Alto Electronics receives 220 million LED display orders from Xinhua News Agency subsidiary

After two trading days of suspension, Alto Electronics (002587) issued a resumption announcement and sent a huge surprise to investors. The company announced that its LED display product business has expanded its territory and successfully held a subsidiary of Xinhua News Agency.

According to the announcement, as early as November 12, Alto Electronics signed the "Outdoor LED Full Color Screen and Advertising Release System Customization Contract" with China Xinhua TV Holdings Co., Ltd. (hereinafter referred to as China Xinhua TV), which is marked as outdoor LED full color screen. And a set of network control platform software.

China Xinhua TV has promised to purchase 200 outdoor LED full-color screens from Alto Electronics. The area of ​​each display screen is based on the size determined by the site design and installation. The unit price is 15,000 yuan/m2, while the software cost of the network control platform is 1 million yuan. The purchase period of 200 full-color screens is 12 months.

At the same time, Alto Electronics said that the contract will open up the company's LED display products business, but because each display area is determined by the size of the site design and installation, the company estimates the total contract amount of 1.6 to 220 million yuan, accounting for The proportion of total operating income in 2011 was 69.51%~95.58%, so it has a greater impact on its future performance.

Compared with Alto Electronics, which had a revenue of only 230 million yuan last year, the signing of the above contract has saved the "food" for the life of the coming year. It is worth noting that the contractual counterparty is a subsidiary of Xinhua News Agency, which is strong and has good performance capability.

According to the information, China Xinhua TV (08356, HK) is a listed company of the Hong Kong Stock Exchange. Its main shareholder is China Xinhua News Network Co., Ltd. In fact, China Xinhua News Network Co., Ltd. is a company incorporated in Hong Kong, China and a wholly-owned subsidiary of Xinhua News Agency.

The reporter noted that Alto Electronics is not the first LED listed company to enter the Xinhua News Agency business. As early as December 22 last year, Qinshang Optoelectronics (002638), which had not yet reached the full moon in the capital market, won an order of up to 1.5 billion yuan.

At that time, Qinshang Optoelectronics and Guangzhou Ji Cai Culture Communication Co., Ltd. (hereinafter referred to as Ji Cai Company) had a five-year display purchase order, and the purchased display screens were used to implement the “Xinhua Frequency Media Display Project” (hereinafter referred to as Xinhua Media). According to the announcement, Xinhua Media is a strategically important project implemented by Xinhua News Agency in accordance with the requirements of the State Council to meet the needs of domestic and international development in the new media field. It is planned to complete Guangzhou, Shenzhen and other provinces within Guangdong Province in five years. The outdoor large-scale LED information dissemination network resources in the prefecture-level urban area are integrated to realize one network in the province.

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