The first half-year report from an LED screen company! Aoto Electronics makes a big leap with Mini.

Recently, AOTO Electronics released its 2020 semi-annual report, which is also the first semi-annual report from a listed company in the downstream application of LED displays. In the first half of the year, overshadowed by the COVID-19 pandemic, AOTO Electronics actively implemented epidemic prevention measures while closely following market changes, launching epidemic prevention products and continuously promoting the "Smart +" strategy.

According to Gaogong New Display, the LED display industry generally faced delays in the resumption of work and production in the first half of the year due to the pandemic, and both domestic and international business operations were affected to varying degrees, making it difficult for companies to operate and putting pressure on performance.

From the financial data, AOTO Electronics achieved a revenue of 366 million yuan in the first half of the year, with a net profit attributable to the parent company of 11.33 million yuan, mainly due to the off-season in the first quarter compounded by the significant impact of the pandemic.

However, thanks to the gradual control of the pandemic and AOTO Electronics' timely adjustment of its business strategy according to the development of the pandemic,in the second quarter, the company achieved a revenue of approximately 228 million yuan, a year-on-year increase of 5.41%, with performance gradually returning to normal.

The semi-annual report shows that in the first half of the year, AOTO Electronics continued to focus on "Smart +" as its core strategy, with three major businesses: financial technology, LED display, and smart lighting progressing simultaneously.

Among them, the financial technology business achieved a revenue of 139 million yuan in the first half of the year, while the LED applications, including LED display and smart lighting, achieved a revenue of 226 million yuan.

Gaogong New Display learned that AOTO ElectronicsFinancial technology businessmainly targets customers such as banks, telecommunications, postal services, and government affairs, providing services such as new intelligent outlets and intelligent transformation. In the field of financial technology, AOTO Electronics has been cultivating for more than 20 years, having provided products and services to nearly 70,000 bank outlets alone.

In the first half of the year, AOTO Electronics implemented several specialized intelligent bank outlet projects, including the Housing Finance Center of China Construction Bank in Jiaxing City and the Housing Finance Center of China Construction Bank in Xi'an City, as well as completing several telecommunications smart business hall constructions, achieving a counter-cyclical growth of 2.69% in financial technology business revenue.

In terms of LED applications, affected by the pandemic, AOTO ElectronicsLED display businessshifted its focus from overseas markets to domestic markets. In the first half of the year, the company quickly expanded its domestic sales team and actively built channels and strengthened external cooperation. The cumulative revenue of the LED display business in the first half of the year was 110 million yuan.

With the development of the "5G + 8K" ultra-high-definition display industry and the government's acceleration of new infrastructure, AOTO ElectronicsMini LEDproduct layout made significant strides in the first half of the year, achieving applications in multiple fields such as conference rooms, rentals, and broadcasting. Recently, the intelligent conference room of China Merchants Bank Shenzhen Branch adopted AOTO Electronics' Mini LED 1.5 products.

In June, AOTO Electronics launched a brand new Thin version Mini LED product - the CV series. According to AOTO Electronics, the new generation CV series adopts the company's unique Mini LED packaging technology, featuring exemption-level low blue light certification, high energy efficiency, and excellent color consistency, with a lightweight and thin product design, a single box thickness of 38mm, and a weight of 5kg.

At the same time, to further promote the development of the Mini LED market and save costs for customers, AOTO Electronics has adjusted the overall price of the CV series while continuously improving product performance, facilitating the popularization of Mini LED commercial use.

According to Gaogong New Display, AOTO Electronics places great importance on product research and development and the layout of next-generation technologies. In the first half of the year, the company invested 33 million yuan in R&D, further enhancing technology across its three major businesses. As of June 30, in the field of Mini LED display, AOTO Electronics holds a total of 12 invention patents and 14 utility model patents both domestically and internationally, and is applying for 13 additional patents.

InMicro LEDfield, AOTO Electronics has made layouts, and at ISE 2020, AOTO Electronics first launched its commercial-grade P0.4 Micro LED display products.

It is worth noting that AOTO Electronics is one of the few companies in the LED display industry with self-developed control systems. All of the company's LED display solutions rely on self-developed control systems. Among them, the 64K controller is the company's core product, which is better suited for professional ultra-large ultra-high-resolution LED display fields.

Smart lighting businesshas been affected by policy adjustments and the pandemic, AOTO Electronics has carefully selected projects with better local finances for cooperation, undertaking projects such as the landscape lighting enhancement project in Nanhai Financial District, Foshan City, and the first phase of the Shenzhen Bao'an Coastal Cultural Park project. At the same time, the company is actively expanding its smart city business.

At this stage, AOTO Electronics plans to invest a total of 290 million yuan in projects such as Mini LED and smart lamp posts, and the non-public offering fundraising plan has been approved by the Securities Regulatory Commission. At the same time, the company has completed the bidding for the use rights of new industrial land located in Luohu District, Shenzhen, amounting to 96 million yuan, which is beneficial for meeting the company's future development strategy needs for operational space.

Looking ahead, AOTO Electronics will further increase R&D in technologies such as 5G, artificial intelligence, blockchain, smart lamp posts, and Mini/Micro LED, making significant strides on the path of "Smart +".