WindSun Science & Technology(SH:688663) Guan Cha Zhe Wang·2025-12-09 12:53Core Viewpoint - The internal letter from Liu Jingkang, founder and CEO of Insta360, addresses recent challenges faced by the company, including negative press regarding its drone sub-brand, Yingling, and allegations of exclusive agreements affecting distributors. Liu refutes claims of poor sales, highlighting strong initial performance in China and ongoing certification processes in international markets [1][2]. Group 1: Sales Performance and Market Potential - Liu Jingkang reported that the Yingling A1 drone generated over 30 million yuan in sales within 48 hours in China, indicating significant market potential [1]. - The average daily sales for the company's handheld imaging business line in the first three quarters were approximately 24 million yuan, suggesting a strong comparative performance [1]. - Despite skepticism regarding sales figures, with estimates suggesting around 4,400 units would be needed to reach 30 million yuan, Liu maintains confidence in the product's market reception [4]. Group 2: Competitive Landscape and Challenges - Liu accused industry giants of exerting pressure on suppliers, leading to challenges in securing components for the Yingling A1 drone, which has been a recurring issue for the company [2]. - The exclusive agreements reported by distributors have raised concerns about potential monopolistic practices in the market, particularly against competitors like DJI [2]. - The competitive environment has intensified, with DJI launching aggressive pricing strategies that have affected market dynamics, prompting Liu to acknowledge the impact of these tactics on the industry [8][10]. Group 3: Product Philosophy and Pricing - Liu compared the full panorama drone to the transition from horse-drawn carriages to automobiles, emphasizing its intuitive design aimed at lowering the barriers for aerial photography [3]. - The high cost of the Yingling A1 drone is attributed to the advanced technology used in its VR glasses, which exceeds the average cost of traditional drone controllers [3]. - The company aims to reduce costs through further research and development to make the product more accessible to consumers [3]. Group 4: Market Reception and Consumer Feedback - Initial consumer feedback has highlighted performance issues with the Yingling A1, including concerns about resolution and compatibility with social media platforms [6]. - Despite the innovative concept of combining drones with VR technology, the product's high price point may deter budget-sensitive consumers [6]. - The ongoing competition between Insta360 and DJI is expected to drive technological advancements and market expansion, benefiting consumers in the long run [10].