Product Structure and Market Focus - The company has been optimizing its product structure since 2013, focusing on mid-to-high-end products and high value-added products, primarily in the consumer sector with smartphones as the main product line [2] - In 2013, the company mainly produced WVGA and qHD products, shifting to HD products in 2014, and expects to have more FHD products in 2015 [2] - The specialized display market encompasses approximately 30 sub-markets, with a focus on automotive, industrial control, medical, HMI (Human-Machine Interface), and financial POST machines [3] Profitability Comparison - Static analysis shows that specialized display products have higher profit margins than consumer products due to higher market entry barriers, reliability, and quality requirements [3] - Dynamic analysis indicates that if the company can align with mainstream product trends and market demands, consumer products can also achieve significant profits, especially given the large market demand for smartphones [3] Automotive Sector Insights - The company has nearly 20 years of experience in the automotive sector, with increasing trends in colorization and larger screens [3] - The growth of the automotive market, along with the rise of smart and connected vehicles, is expected to drive significant growth in the company's specialized display business [3] - The company supplies automotive displays to global leading automotive electronics manufacturers through instrument assembly suppliers [3] Competitive Advantages - The company has over 30 years of experience in the small and medium-sized display sector, providing advantages in management, technology, product quality, and pricing compared to foreign competitors [3] - The company is closer to customers in the domestic market, allowing for faster response times and long-term supply guarantees [3] Strategic Goals and Future Developments - The company aims to become a leading player in the global small and medium-sized display sector, with plans to expand cooperation with major clients like Apple and Xiaomi based on market trends and customer needs [4] - In 2014, the company announced investments in two new LTPS production lines to enhance market penetration and customer coverage [4] - The company initiated the first domestic AM-OLED pilot line in 2010, with plans for mass production and a new production line expected to be completed by the end of 2015 [4][5] Government Support and Investment - The government is increasingly supporting new display technologies, with the flat panel display industry being part of the national strategic emerging industries development plan [5] - The investment amount for the Wuhan G6 LTPS project is 12 billion RMB, with a planned capacity of 30,000 sheets of 6th generation LTPS TFT glass substrates per month [5]

Group 1: Product Development and Technology - The company has developed in-cell and on-cell touch modules independently, targeting high-end smartphones with in-cell technology and mid-range smartphones with on-cell technology [1] - The company began mass production of its in-cell touch display solutions in 2014, achieving industry-leading status [1] - The G5.5 LTPS production line has achieved full-scale production with leading yield rates in the industry [3] - The company is constructing two G6 LTPS production lines, with the first key equipment installed in just 11 months, significantly faster than the global average of 18-24 months [3] - The company has launched the world's first 8K small-sized ultra-high-definition display screen, achieving a pixel density of 847 PPI, which is 4-5 times higher than mainstream tablet screens [5] Group 2: Financial Performance and Projections - The company expects the non-public offering to enhance asset quality, profitability, and core competitiveness, with Xiamen Tianma generating revenue of 1.108 billion yuan and a net profit of 196 million yuan in the first half of 2015 [2] - The projected average annual sales revenue from the new projects is approximately 10 billion yuan, with an average annual profit of about 1.1 billion yuan [4] - The investment recovery period for the new projects is estimated at 8.33 years, with an internal rate of return of 10.43% [4] Group 3: Market Position and Strategy - The company has established a strong presence in the automotive display market, with a 118% year-on-year growth in automotive sales [3] - The company focuses on high-value customers and has deep partnerships with major global smartphone manufacturers, continuously increasing its market share in the mid-to-high-end segment [7] - The company is actively expanding into emerging markets such as automotive, smart home, and wearable devices, while maintaining its advantages in industrial control and medical fields [7] Group 4: Research and Development - The company has invested in flexible display technology and has been developing naked-eye 3D display technology since 2006, holding over 170 related patents [8] - The company is also advancing its AM-OLED technology, with the G5.5 AM-OLED production line successfully lit and entering mass production [8] - The company has a strong commitment to R&D, with a focus on innovative technologies such as 3D displays, LTPS, AMOLED, and flexible displays [6]

