In the 1st Annual Performance Conference on September 2, Chairman Cheng Peng of Golden Orange stated that the demand in the 3C consumer electronics market is slowly recovering, and the demand in the consumer market remains stable.

Golden Orange is a laser processing control system company. Its main business is the research and development and sales of laser processing equipment motion control systems and core components. Its products include laser processing control systems, laser system integrated hardware products, laser precision processing equipment, etc., which are used in the consumer, 3C consumer electronics, new energy, aviation, semiconductor and other fields.

Data shows that in the first half of 2024, Golden Orange's revenue increased but not its profit. The company's semi-annual report for 2024 shows that it achieved a revenue of 0.109 billion yuan, a year-on-year increase of 0.05%; a net profit attributable to shareholders of 16.83 million yuan, a year-on-year decrease of 34.24%; a non-GAAP net profit of 12.25 million yuan, a year-on-year decrease of 23.98%.

Regarding the changes in mid-term performance, Chairman and General Manager Lv Wenjie of Golden Orange stated that the existing business of the company remained stable with a slight growth, but there was a large investment in research and development of new technologies and new products, and the new products have not yet generated significant income, resulting in a decline in profit.

However, in terms of quarterly performance, Golden Orange achieved a revenue of 59.67 million yuan in the second quarter, an increase of 20.60% compared to the first quarter; the net profit attributable to shareholders was 9.914 million yuan, an increase of 43.30% compared to the previous quarter, indicating signs of recovery in market demand in the second quarter.

The main source of income for Golden Orange is laser processing control system products, and the sales revenue for the reporting period was 78.3667 million yuan, accounting for 71.80% of the total revenue.

Looking at the industry development trend in the second half of the year, Chen Kun, the Deputy General Manager and Secretary of the Board of Directors of Golden Orange, said that based on the analysis of the year-on-year and quarter-on-quarter data for the second quarter, Golden Orange holds a cautious and optimistic attitude towards the industry situation in the second half of the year.

"Currently, the company's product research and development, market expansion, etc. are all in full swing," Chen Kun further stated that in various production links in the industrial field, the demand for cost reduction and efficiency improvement has increased, and the processing application scenarios of new materials are emerging continuously. The company is also cooperating with downstream application areas to continue technological research and development and market expansion. Therefore, the company's laser processing control system products are expected to gain broader applications in the downstream market.

During the reporting period, affected by factors such as domestic macroeconomics and market demand changes, the traditional field of laser processing applications faced increasingly fierce market competition. In addition to coping with markets such as 3C consumer electronics and large consumer markets, Jinchengzi also continued to advance the technological research and development and upgrades of products such as servo control systems and related accessories, 3D printing control systems, to meet market demand.

Regarding the progress of application expansion, Cheng Peng responded to reporters from the STAR Daily and some investors, stating that during the reporting period, the company's control system products had customers and terminal applications in industries such as aviation, new energy, and photovoltaics. The company's laser trimming equipment is currently being used in the aviation, semiconductor components, and circuit production and processing business.

It should be noted that Jinchengzi's laser 3D printing control system related products can be used for 3D printing business.

"Has the company's 3D printing business secured orders?" an investor asked at the earnings conference.

In response, Cheng Peng stated that the company's 3D printing control system products are mainly aimed at the SLM market, with products capable of achieving related functions. They are currently still in the early stages of market development.

In the latest semi-annual report, Jinchengzi further stated that compared to international manufacturers such as Germany's Scaps, the company still has certain gaps in some performance indicators, details, and technologies related to high-end galvanometer products, robots, and 3D galvanometer-dynamic processing technology. The proportion of the company's sales volume of control systems and other high-end applications is still at a relatively low level.

In terms of overseas market expansion, Jinchengzi's domestic market growth in the first half of the year exceeded that of its overseas market, with the income from overseas markets increasing by -21.63%.

To address the decline in overseas sales business, during the earnings conference, Lv Wenjie stated that the company has made adjustments to its overseas market strategy, focusing more on the sales of high-profit products and the development of major overseas clients, while abandoning some small clients and low-profit products.

"This is a proactive action by the company, concentrating resources on major clients, and there will be a period of pain," added Lv Wenjie, noting that North America, South Korea, Europe, and other regions are key markets for the company's overseas expansion.