TCL is making a move again.

Under the leadership of Chairman Li Dongsheng, TCL Electronics, a leading player in the panel industry, has weathered the industry's cold spell in the past two years and is now gearing up for the future.

Technology remains the core key to breaking through for TCL Electronics. At the recent China Household Appliances and Consumer Electronics Expo (AWE 2024), TCL Electronics showcased a range of cutting-edge technology products for the first time, including the world's first mass-produced 100-inch level QD-Mini LED TV, the TCL X11H, and the world's first printed OLED laptop, opening up new market possibilities.

OLED, considered the next-generation mainstream display technology, faces the challenge of high production costs, while printed OLED technology can significantly reduce costs. Therefore, the commercialization process of printed OLED has been closely watched by the industry, making TCL Electronics' global debut of the first printed OLED laptop undoubtedly a focal point.

In order to enhance operational efficiency, TCL Electronics underwent a major asset restructuring in 2019, splitting its business into two main entities: TCL Electronics Technology and TCL Electronics Industry. TCL Electronics Technology is mainly engaged in semiconductor displays and photovoltaic businesses, with semiconductor displays falling under its subsidiary, Huaxing Optoelectronics.

Translated by human. In early December last year, the world's first printed OLED display production line began to move equipment into TCL ELECTRONICS' Huaxing Wuhan factory.

Liu Xiaolan, Vice President of Market and Brand at TCL ELECTRONICS Huaxing, revealed that the installation of the printed OLED production line equipment in Wuhan has been completed and is currently undergoing debugging. "Overall, the progress is going smoothly as we had anticipated, following the schedule."

The parameters of the world's first printed OLED laptop showcased at the TCL ELECTRONICS exhibition are 14" 2.8K. This product marks TCL ELECTRONICS Huaxing's entry into the laptop display field with OLED technology for the first time, achieving full coverage in laptops, monitors, and TV products.

Liu Xiaolan pointed out that this printed OLED laptop is a mass-produced product, and production output is expected by the end of this year.

This is a promising market. According to DSCC data, by 2026, the OLED market for IT applications, including laptops, is expected to reach $3.6 billion. Omdia predicts that OLED's share in the IT monitor market will expand from 3.9% last year to 23.6% by 2027.

In addition, TCL ELECTRONICS Huaxing's printed OLED technology will also be applied in other medium-sized displays, such as medical displays.

Medical displays are an important direction for TCL ELECTRONICS Huaxing. Liu Xiaolan stated that the overall cost of printed OLED is currently high in the short term, and due to the high specifications and technology presented, it is suitable for applications in medium-sized and high-end medical displays.

While laying out the next generation of display technology, TCL ELECTRONICS Huaxing is also seeking more opportunities in market applications, with esports screens being a key focus of their efforts. According to data from Lutu Technology, the global TV market's total shipments of finished products reached 201 million units in 2023, a 1.6% decrease compared to 2022, hitting a new low in nearly a decade. In contrast, gaming monitors have become a new growth area, with a 21% year-on-year increase in retail sales in the online market for gaming monitors in China in 2023, pushing the gaming penetration rate to 49%.

Established in 2009, TCL Electronics, which started with large LCD TV screens, mainly focused on TV and mobile products in the past. In 2019, TCL Electronics ventured into the mid-size gaming monitor market, mainly produced by the Huaxing factory in Suzhou.

It is reported that TCL Electronics' gaming monitors have held the global market share for nine consecutive quarters, with a market share of over 30%. Lenovo, Samsung, and others are its cooperative clients.

For TCL Electronics, in a TV industry facing saturation, emerging display areas such as gaming, automotive, and foldable screens represent potential business growth points for the future.

Zhao Jun, CEO of TCL Electronics, has stated that in the absence of significant external market demand growth, display panel companies must adjust their operational strategies, respond more flexibly to changes, and make adjustments and optimizations on the supply side.

Semiconductor display panels are a recognized cyclical industry, with cycles mainly influenced by the combination of capacity and demand cycles along with economic cycles. In 2022, the panel industry experienced a downturn, marking the "harshest global industrial winter for semiconductor displays." TCL Technology's net profit plummeted by 97% year-on-year. However, the industry began to recover in the second half of last year, and TCL Technology's profit situation also started to improve.

TCL Technology's 2023 performance forecast indicates that the company is expected to achieve operating income of 173.55 billion to 177.35 billion yuan during the period, with a potential maximum year-on-year growth of 6%. Achieving a net profit attributable to shareholders of the listed company of 2.1 billion to 2.5 billion, with a year-on-year growth of up to 8.5 times; achieving a non-net profit of 900 million to 1.3 billion, reversing losses year-on-year.

Regarding this year's panel market trends, Liu Xiaolan is optimistic. She pointed out that based on the current demand in the panel market, overall it is more optimistic than last year's forecast.

However, Liu Xiaolan also noted that the panel industry has been a capital-intensive industry in the past, with factories aiming for full production and sales. However, starting from the second half of the year before last, TCL Electronics has also undergone a transformation in its business philosophy, shifting from full production and sales to demand-based production, flexibly adjusting according to customer needs to maintain stable end prices.

"As a company, it's like rowing against the current; if you don't advance, you retreat." Fully aware of this, Li Dongsheng also feels immense pressure. In a talk show he participated in last year, he candidly stated that for TCL Electronics to have achieved its current scale, failure is not an option.

For TCL Electronics, to stably navigate through industry cycles, it must always maintain a leading technological edge, keen market insights, further enhance profitability, and strengthen its foundation.

This is destined to be a journey full of challenges.