光峰科技：2019年年度报告（英文版）.PDF

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1、Annual Report 2019 1 / 312 Stock Code: 688007 Stock Short Name: Appotronics Appotronics Corporation Limited Annual Report 2019 Annual Report 2019 2 / 312 Laser focus on our long-term success Dear Shareholders, The year of 2019 is a significant year for Appotronics. In July 2019, we became one of the

2、 first group of companies listed on the Shanghai Stock Exchanges Sci-Tech Innovation Board (“STAR Market”). The establishment of the STAR Market is a historic event of the Chinese capital market in the past 30 years, which will provide technical innovation driven companies, such as Appotronics, with

3、 a broader and high-quality development space through combining the advantages of technology and capital. The outbreak of Covid-19 throughout the world in 2020 has brought significant and irrevocable changes to global economy, peoples daily life and production activities. Facing the crisis, Appotron

4、ics believes that focusing on technical innovations, satisfying users basic demands and seeking stable and long-run profits will be the effective approach to address the long-term social changes brought by the outbreak, and create higher value for our investors. We released our first corporate socia

5、l responsibility report along with this annual report. We believe that, by making unremitting efforts in technical innovations, we will create value for the society, provide better services to the public, and effectively fulfill the social responsibility as a corporate. I. A review of our history: B

6、asic technical innovations bring out long-term and valuable returns Appotronics was incorporated in Shenzhen in 2006. Since its establishment, Appotronics has been focusing on the utilization of mature industry chain to create new laser display technology architecture, form our proprietary intellect

7、ual properties (“IP”), and master the design and manufacture technology of core devices. Through more than ten years unremitting efforts, Appotronics has taken the lead in the world in overcoming the shortcomings of traditional laser display technology, including high cost, low reliability and ineff

8、iciency, invented the creative laser phosphor display architecture, and by giving full play to this disruptive technical advantage, successfully overcome the barriers for commercialization, and realized the driving forces of both technical innovation and industrialization. According to the Research

9、Report on Chinese Laser Projector Market 2019 issued by AVC, blue laser + phosphor powder technology (ALPD is a kind of such technology), as the mainstream light source technology, occupies 98.6% of the market share. The laser display industry is growing rapidly, and plays an important role in the u

10、pgrading and transformation of the manufacturing industry. As a new low energy-consumption display technology, laser display technology is developing vigorously and will provide a good opportunity for our development. Annual Report 2019 3 / 312 Since its establishment, Appotronics has persevered in

11、investing in patents and other IP rights. As of December 31, 2019, we had obtained 908 patents in total throughout the world, and had another 756 patents pending. ALPD technology architecture patent of Appotronics, as a basic patent for the laser phosphor display route, has been quoted 416 times in

12、the world. As a Leader Level Member of the Laser Illuminated Projector Association (LIPA), Appotronics has participated in and led the preparation of the international laser display standard. In the process of industrialization in the past ten years, the advantages of ALPD technology have been gradu

13、ally reflected in high-end applications and other fields of display application. Our revenue from ALPD technology has grown rapidly from RMB 355 million in 2016 to nearly RMB 2 billion in 2019. Since the installation of the first ALPD laser cinema projection system in the world in 2014, we have been

14、 promoting laser cinema projection technology in the world through cooperation with China Film and Barco of Belgium. At present, we take the lead in the field of laser cinema projection in the world. The C5 laser cinema projector launched in 2019 is not only the first Chinese product of the like pas

15、sing DCI certification of the U.S. Digital Cinema Projection Association, but also the first laser cinema projector in the industry featuring non-manual operation, muteness, no machine room and low operating cost. Appotronics launched the first 100 inch laser TV in the world in cooperation with LG i

16、n 2013, and the first 100 inch laser TV with a selling price of less than RMB 10,000 in cooperation with Xiaomi in 2017. In 2019, Appotronics occupied more than 30% share of the laser TV market, ranking first in the industry, and launched a portable mini projector with a selling price of less than R

