Comments on the Management of Liard’s 2023 Annual Board of Directors
() The operating comments of the Board of Directors in 2023 are as follows:
I. The industry in which the company is located during the reporting period.
The company shall comply with the disclosure requirements of "LED Industry Chain Related Business" in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.4-Information Disclosure of Growth Enterprise Market Industry.
Technology iteration expands industry market space
In 2023, the LED display industry released new signals from the maturity of new technologies and new processes and the distribution of global market demand.
1. Global LED display market demand forecast
1.1 Global demand continues to grow.
According to futuresource’s forecast in 2023, the five-year value of the global market CAGR (from 2022 to 2027) is +18.4%, and the value will reach $20.4 billion in 2027, an increase of 160% compared with 2022.
1.2 Regional demand growth differences
According to Futuresource data, from the perspective of global demand growth, the demand growth rate will accelerate year by year from 2024 to 2027, but there will be differences in demand growth rate between different regions of the world. APAC (including China and RoAPAC), the largest region in the world, accounts for 65.8% of the global market in 2022. It is predicted that the CAGR in 2022-2027 will be +16.0%, which is lower than other regions. America (including South America and North America) will grow at a rate of 25% in the five-year forecast period. In EMEA (including Europe, Middle East and Africa), it is predicted that the CAGR in 2022-2027 will be 21.1%.
In 2024, the global demand growth rate was 18.44%; Americas has the fastest growth rate, and the growth rate is expected to be 26.38%; EMEA year-on-year growth forecast
19.67%; The growth rate of APAC is 15.64%.
1.3 Adjustment of demand pattern
Due to the different five-year value CAGR(2022-2027) of LED market demand in different regions of the world, APAC has the slowest growth rate, Americas has the fastest growth rate, and EMEA has a faster growth rate than APAC. The market share of APAC will decrease from 65.7% in 2023 to 59.2% in 2027. The market share of Americas will increase from 21.1% in 2023 to 26% in 2027; The market share of EMEA will increase from 13.2% in 2023 to 14.8% in 2027. The demand of LED market shifts to Europe and America.
2. The new demand drives the continuous growth of the demand for small spacing in Chinese mainland.
2.1 Demand Driving Force
According to DISICIEN’s forecast, in the next five years, starting from 2024, Chinese mainland’s LED small pitch market sales will remain at 10%.
There will be many driving forces for growth in the next five years, mainly as follows:
(1) Substitution of competing products: continuous substitution of competing LCD splicing, DLP splicing, conference projection and other products, mainly focusing on command and scheduling and conference application scenarios;
(2) Policy-driven: With the launch of the Tenth Five-Year Plan, the potential of sub-sectors appears, such as energy, emergency management, environmental protection, radio and television, etc., and the demand for large screens will continue to increase;
(3) New scene driving: XR virtual shooting, commercial display application, digital exhibition and other new scene driving;
(4) New technology drive: the concept of Micro LED continues to penetrate, which promotes the process of space miniaturization, and product upgrading drives sales growth;
(5) Form-driven new products: The market of intelligent LED integrated machine keeps growing, which drives the scene applications such as conferences and letters.
2.2 New demand main driver
Since 2024, the demand for self-renewal has increased year by year, accounting for 35% of the market demand in the next five years; The new demand brought by competing products substitution, new technologies/new products/new scenarios accounts for 65%.
3. Characteristics and future forecast of short spacing demand in Chinese mainland in 2023.
3.1 Market characteristics
(1) Slow growth rate: In 2023, the domestic small-pitch terminal market increased by 13.5% year-on-year, and the growth rate slowed down, mainly because the current market price war, especially the price of COB products, dropped significantly, and the budgets of local governments continued to tighten, so the micro-pitch process did not accelerate significantly, and the sales growth slowed down;
(2) Channel market: The price war is fierce, the gross profit margin of each agent link is obviously reduced, the competition is fierce, the competition for spacing is intensified, it continues to spread in the direction of P1.8 and 1.5, and the sales growth is weak;
(3) Industry engineering market: the local government budget has been tightened, but the continuous release of some sub-sector projects has growth characteristics, such as radio and television, public security law, military, cultural tourism, commercial retail and other sub-sector projects have all recovered, and the year-on-year growth has driven the growth of market demand; The exhibition industry grew rapidly.
(4)MIP/COB new technology: With the maturity of new technology and the release of production capacity, the price continues to fall, the demand growth exceeds expectations, and it gradually competes for the SMD market with small spacing.
3.2 Industry Distribution Characteristics
In 2023, the proportion of big government industries in Chinese mainland is still 71.6%, among which, the proportion of public security law, education, radio and television media and the military has increased. The continuous improvement of product cost performance has increased the application industry of LED with small spacing. In the future, the application of sub-sectors will be diversified, the application proportion of big government will also decline, and the demand for commercial applications outside the government will increase.
Data source: DISCIEN
3.3 Spacing distribution characteristics
In 2023, the market of P2.5 has obviously shrunk, and the price has bottomed out, accounting for only 12.5% of sales, mainly in the channel market, and the competition in the market interval segment has obviously moved down; The P1.5 market has obviously expanded, mainly because the gap has spread to the two major markets of channels and industries, and its share has increased significantly; P1.2 The market share increased slightly throughout the year, but the growth rate was less than expected, which was mainly affected by the tightening of the government budget, but the price dropped obviously, mainly because it was the main sales pitch in the COB market, and the price performance was transparent and the competition was intensified; The annual sales below P1.0 accounted for 10.1%, which was higher than that in 2022, and was mainly used in command and dispatch and conference scenarios.
Data source: DISCIEN
3.4 Future spacing prediction
According to DISCIEN’s forecast, in the next five years, from the perspective of LED sales market, the process of spacing miniaturization will accelerate; With the continuous introduction of products with spacing below 1.0 and the continuous decline of cost and price, the application of products with spacing below P1.0 will increase in the future, such as P0.9/0.8/0.7/0.6, etc. It is estimated that the sales volume in B2B market will account for more than 35% by 2028. The proportion within P1.4 is increasing year by year, and will reach 68.4% in 2028.
3.5 spacing gradually narrowed with the logic of industrial development.
LED display products go from outdoor to indoor, from commercial to civilian, with higher and higher requirements for high definition, lower technology-driven costs and higher cost performance ratio, and the spacing is bound to gradually narrow.
At the same time, in 2023, the proportion of flip-chip shipments driven by micro-LEDs increased.
4. Micro products are the dominant industry in the future.
At present, more than 50% display manufacturers are laying out Micro LED, and the process path is either COB or MIP.
4.1 definition of micro led
Liard is the first company in the industry to publish a white paper on micro-LED, and defined the specifications of micro-LED chips, leading the development of standards in CMMA:
(1)Micro LED chip size requirements: Micro LED chip size requirements are less than 100μ m on either side of the length and width;
(2)Micro LED chip structure and application process requirements: Micro LED chips should be flip-chip or micro LED chips should be applied in a solderless process.
4.2 Micro LED display product classification
According to different driving methods, Micro LED display can be divided into active driving display and passive driving display. At present, the active drive display screen is still under development and has not yet reached mass production.
According to different packaging structures, Micro LED display can be divided into MIP packaging (single pixel packaging or integrated LED packaging) display and COB packaging (module level) display.
4.3 Product differences in different packaging modes
Because products with different pitches adopt different process modes and have different cost performance, the coexistence of multiple packaging modes will last for some time. However, from the trend of decreasing spacing and increasing cost performance, COB and MIP packaging modes have obvious advantages. In particular, MIP is suitable for smaller chips, and there is more room for reducing pitch and cost. The future trend of Micro LED is determined, and MIP has obvious advantages.
Simplify the above content and clearly see the advantages of MIP:
4.4 Performance differences between Micro LED display and SMD conventional display
Compared with SMD conventional display, the performance indexes of Micro LED display are obviously improved, and the requirements of industry standards are also higher.
4.5 Micro LED development progress and trend
(1)Micro LED chips are getting smaller and smaller.
Based on the trend of cost reduction, the size of Micro LED chips will become smaller and smaller; In 2020, Lijing, a joint venture company established by Liard and Fucai Holdings, took the lead in mass production of Micro LED with 0406(89μm *150μm) chip. At present, 0305(75*125μm) chip is used. In 2024, it is expected to mass produce Micro LED products with no substrate below 50μm, so the spacing of LED display products will be smaller and smaller, and the cost will be lower and lower.
(2) Micro-LED requires more and more packaging.
The size of LED chips is getting smaller and smaller, and the display spacing of LEDs is getting smaller and smaller, and the number of LED chips per unit area is increasing sharply. For example, the number of micro LEDs per square meter is 3,413,333, the number of micro LEDs per square meter is 13,653,333, and the number of micro LEDs per square meter is 19,660,800. From the current technical development, MIP is more suitable for smaller and smaller chips.
(3) The range of display product spacing covered by 3)Micro LED is expanded.
Micro LED covers 0.4-0.9mm fine pitch products when it is introduced in 2020, and 0.4-1.8mm fine pitch products in 2023. The MIP package structure is derived from single pixel package or Nin1 package. At present, the most cost-effective spacing of COB package structure is 1.25mm；; In 2024, it is expected to mass-produce Micro products with no substrate chip below 50μm, and the pitch will be extended to 0.3mm, which can fully meet the use requirements of commercial and home displays.
(4)8K ultra-high definition display products are the market demand trend.
At present, with the popularization and development of 8K Ultra HD at home and abroad, the global 8K Ultra HD ecosystem has basically taken shape.
Display: In recent years, with the comprehensive popularization of 4K ultra-high-definition standards in consumer electronics fields such as televisions, mobile phones and desktop monitors, higher-standard 8K high-end flagship products have gradually entered people’s field of vision; The company’s Micro LED display products with the pitch of P0.4~P0.9 will have a full screen resolution of 8K~16K. Equipped with the LED display and control system independently developed by the company and the advanced large-screen splicing solution, 4K ultra-high-definition HDMI signals can be directly input into the LED large-screen and displayed, with a display area with 8K resolution, which has many advantages and features such as simple signal link, few system equipment nodes, unified signal format standards, stability and reliability. The company participated in compiling the Audio-visual Technical Requirements for 8K Ultra HD Large Screen System issued by Zhongguancun Audio-visual Industry Technology Innovation Alliance.
