Tianma announced on November 14, 2024, that from November 12 to November 13, the company hosted an investor and industry tour in Shenzhen, attended by organizations such as CITIC Securities and other key institutions.
Key points discussed included the following:
Q1: Can you introduce the Q3 performance and the reasons for profit improvement?
A: In the first three quarters of this year, the company’s main business segments continued to show positive development. As product specifications continued to improve and the product structure was optimized, efforts to reduce costs have progressed significantly. As a result, the company’s overall gross margin has shown a quarter-on-quarter increase. The flexible AMOLED smartphone display business, which had a major impact on profits, saw a good profit improvement. In Q3, the TM17 flexible AMOLED mobile display business achieved positive quarterly gross profit. Furthermore, the company’s automotive display business also showed substantial growth, with increasing scale and value driving profit expansion. As a result, the company achieved a net profit of approximately 2 billion RMB in Q3, reversing the loss from the previous quarter.
Q2: Can you introduce the company’s business revenue structure?
A: The company’s products are applied in various downstream markets, including smartphones, IT devices, wearables, as well as automotive and specialized displays such as those used in industrial products and medical fields. In the first three quarters of this year, the company maintained a steady revenue stream. The automotive display segment accounted for approximately 35% of total revenue, showing more than a 40% year-over-year growth. The smartphone display business has also optimized its structure, with the TM17 flexible AMOLED mobile display segment accounting for over 20% of total revenue, a 25% year-over-year increase.
Q3: Can you share the development of the company’s flexible OLED smartphone business and its production efficiency? What are the expectations for future shipments and price trends?
A: The company’s OLED smartphone business has maintained rapid growth in the first three quarters of this year, with significant improvements in product specifications. The two flexible OLED production lines saw a 76% year-over-year increase in the shipment of mobile panels. Innovation in technology and brand penetration continued to advance. The demand for OLED smartphone displays remained stable, and both production lines maintained high utilization rates, supporting flagship models from multiple brands. As the penetration of flexible OLED technology in smartphone displays continues to rise, the average price of flexible OLED panels has seen noticeable recovery and remains stable, though it may fluctuate with external demand and specification adjustments. The company plans to further enhance its high-end production capacity, such as HTD and foldable displays, to reinforce its position in flagship products and boost competitiveness.
Q4: Can you discuss the development of the company’s automotive business?
A: Despite facing challenges in the automotive market, including fierce competition and price pressures, the automotive display market continues to grow, driven by the increasing adoption of new energy vehicles (NEVs), the rise of intelligent cockpit technologies, and new demand scenarios. The company has seized market opportunities, expanding new business growth points. In the first half of this year, the automotive display segment continued to lead in global market share, maintaining the top position in the instrument cluster market and HUD (Head-Up Display) market.
In the first three quarters, the company’s automotive display product shipments grew faster than the industry average, and revenue from this segment increased by over 40% year-over-year. Notably, the company began large-scale deliveries of automotive electronics products to international OEMs. The company’s LTPS technology has quickly penetrated the automotive display sector, with LTPS automotive display revenue growing by over 250% year-over-year.
The automotive display business remains a core part of the company’s “2+1+N” strategy. The company boasts a diversified technological portfolio, including a-Si, LTPS, IGZO, Mini-LED, AMOLED, and Micro-LED technologies. This enables the company to offer comprehensive solutions for automotive display needs, supporting diverse customer requirements across multiple technologies and specifications.
Q5: Can you introduce the company’s plans for the TM19 production line in the IT sector?
A: The IT sector is a key area for rapid growth within the company’s “2+1+N” strategy, and the TM19 production line is a crucial part of this. While LCD technologies, including a-Si, oxide, and LTPS, will still dominate in the IT sector for some time, the company’s TM19 line will supplement its current LTPS-LCD capabilities. This line supports the development of TFT-LCD technology for IT applications and offers a differentiated advantage with multiple technological solutions.
The TM19 production line incorporates advanced processes that will allow the company to achieve significant progress in large-size, narrow bezel, high refresh rates, low power consumption, and integrated touch capabilities. As the company’s first high-generation production line, it will leverage the experience of building and operating similar lines to optimize its efficiency and maintain a competitive edge.
Q6: What is the progress of new production lines?
A: The company’s new production lines, including TM19 and TM20, are progressing smoothly. Both lines have entered the trial production stage and are actively developing products and onboarding clients. The TM19 line has already begun mass production of its first IT products, while TM20 has delivered automotive modules to customers, marking a significant milestone in their ramp-up process.
Q7: Can you explain the company’s plans for the next-generation Micro-LED technology?
A: The company began exploring Micro-LED technology in 2017, and in 2022, it co-invested in a specialized Micro-LED production line, covering the full process from mass transfer to display modules. This line lit up its first product on June 26, 2024, and is expected to reach small-scale production capacity by the end of 2025.
The company’s LTPS glass substrate process has been a significant advantage in the Micro-LED industry. The company’s primary focus for Micro-LED applications includes automotive displays and seamless display applications, while also exploring large-size screens, consumer displays, wearables, and professional displays. Several industry-leading products, including high transparency, seamless stitching, ultra-low reflection transparency, and ultra-high PPI, have been released. The company is confident about the future of Micro-LED and continues to drive the Micro-LED ecosystem forward through collaboration with upstream and downstream industry players.
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