Editor's note:

From January 25 to 26, 2024, the China Securities Regulatory Commission held the 2024 System Work Conference and emphasized the need to highlight the investor-centered concept. In order to help investors better understand the true development situation and value of the enterprise and further protect the legitimate rights and interests of investors, etc., the Financial Federation and “Science and Technology Innovation Board Daily” jointly created the “Direct Access to Shareholders' Meeting” column.

The “Direct Shareholders' Meeting” column focuses on the long-term strategies, major decisions, management policies, etc. of the enterprise by confronting the chairman of the listed company and other core management at the shareholders' meeting in the form of live reports. The aim is to enhance the corporate capital market image, optimize investor relationship management, and improve the relevant governance and development of listed companies.

Companies in this issue:

Jimi Technology

▍ Company Profile

Established in 2013, Jimi Technology is a high-tech innovation enterprise focusing on the field of new displays, focusing on creating innovative products such as smart projection and laser TV, integrating design, R&D, manufacturing, sales and service.

▍ Company Highlights

According to IDC data, since breaking the monopoly of foreign brands in the Chinese projector market in 2018, Jimi Technology has been ranked first in shipments in the domestic market for five consecutive years and number one in both shipments and sales for three consecutive years; the company's overseas business coverage includes more than 100 countries and regions including Germany, the United Kingdom, France, Russia, Japan, and the United States.

▍ Profit Model

Jimi Technology mainly sells smart projectors and accessories through e-commerce platforms and offline channels. Currently, product sales regions are mainly distributed domestically, and it is also actively expanding overseas markets. In addition to selling products, Jimi Technology also provides value-added Internet services and earns revenue.

“Science and Technology Innovation Board Daily”, November 21 (Reporter Huang Xiumei) Jimi Technology recently held the 2024 First Extraordinary General Meeting of Shareholders in Tianfu Software Park Area A, Chengdu High-tech Zone to review and pass the “Proposal on Renewal of the Accounting Firm”.

Jimi Technology listed on the Science and Technology Innovation Board as the “First Smart Projection Stock” in March 2021. At the beginning of this year, the company officially announced its cross-border entry into the field of in-vehicle projection, which attracted great attention from the market.

At the shareholders' meeting held this time, the relevant officials of Jimi Technology also responded to topics of concern to the market and investors.

The on-board fixed-point project is expected to be mass-produced and delivered within 2025

On the evening of November 18 this year, Jimi Technology once again announced that its wholly-owned subsidiary Yibin Jimi Optoelectronics Co., Ltd. (“Yibin Jimi”) had received a fixed notice for customer development.

So far, Jimi Technology, which began entering the automotive projection business across borders at the beginning of this year, has 5 designated customers in the automotive industry chain.

The targeted projects harvested by Jimi Technology include smart cockpits, smart headlight parts products, etc. Customers include well-known domestic and foreign automobile industry chain companies such as Beijing New Energy Vehicle Co., Ltd. and Marelli Auto Parts (Wuhu) Co., Ltd.

In response to a question from the “Science and Technology Innovation Board Daily” reporter, a member of the board of directors of Jimi Technology said, “Currently, most of our deliveries are smart cockpit projections. This is also the smoothest (smooth) part of the transfer of our technical capabilities in the past. However, in-vehicle products require higher requirements and need to meet vehicle standards.”

Regarding when the above fixed points will bring business revenue to Jimi Technology, the company's director and secretary said, “After Yibin Jimi received the customer's designated development notice, the two parties have already implemented the contract. It is expected to generate a certain amount of in-vehicle business revenue next year, and all five targeted projects are expected to be mass-produced and delivered within 2025.”

“But our strategic goal is not just these targeted projects, but to eventually get the targets of international industrial chain companies.” The director and secretary mentioned above further stated that international industrial chain enterprises have requirements for large-scale mass production and application of products.

At the beginning of this year, Jimi Technology listed the automotive business as an important direction in its strategic layout. It not only established an automotive division, but also stepped up investment in the R&D and expansion of the automotive business, clearly proposed focusing on the three core scenarios of smart cockpits, smart headlights, and HUD, developing and promoting with domestic and foreign automakers, and improving the automotive business supply chain.

