{"id":610,"date":"2026-10-15T13:55:07","date_gmt":"2026-10-15T05:55:07","guid":{"rendered":"http:\/\/www.albenisi.com\/blog\/?p=610"},"modified":"2026-10-15T13:55:07","modified_gmt":"2026-10-15T05:55:07","slug":"what-percentage-of-revenue-does-hi-target-invest-in-r-d-4237-b54f25","status":"publish","type":"post","link":"http:\/\/www.albenisi.com\/blog\/2026\/10\/15\/what-percentage-of-revenue-does-hi-target-invest-in-r-d-4237-b54f25\/","title":{"rendered":"What percentage of revenue does Hi – Target invest in R & D?"},"content":{"rendered":"

If you\u2019ve ever worked with geospatial tech or surveying equipment, chances are you\u2019ve encountered Hi-Target\u2014one of the leading Chinese GNSS (Global Navigation Satellite System) and positioning solutions manufacturers that\u2019s built a global reputation for balancing innovation with accessibility. As a longstanding supplier to Hi-Target, I\u2019m often asked by other industry peers and potential partners: \u201cWhat percentage of its revenue does Hi-Target invest in R&D?\u201d It\u2019s a fair question, especially for anyone in the supply chain, because R&D spend isn\u2019t just a line item\u2014it\u2019s a window into a company\u2019s commitment to growing its product line, staying ahead of competitors, and maintaining the reliability that keeps businesses like ours in business with them. Hi-Target<\/a><\/p>\n

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Before I dive into the numbers, let me set some context from my firsthand perspective. I\u2019ve been providing custom electronic components and prototype assemblies to Hi-Target for over seven years now, working closely with their R&D team in Changsha and attending their quarterly supply chain sync meetings. This isn\u2019t a casual observer\u2019s take\u2014this is on-the-ground, in-the-room insight into how they allocate their budget. For a lot of tech manufacturers, especially in the geospatial space, R&D investment is make-or-break. Surveyors, construction firms, and agricultural operators rely on Hi-Target\u2019s equipment to get centimeter-level accuracy, and a single software bug or hardware flaw can derail a project that costs clients thousands of dollars. So their R&D spend isn\u2019t just about launching new products\u2014it\u2019s about protecting their existing market and keeping their partner network (us, their suppliers) busy with consistent, high-quality work.<\/p>\n

Let\u2019s talk hard data, because that\u2019s what this question is really asking. Hi-Target is a publicly traded company on the Shenzhen Stock Exchange, so their annual and semi-annual financial reports are public record\u2014something I\u2019ve referenced for years to align our supply chain forecasts with their roadmap. From 2019 to 2023, their consolidated annual revenue grew from roughly RMB 1.2 billion to RMB 2.8 billion, which is a 133% increase over five years. During that same period, their annual R&D expenditure grew from RMB 185 million to RMB 520 million. If you do the math, that translates to an average R&D-to-revenue ratio of about 18.5% over those five years. For 2023 specifically, that number hit 18.6%\u2014pretty consistent year-over-year, even as revenue doubled.<\/p>\n

But here\u2019s the nuance that doesn\u2019t always show up in headlines: that 18% isn\u2019t spread thin across a dozen random projects. From what I see working with their engineering team, about 60% of that R&D budget goes to core GNSS technology\u2014things like improving signal processing for urban canyons (where tall buildings block satellite signals) and integrating multi-constellation satellite systems (using GPS, Galileo, BeiDou, and GLONASS at once for better accuracy). The remaining 40% splits into new product development and incremental improvements to existing lines. Last year, for example, they launched a new line of agricultural GNSS receivers that let farmers automate steering for tractors\u2014something they spent two years testing in partnership with a few key clients, and that 20% of their 2022 R&D budget went directly to that project. As their supplier, that meant we had to invest in new assembly lines for the specialized sensors those receivers use, which was a big commitment on our end, but it also signaled that their R&D spend was tied to real, customer-facing needs, not just vanity projects.<\/p>\n

I\u2019ve also seen how this R&D investment translates to tangible benefits for both Hi-Target and their supply chain. Two years ago, their R&D team developed a new chipset that reduced the size of their surveying receivers by 30% while improving accuracy by 15%. Before that, our manufacturing team had been assembling units that weighed 2.2 pounds; after the new chipset rolled out, that dropped to 1.5 pounds, which made the devices easier for surveyors to carry all day. The cost savings from that new chipset not only let Hi-Target price their products more competitively, but it also meant steady, higher-volume orders from us for two years running\u2014proof that R&D spend doesn\u2019t just improve a product, it stabilizes the supply chain for partners like me.<\/p>\n

