Hongda group aims to serve 400 million people worldwide

Hongda Hi-tech Group Co Ltd, a Changchun, Jilin province-based company engaged in information collection and biometric identification technologies, plans to expand its presence in the countries and regions participating in the Belt and Road Initiative.

Its focus is on Africa and Southeast Asia where the demand for biometric verification services is soaring.

"Nearly 50 percent of our revenue comes from outside China. We have made and issued identity cards to residents from Laos and Papua New Guinea in cooperation with local governments, as well as about 50 million driver licenses in Indonesia," said Wang Xin, chairman of Hongda.

"The market potential is very huge in the overseas markets as 70 to 80 percent of our profits come from there," Wang said, adding he is bullish about future prospects.

The company is implementing cooperation agreements it had signed with local governments in Africa and Southeast Asia in the fields of electronic passports and digital ID cards, and aims to serve more than 400 million people around the world.

"The Belt and Road Initiative brings about tremendous opportunities, which will fuel the overseas expansion of Hongda, and the local enterprises should seize the chances and keep up with the pace of the nation's economic growth," Wang said.

"The population in Southeast Asia is very large, and the demand for identity card management is also increasing," Wang said, emphasizing Hongda will expand its business in these countries.

Wang, a soft-spoken engineering teacher-turned-entrepreneur, saw no difference between the company's technology and that of international competitors when bidding for overseas projects, adding that China holds a leading position in biometric identification technology.

Residents' ID management is a very sensitive matter, Wang said, adding that as a Chinese company, Hongda could get the deals because foreign authorities in these countries trust Chinese technology.

Founded in 1988, Hongda has continuously developed various software for population information management systems, in line with international and domestic requirements of public security agencies. It provides biometric identification technology and products to meet the demands of customers worldwide.

"We design, manufacture and supply the fingerprint collecting devices for Chinese embassies and consulates around the world," Wang said.

The company is also involved in facial recognition, fingerprint data collection, and manufacture of chip-embedded passport cards and work permits. Chinese authorities dealing with foreigner affairs in China use its information management system, Wang said.

Hongda entered overseas markets in 2006 and formed strategic partnerships with some tech heavyweights such as HP Inc, Microsoft Corp and IBM, selling its products to more than 20 countries and regions, such as the United States, Germany, Brazil, India, Indonesia and Laos.

In 1986, Hongda developed the country's first population information management system set, which was approved by the Ministry of Public Security. The development initiated the digitalization of population information management in China.

It has access to an ID poll that covers residents from more than 20 provinces, occupying over 50 percent of the market share across the country.

Its products have played a leading role in biometric identification, especially fingerprint identification technology. As one of the first suppliers of an automated fingerprint identification system, Hongda is a formulator and drafter of the technical standards for the quality of fingerprint locks in China.

"The biometric identification technology products, especially fingerprint identification products have huge development potential," said Wang, adding they have led a group of talented professionals into research of fingerprint identification technology and related products.

"At present, we are promoting the mobile phone identification, that is, (making sure) the information of SIM cards is in accordance with the owner of the handset," Wang said.

Biometric identification technology, which includes fingerprints, iris scans and facial recognition, could be widely used in security, finance, healthcare, education and transportation.

Utilizing its fingerprint authentication technology, Hongda has successively developed more than 30 kinds of software and hardware products for banks, examination venues and social security systems.

China's biometric identification sector has been experiencing a surge in demand for its services in recent years, according to ibaogao.com, a market research reports website. In 2015, its revenue reached more than 10 billion yuan ($1.6 billion), and the figure is expected to hit 30 billion yuan by 2020, with a compound annual growth rate of 24.6 percent.

A report from Bosi Data Research Center indicated the rising demand for information safety products comes from governments, corporates and individual customers.