Core Insights - XGIMI Technology is focused on the research, production, and sales of various consumer-grade, automotive-grade, and engineering-grade smart projection products, with a global presence in over 100 countries and regions, and more than 6,000 offline points of sale [4] - The company has maintained its position as the top seller in China's projection industry for seven consecutive years since 2018 and has been the revenue leader in the domestic market for five years, holding approximately 30.2% market share in 2024 [4] - XGIMI has developed a strong capability base in optical technology and user interaction, allowing it to expand its product offerings to higher-demand automotive and engineering-grade projection products, with its automotive projection business already in mass production [4] Business Model - In China, XGIMI provides internet value-added services through its GMUI platform, allowing customers to access audio-visual content and various applications, sharing a portion of user payments with application developers [5] - Internationally, XGIMI collaborates with game developers to distribute games on third-party platforms and shares revenue according to pre-agreed ratios, also partnering with streaming platforms to facilitate access for overseas users [5] Financial Performance - For the fiscal years 2022 to 2025, XGIMI's revenues were approximately CNY 42.20 billion, CNY 35.52 billion, CNY 34.00 billion, and CNY 16.23 billion respectively, with net profits of CNY 5.01 billion, CNY 1.20 billion, CNY 1.20 billion, and CNY 0.88 billion [5] - The gross profit margin has shown fluctuations, with gross profits of CNY 1.48 billion (35.0%), CNY 1.06 billion (29.8%), CNY 1.03 billion (30.3%), and CNY 445.51 million (27.9%) over the same periods [8]

Core Viewpoint - XGIMI Technology is a leading player in the projection industry, focusing on the development, production, and sales of various smart projection products across multiple sectors, including consumer, automotive, and engineering applications [3]. Group 1: Business Overview - XGIMI Technology has a global presence, operating in over 100 countries and regions, with more than 6,000 offline points and cumulative shipment of over 7 million projection devices [3]. - The company has maintained its position as the top seller in China's projection industry for seven consecutive years since 2018 and has been the revenue leader in the domestic market for five years since 2020, holding approximately 30.2% market share in the mid-to-high-end projection sector for 2024 [3]. Group 2: Product Development and Innovation - XGIMI Technology leverages its core advantages in optical technology, Eagle Eye optical computing, and GMUI interactive experience to expand its product offerings from consumer-grade to automotive and engineering-grade projection products [3]. - The automotive projection business focuses on in-car audio-visual projection and smart car light projection, which has already achieved mass production and delivery, being utilized by leading automotive manufacturers such as Seres, JAC Motors, and BAIC in various new energy vehicle models [3]. Group 3: Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the first half of 2025 was approximately CNY 4.22 billion, CNY 3.55 billion, CNY 3.40 billion, and CNY 1.62 billion respectively [4]. - Profit figures for the same periods were approximately CNY 501 million, CNY 120 million, CNY 120 million, and CNY 88 million [4]. - The gross profit margin has shown fluctuations, with 35.0% in 2022, decreasing to 29.8% in 2023, and then slightly recovering to 30.3% in 2024 [7].

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The domestic projection market is optimizing, with the company maintaining a leading position in retail market share at 31.0% in Q2 2025, reflecting a year-on-year increase of 4.7 percentage points [2] - The company is expanding its overseas market presence, with significant growth in Amazon sales in France (+83%), Germany (+175%), and Italy (+173%) in Q2 2025 [2] - The company is diversifying into new business areas such as automotive and commercial projections, which are expected to contribute to future growth [2] Financial Performance - For H1 2025, the company reported revenue of 1.63 billion yuan, a year-on-year increase of 1.6%, and a net profit of 89 million yuan, up 2062.3% [1] - The gross margin for Q2 2025 was 32.6%, an increase of 2.4 percentage points, while the net profit margin improved to 3.2%, up 4.5 percentage points [3] - The company expects net profits to grow to 280 million yuan in 2025, 552 million yuan in 2026, and 833 million yuan in 2027, with corresponding dynamic P/E ratios of 31.9x, 16.3x, and 10.8x [4] Market Position and Strategy - The company is focusing on enhancing production efficiency, R&D innovation, and supply chain improvements to optimize resource allocation and cost control [3] - The company has launched new products in overseas markets, including the MoGo4 and MoGo4Laser, which have received multiple awards and are expected to drive market share growth [2] - The automotive projection business is gaining traction, with products being integrated into various vehicle models, creating a comprehensive in-car projection solution [2]

Group 1 - Shenzhen Guangfeng Technology Co., Ltd. has obtained a patent for a "Projection Device and Projection Equipment," with the authorization announcement number CN 223272771 U, and the application date is August 2024 [1] - The patent describes a projection device that includes an illumination module, a light waveguide module, a light guiding module, and a light modulator, which aims to reduce the overall size of the projection device by reusing the illumination and imaging light paths [1] Group 2 - Shenzhen Guangfeng Technology Co., Ltd. was established in 2006 and is located in Shenzhen, primarily engaged in the manufacturing of computers, communications, and other electronic devices [2] - The company has a registered capital of 4,592.91145 million RMB and has made investments in 23 enterprises, participated in 444 bidding projects, and holds 2,297 patent information entries [2]

Core Viewpoint - Guangzhou Shiyuan Electronic Technology Co., Ltd. has obtained a patent for a "Single Chip LCD Projector," indicating its ongoing innovation in the projection technology sector [1] Group 1: Patent Details - The patent includes a design for a single chip LCD projector featuring an illumination system and a projection imaging system [2] - The illumination system consists of an LED light board with specific dimensions for effective light emission, including a length between 9mm and 11.5mm and a width between 6mm and 9mm [2] - The projection imaging system incorporates an LCD liquid crystal light valve and a projection lens, designed to enhance light utilization and brightness uniformity [2] Group 2: Company Overview - Guangzhou Shiyuan Electronic Technology Co., Ltd. was established in 2005 and is based in Guangzhou, focusing primarily on research and experimental development [3] - The company has a registered capital of 6,960.16545 million RMB and has invested in 49 enterprises while participating in 109 bidding projects [3] - The company holds a significant number of intellectual property assets, including 1,275 trademark records and 5,000 patent records, along with 50 administrative licenses [3]