17、MB 3,000 in cooperation with Xiaomi. Through technical innovations, we enjoy unique opportunities as a pioneer. On the cinema projector market, we take the lead in offering “Laser as a service” in the industry. Under this “mode of laser light source lease”, the cinemas just need to pay rents accordi

18、ng to the length of use, without needing to purchase light sources, which will help the cinemas not only effectively reduce equipment purchase costs, labor costs and maintenance costs, but also improve their market competitiveness through the high luminance, wide color gamut, high contrast and good

19、picture quality and other technical advantages provided by the laser light source of Appotronics. On the other hand, it will provide Appotronics with a long-term and stable source of revenue, and promote the rapid application of ALPD technology. As of the date of this report, Appotronics has supplie

20、d more than 17,000 sets of ALPD laser projectors on the market, which have provided licensed services for more than 100 million hours in total. II. Prospects for 2020: Live in the present and focus on business and talent development The outbreak and spread of Covid-19 around the world in early 2020

21、has greatly affected the economy, especially the cinema and other sectors featuring gathering of crowds. We expect that our traditional laser projector business will be greatly affected for a long time, and other business will also be affected due to the global economic recession, so that the moment

22、um of our rapid development may be hindered. Facing such severe challenges, we have taken the following measures: Just as before, we will continue to adhere to the pioneering spirit, maintain the streamlined structure even after the listing of the Company, and uphold the virtue of Annual Report 2019

23、 4 / 312 saving and hard struggle, especially as the epidemic situation is still severe at present. We will enhance budget management, promptly make business analysis and adjust the relevant budgets according to the development of the epidemic situation, closely monitor the epidemic situation and ad

24、just the relevant business plans in a timely manner. During this process, we will enhance information disclosures, so that the investors will fully understand our new strategies and be able to make their judgments on our business plans. We will take a more prudent approach toward employment and focu

25、s on those talents who have pioneering spirit and will give support to the long-term development of our core business. Just as before, we will continue to use share incentive rather than cash as the main incentive approach. We wish this approach will help us recruit more outstanding talents and enha

26、nce their sense of being the master of their own affairs. The completion of the IPO in 2019 laid a foundation for us to focus on business and talent development. In 2019, our operating income was about RMB 1.979 billion, up 42.82% year on year; the total assets reached RMB 3.1 billion, up 49.48% ove

27、r the opening of the period; the net cash flows from operating activities were RMB 243 million, up 106.33% year on year; and the R&D expenses were RMB 202 million, up 48.60% year on year. III. Turn crisis into opportunities in the future The consumers always seek portable large screen display techno

28、logy, which will not be changed by the epidemic situation. Even if the cinemas suffer a setback temporarily, after the epidemic situation is eased or resolved, the cinemas will open again. However, the video conference, online education and other new types of operation inspired by the epidemic situa

29、tion enhance the consumers expectation for large-screen and eye-care displays. Our ALPD laser projector can effectively provide healthier large-screen and eye-care displays. The unexpected epidemic situation makes us be clearly aware of users expectation for our laser projection technology. Though t

30、he epidemic situation slows down the momentum of our rapid development in the past few years, we find that it provides us with a good opportunity to adjust resources. In the future, we will continue to listen to users demands, and focus on technology development and services that can bring about lon

31、g-term use value to users, rather than product development or marketing catering to short-term market demands. We believe this approach reflects the real customer-oriented concept, and we will bring about the best long-term returns for our investors through continuous technology development. Through

32、 accumulation of technologies in the past ten years, we have become a technology leader in the industry. In comparison with our peers, we are stronger in technology development and enjoy the head start advantage. Now we will extremely focus on the target, just like laser. Though it seems that light

33、is invisible and powerless, when plenty of light, such as laser, focuses on an object, it can shoot through hard steel. Therefore, we plan to do the following work: Continue to be committed to disruptive innovations. Appotronics has been committed to innovations in laser display technology, and crea

