Leyard(SZ:300296)2021-03-30 16:00Financial Performance - In 2020, overseas revenue declined by 28.13% due to the global pandemic, leading to a significant drop in net profit and a large goodwill impairment in the U.S. subsidiary, totaling CNY 1.307 billion[6]. - Domestic revenue fell by 40.29%, with a gross margin decrease to 21.75%, resulting in substantial goodwill impairments across the company's lighting segment[6]. - The cultural tourism business experienced a revenue decline of 56.32% due to the pandemic and government deleveraging policies[6]. - Leyard achieved a revenue of CNY 3.5 billion in 2020, representing a year-on-year increase of 15% compared to CNY 3.04 billion in 2019[31]. - The company's net profit attributable to shareholders was CNY 450 million, up 20% from CNY 375 million in the previous year[31]. - The company's operating revenue for 2020 was ¥6,633,666,880.42, a decrease of 26.68% compared to ¥9,047,469,208.30 in 2019[45]. - The net profit attributable to shareholders for 2020 was -¥976,435,225.82, representing a decline of 238.71% from ¥703,954,054.77 in 2019[45]. - The net cash flow from operating activities increased by 21.64% to ¥1,110,885,918.39 in 2020, compared to ¥913,223,821.69 in 2019[45]. - The total assets at the end of 2020 were ¥13,637,449,477.74, down 11.32% from ¥15,378,001,095.42 at the end of 2019[45]. - The basic earnings per share for 2020 was -¥0.3840, a decrease of 238.73% from ¥0.2768 in 2019[45]. - The net profit attributable to shareholders in Q4 2020 was -¥1,291,950,895.00, indicating significant losses in that quarter[49]. - The company received government subsidies amounting to ¥75,383,262.67 in 2020, an increase from ¥57,928,713.35 in 2019[56]. - The total equity attributable to shareholders at the end of 2020 was ¥7,229,013,173.62, down 13.79% from ¥8,384,979,734.91 at the end of 2019[45]. Market and Product Development - The company's main business, which focuses on smart display products, accounted for 78% of total revenue in 2020, despite the overall revenue decline[8]. - The Micro LED technology was officially put into production in 2020, enhancing the company's core competitiveness and expanding the market space for the LED industry[10]. - The LED industry is entering a new growth cycle, with significant order increases and signs of supply shortages due to the commercialization of Micro LED technology[11]. - Leyard's LED display products accounted for 75% of total revenue, with a significant increase in demand for small-pitch LED displays, which saw a growth of 30% year-on-year[31]. - The company plans to expand its market presence in Europe and North America, targeting a 25% increase in international sales by 2022[31]. - Leyard is investing CNY 200 million in R&D for new Micro LED technology, aiming to launch products by the end of 2021[31]. - The company reported a user base growth of 40% in its smart display solutions, reaching over 10,000 users by the end of 2020[31]. - The company has completed the acquisition of Planar Systems, enhancing its product portfolio and market share in the U.S. display market[31]. - The company is focusing on strategic partnerships with technology firms to enhance its product offerings and market competitiveness[31]. - The company plans to launch Micro LED large-size home TVs targeting high-end residential and commercial markets, with future breakthroughs expected to enter the mass consumer market[73]. - The company has a total of 901 patents in LED display technology, including 42 patents specifically for Micro LED, reflecting its strong innovation capabilities[74]. - The company aims to enhance its brand presence in the consumer market by leveraging the "PLANAR" brand, which has nearly 38 years of history in the overseas display sector[75]. - The company has established a multi-dimensional market promotion network to meet the diverse needs of commercial display customers[75]. - The global Micro LED market is projected to reach $2.9 billion by 2025, with large display applications accounting for approximately 60% of this market[94]. - The domestic small-pitch LED market has seen a significant shift, with applications expanding from high-end markets to lower-tier cities, indicating a larger market potential[104]. - The demand for video conferencing integrated machines has surged due to the pandemic, leading to substantial growth in the commercial video conferencing market[105]. - The LED display industry is experiencing a recovery, with downstream demand showing signs of improvement since November 2020, leading to a supply-demand imbalance[99]. - The introduction of Micro LED technology is expected to drive a new high-growth cycle in the LED industry, expanding market opportunities significantly[102]. - Major companies are investing in Micro LED technology development, with significant collaborations and joint ventures established in 2020[94]. - The establishment of the Mini/Micro LED display industry branch by the China Electronic Video Industry Association aims to reduce costs and set standards for the industry[98]. Technology and Innovation - The Micro LED technology combines the advantages of LCD and OLED, offering superior performance in terms of power efficiency, color range, and stability[93]. - The LED display products are entering an optimal cost-performance