Financial Performance - The company's operating revenue for 2021 was CNY 31,829,213,790.40, representing an increase of 8.88% compared to CNY 29,232,745,052.03 in 2020[15]. - The net profit attributable to shareholders for 2021 was CNY 1,542,457,101.05, a growth of 4.61% from CNY 1,474,521,450.09 in 2020[15]. - The net profit after deducting non-recurring gains and losses decreased by 22.30% to CNY 687,017,436.92 in 2021 from CNY 884,202,505.25 in 2020[15]. - The net cash flow from operating activities for 2021 was CNY 5,052,998,088.05, down 24.32% from CNY 6,676,875,433.83 in 2020[15]. - The total assets at the end of 2021 were CNY 80,432,335,677.26, an increase of 9.35% from CNY 73,557,804,389.16 at the end of 2020[15]. - The net assets attributable to shareholders at the end of 2021 were CNY 34,872,616,733.20, up 3.89% from CNY 33,568,338,364.22 at the end of 2020[15]. - The basic earnings per share for 2021 was CNY 0.6276, a decrease of 7.01% from CNY 0.6749 in 2020[15]. - The weighted average return on net assets for 2021 was 4.51%, down from 5.05% in 2020[15]. - The company reported a total of CNY 8,272,211,824.65 in revenue for Q1 2021[18]. - The company experienced a net profit of CNY 518,581,903.66 in Q1 2021[18]. - The company reported a non-operating income of ¥865,920,736.73 in 2021, an increase of 26.4% compared to ¥685,432,542.98 in 2020[19]. Dividend Distribution - The company plans to distribute a cash dividend of 0.70 CNY per 10 shares to all shareholders, based on a total of 2,457,747,661 shares[2]. - The cash dividend proposed is 0.70 yuan per 10 shares, totaling 172.04 million yuan, which represents 100% of the profit distribution[140]. Corporate Governance - The company emphasizes the importance of accurate financial reporting and has ensured that all board members attended the meeting to review the annual report[2]. - The company has made two revisions to its articles of association during the reporting period, reflecting its commitment to governance[88]. - The company has a complete and independent organizational structure, adhering strictly to its articles of association[90]. - The company has no significant differences in governance practices compared to regulations set by the China Securities Regulatory Commission[88]. - The company has established a comprehensive information disclosure management system, ensuring transparency and compliance with relevant laws and regulations[88]. - The company is committed to maintaining transparency and accuracy in its financial reporting and corporate governance practices[96]. Risk Management - The company has established risk control measures for foreign exchange derivative transactions, ensuring compliance with internal management systems[67]. - The company has established a comprehensive risk management and internal control system, with a focus on identifying and mitigating major risks[145]. - The company is focusing on risk management and business continuity to improve its ability to respond to external environmental changes[78]. - The company recognizes potential macroeconomic risks due to ongoing global pandemic developments and economic uncertainties[77]. - The company is aware of the competitive landscape in the display industry and the need for timely updates to technology and products[78]. Research and Development - The company is actively expanding its R&D capabilities, having signed a partnership with Xiaomi to establish a joint laboratory for new display technologies[25]. - The company’s innovation center focuses on advanced technologies such as foldable displays and under-screen cameras, enhancing its competitive edge in the market[24]. - Research and development expenses decreased by 1.29% to CNY 1.998 billion[38]. - The company is investing in research and development to innovate new products that align with market trends and customer needs[96]. - The company has established a performance evaluation and incentive mechanism to enhance employee productivity and engagement[87]. Market Position and Strategy - The company achieved global first in shipments for LTPS smartphones and automotive TFT displays, and second in rigid OLED smart wearables[23]. - The company is committed to expanding its market share in the rigid wearable market, aiming to achieve the highest global shipment volume[76]. - The company plans to enhance operational efficiency and strengthen