Behind three consecutive championships, Unilumin Technology’s “counter-cyclical” expansion

Against the backdrop of panel giants entering the industry and intensifying industry competition, Unilumin Technology has delivered an eye-catching report card: revenue exceeded the 8 billion yuan mark for the first time, reaching 8.093 billion yuan, a year-on-year increase of 4.11%, and continues to remain the world's number one LED display listed company in terms of revenue.

Next, experts say that Display uses "data in financial reports" to understand the latest financial situation and operating style of Xizhou Ming Technology.

Fundamental perspective: Revenue reaches a new high, ranking first in global industry revenue for three consecutive years

Let’s look at the fundamentals first. Unilumin Technology’s revenue scale continues to expand, ranking first in global industry revenue for three consecutive years.

1) Revenue reaches a new high: Steady expansion under a high base

Under the double attack of global economic fluctuations and fierce industry competition, Unilumin Technology's revenue in 2025 will reach a new height of 8.093 billion yuan, a year-on-year increase of 4.11%. The weight of this number lies in the fact that it is growth achieved on a high base, which is already the world's number one LED display listed company in terms of total revenue. It is a typical "sail against the current" rather than expansion along the wind, which intuitively confirms the resilience of its basic market.

As the main engine of Unilumin Technology's growth, the smart display business has maintained a growth curve in the past six years, achieving revenue of 7.635 billion yuan in 2025, a year-on-year increase of 6.19%. The growth rate is higher than its overall level, demonstrating strong endogenous power.

According to expert research, with this performance, Unilumin Technology's share of the global LED display market continues to exceed 15%, and it has ranked first in global industry revenue for the third consecutive year. This means that its comprehensive advantages in supply chain, brand, channels, etc. have formed significant scale barriers, and its leading position has been further consolidated.

2) Adopt the "scale first" strategy to consolidate its market position

In 2025, while Unilumin Technology will achieve revenue growth, there will be short-term changes in the profit side. According to the announcement, its net profit attributable to the parent company is approximately 63.162 million yuan, and non-net profit after deducting is approximately 16.4714 million yuan. The two figures have declined compared with last year, mainly due to the comprehensive impact of Unilumin Technology’s different strategies in domestic and foreign markets and changes in the external environment.

In the domestic market, Unilumin Technology has adopted a "scale first" strategy to consolidate its market position. Domestic business revenue increased by 14.62% year-on-year, but it was mainly channel sales, with an average gross profit margin of approximately 15.39%. In order to accelerate the increase of market share, Unilumin Technology has proactively implemented a more competitive channel policy. This strategic move is a proactive strategic investment to gain long-term market share advantages.

In overseas markets, Unilumin Technology mainly settles in US dollars, accounting for 58.08% of its revenue, more than half. Although the gross profit margin of this part of the business remained at 33.16%, the exchange rate fluctuations during the reporting period resulted in large exchange losses, which had a direct impact on the overall profit.

3) Operational quality improved significantly

In terms of asset operation efficiency, Unilumin Technology has made positive progress in 2025. Its accounts receivable turnover days have been shortened to 87 days, a decrease of 11 days year-on-year; at the same time, the balance of accounts receivable has dropped to 1.768 billion yuan, a year-on-year decrease of 15.9%. Inventory management also showed improvement, with turnover days shortened by 6 days to 106 days, and inventory balance decreased by 8.16% year-on-year to 1.66 billion yuan. The "double decline" of core operating indicators means that a sum of funds completes the "production-sales-receipt" cycle within Unilumin's technology system faster than before, effectively releasing part of the working capital and enhancing the liquidity of internal funds.

However, not all of the released working capital "flows into" the "reservoir" of cash flow from operating activities in the current period. During the reporting period, Unilumin Technology’s net cash flow from operating activities was 470 million yuan, a year-on-year decrease. This phenomenon may be related to changes in Unilumin Technology’s profit side and increased cash expenditures on procurement and supply chain stocking to support business growth. At the same time, changes in product gross profit margin also affect the absolute scale of sales collection.

If net profits can stabilize and rebound in the future, the positive effects of improved operating efficiency are expected to be more fully reflected.

Observation on the business side: From multiple “global firsts” to the construction of multi-dimensional barriers

Looking at the business side, what Unilumin Technology demonstrates is a three-dimensional competitive advantage built by multiple “firsts” that cannot be easily copied.

1) Comprehensive consolidation of market position

Unilumin Technology will continue to maintain multiple "global firsts" in 2025:

No. 1 in market size: total revenue, LED display revenue, and shipment area ranked first. In 2025, the sales area of its smart display products will historically exceed 1 million square meters, a year-on-year increase of 31.94%. While achieving a scale leap, it has further strengthened its dual leading advantages in production capacity and market.

