Leyard releases 2025 annual report: MicroLED new orders exceed 1.7 billion

On April 16, Leyard officially disclosed its 2025 annual report. During the reporting period, Leyard's overall financial situation improved significantly. At the same time, new orders for the Micro LED business increased significantly. Smart display overseas market revenue exceeded domestic sales for the first time. The company's strategic transformation has begun to take effect.

Leyard's profits have recovered significantly

In 2025, Leyard achieved operating income of 7.064 billion yuan and net profit attributable to the parent company of 307 million yuan, successfully turning losses into profits. The comprehensive gross profit margin will increase from 28.10% in 2024 to 31.41%, a year-on-year increase of approximately 3.31 percentage points; the net profit margin has also rebounded significantly to 4.35%.

In terms of cash flow, the company’s net cash flow from operating activities reached 1.066 billion yuan, an increase of approximately 59.59% from the previous year’s 668 million yuan, reaching the highest level in the past five years. Total assets are 13.905 billion yuan and net assets are 8.111 billion yuan. The company's financial structure tends to be stable.

Regarding the changes in performance pattern, the company attributed the main reason in its annual report to the systematic change of business strategy - from the previous emphasis on "scale expansion" to "value creation" and the comprehensive implementation of the "profit-oriented" development concept.

Specific measures include: proactively reducing orders with high risk of repayment, low gross profit margin or lack of technical premium, and not participating in industry price wars; simultaneously promoting the reduction of administrative expenses and sales expenses, strengthening project review and full-process risk control mechanisms; and optimizing the production system, promoting centralized supply chain control and product standardization, so that the overall product streamlining ratio reaches 30%, and the material streamlining ratio reaches 60%.

It is worth noting that Leyard will continue to invest in R&D in 2025. The annual R&D investment will reach 404 million yuan, accounting for 5.72% of operating income. The cumulative R&D investment in the past five years is close to 1.955 billion yuan.

The structure of the three major sectors is stable, and the proportion of overseas revenue exceeds that of domestic revenue for the first time

From the perspective of business segments, the revenue proportions of the company's three main business segments remained relatively stable, with smart displays still occupying a dominant position. The gross profits of the cultural tourism night tour, AI and spatial computing segments all increased.

The smart display segment achieved revenue of 6.014 billion yuan throughout the year, accounting for 85.14% of total revenue. Although it decreased slightly by 1.55% year-on-year, the gross profit margin rebounded from 27.70% in the previous year to 30.30%, regaining the 30% level.

In terms of regional structure, Leyard's smart display sector has undergone a historic change in 2025, with overseas display business revenue reaching 3.267 billion yuan, accounting for 54.32% of the smart display sector's revenue, surpassing domestic revenue for the first time. From the perspective of major overseas markets, North America performed particularly well. North America's revenue reached 1.969 billion yuan, a year-on-year increase of 21.09%, making it the largest single regional market in the smart display sector. The Asian market also recorded a growth of 17.74%, reaching 972 million yuan.

The overall gross profit margin in the overseas market was 33.73%, which was higher than the 26.21% in the domestic market, further confirming the positive contribution of expanding overseas high-value markets to the improvement of profit margins. Among them, the North American market performed well, and the company's North American brand Planar won a historic order record in 2025.

In addition, during the reporting period, Leyard's Saudi factory has started construction, and its European, Asian, African and Latin American businesses have been adjusted; at the same time, in 2025, Leyard will add the "Leyard" brand for collaborative operations to promote dual-brand penetration from high-end to mid-range markets.

The annual revenue of the cultural tourism night tour segment was 715 million yuan, a slight increase of 0.80% year-on-year, but the gross profit margin jumped sharply from 17.79% in the previous year to 27.68%, an increase of nearly 10 percentage points. It is the business with the most significant improvement in gross profit margin among the three major sectors.

In 2025, Leyard will implement the integration of its two major business groups, cultural tourism and night tourism economy, officially establish the cultural tourism Beijing headquarters, and upgrade the strategy to the "1+2+4" model - with "operational front-end" as the core, "cultural tourism improvement" and "urban renewal" as the wings, focusing on the four major business directions of night economy, digital exhibition, entertainment and performing arts, IP cooperation and operation. During the reporting period, the company completed a number of benchmark projects including "Crane Ming Blessed Land" and "Blessed Land Long Song" in Huaihua, Hunan, "Longyou Xiushui" in Jiangxi Xiushui, and "Above the Dongting" in Yueyang, Hunan.

