Xinruida: Micro LED technology under development can be applied to VR/AR display terminals, but no orders have been transferred yet

On November 6, Xinruida stated on the investor interaction platform that the company has been deeply involved in the new display field. The Micro LED technology project under development can be applied to VR/AR display terminals, but has not yet been converted into orders. In the field of plant lighting, since the relevant invention patents were obtained in 2017, the products currently sold include a series of red light LEDs with high photon flux efficiency at 660 and 730nm, etc., with relatively small revenue, which accounts for a relatively low proportion in the company's revenue structure.

Data shows that since its establishment, Xinruida has introduced new supply chains of brand manufacturers every year. Currently, Xinruida has passed the audit system of well-known domestic and foreign consumer electronics companies such as Huawei, Samsung Electronics, Hisense, Skyworth, Changhong, TCL, Sharp, Xiaomi, Seoul Semiconductor, Foxconn, AOC Technology, Lexuan Technology, Suzhou Canyu, BOE Video, Suzhou Gaochuang, Lumens, Xixing, and other smart education display product manufacturers, and has become one of the main suppliers of optoelectronic systems for new display products. It has also established long-term and stable commercial cooperation relationships with major customers in terms of products, technology, quality, etc.

In the first three quarters of this year, Xinruida's revenue increased by about 50%, but the net profit attributable to the parent company and the non-net profit did not increase significantly, or even decreased. In this regard, Xinruida stated that since 2020, the global economic changes have increased unstable factors. The company has always adhered to the business policy of technology-led market orientation, and the operating income has increased year-on-year and the two-year average indicators. However, due to the company's large increase in R&D investment and the rise in the price of bulk aluminum-based materials, the net profit growth rate in the reporting period was slower than the revenue.

Xinruida said that it will implement the following measures to improve: first, strengthen supply chain management, and continuously reduce raw material costs through resource integration and channel innovation; second, increase process management to further improve production efficiency and product quality; third, accelerate the conversion of R&D cost projects into revenue. In the long run, Xinruida has been deeply involved in the new display industry for many years. With the support of the national strategic emerging industry policy, new technologies and new scenarios are emerging in an endless stream. It continues to expand in areas including MiniLED display and other technologies, in-vehicle display and other scenarios, and healthy smart light sources, increasing the added value of products and services, improving the efficiency of management and governance, and operating steadily and developing innovatively.