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In 2017, the domestic color TV market is still in a downturn, and the retail scale has fallen sharply. Under such a severe external environment, Zhaochi has steadily promoted various business developments according to its annual business plan, creating a situation of contrarian growth and realizing sales revenue. Breaking through 10 billion, it has embarked on a new historical stage. At the same time, the company has carried out an important strategy for the LED industry chain. In 2017, the domestic color TV market is still in a downturn, and the retail scale has fallen sharply. Under such a severe external environment, According to the annual business plan, Chiqi has steadily promoted the development of various businesses, created a situation of contrarian growth, achieved sales revenue exceeding 10 billion, and embarked on a new historical stage. At the same time, the company made an important strategic layout for the LED industry chain. Into the high-end manufacturing industry of LED chips, the company has formulated a policy of coordinated development of the entire industry chain of chip + package + application lighting in the LED field, helping the company's LED business to expand rapidly. Zhaochi shares focus on its main business, integrates its advantageous resources in the business field, and steadily expands, and solidly promotes various tasks. In 2017, its operating income was 10.229 billion yuan, an increase of 36.80% over the same period of last year; the total profit was 705 million yuan, compared with the same period last year. The increase was 63.76%; the net profit attributable to shareholders of listed companies was 603 million yuan, an increase of 61.04% over the same period last year. As the company's business sector continued to expand, the asset scale further expanded. As of December 31, 2017, the company's total assets were 16.62 billion yuan, an increase of 35.16% from the end of the previous year; the net assets attributable to shareholders of listed companies was 8.238 billion yuan. At the end of last year, it increased by 6.65%. LED industry chain layout Zhaochi's 2017 revenue reached 10.2 billion yuan. In response to the above business results, the company mainly carried out the following work: Innovation and expansion of traditional business LCD TV In the field of LCD TV, the company adheres to the strategy of big customers, gradually Adjust the product structure, actively deploy to the mid-to-high-end market, and maintain good cooperative relations with well-known brands at home and abroad such as Haier, Xiaomi, Skyworth, Konka, Sharp, Hitachi, and Pioneer. In 2017, the company and the famous Japanese consumer electronics brand JVC carried out diversified cooperation in brand authorization and joint sales on a global scale to jointly promote the design, manufacture and marketing of home audio-visual products and provide them with smart home solutions. Establish business relationships with well-known domestic brands and provide hardware manufacturing for some of its TV products. Zhaochi Co., Ltd. is committed to providing customers with comprehensive solutions to further meet the diverse needs of customers. During the reporting period, the sales revenue of the company's LCD TVs and their accessories increased rapidly. From the set-top box to the smart home network in the field of set-top boxes, Zhaochi has continued to maintain good cooperative relations with radio and television operators and communication operators (telecom, mobile, China Unicom), and develop smart set-top boxes to carry diversified services to achieve revenue growth and value-added services. Operation. The company has developed a series of 4K/P60, IPTV/OTT set-top boxes, and launched a new class of digital set-top boxes, including DVB+OTT set-top boxes. With strong hardware and software development capabilities and a wealth of full-category terminal products, the company has participated in many domestic and international The development and supply of multiple items such as smart set-top boxes and high-definition interactive terminal replacements by regional communication operators fully meet the needs of customers. At the same time, the company actively carried out business expansion and extension. In July 2017, it acquired Shenzhen Zhaochi Communication Technology Co., Ltd. (formerly known as Shenzhen Caihuang Communication Technology Co., Ltd.), and added a new optical fiber transmission equipment business line. It has become a supplier of well-known domestic brands and actively expands the market of telecom operators. Some of the projects in the emerging areas of Zhaochi have achieved certain results, including: 1) Intelligent home networking, effectively solving the high bandwidth of the home after the broadband access to the home in the national 4K Ultra HD strategic background The problem of networking, at present, some provinces and cities have begun to fully bid for telecom operators; 2) Intelligent gateways, taking full advantage of the company's existing advantages in audio-visual technology and network communication technology, combining the two to further extend the control of the Internet of Things Platform, forming a one-stop gateway product for home; 3) AI smart speaker, the company has done a lot of research and development in speaker, far field speech recognition, wireless transmission, etc., plans to launch a foreign and domestic mainstream speech recognition system AI smart speaker products; 4) Future technology reserves in the field of network communications, including NB-IoT, 5G communications, etc. The company will continue to integrate existing products, integrate and innovate, and further create new profit growth points. Continue to promote the Internet intelligent terminal and Internet video joint operation Zhaochi shares based on its own intelligent manufacturing advantages, with the popular online operation platform, and strategic partners Oriental Pearl, Qingdao Haier, Gome Consulting to create an Internet TV super-dimensional ecology, the establishment of Internet TV business And form a large video service integrating terminal, content and platform, thereby improving the joint operation capability and industrialization strength of the company's Internet business. In product development and design, the company's popular Internet TV launched a new artificial intelligence quantum dot TV in July 2017, achieving 110% NTSC color gamut coverage, accurately reducing 1.07 billion colors, presenting a realistic visual experience; The technology has accumulated a variety of styles and models such as borderless, curved, 3D, 4K, QLED quantum dot TV and artificial intelligence TV. Not only has it achieved HDR certification, but also won the internationally renowned creative design award 2017 Germany Red dot award. In terms of channel construction, popular Internet TV own brands mainly focus on offline sales, optimize and innovate business models, upgrade