The AI ​​and spatial computing segment achieved annual revenue of 317 million yuan, a year-on-year increase of 3.24%, with a gross profit margin of 58.84%, the highest gross profit margin among the three major segments, and is a high-value segment in the company's profit structure.

The core of Micro LED strategy has made important breakthroughs, with new orders exceeding 1.7 billion yuan

Micro LED is one of Leyard's most watched core strategic areas in 2025.

In 2025, the company's new orders for Micro LED business will exceed 1.7 billion yuan, a year-on-year increase of approximately 50%. The growth momentum is strong, showing continued improvement in market recognition. The company's products have successfully entered application scenarios with extremely high image quality and reliability requirements, such as high-end conferences, command and dispatch, and theaters.

In terms of technological breakthroughs, the company officially released the substrate-less Micro LED display technology "High-End MiP (Hi-Micro)" in April 2025. It is made of Micro LED chips with a short side of less than 30 μm peeled off the substrate, achieving a smaller size, deeper black performance and higher contrast.

At present, Hi-Micro's first-phase production capacity of 1200KK/month has been put into use, the core process mass transfer efficiency reaches 6000K UPH, and the yield rate exceeds 99.99%; the equipment required for the second-phase production capacity of 1200KK/month has entered the factory and entered the debugging stage. After the official production, the total production capacity of the Wuxi Micro LED production base will be increased to 4000KK/month.

At the end of 2025, the company will further launch new Micro LED products based on "DPR dual parallel redundancy" technology, which can significantly reduce current density and junction temperature stress, significantly reduce the probability of pixel failure, further improve the reliability of Micro LED displays, and help accelerate the penetration of products into the consumer market. Currently, Leyard is exhibiting the product at Infocomm China in Beijing.

In the direction of movie screens, the 4K 16m MiP LED sound-transparent movie screen launched by Huaxia Leyard, a joint venture between the company and China Film Group, passed DCI certification in November, which is an important milestone for the introduction of Micro LED technology into the cinema market. As of December 2025, Leyard's "Huanying Island" LED movie space has been lit up in 41 benchmark projects across the country.

On the technical roadmap, Leyard is adhering to the "dual-track parallel" strategy of focusing on MiP and supplementing by COB. At the same time, it is actively expanding the application boundaries of Micro LED technology in the directions of optical communications, vehicle array headlights, and biomedicine.

The layout of emerging strategic industries such as motion capture, AI, and optical communications is gradually unfolding

Leyard's series of emerging businesses will also achieve results in 2025.

In the field of AI and spatial computing, the OptiTrack optical motion capture system, the core product of Natural Point, a subsidiary of Leyard, continues to expand application scenarios. Motion capture technology has been widely used by several giants in the United States and is involved in many fields such as embodied robot training, large models, game production, virtual shooting, simulation, cultural tourism, sports, and medical care.

Virtual Motion Company and Peking University jointly developed the Lydia 2.0 action model, which has been upgraded in terms of semantic understanding and action generation stability, and has added target recognition and independent path planning capabilities.

In the field of consumer AI, Leyard has launched two new products. One is Micro LED AR smart glasses equipped with a large AI model, which weighs only 49 grams and supports more than 125 languages ​​​​and accents. It will launch internal purchases and official external sales in October 2025. At the same time, it reached a cooperation with Rokid to jointly launch customized solutions for the B-end.

The second is the AI ​​Baji intelligent emotional companion product for fans and the two-dimensional market. It will be officially launched on the market in November 2025, and will jointly create in-depth concert scenes with artist Miyori Mei.

In the field of optical communications, Leyard and the Chinese Academy of Sciences have also achieved preliminary results in the research and development of LED optical communication technology. They have developed the first-generation LiFi optical communication system, which is based on Leyard's high-efficiency LEDs and has both lighting and communication functions. In addition, Leyard also provides Micro LED optical module products to the Chinese Academy of Sciences to replace the original traditional optical transmission technology. The solution is currently in the research and development verification stage.

Summary

Overall, 2025 is a critical year for Leyard to stabilize its performance and implement its strategy. With the continued expansion of Micro LED production capacity, further increase in overseas market share, improvement in profitability of the cultural tourism sector and rapid development of AI innovation business, the company's profitability is expected to be further consolidated in 2026.