Core Viewpoint - The company emphasizes its commitment to enhancing intrinsic value and sustainable development, despite the stock price being below net asset value, and outlines various measures taken to boost investor confidence and market value [2][3][7][18]. Financial Performance - In the first half of 2025, the company achieved a revenue growth of 9.93% year-on-year and a net profit attributable to shareholders increased by 142%, marking a turnaround from losses [2][3][9][16]. - The company's operating cash flow significantly improved, driven by healthy core business development and ongoing cost control efforts [15]. Shareholder Engagement - The company has implemented a market value management system, incorporating it into performance assessments, and has launched initiatives such as a valuation enhancement plan and share repurchase announcements to protect shareholder interests [2][7][18]. - The company has maintained a 100% response rate to investor inquiries during its performance briefing, indicating a strong commitment to investor relations [1]. Strategic Initiatives - The company is focused on internal growth and is exploring suitable acquisition targets to strengthen its competitive position in the display industry [4]. - The company has made significant investments in R&D, totaling 1.57 billion yuan, primarily in flexible AMOLED and LCD technologies, which are expected to enhance its market competitiveness [13][20]. Market Position and Innovation - The company has established itself as a leader in the small and medium-sized display sector, with a strong focus on innovation and technology development, including advancements in Micro-LED technology [8][28]. - The company continues to expand its product offerings in various sectors, including automotive displays, IT, and health monitoring, while maintaining a leading market share in certain segments [22][23]. ESG Commitment - The company has been recognized for its efforts in environmental, social, and governance (ESG) practices, having received awards for its sustainable development initiatives and commitment to carbon neutrality [6].

Group 1: OLED Mobile Display Business - The flexible AMOLED smartphone business is expected to maintain rapid growth in 2024, with the company ranking third globally in flexible AMOLED smartphone shipments [2][3] - In Q1 2025, the TM17 production line showed improved net profit year-on-year and quarter-on-quarter, indicating a continuous enhancement in profitability [3] - The company aims to further increase AMOLED product shipments, including high-spec products like foldable displays, while continuing to reduce costs [3] Group 2: Automotive Display Business - The company has been a leader in the automotive display sector for 30 years, achieving the highest global shipments of automotive TFT-LCD and instrument displays for five consecutive years since 2020 [4][5] - In 2024, the automotive business revenue grew by over 40%, with Q1 2025 showing continued strong growth [4] - The company plans to leverage existing LTPS and OLED production lines to enhance automotive display capabilities and introduce new production lines for advanced technologies [5] Group 3: Industry Trends and Market Outlook - The demand for automotive display products is expected to grow in 2025, driven by an increase in screen quantity and size, particularly in the domestic new energy vehicle market [6][7] - The company is focused on capturing opportunities in automotive electronics and new energy sectors to strengthen its competitive position [7] Group 4: Automotive Electronics Business - The automotive electronics business began mass deliveries to international leading car manufacturers in 2023, with accelerated growth expected in 2024 [8] - This segment is anticipated to become a new growth engine alongside the new energy vehicle business [8] Group 5: Profitability and Margin Trends - The gross margin for the automotive business showed a steady increase year-on-year in Q1 2025, despite facing competitive pressures and price challenges [9] - The company aims to enhance product complexity and integration to improve the value of automotive products and maintain stable gross margins [9] Group 6: IT Display Business Development - The IT display sector is a key growth area under the company's "2+1+N" strategy, with a focus on LTPS-LCD production lines [10] - The company plans to enhance its competitive edge in the IT market through diverse technology solutions and improved customer engagement [10] Group 7: Micro-LED Business Progress - The Micro-LED business is focusing on automotive and splicing display applications, with ongoing collaborations with leading industry players [12] - The Micro-LED production line is expected to achieve small batch capabilities by 2025 [12] Group 8: Depreciation Outlook - Depreciation in 2025 is expected to remain stable compared to 2024, with a gradual decline anticipated as new production lines reach maturity [13] Group 9: Market Value Management - The company has integrated market value management into its assessment system, focusing on enhancing shareholder value and investor confidence [14] - Initiatives include the release of valuation enhancement plans and share repurchase announcements [14] Group 10: 2025 Business Outlook - The company anticipates a strong start in 2025, with improved profitability and a focus on core business areas [15][16] - Plans include leveraging multiple technologies in mobile displays, enhancing automotive display capabilities, and expanding IT display offerings [15][16]