The “Science and Technology Innovation Board Daily” reporter noticed that with the rapid development of the NEV market, the intelligence of vehicle bodies and services has become a key area of focus for major car companies and industrial chain companies, and many well-known companies have set up the field of in-vehicle projection.

Guangfeng Technology, which is also a leading automotive projection company, has now received a total of 10 automotive business targets. The fixed projects include Celis Wanjie M9, BAIC New Energy Enjoy S9, BYD and Smart; manufacturers such as Huawei, Hisense, Changhong, and Spitz are also increasing the field of automotive optics.

Regarding the automotive projection market, where players are constantly entering the market, the director of Jimi Technology said, “Because of the strictness of vehicle standards and early customer verification investment, etc., the automotive industry chain supply is closed to a certain extent. Once the two parties form a supply relationship, it is stable.”

Continue to strengthen overseas markets

It should be noted that 2024 is not only a key year for Jimi Technology to enter the market across borders, but also a year where its business performance declined sharply.

Financial reports show that from the first quarter to the third quarter of this year, from a single quarter, Jimi Technology achieved revenue of 0.826 billion yuan, 0.774 billion yuan, and 0.682 billion yuan respectively; net profit to mother of 14.32 million yuan, -10.22 million yuan, and -44.43 million yuan respectively; its losses and losses increased for two consecutive quarters, causing many investors' concerns.

At this shareholders' meeting, the company's director and secretary responded, “As a consumer product that is not just needed, the company's sales situation has also changed quite a bit due to macroeconomic changes; at the same time, we will also encounter problems with the product development and innovation cycle.”

“We have actually experienced cycle problems in the past. This requires companies to adapt and adapt to market conditions.” The director and secretary mentioned above further stated, “At the same time, companies need to launch new technologies and new product forms to match market recovery.”

Unlike the domestic market sales situation, Jimi Technology's overseas revenue has risen from 0.35 billion yuan in the first half of last year to 0.448 billion yuan in the first half of this year; during the same period, its share of total revenue also increased from 21.50% to 27.98%.

Regarding the company's overseas revenue expectations for the full year, Jimi Technology's secretary did not respond positively and stated, “The overseas market requires the company to continue to work hard. There is no outbreak of growth in any year. This is mainly related to the overseas market channel pattern.”

“Domestically, we mainly sell through e-commerce platforms such as JD and Tmall. However, overseas market customers, especially middle and high-end customers, prefer to experience offline before placing an order. This requires the company to “shop” each region one by one. This is also the reason why the growth of Jimi's overseas market over the past 2-3 years is basically the same as the company's growth in offline positions in overseas markets.” Its representation.

Baidu reduced its holdings and said “the cooperation between the two sides has not changed much”

The “Science and Technology Innovation Board Daily” reporter noticed that after 3 months of listing in 2021, Jimi Technology reached its all-time high price of 626.68 yuan/share. However, by the close of trading on November 20 this year, the company's stock price had dropped to 80.94 yuan/share.

Baidu Capital, which once strongly supported Jimi Technology during the financing process, has also begun to seek an exit. At the end of April this year, Jimi announced that Baidu, its second-largest shareholder, would launch a plan to reduce its holdings. As of the end of the third quarter of this year, Beijing Baidu Netcom Technology Co., Ltd. was still the second-largest shareholder of Jimi Technology, but its shareholding ratio had dropped to 5.04% from 9.88% in March 2021.

“Almost every investor calls and asks me if Baidu is not optimistic about the company by reducing its holdings, but Baidu has been investing in us since 2018, and it's been 7 years.” A member of the board of directors of Jimi Technology responded, “Baidu is a primary market investor, and it is normal for Baidu Capital to seek an exit, and its holdings reduction was due more to financial considerations. The business cooperation between Jimi Technology and Baidu did not change much before and after reducing holdings.”

Regarding the industrial merger and acquisition plan, the director and secretary of Jimi Technology said, “The company is also carefully considering merger and acquisition opportunities, but it definitely also has its own demands. I hope the two parties can combine their businesses. I hope the rapid layout in the automotive field will help, help in brand building, and not blindly cater to the trend.”