Editor's note: "US Stock Gold Mining" Keep up with daily market trends, insight, and consolidate hot and outstanding stocks, providing multi-dimensional investment opportunities for Mooer and helping them grasp investment opportunities with one chart! Focus on: 1. Performance and stock prices take off! Global fast fashion giant $Gap Inc (GPS.US)$ soared nearly 29% after its performance, reaching a new high for the year. Gap announced its first fiscal 2023 first-quarter results, with net sales of $3.4 billion, exceeding analysts' expectations of $3.28 billion, and earnings per share of $0.41, with overall comparable sales growth of 3%, better than expected 0.91%. In addition, the gross profit margin for the quarter reached 41.2%, higher than analysts' forecast of 38.5%. Its subsidiary brand Old Navy's same-store sales grew by 3%, exceeding market expectations of 2.5%. Based on this, Gap raised its sales and operating profit outlook for the year. Baird has recently raised its target share price for Gap from $23 to $28, and Goldman Sachs has raised its target share price for Gap from $20 to $27. 2. US electric power stocks collectively agitated! The largest wind and solar power generator developer in the United States $NextEra Energy (NEE.US)$, the fourth largest power plant in the United States $Southern Company (SO.US)$, the power and natural gas company $CenterPoint Energy (CNP.US)$, and the electrical production and transmission company $Edison International (EIX.US)$ have all reached new highs for the year. On the news front, as AI technology often requires a lot of energy to develop and operate, utility stocks are becoming a new opportunity for investors. 3. Low-key AI beneficiaries! Data storage giant

On January 25-26, 2024, China Securities Regulatory Commission held the 2024 System Work Conference and emphasized that it should highlight the concept of investor orientation. To help investors better understand the real development situation and value of the enterprise, further protect the legitimate rights and interests of investors, etc., Caijing.com and 'Science and Technology Innovation Board Daily' jointly created the 'Shareholders Meeting in Perspective' column.

The "Direct Shareholders' Meeting" section reports on-site, facing the core management such as the chairman of the listed company directly at the shareholders' meeting, focusing on long-term business strategies, major decisions, operational guidelines, aiming to enhance the company's image in the capital market, optimize investor relations management, and improve governance and development of the listed company.

This issue's company:

Xgimi Technology

Company profile

Xgimi Technology was established in 2013 and is a high-tech innovation enterprise focusing on the new display field, with a key focus on creating innovative products such as smart projectors and laser TVs, integrating design, R&D, manufacturing, sales, and services.

Company Highlights

According to IDC data, after breaking the monopoly of foreign brands in the Chinese projector market since 2018, XGIMI Technology has been the top shipper in the domestic market for five consecutive years, and has also ranked first in both shipment volume and sales revenue for three consecutive years; the company's overseas business radiates to more than 100 countries and regions including Germany, the United Kingdom, France, Russia, Japan, and the United States.

Business model

XGIMI Technology mainly sells smart projectors and accessories through e-commerce platforms and offline channels, with the current product sales mainly concentrated domestically, while actively expanding overseas markets. In addition to selling products, XGIMI Technology also provides internet value-added services and generates income.

On November 21, the Star Market Daily (Reporter: Huang Xiumei) reported that XGIMI Technology recently held its first extraordinary shareholders' meeting of 2024 in its self-owned building in Area A of the Tianfu Software Park in Chengdu Hi-tech Zone, deliberating and approving the "Proposal on the Reappointment of the Accounting Firm".

XGIMI Technology landed on the Star Market in March 2021 as the "number one smart projector stock". Earlier this year, the company officially announced its entry into the automotive projection field, attracting high market attention.

At the shareholder meeting, XGIMI Technology's relevant personnel responded to market and investor concerns.

The scheduled car project is expected to be mass-produced and supplied by 2025.

On the evening of November 18th this year, Xgimi Technology once again announced that its wholly-owned subsidiary, Yibin Xgimi Optoelectronics Co., Ltd. (referred to as 'Yibin Xgimi'), received a notice of customer-specific development.

So far, Xgimi Technology, which has ventured into the car projection business since the beginning of this year, has secured partnerships with 5 automotive industry chain customers.

The targeted projects obtained by Xgimi Technology cover intelligent cabins, intelligent headlight components, and other auto parts. Customers include domestic and foreign well-known automotive industry chain enterprises such as Beijing New Energy Automobile Co., Ltd., and Marli Auto Parts (Wuhu) Co., Ltd.

When asked by reporters from the STAR Market Daily, an official from Xgimi Technology's Secretary of the Board stated, 'Currently, most of what we deliver are smart cabin projections. This is also the smoothest part of our technology transfer, but with higher requirements for in-car products, needing to meet automotive-grade standards.'

'As for when the aforementioned targeted projects will generate business revenue for Xgimi Technology,' said the company's Secretary of the Board, 'After Yibin Xgimi received the customer's development notice, both parties have entered a performance state. It is expected to generate a certain amount of revenue from in-car business next year, and all 5 targeted projects are expected to be mass-produced and supplied by 2025.'

