Core Viewpoint - In 2025, Chinese panel companies have transitioned from mere scale expansion to a phase where technology defines their business models, particularly in the OLED sector, while maintaining a controlled production strategy in the mature LCD market [1][19]. LCD Market Dynamics - The LCD market has shifted from a "full production, full sales" model to an "on-demand production" strategy, where manufacturers adjust production based on actual orders to stabilize prices [6][7]. - Major panel manufacturers have agreed to control production to maintain profitability, leading to a reduction in the operating rate of LCD production lines to below 80% in October 2025 [2][3]. - The market concentration has increased, giving leading companies stronger bargaining power, which has allowed them to implement production control strategies effectively [7][8]. Financial Performance - The financial results reflect the success of the new production strategy, with companies like BOE and TCL reporting significant profit increases in their third-quarter results, with net profits growing by 39.03% and 53.5% respectively [8][9]. OLED Market Strategies - In the OLED sector, leading companies are pursuing different technological paths, with BOE investing 630 billion RMB in a mainstream "evaporation" process, while TCL is adopting a lower-cost "printing" method with an investment of only 295 billion RMB [11][12]. - Visionox is exploring a unique approach using its proprietary ViP technology, which aims to replace traditional masking techniques with semiconductor-like processes [14][15]. - The competition in the OLED market is intensifying as companies aim to capture the growing demand for OLED panels in IT devices, with projections indicating a compound annual growth rate of 33% for OLED in laptops by 2030 [17]. Future Outlook - The race for the 8.6-generation OLED production lines is critical as the smartphone market matures, with companies like BOE and TCL setting ambitious timelines for mass production by 2026 and 2027 respectively [17][18]. - Despite not investing in new OLED lines, Tianma Microelectronics is focusing on enhancing its existing LCD capabilities, particularly in the automotive display sector, which is expected to grow significantly [19].