Core Viewpoint - LG Display has seen a significant increase in the average selling price of its panel products, surpassing $1000 for the first time in over a year, primarily due to the suspension of lower-priced LCD panel sales [1][2]. Group 1: Pricing and Market Share - In Q2, LG Display's average panel price exceeded $1000, marking a notable recovery in pricing [1]. - The company's market share in the global large-sized panel segment was 12.9% in the first half of the year, down from 15.7% in the same period of 2024 [1]. Group 2: Strategic Focus and R&D Investment - Chinese manufacturers are increasing investments to expand their share in the LCD panel market, prompting Korean companies to focus on OLED panel development [2]. - LG Display plans to allocate 10.4% of its sales revenue to OLED technology research and development in the first half of 2025, up from 8.4% in the previous year [2]. - The company is gradually exiting the liquid crystal television business and shifting towards an OLED-centric business structure, with OLED products accounting for 56% of total revenue in Q2, a 4% increase year-on-year [2]. Group 3: Future Outlook - The CFO of LG Display has indicated that the company's performance is expected to rebound significantly in the second half of the year as the scale of the OLED business expands [2].

Investment Rating - The report does not explicitly provide an investment rating for the non-automotive large-size LCD industry Core Insights - The non-automotive large-size LCD industry primarily involves the processing and manufacturing of LCDs 7 inches and above, adopting a sales-based production model with cyclical characteristics. The competition between LCD and OLED technologies is stabilizing, with LCD maintaining competitiveness in the mid-to-low-end market. In 2021, multiple replacement cycles and the surge in remote work and online education drove LCD shipments and prices to historical highs. However, the maturity of panel technology limits the price increase capability of LCDs, leading to a market entering a mature phase where shipment volume is more cyclical than growth-oriented, primarily influenced by replacement cycles and population size, with average prices expected to stabilize in line with global CPI fluctuations [4][40][43]. Industry Definition - LCDs are flat-panel display devices widely used in various electronic devices with medium to large screens. The core working principle is based on the properties of liquid crystal molecules, which control the polarization direction and light transmission by adjusting the electric field intensity. This technology allows LCDs to provide clear and stable visual effects while maintaining low energy consumption. The non-automotive large-size LCD industry is a sub-sector focused on the processing and manufacturing of LCDs 7 inches and above [5]. Industry Characteristics - The non-automotive large-size LCD industry exhibits strong cyclical characteristics, primarily driven by consumer electronics with a typical replacement cycle of 3-5 years. The demand for these products is closely linked to economic conditions and consumer price sensitivity, further enhancing the cyclical nature [16][17]. - The industry mainly adopts a sales-based production model, supported by the mature technology of LCDs, which has a short stocking cycle and low industry entry barriers, making supply unlikely to restrict industry development [18]. - The competition between LCD and OLED technologies is stabilizing, with LCD maintaining strong competitiveness in the mid-to-low-end market despite OLED's advantages in high-end applications [19]. Industry Chain Analysis - The upstream of the LCD industry chain includes liquid crystal materials, glass substrates, polarizers, and chemical materials, providing qualified components and materials to the midstream. The midstream consists of LCD panel manufacturers responsible for producing non-automotive large-size LCDs, while the downstream includes manufacturers of LCD televisions, laptops, tablets, and monitors, which are responsible for consuming and connecting with end consumers [23]. - The report highlights that the bargaining power of upstream companies varies, with a general trend of squeezing midstream companies. For instance, the leading polarizer company Nitto Denko achieved a net profit margin of 13.54%, while Chinese polarizer companies had significantly lower margins [24][30]. Market Size and Trends - The non-automotive large-size LCD market size fluctuated from $51.56 billion in 2020 to $41.35 billion in 2024, with expectations of gradual recovery to $47.79 billion from 2025 to 2030 [40]. - The report attributes the historical changes in market size to multiple replacement cycles and the surge in demand for computers due to remote work and online education in 2021, which drove LCD shipments to historical highs [41][42]. Competitive Landscape - The competitive landscape of the non-automotive large-size LCD industry is characterized by high intensity, with major players including BOE Technology Group, TCL Technology, Sharp, and Panasonic in the first tier. The second tier includes companies like Rainbow Optoelectronics and Xiaomi, while smaller companies occupy the third tier [50][51]. - The report indicates that the profitability of mid-sized enterprises is relatively limited, leading to a risk of elimination in a highly competitive environment. The overall investment return rate in the industry is low, discouraging new entrants and contributing to increased industry concentration [53][54].