Camera and storage: As early as 2015, RED launched an 8K camera. In 2017, Panasonic and Sony successively launched 8K cameras. The supporting high-speed and large-capacity storage facilities and cloud storage services have become the standard for film and television production in recent years.
Content side: overseas YouTube, domestic Tencent, Iqiyi, etc. have supported 8K content, and as early as 2019, Rakuten launched 8K streaming media service;
Radio and TV: South Korea’s KBS recorded the Winter Olympics in 8K in 2018, and Japan’s NHK broadcasted it in 8K at the Tokyo Olympics in 2020. Soon after, the Beijing Winter Olympics in 2022 also adopted 8K video technology for broadcasting.
Transmission end: With the listing of 5G in 2019 and the popularization and application in recent years, 8K signal transmission has been fully guaranteed.
4.6 Micro LED market scale accelerated amplification
According to Futuresource’s forecast, during the 10-year forecast period from 2023 to 2032, the market revenue of Micro LED will increase by 101.3% CAGR, and during this period, it will bring a cumulative income of 63,440,600,600 dollars. From 2023 to 2027, the value of 4K Micro LED is expected to have 187.3% CAGR；; From 2028 to 2032, the revenue of 4K Micro LED will continue to grow, with CAGR of 118.7%.
5. Competing companies in the industry
II. Main businesses of the Company during the reporting period
The company shall comply with the disclosure requirements of "LED Industry Chain Related Business" in the Guidelines for Self-regulation of Listed Companies of Shenzhen Stock Exchange No.4-Information Disclosure of Growth Enterprise Market Industry.
Global LED display leader
The company is the first enterprise in China to launch full-color LED display products, the first enterprise in the world to independently develop small-pitch products, and the first enterprise in the world to mass-produce Micro LED display products. Technology leadership has always been the driving force for the company to promote the development of LED display industry.
The company has ranked first in the global LED display market for 7 years, and has the most perfect global marketing network. Market control has always been the guarantee for the company to drive LED display products to expand their applications.
1. LED display products
1.1 standardization of led products
The company’s display products can be divided into display system, display unit and display standard product according to the degree of standardization. The display system is mainly sold by "customized" direct sales, and the display unit is mainly sold by channel distribution. The display standard product is a "standardized" display product suitable for a specific scene, which can be sold by combining direct sales, distribution and e-commerce, including all-in-one conference machine, movie screen and consumer TV.
In 2022 and 2023, the proportion of standardized products exceeded that of customized products.
The company has gradually advanced from the standardization of LED modules to the standardization of box structure, installation structure, distribution cabinet and other display products, in order to achieve the goal of reducing costs and increasing efficiency.
In 2023, the product variety and product series of the company’s display system and display unit were reduced by more than 50%, which greatly improved the production efficiency and reduced the product cost.
At the same time, 80% of the hardware products of the display system have been completely standardized, and the distribution mode of display unit shipment is gradually shrinking; In the future, the display system (hardware standardization+industry attributes+software+content+operation) will be shipped, and sales through distribution mode will become the mainstream sales mode, and the company will also start "direct channel integration" in 2024.
1.2 strategic products-micro led
1.2.1 Micro product layout
At present, the Micro LED that the company can mass-produce is in the form of PCB-based MIP package, including both "black diamond" in single pixel package and "NIN 1" in integrated LED package; In 2024, the company is expected to mass-produce Micro products with no substrate chip below 50μm, and the spacing will be extended to 0.3mm, thus fully meeting the use requirements of commercial and high-end home displays.
In 2024, in addition to self-produced COB, the company will launch a large-scale Micro LED module in the form of COB package by OEM to make Micro LED display products. Since then, the company will comprehensively cover LED display products with different packaging modes of MIP/COB/POB/SMD according to the cost performance and customer demand.
At the same time, the company is working with panel companies in the industry to develop COG Micro LED products.
1.2.2 product structure
The company uses huge transfer technology and MIP packaging structure to make black diamond or Nin1 Micro LED lamp beads, and makes MIP Micro module through SMT, and makes Micro LED box with supporting structure, control chip and power supply, and finally makes Micro LED display screen with a spacing of 0.4-1.8mm, which meets high-end customers and replaces SMD products with small spacing. In 2024, it is expected to launch a 0.3mm pitch Micro LED display.
In 2024, the company launched the COB Micro module of OEM on a large scale, and made it into a box and 0.9mm and 1.25mm display screens to replace SMD products with small spacing.
1.3 micro-pitch/small-pitch/large-pitch LED display products
LED display products with a pitch of less than 1.0mm are micro-pitch products, and the demand will be large-scale from 2020; 1.0-2.5mm spacing LED display products are small spacing products, which have been listed on a large scale since 2012. LED display products with a spacing of more than 2.5mm are large spacing products.
Large-spacing products are more used in outdoor and semi-outdoor advertising screens, grid screens, transparent screens, etc., as well as ground screens and ball screens for special scene applications.
Small-pitch products are mainly used in professional display, commercial display and other application fields, and civil display is the market where LED display screens have the opportunity to open. Among them, the professional display field covers military and government-related sub-scenes such as military, public security, transportation and hospitals; The commercial display focuses on the scenes that enhance commercial value and affect market consumption behavior, among which cinema, XR virtual shooting and 3D are emerging scenes. Civil displays are mainly home TV and home theater.
TX-Micro cold screen MG-Micro cold screen
Liard Micro cold screen series products, compared with SMD, have the same brightness and power consumption reduced by 3 times, and are widely used in exhibition centers, command centers, conference rooms, studios, design centers, home theaters and other scenes.
(2) A new generation of MG series
The best-selling indoor small-spacing series upgraded products are thinner, lighter, with large module design and higher flatness, which are widely used in various indoor application scenarios.
(3)LN series
A variety of splicing methods, creative three-dimensional splicing, more than one side, are widely used in various indoor and outdoor rentals, including advertisements, trade exhibitions, conferences, concerts, sports events and so on.
(4)Minbox II series
Integrated, intelligent, the industry’s first Type-C design, redefining channel products, widely used in various conference scenarios.
(5)MGS outdoor small spacing series
IF, Red Dot two awards, a number of independent research and development patents, outdoor small spacing display products, widely used in square advertisements, shopping malls, bus stops, outdoor studios, outdoor TVs, subways, swimming pools and other screens with high humidity, protection needs and close viewing distance.
(6) Capsule screen
It adopts sound transmission screen technology, capsule-shaped visual effect, immersive, and can be designed according to different space sizes to meet the needs of different application scenarios, which is widely used in meta-cosmic scenes.
(7) Unbounded series
Differential module size design, aluminum bottom shell, supporting one-button unlocking, widely used in square advertisements, shopping mall advertisements, scenic spots advertisements, stage performances and other scenes.
1.4 Meet the needs of professional scenes
Based on the requirements of professional scenes, the company has made LED display products with different intervals and different product models into professional display products. At present, the company’s special display scenes mainly include:
1.4.1 Special products
(1)TGB series simulator visual display system: It is suitable for tactical confrontation training, and can successfully replace and surpass the visual system imported from abroad.
(2)TGS/TGF series simulator visual display system: It is suitable for full-mission simulator, can successfully replace and surpass the visual system imported from abroad, and supports 2D and 3D at the same time. At present, the product with the highest resolution on the market reaches 1.3 arc minutes.
(3) Reinforced LED display system: suitable for large ships, warships, command cabins and other mobile platforms; Tested by GJB150 series, GJB151B and other national military standards, it has the characteristics of salt fog resistance, vibration resistance, temperature shock resistance and strong electromagnetic compatibility. The localization rate of screen electronic components reaches 100%; Through the accelerated reliability test of military electronic products, the life-cycle cost of products has been greatly reduced.
1.4.2 intelligent LED integrated machine
The domestic market of the company’s intelligent LED all-in-one machine is divided into three product series: intelligent enjoyment, intelligent truth and intelligent simplicity, and the foreign market is mainly Planar Ultrarare SL series.
(1) Zhixiang series
Based on the international brand PLANAR, we use the company’s existing Micro LED core technology in professional display and cinema display to create an intelligent, integrated and standardized high-quality display terminal, mainly for professional display scenes and private cinema scenes.
(2) Zhizhen series
Based on the brand of Liard, the products are based on the company’s Micro LED and TXP display integrated technology platform, providing a stable and efficient product experience, mainly for commercial and educational application scenarios, and providing integrated system products and solutions for conference rooms and classrooms.
(3) Zhi Jian series
Mainly based on the brand of the existing channel mode of the Group, the product display technology applies COB, SMD and other high cost-effective technologies, and at the same time, it is equipped with simple functions such as wireless screen projection and information release. The products mainly meet the improvement needs of LCD splicing and traditional LED engineering screens, and provide a simple and cost-effective overall solution for conventional information release and display. Nobel Prize quantum dot technology blessing, fully flip-chip COB package, ultra-narrow frame, widely used in smart office, smart education, command center, commercial display, home theater and other scenes.
(4)Planar UltraResL series
This series is mainly sold overseas, combining the best functions of similar products of Planar and fine pixel spacing technology, with highly integrated design, simplifying complexity, extremely thin screen body, extremely narrow bezel, ultra-high screen ratio, intelligence and ease of use, and the whole machine meets the EMC CLASS-A standard; This series of products provide two options: rolling floor bracket and wall-mounted one, which meet the mobility and permanent installation requirements of classrooms, conference halls, multi-function halls, lecture halls and other scenes.
