Zhaochi Holdings Leverages AI Computing Power for Takeoff, Long-term Shareholder Oriental Pearl Becomes "Behind-the-Scenes Winner"

Amid industry adjustments, Zhaochi Co., Ltd. defied the trend and rose sharply, with a market value surpassing 50 billion yuan. Behind the surge in stock price are multiple factors: explosive demand for computing power driven by AI and OpenClaw, technological breakthroughs in Micro LED CPO, and positive developments in optical modules. This also allowed Dongfang Mingzhu, which had invested early and held firm for nearly ten years, to finally reap the capital benefits.

On March 13, Zhaochi Co., Ltd. opened strongly and hit the daily limit, closing at 11.94 yuan, with its market value once again exceeding 50 billion yuan. Since the market rally began in June last year, the company’s stock has increased by over 183% in ten months.

The core driver of this rally is the exponential growth in demand for computing power sparked by AI and the popularity of OpenClaw. The launch of OpenClaw has transformed AI agents from “talking” to “doing,” requiring large models and tools, which has caused tokens to become scarce and directly boosted demand for infrastructure computing power.

As a key component of computing infrastructure, CPO has become a hot investment target. Public data shows that since Zhaochi Innovation acquired a 55.63% stake in optical module company Ruiguang Optical Network for 1.34 billion yuan in 2023, related business has gradually scaled up. According to financial reports, in the first half of 2025, Zhaochi’s optical module revenue was 309 million yuan, accounting for only 3.64% of total revenue. However, its growth potential is highly recognized by capital markets.

As an industry newcomer, Zhaochi has focused on Micro LED CPO, which recently achieved technological breakthroughs. Its low energy consumption makes it a promising alternative to optical interconnects, attracting strong market interest.

Good news continues to arrive. On the afternoon of March 12, Zhaochi announced progress in external investments and construction. The first batch of 400G/800G parallel transceiver module production lines has completed equipment installation and debugging, entering small-scale production; R&D of 1.6T optical modules is also progressing rapidly.

Looking back at Zhaochi’s development history, its early core business was set-top box manufacturing. In 2011, leveraging its experience in TV business, the company began transforming into the LED field. In 2023, the company identified optical communications as its next strategic focus, forming a three-pronged business pattern.

Financial data confirms the effectiveness of Zhaochi’s transformation. In the first half of 2025, revenue was 8.483 billion yuan, down 10.89% year-on-year. Products in audio-visual and communication electronics, the company’s mainstay, declined 18.18%, while LED revenue rose 8.67%, partially offsetting traditional business pressures. In Q3 2025, the company stated that emerging businesses like LED and optical communications contributed over 60% of profits.

Loyal ShareholdersDongfang Mingzhu******

As Zhaochi soared on the wave of computing power, its long-time partner, Dongfang Mingzhu, also drew market attention.

Back then, under the leadership of its controlling shareholder SMG, Dongfang Mingzhu merged with BesTV, becoming the first A-share cultural media giant valued at over 100 billion yuan, holding rare internet licenses and a vast copyright library. However, due to its B2B business model, these resources struggled to reach the consumer market. Meanwhile, Zhaochi was seeking to shift from manufacturer to operator, creating a strategic fit.

In June 2015, Zhaochi announced a private placement, issuing 1.78 billion and 890 million shares to Dongfang Mingzhu and its controlling shareholder SMG at 12.36 yuan per share, with respective investments of 2.2 billion and 1.1 billion yuan. A 36-month lock-up period was agreed upon.

To deepen cooperation, in August of that year, Dongfang Mingzhu transferred 63% of its subsidiary Funshion Network to Zhaochi for 966 million yuan.

At that time, Zhaochi’s stock price was in the 8-9 yuan range, and the private placement price was higher than the market price. Dongfang Mingzhu still approved the plan in August. In October, Dongfang Mingzhu announced that its controlling shareholder SMG would not participate in this private placement.

After the share transfer in Q4 2016, Dongfang Mingzhu invested 179 million yuan to acquire shares in Zhaochi. Gaining additional shares alongside Gome Electric, which aimed to control upstream retail, they became the second and third largest shareholders.

