Impact of U.S. Tariffs on Jadard

Recently, the U.S. government announced a new round of tariff increases under the 'Reciprocal Tariff' policy, attracting significant attention in the global supply chain. As a company specializing in display driver ICs for mobile intelligent terminals, Jadard closely monitors changes in the international trade environment. The company has conducted a comprehensive assessment of the impact of this round of tariffs on its business and provides the following explanations:

1.  No Direct Exports of Chip Products to the U.S. 

Jadard's main products include intelligent mobile terminal display driver ICs (including touch and display driver integration), camera voice coil motor driver ICs, fast charging protocol ICs, and electronic shelf label driver ICs. The company's chip products are sold through agents to domestic module manufacturers, who then deliver the modules to solution providers and end customers. Jadard does not directly export chip products to the United States.

2.  Wide Distribution of Downstream Demand Regions, Primarily Non-U.S. Market Sales 

The core product, display driver ICs, accounts for 77% of the company's revenue, with primary applications in smartphones, tablets, and smart wearables. These chips are mostly sold to non-U.S. markets. The largest market for phones is the mainland, where local brands sell little in the U.S., focusing instead on non-U.S. sales. Smart wearables are primarily sold in emerging markets like India. The company's electronic shelf label driver ICs, voice coil motor driver ICs, and fast-charging protocol ICs account for 23% of revenue, primarily targeting the European market. Some products indirectly enter the U.S. market, but these contribute minimally to business and are not significantly affected by tariff policies.

3.  Diverse Customers and Supply Chain, Strong Market Risk Resilience 

Thanks to stable product quality and excellent customer service, Jadard has accumulated solid domestic and international customer resources. Clients include module manufacturers, solution providers, and end brands, forming a highly diversified global layout. The company develops and produces products based on orders and customer needs, ensuring timely delivery. The supply chain is primarily driven by local suppliers in China, complemented by partners in Taiwan and Southeast Asia, maintaining a diversified backup not affected by trade policy changes. Jadard will continue to strengthen technical iterations and customer collaboration, consolidating market competitiveness through scenario-based product matrices.

4.  Minimal Impact of 'Reciprocal Tariff' Policy on the Company 

In conclusion, the U.S. government's 'Reciprocal Tariff' policy currently has minimal impact on Jadard's overall operations. The company will closely monitor international developments and relevant trade policy adjustments, promptly adjusting market strategies, enhancing communication with customers and suppliers, and increasing investment in R&D and technological innovation to improve product competitiveness. Jadard is committed to ensuring stable operations, advancing all business initiatives smoothly, and returning excellent operational performance and high-quality development to investors and the community.

Company Overview: Jadard focuses on the research, design, and sales of integrated single chips in the mobile intelligent terminal sector. The products are used in fields such as mobile phones, tablets, smart speakers, smart wearables, fast charging/power bank, smart retail, smart offices, and smart medical. Jadard provides a diverse range of products to meet the varied needs of these applications. The company emphasizes collaboration and service with downstream module, panel, system, and end customers, and has established stable relationships with well-known downstream companies such as BOE, Innolux,CSOT, Kingdisplay, Starry Electronic,Huaqin Telecom, Wingtech, and Longcheer.