On March 24, Rijiu Optoelectronics unveiled its 2025 annual report, revealing revenue of RMB 667 million, marking a 14.46% year-on-year increase; net profit attributable to shareholders reached RMB 105 million, soaring by 54.94% year-on-year; and net profit attributable to shareholders after non-recurring gains and losses stood at RMB 99.1619 million, up 64.13% year-on-year.

Amid intensifying industry competition and price pressures on certain product lines, how did Rijiu Optoelectronics manage to achieve profit growth that significantly outpaced revenue growth?

The annual report indicates that Rijiu Optoelectronics' performance growth did not result from a straightforward recovery of traditional businesses but rather from a transformation in growth drivers within its product portfolio. For an extended period, ITO conductive film has been a hallmark product of Rijiu Optoelectronics. In 2025, the conductive film segment generated revenue of RMB 464 million, up 24.91% year-on-year, continuing to act as a stable "anchor" for the company.

However, the real standout came from emerging business segments. Firstly, the optical film product emerged as a significant contributor. During the reporting period, this business recorded revenue of RMB 61.7979 million, with an astonishing year-on-year growth rate of 109.86%, effectively doubling its revenue. Amid a bottleneck in consumer electronics hardware innovation, optical film, as a crucial material for enhancing display performance and enabling differentiated functions, is experiencing renewed demand.

Secondly, the light-adjusting conductive film, which has garnered considerable attention from the capital market, demonstrated explosive growth. With the advancement of intelligent new energy vehicles, features such as light-adjusting sunroofs and side windows are transitioning from "optional" to "standard." The annual report reveals that the light-adjusting conductive film business continued to expand its applications in automotive sunroofs, side windows, and rearview mirrors, with revenue surging 189.96% year-on-year during the reporting period. This growth rate not only underscores the market potential of automotive optics but also solidifies Rijiu Optoelectronics' first-mover advantage in the automotive light-adjusting materials sector.

Notably, the OCA optical adhesive business, once highly anticipated, experienced a 22.84% year-on-year decline in revenue during the reporting period. The company explained during investor research that this was primarily due to heightened price competition in the white-label market and substantial R&D investment, prompting the company to moderately reduce production to strengthen cash collection and risk control. This strategic scaling back reflects the management's clear operational philosophy—no longer blindly pursuing scale but focusing more on cash flow and high-value-added sectors.

The 54.94% growth in net profit was supported by margin recovery and balanced expense control. According to the financial settlement report, the company's 2025 primary business cost growth rate was lower than its revenue growth rate, demonstrating cost dilution effects from scaled production of core products such as conductive films and optical films.

Furthermore, the company's net operating cash flow reached RMB 185 million, up 35.4% year-on-year, with a cash flow-to-net profit ratio of 1.77, indicating substantial real cash inflows relative to profits.

Overall, Rijiu Optoelectronics delivered a high-quality performance in 2025. Against the backdrop of sluggish growth in the optical film industry, the company successfully executed a "lane change and overtaking" strategy through precise positioning in the automotive light-adjusting and optical film sectors.

With the progression of the 6 million square meter annual production capacity for functional films project and sustained growth in light-adjusting conductive film applications in the automotive sector, the company is poised to reduce its reliance on the single consumer electronics market and construct a diversified, anti-cyclical business portfolio encompassing consumer electronics, automotive optics, and emerging displays. This will also serve as a vivid testament to China's optical film industry's transition toward high-value-added sectors, with a promising future ahead.