AOTO ELECTRONICS(SZ:002587)2022-11-21 16:20Group 1: Company Overview - Aoto Electronics aims to be a leading provider of intelligent video solutions, offering professional and integrated solutions for various industries including film production, transportation, education, and finance [1][2]. Group 2: Financial Performance - In the first half of 2021, the company achieved operating revenue of CNY 380.36 million, an increase of 3.97% year-on-year; net profit attributable to shareholders was CNY 10.87 million, a decrease of 4.08% [2]. - The LED display business saw a revenue increase of 59.95% year-on-year, while overseas market revenue rose by 22.98% [2]. Group 3: Research and Development - R&D expenses amounted to CNY 36.96 million, a year-on-year increase of 12.01%, representing 9.72% of operating revenue [2]. - The company has established a Mini LED intelligent manufacturing base to expand production capacity [3]. Group 4: Market Expansion - The Mini LED display products have seen a significant increase in contract amounts, with their share in LED display orders exceeding 60%, up 12 percentage points from 2020 [2][3]. - The company’s integrated meeting solutions have experienced a contract amount growth of 516.96% in the education and government sectors [4]. Group 5: Business Strategy - Aoto Electronics has launched an employee stock ownership plan, targeting a revenue growth of no less than 50% in 2021 and 100% in 2022 compared to 2020 [5]. - The company continues to pursue a "hardware + software + content" strategy to enhance its market position [5][6]. Group 6: Challenges and Future Outlook - The company faces challenges such as increased competition in the LED display market, rising raw material costs, and currency fluctuations affecting profit margins [5]. - As of June 30, 2021, the company had a total order backlog of approximately CNY 531 million, with 30-40% of LED display products delivered from inventory [5].