Absen: Expand more than 4,000 global channel dealers, and products are exported to more than 130 countries and regions

Recently, Absen (300389) released its performance report for the first half of 2022. The company achieved operating income of approximately 1.1 billion yuan, a year-on-year increase of 30.42%; net profit attributable to shareholders of the listed company was approximately 81.42 million yuan, compared with a loss of 38.1621 million yuan in the same period last year; basic earnings per share was 0.2476 yuan. It is planned to distribute a cash dividend of 15 yuan (tax included) for every 10 shares.

Absen said that in the first half of the year, operating income in the Chinese market declined year-on-year in 2021, but overseas markets recovered rapidly with the easing of epidemic prevention policies, growing by more than 100% year-on-year in 2021. The implementation of the company's "both internal and external attacks" strategy has provided guarantee for the overall stable growth of the company's performance in the uncertain external economic environment. Through the promotion of comprehensive channels, the company has expanded to a total of more than 4,000 global channel dealers by mid-2022, forming a relatively complete channel system; at the same time, it has established a channel performance evaluation and elimination mechanism, optimized the channel structure, and laid the foundation for continued performance growth.

Public information shows that Absen is the world's leading provider of LED display applications and services, providing customers with a full range of LED large-screen display products and professional audio-visual solutions. The LED display categories provided by the company range from outdoor to indoor, from rental to fixed installation, with various forms and rich product portfolio. The company's products are widely used in advertising displays, stage displays, commercial displays, and data visualization., meeting rooms and other scenes.

Products are exported to more than 130 countries and regions

In recent years, with the continuous innovation and cost optimization of LED display technology, the application of LED displays has become more popular and diversified. In addition to being used in public display scenarios such as outdoor advertising, performing arts rentals, commercial displays, monitoring and dispatching, and smart government affairs, LED displays have also begun to be promoted to home and civil scenarios.

As the domestic epidemic has been controlled in stages and the government's economic stimulus policies have been intensively introduced, the LED market is also expected to return to the track of normal growth. Overseas epidemic control has been gradually relaxed, and various types of trade exhibitions, cultural tourism, performances, sports and other mass gathering activities have been gradually reopened, driving the demand for LED large screens to pick up, and the market sentiment has gradually recovered.

As one of the earliest LED display companies exporting overseas, Absen has been deeply involved in overseas markets, has made steady progress, and built the unique influence of Chinese brands in the world. Major international exhibitions have always been an important benchmark for industry product technology development and market promotion.

As overseas markets gradually emerge from the gloom, the global exhibition process is also rapidly restarting. In the first half of 2022, Absen will participate in exhibitions in North America, Europe, Asia-Pacific, Latin America and other places. At the same time, it will combine online marketing and other forms to showcase new products, new technologies and solutions to global customers. With the comprehensive recovery of overseas markets, the company's international market business grew rapidly during the reporting period.

At present, Absen products are exported to more than 130 countries and regions in the Americas, Europe, Australia, Asia, Africa, etc. Excellent product cases include presidential press conferences, CIIE, World Cup, NBA games, New York Times Square, virtual studios, etc. Currently, more than 50,000 application examples have been successfully implemented.

In addition, the company's hotel conference business is in a leading position in the industry, covering 31 cities. It has worked closely with nearly 20 hotel groups and nearly 300 high-star hotels such as Marriott, Hilton, Shangri-La, and Greenland, and has installed audio-visual equipment based on LED displays independently manufactured by Absen Optoelectronics in more than 500 hotel banquet halls and conference rooms. Provides equipment rental and conference services, serving nearly 20,000 events each year, with a total of more than 90,000 events.

Relying on the advantages of hotel resources and LED display expertise, Absen creates hotel creative display application scenarios such as high-end hotel immersive banquet halls. "Meeting", a one-stop convenient meeting platform launched by Absen Conference Services, has been officially launched. The platform brings together a massive amount of high-quality resources to build an efficient matching and trading venue for conference organizers, conference hotels, and suppliers across the country, improves the efficiency of resource circulation, and promotes the conference market to move towards large-scale and high-quality development.

