Wang Hairong, chief reporter of Shenzhen Business Daily and Reading Client
On the evening of April 26, Guangfeng Technology (688007. SH) disclosed its financial report for the first quarter of 2024, in the first quarter, the company achieved operating income of 445 million yuan, net profit attributable to the parent company of 44.5433 million yuan, a significant increase of 226.21% year-on-year, and net profit attributable to the parent company to turn losses into profits, with an overall gross profit margin of 33.24%, and stable performance of key financial indicators.
For the first time, automotive optics contributed revenue
On the whole, the most eye-catching thing in the first quarter is that the revenue of the vehicle business has achieved a breakthrough from 0 to 1, becoming a key growth pole for the company in the future.
It is understood that in December 2023, Guangfeng Technology ushered in the official landing of the first fixed-point model Wenjie M9, and entered the intensive mass production and delivery stage in March 2024. The M9 automotive-grade projection screen meets the diverse needs of in-car entertainment and office, and redefines the smart space in the car. With the smooth landing and delivery of M9, Guangfeng Technology's automotive-grade projection giant screen has been fully verified by the market, and the on-board optics have also entered the revenue contribution period. According to the delivery rhythm of car companies, the on-board optical business contributed 48.0268 million yuan of operating income to Guangfeng Technology in the first quarter.
In early April, according to Wenjie sources, the cumulative number of M9 products has exceeded 70,000 in the three months since it was launched. As more and more consumers choose the high-end version equipped with laser projectors, it is expected to drive the on-board optical business of Guangfeng Technology to generate continuous revenue.
At the same time, Guangfeng Technology, which is participating in the 2024 Beijing International Automobile Exhibition, also released the world's first ALL-in-ONE all-round laser headlight at the exhibition. The product integrates multiple functions such as high-beam ADB headlights, variable color temperature headlights (compatible with fog lamp mode), high-beam lights, ground information display, drive-in theater, etc., to meet diverse needs such as lighting, display, safety and entertainment needs. At the same time, the 2.0 and 3.0 versions of the vehicle projection giant screen, which continue to be developed and iterated, have the advantages of doubling the brightness and resolution, and can realize AI interaction.
In fact, to develop the emerging track represented by on-board optics, Guangfeng Technology has already actively planned the layout.
Li Yi, founder, chairman and CEO of Guangfeng Technology, said in the letter to shareholders in the 2023 annual report that the basic business and the growth business will go in the same direction, focus on improving the quality of operation, and at the same time seize the opportunity to transform from a small track to a large market, and continue to expand the company's strategic advantages and achievements in the field of automotive optics. Seize the historic opportunity of the rapid rise of the domestic new energy vehicle industry, actively seize the blue ocean market such as on-board optics and smart cockpits, and work with international leading car companies to create a new driving experience for consumers, and run out of "Shenzhen acceleration" on the track of on-board optics.
Cinema revenue grew steadily
According to the financial report, Guangfeng Technology's cinema core device business performed strongly in the first quarter, and its revenue ushered in a relatively significant growth. Among them, the box office of the Spring Festival stalls in 2024 will hit a new high, and high-quality films will also drive the continuous release of movie-watching demand, and the development of the film market will be full of stamina, which will drive the revenue of Guangfeng Technology's cinema core device business to continue to improve. During the reporting period, the operating income was 153 million yuan, a year-on-year increase of 21%.
In addition, Guangfeng Technology has also increased the R&D and promotion of VLED LED Cinema projection solutions to further expand the development space of cinema business and enhance the resilience of sustainable business development. In April this year, Guangfeng Technology participated in the International Film Industry Conference in the United States, allowing visitors to experience the ultimate viewing experience brought by ALPD laser projection technology, and actively promoting the technology to the global film market.
In terms of professional display business, at the beginning of this year, Guangfeng Technology brought a number of application achievements and solutions to the European International Audiovisual Technology and System Integration Exhibition (ISE Exhibition), and the new engineering projection product S Pro made its debut to the outside world, actively expanding the international market.
Upstream industrial chain enterprises layout investment
On March 25, Hubei Gebijia Optoelectronics Technology Co., Ltd., a shareholding company of Guangfeng Technology, was successfully listed on the Beijing Stock Exchange. According to the announcement, some trading financial assets generate investment income and fair value change gains and losses, which have a positive impact on the company's net profit attributable to the parent company.
It is understood that Guangfeng Technology has an existing investment layout for the upstream industrial chain, which is expected to help promote the overall synergy of the industrial chain, thereby accelerating the market response speed and realizing the efficient integration of resources.
According to the announcement, Guangfeng Technology optimized and controlled expenses in the first quarter, and the expenses during the period decreased by 20.6% year-on-year, and the results of cost reduction and efficiency increase were remarkable.