LED industry and optical communication business will lead future growth, Zhaochi Co., Ltd. releases first quarter report for 2025

On the evening of April 24, Zhaochi Co., Ltd. released its first quarter report for 2025. The announcement shows that the company achieved operating income of 3.723 billion yuan in the first quarter of 2025 and a net profit of 335 million yuan attributable to shareholders of the listed company.

In fact, the current global economic recovery is slowing down, trade protectionism is rising, and tariff barriers are intensifying. The complex macro-environment brings more severe challenges to the daily operations and market development of enterprises. Against this background, Zhaochi will deepen its global strategic layout, promote industrial upgrading, and continue to improve the company's risk resistance and growth resilience.

Gathering and upgrading to forge the second and third growth curves

Zhaochi has now formed a trend of parallel development of the troika of smart terminal business, LED industry chain, and optical communication industry chain. Among them, the LED industry chain is the company's second growth pole, with a revenue of 5.330 billion in 2024, setting a new high in the past.

Looking at the LED industry, Zhaochi has successfully established its vertically integrated scale advantage and technological leadership in the industry.

Chip side: Production and sales are 1.1 million pieces/month (4-inch pieces), ranking first in the world; Mini RGB chip market share exceeds 50%.

LED packaging end: core supplier of first-tier terminal brands at home and abroad, and the world's largest manufacturer of Mini COB backlight modules.

COB direct display terminal: The world's largest COB panel manufacturer, its annual shipment volume in 2024 will exceed 50% of the COB direct display industry.

Whether viewed individually or collaboratively, Zhaochi's LED industry has demonstrated industry-leading hard power and technological advantages. From chips to packaging to display applications, each link has profound technological accumulation and market competitiveness, which together build a strong ecology of Zhaochi Technology in the LED field.

Currently, Mini LED is accelerating its development. With its strong competitiveness on the Mini LED track, Zhaochi is expected to fully benefit from the development dividends of the Mini LED industry. With the development of the LED industry, the company's business structure will continue to be optimized, thereby promoting the upgrading of the company's revenue structure.

While consolidating its advantages in the LED industry, Zhaochi is also actively exploring the field of optical communications. As a "newcomer" in the industry, Zhaochi has initially built a full industrial chain layout from optical chips, optical devices to optical modules.

Judging from the planning of optical chips, Zhaochi Co., Ltd. plans to officially launch its first product within this year and gradually implement production capacity ramping and technology upgrading strategies.

In terms of optical modules, Zhaochi's BOSA devices for optical access networks have been shipped in large quantities; optical devices and modules at 100G and 100GLX speeds used in the telecommunications field have been shipped in batches; the company is also actively developing 400G and 800G high-speed optical devices and modules to meet the demand for AI computing power.

Make every effort to promote the global intelligent terminal business to new heights

The intelligent terminal business is the traditional business of Zhaochi Co., Ltd. Among them, the TV ODM business ranks among the best in the industry. Dixian data shows that Zhaochi shares shipped approximately 2.3M shares in the first quarter, a year-on-year increase of nearly 10%. As for the future, Zhaochi will implement the three-in-one strategy of global layout, product upgrades, and intelligent manufacturing upgrades to consolidate and even increase the competitiveness of the company's intelligent display terminal business.

Supply chain + production + market all-round globalization

In terms of supply chain, the company has built a global supply chain system;

In terms of production, in addition to the manufacturing base in Vietnam, the company has deployed manufacturing bases in many countries and regions around the world through self-construction or cooperation, which can meet the market's demand for localization and globalization;

+In the market, the company's customer base covers the world. In the future, the company will also increase its market expansion in China, Europe, Southeast Asia, "Belt and Road" and other countries and regions based on its own technical strength and brand influence, provide global customers with cost-effective products and solutions, and further consolidate the company's leading position in the global intelligent terminal field.

+Product side: Vertical and horizontal layout, comprehensive upgrade

+In terms of products, Zhaochi Co., Ltd. is reshaping its business structure with a dual-engine strategy of "expanding categories horizontally and improving performance vertically". Relying on the basic advantages of the TV ODM business, the company will promote the horizontal extension of the product matrix and achieve large-scale production and manufacturing of more categories of terminal products.

+At the same time, Zhaochi will closely follow the development trend of Mini+LED backlight technology, gradually expand the shipment scale of Mini+LED TV sets, and actively promote the transformation of smart terminal products into AI terminal products to build a next-generation smart terminal industry ecosystem.

+Intelligent Manufacturing Upgrade: Reconstructing Production Efficiency

Zhaochi Technology is a pioneer in the integration of informatization and intelligent manufacturing in the consumer electronics industry. It was the first in Shenzhen to be evaluated and certified by the China Electronics Technology Standardization Institute to reach the Level 3 standard of "Intelligent Manufacturing Capability Maturity". Its subsidiary Zhaochi Semiconductor was awarded the three-star enterprise certification for digital transformation maturity, and Zhaochi Optoelectronics also passed the Level 3 assessment of intelligent manufacturing capability maturity.

In the field of "intelligent manufacturing", Zhaochi Technology has formed intelligent manufacturing competitiveness of "agile response, high quality and efficiency, and on-time delivery". In the future, Zhaochi Technology will continue to deepen the application of intelligent manufacturing technology, comprehensively promote the integration of industrial robots into all aspects of the production process, achieve a comprehensive transformation from traditional manufacturing to intelligent production, further improve production efficiency and product quality, and help the intelligent terminal business move to a higher level of intelligent development stage.

Zhaochi Co., Ltd. is an enterprise that "makes decisions before taking action". It is the consistent style of the enterprise to act steadily and not to make rash advances.

At present, there is great uncertainty in the survival environment of enterprises, which further tests the resilience of enterprises and their ability to survive cycles. With its continuous innovation in the smart terminal business and the steady advancement of its globalization strategy, as well as its layout in the LED industry chain and optical communications fields, Zhaochi Technology has successfully positioned itself amid the uncertainty of the global economy.

In the future, with the arrival of the Mini LED era and the continuous expansion of the company's optical communications business, Zhaochi is expected to stand out in the competition among global high-tech companies, build a moat to resist risks, and create a world-leading high-tech industry platform.