Keystone Technology(SH:605588) Shang Hai Zheng Quan Bao·2025-04-21 22:01Core Viewpoint - The company reported a significant decline in net profit for 2024, with a net loss of approximately 15.46 million yuan, a decrease of 129.60% compared to the previous year, despite a 51.95% increase in total revenue to approximately 1.36 billion yuan [27]. Company Overview - The company specializes in the research, production, and sales of semiconductor display devices and special adhesive materials, with key products including polarizers, functional devices, signal connectors, liquid crystal panels, and production auxiliary materials [3][9]. - The company has established strong partnerships with leading display panel manufacturers such as BOE, Huaxing Optoelectronics, and Foxconn, supplying products for well-known consumer electronics brands like Huawei, Xiaomi, and Apple [3][8]. Business Environment - A new round of government subsidies for replacing old televisions in mainland China is expected to stimulate demand in the television market, with subsidies ranging from 15% to 20% based on energy efficiency ratings [3]. - The global LCD TV panel shipment volume is projected to increase by approximately 9.3% year-on-year in Q4 2024, despite a 0.5% decline in Q3 2024, indicating a stabilizing effect from the subsidy policy [3][4]. Financial Performance - The company achieved total revenue of approximately 1.36 billion yuan in 2024, marking a 51.95% increase year-on-year, but reported an operating loss of approximately 26.02 million yuan, a decline of 147.65% compared to the previous year [27]. - Research and development expenses increased by 41.92% to approximately 55.28 million yuan, reflecting the company's commitment to innovation despite financial challenges [27]. Market Trends - The global display panel sales are expected to grow by 13% in 2024, driven by a recovery in demand across various end applications, particularly in the TV segment [4]. - The average size of global TV panels is projected to continue increasing, reaching 51.5 inches in 2024, with significant growth in the large and ultra-large size segments [7]. Production and Sales Model - The company primarily operates under a self-production model, supplemented by commissioned processing, allowing for flexibility and efficiency in meeting customer orders [23][24]. - The sales strategy focuses on direct sales, with the sales department responsible for customer development and maintaining relationships to ensure a steady flow of orders [25][26].