Investor Conference - Brogent Technologies Inc.
News ArchivesDecember 16, 2022
Brogent Technologies Inc. (Stock code: 5263), a leader in flying theater and immersive ride systems, held an investor conference today (12/16). The Chairman, Chih-Hung Ouyang explained that 2023 will be the first year when the revenue of the Company will start to rise in the next three years.
According to the demand side from the global entertainment industry, demand from customers in Europe, the US, and Asia has returned to pre-epidemic levels, both new and existing projects are in progress. In China, customers have started to prepare for next year's May 1st holiday as pandemic restrictions have been lifted, the project completion dates are being confirmed. Brogent expects the revenue will be growing again in the first half of 2023 based on the new orders and orders that have been pending for two years during the pandemic. The second half of the year will see even stronger growth due to China lifting the restriction from pandemic. Orders on hand will reach record highs throughout the year, and 2023 will be the first year that revenue will start to grow, and this growth is expected to continue all the way to 2024 and 2025.
From the supply side, the inventory adjustment of the supply chain from the world technology industry is beneficial for Brogent to obtain parts and components that are available at a reasonable price, and with the smooth global shipping, Brogent will create a good supply chain environment. The Company also has the ability to negotiate with leading manufacturers, which will help Brogent to ship and optimize the cost structure, which will improve the revenue and the profitability in the long run.
Based on Brogent's leading position in flying theater for many years and having built up a total of 62 diverse and in-service entertainment systems worldwide, Brogent continues to build up its research and development capabilities, launching new systems including the new 8K 3D LED Dome Flying Theater and 4K LED Immersive Simulation Cockpit. With high operational efficiency and flexibility, Brogent's exclusive immersive ride will replace the conventional large mechanical rides and become the standard feature in every amusement park in the future. Therefore, Brogent will continue to increase its penetration rate in the market, that’s up to 4,000 amusement parks worldwide, and provide sustainable and long-term business opportunities for the Company.
Apart from the system hardware, Brogent also continues to expand its digital media database and cooperate with Kodansha Ltd. to introduce the popular animation content. The Company offers one-stop service to the global entertainment industry by integrating hardware and software, providing after-sales service and more operating sites. According to Chih-Hung Ouyang, the Company has established long-term relationships with global entertainment providers, including Viad (USA) and Merlin Entertainment Group (UK), whose flying theater brands, FlyOver and LEGOLAND, are both popular entertainment rides. Brogent not only helps its clients to win the hearts of tourists with highly immersive entertainment experiences but also generates steady cash flow for them in the long run.
In the future, Chih-Hung Ouyang said that the Company is ready for the opportunity for large-scale entertainment system replacement as the world is lifting all the pandemic restrictions and bringing about a U-shaped recovery in the leisure tourism industry. In the next decade, Mr. Ouyang expects the Company to achieve "corner overtaking" through continuous research and development, technology leadership and diversified business models. The goal is to increase the group's revenue to NT$10 billion worldwide as a top rated entertainment system supplier.
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