Revenue from Tianma's in-car display business jumped 40 per cent last year

On March 19, Shenzhen Tianma disclosed the latest record of investor relations activities. The main communication content is as follows:
1. The company's automotive business is a highlight of its operating performance in 2024, with a growth rate of more than 40%, far exceeding the industry. What is the reason for the rapid growth of the company's automotive business? Can this leading advantage continue to expand in 2025? In addition, does the price competition in the downstream vehicle market affect the company's automotive gross profit?
A: In 2024, the company's automotive electronics business for international head vehicle manufacturers will be scaled up, and its share in the new energy market will grow rapidly, and its share in tier1 customers will steadily increase, which will jointly drive the revenue of the automotive display business to grow by more than 40% year-on-year.
At the same time, thanks to the improvement of product specifications, internal comprehensive cost reduction and the gradual scale of automotive electronics business, the company's automotive business gross profit will be further improved under the fierce competition in the auto market, showing a trend of high-quality development.
In 2025, the demand for automotive display products is expected to continue to show a trend of increasing screen quantity and upgrading screen specifications. In particular, the rapid growth of the domestic new energy market, the continuous improvement of LTPS technology penetration, and the trend of large-sized automotive display screens are expected to continue to bring good downstream demand. The company will seize the opportunity and continue to exert its strength in the growth points of automotive business such as automotive electronics and new energy, promote the mass production and delivery of the company's AMOLED automotive products, build comprehensive competitiveness of the automotive business, and strengthen its leading position in the industry.

2. What is the company's plan for AMOLED mobile phones in 2025?
Answer: In 2024, the company's coverage of flexible AMOLED customer flagship projects has increased. With the downstream price repair, product structure optimization and comprehensive cost reduction, the sales of AMOLED mobile phone products have increased rapidly year-on-year, and the profitability of the AMOLED mobile phone business has been significantly repaired.
In 2025, it is expected that the penetration of flexible OLED technology in mobile phones will continue to increase, and downstream demand will continue to grow year-on-year. At the same time, based on consumption stimulus policies such as national subsidies, it will have a certain driving effect on downstream market demand and also play a certain stabilizing role in product prices.
In 2025, the company will continue to promote the capacity tapping of TM17 production line and strive for more sales opportunities; with the steady release of TM18 production capacity, AMOLED product shipments will be further improved, including folding, HTD and other high-specification product shipments will have a rapid growth, and new breakthroughs will be achieved in multi-customer multi-flagship projects.
On this basis, the company will continue to promote the comprehensive cost reduction of AMOLED business and strive for continuous improvement of profit performance.

3. What is the company's LTPS diversification development?
Answer: In recent years, with the gradual reduction of LTPS technology in the mobile phone display market demand, the company has continued to promote diversified product layout on the LTPS production line, and continuously increased the proportion of non-mobile phone display products such as automotive, IT, and special display.
In 2024, non-mobile phone revenue accounted for nearly 70% of the company's LTPS product revenue, especially the proportion of high-value products such as automotive LTPS increased rapidly.
For LTPS mobile phone products, the company will dig deep into internal cost reduction while aiming to ensure the profitability of the production line, optimize the order-taking strategy, continue to improve the flexibility and elasticity of the LTPS production line, and help the LTPS business to develop continuously and steadily.

4. The company's outlook for depreciation in the future.
Answer: Taking into account that some new lines of the new production line TM20 have reached the fixed standard and the mature LTPS production line will gradually expire, it is expected that the company's depreciation in 2025 will not be much different from that in 2024, and it will be at a peak level. Under the premise of no other new line investment, the depreciation amount is expected to gradually decline in the future.

5. What is the rhythm of the release of the capacity of the TM19 high-generation line?
Answer: The TM19 production line will light up the entire product line in 2024, and the first IT product has entered the mass production stage. TM19 will be built in stages, and the goal of 2025 is to complete the first phase of capacity ramp-up. At the same time, it will continue to promote the opening and mass production of multiple business types and projects such as IT, automotive, mobile phones, and special displays to ensure stable delivery and establish the industry reputation of the new production line.