Konka's Q1 financial report: Total profit soars by 141.79%, and strategic synergy is significantly unleashed.

On April 29th, Konka Group released its first-quarter report. In the first quarter of 2025, it achieved an operating income of 2.544 billion yuan, a year-on-year increase of 3.32%. The total profit was 258 million yuan, a year-on-year increase of 141.79%.

Judging from Konka's impressive first-quarter data, the synergistic effect of the company's "consumer electronics + semiconductor" strategy has been significantly released.

In February this year, Chongqing Konka Optoelectronics, a subsidiary of Konka Group, was invited to participate in the Global Mini/Micro LED Display Technology Week and showcased its 1530/1424/3154/5252 Micro LED chips. Currently, Chongqing Konka Optoelectronics has achieved independent R & D and large-scale production of RGB epitaxial wafers and Micro LED chips, which can meet the needs of different users, markets, and application scenarios.

It is worth mentioning that in the R & D process of red-light Micro LED chips, Konka Optoelectronics has deeply optimized the core processes such as evaporation, activation, and bonding. Its bonding yield has climbed to 98%, reaching the leading level in the industry, laying a solid foundation for the commercial application of chips.

Initial Results of the "Long-Termism" Strategy

In the semiconductor field, Konka has completed a vertical layout from materials to packaging and testing.

For example, its subsidiary, Hefei Kangxinwei, has the full-stack self - research ability of storage master - control chips from IP, hardware, firmware to system. It has strong scientific and technological innovation attributes and truly has the ability to solve the bottleneck problems, realizing full - chain localization.

Chongqing Konka Optoelectronics is committed to the R & D of cutting - edge Micro LED technologies. Relying on the two core technologies of "chips + mass transfer", it has built a complete industrial chain layout from MLED epitaxial chips, mass transfer, packaging, modules to display screens, and is making every effort to promote the industrialization process of MLED display devices.

This technology feedback forms a unique advantage in the consumer electronics segment. For example, the APHAEA A7 series of TVs equipped with self - developed AI image processing chips have significantly improved product premium ability.

The linkage effect between semiconductors and consumer electronics is also reflected in higher commercialization efficiency.

Based on years of experience in C - end products, extending from a deep understanding of downstream scenarios to the upstream will provide a more accurate PMF perspective, resulting in higher commercialization efficiency.

Taking Hefei Kangxinwei as an example, its storage master - control chips and storage modules have covered various scenarios such as consumer - grade, automotive - grade, and industrial - control - grade, and are widely used in fields such as robots, automotive electronics, network cameras, Wifi6, drones, intelligent IoT terminals, AR/VR, TVs, mobile phones, set - top boxes, tablets, projectors, fusion gateways, and industrial automation.

Since last year, the consumer electronics semiconductor industry has gradually emerged from the downturn of 2022 - 2023, and market demand has begun to recover.

The shipment volume of consumer electronic products such as smartphones, tablets, laptops, and wearable devices has shown an upward trend, driving the activity of the semiconductor industry chain. Especially in the second half of last year, with the arrival of the new product release cycle of consumer electronics, the industry's prosperity has further improved.

Meanwhile, the localization process of the global semiconductor industry chain has significantly accelerated.

The technical level of Chinese semiconductor enterprises in chip design, manufacturing, and packaging and testing has been continuously improved, gradually narrowing the gap with international leading enterprises. The application proportion of domestic chips in the consumer electronics field has continued to rise, injecting new growth momentum into the industry.

Building Full - Industry Chain Capabilities

When the penetration rate of the home appliance market exceeds 95% and enters the stage of stock competition, the traditional "single - product victory" model is no longer effective. Industry data shows that in 2023, the concentration ratio of the top 5 enterprises in the white - goods market decreased by 4.2%, confirming the weakening of the competitive barriers of single product categories.

The survival rule in the new cycle has changed to a competition of full - industry chain capabilities, which is reflected in three dimensions.

Firstly, it is the technical in - depth ability, extending from terminal products to upstream core components to build a technical closed - loop of "chips - modules - complete machines". Konka's patents in fields such as gallium nitride power devices and MEMS sensors have formed a technical moat.

Secondly, it is the ecological construction ability. Through semiconductor technology, the smart home ecological chain can be connected, and the ability of integrating terminals, clouds, and chips makes it possible for enterprises to transform from hardware sales to service operations.

Finally, it is the scenario - definition ability, seizing the opportunity in the AI hardware revolution. In the wave of AI, hardware will achieve large - scale commercialization before software. AI hardware is the most important implementation direction this year. Konka has also made in - depth layouts. For example, technologies such as 1530 - micron chips have been applied in scenarios such as vehicles and wearable devices.

Konka's practice verifies the reshaping effect of chip localization on enterprise competitiveness. After achieving self - research on the smart TV master - control chip, the product can quickly respond to market demand changes. This evolution path of "technology patentization - patent standardization - standard industrialization" enables enterprises to break through the trap of homogeneous competition.

While competitors are still competing in screen size, Konka has solved many technical problems of 8K video through self - developed chips, upgrading the competition dimension from hardware parameters to user experience.

In the competition of the new cycle, Konka's strategic choice points the way for the industry: consumer electronics and semiconductors are not simply a superposition of businesses, but a reconstruction of the value chain through technological penetration.

This dual - wheel - drive model essentially uses semiconductors as an "industrial operating system" to redefine the ability boundaries of home appliance enterprises. When the industry enters a new era where "no chips, no standing", Konka's first - mover advantage is transforming into an insurmountable competitive barrier.