1.4.3 Movie screen
In March, 2023, the LED movie screens with completely independent intellectual property rights successively passed the National Compulsory Product Certification (CCC) in China and the film technical quality inspection of the Central Propaganda Department. Coupled with the DCI certification previously obtained, Liard’s LED movie screen will fully open up the domestic and overseas cinema demand markets, leading LED movie screens to accelerate into the digital cinema.
The LED movie screen and image processing system independently developed by Liard, together with Dolby integrated media server, can provide high-quality audio-visual experience to the audience and comprehensively enhance the immersion of the movie. It is believed that with the blessing of LED movie screen, the new cinema will break the original single film projection mode, turn to diversified development and realize a brand-new operation mode.
Lifeng culture industrial park DCI panoramic sound theater
Movie screen features:
Overseas cinema market, at present, the company cooperates with LG to expand together; In the domestic cinema market, the company will set up a joint venture with leading enterprises in the film industry in 2024 to jointly develop.
1.5 creative display reflects the extraordinary plasticity of LED display products.
1.5.1 transparent screen
It is a kind of innovative transparent LED display screen, which does not affect the building space and lighting, successfully realizes the commercial display, builds a new retail, new experience and new format of smart city, and integrates smart business display into modern city. Widely used in large-scale glass curtain wall, glass plank road, large-scale commercial display and other scenes. It has the characteristics of customizable dimensions, 61-92% permeability, independent disassembly and maintenance of single light bar, flexibility and changeability, display according to architectural surface modeling, double-sided display and 3D display.
LED conformal screen LED grid screen LED high-definition transparent screen
1.5.2 Creative display screen
At present, such products of the company are customized products. According to customers’ needs, combined with their own experience and advantages in structure, machinery and LED display, the LED display system that customers are satisfied with is designed. For example, the LED display of the floor screen, ice waterfall and ice cube designed by the company for the opening and closing ceremonies of the Winter Olympics.
For example: JD.COM MALL indoor and outdoor giant screen: Every JD.COM MALL has its own unique architectural characteristics. The company builds an indoor and outdoor giant screen release system for JD.COM all over the country according to the facade form, which is organically combined with building materials to form a perfect integrated digital building external surface system. Visual information is transmitted through naked-eye 3D visual effects and AR augmented reality technology, which helps to create an immersive interactive space. D-PARK plays digital games, EX robots, space science and technology kitchens, and smart home life.
Kunming JD.COM MALL Intelligent Flying Screen Dongguan JD.COM Naked 3D Magic Box
For example, Nanjing East Road "The First Commercial Street of China": The company creatively centralized and controlled the buildings around Century Square, the stage lighting and projection of the square, realizing the overall linkage, creating a theme show, shaping a "pearl kaleidoscope, a city meeting room" and reshaping the "First Commercial Street of China" in Blossoms Shanghai with digital creative content.
1.6 application of led display solution
The company adopts the mode of "hardware+industry attributes+software+content+operation" to provide professional LED display solutions for industry customers, standard scenes and specific customers (such as the opening and closing ceremonies of the 2022 Winter Olympics).
1.6.1 Industry Customer Scheme
The company continues to expand the scope of customer services in the industry, including the military, education, energy, rail transit, airports, etc., and constantly realizes the standardization of solutions.
For example, smart medical solutions: Liard aims to improve the quality of medical services and improve the experience of seeing a doctor by integrating advanced technologies such as cutting-edge display technology, artificial intelligence and Internet of Things. Liard Smart Medical Solutions aims to provide patients with more accurate and efficient medical solutions, and help medical institutions improve their work efficiency and medical practice. Through the application of digital and intelligent technology, Liard smart medical scheme can realize real-time sharing and monitoring of medical information, promote communication and cooperation between doctors and patients, and thus improve the accuracy and efficiency of diagnosis and treatment. Through data analysis and intelligent algorithms, it provides decision support for medical teams, helps them better cope with complex medical challenges, and provides personalized medical services. Bring better and more convenient medical services to patients.
1.6.2 standard scenario scheme
The company continuously develops standard scene schemes, including conference room, XR virtual studio, VP, VR panoramic studio, combat command center, smart classroom, simulation training warehouse, etc. Due to the replicability of the scene, the scheme is continuously standardized.
For example, XR/VP virtual shooting solution: advanced LED display technology and software algorithm are adopted to realize the seamless integration of virtual and reality and provide revolutionary visual experience for many fields. The display products are characterized by light carbon fiber and thick aluminum plate structure, which ensures high strength and excellent compression resistance, and at the same time, the efficient heat dissipation design ensures the stability of the system. Liard XR/VP technology can achieve 360-degree immersion effect, which greatly enhances the sense of viewing and immersion. Whether it is replacing the green screen, creating virtual video or providing live immersion experience, it can bring a shocking visual feast.
1.6.3 Special customer scheme
In order to meet the needs of special customers, the company customized professional design and implementation service programs for them.
For example, the opening and closing ceremonies of the 2022 Beijing Winter Olympics and Paralympics: 14,000 square meters of LED display screen was invested to build the world’s largest three-dimensional LED stage, and the cutting-edge naked-eye 3D+AI visual motion capture+AR augmented reality+8K was used to present a wonderful scientific and technological aesthetics, which was a combination of installation art and digital art.
1.6.4 Service platform system
The "Integrated Service Platform of Pilot Wisdom" developed by the company and fully used is a comprehensive application management system, which integrates the functions of audio and video information release, equipment management and data analysis, and provides users with a one-stop solution. The platform can not only realize the rapid release of information and efficient management of equipment, but also help users better understand and optimize business processes through data analysis, thus improving work efficiency and business effect. In addition, LeadView has strong expansibility and flexibility, and can be customized and optimized according to users’ specific needs, which is widely used in enterprise exhibition halls, subway transportation, restaurant chains, commercial blocks, office buildings, exhibition halls, exhibitions and other application scenarios.
The system is also a comprehensive and real-time equipment monitoring and management tool. By managing the basic data of equipment ledger and operation and maintenance, it provides you with comprehensive control over the running status of LED screen, PLC power management, splicer, high score server and other equipment. The system can not only monitor the running state of the equipment in real time, but also form the historical data of the running state of the equipment through in-depth analysis of the collected data. These data will be used in AI algorithm to estimate the next failure probability of equipment. Our system will generate equipment health and maintenance suggestions based on these estimated data. So as to help you prevent possible equipment failures in advance and improve the safety and operating efficiency of the equipment.
2. Global market
2.1 Two major demand markets at home and abroad
The company started from the domestic market and gradually expanded the proportion of overseas markets.
2.2 Two major sales models of direct sales channels
The company started with the direct sales model, and started the channel sales model on a large scale in 2017 with the sinking of LED small-pitch products; At present, the domestic market adopts direct sales and channel sales modes to meet the needs of customers in vertical industries and to expand the mid-range and sinking markets; Overseas markets have higher requirements for product standardization, and basically adopt the channel sales model; In addition to direct selling and channel mode, leasing and e-commerce mode are adopted.
From 2022 to 2023, with the improvement of product standardization, the scale and proportion of channel sales have exceeded the direct sales model.
In 2024, according to the changes in the market environment, the company’s domestic market will start "direct channel integration".
2.3 Market Foundation-Direct Selling
Since its establishment, the company has taken direct sales as its main sales model and is very familiar with market control and customer demand. At present, there are 350 domestic direct selling teams, which are distributed in more than 20 vertical industries and more than 30 municipalities and provincial capitals.
Distribution of the top five industries in recent three years:
Judging from the data in the past three years, the industry has gradually dispersed, and the proportion of government agencies has decreased year by year.
2.4 Strong Support-Channels
2.4.1 Domestic channels-cash flow support
The development of domestic channel model not only expands the mid-range and sinking market on a large scale, but also supports the company’s operating cash flow.
(2) The gold medal plan is to form a comprehensive solution through Jinlixiang display products and peripheral audio supporting equipment, so as to enhance the service ability of partners’ pre-sales solutions and better and more professionally serve different customer groups.
(3) Revenue in 2016 was higher than orders, because before 2016, the company had sporadic agents, and some orders from the previous year were carried forward to the next year; In 2016, the channel team was formally established and the channel partners were expanded on a large scale.
2.4.2 International channels-double teams
The company has established a European and American market team centered on "Pindar of America" and an Asian, African and Latin American market team centered on "Liard of Hong Kong". In November 2015, the company acquired Pindar in the United States, and since then, it has launched a large-scale promotion of overseas LED display; In 2022, the performance-to-price ratio of short-distance TV was improved, and the company set up a team in Asia, Africa and Latin America to cover the market in a planned and targeted manner. In 2023, the Asian, African and Latin American markets continued to grow by 27%, and the proportion increased to 27%.
3. Outreach business
3.1 AI and Spatial Computing
The company’s AI and spatial computing business is derived from the original virtual reality business. This business is based on the world’s leading optical motion capture technology, developing, producing and selling moving capture products, providing AI and spatial computing application solutions and services, incubating digital human assets, and developing large-scale applications of LED display products in the meta-universe.
3.1.1 Live catching products
(1)OptiTrack motion capture system
The company’s OptiTrack motion capture system is a key common technology in the fields of film and television production, AI and spatial computing, industry simulation, digital human and robot training, etc. It has the advantages of high precision and low delay, and has provided low-level technical drive and service for users in many fields. At present, the company has developed a new bone settlement device, which greatly improves the tracking accuracy of the OptiTrack motion capture system, and can still obtain stable, accurate and reliable tracking data even under the condition of serious occlusion. In 2023, three new products, Primex120, Primex120W and Slimx120, were launched, which will cover the higher-end application market.
Motive 3.1 Beta of NP Company was officially released in 2023, which can realize the dynamic data collection of quadrupeds, clothes and other software, and meet more scene applications. Motive is the official software of OptiTrack, which can transmit data to character bones in real time, help users accurately track marks, quickly process bone data, perfectly capture real people/things, and realize real-time driving of real people and virtual characters. Motive version 3.1 has been optimized and updated again on the basis of the original performance, which maximizes the camera compatibility, upgrades many industry-leading functions such as IMU sensor fusion and continuous calibration, and adds quadruped/software motion capture and camera reset functions, providing better services for all walks of life with technological innovation.
