Chinese infrared tech giant Wuhan Guide Infrared Co Ltd is not a household name in China technology but it is the biggest maker of thermal imagers in China, counting the Chinese army and government authorities as some of its major customers.
As part of an occasional series on companies that supply the surveillance industry in China, here’s what you need to know about Wuhan Guide Infrared:
What does Guide Infrared do in the surveillance market?
Founded in 1999, Wuhan Guide Infrared has established itself as a major supplier of infrared cameras and thermal imaging systems and equipment for military and civilian use in China. Infrared thermal imaging technology detects infrared radiation from objects and people, even in the dark or densely populated environments, and converts the image of temperature distribution into a video image.
One of Guide’s biggest clients is the Chinese army, which uses the night vision technology for precision weapons and to aid combat at night and Guide is now exploring wider civilian uses for its equipment.
China’s public security authorities have bought Guide’s equipment to help track down criminals, for traffic surveillance, infrastructure projects and large events such as the Wuhan Marathon. China’s inspection and quarantine authorities are also using Guide’s thermal imaging technology to aid controls against contagious diseases.
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Guide, based in central China’s Wuhan city, established a wholly-owned unit, Guide Anx, to supply police and government orders for infrared products. In recent years it has moved into consumer-focused applications, such as use in smart homes, internet of things devices and autonomous driving. It has partnered with industrial giants including the State Grid Corporation of China and surveillance camera giant Hikvision.
Wuhan Guide Infrared did not immediately respond to a request for comment.
Who owns Guide Infrared?
Guide Infrared was founded by Huang Li, one of the main engineer’s of the company’s infrared technology. Huang holds a Master’s degree from the Huazhong University of Science and Technology in Wuhan, and a Doctor of Business Administration from the Cheung Kong Graduate School of Business in Beijing.
A member of the Communist Party of China, Huang is also a delegate to the Chinese People's Political Consultative Conference and attended the Two Sessions meetings – the country’s largest political event of the year – last week.
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Huang, Guide’s chairman, controls the company by directly owning 28.53 per cent of Wuhan Guide Infrared and 97 per cent of parent company Wuhan Guide Electric, which is the biggest shareholder of Guide Infrared with a 38.32 per cent holding.
Guide began trading on the Shenzhen Stock Exchange in 2010. Huang, now 56, has a net worth of US$1.8 billion as of March 14, according to Forbes.
How big is Guide Infrared in the thermal imager market?
Guide is the biggest infrared equipment maker in China, and ranks fourth globally, according to a research note from China’s Dongxing Securities in February.
Analysts expect the company’s expansion into the civilian market for infrared cameras and thermal imagers to continue to bring in solid growth.
“The company has made detailed segmentation and comprehensive plans for the civilian market, which is several times bigger than the military market,” Li Taoyang, analyst with CSC Financial, wrote in a note in November.
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Civilian demand for infrared cameras in China was worth 18.4 billion yuan (US$2.74 billion) in 2017 while the military market was worth 3 billion yuan, according to research by Beijing-based Intelligence Research Group in 2017.
Guide’s infrared equipment and electro-optical systems brought in 588 million yuan in revenue in the year of 2017, accounting for over 57 per cent of the company’s total revenue, with 36 per cent of revenue coming from ammunition sales and the remainder from technical services and other items.
In its preliminary results for 2018, profits more than doubled to 131 million yuan compared to the same period last year thanks to government tax incentives and cash collection from previous sales. Total revenue grew a modest 6.7 per cent to 1.1 billion yuan.
What else is Guide Infrared working on?
In recent years, aside from the move into consumer applications, Guide has also diversified its military equipment offerings to include more sophisticated equipment for precision missile systems and combat vehicles.
At Airshow China in Zhuhai in November, Wuhan Guide Infrared showcased its QN-50 combat support vehicle fitted with machine guns, grenades, a light cannon, two types of missiles, and even drones to engage both ground and air targets.
With the acquisition of Hubei Handan Mechatronics in 2015, Guide added ammunition to its production and sales capability.
