On April 18, Colorlight released its 2023 annual report. During the reporting period, the company achieved operating income of 1019.9573 million yuan, a year-on-year increase of 50.16%, and net profit attributable to shareholders of listed companies was 202.6933 million yuan, a year-on-year increase of 54.29%.
Key accounting data and financial indicators
Key financial indicators by quarter
Key performance drivers
In the context of the continuous growth of the LED display market scale and the strong demand for ultra-high-definition video, the company continues to increase investment in research, production and sales, focusing on strengthening the research and development of display technology, in the field of image processing, constantly integrating the new ecology of the LED industry, independently developing new technologies and new products, using innovative display technology to create an advantageous product matrix, and contributing to the company's business development.
The main driving factor of performance is that the company regards overseas market expansion as an important strategy for the sustainable development of the company. During the reporting period, the company adopted a two-wheel drive model of direct sales and distribution to deepen the expansion of overseas markets. On the one hand, the company has strengthened its direct sales channels and successfully increased the market share of receiving cards in overseas markets through in-depth cooperation with domestic and foreign screen manufacturers. On the other hand, on the basis of increasing the market share of receiving cards, the company has deepened market penetration and product distribution through distribution channels, accurately connected with the specific needs of project integrators and distributors, and provided customized solutions according to the actual situation of the project, which effectively promoted the sales and market share growth of video processing equipment.
At the same time, in terms of global market expansion, the company takes its subsidiaries in the Netherlands and the United States as the fulcrum, actively participates in exhibitions and other promotion activities, and fully demonstrates the company's innovation ability and product strength to overseas customers. It not only radiates to the entire Europe and the United States, but also actively extends its business to Vietnam, Malaysia, the Philippines, Russia, South Korea, the United Arab Emirates, India and other places around the world. As a result, the company's brand awareness has been improved, the product sales have continued to grow, the market share has increased steadily, and the company's influence in the world has been further broadened. During the reporting period, North America accounted for 59.34% of overseas revenue, Europe accounted for 20.63%, Asia accounted for 13.13%, and other regions accounted for 6.73%.
At the same time, in order to better serve overseas customers, the company actively recruits local employees overseas, and improves the level of product pre-sales and after-sales service. During the reporting period, the company successfully expanded more than 100 distributors all over the global market, through its channels and networks, the company's products can quickly enter the market and obtain good responses, laying a solid foundation for market expansion. At the same time, the company has achieved a significant increase in overseas operating income, which will be 136.4351 million yuan in 2023, a year-on-year increase of 94.50%.
In the domestic market, the price reduction of LED screen factory products and the iterative upgrading of 2K/4K/8K technology have significantly increased the shipment of screens and the number of pixels, which has directly promoted the growth of demand for receiving cards and video processing equipment, making the company's operating income show a trend of rapid growth. At the same time, in the face of the rapid expansion of the market, the company pays attention to the technological innovation of products, increases the construction of the domestic marketing network, and provides customers with more refined solutions by increasing R&D and pre-sales and after-sales personnel, so as to continuously meet the new needs of the market. With the continuous iteration and update of application scenarios, the company has adapted to the development and enriched the product line, launched innovative products such as Mica industrial correction system and M10 self-developed chip, further consolidating the company's technological leading position in the industry. In 2023, the domestic operating income will be 883.5222 million yuan, a year-on-year increase of 45.05%.
Main business analysis
Colorlight is a high-tech company with video processing algorithms as the core and hardware equipment as the carrier, providing customers with professional display control products in the field of video images. The company's innovation, creation and creativity mainly revolve around the application of video image display control technology, with 5G+8K as the key direction of innovation, creation and creativity, and has developed three main products: LED display control system, video processing equipment and cloud networking player, which can realize various functions such as display control, editing and processing, transmission and analysis of video signals and image data, and realize the coverage of the back-end of LED video playback.
The main function of Colorlight products is to process video images and control the display effect of video images, which belongs to the video image display control industry. At present, the mainstream display media can be divided into LED, LCD, OLED and laser projection four categories, Colorlight since its inception, based on the LED display control system, and continue to accumulate research and development experience and market reputation, and gradually extend to the field of video processing and playback, launched a series of video processing equipment with optical correction, color management, image splicing, matrix switching, multi-screen processing, cross-platform control, ultra-high-definition rendering and other integrated control functions, so that the video image presents high bits, high dynamics, high frame rate, Wide color gamut, low latency and other characteristics. With the development of cloud networking and communication technology, the company conforms to the market trend of mobile display, and launches a cloud networking playback product series for remote wireless management needs, which can be connected to servers through Wi-Fi, 4G, 5G and other communication methods, and can carry out cloud networking and cross-regional management of many screens. From the perspective of the historical evolution of the company's main business and the development trend of industry technology, the company is closely related to the development of the LED display industry.
The three categories of Colorlight products are specifically introduced as follows:
1. LED display control system
Colorlight's LED display control system consists of a receiver card and a transmitter, which are used together and are the core components of LED screen display. The transmitter converts and transmits the video signal to the receiving card, which then drives the LED screen to display the video image. With the development of the industry and the progress of technology, the standardization of LED display control systems has been continuously improved. The company's LED display control system has the advantages of perfect function, small size, stable quality, convenient installation and easy commissioning, which can meet the needs of different end customers and application scenarios.
2. Video processing equipment
Based on the LED display control system, Colorlight continues to accumulate R&D experience and market reputation, and gradually extends to the field of video processing and playback, and has launched a series of video processing equipment with integrated control functions such as optical correction, color management, image splicing, matrix switching, multi-screen processing, cross-platform control, ultra-high-definition rendering, etc., so that the video image presents the characteristics of high bit, high dynamic, high frame rate, wide color gamut, low latency, etc., with a variety of input and output interfaces, which can be connected to LED display, LCD display, Projectors and other display media.
3. Cloud networking player
Colorlight's cloud networking player supports the production, arrangement and cluster release of programs on the cloud platform or management software through a variety of mobile communication devices such as mobile phones, tablets and computers, as well as 5G, 4G, Wi-Fi, wired networks and other networking methods, so as to achieve multi-screen, multi-service and cross-regional unified management. The cloud networking player has significant advantages in indoor and outdoor fixed installation and centralized management, release, monitoring and other fields, and can be widely used in a variety of commercial display fields such as light pole screens, advertising machines, and vehicle screens.
During the reporting period, the company's main operating income is as follows:
1. The revenue of video processing equipment was 498.289 million yuan, accounting for 48.85% of the operating income, and the revenue of video processing equipment increased by 9.11% year-on-year;
2. The revenue of LED display control system - receiving card was 363.1591 million yuan, a year-on-year increase of 34.66%, accounting for 35.61% of operating income;
3. The revenue of cloud networking player was 59.6146 million yuan, an increase of 39.91% year-on-year.
The growth of overall revenue is mainly due to the increase in the penetration rate of small-pitch LED displays, the acceleration of the trend of LED ultra-high definition, and the strong demand for LED display and control systems and equipment at home and abroad, driving the demand for LED display and control systems and equipment, with the proportion of overseas sales increasing by 3.05% year-on-year, and overseas sales increasing by 94.50% year-on-year, and the overall revenue continues to grow.
Composition of operating income