Shenzhen Tianma, a leading display technology company, announced its 2022 annual performance forecast yesterday, revealing a net profit of 100 million to 130 million yuan. This is a significant improvement from its loss of 34.3895 million yuan in the same period last year.
The change in performance was attributed to a number of factors including a slowdown in global economic growth, weak demand, and increased competition in the industry. Despite these challenges, Shenzhen Tianma has remained focused on its "2+1+N" strategy, strengthening its core capabilities and seizing market opportunities to achieve stable operations.
Decline in Smartphone Market Demand
One of the main challenges faced by Shenzhen Tianma during the reporting period was the sluggish market demand for consumer LTPS business, particularly smartphones. The company has responded by optimizing its product structure and deepening its diversified business cooperation with mainstream brand customers.
Despite the declining prices and profitability of smartphones, Shenzhen Tianma remains committed to maintaining its global leadership in the LTPS mobile phone display business. The company is also expanding its LTPS products into the IT display and vehicle display fields, aiming to increase its market share in these areas.
Improving AMOLED Business
Shenzhen Tianma's AMOLED business has continued to improve during the reporting period, with flexible display products being applied in multiple brand customer product lines. The company is working to improve product competitiveness and cover more customer projects in order to achieve a larger share of the market.
Rebounding Auto Market and Strong Demand for Industrial Products
The demand for the auto market has rebounded, and the demand for industrial product segments remains strong. Shenzhen Tianma's professional display business has made a significant contribution to the company's performance, and the company will continue to deepen its cooperation with existing customers and develop new customers in emerging markets and application fields, including new energy vehicles.
Non-Recurring Gains and Losses
Shenzhen Tianma reported that the main non-recurring gains and losses during the reporting period were government subsidies included in the current profit and loss. After deducting income tax expenses, the impact on the net profit attributable to shareholders of listed companies was estimated to be between RMB 1,370 million to RMB 1,480 million.
Continuing Focus on Small and Medium-Sized Display Business
Shenzhen Tianma remains focused on its small and medium-sized display business, taking mobile phone display and vehicle display as the core business and IT display as the key business for rapid growth. The company will continue to optimize its product structure, improve its operating level, and actively seize market development opportunities in order to achieve sustainable growth.
Shenzhen Tianma's 2022 annual performance forecast is a testament to the company's resilience and ability to overcome challenges in a challenging industry. The company's focus on its "2+1+N" strategy, optimization of its product structure, and development of new markets and applications are key factors in its success. With a net profit of 100 million to 130 million yuan expected in 2022, Shenzhen Tianma is poised for continued growth and success in the future.
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