core competitiveness through digital transformation and innovation[77]. - The company aims to maintain its leading position in the LTPS mobile phone market, with a 100% coverage of major customer product lines[76]. - The company is actively pursuing market expansion, targeting a 25% increase in market share in the Asia-Pacific region over the next two years[116]. Environmental Responsibility - The company has established pollution control facilities, including wastewater and air treatment systems, to meet emission standards[157]. - The company has obtained all necessary environmental permits for its projects, including environmental impact assessments and discharge permits[158]. - The company conducts regular monitoring of pollutants through third-party agencies and has installed automatic online monitoring systems for key pollutants[160]. - The company has set annual energy-saving targets and implemented energy-saving projects, contributing to carbon emission reduction[162]. - The company is committed to improving its sustainability practices, with a goal to reduce carbon emissions by 20% by 2025[111]. Employee Management - The total number of employees at the end of the reporting period was 26,797, with 2,897 in the parent company and 23,900 in major subsidiaries[134]. - The company has implemented a differentiated compensation policy for various employee groups, including recent graduates and core technical staff, to enhance talent retention[136]. - The company has upgraded its training programs, including the "Kunpeng Plan" and "Black Horse Plan," to support talent development and improve training efficiency[138]. - The company has established a comprehensive risk management and internal control system, with a focus on identifying and mitigating major risks[145]. Strategic Changes and Leadership - The company experienced a significant turnover in its board, with multiple directors and supervisors resigning due to work-related reasons, including the chairman and several board members[97]. - The company appointed new board members to strengthen its governance and strategic direction following the recent resignations[97]. - The ongoing changes in the board and management are part of the company's strategy to adapt to market demands and enhance its competitive position[100]. - The company is actively restructuring its board and management to align with its future growth strategies and operational needs[100]. Financial Compliance - The company has fulfilled commitments regarding the source of funds for the private placement, ensuring no external fundraising or structured arrangements[175]. - The company is currently in compliance with regulations regarding short-term trading and insider trading for its partners[175]. - The company has confirmed that all commitments made regarding the private placement have been fulfilled as of the reporting date[178]. - The company has no non-compliance issues related to external guarantees during the reporting period[179].

Financial Performance - The company reported a revenue of 1.2 billion CNY for the first half of 2021, representing a year-on-year increase of 15%[7]. - The gross profit margin for the first half of 2021 was 25%, compared to 22% in the same period last year[7]. - The company's operating revenue for the reporting period was ¥15,994,273,911.28, representing a 13.78% increase compared to ¥14,057,162,205.78 in the same period last year[12]. - Net profit attributable to shareholders was ¥1,195,798,852.39, a significant increase of 60.64% from ¥744,417,955.39 year-on-year[12]. - The net profit after deducting non-recurring gains and losses was ¥609,225,089.06, up 43.10% from ¥425,734,370.71 in the previous year[12]. - The net cash flow from operating activities reached ¥2,300,097,648.28, marking a substantial increase of 439.42% compared to ¥426,398,046.04 last year[12]. - Basic and diluted earnings per share were both ¥0.4865, reflecting a 33.84% increase from ¥0.3635 in the same period last year[12]. - The company's total assets at the end of the reporting period were ¥78,250,679,376.46, a 6.38% increase from ¥73,557,804,389.16 at the end of the previous year[12]. - The company reported a total investment of ¥2,710,000,000.00 for the current period, representing an increase of 81.27% compared to ¥1,495,000,000.00 in the same period last year[36]. Market Expansion and Strategy - The company plans to invest 500 million CNY in R&D for new technologies and products in the next fiscal year[7]. - The company is expanding its market presence in Southeast Asia, aiming for a 10% market share by the end of 2022[7]. - The company is exploring potential acquisitions to strengthen its position in the AMOLED market[7]. - The company has initiated a strategic partnership with a leading tech firm to enhance its supply chain efficiency[7]. - The