File photo/Zhang Jian (NBD)

On the evening of April 3, BOE Technology released its annual report, which showed that its net profit attributable to shareholders in 2022 fell by 70.91% year-on-year to 7.55 billion yuan。 And last week, TCL Technology also released its annual report, revealing that its net profit attributable to shareholders in 2022 fell by 97% year-on-year to 261 million yuan.

China is currently the world's largest producer of LCD panels, and the LCD panel industry has experienced the longest period of volatility in history over the past three years. 

In 2022, the global price of LCD TV panels fell below the low point of the previous cycle, and did not recover until the fourth quarter of that year, which significantly reduced the profits of BOE Technology and TCL Technology's TCL Huaxing.

How will they turn the tide this year?

This yeear, BOE Technology laid the foundation for a new type of display device production line project for Beijing's 6th generation LTPO technology, with an investment of 29 billion yuan. The project will mainly produce high-end display products such as VR display panels and MiniLED direct display backplanes, and is expected to be put into mass production in 2025. 

TCL Technology also stated in its 2022 annual report that it will accelerate its business transformation from large-size displays to full-size displays. TCL Huaxing Guangzhou's 8.6th generation LCD panel line was put into operation last year, mainly producing medium-sized panels with high added value such as IT and automotive displays. TCL Technology will also cooperate with industry chain partners to jointly build an industrial ecology for new display technologies such as printed OLED, MiniLED, MicroLED, and silicon-based OLED micro-displays.