34、ted technology reserves and patent portfolios covering the whole technology chain of laser display from key system architecture, core devices to key algorithm. ALPD technology architecture has been upgraded to the fourth generation. The performance of each Annual Report 2019 5 / 312 generation of ar

35、chitecture platform has been improved in an all-round way as compared to the previous generation, thereby enabling us to maintain the technical and performance advantages in the industry. We will continuously increase investments in technology reserves geared to the needs of the future, and improve

36、and extend the core industry chain, so as to build a sound patent protection system. Focus on core devices. We will continuously strengthen our core device research, development and manufacturing capability, as we will be unable to greatly improve the performance of complete equipment without making

37、 breakthroughs in core devices and architectures. We will consolidate and increase our advantages in core devices, create the mode of open platform operation, and cooperate with the industrial circles to jointly make the laser display industry bigger and stronger, enrich the content of the industry,

38、 and expand the applications. Persevere in the development direction of “software + hardware + service”. In the future, we will be committed to providing better user experience and services to end users through in-depth hardware and software integration, based on “hard-core technology”, and suppleme

39、nted by upgrading of software system. We will create a stable and long-run mode of profit increase through continuous product services. Fully respect to the emphasis on IP on the overseas market. We will expand our overseas business and market through creating value for users. The year of 2020 start

40、s a new decade, witnesses great changes, and will go down in history. Appotronics will continue to uphold the pioneering spirit, to face the unknown challenges. Thanks to all shareholders and friends following Appotronics. Make unremitting efforts as God rewards those who work hard. Let time become

41、our friends. LI Yi Founder and Chairman of Appotronics April 28, 2020 Annual Report 2019 6 / 312 Important Note I. The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers of the Company hereby warrant that the information contained in this Annual Report is true,

42、accurate and complete and this Annual Report is free from any misrepresentation, misleading statement or material omission, and agree to assume joint and several liability for this Annual Report. II. Alert of significant risks During the reporting period, there has been no extremely significant risk

43、 that may have a material effect on the production and operation of the Company. The Company has described in detail the risks that may exist. Please refer to Section IV “Discussion and Analysis of Business Situations” for the relevant risks. III. All directors of the Company attended the meeting of

44、 the Board of Directors. IV. Pan-China Certified Public Accountants (Special General Partnership) issued a standard unqualified auditors report to the Company. V. BO Lianming, Principal of the Company, ZHAO Ruijin, Person in Charge of the Accounting Body and Chief Accountant WEI Yanlin hereby repres

45、ent that the financial statements contained in this Annual Report are true, accurate and complete. VI. Profit distribution proposal or proposal for capitalization of capital reserve approved by the Board of Directors during the reporting period The Companys profit distribution proposal for the year

46、of 2019 is as follows: On the basis of the total share capital of the Company as at the record date for the dividend distribution for the year of 2019, the Company will distribute a cash dividend of RMB 0.75 per 10 shares (inclusive of tax) to all shareholders. On the basis of 451,554,411 shares of

47、the Company as at December 31, 2019, RMB 33,866,580.83 of cash dividends is expected to be distributed in total (inclusive of tax). The Company will not capitalize the capital reserve or distribute bonus shares for the reporting period. The profit distribution proposal for the year of 2019 is subjec

48、t to approval by the general meeting of shareholders of the Company. VII. Is there any material event concerning any special arrangement of corporate governance? Applicable N/A VIII. Risk statement regarding forward-looking statements Applicable N/A The forward-looking statements contained herein re

49、garding the future plans, development strategies or other matters of the Company do not constitute any substantive covenant made by the Company to the investors. The investors should be aware of the risk of investment. IX. Is there any non-operational occupation of funds by the controlling sharehold

50、er or its affiliates? No X. Is there any external guarantee provided in contravention of the stipulated decision-making procedure? No XI. Other information Applicable N/A Annual Report 2019 7 / 312 Table of Contents Section I Definitions . 8 Section II Company Profile and Financial Highlights . 9 Se