Market worries and challenges under the aura of "intelligence" manufacturing of Zhaochi shares

Recently, the Jiangxi Province Department of Industry and Information Technology announced the list of advanced smart factories in Jiangxi Province in 2025. Both Jiangxi Province Zhaochi Optoelectronics Co., Ltd. and Jiangxi Zhaochi Semiconductor Co., Ltd., a subsidiary of Zhaochi, were selected, which is undoubtedly a strong affirmation of its achievements in the field of intelligent manufacturing. The LED packaging full-link digital intelligence collaborative intelligent factory built by Zhaochi Optoelectronics optimizes the entire process by integrating cutting-edge technologies, realizes multiple typical scenarios applications, builds a digital management and intelligent decision-making system, and greatly improves production efficiency and product quality; Zhaochi Semiconductor, as the world's largest digital intelligent compound semiconductor optoelectronic device LED chip production base, is at the forefront of the industry in the technical exploration and application of ten functional modules such as artificial intelligence control technology, and fully realizes intelligent business processes.

However, an in-depth examination of Zhaochi's market performance will reveal that it is facing a series of severe challenges behind its brilliant intelligent manufacturing achievements.

1. The dilemma of channel reform and the failure of the game between major customers Zhaochi Co., Ltd.'s recent move to cancel channels, as well as its defeat in the confrontation with major customers and ultimately chose to surrender, this incident exposed its weakness in terms of market voice. Major customers such as Haikang and Dahua are in a strong position in the industrial chain. They have huge procurement scales and extensive market influence, and have extremely high requirements for suppliers 'product prices, supply cycles, and product customization. In its cooperation with these major customers, Zhaochi failed to effectively balance its own interests and customer needs, lost its dominant position in the game, and was forced to accept cooperation terms that were not conducive to itself. This not only compresses its profit margin, but may also hinder its future product research and development investment and market expansion plans. For example, in order to meet the low-cost requirements of major customers, Zhaochi may have to cut the cost of some production links, which in turn affects product quality, or reduces R & D investment, resulting in lagging product innovation and weakening its own competitiveness in the market in the long run.

2. Dilution risk of intelligent manufacturing advantages under intensified industry competition Although Zhaochi has made significant progress in intelligent manufacturing, its advantages are not unshakable in the fiercely competitive LED and consumer electronics industries. Competitors represented by Zhou Ming and Liard have also invested heavily in intelligent production and technological innovation. With breakthroughs in the fields of Mini/Micro LED technology, AI + optical display integration, etc., Zhouming Technology has built an independent technology chain from hardware to software, content, and interactive ecology; Liard continues to innovate in LED display technology, virtual display, etc., and its products are widely used in various high-end scenarios. In this case, although Zhaochi's smart factory has improved internal production efficiency and product quality, in the face of all-round competition from competitors, if its intelligent manufacturing advantages cannot be effectively transformed into market share and profit growth, With the improvement of the overall intelligence level of the industry, its comparative advantages will gradually be diluted. For example, in the Mini LED backlight product market, although Zhaochi is actively expanding production capacity and optimizing solutions, competitors are also making simultaneous efforts. If Zhaochi cannot continue to lead in product performance, price, marketing, etc., it will be difficult to stand out in the fierce market competition.

3. Adapting challenges from changes in market demand and product structure adjustment

At present, the demand in the consumer electronics market is undergoing profound changes, and consumers 'demand for intelligent, personalized and high-end products is becoming increasingly prominent. In terms of smart terminal business, although Zhaochi Co., Ltd. has proposed strategies to expand categories horizontally and improve performance vertically, it faces many challenges in the actual implementation process. On the one hand, horizontally expanding new terminal product categories requires investing a large amount of R & D resources and market research costs, and establishing a complete supply chain system and sales channels in a short period of time. This is a huge test for Zhaochi's resource integration and operation capabilities. On the other hand, in terms of vertically improving product performance, how to accurately grasp the changing trend of market demand, focus R & D resources on the performance improvement points that consumers are really concerned about, and avoid deviations in the R & D direction is also an urgent issue to be solved. For example, with the trend of TV products developing towards intelligence, high-definition, and large size, if Zhaochi fails to adjust its product structure in time and launch new TV products that meet market demand, it may lead to backlog inventory and market share being eroded by competitors.

4. Potential risks of global layout and overseas market expansion Zhaochi implements a global layout strategy and builds manufacturing bases in Vietnam and other places. However, overseas market expansion has not been smooth sailing. From a macro perspective, the uncertainty of the global economic situation and the rise of trade protectionism may lead to increased tariffs and increased trade barriers, increase product export costs, and weaken product price competitiveness. At the micro level, different countries and regions have huge differences in culture, policies and regulations, and market demand. In terms of culture, product design, functional settings, etc. must comply with local cultural customs; in terms of policies and regulations, local environmental protection, safety and other standards must be met; in terms of market demand, consumers in different regions have different preferences for products. If Zhaochi fails to fully consider these factors during its overseas market expansion, it may face problems such as slow sales of products and compliance risks, which will affect the implementation effect of its global layout strategy.

Zhaochi's two factories have been awarded the title of Advanced Intelligent Factory, which is an important milestone in its development process. However, on the track of market competition, the hard power of intelligent manufacturing alone is far from enough. How to regain the initiative in the relationship between channels and major customers, consolidate the advantages of intelligent manufacturing in fierce competition, accurately adapt to changes in market demand, and successfully expand overseas markets will be many obstacles that Zhaochi must overcome to achieve sustainable development in the future.