In 2017, Zhaochi issued a large-scale capital reserve transfer, converting every 10 shares into 15, which expanded holdings for Dongfang Mingzhu and Gome Electric from 179 million and 30 million shares to 447 million and 75 million shares respectively.

In 2018, due to deteriorating fundamentals and pledge risks, Zhaochi’s stock price plummeted, and Dongfang Mingzhu’s market value of holdings also declined. By the end of 2018, its shareholding value had fallen from the initial 2.2 billion yuan to 851 million yuan, a drop of over 60%.

With the recovery of Zhaochi’s LED business, its stock gradually improved from 2019, attracting market capital. In recent years, foreign institutions like HKEX, mutual funds, and industrial investors have entered, gradually replacing Gome Electric among the top ten shareholders.

Since then, Zhaochi’s stock has remained relatively stable, with Dongfang Mingzhu consistently holding around 447 million shares, ranking among the top shareholders. Between 2020 and 2021, after three rounds of reduction, its holdings stabilized at 286 million shares. As of Q3 2025, Dongfang Mingzhu remains the third-largest shareholder.

In the second half of 2025, driven by the AI infrastructure wave, Zhaochi’s stock price surged. Dongfang Mingzhu, a steadfast long-term investor, successfully “unlocked” gains in this rally.

Based on current stock prices, despite some reduction, Dongfang Mingzhu’s stake value in Zhaochi has risen from 2.2 billion to 3.4 billion yuan. Including dividends over the years, its total return over nearly a decade amounts to nearly 1.3 billion yuan.

LeadersGu Wei******

Zhaochi’s ability to consistently hit industry highs owes much to founder Gu Wei’s leadership.

As the founder of a company valued in the hundreds of billions, Gu Wei is known for being low-profile. Public information indicates he was born in 1965 in Nanchang, Jiangxi, with little disclosed about his early entrepreneurial experience.

Gu Wei’s entrepreneurial journey began in the 1990s, during the DVD industry’s boom. With deep understanding of supply chain, manufacturing, and channels, he founded Kaixin Da Multimedia in 1997. He quickly captured market share through cost control and quality, leading the company to list on the Singapore Exchange within six years, becoming China’s first overseas-listed DVD company. However, as price wars and profit erosion intensified, Gu Wei chose to retreat in 2004, selling assets to prepare for a second venture.

In 2005, at age 40, Gu Wei founded Zhaochi Multimedia (the predecessor of Zhaochi Co., Ltd.) in Shenzhen, starting his second entrepreneurial phase. Amid industry reshuffling, he shifted from following trends to focusing on digital set-top boxes and TV ODM.

In early days, Gu Wei led the team in pioneering a standardized component approach for TV manufacturing, greatly improving efficiency and reducing costs. Within two months, products achieved mass production and quickly gained European market share. The company became a hidden champion of global set-top boxes.

Five years after founding, Zhaochi listed on the Shenzhen SME Board, achieving a rare fast-track from small workshop to industry leader. A year later, Gu Wei launched the first major strategic transformation, entering the LED field, and sought to shift from traditional manufacturer to content operator through cooperation with companies like Dongfang Mingzhu.

In 2018, Gu Wei attempted a partnership with Evergrande, aiming to enter the smart home market with LED, but the debt crisis forced the company to recognize large bad debts. To mitigate risks, Gu Wei transferred nearly 85.22% of Zhaochi Supply Chain to Huizhou Maiwei New Power Technology Co., Ltd. and Huizhou Yiwei Technology, affiliated with former director姚向荣. Subsequently, Gu Wei’s controlled Nanchang Zhaotou bought out the stakes of two strategic investors for 3 billion yuan, completing risk clearance.

After years of strategic layout, Gu Wei’s LED business has now borne fruit. The company leads in Mini RGB chips, COB display modules, and has entered high-end supply chains like Samsung and Sony. LED has become the core profit driver, contributing over 30% of profits in the first half of 2025.

In 2023, to keep pace with the computing power era, Gu Wei led the company’s third transformation, acquiring Ruiguang Optical Network and entering the optical communication field. The optical chip and module production lines launched in December 2024 are nearing completion, with years of groundwork beginning to pay off.

Chief Editor | Chen Bin