The gross profit margin of LED displays has increased, and Absen’s net profit in the first three quarters is expected to increase by more than 30%

On October 9, Absen released a performance forecast for the first three quarters of 2026. It is expected that the net profit attributable to shareholders of listed companies in the first three quarters of 2026 will be 245 million yuan to 265 million yuan, a year-on-year increase of 32.31% to 43.11%.

Absen said that during the reporting period, the company benefited from factors such as improved product competitiveness and continued improvement in brand awareness. The company's operating income increased year-on-year, laying the foundation for performance growth. At the same time, as the large single product strategy continues to advance, product structure continues to be optimized, and product competitiveness further improves, the gross profit margin of the company's main product LED display screen increases year-on-year, driving the overall gross profit margin to increase, and product profitability continues to increase.

During the reporting period, Absen continued to increase investment in high-quality regional markets such as North America and Europe, deepened market layout and customer expansion, further increased the proportion of high-quality customers, and promoted improvement in business quality.

Absen also continues to promote digital transformation and artificial intelligence applications, optimize business processes and operational management, promote per capita efficiency improvement, and provide support for operational efficiency improvement and performance growth.

In addition, Absen's operating cash flow has shown improvement quarter by quarter. In the first quarter of 2026, the company's net cash flow from operating activities was -167.1614 million yuan, which rebounded to 2.4008 million yuan in the second quarter, turning from negative to positive; the net cash flow from operating activities in the third quarter is expected to be approximately 22 million yuan to 26 million yuan, continuing to improve quarter-on-quarter.

Absen has recently further expanded its commercial display business. On September 24, the company increased its capital by 50 million yuan to its wholly-owned subsidiary Shenzhen Absen Conference Co., Ltd. with its own funds and changed its name to Shenzhen Absen Commercial Display Technology Co., Ltd. After the capital increase is completed, the company's registered capital will increase from 50 million yuan to 100 million yuan.

The new company’s business covers commercial display products such as LED displays, digital signage, interactive flat panels, commercial and hotel TVs, and splicing display walls, as well as artificial intelligence hardware development, industry system integration, and global import and export business. The company takes "AI + standardized display solutions" as its core strategy to further expand the commercial display market.

In addition, on September 28, Absen released the "White Paper on Smart Educational Display Solutions", proposing relevant solutions around the driving force for change in the educational display industry and the construction of new generation educational display capabilities.

At the same time, Absen carried out research and development around Micro LED, AI image quality processing and other technologies in the first half of the year, and launched products such as CL V3, JP series, CL Pro V3, AW outdoor series, NT V2 and KLCOB V3. According to the company's disclosure, the cumulative sales of Micro LED products have exceeded 820,000 units.

Absen also continues to explore the integrated application of artificial intelligence and LED display, and has launched self-developed Aknow intelligent platform, AI conference assistant and other applications one after another; the A25 series of low-carbon outdoor screens are equipped with AI intelligent energy efficiency management, and the overall energy efficiency is increased by more than 50% compared with the industry average. In addition, the company has also implemented projects such as the world's largest single LED virtual studio and the world's first artificial intelligence-themed art museum.

There is also new progress in R&D and headquarters base construction. On October 8, Absen won a new industrial land in Bantian Street, Longgang District, Shenzhen City. The transaction price was 64.6 million yuan. The land area is about 15,800 square meters and the total construction area is about 66,000 square meters. It is planned to be used for global headquarters base and product R&D upgrade construction projects.

Absen stated that this land acquisition aims to provide long-term and stable space guarantee for the company’s R&D innovation and headquarters operations. After the completion of the project, it will help improve the functional layout of the company's headquarters, enhance R&D innovation and operational support capabilities, and is in line with the company's development strategy and the long-term interests of all shareholders.