Baidu continues to reduce its holdings, and the "category leader" earns less than 4 million in half a year

Recently, the listed sellers have issued their first half performance forecasts. Some people laughed and some cried. Yien noticed that a seller in a small category had an annual revenue of billions, but only made a few million in the first half of this year ...

The "projector leader" has a profit of only 3.67 million in the first half of the year

On the 27th , the "No. 1 projector company" Xgimi Technology Co., Ltd. (hereinafter referred to as "Xgimi Technology") issued its first-half financial forecast.

Judging from the forecast, Xgimi Technology is still experiencing the unfavorable situation of declining net profits.

According to preliminary calculations by the financial department , Xgimi Technology is expected to achieve a net profit attributable to the parent company's owners of RMB 3.6731 million in the first half of this year , a decrease of RMB 89.0543 million compared with the same period last year, a year-on-year decrease of 96.04% .

In addition, the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses is -15.2683 million yuan, which will be a decrease of 73.7865 million yuan compared with the same period last year, a year-on-year decrease of 126.09%.

Regarding the performance of net profit and non-net profit, Xgimi Technology stated that it was affected by the macroeconomic environment .

The second reason is that some old products are being destocked . Specifically, the destocking caused the sales gross profit margin to decline compared with the same period last year, which in turn caused the company's net profit to decline year-on-year and the net profit after deducting non-recurring gains and losses to be negative.

However, it also mentioned in the forecast that the company's overall revenue scale in the first half of this year remained basically the same year-on-year .

This is mainly attributed to the fact that the growth of overseas revenue has driven the continuous increase in the proportion of overseas revenue , which not only promoted the month-on-month improvement in sales gross profit margin in the second quarter, but also offset the impact of weak domestic demand on overall revenue.

Although the revenue may not change much, six months later, the net profit of this 3C category giant is less than 4 million, and the market can hardly hide its sighs.

According to the earlier quarterly financial report, in the first quarter of this year, Xgimi Technology's revenue was 825 million yuan, a decrease of 6.59 % from the first quarter of last year; net profit and non-net profit were even more dismal, with the former being 14.32 million yuan, a sharp drop of 72.57 % year-on-year ; the latter was only 8.11 million yuan, a sharp drop of 80.52 % year-on-year.

Calculating based on this quarter's data, it means that in the second quarter which is gradually entering the peak season, Xgimi Technology actually suffered a loss of nearly 10.65 million yuan, and its non-net profit was -23.38 million yuan .

Obviously, the profitability of the "No. 1 projector" is quite pessimistic. Perhaps because of this, Baidu, which had strongly supported it in the beginning, began to choose to "give up."

Baidu, the second largest shareholder, reduces its stake in Xgimi Technology

Earlier ( May 1 ) , Xgimi Technology issued an "Announcement on Shareholders' Plan to Reduce Shares".

The announcement pointed out that as of May 1, Xgimi Technology's shareholder Beijing Baidu Netcom Technology Co., Ltd. (hereinafter referred to as "Baidu Netcom") held 4,507,353 shares of the company, accounting for 6.44% of the total share capital; Beijing Baidu Biwei Enterprise Management Center (Limited Partnership) (hereinafter referred to as "Baidu Biwei") held 583,623 shares of the company, accounting for 0.83% of the total share capital.

*Note: Baidu Netcom is 99.5% owned by Robin Li .

Baidu Netcom and Baidu Biwei are companies controlled by the same actual controller, and the persons acting in concert hold a total of 5,090,976 shares of the company, accounting for 7.27% of the company's total share capital.

The reduction in holdings will be carried out through competitive bidding and block trading , with the two companies reducing their holdings of the company's shares by no more than 2.66% and 0.34% respectively.

After the reduction, Baidu still holds 4.27% of XGIMI Technology's shares. Judging from the shareholder structure at the end of the first quarter, if Baidu completes the 3% share reduction, Baidu will become the third largest shareholder from the second largest shareholder .

