Appotronics' net profit jumps 63% in 1H2023 and the automotive optics business enters the fast lane
SHENZHEN, China, Sept. 18, 2023 /PRNewswire/ -- Recently, Appotronics (688007.SH) released its 2023 semi-annual report in English, which reports a substantial increase in net profit attributable to the parent company and net profit attributable to the parent company after deducting non-recurring profit or loss. As disclosed in the financial report, in 1H2023, the Company's revenue amounted to RMB1.073 billion; net profit attributable to the parent company amounted to RMB74.9146 million, representing an increase of 62.98% year-on-year; net profit attributable to the parent company after deducting non-recurring profit or loss amounted to RMB34.2288 million, representing an increase of 55.55% year-on-year; the overall gross profit margin increased by 7.39 percentage points to 37.7% and the net cash flow generated from operating activities increased by RMB193 million.
As for finance, net profit and other performance indicators grew sharply, which, according to the financial report, mainly benefited from the year-on-year increase of 32.75% and 18.43% in the cinema projection service income and revenue from the light source and optical machine business during the reporting period. During the reporting period, the Company optimized its supply chain management and scored a significant year-on-year increase in net cash flow from operating activities. While for the business, our cinema services saw a robust recovery with the accelerated uptick in the movie market. As a business in growth, our automotive optics business proceeded at a fast pace and has made breakthroughs in terms of cooperation, potential customer development, supply chain system improvement and patent application.
Automotive optics business enters the fast lane
During the reporting period, Appotronics reached cooperation with SERES, BYD and BAIC BJEV, and actively participated in large exhibitions at home and abroad. For example, we provided core components for BMW's concept car with four-window fusion display technology debuted at CES, United States at the beginning of the year; we independently exhibited at the Shanghai Auto Show and launched the world's first automotive-grade laser headlight supporting RGB display. In terms of potential customer development, as indicated in the financial report, in addition to the five secured projects, the Company is approaching several automotive customers on laser headlights, AR-HUD and other products, whichwill lay a foundation for the subsequent cooperation with automotive enterprises in new models.
As automotive intelligence evolves rapidly, Appotronics rides on the trend and provides customized solutions for automotive display, laser headlights and AR-HUD, demonstrating a huge commercial potential. According to the financial report, to prepare for project delivery, the Company has built and improved the supply chain system of its automotive business to ensure the quality of automotive products in the OEMs and end markets.
In addition, Appotronics' original ALPD semiconductor laser light source technology is the only laser technology certified by automotive regulations, with exclusive and first-mover advantage. Based on this technology, as at the end of the reporting period, the Company applied for 62 new authorization and patents in relation to the automotive core component technology, a year-on-year increase of 113.79%; the cumulative authorization and patents were 176, a year-on-year increase of 70.87%.
"It's good timing for us now, the first half of this historic (EV) transformation is the energy revolution, while the second half with the information revolution has just begun," Li Yi, founder, chairman and CEO of Appotronics, said when visiting 2023 North American International Auto Show.
Cinema business saw a robust recovery
With the accelerated recovery of movie and cultural tourism markets, Appotronics' cinema services ushered in multiple benefits such as sufficient supply of movies and increasing screenings. During the reporting period, the business recorded revenue of RMB180 million, up 32.75% year-on-year, and more than 28,600 sets of ALPD® laser light source projection solutions have been installed in China.
Meanwhile, the movie market performed brightly in the summer of 2023 and expects more in 2H2023. As said by Top Data, 2023 is the first year of China's movie market in recovery. This year, the movie market has recovered to the peak level of 2019 in just a few months, and sending favorable signals for the second half of the year in both movie reserves and audience's desire. Therefore, it's believed that China's movie market will re-hit RMB60 billion and challenge the world's top box office.
The professional display business recovered well and realized revenue of RMB202 million, an increase of 13.79% year-on-year.
ALPD 5.0 super panchromatic laser technology enters commercialization
In 1H2023, Appotronics' R&D investment reached RMB126 million, accounting for 11.78% of revenue, an increase of 2.72 percentage points as compared to the same period last year. The sustained high R&D investment is among the top in the industry. Correspondingly, as of June 30, 2023, with the original ALPD semiconductor laser light source technology as the core, the Company had 2,714 patent applications and authorized patents in global sphere, of which 1,901 were authorized patents, including 1,007 invention ones, and the core technology has been cited by the industry giants for more than 670 times.
Appotronics' original ALPD technology creates a new ultra-high brightness semiconductor laser light source based on rare-earth luminescent materials, which can efficiently get green and red light at low cost by exciting fluorescence on the fluorescent wheel device through the blue laser of GaN (Gallium Nitride) semiconductor material system, while reducing scattering spots from the technical source by leveraging the advantages of fluorescent materials.
Our latest developed ALPD 5.0 super panchromatic laser technology integrates six light sources (RGB laser light source + RGB LED light source) by creatively utilizing our unique light combination technology, which effectively addresses the scattering spots and color edge problems arising from the pure RGB laser light source as well as the brightness limitation of the pure RGB LED from the source, thus getting advantages in brighter light source, free of scattering spots and more comfortable colors. In addition, we have officially launched home smart projection products equipped with ALPD 5.0 optical machine, which are expected to be the sales hotspot in 2H2023.
SOURCE Appotronics Corporation Ltd.
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