'However, our strategic goal is not just these targeted projects, but ultimately gaining targeted customers from international industry chain enterprises.' The aforementioned official from the Secretary of the Board further stated that international industry chain enterprises have requirements for large-scale production applications of products.

Earlier this year, Xgimi Technology identified the automotive business as a key strategic focus, not only establishing a Car Business Unit but also increasing investment in the research and development as well as expansion of the automotive business. They explicitly focus on intelligent cabins, smart headlamps, and HUD, advancing and promoting cooperation with domestic and foreign vehicle manufacturers, and refining the automotive business supply chain.

Reporters from the STAR Market Daily noticed that with the rapid development of the new energy vehicle market, the intelligentization of vehicle bodies and services has become a key focus area for major automobile companies and industry chain enterprises. Many well-known enterprises have been actively entering the car projection field.

As a leading company in car-mounted projection, appotronics corporation has accumulated a total of 10 designated car-mounted business projects, including chongqing sokon industry group stock ask frontier M9, BAIC New Energy Enjoy S9, BYD and Smart; Huawei, Hisense, Changhong, Sibichi and other manufacturers have also increased their investment in the car-mounted optical field.

For the continuously evolving car-mounted projection market, a person in charge of the secretary's office of xgimi technology stated, "Due to the strictness of automotive-grade standards and customer's initial investment in verification, the supply chain of the car-mounted field is somewhat closed-looped. Once both sides establish a supply relationship, it is stable."

Continuously exerting efforts in overseas markets.

It is worth noting that 2024 is not only a key year for xgimi technology to enter cross-border areas but also a year of significant decline in its business performance.

The financial report shows that from the first quarter to the third quarter of this year, looking at each quarter, xgimi technology achieved revenues of 0.826 billion yuan, 0.774 billion yuan, and 0.682 billion yuan respectively; achieving net income attributable to the parent company of 14.32 million yuan, -10.22 million yuan, -44.43 million yuan respectively. It suffered losses for two consecutive quarters, with the losses expanding, causing concerns among many investors.

At the shareholders' meeting, a person in charge of the secretary's office of the company responded, "As projection is a non-essential consumer product, due to changes in the macroeconomic situation, the company's sales have also undergone significant changes; at the same time, we will also encounter issues related to product research and innovation cycles."

"In the past, we have also encountered cyclical issues, which require companies to adapt and cooperate with market conditions." The above mentioned director's secretary further stated, "At the same time, companies need to launch new technologies and new product forms to support market recovery."

In contrast to the domestic market sales situation, Xgimi Technology's overseas revenue has increased 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 total revenue contribution has also risen from 21.50% to 27.98%.

Regarding the company's expected full-year overseas revenue this year, the Xgimi Technology's director's secretary did not give a positive answer and stated, "The overseas market requires continuous efforts from the company, and there is no explosive growth in any year, mainly related to the form of overseas market channels."

"In China, we mainly sell through jd.com, Tmall, and other e-commerce platforms. However, overseas market customers, especially mid- to high-end customers, prefer to experience offline before placing an order online, which requires the company to 'place goods' in each region. This is also the reason why Xgimi's overseas market growth in the past 2-3 years is basically synchronized with the company's growth in offline locations in overseas markets." he stated.

Baidu reduces its holdings and says "there has been no significant change in the cooperation between the two parties."

"Science and Technology Innovation Board Daily" reporters noticed that, three months after Xgimi Technology went public in 2021, it reached its historical high price of 626.68 yuan per share. However, as of the close on November 20 this year, the company's stock price has fallen to 80.94 yuan per share.

Baidu Capital, which strongly supported Xgimi Technology in the financing process, has also begun to seek an exit. At the end of April this year, Xgimi announced that its second largest shareholder, Baidu Capital, would initiate a reduction plan. As of the end of the third quarter of this year, Beijing Baidu Wangxun Technology Co., Ltd. remains the second largest shareholder of Xgimi Technology, but its shareholding ratio has decreased from 9.88% in March 2021 to 5.04%.

"Almost all investors ask me when they call, whether Baidu's reduction in holdings means they are not bullish on the company, but the Baidu Group has been investing in us since 2018, it has been 7 years," responded the Xgimi Technology director's secretary. "Baidu Capital, as a primary market investor, seeking to exit is very normal, and its reduction in holdings is more about financial considerations. There has not been a significant change in the business cooperation between Xgimi Technology and the Baidu Group before and after the reduction in holdings."

Regarding the industrial merger plan, a spokesperson from Xgimi Technology's office of the board of directors stated, "The company is also carefully considering merger opportunities, but definitely has its own demands, hoping that the two parties' businesses can be combined. The hope is to quickly establish a presence in the automotive sector, provide assistance in brand building, and not blindly follow the trend."