Sales of main products increased by 45%, and Shenzhen sales revenue reached 958 million yuan

Affected by the epidemic, remote work has become a habit for "office workers" in recent years. Under this circumstance, the sales of consumer electronics market, especially remote electronic office products, have increased rapidly, driving the rapid development of related markets. Recently, camera seller Oni Electronics released its 2021 performance, with the main product business increasing by more than 45%, but the performance declined.

Aoni Electronics' revenue was 958 million, but its net profit dropped by more than 35%

Recently, Shenzhen Aoni Electronics released its 2021 annual report and first quarter results for 2022. Overall, although Aoni Electronics' overall business development is relatively stable, the two performance reports show that the company's revenue and net profit have declined.

The main products of Aoni Electronics belong to the consumer electronics industry. According to public information, Aoni Electronics is mainly engaged in the research and development, production and sales of consumer Internet of Things smart audio-visual terminal products. Its main products are smart cameras, smart car cameras, wireless audio products and other smart audio-visual terminals.

Financial report data shows that in 2021, Aoni Electronics' revenue was 958 million yuan, a year-on-year decrease of 11.66%. The net profit attributable to shareholders of the listed company was 124 million yuan, a significant decrease of 35.44% from the previous year. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 114 million yuan, a year-on-year decrease of 39.76%.

In fact, the financial report data of Aoni Electronics in the first half of 2021 was still in an upward period. But the business data in the third and fourth quarters began to decline to varying degrees. However, in 2021, the growth rate of the company's main product camera business still maintained an adjusted growth of more than 45%, and the products of its own brands AUSDOM and Mixcder were also hot-selling on cross-border e-commerce platforms such as Amazon and AliExpress.

Compared with the slight decline in performance in 2021, Oni's performance in the first quarter of 2022 declined more significantly.

Data shows that in the first quarter of 2021, Aoni Electronics' revenue was 135 million yuan, a year-on-year decrease of 44.6%. The net profit attributable to shareholders of the listed company was 12.8839 million yuan, a year-on-year decrease of 72.9%.

While Oni Electronics' performance was somewhat surprising, the sharp increase in revenue from some of its products attracted the attention of the industry.

Brand influence increased, and Aoni's main products increased by 45%

In the industry, Aoni is also known as the supplier of Zebao, a cross-border big seller. However, as Aoni continues to strengthen its own business and product R&D and innovation capabilities, the company's own influence is gradually expanding, shedding the label of "big seller supplier".

Although the performance of Aoni Electronics in 2021 was not satisfactory, the company's main product business remained at a stable level. Financial report data showed that in 2021, the revenue of smart car camera products, one of Aoni Electronics' main products, reached 272 million yuan, a year-on-year increase of 45.49%, accounting for 28.45% of its revenue. The revenue of another major product, smart cameras, was 567 million yuan, accounting for 59.24% of operating income, but it was a year-on-year decrease of 25% compared with the previous year.

In this regard, Aoni Electronics stated in its financial report that due to the decline in market demand in areas such as remote office and remote conferencing in 2021, its sales revenue of smart camera products fell by 25.12%. The year-on-year increase in sales revenue of smart car camera products was mainly due to the company's increased investment in research and development, expansion of market sales, and introduction of high-quality customers.

Since its establishment in 2005, Aoni Electronics has seized the golden development period of PC computers, starting with PC/TV external cameras. Through R&D investment and quality innovation, it has continuously launched highly cost-effective Aoni brand products, increasing its market share and brand influence. Its product sales have now spread to many countries and regions including Europe, America, and Japan.

However, affected by the overall cross-border e-commerce environment last year, the profits of some big sellers declined, and the revenue and profits of Aoni Electronics were also affected. In addition, changes in demand for product lines are also one of the factors affecting Aoni.

Performance decline is affected by many factors, and Aoni increases investment in product research and development

In terms of product lines, PC/TV cameras, one of the company's main products, are mainly used in remote scenarios such as remote conferencing/online education. As overseas epidemic control is gradually relaxed, market demand in the remote field has declined, and sales of Aoni's smart camera products have fallen by 25.12%. In terms of revenue and profit in 2021, the decline in net profit is about three times that of receivables, which is related to the decline in the proportion of camera revenue, which has lowered Aoni Electronics' overall gross profit margin to a certain extent.

In addition to Oni's internal product lines, the decline in its revenue and profits is also related to overall market factors: under the influence of rising international shipping costs and power restrictions, order costs have increased and delivery cycles have been extended; shortages and price increases in the upstream chip industry have increased the cost pressure of raw materials, thus affecting the company's profitability.

Compared with 2021, this year's international environment is still not optimistic. Aoni Electronics' overseas revenue accounts for a high proportion. Repeated epidemics, rising inflation, the Russia-Ukraine war, and intensified Sino-US competition are all important risk factors facing Aoni's overseas market development.

Aoni Electronics said it will start from many aspects to adapt to the changes in the external environment. For example, it will formulate relevant plans for the epidemic and adjust the strategic layout; establish a closer cooperative relationship with the upstream and downstream industrial chains; reserve key raw materials to ensure the safety of supply; expand the market, optimize production, and enhance the competitiveness of products in the market.

In terms of improving market competitiveness, private brands and R&D capabilities are very important. At present, although the sales of Aoni's private brands are growing steadily, the revenue share is still small, and the business model is "ODM customization as the main business, and private brand operation as the auxiliary business". On the basis of this model, expanding the ODM business and strengthening the private brand have become important plans for Aoni to continuously expand its advantages in the field of consumer electronics.

The consumer electronics industry is characterized by frequent technological upgrades and rapid product iterations, and has high requirements for the company's product research and development, design, manufacturing and other aspects. For this reason, Aoni continues to increase its investment in research and development. As of December 31, 2021, Aoni has 212 R&D personnel, accounting for 17.42% of the company's total number of employees, and has obtained 132 patents. With the addition of technology and experience, it can continuously develop new products according to changes in market demand.

In terms of innovation and research and development, Aoni has won many awards: relying on the application integration of artificial intelligence and Internet of Things technology, it won the "Innovation Award" in the sub-list of the "Evergreen Award A·IoT Hard Technology Sustainable Development" issued by "Caixin"; the "2021 Innovation Breakthrough Award" issued by the Shenzhen Electronics Industry Association, and the "2021 AI Tianma Leading Enterprise" issued by the Shenzhen Artificial Intelligence Industry Association.

With the continuous development of informatization, the combination of consumer electronics and the Internet of Things will become the mainstream in the future. Aoni will continue to deepen its presence in line with market demand and continue to expand its market share. On the other hand, all categories of products are moving towards intelligence, and focusing on brand building and R&D capabilities is the long-term strategy for sellers.

O'Neal

Financial Report

Cross-border