At the same time, Absen’s integrated marketing business has grown rapidly, with an annual growth rate of over 50% since its establishment. The business covers public relations communications, online activities, offline activities and other fields, providing customers withProvide full-process services from creativity, design to implementation. Customers include Tencent, Douyin, Kuaishou, iQiyi, Xiaomi, SF Express, Kingdee, OPPO, DJI and a series of large and well-known enterprises.

Technological innovation drives new opportunities for LED displays

In recent years, with the emergence of LED display chip technology (Mini LED, Micro LED) and new packaging processes (IMD, COB, MIP, etc.), it has further promoted the rapid development of the industry and pushed small-pitch LED displays into a new stage of development.

The new generation of display screens that combine flip-chip Micro LED and COB integrated packaging processes have shown leaps and bounds in display performance, quality reliability, user experience and other aspects. It will further highlight the technical advantages of LED in large screens and drive a broader application space.

Micro LED has been widely used in the fields of professional and commercial displays, and continues to replace large-screen display technologies such as DLP, LCD wall-mounting, and projection. With the development of technology and the reduction of costs, Micro LED has the potential to enter a broader civilian consumer market. The company has long been focusing on the research and development of Micro LED technology and continues to promote Micro LED products for commercial use.

In the first half of 2021, Absen has independent intellectual property rights HCCI technologyMicro LED display products with advanced technology have been successively unveiled at global exhibitions and have been well received and favored by professional customers at home and abroad. The company's full range of Micro LED displays have the advantages of high image quality, long battery life, wide color gamut, and high stability. They support 5G/8K ultra-high-definition technology and are suitable for various mid-to-high-end display scenarios.

Absen has long-term and steadfast investment in Micro LED new display technology. In July 2022, the company launched the Kunlun COB series of new products, further enriching the Micro LED product line, providing more choices for global customers, and accelerating the entry of Micro LED displays into the era of full circulation.

In addition, Absen has always attached great importance to R&D construction and investment. In the first half of 2022, it invested approximately 56 million yuan in R&D expenses, an increase of approximately 23% over the same period last year, and R&D expenses accounted for approximately 5% of operating income. The company continues to carry out technical layout in the fields of Mini/Micro LED integrated packaging technology, new generation control systems and image quality optimization algorithms, and has made major breakthroughs.

In the field of Mini/Micro LED integrated packaging technology, based on years of technology accumulation, Absen's COB product technology solutions have become increasingly mature, and process stability and product performance have been significantly improved. In order to further improve the performance of COB products, the company has actively deployed a new generation of COBPackaging technology to solve the problems such as black screen modularity inherent in current COB products, improve display effects, and reduce costs at the same time.

In the field of control systems and image quality optimization algorithms, Absen has deployed a new generation of self-developed control system upgrade technology. At the same time, it has increased joint development efforts with control system suppliers and actively deployed image quality optimization algorithms to ensure that the display effect is industry-leading. At the same time, the company has invested heavily in research and development resources to solve problems such as display fire protection, moiré pattern, and blue light damage that have always existed in the industry, and gradually established core technical barriers to enhance product competitiveness.

For new business areas such as virtual studios, XR, and home theaters, Absen has actively carried out technical layout and launched a series of products and solutions. At the first Virtual Production Ecological Conference held in the United States, the company actively participated in the discussion of technical challenges and innovative solutions in the global virtual production market, discussed new trends in the development of virtual production, and released a variety of virtual studio solutions.

At present, the full-scene LED display solution for virtual shooting launched by Absen has been successfully used in the United States, China, the United Kingdom, Scenarios such as virtual studios, studios, and XR stages in France, Russia, Canada and other major countries around the world have received good market feedback and have significant industry advantages.