Infinet Shows Signs of Profit Recovery as Global Synergy and Integration Benefits Loom

Infitel (300582) released its 2024 annual report on April 26, showcasing significant progress in profitability recovery amidst various challenges. During the reporting period, the company achieved an operating revenue of 2.668 billion yuan, reflecting a year-on-year growth of 1.41%. The net profit attributable to shareholders reached 9.0718 million yuan, indicating a successful turnaround from previous losses. Additionally, the net cash flow from operating activities amounted to 470 million yuan, demonstrating a marked improvement in operational quality.

Building on stable operations, the company has consistently enhanced its research and development (R&D) investments, with total R&D expenditure reaching 182 million yuan, up 8.32% year-on-year. The improvement in several key indicators highlights Infitel’s robust resilience and growth momentum in navigating internal and external uncertainties.

The company’s global strategy of local production combined with global collaboration has proven resilient, particularly in the face of ongoing trade tensions and heightened geopolitical risks. Infitel has established production bases in locations including Hangzhou, China, India, Mexico, and Italy, creating a manufacturing network that serves as a foundation for global outreach. Furthermore, the company has developed several ODM/OEM partnerships across Europe, India, the Americas, and Southeast Asia, ensuring a comprehensive support system across major markets.

This flexible global production layout allows Infitel to maintain backup production capabilities across multiple regions, facilitating shorter physical distances to clients and enhancing service delivery to boost sales. It also helps establish a globally integrated supply chain to secure supply safety and delivery capabilities, enabling swift responses to geopolitical changes and mitigating systemic risks that could impact operations.

On the R&D front, Infitel has established centers in Hangzhou, Shenzhen, Germany, Italy, and India, focusing on local adaptation and collaborative innovation to enhance product responsiveness. In 2024, the company is advancing a global upgrade of its information systems, successfully replicating information technology frameworks across overseas bases in Mexico and India, which encompass key business systems such as ERP, PLM, and CRM. This upgrade significantly enhances global operational synergy and data-driven capabilities.

Currently, Infitel’s products are sold in over 100 countries and regions, with localized operational teams in Europe, North America, and the Asia-Pacific. The European market alone accounts for nearly 50% of the company’s revenue. Notable international projects, such as the OWO hotel in London and the Dubai Museum of the Future, feature Infitel products, underscoring the company’s brand influence and delivery capabilities in the global lighting market.

After acquiring the Osram Digital Systems (DS-E business) in 2023, Infitel has made continuous efforts to integrate core resources. In 2024, the company is optimizing its integration paths from a global perspective, completing information system migrations, organizational restructuring, and operational mechanism collaborations to lay a solid foundation for future synergies.

Throughout the year, Infitel has engaged external consultants to drive management reforms, establishing a process-oriented organizational structure to enhance cross-departmental collaboration. By integrating with the Osram DS-E team, Infitel is expanding its product offerings from high-power to medium and low-power LED drivers, creating a comprehensive system lighting platform that includes drivers, sensors, control systems, and LED modules. Although the effects of integration are still unfolding, initial signs of synergy are emerging in brand collaboration, product line expansion, and supply chain alignment, paving the way for deeper integration and value creation.

Infitel is also expanding its renewable energy business while maintaining steady growth in its LED core operations, with a particular focus on energy storage and charging products. In 2024, the company is committed to increasing its investment in R&D, certification, and market development for renewable energy products, launching industrial and residential energy storage solutions, including integrated solar storage systems and modular commercial storage units, with some products already certified by CE, CB, and FCC.

Additionally, through its equity investment arm, Infitel has increased its stake in Shanghai Gongshun New Energy Technology Co., Ltd. to 20%. This company primarily engages in electric bike sharing and short-term leasing services. This investment broadens Infitel’s collaborative layout within the renewable energy ecosystem and enhances its technical integration and market expansion capabilities for comprehensive solutions. As per the agreement, Infitel has the right to appoint a director to Gongshun, which is expected to foster deeper resource interactions in future strategic collaborations.

The ongoing development of the renewable energy sector reflects Infitel’s strategic direction in actively building a new growth curve driven by the dual carbon goals. As the company continues to integrate LED lighting, smart systems, and energy storage, it is accelerating towards a trajectory of higher quality development.