Just now! A publicly listed LED company received a U.S. tax refund of RMB 112 million! Its first-half revenue totaled RMB 2.867 billion.

On the evening of August 18, Leyard simultaneously disclosed two significant announcements.

1

Recently, several listed companies have received refunds of U.S. tariffs.

Leyard also announced the refund of U.S. tariffs along with accrued interest, with the refunded amount totaling RMB 112 million.

According to the announcement, in February this year, the U.S. Supreme Court ruled that the various import tariffs imposed by the U.S. government under the International Emergency Economic Powers Act (IEEPA) lacked legal authorization, rendering those tariff measures invalid from the outset. Consequently, all tariffs collected from U.S. importers must be fully refunded, together with applicable interest.

Starting April 20, U.S. Customs and Border Protection (CBP) officially initiated the refund process.

Currently, Leyard’s consolidated subsidiaries have collectively received U.S. tariff refunds totaling USD 16.036 million, accompanied by USD 523,900 in interest, for a combined total of USD 16.5598 million. Based on the central parity rate of the RMB as of August 18, these U.S. tariff refunds and associated interest equate to approximately RMB 112 million.

Leyard stated that, in accordance with relevant provisions of the Enterprise Accounting Standards, no retrospective adjustments are required for prior-year financial statements regarding this round of tariff refunds.

Meanwhile, the specific impact of these U.S. tariff refunds and interest on Leyard’s 2026 operating performance and net profit attributable to shareholders remains to be confirmed, as some amounts may need to be shared through negotiations with Leyard’s customers.

2

Also on the same evening, Leyard released its 2026 semi-annual report. In the first half of the year, the company reported revenue of RMB 2.867 billion, down 18.34% year-over-year compared to the same period in 2025, but up roughly 20% quarter-over-quarter versus Q1 2026; the overall gross margin remained robust at 30%; and net profit attributable to shareholders reached RMB 69.15 million, a 59.74% year-over-year decline, with exchange losses resulting from the depreciation of the U.S. dollar impacting net profit by RMB 38.72 million.

Leyard is a global technology enterprise centered on LED display technology. Through organic growth and strategic acquisitions, it has established three major business segments—Smart Displays, AI & Spatial Computing, and Cultural Tourism & Nighttime Experiences—forming a synergistic ecosystem that spans core technology R&D, product manufacturing, and scenario-based application expansion.

Looking at each segment, in the first half of the year, the Smart Display business generated RMB 2.433 billion in revenue, down 20.74% year-over-year, with a gross margin of 28.45%, an improvement of 2.38 percentage points compared to the same period last year. Specifically: domestic display operations recorded RMB 1.253 billion in revenue, down 18.33% year-over-year; overseas display operations reported RMB 1.180 billion, down 23.16% year-over-year.

The smart display portfolio includes small-pitch LEDs, Micro LEDs, full-color indoor and outdoor displays, creative display solutions, and system integration services.

(Image source: Leyard’s 2026 Semi-Annual Report)

In the first half of the year, the Cultural Tourism & Nighttime Experiences segment generated RMB 266 million in revenue, down 6.38% year-over-year, with a gross margin of 26.17%, up approximately 3.00 percentage points compared to the same period last year.

This segment leverages the content‑creation strengths of Leyard’s cultural tourism subsidiaries alongside the installation and integration expertise of its lighting subsidiaries, aiming to deliver immersive, interactive travel experiences and cultural‑entertainment productions.

In the first half of the year, the AI & Spatial Computing business reported RMB 159 million in revenue, up 7.41% year-over-year; its gross margin stood at 59.54%, an increase of about 8 percentage points compared to the previous year, consistently maintaining the highest gross and net margins among all business units.

It is worth noting that in 2017, Leyard acquired 100% equity of North American firm Natural Point, gaining access to its world‑leading optical motion‑capture technology—OptiTrack—and using it as a cornerstone for developing its AI and spatial computing business lines.

The company is actively pursuing new frontiers, collaborating with industry partners to advance breakthroughs in LiFi optical communication, glass‑based technologies (POG/COG), quantum dots, and other emerging innovations, while validating multiple technological pathways for Micro LEDs and exploring novel application areas. Additionally, Leyard has partnered with CETC Institute 27 to jointly drive the development and commercialization of technologies related to low‑altitude safety protection and anti‑drone systems.

In terms of industrial investment, through a stake in Saphlux, Leyard is co‑developing and promoting the application of semi‑polar gallium nitride and NPQD quantum dots in large‑format commercial displays and AR micro‑displays. During the reporting period, the company also invested in enterprises focused on large‑scale AI models, empowering innovations across smart display systems, cultural‑creative content production, virtual digital humans, and motion‑capture interaction. Furthermore, in collaboration with specialized investment firms, Leyard has invested in high‑quality targets within the commercial aerospace sector, completing its strategic layout within the broader tech industry ecosystem.

Leyard emphasized that these initiatives represent forward‑looking measures taken in response to current industry challenges, aimed at strengthening the company’s technological reserves and expanding its application horizons. However, the actual outcomes will depend on factors such as R&D progress, market adoption, and depth of partnerships, leaving room for uncertainty.

The semi‑annual report also highlighted price‑increase news. In the first half of the year, the company implemented price hikes ranging from 3% to 15% across most of its LED display products to address mounting cost pressures stemming from sustained increases in core raw material prices.

Additionally, Leyard noted that it has adopted a multi‑pronged approach to continuously enhance group‑wide cost efficiency, cutting unnecessary expenditures and refining spending priorities:

(1) The company introduced a company‑wide performance‑evaluation system, aligning individual employee incentives closely with corporate operational goals.

(2) Streamlining functional structures around core business processes, consolidating redundant departments and overlapping roles, reducing management layers, and boosting decision‑making and execution efficiency.

(3) During the reporting period, the company vacated certain underutilized office spaces, further lowering leasing costs, while optimizing production capacity layouts and undertaking measures such as product reallocation, inventory transfer, and fixed‑asset clearance at plants where costs were high yet utilization rates remained low.

(4) For subsidiaries or business units experiencing persistent losses and limited prospects for improvement, the company is advancing consolidation or closure (including shutdowns, relocations, and downsizing), while continually refining early‑warning and corrective mechanisms for underperforming units, ensuring resources are concentrated on core and high‑value businesses.