OLED revenue exceeds 3 billion, Micro LED continues to iterate, and Visionox’s “goal” is clear

At present, screen display technology has become the core force driving the innovation and upgrading of the electronic information industry. Among them, OLED, as a mainstream display technology, is accelerating its penetration into all terminal applications. Visionox focuses on the emerging display business, focusing on the research and development, production and sales of OLED small and medium-sized display devices, as well as MicroLED products. In the first half of the year, Visionox achieved revenue of 3.411 billion yuan, a year-on-year increase of 23.72%, of which OLED product revenue was 3.223 billion yuan, a year-on-year increase of 20.13%, and revenue maintained steady growth. However, due to the increase in depreciation expenses and other costs caused by the fixed production line, as well as the huge initial investment in the industry, short-term income is difficult to cover the initial costs and other cyclical patterns, its net profit loss in the first half of the year was 1.149 billion yuan. In the first half of the year, Visionox maintained good and close cooperative relationships with internationally leading smartphone and smart wearable head brand customers such as Honor, Xiaomi, OPPO, vivo, ZTE, Nubia, Huami, etc. The share of top customers increased at an accelerated pace, shipments maintained a growth trend, and high-end products from many brand customers were successfully introduced. Among them, Visionox mass-produces foldable phones, Honor Magic 4, Honor 70 series and other high-end flagship phones for its top customers. It continues to consolidate its cooperative relationships with core brand customers and increase the proportion of supply to important brand customers. It is worth mentioning that Visionox has obtained the "Quality Management Award" issued by core customers through high-quality products and services.Gold Medal Award" and became the only display supplier for this award. In the medium-sized field, Visionox actively expands end customers in notebooks, tablets, AIOT and other fields, successfully introduces core customers into the IT product supply chain, and rapidly promotes the development and launch of new products with customers. At the same time, Visionox is increasing the technology development and ecological layout of innovative in-vehicle displays, actively promoting technological innovation, product development and supply, and more diversified cooperation in the future with core automotive industry chain companies, strengthening long-term planning for the in-vehicle display market, and will accelerate the continuous release of results in the future. In the Micro LED field, Chengdu Chenxian, a company in which Visionox has a stake, is in addition to wearable, large-size splicing and other Micro products. In addition to continuous iterative updates in the direction of LED products, it also actively cooperates with upstream and downstream head manufacturers to develop key equipment such as laser transfer, and independently develops a large-size glass-based TFT hybrid drive mass production solution, with a mass transfer yield of 99.95%. The report shows that Visionox invested 638 million yuan in R&D in the first half of 2022, an increase of 10.06% over the same period last year. It continued to make efforts in products with innovative technologies such as folding, medium size, high refresh rate, new pixel arrangement, under-screen photography, and low power consumption. It not only released its first 1. Hz low-power dynamic refresh rate AMOLED display, new VM6 material system and upgraded "double tripod" tripod-shaped pixel arrangement, and also provides the world's first under-screen camera.E-sports mobile phones and 165Hz ultra-high refresh rate AMOLED display mobile phones have achieved global leadership in multiple AMOLED display technologies. Visionox stated that it will continue to adhere to the strategy of "one strong and two new" in the future. "One strong" is to build a strong foundation for small sizes, and "two new" is to expand new areas of medium-sized applications and open up new tracks for large-sized. It is committed to achieving coordinated development of the industrial ecosystem and becoming a leader in the global emerging display industry.