On December 13, Tianma Microelectronics Co., Ltd. (stock code: 000050), released the latest Investor Relations Activity Record, addressing 22 key questions from investors.
Key Business Developments:
1. What is the progress of Tianma’s Micro-LED business?
A: Currently, the company’s Micro-LED business focuses on applications in automotive displays and splicing displays, while exploring large-sized screens, consumer displays, wearable displays, and professional displays. The company has already started innovative projects with leading automotive manufacturers, PID terminal manufacturers, and consumer brand customers, and has jointly launched the first product in the PID field with partners. The company’s Micro-LED production line achieved product activation on June 26 this year, and small-batch production is expected to be ready by the end of 2025.
2. Does the company currently have production capacity for OLED stacking technology? How is it laid out?
A: Currently, the company has two flexible AMOLED production lines, both equipped with Tandem capacity. On November 6 this year, the company unveiled its proprietary SLOD (Stacked Layer OLED Device) at the Innovation Conference, which further optimizes Tandem technology. With this unique device design, the product’s power consumption is significantly reduced by 30% compared to conventional Tandem stacked devices. The company has achieved mass production capabilities for SLOD technology and expects to incorporate it into flexible AMOLED automotive display products in 2025.
3. What are the specific market expansion plans for automotive displays in 2025?
A: This year, the company’s automotive display business has been rapidly growing, maintaining the number one global market share in the automotive sector and instrument panel market. Additionally, the company ranks first in the HUD (head-up display) sector. In the first three quarters, revenue from automotive business grew by over 40% year-on-year. The company’s automotive electronics business, focused on international automotive manufacturers, has entered large-scale delivery with an increasing share from leading new energy vehicle customers. This supports the rapid growth of the company’s automotive display business. In the first three quarters, new project opportunities covered OLED, Local Dimming, automotive electronics, new energy, and advanced panoramic head-up display technologies. The company will leverage its traditional automotive display, automotive electronics, and new energy vehicle businesses to drive its continued growth in the automotive sector.
4. Has the company met its shipment target of 70 million OLED smartphone displays?
A: In the first three quarters, the company’s OLED smartphone business continued to grow rapidly, with shipments of flexible AMOLED panels from its two production lines increasing by approximately 76% year-on-year. As high-end production capacities such as HTD and foldable displays are further released, the company continues to strengthen its capabilities in flagship products, aiming to increase its share in high-end projects and improve competitiveness.
5. What are the specific plans for expanding the IT display business as part of the company’s “2+1+N” strategy?
A: The IT display business is a fast-growing sector in the company’s “2+1+N” development strategy. The company’s IT business is currently based on the LTPS-LCD production lines, which cover the full range of LTPS products. The TM19 production line, a joint venture established in 2022, provides high-generation a-Si and oxide lines to support the development of the IT display business alongside new display module lines (TM20). This will enhance the company’s IT sector capabilities and help retain customer loyalty with differentiated solutions.
6. Does the company have any plans in the low-altitude economy?
A: The company is closely monitoring demand trends in the low-altitude economy. The company’s products are suitable for applications in this sector, and related projects are underway to meet the growing display needs in various everyday life scenarios.
7. What are the future plans for the flexible AMOLED smartphone display business?
A: The company has achieved full coverage of domestic mainstream brand customers in the flexible AMOLED smartphone display sector and continues to deepen collaborations. With the release of HTD and foldable displays, the company aims to strengthen its capabilities in flagship products and increase competitiveness.
8. Does the subsidiary involve integrated circuit design business?
A: The company continues to focus on its core display business and is not involved in integrated circuit design as of now.
9. Who are the main competitors in the small-to-medium size display sector? How does the company maintain its competitive advantage?
A: The display industry has always been in global competition, with each company having its own characteristics and strategies. The company respects the contributions of competitors and focuses on enhancing its own capabilities. The company has been developing the small-to-medium-size display sector for over 41 years and has a competitive edge in technology, industrial layout, and customer base. The company will continue to refine its differentiated competition strategy, optimize production lines, and learn from industry leaders.
