Zhaochi Co., Ltd.'s 2025 quarterly report was released, and its multi-business layout showed resilie

On the evening of April 24, Zhaochi (002429) officially disclosed its first quarter report for 2025. During the reporting period, the company achieved operating income of 3.723 billion yuan, and net profit attributable to shareholders of listed companies reached 335 million yuan. In a complex macro environment where the pace of global economic recovery is slowing down, trade protectionism continues to rise, and tariff barriers are intensifying, Zhaochi shares are facing severe challenges in operation and market development. However, relying on its forward-looking strategic layout, the company actively responded, vigorously promoted industrial upgrading by deepening its globalization strategy, and continued to improve its ability to resist risks and growth resilience.

Focusing on industrial upgrading and creating a diversified growth curve,

Zhaochi has successfully built a business pattern with coordinated development of smart terminal business, LED industry chain, and optical communication industry chain. Among them, the LED industry chain, as the second growth pole that the company focuses on cultivating, will perform well in 2024, with annual revenue reaching 5.330 billion yuan, a record high.
In the highly competitive LED industry, Zhaochi shares stand out with its vertically integrated scale advantages and leading technology. In the chip sector, monthly production and sales reach 1.1 million chips (4-inch chips), ranking first in the world, and Mini RGB chips account for more than 50% of the market share; in the field of LED packaging, Zhaochi is the core supplier of first-line terminal brands at home and abroad. It is also the world's largest manufacturer of Mini COB backlight modules; in the COB direct display sector, Zhaochi also ranks first, with annual shipments exceeding 50% of the industry's total in 2024.
Whether each link operates independently or the entire industry chain works in a coordinated manner, Zhaochi's LED industry has demonstrated strong hard power and technological advantages. From chip R & D and manufacturing, packaging process optimization to display application innovation, profound technological accumulation in each link and strong market competitiveness have jointly created the company's solid ecosystem in the LED field.
At present, the Mini LED industry is developing rapidly. With its strong competitiveness on this track, Zhaochi is expected to fully enjoy the dividends of industry development. As the LED industry continues to advance, the company's business structure will continue to be optimized, further promoting the revenue structure to a high-end.
At the same time, Zhaochi Co., Ltd. is actively entering the field of optical communications. As a new force in the industry"", it has initially established a layout of the entire industrial chain from optical chips, optical devices to optical modules. In terms of optical chip planning, the company plans to officially launch its first product this year, and gradually promote production capacity improvement and technology iteration; in terms of optical modules, BOSA devices used in optical access networks have been shipped in large quantities, and in the telecommunications field, optical devices and modules below 100G and 100GLX have also been supplied to the market in batches. In addition, the company closely follows the demand for AI computing power and is fully committed to developing 400G and 800G high-speed optical devices and modules.

Promote the globalization strategy and upgrade the smart terminal

business As a traditional advantageous business of Zhaochi, the TV ODM business ranks among the best in the industry. According to Dixian data, the shipments of Zhaochi shares in the first quarter of this year were approximately 2.3M, a year-on-year increase of nearly 10%. Looking to the future, Zhaochi will continue to consolidate and enhance the competitiveness of its smart display terminal business by implementing the three-in-one strategy of global layout, product upgrades, and intelligent manufacturing upgrades.

1. Supply chain + production + market, all-round global layout: At the supply chain level, Zhaochi has built a global supply chain system to ensure stable supply of raw materials; in the production process, in addition to the manufacturing base in Vietnam, the company has laid out manufacturing bases in China and regions around the world through independent construction or cooperation, which can not only meet market localization needs, but also comply with global strategies; In terms of the market, the company's customer base is spread all over the world. In the future, it will rely on technical strength and brand influence to increase market development efforts in China, Europe, Southeast Asia, and countries and regions along the Belt and Road Initiative, provide global customers with cost-effective products and solutions, and further consolidate its leading position in the field of intelligent terminals.
2. Product side: Horizontal and horizontal expansion to achieve comprehensive upgrades: In terms of product strategy, Zhaochi shares adopts dual engine drives to expand categories horizontally and improve performance vertically. Based on the advantages of TV ODM business, the company actively promotes the horizontal expansion of the product matrix to achieve large-scale production of more categories of terminal products; at the same time, it closely tracks the development trend of Mini LED backlight technology, gradually expands the shipment scale of Mini LED TVs, and accelerates smart terminal products. Transform to AI terminal products and strive to build the next generation smart terminal industry ecosystem.
3. Intelligent manufacturing upgrade: reshaping production efficiency and moving towards a new era of intelligence: Zhaochi is a pioneer in the integration of modernization and intelligent manufacturing in the consumer electronics industry. In Shenzhen, the company was the first to be evaluated and certified by China Electronics Technology Standardization Institute and reached the three-level standard of "Intelligent Manufacturing Capability Maturity." Its subsidiary Zhaochi Semiconductor was awarded the three-star enterprise certification of digital transformation maturity. Zhaochi Guangyuan also successfully passed the three-level evaluation of intelligent manufacturing capability maturity. Zhaochi Co., Ltd. has formed core competitiveness in the field of intelligent manufacturing of agile response, high-quality and efficient, and on-time delivery. In the future, the company will continue to deepen the application of intelligent manufacturing technology, comprehensively promote the integration of industrial robots into all aspects of production, realize an all-round transformation from traditional manufacturing to intelligent production, further improve production efficiency and product quality, and help the intelligent terminal business move towards a higher level of intelligence. The stage is moving forward.

Zhaochi Co., Ltd. has always adhered to the development concept of making decisions before moving forward, and moved forward steadily and prudently. In the context of the current uncertain living environment of enterprises, the resilience and ability of enterprises to travel through cycles are tested. With continuous innovation in the smart terminal business, steady advancement of the globalization strategy, and forward-looking layout in the LED industry chain and optical communications, Zhaochi has accurately positioned itself in the face of global economic uncertainty. Looking to the future, with the full advent of the Mini LED era and the continuous expansion of optical communications business, Zhaochi is expected to emerge in the wave of competition from global high-tech companies, build a solid risk resistance barrier, and build a world's leading high-tech industry platform.