(2) the unmarked point catches the product.
The unmarked point dynamic capture product is a set of low-cost and high-performance dynamic capture products, which can collect, record and transmit real-time data of limb movements through the camera under more natural conditions without wearing, making the operation of dynamic capture technology easier. This product will be widely used in online live broadcast, online virtual seating, security monitoring, space-time interaction, human-scene interaction and other scenes in cultural tourism scenes, with a lower cost, showing more diverse interactive effects.
(3) Light-inertial hybrid dynamic capture system
Optical inertial hybrid moving capture system is a low-cost, high-precision real-time positioning system that combines optical and inertial technologies, and has excellent anti-occlusion ability and multi-target tracking function. It has shown extensive application potential in many fields, such as film and television entertainment, medical treatment, sports, industrial simulation, robots, etc., such as virtual production, rehabilitation training, posture analysis, robot training, etc., which has greatly promoted the technological innovation and efficiency improvement of related industries. With its user-friendly design and strong technical support, the system provides users with an efficient and convenient operation experience and leads the industry to develop in a more accurate and practical direction.
"LYDIA" Professional Ability Action Model
On December 20, 2023, the virtual moving point officially released the "LYDIA" action model. This model is a professional model independently developed by virtual moving point based on the accumulation of motion data for many years. It has the core abilities of "cognition, perception, prediction and generation" of spatial motion data, and is the first to explore a new AIGC model in the field of spatial computing and motion generation on a global scale. LYDIA focuses on the generation and understanding of action data in spatial computing, which generates three-dimensional data of actions, and can be compatible with the current mainstream digital content creation platforms to achieve relatively accurate character action generation. LYDIA can be used not only in the field of film and television, but also in various industry scenes such as games, animation, e-commerce, education, sports, literature and art, etc.
3.1.3 "Moving Capture+Display" XR Virtual Shooting Application Scheme
Virtual shooting is a film and video production tool based on AI and spatial computing technology, which replaces real shooting with computer-generated virtual scenes, characters and objects. Virtual photography ensures the visualization and industrialization of the whole creation. From the initial script, art setting, digital assets, rehearsal, to rendering, scene setting and LED screen photography, virtual photography has opened up the process of all-data work. On the one hand, virtual shooting greatly reduces the cost of scenery setting and travel, on the other hand, it can save a lot of time for shooting and obviously reduce the communication cost. At the same time, it expands the generation of more creativity-the most important point in image production is how to attract the audience to the story. Now, with the gradual popularization of virtual shooting technology, writers and directors can create stories more freely, and present shocking and intuitive visual effects on the LED big screen in real time. Through the film and television preview, the script can be visualized, the data assets can be migrated, and the post-production can be advanced, so that all members of the crew can grasp the work priorities in advance and improve the overall production efficiency.
As we all know, the traditional green screen technology is not intuitive to the creators or the cast members. The illusionist can only shine according to his imagination, which challenges the authenticity of the later synthesis. For the film crew, if all depends on imagination, there will be some deviation in understanding, which will affect the final filming effect. The workflow of virtual shooting is to put the later stage in front, and the film crew can see the visual effect on the spot. The new generation of LED virtual shooting studio is synchronously connected with the real-time background picture and the motion position of the camera to simulate the spatial change of the real scene, which solves the problem that the main object can not correctly reflect the reflection of the environment when the green screen technology is used.
Another advantage of virtual shooting is controllability. For example, if we follow the previous real-life shooting process, force majeure factors such as weather restrict the shooting process and effect to some extent. The virtual shooting with LED large screen is more controllable, and the visual images presented on the screen can be used repeatedly, and the changes of weather, environment and other factors can be switched at will according to the requirements of the film crew.
Dehuo Technology, a shareholding company of the company, has a mature virtual shooting system, which is effectively integrated with the company’s moving capture products and LED display. By displaying virtual scenes on the LED screen, photographers and actors can see the scenes and effects in the virtual environment in real time when shooting, thus achieving fast, accurate and low-cost production effects. Motion capture technology can accurately capture the actors’ movements and expressions, and transmit them to the computer for processing, so that the virtual characters can act naturally and realistically. The company’s "XR Virtual Shooting Scheme" can greatly improve the production efficiency and quality, and bring better visual effects and user experience.
(1) Art performance and entertainment industry: Creating realistic digital virtual characters for performances, concerts, dance performances and other activities can not only improve the visual effect of performances, but also create digital records and virtual concerts.
(2) Film and television production: The virtual shooting system can greatly reduce the shooting cost and time, and can flexibly adjust the shooting scene to meet different needs; Moving capture products can capture the actions of actors, animals or other physical objects and apply them to the virtual scene in real time, thus improving the realism of the virtual scene.
(3) Virtual characters and short video shooting: developing higher-level virtual actors and more efficient and intelligent motion capture systems and virtual shooting tools will make short video production faster, more accurate and more convenient, and at the same time improve the quality and efficiency of video.
(4) Game development: Game production needs high-quality virtual scenes and characters. The virtual shooting system of Dehuo Technology and the company’s motion capture technology can help game developers make more realistic and immersive games.
(5) Advertising production and brand promotion: advertisements and brand promotion videos with more visual impact can be produced to improve brand awareness and consumer experience.
(6) Application in industrial and educational fields: Expand the application in automobile, fire protection, oil exploration and other industrial fields, form a VR virtual simulation platform, and provide users with multi-level solutions from visual simulation to virtual interaction, such as the verification system combining man-machine efficacy with reality, which can help car companies shorten design time, improve product quality and reduce development costs.
3.2 Cultural Travel Night Tour
Cultural tourism night tour refers to the design and implementation of landscape lighting, cultural tourism and scenic spot promotion based on technologies and products such as sound, photoelectricity, etc., to provide services for the city government and tourist attractions. And expand the large-scale application of LED display products in this field.
3.2.1 Smart light pole products
The smart light pole products independently developed by the company, including smart street lamps, smart towers, multifunctional integrated poles, multifunctional smart light poles, etc., use road poles as carriers to integrate and mount a variety of devices, integrate basic resources such as poles, communication, power supply, etc., and use advanced ICT information and communication technology to realize () collection, transmission, release and remote intelligent monitoring, control and management, thus providing smart lighting, control and management for urban operation.
3.2.2 Integration of design and construction of cultural tours and night tours
The night tour section of Wenlv has the ability to integrate planning, design, construction and operation, and has Grade A professional qualifications for large-scale event services such as audio and video integration, engineering design, stage sound/lighting/machinery/audio and video design and production. The company has entered this business field since 2014. Up to now, it has undertaken hundreds of large-scale urban projects and is transforming from urban landscape lighting to cultural tourism.
Third, the core competitiveness analysis
With LED display as the core, the company highlights the strong brand value of "Liard" with the world-leading technology, rich products and excellent service.
1. Technology leading edge
Since its listing, the company has carried out the innovation-driven development strategy throughout the development of the enterprise, adhering to the research and development strategy of "eating in the bowl-watching in the pot-planting in the ground" and maintaining the leading position in technology and products. From 1998, we independently developed the first full-color LED display product in China, and in 2010, we originally named the LED small spacing technology, and in 2020, we took the lead in promoting Micro LED technology and products. Liard has always broken through the application boundary with innovative technology, and three technological innovations have promoted the rapid and high-quality development of the global LED display industry.
2. Advantages of market layout
The brand concept of "Liard, let the world see" not only hopes that global users can get excellent visual experience through the products and services we provide, but also embodies Liard’s responsibility and responsibility as a leader in the industry.
The company has perfected the layout of the global market by means of direct selling and channel superposition, which can meet the needs of high-end, mid-end and sinking markets respectively. At the same time, it has also laid out the sales models of leasing and e-commerce, and continuously improved the service model.
3. Advantages of industry consolidation
Since the mass production of Micro LED technology, the company began to lay out the industrial chain, and has integrated a sound industrial chain of chip-packaging-application with Fucai Holdings. At the same time, through equity investment and technical cooperation, improve the necessary auxiliary products in the industrial chain, such as power supply, video processor, control system, Asic driver chip and so on.
4. Show the advantages of application expansion
The company has been committed to expanding the application market of LED display products. Over the years, through the layout of cultural tours and night tours, the application of display products in urban cultural tours and landscape lighting markets has been promoted; Secondly, the AI and spatial computing industries should be laid out earlier, and XR virtual shooting should be expanded by combining the moving capture technology with LED display, so as to drive the application of LED display in new scientific and technological fields; At the same time, through strong market sensitivity, many potential markets such as LED conference integrated machine, cinema and high-end home theater will be laid out in advance.
Fourth, the main business analysis
1. Overview
2022-2024 Strategy Implementation of "Technology Leading Industrial Layout and Expanding Application"
In 2023, the company’s forecast of domestic demand was optimistic, the growth of domestic channel business failed to meet expectations, the orders of channel business fell by more than 30%, and the company realized operating income of 7.615 billion yuan, which fell by 6.61% compared with the same period of last year. The net profit attributable to the parent company was 285.7108 million yuan, an increase of 1.60% over the same period of last year.
1.1 Business data analysis
1.1.1 Analysis of operating income
In 2023, the revenue of all business segments declined compared with the same period of last year, and the intelligent display segment was mainly due to the decline of domestic channel business by more than 25%; Orders for the night tour segment of Wenlv increased by 20% year-on-year, but it was confirmed that the revenue cycle was lengthened, and the revenue declined slightly compared with the previous year. The net profit of this business segment once again suffered a large loss; Due to the decrease in domestic orders, the AI and space computing sectors decreased by 9.74% compared with the same period of last year. The revenue proportion of the three business segments has been relatively stable.
During the reporting period, the company’s comprehensive gross profit margin increased compared with the same period of last year, reaching a new high in nearly three years; The gross profit margin of intelligent display business increased slightly overall when the channel gross profit margin decreased greatly; The gross profit margin of the cultural travel night tour and AI and spatial computing business segments decreased slightly.
