Leyard's performance picks up in the first half of 2025: profits surge, overseas revenue exceeds domestic revenue for the first time, Micro LED and AI strategies are two-wheel drive

Recently, Leyard Optoelectronics Co., Ltd. (stock code: 300296, securities abbreviation: Leyard) held an investor relations event in the form of a conference call. The company’s chairman and general manager Li Jun, board secretary and deputy general manager Liu Yang, and financial director Zhang Xiaoxue attended and had in-depth exchanges with dozens of institutional investors such as CICC, Guosen Securities, Universal Fund, and Sequoia China. Highlights of the results for the first half of 2025, and disclosed core progress such as technological innovation, overseas layout and AI strategy.

Performance recovery: from “scale expansion” to “value creation”

Faced with the overall adjustment pressure of the LED industry, Leyard achieved remarkable operating results in the first half of the year through in-depth optimization of market layout, marketing channels and personnel structure. According to reports, the company's operating indicators have shown a positive change since the first quarter, with half-year profits returning to normal levels and cash flow increasing significantly year-on-year. The core driving force comes from the shift in strategic focus from "scale expansion" "Value creation" and fully implement the high-quality development concept of "aiming for profit, striving for strength rather than bigness"

Li Jun said in the exchange that the LED industry is currently in a recovery stage, and its business is gradually converging on leading companies with a solid foundation. Leyard has laid a solid foundation for long-term development through early adjustments and will continue to do so in the future. It is expected to unleash greater growth potential during the industry recovery cycle.

Technology leadership: Micro LED orders increased by more than 40%, and Hi-Micro technology was put into production to open up new space

As a technology pioneer in the field of LED display, Leyard continued to make breakthroughs in the field of innovation in the first half of the year. Data shows that the company’s new Micro LED orders exceeded 600 million yuan, a year-on-year increase of more than 40%, becoming an important achievement of the technology layout. What's more noteworthy is that the company's original "High-end MIP (Hi-Micro)" technology has been officially put into production. This technology uses substrate-less Micro chips with a short side of less than 30μm, which significantly improves the display effect and can be adapted to AM drivers, glass substrates, etc. New display technology can not only meet the needs of commercial scenarios, but also open up space for the high-end home display market.

From the first domestic LED full-color display product and original LED small-pitch technology to the first to promote Micro LED in 2020, and then to the implementation of Hi-Micro technology this time, Leyard continues to lead the industry's development direction with technological innovation.

Management upgrade: digitalization + automation, Changsha Intelligent Industrial Park will be put into operation at the end of the year

Internal management In terms of management optimization, Leyard accelerated the transformation of corporate digitalization and production automation in the first half of the year. In the field of digitalization, the company has collaboratively optimized the SRM system, upgraded the CRM system, and successfully verified the MES/WMS/QMS/MDC demonstration line, significantly optimizing business processes and improving operational efficiency; in the field of production automation, the Changsha LED Industrial Park is expected to be fully completed and put into operation by the end of 2025. The industrial park integrates the industrial Internet and automation equipment, deepens the application of new generation information technology and artificial intelligence, and will achieve digital upgrades in production, manufacturing and warehousing. It is expected to become an industry-leading intelligent industrial base after completion.

At the same time, group management resolutely implements the concept of "profit first" and optimizes resource allocation through "shutdown and transfer" to further reduce costs and increase efficiency.

Overseas breakthrough: revenue share exceeded domestic market for the first time, North American orders increased by 50%, highlighting global advantages

In the first half of 2025, Leyard's overseas business ushered in a milestone breakthrough - the proportion of overseas display revenue exceeded domestic sales for the first time, reaching more than 50%, of which North American market orders increased by 50% year-on-year. This achievement is due to the company's differentiated overseas layout strategy: 90% of the overseas team is local employees, which can quickly respond to market changes and meet customer needs; in terms of production capacity layout, in addition to the already operating factory in Slovakia, the construction of the Saudi factory is accelerating to further improve the global production capacity network.

