Industry and Market Overview - In the LCD sector, total shipment volume and area are expected to see slight year-on-year growth in 2025 [1] - TV product shipments and area are projected to increase, driven by demand for small-sized TVs in emerging markets, while the trend towards larger sizes is temporarily slowing [1] - IT products, particularly NB and TPC, are anticipated to experience rapid growth due to replacement demand, while MNT shipments are expected to remain flat [1] - Seasonal effects show a divergence, with TV product shipments influenced by national subsidies and export demand, leading to noticeable fluctuations throughout the year [2] Company Performance - In Q3 2025, the company maintained a strong position in the semiconductor display sector, with LCD shipments across smartphones, tablets, laptops, monitors, and TVs ranking first globally [4] - The company’s OLED shipments reached approximately 40 million units in Q3, with expectations for double-digit growth for the year [5] - Revenue distribution for display devices in the first three quarters was as follows: TV (28%), IT (37%), LCD mobile and others (12%), and OLED (23%) [5] Future Outlook - The average utilization rate in the industry is expected to decline to below 80% in Q4 2025, following an increase in Q3 [2] - LCD product prices are projected to show differentiation, with a slight adjustment in TV prices and stable IT product prices in Q4 [2] - The global OLED shipment volume is forecasted to reach approximately 670 million units in 2025, with an increase to 720 million units in 2026 [9] - The company aims for a double-digit growth in actual shipments, building on a base of 140 million units from the previous year [11] Investment and R&D - The company emphasizes the importance of R&D, maintaining an annual R&D expense ratio of approximately 6%-7% of revenue [8] - Future capital expenditures are expected to decline after 2025, with significant investments in the Chengdu 8.6 generation OLED production line [10] - The company is actively pursuing partnerships for IT and automotive products, with ongoing R&D efforts showing promising progress [11] Market Challenges - The competitive landscape in the OLED market is intensifying, particularly in the low-end segment, which poses challenges for maintaining margins [6] - The average size growth in the LCD business has not met expectations, with a notable lack of growth in Q3 despite a 45% year-on-year increase in North America for products over 85 inches [12]