The predecessor of the company is Fujian Shida Terminal Equipment Co., Ltd., and in 2002, a subsidiary Shengteng Information was established; In 2002, Ruijie Network, a network product brand, was established; Around 2015, Starnet Intelligent Technology was established. As of 2018, the company's largest subsidiaries are in the leading position in the sub-industry.
Stable shareholding structure:
The actual controller of the company is Fujian State-owned Assets, and the committee holds 26.88% of the equity. It is worth noting that Xinjiang Weishi, the company's second-largest shareholder, is the company's employee shareholding platform, with a shareholding ratio of 4.42%. Employee shareholding allows listed companies and key employees to form a community of interests and improve the enthusiasm of key employees. In addition, Beishang Capital increased its position significantly in the third quarter, accounting for 2.83% of the shares.
Good financial data:
Several important financial data: Ruijie Networks's 2018 ROE of 16.9%, gross margin of 32.6%, and net profit margin of 9.1%. Three indicators are excellent in the industry, especially ROE, which directly represents the level of income that the company brings to shareholders. In the first three quarters of 2019, the company's gross profit margin further increased to 37.6%, and the net profit margin increased to 11.2%, indicating that the company's sustainability and ability to profit are improving.
As a technology company, one of the financial data that has to be seen is R&D expenses, the company's R&D investment in 18 years is 1.071 billion yuan, and the revenue accounts for 11.7%; The capitalized proportion of the company's R&D expenses accounted for 2.8%, which was far lower than the industry average. In the third quarter of 2019, the proportion of revenue from R&D expenses further increased to 12.1%, which shows that the company continues to increase R&D investment and consolidate its competitiveness.
Company performance:
The company's revenue and net profit have maintained stable growth in the past many years, and the company's performance forecast for 2019 shows that the company's profit: 58,130.23 million yuan - 63,943.26 million yuan, the performance increased slightly year-on-year, and the growth rate declined, due to the company's continuous increase in R&D investment and new market development.
In the past ten years, the compound growth rate of revenue and net profit attributable to the parent has been 21%, which has continued to grow steadily, which is comparable to the average of the same industry.
Domestic cloud computing is in a stage of rapid development. However, compared with international giants, it is still in the growth stage. Taking the comparison between the global leader AWS and the domestic leader Alibaba, for example, in 2018, the revenue was about 6 times that of Alibaba, and the capital expenditure was 3 times that of Alibaba, and there was huge room for growth. Ruijie Networksyun will stand on the wind.
According to the data of the "2018 China Enterprise Terminal VDI Market Tracking Report" released by IDC, Ruijie Network Cloud Desktop Market Share ranks first, with a cumulative delivery of more than 1.2 million cloud terminals, continuing to lead the desktop virtualization market.
Compared with the traditional PC desktop, the average CPU utilization rate of a PC is only 5%~20%, and the CPU utilization rate of Ruijie office desktop cloud can be controlled at more than 60%, the comprehensive cost investment is effectively controlled and reduced, and the operation and maintenance cost is reduced by 80%; The service life is more than 5 years. Moreover, the EST3.0 new generation desktop protocol independently developed by Ruijie Networks has a cloud transmission efficiency that is 5 times higher than that of traditional cloud desktop solutions and has a more experience than PC.
Since the second half of 19 years, Ruijie Network has successively completed product compatibility certification with Shanghai Zhaoxin, Tianjin Qilin, Tianjin Feiteng, etc. In the second quarter of 2018, Ruijie Networks continued to lead the virtualized desktop market with a market share of 45.3% (China Enterprise Terminal VDI).
The shipment of thin client products in 18 years of Shengteng Information reached 679,000 units, accounting for 48.6% of the domestic market share, and has ranked first in the Chinese market for 17 consecutive years. From 2017 to 2018, the company's desktop cloud solution won first place in the market share of China's desktop cloud (end-to-end) solution for two consecutive years. At HUAWEI CONNECT 2019, Ascend Vitzon Cloud released the first Kunpeng Desktop Cloud solution.
In March 2019, Shengteng became a member of the Encore Working Committee, and Shengteng Verizon desktop cloud technology is leading, with four characteristics: self-developed XREO Cloud Desktop Connection Association, self-developed desktop cloud system, VGPU virtualization, and China's "core".

Ruijie Wireless Product Overview
Ruijie Networks set up an independent wireless product department in 2002 as a mark to step into the WLAN market starting from 2000. In 2007, Ruijie established the comprehensive wireless product lines. In 2015, Ruijie officially founded the Wireless Product Division. 16 years of technical development and business evolution proved Ruijie’s persistence in independent R&D and the eagerness to keep forging ahead with innovation. Powered by a team size of hundreds of personnel and 117 patents with hundreds currently under the process of application, Ruijie manages to achieve completely independent research and development over the products from AP to AC, from software to hardware and from management to application. Grounded in industrial scenarios and deeply engaged with users’ most concerned problems, Ruijie strives to be the industry-leading scenario-oriented Wi-Fi solution provider with great capacities in depriving the business world of any network problems, and earns the top place in the market share powered by the unsurpassed and robust products. Ruijie crafts the best Wi-Fi deployment across the scenarios of high education, general education, medical services, government, transportation, commerce and hotels, and thrives to bring smart living to the general Wi-Fi users in this interconnected world. The patented technology of X-Sense Smart Antenna, the i-Share Solution dedicated for high-density and complex application scenarios, and Zero-roaming Mobile Medical Solution propel the industry with great mobility and top innovation. Therefore, Ruijie prospers to be a user-centric and innovation-driven Wi-Fi solution provider. With a considerable customer base of wireless network market, Ruijie becomes a great market force across sectors of education, transportation, medical services and finance according to the 2015 report released by the market research authority International Data Corporation. In 2015, Ruijie was awarded with “Best Market Performance in WLAN” from “Communications World Weekly”, the award of “The Most Recommended Product of 2015” by Zhongguangcun and “Innovative Award of Wireless Network Solution” by ZDNet, prospering to be the new benchmark of China wireless enterprise network market. The acknowledgment gained from the industry and the customers serve as a great momentum for us to strive forward and keep innovative. We thrive to eliminate any bottleneck to business performance to create a superior user experience in the future.