On March 20, TCL Technology said when accepting investors' questions that TCL Huaxing's t1, t2, t6, and t7 production lines are in Shenzhen. At present, the two 8.5 generation lines of t1 and t2 are in full production and sales, and the first 11th generation line is t6. By the end of 2019, the t7 plant of the second 11th generation line has been capped and under construction as planned.
Among them, the Huaxing Optoelectronics Module Integrated Intelligent Manufacturing Industry Base-High Generation Module Project is used as a supporting module factory for G8.5 and G11 line. The project is positioned to provide high-end, large-sized display module products. Since the start of production, TCL Huaxing has exerted the Gemini factory aggregation effect to improve the efficiency of capacity expansion through the efficient production line layout; the industrial chain integration advantages and extreme efficiency cost measures have been used to maintain the net profit margin and EBITDA% industry-leading level.
It is understood that TV panel prices reached a trough in 2019Q3, some LCD production capacity of overseas manufacturers has gradually withdrawn, and terminal manufacturers' inventory has returned to a relatively healthy level. With the improvement of the supply and demand relationship, panel prices have stabilized at the end of 2019 and have continued to rise since the beginning of 2020. In the long run, the annual supply increase will narrow in the future, while benefiting from 4K / 8K upgrades, clear large-scale trends, and booming overseas emerging markets. The overall supply and demand of the panel will continue to improve. TCL Huaxing continues to maintain the world's leading operation efficiency and efficiency through efficient production line investment layout, industry chain synergy advantages and leading management levels, and has a cycle resistance capability that is significantly superior to peers. At the same time, with the successive production lines, TCL Huaxing's production capacity will steadily increase to the top two in the world.
In terms of small-size panels, TCL Huaxing's 6th-generation flexible AMOLED production line (t4) in Wuhan was mass-produced in December 2019, and curved screens and flexible folding screens have been mass-produced and shipped to branded mobile phone manufacturers. t4 has achieved a strong lead in differentiated technologies such as under-screen camera, extremely narrow borders, and foldable.
In terms of new technologies, TCL Huaxing actively promotes the development of new display technologies, materials and core processes and ecological construction, and comprehensively leads the development of next-generation display technologies. As the only “National Printing and Flexible Display Innovation Center” in the industry, Guangdong Juhua has launched a 31-inch 4K RGB full quantum dot printing QLED prototype. Huarui Optoelectronics has developed a new type of OLED key material with independent IP. The performance of red and green materials and solution-processed red materials based on the evaporation process is in the leading position in the industry. New technologies are mainly positioned in the high-end market in the early stages of mass production. To gradually sink to the mainstream market, continuous improvements in processes and upstream and downstream industrial chains are needed to drive costs down. In the field of large size, with the development of improved technology such as MiniLED on TFT backlight, QD light quality, 8K, LCD is still the mainstream display technology for a long time.
In April last year, TCL Technology completed the reorganization and divestiture of smart terminals and related supporting businesses, shifted from related diversified operations to specialized operations, focused on the development of the technology industry, promoted the integration of the semiconductor display and materials business industry chain, and led the industry to develop industries. Finance and investment business, dedicated to the world's leading smart technology industry group.
At present, the main business structure of TCL Technology is the three major segments of semiconductor display and materials business, industrial finance and investment business, and other businesses. Adhering to the new development strategy of becoming the world's leading smart technology company, TCL Technology will gradually follow the principle of maximizing shareholder value Withdraw from other businesses; based on the endogenous development momentum, vigorously promote the global leadership in products, technologies and ecology of the semiconductor display and materials business, and take the opportunity to find opportunities for mergers and reorganizations in high-tech, capital-intensive, long-term fields, and configure the foundation for technological development , Core, and Chinese companies can build sustainable leading assets, build new momentum for the company's business growth, and achieve high-quality, sustainable development.
Since the occurrence of the new coronavirus epidemic in 2019, TCL Technology has taken the protection of employees' lives and health as the first priority, and has adopted a series of epidemic prevention and control and production measures. At present, the production and operation of Wuhan Huaxing's t4 production line is normal and orderly.
At present, the company's material inventory can meet the current production needs. Due to the impact of the epidemic, some of the production material supply may have short-term lag due to factors such as delayed resumption of work by suppliers and poor logistics. The company has already actively coordinated logistics channels and negotiated guarantees with strategic suppliers. , Promote materials to enter the market as needed. The company will adjust its production and operation strategies in a timely manner according to the epidemic situation and market changes. At present, the company's epidemic situation is in a good state of prevention and control, and TCL Huaxing's production and operation are normal and orderly.