1.1.2 Analysis of the impact of net profit
From 2021 to 2023, the company’s net profit was affected by many special impairments and expenses, and the net interest rate fluctuated greatly. In 2021, the main factors affecting net profit were goodwill impairment loss, interest on convertible bonds and individual impairment of accounts receivable. After adding back all the influencing factors, the net interest rate was 9.29%. In 2022, the main factors affecting net profit are goodwill impairment loss, intangible assets impairment loss, convertible bond interest and equity payment fee. After adding all the influencing factors back, the net interest rate is 7.41%. In 2023, the main factors affecting the net profit are the impairment loss of intangible assets, interest on convertible bonds and individual impairment of accounts receivable. After adding back all the influencing factors, the net interest rate is 6.35%.
1.1.3 Intelligent display scale/proportion/gross profit margin is stable.
From 2016 to 2022, the company won the LED for seven consecutive years, showing that the global market share is the first, and the global market share is close to 15%.
Due to the decline in the performance of domestic channels in 2023, the intelligent display shows that the operating income in 2023 decreased compared with 2021-2022, slightly higher than the revenue level in 2019; However, with the strategic guidance of the company’s return to its main business, the proportion of smart display revenue has stabilized at 85%; In 2023, the price of upstream raw materials rose many times, and the company stabilized the gross profit margin, which was higher than that in 2022.
1.1.4 The proportion of overseas smart display continues to increase.
In 2023, domestic business was affected by the decline of channels, and domestic income and proportion declined compared with the same period of last year, which was basically the same as that in 2019; The overseas business was affected by the decline in business in North America, and the revenue was basically the same as that in the same period of last year, and the proportion continued to increase to 38.98%. In the next few years, the growth rate of overseas business will accelerate, and the company will continue to increase the expansion of overseas markets.
From 2020 to 2022, the gross profit margin of domestic intelligent display will be adjusted reasonably with the increase of channel business scale; In 2023, the gross profit margin of channels dropped by 10 percentage points, resulting in a decline in the gross profit margin of domestic intelligent display.
1.1.5 Analysis of domestic direct selling channels
In 2023, the replacement cycle of display products in the engineering market (where direct selling and channel engineers are located) was lengthened, and the growth in the first and second quarters was in line with expectations. In the third and fourth quarters, the peak season was not prosperous, especially in the fourth quarter.
In 2023, the demand of channel market (where channel wholesalers are located) declined. In the second quarter, many packaging enterprises began to raise prices, showing a trend of de-intermediation.
During the reporting period, the operating income of the mid-to-high-end market of direct selling services increased slightly compared with the same period of last year, while the demand of the mid-end and sinking market of channel services declined, and the operating income decreased significantly compared with the same period of last year, with the lowest revenue proportion in the past three years.
During the reporting period, in the face of repeated price increases in the upstream supply chain, the channel business was greatly affected, and the gross profit margin decreased by 10 percentage points compared with the same period of last year, mainly due to the decline of Liard brand channel products; The gross profit margin of direct selling business is less affected, and the gross profit margin has also increased by 2 percentage points, even exceeding 2021.
1.1.6 Analysis of overseas market structure
In Europe, the company operates under the brand of Pindar Company. Facing the middle and high-end customer groups, the revenue and gross profit margin have not changed much in the past three years. During the reporting period, the revenue increased by 9%. In Europe, the gross profit margin is lower than other overseas regions because of the factory revenue.
In North America, the company operates under the brand of Pindar Company, facing the middle and high-end customer groups; In 2022, the market demand recovered rapidly, and the accumulated orders landed, and the income increased by 28.03% compared with the same period of last year. Due to the price of raw materials, the gross profit margin decreased by 3.68 percentage points. In 2023, due to the large increase base in 2022, the income decreased by 15.76% compared with the same period of last year, and North America entered a normal growth track, with an increase of 8% compared with 2021, and the gross profit margin recovered, even higher than that in 2021.
In Asia, Africa and Latin America, multi-brand operation focuses on mid-range and sinking market customers. With the outbreak of market demand in 2021, the company continued to increase investment in products, teams and markets in this region. In 2023, the revenue accounted for 27% of the total overseas smart display revenue, and the revenue increased by more than 30% for two consecutive years, and the gross profit margin continued to increase, making it the region with the highest level of overseas gross profit margin.
1.2. The strategic product Micro LED was promoted smoothly.
1.2.1 Review of investment for three years
(2)POB: In the application of high-order MIP, there are two technical routes. First, the MIP is directly bonded to the module substrate, and then the surface is encapsulated by molding, dispensing, film pasting, etc., to form a COB product form; Secondly, MIP is regarded as an LED chip, which is die-bonded to the carrier, packaged and cut to form Nin1 lamp beads, and then the Nin1 lamp beads are attached to the module substrate through SMT process, that is, the common Nin1 Micro LED display product form is formed.
(3) Quantum Dot COB: A quantum dot COB product developed by the company in cooperation with Saphlux uses a quantum dot red LED chip excited by a blue LED instead of an ordinary AlGaInP red LED. Since all RGB LED are made of gallium nitride (GaN), the quantum dot LED display screen has obvious advantages in color performance and light type consistency. When observing from a large angle to a small angle, the traditional display screen shows a color transition from green to red, while the quantum dot LED direct display screen shows a more uniform white picture without obvious color cast effect. In addition, the quantum dot COB adopts nano-porous quantum dot color conversion technology, which effectively improves the conversion efficiency of quantum dots and avoids blue light leakage; At the same time, based on the characteristics of quantum dots, the corresponding protection technology is developed, which greatly improves the reliability of quantum dot COLED products.
1.2.2 See the future of Micro from the experience of expanding small spacing.
1.3 AI and spatial computing to a higher level
Since the acquisition of NP in 2017, the company has increased its AI and spatial computing business segments; In order to expand the domestic market and expand the business scope, the domestic team operation was started in 2018, and a virtual moving point company was established in China to operate independently in 2020.
1.3.1 Stable performance
Since its establishment, the AI and spatial computing sectors have maintained a relatively stable revenue scale and gross profit margin.
In particular, NP Company, as the main performance contributor of this sector, has always maintained a gross profit margin of over 70% and a net interest rate of over 30%.
1.3.2 NP company technology upgrading
(1) New product release
Primex120, Primex120W and Slimx120 are officially released. The resolution of the three new products is 12 million pixels, the highest frame rate is 1000FPS, and the longest recognition distance is 91m.
(2) Software technology upgrading
① Motive is updated to version 3.1, which can realize the dynamic data acquisition of quadrupeds, clothes and other software, and meet more scene applications;
② Release the plug-in "Stretch Sense Gloves Plugin" combined with Stretch Sense dynamic catching gloves, which can introduce SS glove data into motive in real time and complete simultaneous data acquisition of body and fingers;
③ Continuously upgrade OptiTrack’s plug-in based on UE5 to meet customers’ various needs for the combination of OP and UE5.
(3) Representative projects
① 35North Studios Studio uses OptiTrack motion capture system and Planar LED screen to complete the virtual production system, which can help filmmakers and related enterprises to complete film planning, shooting and editing. The on-site OptiTrack system consists of 12 SlimX13 cameras, which is simple and easy to use. With CinePuck, it can be seamlessly integrated into the film production workflow.
② Middendorp and his team used OptiTrack to track and control the UAV, and converted the dancer’s movements into commands to control the UAV in real time, thus completing the creative stage interaction between the dancer and the UAV.
1.3.3 The influence of virtual moving points is enhanced.
In 2023, the virtual moving point determined the development strategy of "one body and three cores": spatial computing as the strategic subject, AI big model, hardware equipment and spatial data as the three cores.
(1) release "LYDIA" professional ability action model.
On December 20th, Liard-Virtual Moving Point held the release day of AI results, and officially released the "LYDIA" action model. This model is a professional ability model independently developed by Liard-Virtual Moving Point based on the accumulation of motion data for many years. It has the core abilities of "cognition, perception, prediction and generation" of spatial motion data, and is the first to explore a new AIGC model in the field of spatial computing and motion generation on a global scale. LYDIA focuses on the generation and understanding of action data in spatial computing, which generates three-dimensional data of actions, and can be compatible with the current mainstream digital content creation platforms to achieve relatively accurate character action generation. LYDIA can be used not only in the field of film and television, but also in various industry scenes such as games, animation, e-commerce, education, sports, literature and art, etc.
(2) Industry influence
Release the first virtual reality industry white paper and redefine the business model of motion capture;
As an A-level editorial unit, he participated in writing the White Paper on the Investigation and Research of Metauniverse LED Display Application to guide the development of Metauniverse virtual reality industry in the AI era;
It has successively reached strategic cooperation with head enterprises such as JD.COM Science and Technology and iSoftStone Group, and has become a founding member of Huawei Cloud’s "Meta Studio AIGC Content Innovation Plan", making joint efforts in film and television, education, industry, games, content innovation and other fields to promote the AI big model and spatial computing applications to accelerate their landing;
Virtual and (), Shangyicheng, Unity China, (), () and other head enterprises jointly initiated and established the "Beijing Meta-Cosmic Industry Innovation Center" to promote the development of Meta-Cosmic Industry.
(3) Honor acquisition
With the production and service capabilities of digital people, it won the "2023-Excellent Digital People Service Brand" award;
With its leading technology research and product innovation, it stands out among many enterprises and is officially certified by Beijing Economic and Information Bureau as "specialized and innovative" SMEs in Beijing and "innovative" SMEs in Beijing;
With the world’s leading product technology and market influence, it has been ranked among the top 50 VRs in China for three consecutive years and ranked fourth in 2023;
China Virtual Reality Technology and Innovation Platform (CVRVT) and Caijing new media released the "2023 Most Investable List of the Universe". Virtual Moving Point and parent company Liard Group were both on the list, and were awarded as "Industry Innovation Enterprise of the Year" and "Industry Leading Enterprise of the Year" respectively;
With multi-field empowerment, it stood out from 220 candidate enterprises and won the title of "innovation leader of AIGC empowerment industry in 2023";
With the help of space computing technology, it was selected as the TOP 50 enterprise of "Qiyuan Plan-New Products, New Technologies and New Scenes of Metauniverse";
With the continuous exploration in the meta-universe industry, it has been on the list for two consecutive years and was shortlisted as TOP100； of Hurun China Meta-universe Potential Enterprise;
With the "Verification Solution of Ergonomics Combined with Reality in Vehicle General Arrangement", it stood out from 149 enterprises from all over the country and won the outstanding achievement award in innovative technology and products.