In fact, Baidu was already a major shareholder of XGIMI Technology before it entered the A-share market in 2017, and it can be said that it accompanied XGIMI Technology through all the obstacles on its way to the A-share market . However, three years after its listing, Baidu chose to significantly reduce its holdings .

On June 19, Xgimi Technology issued a "Reminder Announcement on Changes of More Than 1% in Equity of Shareholders Holding More Than 5% of Shares".

According to this information, it received a "Notice on Shareholder Reduction Progress" from Baidu Netcom and Baidu Biwei on June 18 , stating that after this equity change, the shares of the two companies decreased from 4.626 million shares to 3.87 million shares, and the proportion of the company's total share capital decreased from 6.61% to 5.53%, and the total shareholding ratio decreased by 1.08%.

This is not the first time Baidu has reduced its stake in Xgimi Technology.

According to the announcement, before the reduction in March 2022, the shares held by Baidu Netcom and Baidu Biwei together accounted for 11.61% of the total share capital of Xgimi Technology. Since then, they have reduced their holdings by a total of 4.28%.

The second share reduction occurred in June of the same year. At that time, Baidu Netcom and Baidu Biwei together held 8.61% of the shares and planned to reduce their holdings by 3%, but only reduced their holdings by 1.34%.

The third time Baidu Biwei reduced its holdings was in March last year, when it wanted to reduce its holdings by 0.83%, which was all of its shares in Xgimi Technology. In other words, Baidu Biwei wanted to completely withdraw its holdings, but judging from the results, it was not successful.

May this year was the fourth time Baidu reduced its holdings in Xgimi Technology .

To date, Baidu has successfully reduced its stake in Xgimi Technology by a total of 6.08% .

Baidu 's continued reduction of holdings may continue to impact Xgimi Technology . Although Xgimi Technology stated in the announcement that its reduction of holdings was related to its own funding needs , many people still believe that it was affected by the double decline in its revenue and profits. After all, who would "run away" if they have money?

The listing was only two years old

Multiple data have shown that Xgimi Technology's projection product shipments have ranked first in the Chinese market for many years in a row, and ranked second in the global market.

As a top seller in the category , Xgimi Technology has been thriving over the past few years by riding on the explosive growth of the projector market.

Because of this, XGIMI Technology was able to successfully go public in 2021. After going public, XGIMI Technology enjoyed two prosperous years . In 2021 and 2022, its revenue reached 4 billion yuan and 4.2 billion yuan respectively; its net profit reached 480 million yuan and 500 million yuan .

But the good times came to an abrupt end in 2023, with revenue falling 15.77% to less than 3.6 billion yuan; net profit was 121 million yuan, down 75.97%.

How can XGIMI Technology save its performance? As mentioned above, in the second quarter of this year, its revenue growth in overseas markets made up for the weak domestic market revenue. Based on this, XGIMI Technology may have regarded overseas markets as a new hope for growth.

In fact, it had planned to go overseas as early as 2016, and launched the smart projection product " Aladdin " for the Japanese market. In order to expand its overseas business, it also acquired Aladdin business-related assets in 2023 .

Last year, Xgimi Technology's overseas business revenue reached 913 million yuan, a year-on-year increase of 15.60%, and a gross profit margin of 44.63%, far exceeding the growth rate (-23.07%) and gross profit margin (26.66%) of its domestic business.

In terms of business share, overseas business accounted for 25.66%, an increase of nearly 7% from 2022 .

Currently, Xgimi's largest overseas markets are Japan, Europe and the United States . The "Aladdin" launched in Japan in 2018 allowed it to successfully enter this market in one fell swoop, and the product even won the first place in the Japanese home market in the category .

However, XGIMI is also actively developing markets and channels. As of last year , its products have covered more than 100 markets around the world and entered 4,500 stores.

In response to the decline in performance, Xgimi Technology stated that it will optimize resource allocation, promote continuous improvement in revenue structure and gross profit margin, and launch more differentiated and competitive products.

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