Leyard: 90% of the company's VR revenue comes from the acquisition of the US NP company

Set micro network news, recently, Leyard said in an interview with the agency that in terms of VR, the company now about 90% of the revenue is from the acquisition of the American NP company, the company's sales model is relatively single, it to put the motion capture product formed by the chip implanted into some hardware products, the combination of software and hardware into products and then through the global channel vendors to sell, so NP company these years its gross margin, net profit margin and sales expenses, personnel scale, etc. are relatively stable, but also relatively simple.

After the acquisition of NP, Leyard has been based on its products, doing application development on the market side, establishing a virtual moving point, positioning itself to make solutions to more industry customers.

Leyard disclosed that at present, this technology and products are more in the film and television shooting, as well as the production of games, but the industries involved have been increasing, and the proportion of other industries is also increasing, including education and training, industrial simulation, medicine and other fields. Leyard said that in the future, it will focus on the needs of more industry customers to do market promotion, which will be a main business of Leyard's virtual moving point in China.

In terms of market sinking, marketing model, and channel policy, Leyard sinking market customers are concentrated in third-tier, prefecture-level county-level cities, with a larger market scope and different customer needs. According to the characteristics of different customers, Leyard has adopted different brands to do the market. The high and middle ends continue to use the Leyard brand, and the sinking market adopts the Jin Lixiang brand. In terms of sales methods, direct sales due to the diversification of customer needs, as well as the customized characteristics of products, mostly use the form of solutions to sell in the form of project systems, but from 2022, Leyard will do this product reduction; the mid-end market mainly takes several more standardized modules as mainstream products, while the sinking market is currently selling a product, and the degree of standardization of products is higher. In addition, direct sales is a phased collection, including advance payment, delivery payment, acceptance and other links, and the channels are all payment to delivery, which provides a guarantee for the company's strategic goal of "steady development".

In terms of cutting-edge technology, in 2021, Leyard has two main directions for the development of MicroLED.

1, the technical side: to COG research and development to achieve phased results, Lijing and Huaxing launched COG-based laboratory products have been released, representing that the COG model will become the future Micro development of a more deterministic route, Leyard also with the panel company to do some other technical breakthroughs and business promotion, the next step will be to do mass production research and development.

2, the industrial chain layout: In addition to the joint venture with Taiwan Jingdian to establish Lijing Microelectronics, in the upstream and downstream of the industry, including raw materials, Leyard also has some other layouts.

Because of the obvious advantages of MicroLED, it may replace most of the display products in the future. Therefore, in 2022, Leyard will further promote the implementation around the layout of the MicroLED industry chain. Another is that according to the judgment of the market, Leyard will expand the production capacity of Lijing to 1600KK/month according to the plan this year.

(Proofreader/James)