Brocade Information September Revenue Hits NT$293 Million on Hardware Growth

Zhiwei Information (stock code: XXX) recently announced that its September revenue reached approximately NT$293 million, representing a 25% year-over-year increase, with a year-over-year growth rate of 1.25 times. Although revenue declined by 16.2% month-over-month, the company attributed this drop primarily to the natural off-season following the end of the peak season for Flyover, its acquired immersive flight theater brand. This figure not only demonstrates Zhiwei’s steady growth in the motion-sensing equipment market but also validates the long-term benefits of its acquisition strategy.

Zhiwei acquired Flyover in 2022 for approximately NT$500 million, aiming to combine high-end immersive experiences with smart hardware to create a new entertainment model of "virtual and physical fusion." Since the acquisition, Flyover has established multiple motion-sensing theaters in Taipei, Taichung, and Tainan, and has partnered with several game developers to launch interactive theater productions centered on VR/AR technology. These theaters have attracted a large number of gamers and have also become new platforms for corporate team building, brand marketing, and educational training, providing Zhiwei with diversified revenue streams.

In terms of revenue composition, sales of motion-sensing hardware remain the primary driver, accounting for approximately 60% of total revenue. Ticket sales and merchandise from Flyover theaters contribute about 30%, while the remaining 10% comes from cloud services and software licensing. The September revenue decline was mainly driven by lower ticket income at Flyover theaters, as the summer peak season had passed, leading to a natural decrease in audience numbers. The company stated that it will boost off-season traffic and revenue through festive events, IP collaborations, and seasonal promotions.

From an industry perspective, the global motion-sensing entertainment market is in a phase of rapid growth. According to a report by market research firm IDC, the global VR/AR entertainment market size is expected to surpass US$20 billion in 2025, with a compound annual growth rate of approximately 15%. As a regional hub for technological innovation, Taiwan possesses mature hardware R&D capabilities and a high-quality workforce. The combination of Zhiwei and Flyover has effectively capitalized on the win-win opportunity of "motion-sensing plus content." In contrast, competitors such as HTC and Lenovo, while holding a certain share in the hardware sector, remain relatively weak in content creation and scene operations.

Looking ahead, Zhiwei has launched the second phase of its acquisition plan, intending to bring on board another U.S. startup specializing in immersive theater technology by the end of this year to further expand its content creation capabilities. The company’s finance department also noted that although short-term revenue is affected by seasonal fluctuations, the long-term brand effect and customer stickiness of Flyover are expected to continue improving. Revenue is projected to exceed NT$400 million in 2026, with gross margins expected to rise to 35%. If technical integration and market expansion proceed smoothly, Zhiwei is poised to become a leader in both motion-sensing entertainment and hardware in Taiwan and the broader Asia-Pacific region.

(Source: CNA)