Solid Core Business Backbone, Innovative AI Terminals Drive New Growth

Key Points

The firm maintains steady core display hardware revenue, while AI-enabled edge terminals represent its primary growth driver, with a diversified product portfolio spanning office, healthcare and consumer smart hardware.

Three proprietary brands (KTC, Horion, FPD) deliver higher gross margins than OEM manufacturing; partnerships with large language model developers speed up mass production of lightweight edge AI solutions.

Investment value hinges on scaling AI hardware shipments, margin improvement from brand business, and potential earnings recovery when macroeconomic conditions improve.

Amid an operating environment mixing opportunities and headwinds at home and abroad in 2025, KTC Technology maintained firm strategic discipline, swiftly optimized operational strategies and adjusted its business structure. Faced with multiple industry pressures, the company pushed forward all core work in orderly fashion. It accumulated valuable operational experience and management expertise while adapting to market shifts, mitigating risks and capturing opportunities. The firm recorded operating revenue of RMB 14.473 billion and net profit attributable to parent shareholders of RMB 505 million. Excluding the impact of accounts receivable impairment, adjusted net profit attributable to parent shareholders reached RMB 852 million. In terms of shareholder returns, KTC Technology’s 2025 dividend plan allocates a total of RMB 676 million in cash distributions.

Dual Growth Engine: Proprietary Brands + High-End Manufacturing, Accelerating Brand Transformation

KTC Technology’s lineup includes smart interactive panels, innovative display products, professional display equipment and smart TVs, sold globally with overseas revenue accounting for roughly 88% of total sales. Long-standing stable partnerships with mature overseas clients in its high-end manufacturing segment secure steady baseline cash flow. Its proprietary brands — KTC, Horion and FPD — deliver substantially higher gross margins than contract-manufactured display goods, and the company continues directing strategic resources toward proprietary brand development. Per third-party data from DISCIEN, the company ranks among global leaders in shipments of smart TVs and smart interactive panels. Shipments of its proprietary-brand gaming monitors, interactive flat panels and portable smart displays secure leading positions domestically or within niche segments.

From an R&D perspective, the company invested more than RMB 600 million in research and development throughout 2025. By year-end, it held 1,485 valid authorized patents and software copyrights. Its R&D team of over 1,000 professionals keeps advancing innovations in software and hardware, AI interaction, touch display and related technologies. KTC is one of the few industry players capable of full independent development and mass delivery of all categories of smart display finished products, a scarce capability among peers.

Accelerated Rollout of AI Innovative Products, Forward Positioning in Next-Generation Smart Terminal Tracks

The industrial rollout of artificial intelligence is advancing rapidly, opening a growth window for edge-side smart hardware. As a leader with over 30 years of experience in smart displays, KTC Technology seizes this industry transformation opportunity to speed up the launch of AI-driven innovative products and position itself in next-generation smart terminal markets, building differentiated competitive advantages built around “AI + Display” technology.

Drawing on deep expertise in display terminal R&D and smart manufacturing, KTC focuses on innovating edge AI hardware carriers and promotes deep integration between large language models and smart terminals. The company has built a full-scenario product matrix covering four major verticals: AI-enabled office, AI education, AI healthcare and AI entertainment.

On the commercial side, Horion smart interactive panels run the self-developed All-in OS alongside an embedded AI toolkit, supporting multi-modal functions including automated meeting minutes, graphic generation and real-time translation to power smart conference and classroom systems.

In consumer innovation, new offerings such as AI companion screens, smart vanity mirrors, AI interactive eyewear and virtual fitting mirrors keep iterating, bringing fresh experiences for household interaction and portable smart devices.Within professional sectors, industry-leading medical AI all-in-one devices have been deployed commercially to advance intelligent upgrades for medical imaging.

On technical collaboration, KTC Technology deepens its strategic partnership with large model developer StepFun to align algorithms, operating systems and hardware. The cooperation accelerates scaled mass production of lightweight edge AI solutions. Backed by its three proprietary brand platforms — KTC, Horion and FPD — plus global supply chain and smart manufacturing strengths, revenue from innovative display products maintains rapid growth, with new domestic and overseas orders continuously emerging.

Core Competitive Moats & Medium-to-Long-Term Investment Catalysts

Built on more than 30 years of accumulated smart display expertise, KTC Technology has formed four core competitive moats: integrated end-to-end software and hardware R&D, multi-brand portfolio layout, global market coverage, and abundant high-quality domestic and overseas client resources.

Medium-to-long-term investment value hinges on opportunities within the edge AI hardware industry:

First, the company has proactively positioned itself in next-generation smart terminal tracks and continues scaling AI innovative products. Its expanding portfolio covering AI interactive panels, portable smart AI displays, medical AI all-in-one machines and other multi-scenario hardware lets it fully capture industry gains as large language models penetrate end-user hardware.

Second, sustained business portfolio optimization lifts the revenue proportion of higher-margin innovative display and commercial interactive products, supporting steady improvement in overall profitability.

Third, deepening ecosystem cooperation with large model developers streamlines coordination across algorithms, systems and hardware, speeding up commercial adoption of edge multi-modal interaction technology.

Fourth, leveraging global distribution channels and brand influence, KTC keeps expanding overseas markets and exploring emerging growth tracks to unlock long-term upside.

As the AI industry moves past technical validation and toward tangible hardware monetization, KTC’s integrated “AI + Display” software and hardware capabilities position it to capture value from the industrialization of next-generation smart terminals.

Key Investment Themes: Scaled mass production of AI hardware, rising profitability from proprietary brands, vertical M&A integration along the industrial chain, and earnings recovery driven by an eventual rebound in the macroeconomic cycle.