In 2023, XGIMI Technology s revenue and net profit will both decline, and it seems that transformati

Mondo Finance Updated on 2024-02-25

XGIMI Technology Co., Ltd. (hereinafter referred to as XGIMI Technology) was founded in Chengdu High-tech Zone in 2013 and listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in March 2021.

According to IDC data, since 2018, after breaking the monopoly of foreign brands in China's projector market, XGIMI has won the first place in shipments for five and a half consecutive years.

1. For three and a half consecutive years, it has won the first place in both shipments and sales, and has opened the gap with followers. It is in a leading position in the intelligent projection industry as a whole. Deeply cultivated for ten years, XGIMI is based in Chengdu, and its business radiation includes more than 100 countries and regions such as Germany, the United Kingdom, France, Russia, Japan, and the United States, providing products and services to more than 5 million end users around the world.

From the perspective of XGIMI Technology's revenue composition, "projector machines and accessories" is its core business, accounting for more than ninety percent; There are also a small number of "Internet operations" and other businesses. What is the business of "Internet operation", presumably it is the consumption of TV users, including but not limited to membership fees, on-demand and the like.

The radiation in the introduction of more than 100 countries and regions, now it seems that we need to continue to work hard, because its overseas business accounts for just over two percent, the amount is relatively low, and the main products are still sold in the domestic market.

In the first few years of listing, XGIMI Technology's revenue growth was at least three or four percent, and its net profit grew faster; In the first full year after listing, that is, in 2022, the growth of revenue and net profit was less than 5%, which is already lower than the growth level of the entire economy; In 2023, both revenue and net profit will plummet, and then come. The bonus period of new listings is getting shorter and shorter, and I don't know if it is related to the growing group of listed companies.

From a quarterly point of view, the year-on-year growth of revenue and net profit** started in the second half of 2022, which means that from the third quarter of 2023, revenue will be in a spiral**, which can explain why there was a loss in the current quarter, even if the fourth quarter, which is its obvious peak season, will still perform poorly in 2023.

XGIMI Technology's gross profit margin has continued to grow since 2019, and after reaching a peak of 36% in 2022, it will turn around and go down in 2023, but the ** range is relatively gentle. The net profit from sales is only about 10% on average in the year of listing and the two years before and after, and the performance in the previous years and 2023 is very average. In terms of return on equity, there was still a "sunflower book" performance, that is, in 2020 before listing, it inevitably declined with the dilution effect, until it was beaten back to its original shape in 2023.

XGIMI Technology's period expenses continue to grow in the proportion of revenue, even when the revenue growth was relatively fast in previous years, mainly because of the relatively high proportion of sales expenses, and the faster growth in recent years is R & D expenses. Although R&D and sales are both necessary business expenses, it is not sustainable for expenses to grow faster than revenue.

The profitability of its main business was about 10 percentage points in the year of listing and in the two years before and after, and the situation in the first three quarters of 2023 was worse, not only not as good as the previous three years, but even the loss of the main business.

Fortunately, there are good net income in other incomes every year, especially in the last three years (2023 is the first three quarters), which are more than 100 million, mainly subsidies, and there are also some other projects, but relatively few. This Dongdong also makes money on subsidies, so I don't know what to say.

From the perspective of the cost composition of the quarter, the trend of gross profit margin declining quarter by quarter is quite obvious, in its traditional off-season, that is.

In the second and third quarters, the performance in 2022 will only be poor, and there will be a loss in the main business in 2023, and it is estimated that the fourth quarter has turned around, but the bigger test in 2024 is coming soon.

XGIMI Technology's cash flow performance is average, especially in the past two years, the cash flow of operating activities has fluctuated, which has nothing to do with the increase in inventory and taxes.

The size of inventories is getting higher and higher, and although the proportion of liquid assets has decreased due to the growth of current assets after financing, it has since begun to pick up. Combined with its revenue, which has not grown significantly, or even declined, no one would believe that these inventories are growing organically.

After listing, its previously poor long-term and short-term solvency has improved significantly, and it is improving year by year. The reason is very simple,XGIMI technology is only declining in profitability,Not a loss,As long as the dividends are not too strong,This aspect will continue to improve。

Projector or laser TV,After all, it's also TV,The degree to which TV is not welcomed in the family,In addition to affecting other TVs,It will also have an impact on laser TV。 Because, the main reason for the unpopularity of TV is that the content is not good, not the outdated technology of the TV.

The new listing is facing such embarrassment, how to get it next, XGIMI Technology may need to think about it carefully.

Disclaimer: The above is a personal analysis and does not constitute investment advice to anyone!

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