No. 1 in global penetration: LED display export volume has ranked first for more than ten consecutive years. In 2025, Unilumin Technology's overseas operating revenue will be 4.701 billion yuan, and its overseas smart display sales area will exceed 430,000 square meters. According to experts, Research data shows that Unilumin's brand has ranked first in LED display export volume for more than 10 consecutive years.

No. 1 in segmentation: the high-end rental market and XR virtual shooting market share dominate the world. According to research data from experts, the LED rental display market size is approximately 7.1 billion yuan; Unilumin Technology's rental products (excluding XR virtual shooting) achieved revenue of 2.099 billion yuan, firmly ranking in the first echelon of the market, and continuing to maintain the first place in the world in the field of high-end LED rental displays. At the same time, Radiodio, a wholly-owned subsidiary of Unilumin Technology, occupies a leading position in the global high-end XR virtual studio market, achieving revenue of 1.292 billion yuan in 2025; with a market share of approximately 70%, it has successfully built more than 100 top-notch international XR studios.

2) Mini/Micro LED has become the main driving force for growth

As industry competition continues to intensify, Unilumin Technology has made key technological progress in the high-end display field. In 2025, Unilumin Technology's Mini/Micro LED product revenue will be 1.254 billion yuan, a year-on-year increase of 49.1%, and has become its fastest-growing business segment. By achieving full-pitch product coverage from P0.3 to P1.8, and especially achieving breakthroughs in mass production of P0.4 real pixels and application of P0.3 MIP technology, Unilumin Technology has established a solid technical layout in the field of ultra-fine pitch displays. This is not only an upgrade of products, but also an upgrade of the business model - from the mass market of "competing on price" to the high-value niche market of "competing on performance and experience".

3) Compound interest in core capabilities: the same “technical key” opens multiple doors to growth

Unilumin Technology’s strategic wisdom lies in its strong “technological compound interest” capability. Its core technologies such as Mini/Micro LED and control systems are not just for a single product, but are like a master key, opening the door to multiple explosive markets at the right time: from virtual shooting (XR) to rental stages to emerging LED movie screens.

When the rental market falls into a price red ocean, its high-end brand Radio is able to ride through the cycle with its technology premium; when cinema displays usher in a wave of substitution, its technology reserves can be quickly converted into orders. Now the same technological scalability has opened up new space in the field of creative display. The revenue of this business will surge by 227% year-on-year in 2025. Innovative products such as spherical screens and holographic screens have been recognized and have now grown into new growth poles with clear prospects.

4) "LED+AI" strategy fully launched"

Unilumin Technology has fully launched the "LED + AI" strategy, with the goal of transforming the screen from a "passive display" device into an embodied intelligent terminal that "can listen, think, and understand services." Whether it is a joint venture with an AI company to establish a smart display robot company, or a self-developed "Shan Yin Large Model" to complete the registration, they all point to the same future: the dimension of competition will rise from hardware parameters to the ecological capabilities of "hardware + AI algorithm + scene solutions". This move is intended to pave the way for the next generation of the industry.

5) Deepening of globalization layout, from "selling globally" to "being global"

Facing the wave of anti-globalization, Unilumin Technology's globalization has further deepened. It has built a supply chain network of "three major domestic manufacturing bases + overseas local production capacity" and a marketing service system covering more than 160 countries and more than 5,600 partners. This "localized" in-depth layout enables it to better serve local customers and smooth the impact of fluctuations in the international economic and trade environment.

Experts say Research summary

When the LED display industry as a whole is under pressure and most companies are shrinking their profit margins, Unilumin Technology has embarked on a counter-cyclical path: proactively offering profits to channels, at the expense of profit margins, pushing revenue to a new high of 8 billion, and ranking first in the world for three consecutive years.

On the surface, this is "increasing revenue without increasing profits"; but from the perspective of the evolution of the industry's competitive landscape, this is a clear strategic choice - exchanging short-term profits for irreversible leadership in structural share.

For Zhouming, expanding scale at the current stage is not to ignore the quality of operations, but to judge that the industry is accelerating liquidation. It can use its own capabilities to proactively take over the share released by the liquidation market. The essence of this round of scale expansion is to reasonably transfer short-term profit margins in exchange for a jump in long-term market position. This may seem more costly during an industry downturn, but in a track where concentration is rapidly increasing, it may build a more sustainable moat. Once the industry recovers, there will be opportunities for significant optimization due to economies of scale.

It can be seen that Unilumin Technology's strategic choice to pursue scale is not to abandon quality, but to choose a different pace of competition. It hopes to gain meaningful market share at a controllable price. This is essentially a business strategy - what is important is not the quality of current financial profits, but the quality of future strategic positions.

Of course, this strategy is not without risks. The key is whether Unilumin Technology can effectively transform its share advantage into profit elasticity when the industry recovery comes.