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Shenzhen-based laser display technology developer, Appotronics, is getting ready for a significant expansion into the fast-growing intelligent electric vehicle (EV) market. The company, boasting a client roster that includes industry giants like BYD, BMW, and Huawei Technologies, is preparing to open a new production facility by the end of this year, with a strategic focus on automotive optics. According to Appotronics founder and CEO Li Yi, this move could potentially contribute up to a third of the company’s total revenue.
The increase in demand for digital in-car features has prompted Appotronics to strategically align itself with the growing smart EV market.
CEO Li also stated, “The growth may beat our expectations, buoyed by improved production efficiency and rising demand from clients.” Appotronics supplies laser headlights, in-car infotainment screens to EV assemblers, and also fusion window display technology, listed on China’s Nasdaq-style Star Market in Shanghai. Appotronics exclaimed that it operates there where it has no direct rivals yet, that is in a niche market.
Li also stated that they believe their company’s automotive-related business would outgrow the overall Chinese EV market, buoyed by people’s interest in digital cockpits. A profit of around 74.9 million yuan (U.S.$10.5 million) was posted by Appotronics in the beginning half of 2023, up 63% year on year, because revenue declined 15.5% to 1.07 billion yuan. As per the report, in the whole year of 2022, a revenue of around 2.54 billion yuan (U.S.$355 million) was reported with an increase of 1.7% from the year 2021, but the net profit decreased to almost 48% to 120 million yuan.
Li also asserted that the company is pursuing opportunities overseas where the demand for intelligent EVs is seen growing quickly. He said that they were cautiously assessing the feasibility of building plants overseas and manufacturing efficiency must also be thoroughly and carefully studied when clients invite them to localize production. Cao Hua, who is a partner at Shanghai private equity firm Unity Asset Management, said that the Chinese supply-chain firms in the automotive sector have quite better chances of going global as some of their products prove to be unique across the globe. However, it is important for them to convince the clients that the products and technologies will be well received by the drivers and also the passengers worldwide in tandem with the transformation of the auto industry, said Cao Hua.
As smart EVs gain traction globally, Appotronics is positioning itself as a key player in providing innovative solutions for the evolving automotive landscape. The move into automotive optics corresponds with broader industry trends, where advancements in digital technology are reshaping the driving experience. Appotronics’ decision to invest in the intelligent EV market indicates not only a strategic business expansion but also a response to the evolving preferences of consumers who seek flawless integration of technology within their vehicles.