The new crown epidemic, trade friction has brought the impact, but the country's "new infrastructure" and brought opportunities, the first half of the BOE with the release of new production capacity, panel shipments increased by more than 15% year-on-year, to maintain the LCD screen in the field of cell phones, tablet PCs, laptops, monitors, TVs, leading. At the same time, the rapid growth of intelligent manufacturing business, television sales in China, electronic label sales are up more than 70% year-on-year.
In the first half of the year, revenues from BOE's port devices (mainly panels), smart IoT (mainly smart manufacturing) and smart medical and industrial segments grew 10.75 percent, 3.6 percent and 6.16 percent year-on-year, respectively. However, the gross profit margin of port devices, which accounted for 90% of BOE's revenue, fell 1.78 percentage points year-on-year to 13.78%, mainly due to a drop in panel prices compared to the same period last year. That contributed to BOE's revenue growth and net profit decline.
TCL Technology, on the other hand, connected out on acquisitions. In the first half of the year, according to the same caliber after last year's divestiture of the home appliance business (asset reorganization), TCL Technology achieved revenue of 29.33 billion yuan, up 12.3% year-on-year; the mother of the net profit of 1.21 billion yuan, a year-on-year decline of 42.3%; the mother of the net profit after non-recurring gain or loss of 180 million yuan, a year-on-year decrease of 27.39%. With the advancement of the resumption of work and production after the epidemic, the second quarter net profit increased by 96% year-on-year.
Which, do panel TCL Huaxing first half revenue of 19.51 billion yuan, up 19.9%; net profit loss of 133 million yuan, down 1.152 billion yuan year-on-year, in the second quarter ring compared to the first quarter improvement of 215 million yuan; net profit of 0.24 billion yuan of the mother. At the same time, TCL industrial finance, investment venture capital and other businesses to achieve a net profit of 1.2 billion yuan, stabilizing the company's profitability in the panel industry downturn.
Industry trough period, TCL technology for a succession of acquisitions and alliances. Spending 10.974 billion yuan to acquire the Central Group, so as to obtain the semiconductor and photovoltaic materials as the main industry of the Central shares of the controlling stake, so that TCL Technology's business structure in the semiconductor display (TCL Huaxing), industrial finance and investment in the two plates on the basis of the new semiconductor and new energy (Central Group) of the plate. the evening of August 28, TCL Technology also announced that the announcement reveals that the TCL Huaxing spends 1.08 billion U.S. dollars to acquire Suzhou Samsung 8.5 generation line, to further expand the capacity of large-size panels. In addition, in the first half of TCL spent 2 billion yuan strategic investment in Japan JOLED company, but also with Sanan photoelectric established a joint laboratory of MicroLED.
Shen Tianma better performance in net profit growth. In the first half of the year, deep Tianma realized operating income of 14.057 billion yuan, a year-on-year decrease of 3.69%; mother net profit of 744 million yuan, an increase of 15.67%; mother net profit after non-recurring gains and losses of 426 million yuan, a year-on-year increase of 54.4%.
With BOE, TCL Technology has a large number of large-size LCD panel production capacity is different, the deep Tianma focus on small and medium-sized panels, which is the deep Tianma first half of the net profit growth is relatively good. Because the first half of this year, large-size LCD panels, especially LCD TV panels, in the beginning of the year after a slight rebound in prices, it is due to the epidemic affecting end demand and once again a dip, until June only to re-continue to rise.
In addition, with large-sized panels, "the main battlefield" LCD TV market growth is weak, small and medium-sized panels in the downstream areas, despite the decline in sales of smart phones, car display, but notebook computers, tablet PCs, medical products, demand growth. In addition, the deep sky horse in LTPS-LCD (low temperature polycrystalline silicon - liquid crystal) cell phone screen continued to technological innovation and product upgrades, such as the introduction of the in-screen multi-touch fingerprint solution, so the first half of the deep sky horse display and display module gross profit margin increased by 3.83 percentage points year-on-year, to 19.35%.
Currently, BOE, TCL Technologies and SZTMA are still expanding their panel production capacity. For example, BOE is building a 6-generation flexible AMOLED panel production line in Chongqing; TCL Huaxing Wuhan 6-generation flexible AMOED panel production line in mass production in the process of climbing; deep Tianma in Xiamen 6-generation flexible AMOLED panel production line. In addition, the industry continues to have acquisition and merger opportunities. Therefore, it is expected that this Chinese display panel industry three giants in the coming period of time, the size of the revenue will continue to grow, and they will strive to improve profitability through the Mini LED backlight, under-screen fingerprints and other new technologies.