Zhaoli Cautiously Views 2024 Operations, Expands Layout in Optical Communication Components

(CNA reporter Tseng Jen-kai, Taipei, June 16) Bearing manufacturer Zhaoli held its annual shareholders' meeting today. Affected by factors such as U.S. reciprocal tariffs, the company's consolidated revenue for 2023 reached NT$9.405 billion, down 1.8% year-on-year. Net profit attributable to the parent company was NT$150 million, a sharp decline of 73.9% compared to the previous year, resulting in earnings per share (EPS) of NT$2.23—the lowest in nearly 14 years. The shareholders' meeting approved a cash dividend of NT$1.00 per share.

Zhaoli's operations have remained sluggish in 2024, with revenue for the first five months totaling NT$3.278 billion, down 28.72% year-on-year. The first quarter saw a net loss attributable to the parent company of NT$91.22 million, marking the second quarterly loss in the past year, with a loss per share of NT$1.35.

Zhaoli stated that shortages and price increases in upstream raw materials such as memory chips have impacted demand in the notebook PC and consumer product markets. As a result, the company maintains a cautious outlook on second-half 2024 revenue, aiming to improve profitability compared to the first half.

Facing industry headwinds, Zhaoli plans to diversify its product portfolio to mitigate market volatility in consumer electronics. The company will expand investment in its existing optical communication components business and is currently collaborating with major clients on R&D for precision mechanical components targeting the trend of high-speed optical transmission upgrades in AI-dedicated servers.

Zhaoli noted that increased customer demand for certain models of precision fiber optic connectors has driven year-on-year revenue growth in its fiber-related products into triple digits since the beginning of 2024. As a result, optical product revenue now accounts for approximately 7% of the group's total revenue. (Editor: Chang Chun-mao) 1150616