On July 1, Leyard released a record of investor relations activities, which introduced the company operations.
In terms of technology, Leyard pointed out that the company established a joint venture with Epistar in 2020, Lijingwei, which is one of the first companies to achieve mass production of Micro LEDs, and the minimum pitch has been achieved at 0.4mm.
In terms of product positioning, Leyard products are currently mainly To B, and it is actively promoting the process of entering the To C market with Micro LED. In June 2021, Leyard launched the Micro LED consumer TV, but it has not yet entered a large-scale promotion period. The main reason is that the cost of Micro LED is too high, and Leyard still needs time to explore the business model of the To C market.
At present, Leyard is actively promoting the cost reduction of Micro LED. On the one hand, it strengthens research and development, such as using COG technology, etc.; Optimized to reduce the cost of Micro LEDs.
In terms of channels, Leyard said that at present, the company uses the Leyard brand for promotion in the mid-to-high-end market, and the Jin Lixiang brand for the sinking market.
In terms of night travel and cultural tourism business, Leyard pointed out that these two businesses grew very fast from 2015 to 2018, but in 2018, after the government introduced the deleveraging policy, it declined significantly. In the future, Leyard will gradually reduce the proportion of night travel and cultural tourism business, and at the same time integrate and transform its lighting companies.
In the VR business, the core of Leyard lies in the optical motion capture technology and products owned by the wholly-owned American Natural Point (NP). It is reported that in 2021, the order level of Leyard VR sector has reached a record high. The main reasons are as follows:
1) The market awareness of motion capture technology has increased. Leyard pointed out that the birth of the metaverse concept has drawn more attention to the motion capture technology and products as the underlying technology.
2) Technical iteration of NP motion capture products. It is reported that NP Optitrack product will be upgraded to version 3.0 in 2021, and the improvement in performance indicators has also spawned more applications.
It is reported that NP company mainly sells hardware and software overseas. In China, Leyard established a virtual mobile point to promote VR business. There are three main promotion directions: one is the domestic sales of NP products (Optitrack); the second is the development and implementation of customized solutions; the third is the reserve of digital assets.
In addition, Leyard also said that facing 2022, the company faces several new opportunities:
First, due to the outbreak of the epidemic and the occurrence of extreme events in the industry, the clearing of the industry has accelerated, and industry dividend opportunities for leading companies will appear;
Second, although the overall order scale of the Micro LED market is not large at present, it represents a breakthrough in the industry by a new technology. Micro LED products are the future of the display industry, and the market space is very large. From a long-term perspective, with the implementation and mass production of COG, the promotion to the To C field will have a greater impact on the company development;
The third is the restart of overseas markets. It is reported that in the first half of 2021, the overseas market of Leyard was still in a state of loss. Until May last year, the overseas market entered a stage of shock recovery, and began to accelerate in the second half of last year. Finally, for the whole of last year, Leyard overseas orders exceeded the level of 2019.
In the future, as the vaccination rate increases, the impact of the epidemic on production and operation will weaken. Based on this, Leyard adjusted its overseas layout at the end of 2021, from relying on the Pingda channel to focus on the European and American markets, to a European and American team centered on American Pingda, and Hong Kong International as the center. The Asian, African and Latin American teams in the center jointly develop the global market. In 2022 and for some time to come, overseas will be the focus of Leyard promotion