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Display On cell equipment investment expansion upgrade shipping


June 11, the shareholders' meeting held on Display, Display pointed out that this year to further expand the industrial competition, resulting in a profit continued to decline. This year will increase by On Cell integrated panel profitability, in addition to 2.5 billion yuan investment will hit a high-definition panel production equipment, expand production capacity by upgrading to bottlenecks and equipment.

       Caijing chairman Jiaoyou Qi pointed out last year because of excess supply industrial competitiveness to expand, resulting in panel price decline in revenue last year compared to the previous year decline of 25%, the outer aspect of the industry but also by reforming Wintek set aside reserves for bad debts and asset impairments , resulting in a profit decline. This year will focus on improving its operational side, enhanced product portfolio, increased smartphone panel cast sheet, and the integration of upstream and downstream supply chain, to provide integrated product. 5.3-generation panel production line of the original touch and Xin, the continued development of OGS, On Cell touch panel and touch module with LCM module production line in Nanjing, hoping to achieve the benefits of one-stop production.

       Display the conservative outlook for the second half, off LTPS industrial expansion wave, fierce competition panel of high-end phones, the company locked in low-end panel market, is hoped to reduce costs and provide integrated panel On Cell enhance profitability. On cell products shipped in the first half of this year accounted for less than 10%, pulled up to the second half of the target of 20% to 30%.

       For the second half of mobile phone panel market conditions, Caijing view to the conservative right. Display Product Development & Manufacturing Center, Deputy Jane Ting Gazette said the second quarter is the bottom, the recovery of the third quarter of the force is not strong, especially the price is still slow down the trend, the company conservatively to right. Continental fast expansion in recent years has been the construction of factories or 6th generation LTPS production line with up to 12, resulting in high-end LTPS AMOLED panels and panel prices plummeting. Display 5.3-generation line has been 10 years, has depreciated substantially, compared to up to 9 LTPS process mask, non-refined silicon panel mask number only 5 to 6, there are quite competitive production costs, thus locking in low-end mobile phone panel market, hoping to avoid the high-end LTPS competition.

       Jane Ting constitution said that this year will hit 2.5 billion yuan investment in high-definition panel production equipment, and to enhance the capacity expansion through debottlenecking and equipment, production in the second half of the 5.3 generation line capacity from 110,000 to 130,000. As for product strategy, hoping to gradually increase On cell integrated touch panel shipment proportion, pulled up from the current 10% to 20% to 30%.

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