It is worth mentioning that due to early forward-looking By deploying overseas factories, Leyard was less affected by the tariff war, providing a stable guarantee for the continued growth of overseas business. Li Jun revealed that in the future, the company will not only promote the display business to "go global", but also accelerate the pace of going overseas for cultural tourism, night travel and AI businesses, with the goal of gradually increasing the proportion of overall overseas revenue to more than 50%.

AI strategy: The results of 8 years of intensive cultivation are revealed, and multiple scenarios have been implemented + new products will be launched soon

Leyard's layout in the AI field can be traced back to the acquisition of NP Company in 2017. After nearly 8 years, After years of intensive cultivation, the revenue of the AI and spatial computing segment in the first half of 2025 has reached 148 million yuan. At present, the company has built a comprehensive and leading technical capability matrix. In addition to core In addition to Optitrack optical capture technology, it has also added cutting-edge technologies such as Lydia action large model, LydCap markerless point capture, "optical + markerless" and "optical + inertia" fusion through self-research and cooperation, which can provide customized solutions for different customer needs.

In terms of application scenarios, this technology has extended from traditional film and television shooting and game production to the fields of medical rehabilitation and sports teaching. In the past two years, it has rapidly landed in the field of embodied intelligence - the company has reached cooperation with head robot companies such as Yushu, Galaxy General, Titanium Tiger, and Songyan Dynamics, and will launch the technology in August 2025. At the World Humanoid Robot Games in September, our subsidiary Virtual Point provided support services, helping our partner robots win multiple championships and runner-ups. In addition, NP Company has also established long-term cooperation with the R1-level Engineering Research Institute of Oregon State University, relying on the "Huang Renxun and his wife Collaborative Innovation Comprehensive Center", Jointly conduct research and development in fields such as robotics, VR/AR, and biomechanics to build a talent pool and shorten the research and development cycle.

In the advancement of the "AI+" strategy, Leyard is deeply integrating AI technology into the entire business chain: on the internal management and product design side, AI empowers office intelligence and improves work efficiency; on the display industry side, it leads smart service platforms, LED conference all-in-one machines, digital people and other products to achieve intelligent upgrades; on the cultural and tourism business side, AI Improve efficiency and innovate interactive models in the entire process of project concept setting, creative design, and film production; on the consumer electronics side, the holographic MINI AI interactive toy, which was premiered in the world at the ChinaJoy exhibition in August, has been pre-ordered by interested customers. The AR glasses have achieved a double breakthrough of "optical waveguide display technology + AI large model" and are expected to be officially launched in October 2025.

Responding to investors' concerns: The impact of tariffs is small, channel adjustment is long-term

In response to the hot issues that investors are concerned about, Leyard management responded one by one:

The impact of the tariff war: Since the Slovak factory has been established in Europe in 2016, most products in the North American market are shipped through this factory, so the company is limited by the impact of the tariff war; growth in the second quarter mainly relies on demand from the North American market, and the growth of the domestic market is relatively flat due to the compression of channel space.

Hi-Micro technical advantages: As an original technology, Hi-Micro's core competitiveness lies in the application of substrate-less Micro chips. It not only has better display effects, but is also compatible with new technologies such as AM drivers and glass substrates, expanding commercial and high-end home scenarios.

Domestic channel adjustment: Facing the "involution" of the industry, the company reduced channel levels and pure hardware wholesale business, pushing channel partners to shift from "simply shipping" to "providing solutions and services" and upgrading to regional service providers. Although it may cause performance fluctuations in the short term, it is a "necessary pain" for long-term stable development.

2025 is the 30th anniversary of Leyard. Li Jun said that the company will continue to delve into the display field, seize the opportunities of Micro LED and new application scenarios, optimize the layout of the cultural tourism night tour business, and deepen the integration of cutting-edge industries such as AI and robotics. With a closed-loop ecosystem of "hardware + algorithm + data", it will promote high-quality development and achieve the long-term goal of "steady and long-term development".