Under the background of fierce competition for homogenization and low price of industry products, the projector market has fallen into a "low-end" circle 688696. SH) is making a hard landing.

On September 12, the company's semi-annual performance briefing was held, and XGIMI Technology's performance dilemma and market value plummeted once again became the focus of investors' attention. According to the semi-annual report disclosed by XGIMI Technology, the company achieved revenue of 1.6 billion yuan in the first half of the year, a year-on-year decrease of 1.66%; The net profit attributable to shareholders of listed companies in the same period was only 4.1003 million yuan, compared with 92.7273 million yuan in the same period last year, a sharp decrease of 95.58%; The net profit after deducting non-profits was 14.8411 million yuan, a sharp decrease of 125.36% year-on-year.

It is not only the company's net profit that has plummeted, but also the company's market capitalization. As of the close of trading on September 14, the company's share price closed at 52.24 yuan, down 3.79%, with a total market value of only 3.66 billion yuan. In just four months, the company's market value has shrunk significantly, and more than half of its market value has evaporated compared to the high of 113.2 yuan in May (before the resumption). In the context of the "double kill" of performance and stock price, the company has been frequently sold by shareholders "Baidu".

Sales remain the first, but net profit has plummeted, what has XGIMI experienced?

IDC data shows,2018The top five brands in China's annual projection equipment market shipments are XGIMI、Epson、BenQ、Sony and Nippon Electric,The domestic brand XGIMI became the first brand in annual shipments for the first time。 In 2023, the total shipments of China's projection equipment market will reach a total of 4.736 million units, and the top five brands in terms of shipments are XGIMI, nuts, Epson, Fengmi, and dangbei.

In other words, in the six years from 2018 to 2023, even if the top five rankings have changed and changed, XGIMI Technology's shipments still rank first, and it has been ranked first for six consecutive years; In addition, the company's sales have also remained the first for four consecutive years.

XGIMI Technology offline stores. Photo by a reporter from Nandu Bay Finance Agency

However, the first position can hardly hide the fact that the company's net profit has declined one after another. Financial data show that in 2023, the company will achieve revenue of 3.557 billion yuan, a year-on-year decrease of 15.77%, and a net profit of 121 million yuan in the same period, a sharp decrease of 75.97% year-on-year; The net profit after deducting non-profits was 68.2222 million yuan, down 84.57% year-on-year.

In fact, as early as 2022, XGIMI Technology's performance showed signs of pressure, and the company's revenue and net profit that year were 4.222 billion yuan and 502 million yuan respectively, a slight increase of 4.57% and 3.72% year-on-year, respectively, compared with 881.43% in 2019 and 187.79% in 2020.

So, what has XGIMI Technology experienced over the years? Why is performance skyrocketing and plummeting like a roller coaster?

First of all, the overall scale of the industry is in a shrinking trend. According to the data disclosed by IDC, in 2023, China's projector market will ship 4.736 million units, a year-on-year decrease of 6.2%; sales were 14.77 billion yuan, down 25.6% year-on-year.

The whole market is in the haze of "low-end" and "price war". According to Lotu Technology data, in 2023, projectors below 500 yuan will become a concentrated export of sales, accounting for 31.9% of sales, up 8.2% year-on-year; In the first half of 2024, the omni-channel market sales of smart projection (excluding laser TV) in China will be 2.889 million units, a year-on-year increase of 3.5%; The sales volume was 4.76 billion yuan, down 10.2% year-on-year.

In the face of an extremely involuted market,XGIMI Technology has long been involved in one after another"Price war",In order to seize market share to ensure"Projector brother"Status。 But the two-sided nature of price wars has long been demonstrated in multiple rounds of business wars: sacrificing profit margins for market share.

Superimposed on high inventory, etc., there is a performance dilemma in XGIMI Technology's semi-annual report: revenue has declined slightly, and net profit has plummeted. At the recent performance briefing, the company's executives said: "In the first half of 2024, the main reason for the year-on-year decline in the company's gross profit margin is the destocking of some old products and the reduction of the terminal sales price of some products. ”

It is difficult to highlight the advantages of the technical route, and the market value shrinks frequently by the "Baidu system".

