Jadard Q1 2026 Net Profit Plummets 34.76%

On April 9, Jadard released its 2025 Annual Report alongside its Q1 2026 Performance Report. Data reveals a sharp contraction in first-quarter earnings, sparking market concern. While the company maintained modest revenue growth throughout 2025, net profit had already begun to weaken; in the opening quarter of 2026, net profit attributable to shareholders dropped by over 30% year-on-year, indicating a significant escalation in profitability pressure.

2025 & Q1 2026 Performance: Stagnant Revenue Meets Earnings Compression

In 2025, Jadard achieved an annual revenue of 2.19 billion RMB, a year-on-year (YoY) increase of 4.17%. However, net profit attributable to shareholders was 234 million RMB, down 15.05% YoY, reflecting a "growth in revenue without growth in profit" trend.

This downturn intensified in Q1 2026. Single-quarter revenue reached 536 million RMB, down 3.28% YoY. Net profit attributable to shareholders plummeted 34.76% to 46 million RMB, while non-GAAP net profit fell 32.26% to 45 million RMB, showing a synchronized decline across core profitability metrics.

Jadard cited two primary reasons for the Q1 profit slump: Exchange rate fluctuations and revenue contraction. During the period, financial expenses narrowed significantly compared to the previous year as exchange gains decreased substantially, directly eroding the bottom line. Meanwhile, a slight dip in revenue combined with a lower gross margin caused net profit to drop far more sharply than top-line revenue.

Four Core Product Lines: A Tale of Structural Divergence

As a high-tech IC design house specializing in smart terminals, Jadard has built a matrix of four core product lines:

• Display Driver ICs (DDIC & TDDI): As the company's pillar business, this segment generated 1.448 billion RMB in 2025, a 10.32% YoY decline. With costs only falling by 10.00%, the resulting margin compression acted as a major drag on performance.

• Voice Coil Motor (VCM) Driver ICs: By breaking into the high-end supply chain through algorithmic innovation, shipment volumes have seen steady growth.

• Fast Charge Protocol ICs (QC/PD): Leveraging high integration, these chips have rapidly captured market share across various charging scenarios.

• Electronic Shelf Label (ESL) Driver ICs: Jadard maintains a globally leading market share in four-color driver chips, supported by high technical barriers.

In 2025, the combined revenue from ESL, VCM, and Fast Charge ICs hit 740 million RMB, surging 52.90% YoY to become the company’s primary growth engine. Conversely, the decline in the dominant Display Driver segment weighed down overall results, highlighting a clear structural divergence in the business.

Early Warning Signs: The Q3 2025 Inflection Point

Jadard’s fatigue did not start in 2026; the downward trajectory began in Q3 2025. For Q3 2025, Q4 2025, and Q1 2026, single-quarter revenues were 490 million, 492 million, and 536 million RMB, representing YoY declines of 23.6%, 20.5%, and 3.3%, respectively. Net profits followed suit, dropping by 53%, 53.8%, and 34.76% over the same periods.

The Q3 2025 downturn was triggered by three factors:

1. High Base Effect: Exceptional performance in the prior year created a difficult comparison.

2. Market Softness: Sluggish demand in downstream sectors.

3. Tariff-Induced Pre-shipping: To hedge against tariff risks, many orders were pulled forward to Q2, effectively "exhausting" Q3 demand and disrupting the typical seasonal growth pattern.

In the short term, Jadard remains challenged by the sluggish mobile display market. According to Omdia, while 4K+ panel adoption may drive a 4% growth in LCD TV DDIC demand in 2026, price hikes in memory components may suppress demand in the IT sector, neutralizing the recovery in the TV market and leaving global DDIC demand stagnant.