Core Viewpoint - The company, Cai Jing, reported a significant net loss of 5.325 billion New Taiwan Dollars (approximately 1.177 billion RMB) for the year 2024, primarily due to low yield rates during the initial mass production of its new environmentally friendly display paper and increased development costs [1][2]. Financial Performance - In Q4 of the previous year, Cai Jing's consolidated revenue was 2.864 billion New Taiwan Dollars (approximately 633 million RMB), representing a quarter-on-quarter increase of 19.98%. However, the company incurred an operating loss of 1.444 billion New Taiwan Dollars (approximately 319 million RMB) and a net loss of 1.538 billion New Taiwan Dollars (approximately 340 million RMB) [2]. - For the full year of 2024, Cai Jing's consolidated revenue is projected to be 9.964 billion New Taiwan Dollars (approximately 2.203 billion RMB), a year-on-year decrease of 19.34%. The gross loss margin is expected to be 36.11%, with an operating loss of 5.558 billion New Taiwan Dollars (approximately 1.229 billion RMB) and a net loss of 5.325 billion New Taiwan Dollars (approximately 1.177 billion RMB) [2]. Product Development and Market Strategy - Cai Jing has developed a new environmentally friendly display paper that maintains visibility in outdoor conditions and extreme temperatures, enhancing device battery life. The company has diversified its applications to include desktop displays, laptops, electronic tags, and industrial control screens [3]. - The company faced challenges with low yield rates during the initial production phase, leading to increased costs. However, improvements in production yield are expected, with a focus on mature product lines to achieve positive gross margins [3]. - The LCD panel market is currently stable, and Cai Jing is shifting its product line away from consumer products to specialized fields such as automotive and industrial control, reducing the proportion of consumer products to below 45% [3]. - The automotive display segment has seen growth, with revenue contribution increasing to 25%. Future growth is anticipated between the second half of 2025 and 2026 [3]. - The company is also targeting the market for larger central control screens, which are increasingly being replaced by LTPS panels, despite facing intense competition [4].

Core Insights - The global smartphone panel shipment is expected to reach 2.157 billion units in 2024, marking an 11.4% year-on-year increase, driven by the growth in new smartphone sales and demand for second-hand and refurbished devices [1] - In 2025, smartphone panel shipments are projected to decline by 3.2% to 2.093 billion units due to stable new device demand and a slight decrease in second-hand market demand [1] Company Summaries - BOE remains the leading smartphone panel supplier, with shipments expected to reach 613 million units in 2024 and 630 million units in 2025, reflecting a 2.7% year-on-year increase [2] - Samsung Display is projected to ship 378 million units in 2024, benefiting from Apple's demand for high-end AMOLED panels, but is expected to see a slight decline to 365 million units in 2025, a decrease of 3.5% [3] - HKC is maintaining its position as the third-largest supplier, with shipments expected to grow from 228 million units in 2024 to 230 million units in 2025, a 0.7% increase [4] - CSOT is closely collaborating with Xiaomi, leading to a significant growth in shipments to 215 million units in 2024, an 83.2% increase, with a slight growth forecast to 223 million units in 2025 [5] - Tianma is expected to ship 158 million units in 2024, with a projected 10% increase in 2025 due to rising demand for AMOLED panels, despite facing challenges from declining LTPS LCD demand [7] Market Trends - The demand for AMOLED panels remains strong among smartphone brands, contributing to the overall increase in shipments across major panel manufacturers, a trend expected to continue into 2025 [7] - The market share of Taiwanese a-Si LCD manufacturers is gradually shrinking due to the rapid growth of HKC and CSOT, while Japanese manufacturers are exiting the smartphone supply market [7] - Korean manufacturers maintain a competitive edge in the high-end smartphone market with flexible AMOLED technology, holding a market share of approximately 20% to 21% in 2024, while Chinese manufacturers are rapidly expanding their market share to 69.8% in 2024, potentially exceeding 70% in 2025 [7]