Another track is hot! Sales have exceeded 2 billion in half a year

In the past two years, with the prevalence of the stay-at-home economy, home projector products have become very popular.

Data shows that in the first half of 2022, the total shipments of the domestic projection market reached 2.347 million, a year-on-year increase of 3.4% . The shipments of the home projection market in the first half of the year were 1.935 million units, a year-on-year increase of 15.4%. In 2022 , the sales volume of the domestic projector market is expected to exceed 5.24 million units, a year-on-year increase of 11.5%. It is expected that the annual compound growth rate of the projector market will exceed 18% by 2026.

In addition to the continued popularity in the domestic market, demand for home projector products in foreign markets has also seen explosive growth , especially in developed countries.  

With the promising market prospects for home projectors , domestic projector brands are penetrating into overseas markets with the strength of their products and are experiencing rapid development.

XGIMI Technology's performance is improving rapidly

The leading projector company Xgimi Technology Co., Ltd. achieved revenue of 2.036 billion yuan in the first half of this year, an increase of 20.72% over the same period last year. The net profit attributable to shareholders of the listed company was 269 million yuan, an increase of 39.78% year-on-year .

By region, in the first half of this year , Xgimi Technology Co., Ltd.'s domestic revenue was 1.77 billion yuan, an increase of 14.65% over the same period last year ; its overseas revenue was 251 million yuan, an increase of 89.93% over the same period last year .

Founded in 2013 and headquartered in Chengdu, China, Xgimi Technology focuses on the research and development, production and sales of smart projector products, and also provides projector accessories.

Its products are sold both online and offline. Overseas, they are mainly sold through online platforms such as Amazon, AliExpress and its own website. They are sold to markets such as Japan, Europe and the United States . Currently, they have covered overseas markets in more than 100 countries and regions.

In 2021, XGIMI Technology achieved operating income of 4.046 billion yuan, a year-on-year increase of 43.06%; net profit attributable to the parent company's owners was 489 million yuan, an increase of 81.79% over the same period last year . The company's total assets were 5.121 billion yuan, an increase of 106.49% from the beginning of the reporting period.

As a leading brand in the projector market , XGIMI Technology has been increasing its investment in product research and development. In the first half of this year, XGIMI Technology invested 195 million yuan in research and development, a year-on-year increase of 73.27 %. The proportion of research and development expenses to revenue increased from 6.66% in the first half of 2021 to 9.56%, and the number of R&D personnel increased from 668 at the end of 2021 to 722 .

The continuous growth in R&D investment truly reflects Xgimi’s scientific and innovative background.

In terms of products, Xgimi Technology released several new products this year , including the new projector Xgimi h5 , the new laser TV A3 Pro , and the three-in-one product of projection + ceiling light + speaker Xgimi Magic L1 .

Among them, the Xgimi Magic Lamp has received widespread attention in the industry .

It is understood that this is a product that integrates the three functions of smart ceiling lamp, smart speaker and smart projector. Its first generation product was launched in Japan and was well received. This time, the "Ximi Magic Lamp" is the third generation of the same series of products .

XGIMI continues to exert its strength in product research and development , and constantly pursues perfection in product design . It has won 31 international awards including the world's four major craft design awards, including Red Dot, IF, CES, etc. In the first half of this year, XGIMI Technology has obtained 30 new authorized invention patents , and has obtained 142 invention patents in total.

XGIMI's overseas sales soared, but its stock price faced a sharp drop

At present, Xgimi Technology is accelerating its expansion in overseas markets and actively building overseas channels . Many of Xgimi Technology's products continue to sell well on the Amazon platform.

According to Amazon 's sampling data tracking data , Xgimi's sales on Amazon overseas soared 174% in 2021.

Tex, VP of Xgimi's overseas business department , said that Xgimi's sales on Amazon have tripled compared to 2019.

However, while Xgimi Technology's performance is booming, it is facing the problem of shrinking stock prices.

In March last year , XGIMI Technology was listed on the Science and Technology Innovation Board with an issue price of 133.73 yuan per share. By June 2021, XGIMI Technology's share price reached a historical peak of 629.13 yuan per share.

Since then, the stock price of Xgimi Technology has been on a downward trend. This year, the stock price of Xgimi Technology even dropped to 219 yuan per share , a drop of more than 50% in less than a year .

As the stock price continued to fall, Xgimi Technology was abandoned by its shareholders.

According to the semi-annual report of Xgimi Technology , seven of the top ten circulating shareholders of Xgimi Technology are reducing their holdings, and the reduction is very large!

At the same time, Xgimi Technology is also facing chip problems.

At present, "chip shortage" has always been the biggest risk factor for XGIMI Technology. Since mainstream consumer-grade projection equipment all use DLP projection technology, its core patents are all in the hands of an American company, especially the core component DMD chip. In the future, if there is a shortage of core components and they cannot be supplied, it will definitely have a certain impact on the company's operations .

Home projectors are in great demand in emerging markets

However, there are currently great development opportunities in the global projector market.

According to Euromonitor's forecast, combined with the current development of the home projector industry , the overseas home projector market is expected to reach about 9 million units by 2024. Sellers who want to deploy projector products can turn their attention to emerging markets.

Compared with European and American countries , Chinese brands currently have more development opportunities in the Southeast Asian market .

In recent years, Southeast Asia's e-commerce market has developed rapidly and demand is strong.

Southeast Asia’s e-commerce sales are expected to reach $90 billion in 2022, up $15 billion from last year , and by 2023, Southeast Asia’s e-commerce sales are expected to exceed $100 billion, roughly three times the $34 billion in 2019.

Currently, projector products are very popular in the Southeast Asian market.

During last year 's Double 12, projector products became the top 1 in GMV of a single category on the Lazada platform. This year's average monthly GMV increased by 150% compared to last year , setting a new record .

At the same time, South Korea's projector market is also developing rapidly.

According to statistics, the size of South Korea's home projector market was 70.6 billion won in 2019 , and since the pandemic, the size of South Korea's home projector market has reached 91.1 billion won in 2020.

In 2021 , the size of the Korean home projector market was approximately 97.1 billion won , a year-on-year increase of 6.6%. This year, the size of the home projector market is expected to exceed 100 billion won.

As Korean consumers' demand for projectors continues to increase, related companies are continuously launching new high-end home theater products based on market demand. South Korea's LG Electronics has even launched a new product "LG Cinebeam Laser 4K" with a factory price of 6.49 million won.

This is an opportunity for brands that want to launch high-end projector products.

In addition to developing high-end projector products, the current market trend for home projectors is to improve image quality, optimize functions and systems. In addition to home scenes, projectors are increasingly being used in outdoor camping. Therefore, the industry should also meet market demand and launch portable projector products.

In general, the global home projector market has great development potential. For the majority of sellers, it is possible to seize the current development opportunities.

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