(4) Representative projects in 2023
① The virtual moving point OptiTrack technology helped the first "digital man" ignition ceremony in the history of Olympic Games and Asian Games, and successfully completed the world’s first "digital real ignition".
(2) Virtual moving point uses spatial computing technology to help the crew of "Feng Shen" successfully complete shooting through professional positioning capture+face capture +CG animation.
③ Virtual moving point restores the real person’s demeanor, body posture and action details in a 1:1 way by scanning and moving capture, and provides professional moving capture technical service support for Three-body.
④ Virtual moving point uses spatial computing technology to help Moscow Action bring a visual feast to the audience through motion capture algorithm!
⑤ Multi-modal cross-scale biomedical imaging system in Peking University. This project is to build a CAVE 3D simulation LED display system of multi-modal cross-scale biomedical imaging system in Huairou Science City, Beijing, to display the scientific research achievements of multi-modal cross-scale biomedical imaging system. This project is the largest single construction project in the history of Peking University, as a major national science and technology infrastructure in the 13th Five-Year Plan. The system includes 328 arc small-pitch LED display screen, active 3D stereo imaging system and motion capture system.
⑥ "2023 China Science Fiction Conference" kicked off in Beijing Shougang Convention and Exhibition Center. The conference closely followed the theme of "Scientific Dreams Create the Future", and for the first time, AR holographic digital people were enabled to host the conference. The virtual moving point provided digital people with full-process motion capture technology services, which ensured the interactive communication of digital hosts throughout the whole process and helped the wonderful presentation of the opening ceremony of the science fiction conference!
(5) Construction progress of digital platform
In 2023, the virtual moving point participated in the construction of the "Ecological Common Technology Platform of 3D Cloud Rendering Engine". The platform is a key project of Beijing Science and Technology Commission led by Beijing Virtual Moving Point Technology Co., Ltd., Huawei Cloud Computing Technology Co., Ltd. and Huanyu Trust (Beijing) Technology Co., Ltd., and jointly undertaken by Ai () Co., Ltd. and Beijing Xuanguang Technology Co., Ltd.
The goal of the platform is to get rid of the shackles of software and move towards efficient production based on the cloud. At the same time, it will solve the problem of digital asset piracy identification through copyright services, which will help Shijingshan District to build a digital asset industrial cluster and establish a full link service from 3D digital asset production, 3D digital asset confirmation to 3D digital asset circulation. At the same time, it helps domestic 3D cloud rendering engines to cross the ecological gap between assets and applications, and take the lead in the technical route of cloud rendering engines.
Virtual moving point is responsible for the research and development and construction of standardized tools for real-time driving of motion capture data, cloud platform of motion capture tools, offline service station of 3D cloud rendering engine, collection and arrangement of motion capture data assets, etc. At present, the completion degree of all tasks is above 80%.
The development of common platform is an important part of the company’s digital asset platform construction, which lays a solid foundation for the subsequent digital asset confirmation, commercial application and asset transaction.
1.4 Display service income
Since 2022, through the nationwide service network and standardized service process, the company has accurately focused on the needs of customers in various industries, and built a platform based on the Internet of Things technology to realize the health management system for LED screens, PLC power supplies, signal systems and other equipment, established a national spare parts warehouse, regional maintenance workstations, and opened a service WeChat official account, which has improved service efficiency and quality and increased service income.
1.5 Product standardization continued to advance.
The overall goal of the company in terms of products is to make Liard a company with standardized product types. During the reporting period, the company merged the product department and the technical support department to set up the product solution department, focusing on improving the standardization level, and the staff was reduced by 40%.
The company’s series of standardized design and implementation include:
1.5.1 standardization of led display unit
The LED display unit is usually composed of various types of LED lamps, driving chips, control boards, power supplies and other key devices, which are combined into N kinds of configurations. These configurations are divided into three kinds of configurations: standard configuration, optional configuration and customized configuration through a certain period of shipment analysis. The standard configuration is commonly used in raw materials storage, and standard products are produced in large quantities, thus achieving the purpose of saving costs and shortening delivery time. Through the analysis of shipment in a certain period, the unsalable product series and unsalable configurations are screened out and the shipment is closed.
In 2023, the variety and model of display units have been reduced by more than 50%.
1.5.2 Standardization of structural fittings
The standardized LED display screen structure adopts a modular structural frame, which is made of self-developed open-die steel and assembled by super-strong reinforcement screws. The high flatness can achieve good seamless splicing effect, and the construction site is free from cutting and welding, easy to install and disassemble, and the standard parts are processed, which is convenient for storage and transportation. Standardization of structural fittings will reduce the structural cost by 15%.
1.5.3 Standardization of construction drawings
The company actively reformed the drawing process, changed the drawing work from traditional methods to efficient digital automation process, and combined with digital work and AI technology, standardized projects were automatically drawn. This transformation not only improves the production efficiency and accuracy of standardized engineering drawings, but also reduces human errors. Engineers can devote more energy to key and customized projects, thus improving work efficiency and effectively controlling costs.
1.5.4 Standardization of power distribution cabinets
The company is committed to optimizing the cost of the power distribution cabinet used for LED screens, and promoting its standardization and intelligent transformation. By adopting more cost-effective materials and simplifying the design, the manufacturing cost of the distribution cabinet is reduced. At the same time, the implementation of standardized production ensures that each power distribution cabinet meets industry standards and safety specifications, which improves the compatibility and reliability of products. Intelligent power distribution cabinet will support remote monitoring and fault diagnosis functions, and prevent potential problems in advance through early warning system. Intelligent power distribution cabinet can not only improve product performance and user experience, but also win advantages for the company in the fierce market competition.
1.6 management process optimization, production automation, digital management.
Digitalization and informatization are changing the company’s management culture and management concept. Automated and intelligent production process management is playing an increasingly important role in reducing production costs. During the reporting period, the company constantly combed and optimized the management processes of each module of the company. Mainly reflected in:
1.6.1 R&D process optimization
The goal of R&D process optimization is to "improve work performance, strengthen cooperation, clarify communication channels, reduce contradictions and conflicts, and reduce costs". The company adopts digital methods to ensure business continuity, continuously optimize business system and digital platform, continuously support business development, promote various changes in organizations and talents in an orderly manner, and enhance organizational capacity and efficiency.
The main process optimization includes:
(1) Strengthen the control of technical review.
By coordinating production, quality, technology, engineering, after-sales and other departments, the review items of each department are investigated and summarized, the review stages and problem handling requirements are defined, the technical review control system is revised, the review efficiency of each stage is effectively enhanced, and the effectiveness of each stage is linked.
(2) Material control
Clear product development, material verification standards after mass production, material selection, import and other processes, and ensure that R&D, procurement, quality, production, technology and other departments synchronize material selection and import information at all stages through the information system; Effectively improve the communication efficiency of various departments and avoid the risk of material selection and introduction.
(3) Optimizing design change control
Optimize the overall process of design change, connect with the material control process in the application process, make sure to import the material control before the design change is formed, improve the process of importing the design change into the factory, introduce the quantity of finished products and semi-finished products in stock and the processing method of raw materials in the process of confirming the information of the design change process, effectively promote the exchange of information between R&D and the factory, update the design change process, and make the process approval more optimized and convenient.
(4) Rebuilding the new product introduction process
Organize R&D, production, technology and quality to revise the trial-production system of new products, and build an electronic process for R&D, production, technology and quality departments to transfer and review all information in the trial-production process through a digital platform, which greatly improves the implementation efficiency of EVTDVTPVT at all stages.
(5)PLM upgrade
Upgrade PLM system, standardize product design process, improve design standardization level, and optimize the integration function with CAD, OA, SAP and BI systems to open up business flow and data flow, including business process construction and standard system construction.
(6) Reconstruct the R&D assessment system
The R&D performance appraisal scheme is based on project management, which closely links the performance of R&D personnel with the project objectives, ensures that the objectives of the R&D team are consistent with the overall objectives of the company, and encourages team members to focus on the successful completion of the project. Specifically reflected in:
Project-based assessment: By combining performance assessment with specific project objectives, the performance of R&D personnel can be evaluated more accurately. Identify outstanding employees in the project and increase necessary support or training;
Performance evaluation indicators of R&D personnel: including the completion of annual work objectives and annual project R&D plan, focusing on the completion of work on time, quality and quantity to ensure that R&D work is not only completed, but also meets established quality standards;
Technology rating and project undertaking: employees can undertake R&D projects independently according to their own technology rating, encourage employees to participate in projects according to their own abilities and interests, and also provide them with opportunities to show their technical capabilities;
Performance management mechanism: through the project system, the performance of employees in the assessment is managed in real time, and the daily work is closely combined with the project performance to form a mechanism of survival of the fittest, which improves the overall efficiency and effect of the team and also provides employees with clear work direction and goals; Career development: according to the annual project score and the annual work target performance score, the promotion or demotion of employees is decided, which encourages employees to improve their work performance and provides a clear career development path.
Generally speaking, this project-based performance appraisal method is helpful to improve the transparency and sense of responsibility of R&D teams and promote fair competition among team members. Through clear performance appraisal standards and evaluation system, employees can better understand their work performance, and thus have more motivation to improve their work quality and efficiency.
In the past three years, the company has invested more and more in R&D expenses, and the proportion of R&D expenses revenue has also increased year by year.