10. What is the status of the trial production of the TM19 and TM20 production lines?
A: The TM19 and TM20 production lines are actively advancing product development and customer integration. The first modules for MNT were shipped on November 29, and automotive modules have already been delivered to customers. The company will steadily advance capacity release and ramp-up.
Financial Outlook:
11. What are the market and business factors behind the expected loss in net profit of 420 million to 560 million RMB for the first half of 2024?
A: The company expects a net loss of RMB 420 million to 560 million (approximately USD 58 million to 77 million) for the first half of 2024, showing an improvement of 60.68% to 70.51% year-on-year. In the first half of this year, the company’s consumer display business profitability has quickly recovered, especially in the smartphone display sector, which has a high revenue share and significant impact on profits. With the continuous optimization of the automotive products, the company’s automotive business has seen significant profit growth, contributing to the overall improvement in profitability.
12. Will the profit improvement trend continue into the fourth quarter of 2024?
A: In the first three quarters, the company’s main business sectors have been developing well, with continuous product specification enhancements, optimization of product structure, and effective cost-reduction measures. As OLED capacity continues to be released and markets for automotive electronics and IT sectors gradually open up, the company will continue to strengthen core capabilities and promote high-quality development. Specific fourth-quarter performance will be disclosed in the company’s official announcements.
13. How does the company view the low gross margin and net profit margin, and what measures are in place to address them?
A: In the first three quarters, as product specifications continue to improve and product structures are optimized, the company has achieved increased gross margin quarter-on-quarter. The flexible AMOLED smartphone display business, which has a significant impact on profit, has seen improvement in profitability. Additionally, the growth of the automotive business and its value enhancement have further expanded the profitability of the automotive display sector, contributing to the improvement of overall profitability.
14. What is the outlook for the company’s operations in Q4? Can it achieve profitability as in Q3?
A: In the first three quarters, the company’s main business sectors have been developing well, and with continuous improvements in product specifications and structure, the company’s performance continues to improve. With ongoing OLED capacity release, as well as the opening of markets in automotive electronics and IT, the company will continue to strengthen core competencies and promote high-quality development. The specific Q4 performance will be disclosed in the company’s official announcements.
15. Are there any major investment or M&A plans in 2025?
A: If there are any related plans, the company will disclose them as required by regulations.
16. How does the company plan to address the long-term undervaluation of its stock?
A: The company fully understands investors’ concerns regarding the stock price and is closely monitoring relevant national laws and policies. The company will continue to improve corporate value by focusing on sustainable growth, enhancing shareholder value, and improving communication with investors.
Industry Chain:
17. Is it true that Apple has chosen Tianma to supply OLED panels for the new HomePod?
A: The company has maintained close cooperation with leading brands in the display industry, achieving win-win collaborations with various partners along the supply chain. Specific customers and partnership details are confidential, please understand.
18. Is the company currently cooperating with Huawei or Apple?
A: The company has maintained close cooperation with leading brands in the display industry, achieving win-win collaborations with various partners along the supply chain. Specific customers and partnership details are confidential, please understand.
19. Does the company have a partnership with Apple, and has it entered the Apple supply chain system?
A: The company has maintained close cooperation with leading brands in the display industry, achieving win-win collaborations with various partners along the supply chain. Specific customers and partnership details are confidential, please understand.
Shareholder-related:
20. How many shares does AVIC International hold in the company as of now?
A: As of now, AVIC International directly holds 388,139,418 shares in the company. Additionally, its subsidiary, AVIC International Holdings Limited, directly holds 291,567,326 shares in the company.
21. How many shares does AVIC International Industry hold as of now?
A: As of now, AVIC International directly holds 388,139,418 shares in the company. Additionally, its subsidiary, AVIC International Holdings Limited, directly holds 291,567,326 shares in the company.
22. Hello, could you please tell me the latest number of shareholders as of December 10, 2024? Thank you.
A: As of December 10, 2024, the company has 78,703 shareholders (including credit accounts).
Related Link:
Tianma Microelectronics Co., Ltd., Investor Relations Activity Record:
https://pdf.dfcfw.com/pdf/H2_AN202412131641288035_1.pdf?1734081929000.pdf
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