Affected by the oversupply of products, the panel industry with good market conditions changed sharply this year. The price of products has been falling, with an annual reduction of about 20%, and some products have dropped by as much as 30%. Affected by this, the performance of many mainland panel manufacturers has declined, and even huge losses have occurred.
Among the mainland A-share companies, the main brands engaged in panel production are BOE A, Shentianma A, and Huadong Technology. Judging from the semi-annual report data previously disclosed by these companies, the performance is somewhat affected by market conditions.
East China Net's net profit for the first half of the year decreased by 328.50%, with a loss of 955 million yuan (the same below), mainly because the LCD panel market price dropped significantly compared with the same period of last year, and the corresponding asset impairment was 258 million. yuan. Moreover, the price of large-size panels of the main products increased in the second quarter, resulting in a 27.1% reduction in revenue in the first half of the year.
The performance of the display and display module products of Shentianma A decreased by 6.93% in the first half of the year. At the same time, due to fierce market competition and price adjustment of some products, its subsidiary Shanghai Tianma lost RMB 112 million and its performance decreased by 337. .1%.
Among the three major businesses of BOE, there are two areas that have achieved growth, with the display and sensor components decreasing by 10.22% annually. BOE said that the overall growth of the display device market was lower than expected, oversupply, and market prices all the way down.
Affected by the decline in panel prices, the performance of the world's major panel makers in the first half of the year has dropped significantly. In the first half of the year, the revenues of BOE, LGD, QunChuang, AUO, Huaxing Optoelectronics and Shentianma 6 panel manufacturers decreased by 10.2% year-on-year. The net profit of the five panel makers (excluding Huaxing Optoelectronics) decreased by 91.3%.
The decline in panel prices was mainly due to the over-investment in mainland panel production lines in recent years, resulting in overcapacity. An A-share listed company executive said that once the production line is started, it will not stop or reduce production. The loss caused by the suspension of production is sometimes greater than the surplus of products. Moreover, the current industry is fighting prices and grabbing the market.
Thanks to the decline in panel prices, global display shipments have ushered in the first growth in seven years.