company achieved a 50% year-on-year increase in vehicle display sales, actively expanding into the new energy vehicle market[22]. - The company has established a comprehensive industrial layout in the small and medium-sized display field, focusing on mobile smart terminal displays and professional display markets[16]. - The company is actively developing new technologies and products, including AMOLED and Micro LED, to enhance its competitive edge in the display industry[17]. - The company has over 3,000 total customers across various industries, focusing on high-value niche markets while continuously deepening cooperation with existing clients[19]. Research and Development - Research and development expenses rose by 9.78% to ¥1,077,924,856.77, up from ¥981,939,442.82[24]. - The company is actively developing AIoT applications, including smart homes and smart cities, to tap into emerging markets[19]. - The company plans to increase R&D investment to improve product technology content and added value, aiming to enhance core competitiveness[45]. Environmental Compliance - The company reported a total COD emissions of 34.68 tons, with a maximum allowable limit of 91.00 tons, indicating compliance with environmental standards[52]. - The company achieved a total nitrogen oxide emissions of 1.82 tons, well below the permitted limit of 4.77 tons[52]. - The company has invested in upgrading pollution control facilities, including replacing sludge centrifuges with screw sludge dewatering machines and upgrading roots blowers to magnetic levitation blowers[54]. - The company has established an automatic online monitoring system for key pollutants such as COD, ammonia nitrogen, and VOCs, ensuring real-time monitoring of emissions[54]. - The company has completed environmental impact assessments for all construction projects in accordance with legal requirements and obtained necessary environmental permits[55]. - The company has not faced any administrative penalties related to environmental issues during the reporting period, maintaining compliance with environmental regulations[58]. Corporate Governance and Shareholder Engagement - The company reported a 63.80% investor participation rate in the first extraordinary general meeting of 2021, indicating strong shareholder engagement[48]. - The company will not distribute cash dividends or issue bonus shares for the half-year period, focusing on reinvestment instead[51]. - The company has experienced changes in its board of directors, with several key personnel resigning due to work-related reasons, including the chairman and other board members[49][50]. - The company has not engaged in any securities investments during the reporting period[39]. - The company has no significant litigation or arbitration matters during the reporting period[64]. Financial Management - The company has implemented a foreign exchange derivative trading management system to mitigate currency and interest rate risks, enhancing financial stability[41]. - The company plans to issue short-term financing bonds not exceeding RMB 1.5 billion and publicly issue corporate bonds not exceeding RMB 10 billion[83]. - The company has a comprehensive credit limit of RMB 700 million with a related party for loans and other financial services[71]. - The company has signed a financial service agreement with AVIC Finance, with a maximum credit limit of RMB 7 billion and a daily maximum deposit balance of RMB 2 billion[73]. Risk Management - The company faces risks related to macroeconomic conditions and technology advancements, which are detailed in the risk management section[2]. - The company is facing macroeconomic risks due to the ongoing global pandemic and complex external environment, which may impact its development[45]. - The company has established business continuity management to improve risk prevention capabilities and respond effectively to external changes[45]. Share Capital and Ownership - The total number of common shareholders at the end of the reporting period is 90,705, including credit accounts[96]. - The largest shareholder, Xiamen Jincai Industrial Development Co., Ltd., holds 14.92% of shares, totaling 366,793,040 shares, with a decrease of 22,817,000 shares during the reporting period[97]. - The company has a total of 5 shareholders holding more than 5% of shares, with a combined ownership of 43.11%[97]. Accounting Policies and Financial Reporting - The company's financial statements comply with the accounting standards and reflect the financial position and operating results as of June 30, 2021[155]. - The company’s accounting period follows the calendar year, from January 1 to December 31[156]. - The company adheres to specific accounting policies for asset depreciation and revenue recognition tailored to its operational characteristics[154].

