Appotronics' net profit jumps 63% in 1 H 2023 and the automotive optics business enters the fast lane.

SHENZHEN, China: Recently, Appotronics (688007.SH) released its 2023 semi-annual report in English, which reports a substantial increase in net profit attributable to the parent company and net profit attributable to the parent company after deducting non-recurring profit or loss. As disclosed in the financial report, in 1H2023, the Company's revenue amounted to RMB1.073 billion; net profit attributable to the parent company amounted to RMB74.9146 million, representing an increase of 62.98% year-on-year; net profit attributable to the parent company after deducting non-recurring profit or loss amounted to RMB34.2288 million, representing an increase of 55.55% year-on-year; the overall gross profit margin increased by 7.39 percentage points to 37.7% and the net cash flow generated from operating activities increased by RMB193 million.

As for finance, net profit and other performance indicators grew sharply, which, according to the financial report, mainly benefited from the year-on-year increase of 32.75% and 18.43% in the cinema projection service income and revenue from the light source and optical machine business during the reporting period. During the reporting period, the Company optimized its supply chain management and scored a significant year-on-year increase in net cash flow from operating activities. While for the business, our cinema services saw a robust recovery with the accelerated uptick in the movie market. As a business in growth, our automotive optics business proceeded at a fast pace and has made breakthroughs in terms of cooperation, potential customer development, supply chain system improvement and patent application.

Automotive optics business enters the fast lane

During the reporting period, Appotronics reached cooperation with SERES, BYD and BAIC BJEV, and actively participated in large exhibitions at home and abroad. For example, we provided core components for BMW's concept car with four-window fusion display technology debuted at CES, United States at the beginning of the year; we independently exhibited at the Shanghai Auto Show and launched the world's first automotive-grade laser headlight supporting RGB display. In terms of potential customer development, as indicated in the financial report, in addition to the five secured projects, the Company is approaching several automotive customers on laser headlights, AR-HUD and other products, which will lay a foundation for the subsequent cooperation with...