Absen's net profit attributable to shareholders of the parent company in 2021 was RMB 28.5808 million, a year-on-year increase of 140.17%

On February 28, Absen announced its 2021 interim results. During the reporting period, the company achieved total operating revenue of 2.327 billion yuan, an increase of 41.72% over the same period last year; operating profit was 13.0214 million yuan, an increase of 112.07% over the same period last year; total profit was 12.9511 million yuan, an increase of 112.09% over the same period last year; net profit attributable to shareholders of the listed company was 28.5808 million yuan, an increase of 140.17% over the same period last year; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -15.1234 million yuan, an increase of 83.97% year-on-year; basic earnings per share was 0.0911 yuan.

Among them, the fourth quarter achieved revenue of 925 million yuan, an increase of 66.77% over the third quarter's operating income of 558 million yuan, an increase of 93.92% over the second quarter's operating income of 477 million yuan, and an increase of 152.04% over the first quarter's operating income of 367 million yuan.

Absen pointed out that in 2021, the company implemented a restricted stock incentive plan for employees. In addition, the company has experienced nearly five years of intellectual property litigation against the entire industry in China by American companies. In June 2021, it finally won the intellectual property lawsuit of the "US 337 Investigation". These key events have enhanced the confidence of the management team and employees, increased work passion and enthusiasm, and greatly improved work efficiency and performance.

Throughout 2021, the gross profit margin decreased by 2.28% year-on-year due to factors such as the continued impact of the overseas epidemic, intensified domestic market competition and rising raw material prices; in the fourth quarter, due to economies of scale in production and changes in sales structure, the gross profit margin was 28.88%, an increase of 7.95% from the cumulative gross profit margin in the first three quarters.

In 2021, Absen signed a total of 3.004 billion yuan in orders, an increase of 55.04% year-on-year in 2020 and 11.51% year-on-year in 2019, including:

(1) With strategic investment in key overseas areas and expansion of channels, overseas market business has gradually recovered. In 2021, the company's overseas display screens signed orders of 1.305 billion yuan, a year-on-year increase of 69.24% compared with 2020, but still a year-on-year decrease of 28.39% compared with 2019 before the epidemic;

(2) By deepening its presence in the domestic market, the company has formed a relatively complete channel management system, achieving RMB1.512 billion in orders for display screens in China, a year-on-year increase of 46.77% from 2020 and 112.28% from 2019; by the end of 2021, the company had expanded its channel partners in the Chinese market to approximately 1,600;

(3) As of December 31, 2021, the Company had unrecognized revenue orders for display screens in hand amounting to RMB909 million.

Looking ahead, in 2022, Absen will strengthen its product line management awareness and capabilities, and continue to provide customers with products with high-quality experience; on the technical side, it will focus on the evolution of display technology and new application cases, identify and layout differentiated technology control points based on the main segments, develop the market and build an ecosystem, and build a production base; in response to the coexistence of multiple micro-pitch technologies, it will maintain technical research and exploration accumulation, and develop key technologies and products such as virtual shooting; efficiently coordinate production, sales and research to accelerate the delivery of new products and enhance the overall competitiveness of products.

Absen will seize the development opportunities of cutting-edge technologies such as Mini/Micro LED and COB, continue to deepen its presence in the large-size display market above 100 inches, and provide customers with the most competitive products. In addition, it will strengthen cooperation with upstream and downstream companies, scientific research institutes and other platforms in technology research and development, trial production, etc., improve research and development efficiency, and promote the implementation of innovative technologies. In January 2022, the second phase of the Mini/Micro LED project of Absen Huizhou Intelligent Manufacturing Center was capped; after the completion of the second phase of the project, the Mini/Micro LED manufacturing capacity will be greatly improved, and the overall annual output of the Huizhou Park can reach about 600,000 square meters, providing a production capacity guarantee for the company's performance growth in 2022 and in the future.