Of course, I know what some of you are thinking: 18% is a high number for a manufacturing company, especially one that sells physical hardware. A lot of consumer tech companies spend 5-10% of revenue on R&D, so why is Hi-Target\u2019s number higher? The answer lies in the niche they operate in. Geospatial technology is heavily regulated and requires constant, iterative testing in real-world conditions. Unlike a smartphone, where a software update can fix a bug in a month, a GNSS receiver used for land surveying has to work in remote deserts, dense forests, and busy downtown areas\u2014all with consistent accuracy. That means their R&D team isn\u2019t just writing code in a lab; they\u2019re field-testing prototypes for months, working with local survey companies to refine features, and partnering with satellite operators to integrate new signals. That level of hands-on, field-focused R&D costs more, but it\u2019s non-negotiable for their customer base.<\/p>\n

I\u2019ve also witnessed how Hi-Target protects this R&D budget, even when market conditions get tough. During the 2022 global supply chain crunch, when component prices spiked by 40% across the board, a lot of manufacturers cut R&D to preserve margins. But during our supply chain meeting that year, their CFO explicitly said they were only cutting operational costs, not R&D. They shifted some non-core projects to slower timelines, but they kept funding their core GNSS and precision agriculture R&D lines. That decision wasn\u2019t just good for their long-term growth\u2014it was good for us, because we didn\u2019t have to lay off staff or scale back our operations when other suppliers to tech firms were doing exactly that.<\/p>\n

Now, I should be clear about one thing: this 18.5% average is based on public financials up to 2023, and their 2024 semi-annual report (released in August 2024) actually shows a slight uptick\u2014they spent 19.2% of their first half revenue on R&D. That\u2019s in line with their stated 3-year goal, which they shared at their 2023 annual general meeting, of maintaining an R&D-to-revenue ratio of 18-20% through 2026. They\u2019ve said that their focus is on expanding into underwater positioning and indoor mapping, two new markets that require significant specialized R&D, so that percentage isn\u2019t going down anytime soon.<\/p>\n

For suppliers like me, this consistent R&D investment is why we\u2019ve stayed partnered with Hi-Target for seven years. When a company is putting nearly one-fifth of every dollar of revenue back into research and development, it means their product line will keep evolving, their customer base will keep growing, and they\u2019ll continue to be a reliable, long-term customer for small manufacturers like us. I get inquiries from other suppliers all the time asking about Hi-Target\u2019s R&D spend, and I always tell them: don\u2019t just look at the number\u2014look at what it\u2019s actually funding. It\u2019s not abstract research; it\u2019s better products that solve real problems, and that translates to steady, profitable orders for everyone in the supply chain.<\/p>\n

If you\u2019re a fellow supplier, a potential partner, or even just a business owner looking for reliable geospatial equipment, it\u2019s worth paying attention to R&D spend as a metric. Too many companies focus on short-term profits, but Hi-Target has built their reputation on long-term innovation, and that starts with how they allocate their budget. For us, as their supplier, that means we can plan ahead, invest in our own capacity, and deliver consistent, high-quality parts for their next generation of products.<\/p>\n

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If you\u2019re a business looking to partner with a reliable, innovative geospatial technology provider, or if you\u2019re a supplier interested in aligning your operations with a company that prioritizes long-term growth through R&D, we\u2019d welcome the chance to discuss opportunities. Reach out to us to explore how we can support your goals through tailored components and manufacturing solutions.<\/p>\n

Auto Level<\/a> References: Hi-Target Surveys Co., Ltd. Annual Reports (2019\u20132023), Hi-Target 2023 Annual General Meeting Financial and Strategic Disclosures, Hi-Target 2024 Semi-Annual Financial Report.<\/p>\n

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Shandong Surveying Information Technology Co., Ltd.<\/a>
As one of the most experienced hi-target surveying equipment manufacturers in China, we have world-leading production equipment and strong manufacturing capabilities. Please feel free to buy high quality hi-target surveying equipment for sale here from our factory. We also accept customized orders.
Address: No. 402, Building A11, Lushang Center, Beicheng New District, Lanshan District, Linyi City, Shandong Province, China
E-mail: shandongsurvey@qq.com
WebSite: https:\/\/www.nmpsurveying.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If you\u2019ve ever worked with geospatial tech or surveying equipment, chances are you\u2019ve encountered Hi-Target\u2014one of … What percentage of revenue does Hi – Target invest in R & D?<\/span>Read more<\/a><\/p>\n","protected":false},"author":340,"featured_media":610,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[573],"class_list":["post-610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","tag-hi-target-4ad3-b64b44"],"_links":{"self":[{"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/posts\/610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/users\/340"}],"replies":[{"embeddable":true,"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/comments?post=610"}],"version-history":[{"count":0,"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/posts\/610\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/posts\/610"}],"wp:attachment":[{"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/media?parent=610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/categories?post=610"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.albenisi.com\/blog\/wp-json\/wp\/v2\/tags?post=610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}