1.6.2 Show the optimization of project implementation process.
The purpose of optimizing the project implementation process is to check the project workload, control the subcontractor’s construction quality, optimize the project quality standard and supporting management system through the training of project managers and subcontractors, improve the technical ability and management level of the project implementation end as a whole, and thus reduce the implementation cost. Through process optimization and digital upgrading, the labor cost is reduced by about 50%, and the construction cost will be reduced by about 30%.
(1) Re-optimize the process and reduce risk points.
From project review, site investigation, drawing design, engineering quantity verification, cancellation of site procurement, project budget, subcontractor determination, project supervision to project acceptance, we will reorganize, and combine product standardization, business informationization and digitalization to adjust unreasonable details in time through data analysis, so as to prevent and control risks and improve project operation efficiency.
(2) Improve the product quality supervision mechanism.
Sorting out engineering projects, taking the construction process of the project site as an important node, focusing on supervising the quality of factory delivery, putting the QA work results of the factory under supervision in an all-round way, and improving the quality of factory delivery;
In the process of project implementation, the problems found should be handled and reported. At present, it is necessary to improve the feedback of relevant information while strengthening the project quality management of subcontractors, strengthen the feedback of problem information in the process of project implementation, deal with it in time, and reduce the energy consumption of sales;
Promote problem solving and regular summary analysis, promote problem improvement, and promote the work quality of relevant departments of the company.
(3) Improve the supervision and feedback mechanism for subcontractors.
As the last mile for products to be presented to users, implement the process supervision of the project, find and feedback problems in time, and avoid hidden dangers caused by negligence in project management;
Establish a collaborative process between the project supervision department and the purchasing department, and provide timely feedback and timely disposal for problems found in the construction;
Strictly implement the project supervision system, implement the actual function of OA Project Schedule, and establish the whole process information construction and data application.
(4) Establish a risk prevention and control supervision mechanism.
Reduce sales complaints, intervene and deal with problems in engineering process management in time, and make the implementation of engineering process fully controllable; All engineering processes are marked and archived in OA information system, which can be traced back, traced back and continuously improved at any time.
1.6.3 Changsha Industrial Park has improved the degree of intelligent automation.
Changsha Industrial Park has 20 fully automatic SMT electronic processing production lines with a monthly production capacity of 6 billion display devices. High-end intelligent manufacturing equipment of industrial robots with advanced technology and superior performance in the world has been introduced. Components are welded by ultra-high-speed mounter, and the accuracy can reach 0.02mm, which is the top level in the industry. Intelligent management of the whole production process is realized through industrial Internet, SAP system, MES system and OA system, and a benchmarking workshop for intelligent manufacturing is built.
On the basis of completing the production of LED intelligent display module, it has also been upgraded, from product packaging, product suite to adaptive power supply, and so on. Liard Power Supply was established on September 17th, 2021, and successfully put into production in June, 2022. It has a modern and intelligent production line with a new domestic leading level, with an automation rate of 95% and a comprehensive monthly production capacity of 400,000 units. Both the order processing capacity and the comprehensive matching capacity of automation equipment are at the leading level in the industry. With the improvement of production scale and the research and development of new products, the conventional power supply of intelligent display plate has basically achieved self-sufficiency. In 2023, the mass production power supply will be increased from 6 models in the original channel to more than 20 power supplies at present. In terms of new products, in 2023, the research and development of key projects such as three-in-one, Mini BoxII and VF series have been completed, and small batch trial production has been successfully realized. At present, there are new projects such as MGII, TXII and PFC channel funds under way, which will also bring new highlights.
1.7 Management efficiency improvement
In order to continuously improve the company’s management efficiency, reduce management costs and cultivate a clear cultural atmosphere, during the reporting period, the company adopted the following management optimization measures:
1.7.1 cash efficiency analysis
During the reporting period, the company attached great importance to the efficiency of capital use, which was mainly reflected in the following aspects:
(1) Increase the collection efforts.
During the reporting period, contract assets decreased by 24%.
(2) Inventory optimization
Compared with the same period of last year, the book balance of raw materials decreased by 9%, accounting for 2%; Inventory goods decreased by 22%, accounting for 5%; The contract performance cost increased by 3%, accounting for 3% higher than the ratio.
(3) Bank loans decreased.
Short-term loans decreased by 200 million yuan in 2022 and 200 million yuan in 2023 compared with 2022.
Long-term loans decreased by 230 million yuan in 2022 and 100 million yuan in 2023 compared with 2022. If the long-term loans of Lijing were deducted from the consolidated statements of that year, they decreased by 170 million yuan in 2023.
During the reporting period, bank loans (excluding Lijing) decreased by nearly 400 million yuan.
(4) Monetary funds
In the past three years, monetary funds were relatively stable at the end of the year.
(5) Operating cash flow
The company’s net operating cash flow declined a lot from 2021 to 2022 due to environmental reasons, and basically recovered to the level of 2019 in 2023.
1.7.2 lighting plate reorganization
In 2023, in order to further implement the goal of group management and control according to business segments, integrate the resources of companies in the lighting segment, and open up the business process of the lighting segment, a sub-group management model of the lighting segment was established with Liard Smart Technology as the management core and LTC project process model as the management tool. The goal is that through restructuring, the lighting sector has formed a unified combat effectiveness. While giving full play to their existing advantages, each company has reduced management costs and improved work efficiency, laying a foundation for the further development of the lighting sector. The scale of personnel began to prepare for restructuring in 2022, and by the end of 2023, it was reduced by 36%; In 2024, with the further implementation of the restructuring plan, the scale of personnel will be further reduced.
Specific measures include:
Set up a group management and control platform: including business ports and functional management ports. All business lines are managed vertically and centrally, and resources are integrated to improve the use efficiency, forming a "set-sub" management structure and retaining the "set-sub" existence form.
Constructing LTC project process operation mode: adhering to the enterprise operation management idea from clue to cash, taking marketing and delivery as the main lines, running through the whole process of enterprise operation, creating a closed-loop operation system from clue, opportunity, bidding, contract, delivery, implementation to maintenance. Through the implementation of LTC’s project management process, the cooperative operation of business, solution and project delivery can be realized; Customer-centric, quickly perceive customer needs; Improve the project management ability from clue to collection; Systematize the whole process of project operation, break the functional boundary, and coordinate and cooperate within the organization.
Unified management of functional system: finance, supervision, business management, legal affairs and manpower are under the unified control of Liard Group, and the lighting sub-group is specifically implemented. Grading of assessment: the company issued assessment indicators respectively against Akiko Group and its companies, and implemented double assessment of group assessment and company assessment. After the overall assessment of the lighting group and the completion of the assessment task, the companies will no longer be assessed; When the lighting sub-group fails to complete the assessment task, it will start the assessment of each subsidiary; Sales ports remain in the original subsidiary areas, and sales related personnel undertake the sales tasks and objectives of each company.
1.7.3 Anti-corruption promotion
In 2023, in order to improve the efficiency of display panel project implementation, reduce the implementation cost and improve the construction quality, the company sorted out the project implementation control procedures and reset the management and supervision procedures of the whole project implementation process.
In the process of sorting out the process, the corruption caused by management loopholes was discovered, and it was found that some people took advantage of their positions, ate cards from internal personnel of the company, and inflated the workload of the display screen.
The treatment measures taken are as follows:
First, the internal audit department of the company, aiming at the employees involved in corruption, conducts special audits on key positions and key projects, and the company dismisses the above-mentioned offenders and tries its best to recover the company’s losses;
Second, the company’s legal department takes legal measures to recover the company’s losses for employees who are serious and do not return the embezzled money;
Thirdly, in order to prevent the risk of corruption, the enterprise management department of the company has formulated management systems such as Liard Optoelectronic Group’s Integrity Management System, Liard Group’s Convention on Fighting Corruption and Advocating Integrity, and Liard Group’s Convention on Fighting Corruption and Advocating Integrity for Suppliers, and carried out activities of "stressing fresh air and fostering healthy atmosphere" within the enterprise to create a fair and just working environment for employees and suppliers.
