Zhaochi's 2024 annual report is eye-catching: LED industry has become a new engine of growth, and te

On April 17, Zhaochi Co., Ltd. officially released its 2024 annual report and delivered an eye-catching report card. The report shows that the company achieved annual revenue of 20.326 billion yuan, a year-on-year increase of 18.40%; net profit attributable to the parent reached 1.602 billion yuan, and non-net profit attributable to the parent also reached 1.585 billion yuan. Among them, the LED industry performed particularly well. In 2024, it achieved revenue of 5.330 billion yuan, a year-on-year increase of 18.34%, and revenue accounted for 26.22%, setting a record high. It has become the second growth pole for the company's steady development, and its importance is constantly improving.

More than ten years of deep cultivation have been carried out to build the core competitiveness of the LED industry

. Tracing the development history of Zhaochi Co., Ltd. since its establishment in 2005, it has successfully developed and mass-produced LCD TVs in 2007, officially entering the display field. After listing in 2010, in order to enhance its competitive advantage in the TV ODM business, the company decisively deployed upstream. In 2011, Shenzhen Zhaochi Energy-Saving Lighting Co., Ltd.(later renamed Jiangxi Zhaochi Guangyuan Technology Co., Ltd., referred to as Zhaochi Guangyuan) was established. With the LED packaging business as the entry point, it officially entered the LED industry.
This strategic layout has achieved remarkable results. On the one hand, the LED packaging business has provided strong support for the TV ODM business. In the second half of 2011, Zhaochi Co., Ltd. achieved full self-sufficiency in TV backlights, effectively reducing production costs and improving the stability of the supply chain; on the other hand, the company took advantage of the trend. The lighting backlight business has taken advantage of the rapid development of the LED lighting industry. Since then, Zhaochi Co., Ltd. has successively deployed Zhaochi Semiconductor and Zhaochi Crystal Display, gradually building a complete LED vertical industrial chain. Today, the LED industry has become an important part of Zhaochi's revenue and profits, and it has also established itself in the industry with its scale advantage of vertical integration and leading technical level.

Breakthroughs in COB packaging technology, opening up a new track for Mini LED

In 2024, a key breakthrough for Zhaochi in the LED industry is to successfully open up the two core tracks of Mini LED direct display and backlight with COB packaging technology, further consolidating its market position in the Mini LED era.

COB Direct Display: Innovation leads and seizes market opportunities

In 2021, Zhaochi Co., Ltd. focused on COB packaging technology and established Zhaochi Crystal Display. Through a series of innovative measures, it has overcome COB technical problems and formed strong core competitiveness. In response to the pain points of the two major industries: low direct yield and consistent display effects, Zhaochi Crystal Display integrates technology, equipment and production processes, collaborates with the supply chain, and innovates massive transfer technologies. Among them, the first three-in-one motherboard design (HUB board + signal receiving board + power supply board) has achieved remarkable results in the field of COB direct display. It not only greatly improves production yield and efficiency, but also reduces costs. It has been widely recognized by the market and promoted quickly. At the same time, Zhaochi Crystal Display continues to promote the iteration of virtual pixel technology, and the three-lamp and four-lamp virtual pixel solutions have been mass-produced and shipped in batches.
In terms of production capacity and market expansion, as of the end of 2024, the monthly production capacity of Zhaochi Crystal Display COB has reached 25,000 square meters (based on P1.25). The eight core product lines cover the full spacing range of P0.5 - P2.0, and P0.9 - P1.5 are the main products. In 2024, the LED all-in-one machine launched by Zhaochi Semiconductor has successfully entered the C-end markets such as home theaters and commercial displays. COB display modules have been recognized by major international customers and achieved large-scale shipments.

Mini LED Backlight: Technology upgrades accelerate market penetration

With global Mini LED TV shipments reaching 8.2 million units in 2024, the penetration rate has surpassed that of OLED TVs for the first time. The flip-chip COB packaging process is expected to become a mainstream solution with its high cost performance advantage. Zhaochi Guangyuan, a subsidiary of Zhaochi Co., Ltd., focuses on upgrading in three dimensions: technology, products and production capacity, and has performed brilliantly in the market.
In terms of production capacity and technology, Zhaochi Guangyuan will add 45 COB wires in 2024, with a total of 50 COB wires in total, aiming directly at the world's largest Mini COB backlight module manufacturer. Technically, M-shaped dispensing technology optimizes optical design, reduces halos and improves production efficiency. The OP value has been increased from 1:2.2 to 1:3.5, reaching the industry-leading level.
In terms of products and market applications, Zhaochi Light has launched high-power COB white light strips, Mini COB blue light strips and Mini COB white light solutions (CSP) to meet different customer needs. At present, its Mini COB products have won the favor and application of TV brands such as Samsung, Sony, Skyworth, Sharp, and Konka, as well as display brands such as Titan Corps, which has effectively promoted the market penetration of Mini COB backlight solutions.

Deepen collaboration and strengthen industrial advantages

In 2025, Zhaochi will further strengthen internal coordination among the group and implement an integrated operation strategy of intelligent terminal display. Through technical collaboration and market complementarity, we will strengthen the linkage between COB direct display business, Mini COB backlight technology and TV business to achieve mutual empowerment of multiple business segments and enhance overall competitiveness.

Based on optical technology, we will develop a new blueprint for the industry

. In the 2024 annual report, Zhaochi Co., Ltd. clearly stated that it will expand industrial clusters with optical technology as the core and comprehensively deploy the compound semiconductor industry chain. As the root business, Zhaochi Semiconductor continues to increase the layout of independent intellectual property rights based on compound semiconductor underlying materials and chip technology. As of the end of 2024, it has applied for more than 1,000 patents. From 2021 to 2023, it took just three years to complete the equivalent of ten years of technological inventions, and won the fifth place among the top 50 National Specialized, Special and New Little Giant Enterprises Innovation Enterprises in 2022.
Relying on its technological advantages in the LED field, Zhaochi Semiconductor is actively exploring the field of optical communications. Since the sapphire technology, the main substrate of LED chips, is homologous to compound semiconductor processes such as GaAs, SiC, and GaN, Zhaochi Semiconductor will follow the principles of technical homology and coverability of full spectrum technology, and will operate in smart terminals, LED industry chains, and optical communications industry chains. In addition, explore more compound industry chains, push the company to move towards higher technological attributes, and inject strong impetus into long-term development.