Infinet Reports Initial Profit Recovery and Prepares for Global Synergy Benefits

InfiTech: Signs of Profit Recovery, Global Synergy and Integration Benefits on the Rise

On April 26, InfiTech (300582) released its annual report for 2024, showcasing steady progress amid multiple challenges and a comprehensive recovery in performance. During the reporting period, the company achieved an operating revenue of 2.668 billion yuan, reflecting a year-on-year increase of 1.41%. The net profit attributable to shareholders reached 9.0718 million yuan, marking a return to profitability. Additionally, the net cash flow from operating activities amounted to 470 million yuan, indicating a significant improvement in operational quality.

While maintaining stable operations, InfiTech has also increased its investment in research and development, with total R&D expenditures reaching 182 million yuan, a year-on-year growth of 8.32%. The improvement in several core indicators demonstrates the company’s resilience and growth potential in navigating internal and external uncertainties.

Globalization Strategy Shows Resilience; Cross-Cycle Capabilities Strengthening

In the context of frequent global trade frictions and escalating geopolitical risks, InfiTech’s strategy of “local production + global collaboration” has exhibited greater resilience and cross-cycle capabilities. The company currently operates its own production bases in cities such as Hangzhou, China; India; Mexico; and Treviso, Italy, establishing a manufacturing network that is rooted in China and extends globally. Furthermore, InfiTech has partnered with multiple ODM/OEM manufacturers across Europe, India, the Americas, and Southeast Asia, ensuring a comprehensive supply chain presence in major markets.

This flexible global production layout enables the company to back up production across multiple regions, helping to shorten the physical distance to customers and enhance service quality, thereby increasing sales volume. It also supports the establishment of a global supply chain system to ensure supply security and delivery capabilities, allowing for rapid responses to geopolitical challenges and mitigating the impact of systemic risks from any single region.

On the R&D front, InfiTech has established research centers in Hangzhou, Shenzhen, Germany (Kaiserslautern), Italy (Treviso), and India (Gurgaon). These centers focus on local adaptation and joint innovation around customer scenarios to enhance product responsiveness. In 2024, the company is promoting a unified upgrade of its information systems globally, having successfully replicated its information technology frameworks, including ERP, PLM, and CRM, in overseas bases such as Mexico and India. This significantly enhances global operational synergy and data-driven capabilities. Currently, InfiTech’s products are sold in over 100 countries and regions, with localized operation teams in Europe, North America, and Asia-Pacific; the European market accounts for nearly 50% of revenue. In several landmark international projects, such as the OWO Hotel in London and the Museum of the Future in Dubai, InfiTech products have been successfully implemented, validating the company’s brand influence and delivery capabilities in the global lighting market.

Major Asset Restructuring Lays a Strong Foundation for Continued Synergy

Since completing the acquisition of Osram’s Digital Systems Eurasia business (DS-E) in 2023, InfiTech has steadily progressed in integrating core resources. In 2024, the company is optimizing and integrating its systems with a global perspective, gradually completing the migration of information systems, organizational structure optimization, and operational mechanism synergy, laying a solid foundation for future collaborative benefits. Throughout the year, external consultants have been brought in to drive management reforms, establishing a process-oriented organizational structure to enhance cross-departmental collaboration.

By integrating with the Osram DS-E team, the company has begun to achieve product coverage from high-power to medium and low-power LED drivers, creating a comprehensive lighting platform that includes driver power supplies, sensors, control systems, and LED modules. Although the effects of integration have not fully materialized by 2024, initial signs of synergy are evident in brand collaboration, product line expansion, and supply chain alignment, paving the way for deeper integration and value release in the future.

Continuous Expansion in New Energy Business; Investment in Gongshun Deepens Synergy

While maintaining robust growth in its core LED business, InfiTech is actively expanding into the new energy sector, focusing on energy storage and charging products to diversify its business support. In 2024, the company continued to increase investments in R&D, certification, and market development for new energy solutions, launching commercial and residential energy storage options, including solar storage integration systems and modular energy storage solutions, some of which have received international certifications such as CE, CB, and FCC.

Additionally, through its investment arm, InfiTech has increased its stake in Shanghai Gongshun New Energy Technology Co., Ltd. to 20%. Gongshun primarily engages in shared electric bike services and short-term rental business. This investment not only broadens InfiTech’s collaborative layout within the new energy ecosystem but also enhances its technological integration and market development capabilities for comprehensive solutions. Under the agreement, InfiTech has secured the right to appoint directors to Gongshun, which is expected to facilitate deeper resource interaction in future strategic collaborations.

The ongoing advancement in new energy reflects the company’s proactive strategy to build a new growth trajectory driven by the “dual carbon” goals. Furthermore, as LED lighting, intelligent systems, and energy storage continue to converge, InfiTech is accelerating its progress toward a higher quality development path.