Zhou Ming's forecast for the first quarter is optimistic, and the new production capacity of Daya Bay is gradually full

On January 26, Zhou Ming released the Investor Relations Activity Record Sheet, summarizing the business situation in the fourth quarter of 2021 and the outlook for the first quarter of 2022, while introducing the company's XR business, MiniLED and production capacity.

Overseas demand did not meet expectations, and competition in domestic low-end products intensified

Zhou Ming said that in the overseas market, overseas sales in the fourth quarter fell compared with the third quarter, mainly because of the outbreak of new strains in South Africa in the fourth quarter of overseas, and the upgrading of prevention and control measures in European countries, resulting in overseas demand not reaching the expected outbreak growth; on the other hand, the rebound in shipping costs and bookings in the fourth quarter affected delivery, and some order recognition revenues were delayed.

Zhou Ming said that at present, overseas epidemic control is not as strict as expected, and it is expected that the corresponding orders will gradually resume. Zhou Ming expressed optimism about the next overseas orders, because on the one hand, the demand has been suppressed for too long, on the other hand, the endogenous growth of demand, especially the company's business display, XR virtual shooting application, the two business orders recovery is better, will drive the company's overall gross profit to increase.

In the domestic market in the fourth quarter, Zhou Ming pointed out that the competition in the domestic low-end product market intensified, and the company's channel products began to reduce prices, on the one hand, the gross profit decreased, on the other hand, the sales proportion of channel products increased, which in turn pulled down the company's overall gross profit. Zhou Ming believes that the price reduction of low-end products will be a long-term phenomenon in the industry, and in the future, the company will control the risk of reducing the overall gross profit by controlling product costs and improving the sales of low-end products, and control the proportion of low-end business within a reasonable range.

The first quarter performance forecast is optimistic, and Zhou Ming will pay attention to profits

Zhou Ming looked forward to the performance of the first quarter of 2022 and optimistically looked at the performance of the first quarter. Zhou Ming expects that the order volume in January will be the same as in previous years, and the majority of orders in the first quarter will be mainly concentrated in March. Overseas market demand will recover after the epidemic, and the company's production capacity will be gradually released. In 2022, the company will change its business philosophy, take gross profit and net profit as the top priority, and pay more attention to the quality of sales revenue while considering the achievement of sales targets, do a good job of balance, and start from each link to reduce costs and increase efficiency.

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XR's business has grown, overseas markets are deep, and domestic exploration is still being explored

In order to make up for the impact of the leasing sector, Redeo continues to explore more display business and expand the fixed installation and XR virtual shooting business. In 2021, the XR virtual shooting business achieved sales of more than 800 million, an increase of 2.7 times year-on-year. Zhou Ming has high hopes for the XR virtual shooting business in 2022.

For the recent situation of XR business, Zhou Ming introduced that at present, the company's XR virtual shooting business sales are mainly concentrated overseas, and the main application scenario is the film industry. The domestic film industry has not really entered the XR stage, in 2021, Zhou Ming began to build a virtual shooting studio with domestic film and television companies and content producers in Hengdian Film and Television City, and cooperated with projects such as iQiyi, but the amount involved was relatively small compared to overseas. Zhou Ming said that the domestic virtual shooting market is still in the exploratory stage, and will gradually keep up with the pace of overseas in the future.

MiniLED development still needs time, and the new production capacity of Daya Bay is gradually full

For the MiniLED situation, Zhou Ming pointed out that the biggest problem with Mini LED at present is that it does not have a reasonable cost performance. After years of development, the comprehensive performance of small spacing products in terms of price, performance and other aspects is relatively good, and now the mainstream products in the market are still dominated by small spacing, and small spacing products also account for 80% of Zhouming's business.

From the terminal point of view, the yield and manufacturing efficiency of MiniLED have not yet reached a good state, and it takes more time and efforts of the entire industry to optimize the yield and cost of the overall upstream and downstream industry chain in order to achieve a good scale.

In terms of production capacity, Zhou Ming revealed that at the end of the third quarter of 2021 and the beginning of the fourth quarter, Daya Bay added 3000kk MiniLED +6000kk small-pitch LED production capacity, gradually reaching full production and currently operating normally. With the release of daya bay production capacity, the company's own production capacity can gradually digest all orders, and the company plans production capacity according to the overall output value of 10 billion yuan in 2022. (LeDinside)

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