Core Viewpoint - Shenzhen Kola Intelligent Display Co., Ltd. has successfully acquired a land parcel in Longhua District for 28.5 million yuan to establish a smart manufacturing R&D base for flexible OLED and Mini LED display modules, with an expected annual output value of 6 billion yuan once operational [2][4]. Group 1: Project Details - The project will cover an area of approximately 1.5 hectares, with a planned construction area of about 75,000 square meters, including a factory area of 65,000 square meters and supporting facilities of around 10,000 square meters [4]. - Construction is required to commence within 1.5 years and be fully operational within 3.5 years, with an investment intensity of no less than 42.4 million yuan per hectare and a minimum output of 89 million yuan per hectare in the first year of production [5]. Group 2: Company Background - Kola Intelligent focuses on the consumer and professional display markets for mobile smart terminals, with applications in access control, communication, medical devices, home appliances, and wearable smart devices [5]. - The company is a subsidiary of Shenzhen Kola Electronics Co., Ltd., which specializes in the R&D, manufacturing, and sales of LCD display modules and smart display terminals, operating 10 fully automated production lines with a monthly capacity of 2 million units [5].

Group 1: Financial Performance - In 2024, the company achieved a total revenue of 1.183 billion CNY, with a net profit attributable to shareholders of 118 million CNY, and a net profit excluding non-recurring items of 100 million CNY, indicating a year-on-year decrease primarily due to the impact of display terminal business [3] - In Q4 2024, the company reported revenue of 419 million CNY, a significant year-on-year increase of 157.68%, positively influencing the annual performance [3] - In Q1 2025, the company generated revenue of 259 million CNY, a slight year-on-year increase, with a net profit of 46 million CNY, reflecting a growth of 32% [3] Group 2: Mini LED Business Insights - In 2024, the revenue from Mini LED display modules doubled year-on-year, accounting for over 50% of the company's total revenue [3] - The global market for Mini LED typical terminals is projected to reach 54.05 billion USD in 2024, with a year-on-year growth of 22.4%, and is expected to exceed 100 billion USD in 2025, growing by 95.9% [4] - The introduction of Mini RGB backlight technology enhances color gamut and display quality, positioning it as a competitive advantage over traditional display technologies [4] Group 3: Strategic Developments - The company is focusing on the development of new display terminal products, including Mini LED-based direct display products and automotive display terminals, while reducing reliance on traditional display terminals due to declining profitability [4] - The strategic goal for 2025 includes a revenue growth target of 40%-60% for display modules, with projected revenue between 1.2 billion CNY and 1.5 billion CNY [8] - The automotive display business is being developed in collaboration with the company's affiliate, RuLong Electronics, to enhance brand promotion and reduce communication costs [6][7] Group 4: Market and Policy Impact - National policies promoting consumption through subsidies have significantly boosted orders for display products, reflecting a strong market demand for high-quality display parameters [5] - The display industry is characterized by stable global shipments of around 200 million units, with ongoing technological advancements driving market growth [5]