Financial Performance - The company reported a total revenue of 2,457,747,661 shares, with a cash dividend distribution of 0.7 yuan per 10 shares (including tax) for all shareholders[6]. - The company's operating revenue for 2020 was ¥29,232,745,052.03, a decrease of 3.46% compared to ¥30,281,970,068.28 in 2019[20]. - Net profit attributable to shareholders increased by 77.79% to ¥1,474,521,450.09 from ¥829,364,995.37 in the previous year[20]. - The net profit after deducting non-recurring gains and losses surged by 258.90% to ¥884,202,505.25, compared to ¥246,367,816.62 in 2019[20]. - The net cash flow from operating activities rose by 40.25% to ¥6,676,875,433.83, up from ¥4,760,660,819.60 in 2019[20]. - The basic earnings per share rose by 66.68% to ¥0.6749, compared to ¥0.4049 in 2019[20]. - The company reported a quarterly revenue of ¥8,625,707,127.39 in Q3 2020, the highest among the four quarters[24]. - The company’s electronic components industry revenue accounted for 99.35% of total operating revenue, totaling CNY 29.04 billion, down 3.36% year-on-year[52]. - The net profit for 2020 was CNY 1.48 billion, an increase of 77.79% compared to the previous year[48]. - Operating costs decreased by 6.46% to CNY 23.55 billion in 2020[48]. Investment and Growth Strategies - The company plans to focus on new product development and technological advancements in the AMOLED and Mini LED display sectors[12]. - The company is expanding its market presence through strategic partnerships and collaborations in the AI and IoT sectors[12]. - The company is actively pursuing mergers and acquisitions to enhance its competitive position in the display technology market[12]. - The company aims to leverage advancements in 5G technology to enhance its product offerings and market reach[12]. - The company has invested 48 billion RMB in a joint venture to establish a 6th generation flexible AMOLED production line in Xiamen, enhancing its market position in high-end displays[33]. - The company is focused on enhancing its research and development capabilities to drive innovation in display technologies[12]. - The company plans to invest 200 million yuan in research and development for new technologies over the next two years[185]. - The company is undergoing a merger with China Aviation Technology Shenzhen Co., Ltd. and AVIC International Holdings Co., Ltd., with AVIC International continuing as the surviving entity[121]. Market Position and Competitive Advantage - The company has maintained the global number one position in LTPS smartphone panel shipments for three consecutive years, achieving full coverage of mainstream brand customers[35]. - The company has a customer base exceeding 3,000, with a 100% coverage rate of top 10 Chinese brands in the automotive sector and a 92% coverage rate of top 24 global Tier 1 clients[34]. - The company’s LTPS business maintained its global leadership in smartphone displays, with a continuous increase in the proportion of blind hole products, leading to a substantial improvement in profitability[44]. - The AMOLED product shipment volume doubled year-on-year, indicating strong demand and successful market penetration[44]. - The company has developed high-performance display products with features such as high color gamut, high refresh rates, and low power consumption, maintaining industry-leading specifications[33]. Risk Management and Corporate Governance - The company has outlined potential risks including macroeconomic risks, market risks, technological risks, and intellectual property risks in its annual report[6]. - The company emphasizes its commitment to corporate social responsibility and sustainable practices in its operations[12]. - The company will implement a high-value patent strategy to strengthen its intellectual property management and reduce risks associated with patent disputes[102]. - The company anticipates potential risks from macroeconomic uncertainties, including the ongoing impact of the COVID-19 pandemic and geopolitical tensions[99]. - The company has committed to ensuring the independence of Tianma Microelectronics in accordance with relevant regulations, including maintaining independent operations and avoiding competitive business activities with its controlled entities[116]. Shareholder Engagement and Dividend Policy - The company plans to distribute a cash dividend of RMB 0.7 per 10 shares, totaling RMB 172,042,336.27 for the year 2020[109]. - The cash dividend represents 11.67% of the net profit attributable to the company's ordinary shareholders for 2020, which was RMB 1,474,521,450.09[110]. - The proposed dividend distribution plan is subject to approval at the shareholders' meeting[113]. - The company is in a growth phase and has significant capital expenditure plans, which influences its dividend distribution strategy[112]. Environmental and Social Responsibility - The company has actively participated in poverty alleviation efforts, employing 3,235 individuals from targeted poverty alleviation areas[168]. - The company has established partnerships in impoverished regions for training and employment support[168]. - The company is classified as a key pollutant discharge unit, with specific emissions data reported for various pollutants[170]. - The company has invested in projects to improve wastewater and waste gas treatment efficiency, including a water reuse system and organic wastewater treatment upgrades[172]. - The company has established an emergency response plan for environmental incidents, which has been reviewed and approved by local environmental authorities[174]. Financial Compliance and Reporting - The company has implemented the new revenue recognition standards since January 1, 2020, adjusting its accounting policies accordingly[135]. - The audit fee for the domestic accounting firm was RMB 2.69 million, with the firm providing services for four consecutive years[140]. - The company has no significant non-operating fund occupation by controlling shareholders or related parties during the reporting period[134]. - The company completed a non-public offering of 409,624,610 shares at a price of RMB 13.66 per share, raising a total of RMB 5,595,472,172.60, with a net amount of RMB 5,562,982,768.16 after expenses[154]. - The company has no violations of the Securities Issuance and Management Measures, ensuring compliance with regulatory requirements[124].