Everdisplay Optronics (Shanghai) (SH:688538) Xin Lang Zheng Quan·2025-04-27 03:28Core Viewpoint - Hehui Optoelectronics is planning to issue H-shares and list on the Hong Kong Stock Exchange due to ongoing financial difficulties and significant losses since its A-share listing in 2021 [1][3]. Financial Performance - Since its listing on the Sci-Tech Innovation Board in May 2021, Hehui Optoelectronics has accumulated losses of 8.3 billion yuan over four years, with a total loss of 3.85 billion yuan from 2022 to 2024 [1][3]. - The company reported a net profit loss of 2.52 billion yuan in 2024, although this was a reduction of 2.24 billion yuan compared to the previous year [3][4]. - As of the end of 2024, Hehui Optoelectronics had unrecouped losses amounting to 9.55 billion yuan, with projections indicating that losses could exceed 10 billion yuan by the end of Q1 2025 [3][4]. Market Position and Product Focus - Hehui Optoelectronics specializes in the research, production, and sales of AMOLED semiconductor display panels, primarily for consumer electronics such as smartphones and tablets [2][3]. - In 2024, the company achieved a sales volume of 53.91 million AMOLED panels, a year-on-year increase of 6.64%, and generated revenue of 4.96 billion yuan, a significant increase of 63.2% [3][4]. Competitive Landscape - The company faces intense competition from domestic and international players, including BOE Technology Group and TCL Technology, with Hehui Optoelectronics having the smallest revenue among its peers but the largest losses [6][8]. - Hehui Optoelectronics has adopted a rigid AMOLED product strategy, while competitors are focusing on flexible AMOLED products, which are more aligned with current market trends [7][10]. Financial Health and Debt Situation - As of the end of 2024, Hehui Optoelectronics had over 10 billion yuan in short-term non-current liabilities, a nearly fivefold increase from the beginning of the year, indicating a significant liquidity crisis [11][12]. - The company's total interest-bearing debt reached 17.34 billion yuan, which is more than four times its cash reserves, highlighting a critical funding gap [11][12]. - The company's asset-liability ratio stood at 66.1%, the highest since 2017, with a current ratio of 0.46 and a quick ratio of 0.39, indicating high short-term solvency risk [11][12].