第四，企管部和监督部共同对业务流程重新梳理，将产品部与技术支持部合并为产品方案部，将预算人员及项目经理的权限进行了分解，由客户服务部、产品方案部分担预算数据源的部分职能，由监督部承担项目实施过程监督及结果评价的职能，使项目实施过程中的事前预算、事中监督及管理、事后评价职责均落实到不同部门，相互制约，降低风险。
1.7.4 公司获得的奖励
五、公司未来发展的展望
公司进入到四三战略周期，随着 Micro LED技术日渐成熟，成本大幅下降，已经从高端应用下沉至常规小间距需求领域，性价比急速提升，市场规模迅速放大。
1．发展战略
2022-2024年，公司的发展战略定位为“技术引领 产业布局 扩大应用”。
1.1 技术引领：即为迎接Micro LED时代大规模应用市场开启，公司将继续加大Micro LED技术投入，采用自主研发、合作研发、股权投资等多种方式，不断突破技术难题，引领全球显示行业技术创新发展；
1.2 产业布局：为不断提高公司核心竞争力，不断降低生产成本，公司将在产业链上下游相关环节，通过投资、合资、合作等多种方式展开产业布局。
1.3 扩大应用：扩大LED显示产品的应用领域，包括但不限于LED会议一体机、户外小间距、重沉浸显示方案、VR体验、元宇宙等应用。
2．战略目标
2.1 巩固并加强LED显示技术和产品全球领先地位；
2.2 扩大Micro LED市场规模及LED显示应用范围；
2.3 提升全球LED显示市占率。
3．2024年工作计划
3.1 国内外市场规划
3.1.1 国内市场：直渠融合，发展地区经济
公司自 2017年成立渠道团队以来，直销与渠道采用不同的管理方式、考核制度、团队配置。2024年根据国内市场发展需要，将采取直销和渠道融合，以省为单位，发展地区经济。
分析如下：
（1）市场原因：2023年，国内渠道市场出现明显的去中间化的趋势。
渠道产品（显示单元），从屏厂出货，经过区域总代、分销商、当地集成商，售给最终用户。随着市场竞争加剧，毛利率降低，中间商利润被挤压，集成商倾向于屏厂拿货，渠道市场趋向于扁平化。
（2）需求原因：工程市场，越来越多的客户需要的不只是显示屏方案，需求提升为视听系统集成方案。
（3）公司动向：2023年金立翔品牌的渠道销售开始实施“金牌计划”，即以显示产品+周边音频配套设备，组成综合解决方案，提升合作伙伴售前方案的服务能力，更好更专业的服务不同客户群体；同时，近两年渠道合作伙伴中工程商所贡献的业绩比例大幅提升；渠道单纯出货显示单元将陆续向提供解决方案转变，完全可以借鉴直销29年的经验。
鉴于以上原因，公司 2024年将率先突破行业运营方式，执行直渠融合市场战略，从中央集权控制的直销渠道双市场运营，向以省级分公司为考核单位，下放市场拓展权力，促进区域业务高速发展。
3.1.2 欧美新市场开发
自2023年下半年开始，欧美出现中端及下沉市场需求大幅增长的势头，公司借鉴2021年亚非拉市场拓展经验，开发适合市场的新产品，并组建新的欧洲和北美团队，加入平达公司和欧洲利亚德，与原有团队结合，满足欧美高、中、低不同的客户需求。
但欧美市场的客户与亚非拉市场客户对LED显示产品认知有所不同，公司会根据市场拓展陆续加大投入力度。
3.2 扩展Micro LED产品，迎接高增长
3.21. 新产品推出
Micro LED经过3年的研发投入和市场推广，目前不同间距产品采用封装结构带来不同的成本优势，故而，2024年公司采取不同封装结构来迎接市场需求的高增长。
规划如下：
（1）P1.0以下Micro LED 显示产品，采用MIP封装结构，同时推进高阶MIP；
（2）P1.25和P0.9Micro LED 显示产品，通过自产和OEM方式采用COB封装结构，2024推出COB产品和量子点COB产品；
（3）研发POB方向，将MIP与COB有效结合。
3.2.2 营收/产能翻倍
2024年，Micro LED推出更多性价比更优的产品品种，从小间距推广经验来看，2024年将比2023年大幅增长，预计新签订单9-11亿元，营收超过8亿元，产能扩产至4000KK/月。
3.3 显示板块业务整合
从多公司、多品牌、多营销渠道独立运作的事业部制，到直渠融合、业务部门整合的集-分管理模式的转变，已经成为必然，提高效率，降低成本，是整合的目的。
3.3.1产品方案部整合效益体现
在过去追求定制化的事情，效率较高；在标准化目标的引导下，重新设置产品部门，具体如下：
（1）加强集团产品部力量，产品部划分为国内产品方案部和国际产品运营部；
（2）国内产品部以规划产品标准化和方案标准化为目的，将产品设计和技术支持合并，从显示单元的标准化，推进到行业/场景方案标准化、结构标准化、施工图纸标准化和配电标准化；
（2）配合地区经济发展战略，加强各省级分公司的销售能力，增加地区技术支持人员，自上而下及自下而上，收集市场需求，反馈市场需求，传递标准产品，支持项目方案个性化；
（3）国际产品运营部，以挖掘海外市场需求，将国内的标准化产品与海外市场相结合。
3.3.2 显示项目实施流程优化完成
直渠融合逐步落地后，工程项目将大幅增加，优化后的项目实施流程将匹配更多的显示项目，从数据分析中提高运营效率、及时解决问题，提升公司质量管理指标。
3.3.3 After the integration of the Group’s service department, the income continued to increase.
With the integration of direct channels, the service team of the display panel will be centrally managed, adopting a unified incentive and assessment method and a unified management and operation system, covering all display market customers, and with the help of the service operation and maintenance system, the service income level will be further improved.
3.4 lighting plate integration is completed.
According to the vertical integration scheme of lighting plate drawn up in 2023, the business system operates in LTC mode, and the functional system operates in vertical management mode of the group, which reduces management costs and improves project operation efficiency.
3.5 Continuous online information system to speed up the digitalization process.
The company has successfully implemented a number of information systems including SAP, OA.BI, SRM, PLM, CRM and HR, which have been deeply integrated with the company’s business processes, achieving centralized management and efficient use of data. Especially in 2023, the Group further upgraded and optimized PLM and SRM systems, and improved the efficiency of cost accounting and production preparation through the application of super BOM and configuration BOM.
In 2024, the company will devote all its efforts to the construction and online work of "intelligent manufacturing" system, and plan to implement MES, WMS, OMS, APS and CAPP systems, and build a data center system to enhance the capabilities in manufacturing, warehousing management and quality control, and to tap the data value and optimize business processes.
4.2023 Work Plan Implementation
4.1 Industrial chain layout
Continue to use joint venture, investment, cooperation, etc. to carry out R&D expansion and vertical integration in the upstream fields such as LED chips, substrates, packaging, drivers, etc., and jointly develop machines in related process links with equipment manufacturers to realize integration and automation, aiming at reducing the production cost of LED chips and further reducing the cost of terminal display products; In addition, the company cooperates with glass processing enterprises to develop glass substrates for LED display, and it is expected to replace part of fr4 substrates with glass substrates in the future to realize diversified product forms.
Implementation: Lijing Micro Industrial Base expanded to 1600KK/ month, and new products such as high-grade MIP and quantum dot COB were developed smoothly.
4.2 Micro LED continues to reduce costs.
Since the introduction of black diamond, the application of Micro LED has expanded to 1.8mm spacing, which is comparable to the cost of gold wire lamp with small spacing. In 2023, the company will continue to reduce costs, increase technology research and development, improve the maturity of MIP process, improve the yield, strive to be competitive with the market price of small-spacing products, and expand the market space of Micro LED.
Implementation: The cost of Micro LED products was lowered by 30%-40%. In 2023, the new order was 630 million yuan, and the revenue was over 400 million yuan.
4.3 expand the scope of use of Micro LED.
Micro LED beads (Black Diamond and Nin1) are applied to LED display standards such as direct selling varieties, channel varieties and LED conference integrated machines, which not only expands the application scope, but also improves the performance index of LED display products.
Implementation: Micro LED direct selling varieties and LED conference integrated machine are used in LED display standards one after another.
4.4 Increase R&D investment in special needs industries, and strive to double revenue.
The company’s holding subsidiary for special needs industries, after two years of development of special needs products, the products have been applied in the market and received favorable comments. In 2023, it will continue to increase investment in research and development, expand the marketing of new products, and strive to double its revenue.
Implementation: China Hi-Tech, a subsidiary of the company, is a holding subsidiary operating in special needs industries, and the revenue of special needs industries increased by 32% year-on-year.
4.5 Domestic Channel "Gold Medal Plan"
In 2023, domestic channels will continue to operate under the dual brands of "Liard" and "Jin Lixiang". At the same time, "Jin Lixiang" brand launched the "Gold Medal Plan" and strived to build an "audio-visual integration" platform.
Jinlixiang brand will work around brand integration, form a comprehensive solution through display products and peripheral audio supporting equipment, enhance the service ability of partners’ pre-sales solutions, and better and more professionally serve different customer groups; And launch the "gold medal recruitment plan" to further sink the market, do a good job in full coverage of the region, industry and major customers, and further seize market share.
In 2023, strive to increase orders by 30% compared with the same period of last year.
Implementation: The "Gold Medal Plan" was implemented, and the channel orders dropped by 30% in 2023.
4.6 Further explore the Asian, African and Latin American markets.
After comprehensive planning from product to market in 2022, the Asian, African and Latin American markets have achieved initial results, and the revenue has increased by 40% on the premise of continuous improvement of gross profit margin. In 2023, the company will further explore the Asian, African and Latin American markets and strive to maintain a revenue growth of more than 40%.
Implementation: Asia, Africa and Latin America achieved revenue growth of over 40%.
4.7 Integrate AI and spatial computing business within the Group
The rise of the meta-universe has made more industries join the "meta-universe concept". In the past two years, many of its companies have integrated the concept of "meta-universe" and formed a number of "meta-universe solutions" one after another. In 2023, the company will integrate domestic AI and spatial computing-related businesses into "Virtual Moving Point", concentrate on providing AI and spatial computing-related products and technical support services to subsidiaries within the group, and expand the application scale in XR virtual shooting field, improve the revenue scale of virtual moving point, and strive to increase revenue by more than 50% year-on-year.
Implementation: Due to the fact that the performance of the participating subsidiaries did not meet expectations, the business integration of the virtual moving point was not implemented. At the same time, due to the unstable domestic environment, the performance of the virtual moving point declined compared with the same period of last year. However, in 2023, the virtual moving point determined the development strategy of "one body, three cores" and successfully developed the action model.
4.8 improve the net interest rate of the cultural travel night tour plate.
In 2023, the policy environment and market environment of the cultural tourism night tour industry will be relatively improved, and the landscape lighting projects will be upgraded to cultural tourism projects one after another, and the gross profit margin and net interest rate will be improved.
Implementation: In 2023, the demand for night tours of cultural tourism increased significantly, but the government funding problem affected the project’s landing, and the revenue decreased by 5.88% compared with the same period of last year, with a large loss.
4.9 Continue to strengthen the overall management of the Group.
(1) In 2022, the equity integration of five lighting companies was completed, and Smart Technology Group was established. In 2023, the organizational structure and management integration of Smart Technology Group will be one of the important tasks of group management.
(2) Virtual moving point from equity integration to business combing is also one of the important tasks of the overall management of the Group;
(3) Continue to sort out the internal control and process of the Group, and improve the division of subsidiary grades and managerial ranks, performance appraisal and salary system. Implementation: The implementation plan of the lighting business segment has been determined and will be implemented one after another in 2024; Virtual moving point equity integration was not implemented because the performance of the participating companies did not meet expectations; Group internal control management and process combing continue to follow up.