Decoding of Zhaochi's 2025 Q1 financial report: The road to industrial breakthrough driven by multi-

On the evening of April 24, Zhaochi Co., Ltd. released its first-quarter 2025 financial report and delivered an outstanding report card: during the reporting period, it achieved operating income of 3.723 billion yuan, and net profit attributable to shareholders of listed companies reached 335 million yuan. In the complex situation of weak global economic recovery, rising trade protectionism, and intensified tariff barriers, this performance demonstrates the company's strong operating resilience. Faced with severe challenges, Zhaochi is taking the strategy of deepening globalization as the anchor point, accelerating industrial upgrading, and comprehensively improving its ability to resist risks and sustainable growth momentum.

Three-pole drive to build a new industrial ecosystem At present

, Zhaochi has formed a troika pattern of coordinated development of smart terminal business, LED industry chain, and optical communication industry chain. Among them, the LED industry chain, which is the second growth pole, will achieve revenue of 5.330 billion yuan in 2024, a record high. In-depth analysis of its layout in the LED field, Zhaochi Co., Ltd. has successfully built an industry-leading competitive barrier based on its vertical integration advantages and technological innovation capabilities.
In the chip manufacturing sector, Zhaochi has shown strong strength, with a monthly production capacity (4-inch chips) reaching 1.1 million chips, ranking first in the world, and the market share of Mini RGB chips exceeds 50%. In the field of LED packaging, the company has become a core supplier of first-line terminal brands at home and abroad. At the same time, as the world's largest manufacturer of Mini COB backlight modules, its technology and production capacity advantages are significant. In the COB direct display market, Zhaochi shares also occupy a dominant position. In 2024, COB panel shipments will account for more than 50% of the industry's total.
From chip research and development to packaging and manufacturing, to terminal display applications, all aspects have developed in a coordinated manner, forming a complete and highly competitive industrial ecosystem.
With the accelerated popularization of Mini LED technology, Zhaochi Co., Ltd. is expected to fully benefit from the dividends of industry development with its deep accumulation in this field. The continued growth of the LED industry chain will not only promote the optimization of the company's business structure, but will also inject strong impetus into revenue growth.
At the same time, Zhaochi Co., Ltd. is actively exploring new tracks for optical communications. As a new force in the industry, the company has initially completed the layout of the entire industry chain from optical chips, optical devices to optical modules. In the field of optical chips, it is planned to launch the first product within the year, and gradually promote production capacity improvement and technology iteration; in terms of the optical module business, BOSA devices of the optical access network have achieved mass shipments, and optical devices and modules with speeds of 100G and below in the telecommunications field have also entered the batch supply stage. At the same time, the research and development of 400G and 800G high-speed optical devices and modules is being stepped up to meet market demand brought by the explosion of AI computing power.

Globally, Zhiqi Terminal's new future

intelligent terminal business, as a traditional advantageous area of Zhaochi, has always maintained a leading position in the industry. Dixian data shows that in the first quarter of 2025, the company's TV ODM shipments were approximately 2.3 million units, a year-on-year increase of nearly 10%. In order to further consolidate its market advantages, Zhaochi is implementing a three-in-one development strategy of global layout, product upgrade, and intelligent manufacturing upgrade.
In terms of the implementation of the globalization strategy, the company has carried out all-round layout from supply chain, manufacturing to market expansion. On the supply chain, a global supply network shall be established to ensure stable supply of raw materials; At the production end, in addition to the manufacturing base in Vietnam, production bases shall be arranged in many places around the world through self-construction or cooperation mode, which can not only meet the localization demand, but also realize global capacity allocation; At the market level, customer groups are spread all over the world. In the future, we will focus on exploring the markets along China, Europe, Southeast Asia and the Belt and Road Initiative, and provide global customers with cost-effective products and solutions by virtue of technology and brand advantages.
In terms of product upgrades, Zhaochi shares adopted a two-wheel drive strategy of" horizontally expanding categories and vertically improving performance". On the basis of consolidating the advantages of TV ODM business, we will continue to expand the categories of terminal products and achieve diversified development. At the same time, we will closely follow the development trend of Mini LED backlight technology, expand the shipment scale of Mini LED TVs, actively promote the transformation of smart terminals to AI terminals, and build a new ecosystem for the smart terminal industry.
In the field of intelligent manufacturing, Zhaochi shares can be regarded as an industry benchmark. The company took the lead in passing the evaluation of China Electronics Technology Standardization Institute and reached the three-level standard of "Intelligent Manufacturing Capability Maturity." Its Zhaochi Semiconductor won the three-star enterprise certification of digital transformation maturity, and Zhaochi Guangyuan also passed the three-level evaluation of intelligent manufacturing capability maturity. In the future, the company will continue to deepen the application of intelligent manufacturing technology, promote the full integration of industrial robots into production processes, achieve the leap from traditional manufacturing to intelligent production, and further improve production efficiency and product quality.

Moving forward steadily and anchoring the new blueprint for the future

Zhaochi shares always adhere to the development concept of planning and then moving, operate steadily, and innovate pragmatically. In the current market environment full of uncertainty, the company has successfully positioned itself in complex situations with continuous innovation in its smart terminal business, steady advancement of its globalization strategy, and forward-looking layout in the LED industry chain and optical communications field.
Looking to the future, with the widespread application of Mini LED technology and the continuous expansion of optical communication business, Zhaochi is expected to stand out in the global high-tech competition, build a solid anti-risk barrier, and gradually develop into a high-tech industry with global influence. platform.