VESON HLDG (01399) reported its annual results for the period ended 2025. The Group achieved revenue of RMB5.226 billion, representing a decrease of 2.23% year-on-year. Profit attributable to owners of the company was RMB21.543 million, a turnaround from a loss compared to the same period last year. Earnings per share were 1.98 fen. During the period from January 1, 2025, to December 31, 2025, over 90% of the Group's sales revenue was derived from its ODM business. Core order volumes from major ODM customers remained generally stable. Compared to the same period last year, the Group's sales volume of ODM battery products experienced overall growth. The majority of this ODM sales revenue came from the smartphone and tablet markets within the consumer electronics sector. During the review period, approximately 63.5% and 18.1% of the Group's ODM sales revenue were attributable to sales of mobile phone batteries and tablet batteries, respectively. The Group's production facilities are primarily located in China, leveraging advantages in mass production and strong industrial design capabilities. The customer base and product mix for the ODM business did not change significantly during the review period. However, as the mobile phone market matures, growth potential has gradually diminished. Revenue from mobile phone batteries decreased due to a general decline in both sales volume and average selling prices. Despite this, the Group continued to optimize its production processes and enhance production efficiency through equipment redesign and upgrades, leading to a general improvement in the profit margin for ODM battery products during the review period. These efficiency gains positively impacted the overall profitability and operational performance of the ODM business. Nevertheless, global economic weakness has ultimately led to extended mobile phone replacement cycles. Overcapacity in the mobile phone industry chain has intensified competition in the domestic market, further compressing profit margins for mobile phone products and related accessories. To mitigate the impact of reliance on a single product category on the overall business, the Group is actively broadening its product and technology platforms. This strategy aims to diversify revenue and profit sources, thereby reducing dependence on the mobile phone battery business. The Group believes that for the foreseeable future, smartphones will remain the core device for personal entertainment, consumption, and social interaction. Their utility for light productivity tasks is also continually being enhanced, and no new technological terminal has yet emerged that can truly replace the smartphone. Simultaneously, smartphones themselves continue to evolve and upgrade. The high-end market, represented by foldable-screen phones, not only enriches product forms but also offers users differentiated application, content, and operational experiences.