Core Viewpoint - TCL Huaxing's entry into the Mini LED COB display market signifies a strategic move to leverage its brand, scale, and cost advantages in a highly competitive sector, aiming to capture market share in the P1.2 pitch area, which is currently in high demand [2][3][12]. Group 1: TCL Huaxing's MLED Technology Layout - TCL Huaxing has established a clear strategy for its MLED technology, positioning LCD as a foundational technology, OLED for medium and small-sized markets, and MLED for both backlight and direct display applications [3][6]. - The company is enhancing its vertical integration by collaborating with Sanan Optoelectronics to develop Micro LED chips, focusing on core technologies and materials [6][7]. Group 2: Market Dynamics and Growth Potential - The Mini LED COB direct display market is experiencing a dual dynamic of oversupply and emerging demand, with production capacity expected to reach 88,700 square meters per month by 2025 [8][10]. - The demand for Mini LED displays is projected to grow significantly, with a 92% year-on-year increase in chip shipments expected in 2024, driven by declining costs and expanding application scenarios [10][11]. Group 3: Competitive Landscape - Major panel manufacturers like BOE and HKC have already invested over 60 billion yuan in the Mini LED COB market, indicating a competitive environment for TCL Huaxing [13][15]. - The entry of large panel manufacturers into the LED direct display market is expected to intensify competition, potentially leading to market consolidation and the exit of smaller players [21][23]. Group 4: Emerging Applications and Regional Markets - New application scenarios such as corporate meetings, education, and LED cinema screens are driving demand, with the LED cinema screen market expected to see over 60 installations in China by 2024 [11][12]. - Emerging markets in Southeast Asia, the Middle East, and Latin America are identified as growth areas for LED displays, with companies like Leyard increasing their focus on these regions [12][21].

Core Viewpoint - TCL Huaxing has officially announced the mass production of Mini LED COB direct display products, marking a significant step in enhancing its display technology portfolio, which includes LCD, OLED, and MLED [2][7]. Group 1: Product Details - The first mass-produced product is the P1.2 Mini LED COB display screen, featuring a large panel design with adjustable brightness ranging from 0 to 800 nits and a high contrast ratio of 5000:1, suitable for various applications such as meetings, command centers, and security monitoring [3]. - The product has undergone rigorous testing, including impact resistance and high-temperature water exposure, demonstrating superior durability compared to traditional SMD screens. Its chip-level armor packaging technology conceals solder points within the substrate, enhancing overall reliability and lifespan [3]. - The COB display's high contrast performance allows it to present 0.01 lumens of micro-light on a pure black background, improving detail restoration in nighttime monitoring. Its modular design supports arbitrary cutting and splicing, providing flexibility for large display system setups [3]. Group 2: Market Position and Future Prospects - MLED is TCL Huaxing's third display technology route following LCD and OLED, with the project officially launched in July 2024. The company expedited equipment installation, debugging, and technical validation, achieving mass production 15 days ahead of schedule [7]. - As a major player in the panel industry, TCL Huaxing's entry into the LED display market is expected to accelerate the adoption of COB technology, intensify market competition, and reshape the industry chain ecosystem [7]. - In 2023, TCL Huaxing has been actively advancing in the MLED technology field, launching multiple products and expanding applications. Notably, it has supplied three 11.98-inch Mini LED screens for Xiaomi's YU7 automotive display and introduced low-power, high-efficiency Mini LED products for VR and XR applications [7].

Group 1: MLED Market Outlook - The global market size for Mini LED direct display is expected to reach billions of dollars by 2028, with a compound annual growth rate (CAGR) of approximately 40% from 2024 to 2028 [2] - Domestic MLED manufacturers are actively expanding production, indicating a strong growth trajectory for the MLED industry [2] - The company has launched core detection equipment and integrated circuits for MLED, enhancing production efficiency and display quality [3] Group 2: Overseas Market Performance - In 2024, overseas revenue grew by 32.03% compared to 2023, accounting for 19.10% of total revenue [4] - In the first half of 2025, overseas revenue increased by 21.31% year-on-year, with an overseas revenue share of 22.89% [4] - The company has established a comprehensive overseas sales system and a broad partner network, positioning for sustained growth in international markets [4] Group 3: Product Applications in AR/VR - MLED technology is expanding from professional to consumer markets, with applications in virtual shooting, naked-eye 3D, and meetings [4] - The company is actively exploring high-value potential applications in the AR/VR glasses sector [4] Group 4: Talent Management Strategies - The company focuses on leveraging existing talent and recruiting industry experts, implementing comprehensive incentive measures [4] - A systematic optimization of internal training and development is in place, offering diverse career paths for employees [4] - An effective performance evaluation and incentive mechanism has been established to foster a culture of value distribution based on effort [5]

