The latest quarterly reports reveal that the AR and VR businesses of listed companies have been growing rapidly. Several companies in this sector have entered a phase of significant returns, contributing positively to their overall business growth.
According to recent agency surveys, the VR hardware segment is showing strong performance with a solid foundation and fast-paced growth. Many of the company’s new VR products started shipping in September, with peak shipments expected during the fourth quarter. This period is anticipated to see more than a doubling of both shipments and revenue from VR services.
The company remains confident in the long-term potential of its VR and AR businesses. On one hand, it has secured orders from major clients for the next one to two years. On the other hand, while some individual customer outputs may be adjusted, there is a growing trend of mid- to high-end customers placing larger orders with the company, leading to an expanding client base.
In the third quarter of 2017, the company reported total revenue of 17.26 billion yuan, a 36.93% year-over-year increase. Net profit attributable to shareholders reached 1.385 billion yuan, up 33.66% compared to the same period last year. The growth was mainly driven by the expansion of the company’s business scale and increased sales orders. During the survey, the company noted that its AR and VR segments performed well in the third quarter. Some customers have already begun planning mass production of new products for next year. Additionally, the company is actively developing resources for VR and AR experience equipment, with plans to explore applications in education, tourism, and real estate.
Looking ahead, the company expects net profit attributable to shareholders to reach between 2.064 billion and 2.395 billion yuan in 2017, reflecting a 25% to 45% year-on-year increase. This growth is attributed to the steady expansion of its sales volume and the rising contributions from VR products.
While the VR and AR sectors were once highly favored by investors, many listed companies have since taken different paths. Nearly 100 listed firms have VR or AR-related strategies. However, as the initial investment boom subsided, the performance of these companies has varied significantly. Some continue to invest in content development and R&D, while others have decided to exit the VR industry altogether.
For example, Perfect World launched a VR game called *Deep Sea Trek*, a standalone marine adventure game that was released on the Oculus Rift in March 2016 and became available globally. In its 2017 semi-annual report, the company stated that the game serves as a powerful platform for advanced technologies like AI and VR, and it continues to explore emerging tech developments.
Huace Film and Television also highlighted in its 2017 semi-annual report that with the advancement of network communication, AR/VR, and mobile internet, content has become a key driver of traffic. It aims to connect new consumption patterns and scenarios, promoting traditional film and television industries to integrate with other physical sectors. The company has deployed VR and AR technologies in the science and technology field.
Chuanda Dazhisheng emphasized that its current VR efforts are focused on education and public awareness. The company has formed strategic partnerships with Aofei Animation and Liad, both of which have strong positions in their respective fields. Liad, a leader in China's LED industry, provides display requirements for Chuanda's interactive products, while Aofei Animation brings valuable IP assets in entertainment, aligning with Chuanda's educational VR initiatives.
On the other hand, Great Wall Animation decided to abandon its planned investment in Xi'an Lingjing Technology Co., Ltd., a VR equipment developer. As of August 31, 2017, the company terminated the deal due to disagreements over the terms of the asset purchase agreement and changing market conditions.
According to recent agency surveys, the VR hardware segment is showing strong performance with a solid foundation and fast-paced growth. Many of the company’s new VR products started shipping in September, with peak shipments expected during the fourth quarter. This period is anticipated to see more than a doubling of both shipments and revenue from VR services.
The company remains confident in the long-term potential of its VR and AR businesses. On one hand, it has secured orders from major clients for the next one to two years. On the other hand, while some individual customer outputs may be adjusted, there is a growing trend of mid- to high-end customers placing larger orders with the company, leading to an expanding client base.
In the third quarter of 2017, the company reported total revenue of 17.26 billion yuan, a 36.93% year-over-year increase. Net profit attributable to shareholders reached 1.385 billion yuan, up 33.66% compared to the same period last year. The growth was mainly driven by the expansion of the company’s business scale and increased sales orders. During the survey, the company noted that its AR and VR segments performed well in the third quarter. Some customers have already begun planning mass production of new products for next year. Additionally, the company is actively developing resources for VR and AR experience equipment, with plans to explore applications in education, tourism, and real estate.
Looking ahead, the company expects net profit attributable to shareholders to reach between 2.064 billion and 2.395 billion yuan in 2017, reflecting a 25% to 45% year-on-year increase. This growth is attributed to the steady expansion of its sales volume and the rising contributions from VR products.
While the VR and AR sectors were once highly favored by investors, many listed companies have since taken different paths. Nearly 100 listed firms have VR or AR-related strategies. However, as the initial investment boom subsided, the performance of these companies has varied significantly. Some continue to invest in content development and R&D, while others have decided to exit the VR industry altogether.
For example, Perfect World launched a VR game called *Deep Sea Trek*, a standalone marine adventure game that was released on the Oculus Rift in March 2016 and became available globally. In its 2017 semi-annual report, the company stated that the game serves as a powerful platform for advanced technologies like AI and VR, and it continues to explore emerging tech developments.
Huace Film and Television also highlighted in its 2017 semi-annual report that with the advancement of network communication, AR/VR, and mobile internet, content has become a key driver of traffic. It aims to connect new consumption patterns and scenarios, promoting traditional film and television industries to integrate with other physical sectors. The company has deployed VR and AR technologies in the science and technology field.
Chuanda Dazhisheng emphasized that its current VR efforts are focused on education and public awareness. The company has formed strategic partnerships with Aofei Animation and Liad, both of which have strong positions in their respective fields. Liad, a leader in China's LED industry, provides display requirements for Chuanda's interactive products, while Aofei Animation brings valuable IP assets in entertainment, aligning with Chuanda's educational VR initiatives.
On the other hand, Great Wall Animation decided to abandon its planned investment in Xi'an Lingjing Technology Co., Ltd., a VR equipment developer. As of August 31, 2017, the company terminated the deal due to disagreements over the terms of the asset purchase agreement and changing market conditions.General Dry Herb Vaporizers,Professional Desktop Evaporator,Low Budget Concentrate Vaporiser,Compact Concentrate Vaporiser
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