Summary of the Conference Call on OLED Industry and Aolaide Industry Overview - The global OLED market is expected to expand significantly, reaching $50 billion by 2027, with China's OLED panel and module output exceeding 100 billion yuan in 2024, representing a 38% year-on-year growth, and the international market share reaching 52% [2][5][6] - The demand for IT and automotive AMOLED panels is rapidly increasing, with a projected compound annual growth rate (CAGR) of 56% for IT AMOLED panel shipments and 49% for automotive display AMOLED panel shipments from 2023 to 2028 [2][6] Company Insights - Aolaide's organic light-emitting materials business benefits from the expansion of OLED into medium and large sizes and the application of stacked structures, leading to a significant increase in material usage and market share [2][6] - Aolaide is actively investing in PSPI packaging materials, raising 240 million yuan to expand production capacity, which will support domestic substitution efforts. The global PSPI market is expected to grow from $677 million in 2024 to $3.18 billion by 2031 [2][8] - Aolaide successfully won a 655 million yuan order for evaporation source equipment for BOE's 8.6 generation line, indicating that its equipment meets international standards and will drive growth in its equipment business [2][9] Strategic Partnerships - Aolaide has signed a strategic cooperation framework agreement with BOE, focusing on four core areas: ensuring the supply of evaporation sources, consolidating competitive advantages, collaborating on material supply and localization, and exploring new business opportunities [4][12][13] - This partnership is expected to enhance Aolaide's core business capabilities and solidify its position in the OLED industry [13] Future Outlook - Aolaide is positioned to leverage its core technology and production capabilities in the OLED materials and equipment sectors, aiming for performance growth through new product introductions and market share expansion [10][14] - The company is expected to benefit from the ongoing expansion of high-generation lines and the dual dividends of consumer electronics upgrades and domestic substitution [10][14] Additional Insights - The increasing demand for OLED technology in consumer electronics, driven by customer preferences for high contrast, low power consumption, and other performance metrics, is accelerating the adoption of OLED displays across various applications [4][6] - Aolaide's focus on local production models is anticipated to shorten delivery times and reduce procurement costs, creating a differentiated competitive advantage [8]

Core Viewpoint - OPPO has taken a significant step upstream by establishing its own screen manufacturing lines, aiming to enhance display technology and user experience in the smartphone industry [2][4]. Group 1: Industry Context - As smartphone component performance approaches physical limits, the evolution of core hardware like screens, imaging, and batteries is shifting from reliance on upstream suppliers to active involvement from terminal brands [2]. - Many smartphone brands are now opting for collaborative R&D to tackle technical bottlenecks in various scenarios [2]. Group 2: OPPO's Initiative - On September 19, OPPO announced the establishment of China's first self-researched screen "dual production line," marking it as the first smartphone brand in the country to directly engage in screen manufacturing [2][3]. - OPPO's initiative aims to overcome common technical bottlenecks in the industry and create the next generation of foundational user experiences [2][4]. Group 3: Technical Challenges - The "Mura" issue, characterized by uneven brightness and color on OLED screens, has long plagued the industry, affecting user experience [3]. - OPPO's dual production lines include a custom line with top-tier screen manufacturer Tianma and a self-researched display science production line, costing 1 billion yuan, to address these challenges [3]. Group 4: Technological Advancements - OPPO has achieved breakthroughs in screen uniformity and display performance, particularly in low-light environments, allowing for clear display and eye protection [4]. - The company has developed a "dark light color model" to compensate for color perception at extremely low brightness levels, stabilizing the minimum brightness to a comfortable "1 nit" [4]. Group 5: Industry Impact - OPPO's advancements provide an opportunity for other screen manufacturers and terminal brands to improve display uniformity and advance technologies like higher refresh rates and under-display cameras [5]. - By investing in screen manufacturing, OPPO aims to enhance industry capabilities and establish new standards that benefit the entire sector [5]. - The initiative represents a shift from merely reducing costs to empowering the entire industry through foundational innovation [5].