Zhaochi Co., Ltd. (002429.SZ) has released an announcement concerning abnormal fluctuations in its stock price, noting that there has been significant market interest in the concept of MicroLED. The company's core business operations remain steady and unchanged. Currently, the application of MicroLED in extended domains, such as optical communication, is in the phase of sample validation and testing, and it is not expected to substantially affect the company's performance in the near term. The laser chip project and the high-speed optical module project, identified as the company's strategic emerging businesses, are in the nascent stages of production. It will require some time for capacity expansion and market penetration to take place. In the first half of 2025, the company's optical communication business generated revenue of RMB 309 million, accounting for less than 5% of the total revenue of RMB 8.483 billion, reflecting a relatively modest scale of operations in this sector.
