VR/AR concept heat is not reduced, but domestic VR hardware will face industry shuffling

Last week, Shenzhen ushered in the second International Maker Week, and the VR/AR concept was not reduced, and it was another wave. The China Fund News reporter has conducted a review of the existing domestic VR companies, and the results are not optimistic.

At present, there are hundreds of startup companies focusing on VR in China, among which there are many new three-board listed companies. However, the development of these VR companies is quite different, and the profit model is not clear enough, which is quite a loss of money.

In addition, there may be only a few domestic VR hardware companies that can survive. But this is not the winter season, but the rough.

New three board VR company lost more than half

2016 is called the first year of VR. Investment bank Digi-Capital released a report that the global augmented reality and virtual reality market will reach 150 billion US dollars by 2020, while the domestic VR market will achieve 200% between 2015 and 2017. With a rapid growth of 300%, the market size in 2017 is expected to reach 2.16 billion yuan.

According to the statistics of the reporters, there are currently 23 companies in the new three-board market, mainly in the VR industry and in the VR concept. From the performance of the 23 companies in the first half of the year, the development of the VR industry seems to be less hot than its concept hype.

Judging from the first half of the annual report, there are 13 companies with net profit losses in the first half of the year. Among them, there are many companies that are immersive in the VR and many years of VR.
Deeply cultivated VR business for 9 years, is also the first high-tech company in the VR-related industry, Man Heng Digital. In the first half of this year, it achieved operating income of 40.39 million yuan, a year-on-year increase of 95.48%. Although the loss was reduced by 30.79% compared with the same period of last year, it still lost 7.11 million yuan. .

Known as the first stock of the new three-board virtual reality, the performance is not satisfactory. In the first half of this year, the company achieved operating income of 13.4 million yuan, down 62.43% year-on-year, net profit loss of 6.47 million yuan, and loss increased by 194.48%.

Another image of Tiger, which focuses on the digital visual experience, suffered a serious loss in the first half of the year, with a net profit loss of 5 million yuan and a 29.24% decrease in operating income compared to the same period last year.

Among the 23 companies, the most profitable in the first half of the year was Mengyun's softening. The company's operating income in the first half of the year was 75.218 million yuan, an increase of 983.45% over the same period of the previous year. The net profit was 31.269 million yuan, an increase of 17619% over the same period of last year. Another net profit of more than 10 million is from the medical training cross-border to the VR industry, Tianyi Technology, net profit of 15.90 million yuan, an increase of 176% over the same period last year.

It is worth noting that the remaining 8 companies with net profit of less than one million, totaling about 20 million, but not the profits of a company.

The business model is still unclear, and a large number of companies are facing elimination.

The domestic VR market has just started. After a wave of conceptual hype, how to survive in the first year and come up with competitive products is what companies need to think about.

From the perspective of hardware equipment and R&D, many domestic enterprises are still in the state of partial mode light technology, with single content and lack of innovation, which can be seen from the large number of VR glasses on the market.

Anxin Securities analyst Zhu Haibin pointed out that the hardware field of the domestic VR market is involved in the direction of VR display, VR glasses box and VR integrated machine, but more than 80% of the products are VR glasses boxes, with low technical content and low cost. With low barriers to entry, there are only a handful of manufacturers of VR monitors and VR all-in-one products with core technologies.

Companies have tried their best to develop products that fit the VR concept, but the profit model is still unclear.

For example, Mengyun Soft Move, the main reason for its large revenue increase is from the company's enhanced virtual game development, mobile Internet advertising and other services. For example, for the railway and subway institutions to do virtual reality solutions and get involved in VR's Tengshi letter, the first half of this year achieved a net profit of 820,000 yuan, an increase of 149%. However, the main reason for its net profit growth is that the mileage of high-speed rail operating lines has increased significantly, and the number of vehicle equipment has increased rapidly. Therefore, the number of personnel required for each station segment has increased rapidly, and the training pressure has increased rapidly.

Investors are also cautious about investing in companies involved in VR-related fields. A person engaged in the investment in the New Third Board told reporters that VR has only just heated up in the past two years, but from the current profit model, to the technical level, to the user experience, it is still not clear, mostly staying in the concept. “Before I have contacted some companies that claim to be VR, they often don’t see the actual product and have no technical content,” he said.

A media consulted a report that it is expected that a large number of hardware entrepreneurial enterprises will be eliminated in the second half of this year, and many enterprises will also cut from the content side to the content output.

In this regard, BOC International analyst Tian Shixin pointed out that VR hardware performance will be broken in 1~2 years, industry standards and ecological platform will be born, but mainly led by overseas hardware giants. However, domestic entrepreneurial small and medium-sized enterprises have insufficient competitiveness in hardware development technology. The investment in the project has led to a cottage, and the phenomenon of pseudo-concepts and speculation is serious. Domestic VR hardware will face a major reshuffle in the industry, and it has survived after a round of elimination in 2015. There may be only a few of the fifty or sixty hardware companies that will eventually survive.

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