光峰科技：2023年年度报告

Stock Code: 688007 Appotronics Corporation Limited Annual Report 2023 April 2024 本报告为深圳光峰科技股份有限公司自愿披露的《2023年年度报告（英文版）》，对本报告的中英文版本理解上发生歧义时，以中文版本为准。 This is 2023 Annual Report (English version) voluntarily disclosed by AppotronicsCorporation Limited. In the event ofany discrepancy between the English and Chineseversions of this report, the Chinese version shall prevail. Forge Ahead with Determination Dear all shareholders of Appotronics: I am glad to talk with you at this time each year. The year 2023 witnessed thesuccessfultransformation of Appotronics. Despite the various challenges we experienced in this yearfull of uncertainty in the external environment, we not only withstood the pressure but alsoachievedasuccessful transformation to stand on a bigger stage. I am especially grateful foryour long-lasting trust and partnership during this process. With the firm belief in the power of persistence when facing various internal andexternal challenges, we persisted in the development strategy of “core technologies + coredevices + application scenarios” in the path of transformation. The “fundamental businesses”,including the cinema and dedicated display, and the “growth businesses”, including theautomotive business, are highly complementary to each other in building a combination of“aggressive and defensive” fort for the Company, which created a very stable businessstructure for Appotronics. Despite the objective huge growth potential of the automotivebusiness, there will be a stage of intense competition prior to the maturity of the automotivebusiness. Under such circumstance, the cinema and dedicated display businesses stood outby the value they created. More importantly, without reducing our efforts for existingbusinesses, wehave beendevelopingnew growth poles for mature businesses to greatlyimprove the speed and strength of making breakthroughsin growth businesses. In 2023, we achievedasubstantive breakthrough in the automotive business. “AITOM9”, as Huawei’s smart flagship SUV and the first nominated automobile model for us, hasbeen officially implemented. Besides AITO M9, there are another 5 nominated automobilemodels notreleased,which will also contribute to the performance of the Company in thefuture. The breakthrough in the automotive optics business is of far-reaching significance.As the automotive industry is experiencing historicalandstructural changes, we are both aparticipant and a beneficiary as a link in the automotive industry chain. This willhaveactiveand profound effectsonthe development of the fundamentals of the Company and the futuregrowth of performance. In 2023, we achieved high-quality development of the cinema projector business tobuild it into a cornerstone of business growth. As of December 31, 2023, the installations ofthe APLD®laser projection solution exceeded 29,500 sets in China.The new generationof active projection technology-VLED LED Cinema projection solution-released byCINEAPPO, a subsidiary of Appotronics, has been successfully implemented in cinemasinmultiple provinces and cities, which will develop into a new point of profit growth for thecinema business in the future. We follow the strategy of developing fundamental businesses and growth businessesside by side with a focus on improving operating quality. Meanwhile, we strive to seize theopportunity of transforming a small racetrackinto a big market to continuously expand ourstrategic advantages and achievements in the field of automotive optics. Thanks to thehistorical opportunity of the emerging and rapidly rising new racetrack for new energyvehicles in China, we take active measures to acquire the blue ocean market ofautomotiveoptics and smart cockpits, and work with domestic and overseas leading automobilemanufacturers to create completely new driving and riding experience for consumers by the“Shenzhen acceleration” in the racetrack of automotive optics. In the coming years, we will strive to build a smart supply chain, transforming a “smallworkshop”into novel “smart manufacturing”. We will move to a new production base, whichmeans a brand new start to solidify the foundations including research and development,supply chain, and platform capabilities. In addition, we will continuously promote the integration of laser display technologieswith new technologies to expand to artificial intelligence (AI), augmented reality (AR), androbot fields. Given the rapid development and enhancement of each other, these three typesof technologies are gradually becoming a new direction for application development in thelaser display industry. Toachieve this objective,we will continuously strengthen our capabilities ofengineering and smart manufacturing, improve the quality system, strive foranin-depthcombination of R&D and the supply chain, and create a smart manufacturing system in theoptics field with concrete efforts. We will insist on the adjustment and innovation ofthe R&Dorganization to make it more resilient an