Aurora Australis released its first annual report as a public company to benefit from the expansion of the end market


Recently, Aurora Australis (300940.SZ) released its first annual report since its listing.In the whole year, the company achieved a total revenue of 943 million yuan, a net profit of 42.039 million yuan, a net cash inflow of 69.40.02 million yuan in operating activities, and a basic earnings per share of 0.3625 yuan.During the reporting period, the company’s revenue and net profit decreased by 10.90% and 39.66% respectively, and operating cash flow increased by 11.34% year-on-year.In addition, the Company intends to distribute a cash dividend of 1.52 yuan (including tax) for every 10 shares to all shareholders and convert 6 shares for every 10 shares to all shareholders with the capital reserve fund.”The company’s overall product sales volume was little changed from the same period last year,” the company said. “The decline in revenue and profit was mainly due to lower selling prices, which fell more than costs, and was related to the fierce competition in the market.”At present, the expansion of terminal demand is bringing a broad market space for the company, and the company’s advantages in technology and customer resources are expected to continue to emerge.At the same time, the company is currently listed and invested in LED backlight production base and other new projects are under construction, it is expected that the implementation of production capacity will also inject new momentum for the company’s scale growth.The core product of Aurora Australis is the LED backlight display module, which is mainly used in LCD display screen.The downstream includes smart phone and vehicle display, medical display, industrial control equipment display, home appliance display, etc., among which smart phone is the main application field of the company.According to the data of the company’s 2021 annual report, the annual revenue of the company in the field of mobile phone backlight is 879 million yuan, accounting for 93.25% of the company’s total revenue.After years of deep development, Aurora Australis has accumulated rich customer resources in smart phone and backlight field, and established stable cooperative relationship with customers.It is understood that at present, in the field of mobile phone backlight, the company has successfully entered the qualified supplier system of leading LCD module enterprises such as BOE, Helitai, Huaxian Photoelectric, Huaxing Photoelectric, Dijing Photoelectric, Xinli Photoelectric, Lianchuang Electronics, Tongxingda, Qunzhi photoelectric, etc.The mobile terminal brands of downstream applications include OPPO, VIVO, Xiaomi, Huawei, Honor, Samsung, LG, Transsion, MOTOROLA and other top brands, and have won a good reputation in the industry.From a development perspective, the expansion of the industry is undoubtedly the focus of the future growth of aurora Australis.According to IDC data statistics, global smartphone shipments in 2021 are 1.3548 billion, with a year-on-year growth of 4.84%.On the one hand, although the growth rate of the overall scale has slowed down, the trend of industry growth has not changed. The increase of penetration rate of full-screen mobile phones and the arrival of 5G era have created a broad market space for small and medium-sized backlight display modules.As an industry supported by the state for a long time, the LCD industry has been encouraged to develop by the national industrial policy, and has maintained a rapid growth in scale with the expansion of downstream application markets and fields.According to a research report released by Toubao Research Institute, the output of China’s LCD module industry has reached 7.78 billion sets in 2020, with a market size of 394 billion yuan.It is expected that the output will break through 11 billion sets in 2025, and the market size will reach more than 750 billion yuan, and the annual compound growth rate of the market size will remain at about 14%.Industry analysis said that the current smartphone market share is highly concentrated in the head enterprises, in order to ensure the timely and stable supply of liquid crystal display module manufacturers and generally only a limited number of cooperation, the head manufacturers and backlight module technology and other requirements are more stringent, once determined is not easy to replace.In the field of mobile phone backlight, Aurora Australis has established a stable cooperative relationship with a number of enterprises in the head. In the future, with the expansion of the industry scale, the company will benefit fully.From the technical point of view, the production and manufacturing technology of backlight display module combines the technical achievements of optics, mechanical design, electronics, materials and other disciplines, so it has higher technical requirements.As a leading company in the industry, Aurora Australis has always attached great importance to new product development and technological innovation.According to Wind data, the company’s annual R&D expenditure reached 39.752 million yuan in 2021, continuing the previous high level of R&D investment.In innovative research and development, the company further optimization of the mobile phone back light short optical path ultra-thin technologies of light guide plate technology, large size, strengthen the back light structure design, mold design, and optical microstructure architecture design research and development, and actively layout the reserves of the new technology research and development, continue to keep the lead in the industry of backlit display module.It is understood that at present, the company has the industry’s leading precision mold and high-performance back light product research and development equipment, CNC carved machine, super precision V – CUT machine, diamond precision bump point machine and laser etching equipment such as precision equipment, able to perform high precision mold development, design and manufacture ability, and master the optical microstructure has the capability of independent research and development.Among them, in the field of vacuum compression mold technology, the company has been in the leading level of the industry, and it is fully applied to the production of light guide plate, making it in the leading process at the same time, effectively reduce the production cost of the company.According to the annual report, by the end of 2021, the company and its wholly-owned subsidiaries have owned 158 patents, including 8 invention patents and 145 utility model patents.”Currently, the backlight display module is mainly used in the smartphone market, but we will continue to develop new products to meet the needs of the smartphone market and further diversify the product types in the professional display field to enhance the competitiveness of our products and technology in the market,” the company said.From the current scale, in 2021, the company’s dedicated backlight display module revenue accounted for only 5.89%. In the future, with the development and volume expansion of this business, it is expected to bring new impetus to the company’s overall growth.Disclaimer: This article is for reference only and does not constitute investment advice.advertising

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