Huaxing Optoelectronics' 11th-generation TFT-LCD and AMOLED new display device production line is expected to light up in Q4

On November 1, TCL Group stated in an investor survey that the key technology development and verification of the 6th generation LTPS-AMOLED flexible production line-t4 project is progressing steadily, and it is expected to achieve product points in the first half of 2019. bright. The 11th generation TFT-LCD and AMOLED new display device production line-t6 project is expected to be lighted up and put into production in the fourth quarter of this year.

Currently, Huaxing Optoelectronics has built a 4.5-generation flexible AMOLED experimental line in Wuhan, and has prepared the preliminary technical reserves for the rapid mass production of t4. The 11th-generation TFT-LCD and AMOLED new display device production line, the t6 project, is expected to be lighted up and put into production in the fourth quarter of this year. It will mainly produce 43-inch, 65-inch, 75-inch and other large-size new display panels. The 11th-generation ultra-high-definition display device production line-t7 project mainly produces and sells 65-inch, 70-inch (21:9), 75-inch 8K ultra-high-definition displays and AMOLED displays.

Regarding the production of new lines next year, TCL stated that from 2018 to 2020, China Star Optoelectronics, BOE, and Sharp Guangzhou will gradually achieve mass production, and the production capacity will increase. However, considering that the existing foreign manufacturers have made structural adjustments on the supply side, it is clear that they will gradually shrink the LCD business, transform the existing factories and production lines into other businesses, coupled with the continuous development of large-size, and the use of display panels The field is becoming more and more extensive. We believe that in the long run, the supply and demand of the panel industry are basically in a balanced state.

For the third quarterly report of TCL Group, from January to September 2018, TCL Group achieved operating income of 82.24 billion yuan, a year-on-year increase of 0.03%; of which, the main business income was 81.49 billion yuan, a year-on-year increase of 0.37%; The net profit attributable to shareholders of listed companies was 2.49 billion yuan, a year-on-year increase of 30.6%.

There are four reasons for the growth of the group’s performance: First, the profitability of the smart terminal business has grown steadily, and the efficiency and benefit indicators of the semiconductor display business continue to maintain the industry’s leading position; the second is that the profitability of overseas markets continues to increase, and TCL Electronics The expansion of key customers and channels has achieved remarkable results, and the performance of key regions has achieved rapid growth. TCL Communications has reduced losses significantly year-on-year and achieved profitability in the third quarter; the third is to deepen reform and transformation, improve operating efficiency, reduce expense ratios, and return to parent net profit and per capita Labor efficiency has improved significantly; fourthly, the Group has accelerated the optimization and adjustment of its industrial and capital structure, reorganized, divested or sold non-core industries and loss-making businesses, focused on the main business, and improved asset turnover and profitability.

It is worth mentioning that with regard to the impact of the Sino-US technology embargo on the procurement of Huaxing Optoelectronics’ core materials and equipment, TCL Group stated that the construction of Huaxing Opto’s new t6 and t4 plants has only a few non-critical equipment from Imported from the United States, the supplier confirms that it can deliver on time. The Sino-US trade war has basically no impact on this and will not affect the construction process of the 11th generation line of Huaxing Optoelectronics.

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