Last year’s net profit was expected to exceed 5 billion. BOE, the “King of Panels” worth 100 billion, rushed to Zhuhai, and COB was mass-produced in less than a year.

In fact, BOE Crystal Core Technology has previously set up a COB production line in Beijing and has achieved mass production, covering the entire range of P0.9-P1.5 products. But last year, BOE established Zhuhai Jingxin in Zhuhai.

"We found that the market volume continues to grow, and Beijing's production capacity can no longer meet future demand. Therefore, we launched a new project in Zhuhai." Liu Yi said.

Previously, through Huacan Optoelectronics (300323) (300323.SZ), BOE had a Micro LED wafer manufacturing and packaging testing base in Zhuhai. The base will be put into operation in November 2024 and will be the first large-scale production base in the world.The mass-produced Micro LED production line is also the world’s first 6-inch Micro LED production line.

Now, about 31 kilometers away from the above-mentioned base, another Zhuhai Jingxin MLED production line has emerged in the Huafa Pingsha Electronic and Electrical Industrial Park.

Liu Yi said that Huacan Optoelectronics mainly focuses on the fields of compound semiconductors and LED light-emitting chips. LED light-emitting chip is one of the core components of mini/micro display products. In addition to investing in chip bases, BOE is also focusing on the processing and manufacturing of optical modules in Zhuhai Jingxin, forming an integrated industrial chain from chips to optical modules.

"This kind of vertical integration helps reduce costs, promote the development of new technologies, and at the same time strengthens collaborative cooperation with many local LED customers in Zhuhai and Guangdong (other cities), which has positive significance for market expansion, economic development and improvement of international competitiveness." Liu Yi said.

Liu Yi said that although MLED technology currently has a certain market size, it is still in development.Pre-exhibition period. MLED integrates optics, electricity, structure and precision chemical materials. To promote industrial development or transform into a consumer form, upstream and downstream collaboration is crucial. This synergy involves not only costs but also new technologies. Therefore, all parties need to collaborate from the early product technical architecture level to achieve more economical performance and better architecture.

The panel industry is picking up

This year, as the market sentiment rebounds, consumer demand has also begun to pick up, driving the recovery of panel procurement rhythm and shipments.

Wind data shows that as of March 13, among the 6 display panel listed companies in the A-share market (by industry theme), Longteng Optoelectronics (688055.SH) has released its 2024 annual report on February 28. Data shows that Longteng Optoelectronics' total operating revenue in 2024 will be 3.413 billion yuan, a year-on-year decrease of 9.77%. In terms of profit, it continued to lose money, with a net loss of 190 million yuan.

In addition, Shentianma A (000050.SZ), TCL Technology(000100.SZ), BOE A, and Visionox (002387) (002387.SZ) all released performance forecasts. Except for BOE's expected net profit increase during the reporting period, Shenzhen Tianma A and Visionox both showed continued losses, while TCL Technology reported a slight decrease. Asia World Optoelectronics (002952) (002952.SZ) has not released a performance forecast or annual report.

However, both Shentianma A and Visionox mentioned in their performance forecasts that "the consumer electronics industry is gradually recovering" and "the profitability of the consumer display business is quickly repaired".

TCL Technology announced that (in 2024) the profits of the semiconductor display business will increase significantly, and the net profit for the whole year will exceed 6 billion yuan. Benefiting from the impact of average production and sales on the supply side and domestic consumption promotion activities, the prices of major products have shown seasonal fluctuations within a narrow range, and the annual average price has maintained a steady increase.

BOE said that in terms of LCD, due to the supply-side insistence on on-demand production, the strong stimulus of the demand-side "old-for-new" policy, and the expansion of innovative applications, major application areas have shown structural improvements. TV applications grew significantly year-on-year, and the market in mainland ChinaThe growth trend resumed in the second half of the year, and the degree of large-scale production reached a new high. Driven by sports events and promotions, overseas market demand also showed a positive trend, and product prices fluctuated upward throughout the year.
In terms of flexible AMOLED, BOE will ship approximately 140 million pieces in 2024, continuing to grow year-on-year. The product structure has been significantly optimized, and the proportion of high-end products has increased significantly. Among them, BOE mass-produced and delivered the world's first 3-fold product, and the overall shipment of folding products increased by approximately 40%. In addition, BOE also mentioned that the MLED business strategic focus has begun to show results and its operations have improved significantly.

"In the field of commercial displays, MLED technology accounts for close to or more than half, and the market volume is growing at a rate of more than 10%. At the same time, display specifications are also constantly upgraded, with the pixel pitch shrinking from the traditional 2.5 mm to about 1.0 mm, and the resolution increasing from 2K to 4K or even 8K." Liu Yi mentioned that stimulated by the national subsidy policy this year, the technology penetration rate of MiniLED in the TV sector has also increased. At the same time, the automotive and consumer electronics fields, as offline growth lines, are also expected to achieve annual growth of more than 10% in the future.