkie market size will be approximately US$5.31 billion, with China accounting for approximately 42% of the market share, and Nan'an accounting for 70% of the national share. Taking Hytera (002583), an A-share company ranked second in the world in terms of industry shipments, as an example, its overseas market operating income increased by 28.77% year-on-year in the first half of last year.

25 Nan'an companies went to Dubai and received orders worth 100 million yuan

According to a relevant person in charge of the Nan'an Municipal Bureau of Commerce, in October last year, 25 companies from Nan'an went to Dubai, UAE to participate in an exhibition and won purchase orders worth more than 100 million yuan. The Middle East has always been an important sales market for Nan'an walkie-talkies. Due to economic development, regional safety, security and other factors, the demand for walkie-talkies in overseas markets has continued to rise.

Starting in the 1980s, Nan'an has formed a complete industrial chain from upstream to downstream, including companies such as chips, molds, injection molding, batteries, integrated circuits, and testing laboratories, and its products are sold to more than 80 countries and regions. According to information from the Nan'an Commerce Bureau, the area has gathered 140 walkie-talkie companies including Baofeng Electronics, Teyitong Electronics, Jingtong Electronics, and Yuantuo Electronics. It is also said in Nan'an that "one out of every three walkie-talkies in the world is made by people from Nan'an" and "if you want to hold a national walkie-talkie industry conference, you can gather it in Xiamei Town." The founders of Hytera and Kolision, two leading domestic walkie-talkie companies based in Shenzhen, are from the same village in Xiamei Town, Nan'an City.

Baofeng Electronics, one of the leading walkie-talkie companies in Nan'an City, has an annual output of 14 million units. Wang Shaofeng, the company's general manager, revealed: "In Nan'an, any related R&D and design can find a landing workshop within half an hour." In addition, Nan'an's walkie-talkie industry is fully accelerating the R&D process of analog-to-digital conversion.

Public intercom breaks distance limitations

In addition, Chen Fenfei, general manager of Fujian Topod Technology, led the team to develop the first touch screen intercom and the first ultra-thin intercom, and mass-produced public network intercoms that can realize global calls. He introduced that the communication distance of traditional walkie-talkies is generally 3 to 10 kilometers, but public network walkie-talkies not only break this limitation, but also greatly improve communication capabilities by using "multi-mode self-organizing network" technology. He gave an example. In a scenario of an emergency convoy consisting of five vehicles, each vehicle is 5 kilometers apart. If traditional walkie-talkies are used, the front vehicle and the rear vehicle cannot communicate. However, with the above technology, the vehicles can communicate with each other via walkie-talkies. Each walkie-talkie acts as a relay station, and the call distance is extended to 20 kilometers, playing a key role in emergency rescue operations such as earthquake relief.

The world's largest walkie-talkie producers include the United States, China and Japan. Chen Qingtian said: "When I got involved in walkie-talkie production in 2008, the failure rate of domestic products was about 10%. Now it is comparable to American and Japanese brands." Today's public network walkie-talkies use the Internet for voice and data transmission. There is no need for special base stations or repeaters. Just insert a SIM card to achieve global wireless communication. Domestic walkie-talkie brands have begun to gain experience and achievements in the digital walkie-talkie market and have actively entered the explosion-proof walkie-talkie market.

from https://epaper.tkww.hk/a/202502/13/AP67ad01fde4b04111a4a56e61.html