The announcement shows that there is a total of 1 person from Unilumin Technology participating in this reception, namely Chen Yifan, secretary of the board of directors. The reception location for the survey is the conference room of the company headquarters.
It is understood that Unilumin Technology is cautiously optimistic about the business situation in the second half of 2024 during this investor relations event. The company expects that the domestic market will recover slightly, but the overall development trend in the first half of the year will be continued. At the same time, it plans to strengthen the layout of overseas markets to achieve stable revenue growth and an increase in comprehensive gross profit. The company actively expands downstream application scenarios and believes that applications related to virtual digital people, entertainment concerts, immersive exhibition halls and overseas sports events are expected to become new performance growth points.
The decline in LED display costs mainly comes from the reduction in raw material costs and the improvement of process technology. The reduction in raw material costs is mainly due to the decline in the prices of key components such as LED chips, lamp beads, driver ICs, and packaging materials, while the improvement in process technology is due toThrough the development of automation and intelligent technology, we can improve production efficiency and reduce scrap rates and rework costs.
Unilumin Technology’s virtual digital human business mainly focuses on providing customized project needs, and has fully integrated various AI tools to form an integrated solution. The company's virtual IP family "UFriend" continues to grow. Looking to the future, virtual digital human products are expected to gradually penetrate into the consumer goods market, opening up a market space with strong potential. In addition, the company has been deeply involved in the LED industry for many years, established a global marketing system, and actively built a diversified brand matrix to meet the needs of different markets and consumers. The company is actively exploring the possibility of rationally allocating production capacity globally to cope with potential tariff changes, optimize cost structure, and enhance the flexibility of the supply chain.
The company's management has firm confidence in the company's future market competitiveness and growth potential. Through refined business management, strengthening cost control, optimizing product structure, and actively expanding into new markets and application areas, it will improve operational efficiency and market response speed. The company is also actively exploring effective ways to maintain the company's value, including implementing dividend policies, stock buybacks, and management's increase in shareholdings, etc., to safeguard the interests of shareholders and enhance the company's image and attraction in the capital market.gravitational. The company will continue to focus on the company's long-term strategic planning and sustainable development strategy, and is committed to bringing long-term and stable returns to shareholders through performance improvement and value creation.
The details of the survey are as follows:
This investor relations activity was conducted in the form of on-site research, with full communication and exchange in the form of talks. The main contents are as follows:
1. What is the forecast of domestic and overseas prosperity in the second half of 2024?
Answer: The overall business situation in the second half of 2024 is cautiously optimistic. Domestic market demand is relatively weak, but with the arrival of the traditional peak season in the second half of the year, it is expected to pick up slightly, but the overall development trend in the first half of this year will continue. The company will continue to pay attention to domestic policy guidance and market dynamics, and flexibly adjust its business strategies in order to achieve steady growth in a fully competitive domestic market. In overseas markets, overseas demand was relatively good in the first half of this year. The company plans to further strengthen its presence in developed European and American countries and other emerging markets, which will help stabilize revenue growth and comprehensive gross profit.Increase in profits. Enhance the company's competitiveness in the international market by deepening brand building, optimizing product portfolio and improving customer service.
2. What are the main application scenarios that are expected to become the company's growth points in 2024?
Answer: In the face of the changing market environment, the company actively expands downstream application scenarios in order to enhance business diversification and enhance market competitiveness. The company believes that the following four areas are expected to become new performance growth points: (1) Virtual digital people: The company is actively engaged in the terminal application of virtual digital human technology, bringing innovative digital experiences through customized virtual characters and scenes, demonstrating the company's forward-looking and innovative capabilities in emerging technology fields. (2) Entertainment concerts: In the film and television entertainment industry, the company uses advanced audio-visual technology to bring an immersive music experience to the audience by participating in concert projects. These projects not only enhance the viewing value of live performances, but also demonstrate the company's professional capabilities and market competitiveness in the field of high-end audio-visual solutions. For example: The 55th show of Jay Chou's carnival tour started in Sydney, Australia. About 800 square meters of Rdio display from Unilumin Group was used on site, with ultra-wide viewing angles and excellent display effects, creating exclusive memories on this trip with all the fans who attended the appointment. (3)Immersive exhibition hall: In the field of cultural exhibition halls, the company provides immersive exhibition hall solutions integrating sound, light and electricity, combined with comprehensive services of display screens and content production, to create a fascinating visiting experience for some cultural exhibition halls, museums and commercial spaces. For example: Hunan Museum Mawangdui Han Dynasty Culture Immersive Digital Exhibition, Unilumin Technology's world's first museum LED sound-transparent immersive dome space, experience the immersive audio-visual of "sound and picture resonance". (4) Applications related to overseas sports events: In addition to providing display and lighting solutions for major international events such as the European Cup in Germany and the Paris Olympics, the company is also exploring new business opportunities in markets such as off-site broadcasting.