Core Viewpoint - Apple's planned release of the OLED version of the MacBook Pro, originally set for 2026, may be delayed until late 2026 or early 2027 due to various factors affecting production and design maturity [1] Group 1: Product Release Timeline - The launch of the MacBook Pro equipped with the M5 processor is now expected to be postponed to spring 2026, which subsequently affects the OLED version's release schedule [1] - The new MacBook Pro is anticipated to feature a slim design, the M6 processor, and an OLED display [1] Group 2: Supply Chain Insights - Market research firm Omdia has reported that Samsung has received orders for the first batch of OLED display panels for the new MacBook Pro [1] - Despite the potential for Apple to release the OLED model in 2026, the actual timing will depend on panel production yield, supply stability, and the maturity of the new design during mass production [1]

Core Viewpoint - Visionox plans to order vapor deposition equipment from Canon Tokki for its 6th generation OLED V2 line expansion, aiming to double its monthly production capacity from 15K to 30K units [1][2]. Group 1: Production Capacity and Equipment - The current monthly production capacity of the existing V2 line is 15K units, and Visionox intends to expand this to 30K units [2]. - The V2 line has been using Canon Tokki's vapor deposition equipment, and it is likely that the same equipment will be used for the expansion to avoid process discrepancies [2]. - Visionox's production lines include the 5.5 generation V1 line (15K/month), the 6th generation V2 line (15K/month), and the 3rd generation V3 line (30K/month) [2]. Group 2: Market Dynamics and Technology - The operating rate of China's 6th generation OLED production lines is currently high, recovering from previous low rates due to over-investment [3]. - The decline in OLED product prices has led to increased utilization rates, as smartphone manufacturers have shifted to low-cost OLEDs, making it difficult to revert to LCDs due to consumer preferences [3]. - Visionox's V5 line is expected to use ViP vapor deposition equipment from Applied Materials' subsidiary AKT, as the 6th generation ViP pilot line has already utilized AKT's equipment [3]. Group 3: Technology Implementation - In the V5 line, one-quarter of the 8K monthly production will prioritize ViP technology, while the remaining three-quarters may use FMM technology, although specific investment execution details and timelines remain unclear [5].

Group 1 - The 22nd China International Digital Interactive Entertainment Exhibition (ChinaJoy) opened in Shanghai, attracting over 700 companies and covering various fields such as gaming, animation, and esports hardware [2] - The esports monitor market is experiencing significant growth, with global retail market expected to grow by 34% year-on-year in 2025, while the gaming laptop retail market saw a 15% increase in the first half of the year [2] - In the domestic online market, esports monitor sales are projected to surge by 40% in the first half of 2025, with new technology products like OLED experiencing growth rates exceeding 170% [2] Group 2 - Esports demand is identified as the core driver of growth in the overall monitor market, with a projected 12.4% year-on-year growth for China's esports monitor market in 2025 [3] - High-end segments are experiencing rapid growth, with global OLED display panel shipments expected to increase by 69% in 2025 due to high acceptance among esports players [3] - Companies like TCL Huaxing hold over one-third of the global market share in esports display panels, leveraging core technologies to meet the high-performance needs of esports players [3] Group 3 - Despite strong growth in the high-end market, overall market prices are under pressure, with the average price of online monitors in China expected to drop by approximately 5% in the first half of 2025 [4] - Price declines are attributed to intense market competition and the strong supply chain control of leading factory brands, allowing for cost reductions [4] - Companies are advised to focus on performance and experience rather than solely engaging in price wars, with a strategic emphasis on technological innovation and differentiated product offerings [4]

