Appotronics' Chairman LI Yi said in CNBC's interview: Automotive business will become our main revenue stream

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Sep 20, 2023, 08:00 ET

SHENZHEN, China, Sept. 20, 2023 /PRNewswire/ -- Recently, LI Yi, Chairman and CEO of Appotronics (688007.SH), introduced the Company's operation and future development in CNBC's interview. This is CNBC's second interview on LI Yi following the CES exhibition in January this year.

According to the 2023 semi-annual report of Appotronics, in 1H2023, the Company's revenue amounted to RMB1.073 billion; net profit attributable to the parent company amounted to RMB74.9146 million, representing an increase of 62.98% year-on-year; the overall gross profit margin increased by 7.39 percentage points to 37.7%. Among them, highlights are the robust recovery of cinema services and the acceleration of automotive optical business.

At the CES, United States earlier this year, BMW debuted Dee, an i-digital emotional interaction concept car. The car has a stunning four-window fusion display technology while its core components were provided by Appotronics, which attracted CNBC's first interview. Thereafter, Appotronics independently exhibited at the Shanghai Auto Show and launched the world's first automotive-grade laser headlights supporting RGB display accompanied by a showcase of various application solutions such as window outward display, in-car transparent display, in-car entertainment screen, and smart surface.

"The auto I think currently is the main future revenue for us." LI Yi answered to CNBC's question about the progress of its automotive optics business. Less than a week after this interview, Appotronics announced that it had received a cooperation notice from Hasco Vision.

Up to now, Appotronics has reached cooperation with BYD, SERES, BAIC BJEV, Hasco Vision and other top new energy vehicle players and tier-one suppliers.

"We are actively working with the leading domestic and international automakers, and these efforts will generate a significant revenue increase for us in the next two or three years, while we keep our eye open and see if there's any potential other opportunity for us, hoping we can apply our technology to enhance people's lifestyle." LI Yi said.

In international automotive markets, more opportunities have always been accompanied by more intense competition. How to stand out in the international competition? For this question, LI Yi said, "Many companies in the current market are squeezed in crowded areas, doing the same things, and are highly susceptible to elimination due to the lack of core competitiveness. As the pioneer of ALPD semiconductor laser light source technology, Appotronics focuses on innovation, new creations and groundbreaking business. That is the way how we respond to global challenges and competition."

As disclosed in the financial report, in 1H2023, Appotronics' R&D investment reached RMB126 million, accounting for 11.78% of revenue; with the original ALPD semiconductor laser light source technology as the core, the Company has obtained 1,901 authorized patents in global sphere, including 1,007 invention ones; In addition, we have officially launched home smart projection products equipped with ALPD 5.0 optical machine, which are expected to be the sales hotspot in 2H2023..Overall, Appotronics' R&D investment is among the top in the industry, creating an obvious patent advantage and high value.

"It's good timing for us now, the first half of this historic (EV) transformation is the energy revolution, while the second half with the information revolution has just begun," LI Yi said when visiting 2023 North American International Auto Show.

SOURCE Appotronics Corporation Ltd.