Appotronics Corp Ltd

Appotronics released its 2026 half-year report, with first-half operating revenue of 477 million yuan. During the reporting period, the company's upstream core components achieved initial deployment, first applied to cinema light sources. The cinema business and professional display business remained generally stable, while the company proactively scaled back revenue from low-margin automotive optics and consumer business, actively optimizing its business structure. Although the cinema business saw some revenue decline due to first-half national box office performance, it remained generally stable, continued to contribute steady cash flow, and launched a new-generation S-series light source and the GeniLaser series light source using self-developed upstream core components, focusing on overseas cinema markets. The professional display business advanced along three main lines: laser technology routes, product matrix upgrades, and software-hardware collaborative innovation, building a product matrix covering 5,000 to 34,000 lumens, and released its first AIGC 3D mapping software, AIMapper. The automotive optics and consumer business faced significant operating pressure under the macro environment and industry competition. Proactively scaling back low-margin business, while dragging revenue and net profit in the short term, helps the company concentrate resources on areas with greater long-term value.

Appotronics has replied to the Shanghai Stock Exchange's annual report inquiry letter, disclosing that 2025 revenue was 1.709 billion yuan, a year-on-year decline of 29.32 percent. Cinema business revenue was 538 million yuan, a slight drop of 5.58 percent with stable profitability. Professional display business revenue was 275 million yuan, down 29.96 percent but still profitable. Automotive business revenue was 299.9 million yuan, plunging 52.98 percent with gross margin turning negative, posing short-term loss risks. Consumer business revenue was 442 million yuan, down 30.81 percent, with ongoing loss risks. The company's overall gross margin was 28.17 percent, edging down only 0.14 percentage points, at an upper-middle level in the industry. It is addressing loss risks through differentiated technology, optimizing product mix, and cost reduction and efficiency improvement measures.