Core Viewpoint - OLED technology is rapidly evolving, with Jilin OLED Materials Co., Ltd. (Aolaide) emerging as a pioneer in the industry, focusing on both material and equipment development to promote domestic OLED production autonomy [1][3]. Group 1: Company Development - Aolaide was founded in 2005, starting from a laboratory project at Jilin University, and has since become a leading private enterprise in the upstream OLED industry chain [1][4]. - The company has achieved significant milestones, including being the first listed company in China's OLED materials and equipment sector and the first in Jilin Province to be listed on the Sci-Tech Innovation Board [1][2]. - Aolaide has invested over 50 million yuan in R&D over the years, overcoming initial challenges to develop high-purity organic light-emitting materials for mass production [4]. Group 2: Market Position and Growth - As of 2024, Chinese companies have surpassed a 40% share of the global OLED market, marking a historic achievement for domestic manufacturers [5]. - Aolaide's materials business has seen steady revenue growth for five consecutive years since its IPO, with a goal to become an internationally recognized R&D and manufacturing enterprise in the OLED materials and equipment sector [5]. Group 3: Technological Advancements - Aolaide has focused on developing key OLED materials and evaporation source equipment, which are critical for reducing production costs and improving yield rates [3][6]. - The company has successfully developed a 6th generation evaporation source, which has allowed it to break foreign monopolies and significantly improve the domestic OLED panel production capabilities [7][10]. - Aolaide has filed over 1,000 patents, with more than 90% being invention patents, indicating a strong commitment to innovation and technology development [9]. Group 4: Future Prospects - Aolaide is currently constructing a new OLED materials factory in Changchun, which is expected to enhance the domestic supply chain and reduce reliance on imported materials [11]. - The company aims to continue its trajectory of technological innovation, focusing on the development of next-generation light-emitting materials and key polymer functional materials [10][11].

Group 1: Technology Development - The company focuses on customer-oriented product development, addressing varying technical parameter requirements for different application scenarios in AR glasses [2][3] - Micro LED technology is recognized for its high brightness, efficiency, and longevity, making it suitable for AR/VR devices, despite current production cost limitations [3] Group 2: R&D Personnel Changes - The reduction in R&D personnel in the 2024 report is attributed to business structure optimization, with staff transitioning to production roles to enhance yield and delivery capabilities [3] - The company continues to prioritize R&D innovation by recruiting high-end technical talent, particularly in new display technologies and AR/VR optical solutions [3] Group 3: Production Optimization - Current production optimization efforts focus on centralized production layout and automation to enhance scale efficiency, including streamlining material transfer and optimizing production line layouts [5] - The company aims to strategically focus on high-value products, particularly in Mini/Micro LED and automotive LED sectors, to improve product mix and increase the proportion of high-margin products [5]

Core Viewpoint - LG Display (LGD) is evaluating a new OLED panel technology that does not use Fine Metal Mask (FMM), instead utilizing semiconductor photolithography for production, which may enhance production efficiency and expand future potential [1][8]. Group 1: Technology Development - LGD plans to test the no-FMM technology on its E4 production line in Paju, which currently has low utilization rates [2][3]. - The new production line has installed Chemical Vapor Deposition (CVD) equipment and aims to produce OLED panels using a method similar to eLEAP technology [3]. - LGD's primary focus is on WOLED (White OLED) and POLED (Plastic OLED) technologies, targeting large and medium/small size applications respectively [4][6]. Group 2: Market Position and Competition - LGD is currently the only manufacturer producing large-size WOLED TV panels at scale, while competing with Samsung Display in the POLED segment [4][6]. - The no-FMM technology could complement LGD's existing WOLED technology, allowing for a broader range of panel sizes and applications, including laptops and automotive displays [9][20]. - The no-FMM technology is gaining attention as FMM approaches its physical limits, with challenges in resolution and material utilization [10][12]. Group 3: Industry Trends - The OLED market is seeing a shift towards medium-sized applications, with increasing demand for high-quality displays in laptops and automotive sectors [45][52]. - Companies like JDI and Visionox are also developing no-FMM technologies, indicating a competitive landscape forming among major players in the OLED market [23][29][40]. - The no-FMM technology is expected to significantly reduce production costs and material waste, enhancing overall efficiency in OLED manufacturing [19][49]. Group 4: Future Outlook - The no-FMM technology is still in its early development stage, with challenges remaining before mass production can be achieved [54][55]. - As the OLED market expands, companies investing in no-FMM technology are likely to see growth opportunities, particularly in the medium-sized display segment [53].