3. Where does the decrease in LED display cost mainly come from?
Answer: The decrease in LED display cost mainly comes from the following two aspects: (1) Decline in raw material costs: The decrease in raw material costs is mainly due to the decrease in the prices of key components such as LED chips, lamp beads, driver ICs, and packaging materials. As production technology matures and market demand grows, economies of scale enable raw material manufacturers to produce higher-quality products at lower costs. In addition, the development and application of new materials, such as more efficient luminescent materials and more economical packaging technologies, also help reduce raw material costs.(2) Improvement of process technology: With the development of automation and intelligent technology, the production process of LED display screens has become more efficient. Advanced inspection technology and equipment can more accurately identify defects in the production process and reduce the output of defective products, thus reducing the scrap rate and rework costs. At the same time, the development of more efficient luminescent materials, more economical packaging technology, improved heat dissipation design, etc. are all effective ways to reduce costs through technological innovation.
4. Introduction to the development of the company's virtual digital human business?
Answer: At present, the virtual digital human business mainly focuses on providing customized project needs. The company's virtual digital human has been fully connected to various AI tools to form an integrated solution. With the help of AI accelerated spatial computing, motion tracking, full-view naked-eye 3D and other software systems that adapt to the company's new applications and new businesses, Unilumin has obtained multiple software copyright registration certificates to create The full-link digital production and broadcast solution of LED hardware + digital assets + virtual system + motion capture + AI forms an ecological closed loop in the vertical field; Unilumin's virtual IP family "UFriend" is also growing, with virtual images such as Qi Xiaozhen, Jiang Yixing, and Orange Cat Eight Tails emerging one after another. Looking into the future, virtual digital human products are expected to gradually penetrate into the consumer goods market, thereby opening up new areas ofA market space with strong potential.
5. If tariffs are increased, will it have an impact on the company's business? Are there corresponding measures?
Answer: The company has been deeply involved in the LED industry for many years and has established a global marketing system. At present, the marketing network has covered more than 160 countries, cooperated with more than 5,400 dealers, and established more than 20 overseas branch companies and offices. Through years of deep channel cultivation and current campaign empowerment and support, it has provided the company with steady growth momentum and market adaptability. The company is also actively building a multi-brand matrix globally to meet the needs of different markets and consumers through differentiated brand positioning and product strategies. This global strategic layout not only helps the company resist the risks of a single market, but also provides a solid foundation for continued business expansion and revenue growth. At the same time, the company is actively exploring the possibility of rationally allocating production capacity globally to cope with potential tariff changes, optimize cost structure, and enhance the flexibility of the supply chain. The company anticipates market changes in advance and takes corresponding measures, striving to ensure the steady operation and sustained and healthy development of the business in the complex international trade environment.
6. How does the company view the current stock price and market value?
Answer: The company's management has firm confidence in the company's future market competitiveness and growth potential. Through refined operation management, the company strengthens cost control, optimizes product structure, and actively expands new markets and application areas to improve operational efficiency and market response speed. At the same time, the company is also actively exploring effective ways to maintain the company's value, including but not limited to implementing dividend policies, stock buybacks, management's increase in shareholdings, etc., to safeguard the interests of shareholders and enhance the company's image and attractiveness in the capital market. The company is well aware that intrinsic value and long-term development potential are the fundamental factors that determine investment value. Therefore, the company will continue to focus on the company's long-term strategic planning and sustainable development strategy, and is committed to bringing long-term and stable returns to shareholders through performance improvement and value creation.
During the communication process of the meeting, the company's reception staff had full exchanges and communication with investors, strictly followed the relevant system regulations, and there was no leakage of undisclosed major information.
ANNA