Core Insights - The company reported a revenue of 1.533 billion yuan in the first half of 2025, a decrease of 1.93%, and a net profit attributable to shareholders of 294 million yuan, down 9.33% [1] - In Q2 2025, the company achieved a revenue of 912 million yuan, an increase of 3.41% year-on-year, with a net profit of 192 million yuan, down 4.95% [1] - The operating cash flow showed significant improvement, with a net cash flow of 155 million yuan in H1 2025, up 327.91% [1] Revenue Breakdown - The revenue from LED display control systems in H1 2025 was 639 million yuan, down 15.51%, while video processing systems generated 645 million yuan, up 5.51% [1] - The cloud-based information publishing and management system generated 99 million yuan, an increase of 13.29% [1] - Domestic market revenue was 1.182 billion yuan, down 7.20%, while overseas market revenue reached 351 million yuan, up 21.31% [1] Market Trends - The small-pitch LED display market in mainland China saw a sales decline of 16% in H1 2025, with a projected annual market size of 12.8 billion yuan, down 10.5% [2] - The shipment area for small-pitch LED displays slightly increased by 4.5% to 550,000 square meters [2] - The company anticipates continued operational improvement in the second half of 2025 [2] Profitability and R&D - The gross margin for LED display control systems was 49.11%, up 2.65 percentage points year-on-year, while video processing systems had a gross margin of 69.54%, up 2.33 percentage points [2][3] - The gross margin for cloud-based information systems was 59.82%, an increase of 2.07 percentage points [2] - R&D investment reached 249 million yuan, accounting for 16.24% of revenue, reflecting an increase in R&D spending [3] Technological Advancements - The company has made significant advancements in MLED technology, launching core detection equipment and integrated circuits, leading to rapid revenue growth in this area [4] - The introduction of the VX series video control server supports 4K and 8K ultra-high-definition displays, with ongoing research into 16K technology [4] - The company has developed specialized control chips and high-speed interface chips to enhance LED display quality, supporting the demand for high-quality and ultra-thin MLED displays [4] Future Projections - The company is projected to achieve revenues of 3.552 billion yuan, 4.052 billion yuan, and 4.631 billion yuan from 2025 to 2027, with year-on-year growth rates of 8.31%, 14.06%, and 14.30% respectively [5] - Net profit is expected to reach 666 million yuan, 817 million yuan, and 982 million yuan over the same period, with growth rates of 12.32%, 22.58%, and 20.24% respectively [5]

Group 1: Mini LED TV Market Growth - The global shipment of Mini LED TVs reached 7.85 million units in 2024, an increase of 84.7% from 4.25 million units in 2023 [1] - In China, the shipment of Mini LED TVs surged to 4.16 million units, reflecting a staggering year-on-year growth of 352.2% [1] - It is projected that by 2025, the overall shipment of Mini LED TVs in China will reach 9.23 million units, a year-on-year increase of 122%, with a penetration rate exceeding 25% [1] Group 2: Company Strategy and Product Development - Skyworth has shifted its focus from high-end OLED TVs to the Mini LED market, introducing the "Chameleon Display Technology Platform" aimed at achieving true color reproduction [1] - The Chameleon platform incorporates significant AI capabilities, including AI light control, perception, and audio-visual systems, with algorithms integrated into the AI picture quality chip [3] - Skyworth has launched the A7F series of wallpaper TVs, featuring matte screen technology and the Chameleon AI picture quality chip S7, which optimizes display algorithms for realistic visuals [3] Group 3: Market Position and Future Outlook - Skyworth has invested over 2.698 billion yuan in the development of wallpaper TVs and has sold over 500,000 units to date [5] - The company aims to provide a product that adds value in modern living spaces, moving beyond traditional television functions [5] - Following the launch of the A7F series, Skyworth's market share in Mini LED TVs reached 19%, positioning it as the second in the industry, with confidence in becoming the next sales champion in this segment [5]