Core Viewpoint - Huike's first self-developed and manufactured OLED module successfully lit up, marking a strategic achievement in the OLED sector and overcoming core process barriers [1][3]. Group 1: Product Development - The OLED module utilizes innovative oxide semiconductor backplane technology combined with a hybrid panel architecture, completing the full process verification from design to trial production in five months [3]. - This successful launch fills Huike's gap in the OLED field and supports the establishment of a comprehensive product system covering LCD, Mini LED, and OLED across various sizes [3]. Group 2: Business Strategy - Huike's main business involves the research and manufacturing of semiconductor display panels and smart display terminals, with existing technologies including a-Si TFT-LCD, Oxide TFT, Oxide RGB OLED, Oxide LCD, and Mini LED [3]. - As of June this year, Huike's updated prospectus indicates that self-developed oxide OLED, RGB OLED, and ultra-low frequency OLED products have entered trial production [3]. Group 3: Strategic Acquisitions - In January 2025, Huike acquired part of the flexible display industrial park assets from Royole Technology for approximately 504 million RMB, seen as a key step for rapid entry into the OLED market [4]. - This acquisition allows Huike to leverage Royole's legacy G5.5 flexible OLED production line and oxide TFT technology, which is more suitable for large-size flexible products, thereby enhancing its OLED technological capabilities [4].

Summary of Conference Call on Display Panel Industry Industry Overview - The conference focused on the global display panel industry, specifically the production of LCD and OLED panels, with a significant emphasis on China's market position and developments in the sector [1][2][3]. Key Points and Arguments - **Global LCD Panel Production**: - LCD panels account for over 90% of global display panel production, with an expected increase from 290 million square meters in 2023 to 300 million square meters by 2028 [1]. - The growth in global LCD panel production is primarily reliant on mainland China, as other countries are experiencing a decline in production capacity due to the phasing out of older lines [2]. - **Global OLED Panel Production**: - OLED panel production is projected to grow from 19.7 million square meters in 2023 to 30.7 million square meters by 2028 [2]. - In 2023, China's OLED production accounted for 22.8% of the global total, with expectations to increase to 65.9% by around 2026 [3]. - **China's LCD and OLED Production**: - China's LCD panel production is forecasted to rise from 208 million square meters in 2023 to 244 million square meters by 2028 [3]. - The production of OLED panels in China is expected to grow significantly, from 4.5 million square meters in 2023 to 22.3 million square meters by 2028 [3]. - **Market Dynamics**: - The LCD panel market in China faced a reduction in production due to a lack of demand, leading to a decrease in output by approximately 2% in 2022 compared to 2021 [4]. - Despite the challenges, companies like Huaxing Optoelectronics and BOE are expanding their production lines, with new 8.6-generation lines expected to add significant capacity [5]. - **Technological Advancements**: - The Taiwanese panel industry is facing challenges due to outdated production lines, while mainland China's modern factories are gaining a competitive edge [6]. - Companies are investing in new technologies and applications, such as microLED and advanced OLED technologies, to enhance their product offerings [7][8]. Additional Important Insights - **Market Competition**: - Japanese and Korean manufacturers are losing market share due to competitive pressures from Chinese firms, leading to the shutdown of several LCD production lines [8][9]. - The average size of LCD TV panels has seen a decline for the first time due to high inflation and changing consumer preferences, although the long-term trend remains upward [11]. - **Future Projections**: - The global market for OLED panels is expected to grow at a double-digit rate, with significant advancements in production technology anticipated [17]. - The penetration of OLED technology in smartphones has rapidly increased, reaching over 50% in 2023, while its adoption in larger devices like TVs remains limited due to high costs [18][21]. - **Consumer Trends**: - The demand for larger OLED panels is expected to grow, but the current high costs and production challenges hinder widespread adoption [23]. - The anticipated launch of Apple's OLED iPad Pro series marks a significant step in expanding OLED technology into new product categories [20]. Conclusion - The display panel industry is undergoing significant transformations, with China emerging as a dominant player in both LCD and OLED markets. The growth trajectory for OLED technology is promising, but challenges remain in terms of production costs and market acceptance, particularly in larger screen applications.