On January 26, the financial report data released by Hehui Optoelectronics showed that the company will have a total revenue of RMB 30 in 20233.8 billion yuan, a year-on-year decrease of 2750%；Net loss of 324.5 billion yuan, after deducting non-recurring accounts, it is still negative, and the deficit reached 333.2 billion RMB.
Both sets of values set new records for the business segment since its inception, and the total loss even reached a staggering RMB968.1 billion yuan.
In response to the company's continued financial performance, Hehui Optoelectronics would not disclose the actual problems and only stated that any issues related to the company's operation or future development should be understood and interpreted in accordance with the official announcement that has been published.
According to the public information on the official website, Hehui Optoelectronics is a company established in 2012 and successfully listed on China's Science and Technology Innovation Board in May 2021, with an IPO financing amount of up to 817.2 billion yuan.
As a technology company focusing on the R&D, production and sales of AMOLED semiconductor display panels, Hehui Optoelectronics has widely used its products in consumer terminal electronics such as smart wearables, tablet and notebook computers, and is also striving to develop the AMOLED semiconductor display panel market in professional fields such as automotive, airborne and medical displays.
In the explanation of the reasons for the sharp decline in performance, Hehui Optoelectronics pointed out that in 2023, under the background of the complex world political situation and the global economic downturn, the weak demand in the consumer electronics market has made the product sales of the AMOLED semiconductor display panel industry significantly larger, and the gross profit margin has decreased more than the cost, so the profitability has been greatly affected.
In the first three quarters of 2023, the sales of AMOLED semiconductor display panel products** continued to decline and decline, resulting in a year-on-year decrease in revenue despite an increase in shipments.
Looking back on the performance development in the past few years, the revenue of Hehui Optoelectronics has shown an upward trend year by year. From 2017 to 2022, the company's revenue will be 61.6 billion yuan, 80.3 billion yuan, 151.3 billion yuan, 250.2 billion yuan, 402.1 billion and 41$9.1 billion; In contrast, the net loss was -1 billion yuan and -8 yuan respectively4.7 billion yuan, -100.6 billion yuan, -103.6 billion yuan, -94.5 billion and -160.2 billion yuan, which is a record of losses for many consecutive years.
The seven-year continuous loss of Hehui Optoelectronics is an important challenge to its strategy and operating ability," said Zhan Junhao, founder of Fujian Great Aim Brand Positioning Consulting, who is deeply worried about this, he believes that the competition in the AMOLED semiconductor display panel industry has been very fierce, technology and capital are inseparable, and all enterprises must continue to invest in R&D and innovation.
In addition, the volatility of the consumer electronics market, such as smartphones, poses an uncertain factor, which brings long-term obstacles to the company's performance growth.
As of this Tuesday (January 23), the share price of Hehui Optoelectronics reached 209 yuan shares, breaking the record low, has been halved from the highest point since listing.
In May 2021, the company was listed on the Science and Technology Innovation Board, and the issue at that time was 265 RMB shares. The highest share price of the day rose to 514 RMB shares, but then all the way**.
The decline in demand in the global consumer electronics industry has made the upstream display panel industry in which Hehui Optoelectronics is located even worse.
The reasons for the downturn in the display panel industry are complex and diverse, and Yuan Shuai, director of the high-quality development promotion project of senior specialized and special new enterprises, explained that on the one hand, the market for consumer terminal electronic products such as smartphones and tablets tends to be saturated, which makes the demand for display panels plummet; On the other hand, over-investment in the low-end of the industry has led to overcapacity, fierce market competition, and escalating wars. In addition, the iteration of new display technology and the expansion of application fields have undoubtedly hindered the development of the traditional display panel market.
At the investor research meeting on December 7, 2023, Hehui Optoelectronics clearly responded that in the weak market environment, it has actively adjusted its sales strategy and made every effort to implement various measures to reduce costs and improve efficiency.
On the one hand, the company keeps a close eye on market dynamics and customer needs, maintains steady shipments in key application areas such as wearable devices, mobile phones and tablets, and vigorously expands its market share and enriches and optimizes its product portfolio. On the other hand, Hehui Optoelectronics has made every effort to improve the level of lean production management, improve production efficiency, optimize product quality, and strictly control costs by improving the capacity utilization efficiency and product yield rate of the production line.
Despite the sluggish market demand, Hehui Optoelectronics is still optimistic about the prospects. The differentiated competition strategy dominated by rigid products adopted by the company avoids the fierce competition of domestic flexible AMOLED products and has insight into the huge potential of the medium and large-size AMOLED market.
According to CinnoResearch statistics, the global market will reach 6900 million pieces, a year-on-year increase of 161%, including 30 in the fourth quarterThe shipment growth rate of 9% also reached 35% month-on-month1%。
With the rapid development of technologies such as 5G and the Internet of Things and the rapid iteration of consumer electronics, the display panel industry is expected to achieve breakthroughs.
In the future, the development of the panel industry will focus on high resolution, flexibility, and transparency. High resolution can provide a clearer, more realistic picture experience, while flexibility and transparency will undoubtedly lead to more diverse applications and slimmer and convenient product designs.
At the same time, with the prosperity of emerging display technologies and the expansion of application scope, the display panel industry is also expected to gain deeper applications in smart home, automotive display, virtual reality and other fields.
In the coming 2024, as the global economy gradually recovers, the consumer electronics market is expected to recover, and the display panel industry may usher in a turnaround.
However, in order to really see the development trend, we must pay attention to the following factors: first, how the progress of new technologies brings new opportunities to the industry, such as mini led, micro led, etc.; Second, enterprises must enhance their strength by differentiating products, optimizing the best chain, and improving production efficiency; The third is the impact of the policy environment, such as China's leading support policies for the new display industry.