Core Viewpoint - The company is facing significant challenges in Q1 2025, including a decline in global consumer demand, increased trade policy uncertainty, and intensified industry competition, leading to a reported loss. The company is implementing systematic measures to improve operational efficiency and profitability [1][6]. Performance Disclosure Highlights - In Q1 2025, the company reported a substantial decline in performance, primarily due to slow recovery in global consumer demand, increased trade policy uncertainty, and intensified competition, resulting in a loss. The company is focusing on enhancing operational efficiency and profitability through supply chain adjustments and price transmission to mitigate tariff risks [1][6]. R&D Investment Plan - The company plans to invest 1.315 billion yuan in R&D in 2024, focusing on three core areas: new display technologies (40%), AI and intelligent functions (30%), and smart manufacturing upgrades (20%). Additionally, 10% of the investment will be allocated to emerging application scenarios [2][6]. Response to Tariff Impact - In 2024, approximately 20% of the company's revenue will come from North America. To mitigate the impact of tariff policies, the company is dynamically adjusting production between domestic and overseas factories, particularly increasing capacity in Mexico and Thailand based on existing orders and customer demand [3][6]. Policy Benefits - The company's products are benefiting from trade-in and energy-saving subsidy policies, which are stimulating demand for new products, especially in the large-size and high-end segments (high-definition, gaming, OLED, MiniLED). The company is actively seizing market opportunities presented by these policies to convert them into long-term competitive advantages [4][6]. Business Layout - The company aims to solidify its market position in the display business while optimizing the product structure in the television segment. Both business areas will collaborate in technology R&D, market channels, and brand building to promote sustainable development in the display industry, unaffected by short-term revenue fluctuations [5][6].

Financial Performance - The company's net profit significantly decreased in 2024, with a loss reported in Q1 2025 due to slow global consumer demand recovery, increased trade policy uncertainty, and intensified industry competition [2] - In Q1 2025, the company faced a loss attributed to a decline in product prices and gross margin [2] - The company aims to achieve its annual profit target through cost reduction measures and adjustments in supply chain management [2] Research and Development - In 2024, the company invested approximately CNY 1.315 billion in R&D, focusing on three core areas: display technology innovation, AI integration, and smart manufacturing upgrades [2] - 40% of the R&D budget is allocated to new display technologies (OLED, Mini LED, Micro LED, and electronic paper), while 30% is directed towards AI and intelligent function development [2] Market Impact and Strategy - The company reported that approximately 20% of its revenue in 2024 came from North America, where it faces challenges due to increased tariffs [3] - The company is actively adjusting production capabilities in overseas factories (Mexico, Thailand) to mitigate tariff impacts and optimize supply chain efficiency [3] Product Development and Market Trends - The company is focusing on high-end and large-size display products, benefiting from government policies promoting upgrades and energy-saving subsidies [4] - The company has launched various electronic paper products and plans to increase R&D investment in this area to capture market opportunities [5] Competitive Positioning - The company maintains a strong competitive edge through scale efficiency, production capacity, R&D capabilities, brand strength, and distribution networks [10] - The company is committed to sustainable practices, with three of its six domestic manufacturing bases recognized as "green factories" [10] Future Outlook - The company plans to enhance its presence in emerging markets and high-margin sectors, such as commercial and professional display solutions [10] - The company is exploring strategic partnerships and investment opportunities to strengthen its market position while minimizing reliance on acquisitions [10]