traditional dealers to partners, and establish a huge marketing network throughout the country, plus multi-provincial telecom operator outlets. Launched channel cooperation, covering more than 60% of the third- and fourth-line urban markets, becoming the most complete offline sales platform for Internet TV brands; in June 2017, the company reached a strategic cooperation with Jingdong Mall and entered the Jingdong self-operated platform, new products. The debut of artificial intelligence quantum dot TV has achieved great attention and good reflection, achieving 100% praise, and further expanding the e-commerce market. On the other hand, co-branded TVs with popular systems are still offering software and hardware solutions to third-party brands, selling through the original channels, and leveraging the sales platform of millions of LCD TVs with annual sales of partners. For the terminal market. In terms of content construction and platform operation, the company has continuously enriched the content resources of Internet TV, PC and mobile multi-terminals through modes such as independent procurement and joint operation, covering domestic and international fields including film and television drama, sports, variety entertainment, children, and information. High-quality content has created a very growth-oriented development model, providing the most different elements for the company's transformation into the Internet business. At the same time, Fengxing Online also sells a popular TV operating system--FUNUI for third parties. Further broaden the business area. In 2017, popular online uses short video as a carrier to create a diversified content ecosystem, design short video content solutions for customer appeal and user value, and then distribute it as a whole network to create a self-made program ecosystem to achieve commercial win-win. To expand the influence of communication and bring new business growth points to the company. LED industry chain layout In 2011, the company began to enter the midstream packaging industry and downstream application fields of the LED industry chain. In recent years, with the rapid growth of LED production scale, the packaging and lighting business is also climbing. In 2017, Zhaochi Energy, a holding subsidiary of the packaging business, realized operating income of RMB 1,329,044,000, an increase of 40.65% over the same period of last year. The net profit attributable to the listed company was RMB 10,572,900, an increase of 32.98% over the same period of last year. The industry has strong market competitiveness and has become a leading LED company in China. In the field of packaging applications, Zhaochi Energy is involved in the largest proportion of lighting and backlighting business. The product range is very comprehensive and can meet the diversified needs of customers. In product design, focusing on small innovations to create core competitiveness, product demand Deconstruction of refined indicators, the performance differences are analyzed from the theoretical basis and the actual verification, and is committed to providing each customer with the most suitable gold combination plan; in the production process, through the fully automated equipment and intelligent robots to improve production efficiency, And use the four leading intelligent systems in China to achieve the full process monitoring of quality, and continue to deepen the wisdom of the process to optimize product quality. Relying on the resource advantages of the whole industry chain, Zhaochi Energy Saving will be the world leader in LED packaging industry through product leadership, quality control and service leading. In March 2017, the company set about adjusting the layout of LED downstream applications, and introduced industry veterans to form a team to participate in the establishment of Shenzhen Zhaochi Lighting Co., Ltd. In terms of products, Zhaochi Lighting has launched more than a thousand products, covering more than ten categories of commercial lighting, engineering, home, circulation and other channels. The product lineup has begun to take shape. In terms of sales, it adopts online and offline collaborative development. Zhaochi lighting has entered the Tmall Mall, and there are more than 30 national development and operation centers, with more than 1,400 dealers covering 22 provinces. After a year of brand and market construction, Zhaochi Lighting has gradually gained industry recognition, and was named the annual Fengyun brand by Guzhen Lighting and World Lighting Times. Zhaochi shares strive to build the Zhaochi lighting brand into an iconic brand in the industry in the next 3-5 years. With the expansion of the company's LED business, and the LED industry in Europe, the United States, South Korea and even Taiwan are moving to the domestic market, the company actively seized this development opportunity, signed an investment agreement with the Nanchang Municipal People's Government in June 2017, in Nanchang. With the strong support of the Municipal People's Government, Jiangxi Zhaochi Semiconductor Co., Ltd. was established in Nanchang High-tech Zone with a registered capital of RMB 3.1 billion to invest in LED epitaxial wafers and chip projects. The total land area of ​​the project is about 160,000 square meters, and the total construction area is about 280,000 square meters. It has the largest extension of a single main plant and chip production capacity. The company has introduced a world-class technical team, laid the foundation for the high-end technology of the project, and purchased advanced production equipment, self-built gas station, set up PSS treatment, and formed a strong cost control and competitive advantage. Entering the field of LED chips is an important measure for the company to coordinate the development of LED industry chain. Promote intelligent manufacturing, strengthen automation and transformation, and further reduce costs and increase efficiency. Zhaochi Co., Ltd. continues to be guided by market demand, giving full play to the advantages of talents and platforms, and carrying out technological innovation and product development. During the reporting period, the company invested a total of 311 million yuan in research and development, an increase of 22.54% over the same period last year. Through continuous research and development of new products, research and development of new processes, and transformation of existing equipment, it has laid a solid foundation for the company to implement product differentiation. At the same time, in the process of production and operation, the company always adheres to the spirit of lean and high efficiency, continuously increases the proportion of automation equipment, takes industrial intelligent manufacturing as the leading factor, improves production efficiency, and actively promotes the information management system to enhance internal operation efficiency and The quality of work, thereby reducing the cost of production and management.