phase, enhancing market acceptance and product quality stability[103]. - The LED industry has seen increased concentration, particularly in downstream applications, with many weaker companies eliminated during the pandemic, benefiting leading firms[109]. - Leyard has grown from a small company to a publicly listed enterprise with nearly 10 billion RMB in annual revenue, employing 5,000 people globally[110]. - Leyard has undergone three major technological innovations since its establishment, significantly impacting the global display industry[116]. - The first innovation in 1998 introduced the first full-color LED display in China, marking the start of the full-color LED display era[117]. - The second innovation in 2010 led to the development of the world's first 2.5mm small-pitch HD LED display panel, establishing a new era for small-pitch LED displays[117]. - The third innovation in 2016 initiated the industrialization of Micro LED technology, with a production base established in 2020[118][119]. - Leyard's R&D focuses on Micro LED technology, including optimization of transfer techniques and surface consistency[120][123]. - The Micro LED Research Institute was established in October 2020 to tackle technical challenges in Micro LED display technology[121]. - Leyard is developing full-color Micro LED technology using quantum dots and optimizing color conversion methods to enhance efficiency and reduce costs[125]. - The company has focused on energy-saving and integration trends in LED display driver ICs, reducing the operating voltage from 5V to below 3.8V[129]. - The Mini LED backlight display technology is being developed to meet high-end display specifications, with a focus on notebook and automotive display applications[131]. - The company has established a production capacity of 1.8 million units per month at its Beijing production base, focusing on micro and small pitch products[153]. - The company has launched four Micro LED commercial display products, including 40-inch, 54-inch, 67-inch, and 81-inch models[169]. - The company aims to develop Micro LED displays with a pixel pitch below P0.4mm, targeting a size of 135 inches for 8K resolution[170]. - The company is focusing on AM-driven Micro LED displays to improve brightness uniformity and reduce power consumption[172]. - The company is developing Micro LED spherical screens for applications in VR experience centers and flight simulators, targeting a pixel pitch of P1.25mm or lower[175]. - The company is entering the consumer television market with Micro LED technology, which offers superior contrast, brightness, and color quality[177]. - The company has Mini LED backlight products ready for mass production, with a focus on gaming monitors and professional content editing displays[178]. - The company has established a joint venture with Taiwan Crystal Optoelectronics for Micro LED mass production, becoming the first in the world to do so[159]. Product Offerings and Market Strategy - The company reported that its LED integrated meeting machine sales revenue exceeded 100 million in 2020, driven by increased demand for online office and remote meetings due to the pandemic[192]. - The company has developed two major product systems for its LED conference system, including the iAT series (110 inches, 136 inches, 165 inches, 220 inches) and the TXP series (108 inches, 135 inches, 162 inches, 216 inches)[195]. - The LED conference system features ultra-thin design with a total thickness of 20mm and ultra-narrow bezels, enhancing aesthetic appeal and installation convenience[197]. - The company has launched the GXY series targeting mainstream control systems, emphasizing flexibility, lightweight design, and ease of installation and maintenance[190]. - The company is focusing on the development of a self-controlled display system to achieve domestic substitution in core chips, basic hardware, operating systems, middleware, and data servers[199]. - The company has introduced Micro LED commercial display standard products, including 40-inch 2K (P0.4), 54-inch 2K (P0.6), 67-inch 2K (P0.7), and 81-inch 2K (P0.9) to meet high-end professional display needs[183]. - The company participated in the formulation of the "General Technical Specifications for Indoor LED Commercial Integrated Machines," reflecting its commitment to industry standards and quality[198]. - The company has adopted a professional channel operation model for its products, focusing on both domestic and international markets[191]. - The company’s MiniBox, HKS, and QF series products are designed for mid-range demand, featuring a modular design with a thickness as low as 9.6mm[187]. - The company’s high-end demand products utilize patented front and rear installation maintenance designs, enhancing user convenience and operational efficiency[186]. Future Outlook and Risks - The company does not face significant risks to its ongoing operations, supported by its leading position in the LED industry and the overall industry development trends[12]. - Future risks include the potential failure to achieve breakthroughs in Micro LED technology and the emergence of superior mass transfer technologies in the market[13][17]. - Leyard's board has set a performance guidance for 2021, projecting a revenue growth of 20% and a net profit increase of 15%[31].