Why are you involved in price wars? Aside from elements such as industry competition and inventory, there are also technical issues.

According to the reporter's understanding, the projector industry is mainly divided into three technical routes: LCD, DLP and a combination of the twoLCOS, each of which has its own advantages and disadvantages. Industry analysts believe that the display effect of the three technical routes is not much different, which is also the reason why the projector technical route is in controversy.

Regarding technical issues, XGIMI Technology executives only responded: "The company's current mainstream products use the DLP route, but the company has certain technical reserves for LCD, LCOS and other routes to ensure that the company can respond to market technology changes in a timely manner." ”

Among the three technical routes, the cost of the LCD route is lower, and the 1LCD series products are mostly within 1,000 yuan.

In addition to the technical route, TV is the biggest competitor outside the projector. Focus on TV technology,TV manufacturers are rushing all the way on the road of picture quality technology,From OLEDThe toMiniLED to MicroLED, etc.,The advantage of picture quality is difficult to surpass projectors at the same price。

Some people in the industry said,The core element of smart projectors was mainly in the large screen size,But with the large-scale decline in the price of large-size smart TVs,Smart projectors' cost-effective "large screen display"The advantages are no longer highlighted。 And compared with LCD TVs, projectors have higher environmental requirements, and need blackout curtains to block external light sources, and some consumers say that the service life of projectors is shorter.

Therefore, the projector has fallen into the embarrassing situation that the mid-to-high-end products are not cost-effective, and the sales of low-end products are good, but it is difficult to make money.

In the above context, XGIMI Technology has been frequently reduced by the "Baidu system". The reporter of Nandu · Bay Finance Agency noticed that since the lifting of the sales restriction in March 2022, Baidu Netcom and its concerted actor Baidu Biwei have repeatedly thrown out large-scale reduction plans. According to the rough estimation of Baidu's reduction range price and the number of reductions disclosed by XGIMI Technology, Baidu Netcom and Baidu Biwei have reduced their holdings and cashed out a total of more than 800 million yuan.

"Baidu" partially reduced. From XGIMI Technology announcement

On the one hand, the performance is declining, the "Baidu system" continues to sell, and on the other hand, the market value continues to shrink. At the close of trading on September 14, the company's share price closed at 52.24 yuan, down 3.79%, with a total market value of only 3.66 billion yuan, and the market value has shrunk significantly.

How to break the game? XGIMI Technology is also trying to give an answer. Zhong Bo, chairman of the company, recently responded: "The stock price trend of the secondary market is affected by multiple factors such as the macro environment and market sentiment. On the one hand, the company continues to expand overseas markets and strengthen its global market coverage capabilities. On the other hand, the company actively deploys new businesses such as vehicles to accumulate new momentum for the company's development. ”

Obviously, XGIMI Technology's answer lies in "going to sea" and "new businesses such as vehicles".

As early as 2016, Jimi Technology launched the intelligent projection product Aladdin for the Japan market. According to financial data, the company will achieve overseas revenue of 913 million yuan in 2023, a year-on-year increase of 15.6%, and the corresponding gross profit margin will reach 44.63%, much higher than the domestic gross profit margin of 26.66%. However, the gross profit margin of the overseas market is also in a downward trend, and the gross profit margin of XGIMI Technology's overseas market will decrease by 2.86 percentage points year-on-year in 2023.

For new businesses such as vehicles, XGIMI Technology only responded: "The company is actively promoting the introduction of automotive products into the supply chain of domestic and foreign customers. ”

Despite this,For the prospects of the company's projector line,Zhong Bo, chairman of XGIMI Technology, still insists on confidence,He recently said:At present, the domestic market demand is under pressure in stages,Intelligent projection has the nature of optional consumer goods,The company's products and technologies are still continuing to break through,At the same time, the company is also actively promoting overseas market expansion,The company maintains confidence in the prospects of the industry。