Mini backlight bulk shipments, Guoxing Optoelectronics recorded nearly 1.5 billion in revenue in the first half of the year.

On the evening of August 20, Guoxing Optoelectronics released its 2020 semi-annual report. Under the impact of the COVID-19 pandemic, Guoxing Optoelectronics has actively promoted the transformation of technological innovation achievements while ensuring epidemic prevention and production operations.

Financial data shows thatGuoxing Optoelectronics achieved a revenue of 1.494 billion yuan in the first half of the year, with a net profit attributable to the parent company of 62.8172 million yuan.Affected by the pandemic, domestic and foreign order demand has rapidly contracted in phases. To seize the limited market share during the pandemic, Guoxing Optoelectronics adjusted the pricing strategy of some products, resulting in a certain decline in performance.

Public information shows that Guoxing Optoelectronics has been involved in the electronics and LED industry for over 50 years, achieving a full industry chain layout in the LED industry. In the field of LED packaging, Guoxing Optoelectronics has grown into a leading enterprise, with revenue in this sector reaching 1.205 billion yuan in the first half of the year, accounting for 80.68% of Guoxing Optoelectronics' total revenue.

Display screen devices, white light devices, indicator devices, display modules and backlight sources, Mini backlight modules, etc. are the main products of Guoxing Optoelectronics' LED packaging sector, which has achieved full coverage of application markets such as LED lighting and display, and consumer electronics.

With theMini LEDtechnology further maturing and the terminal market gradually opening up, Guoxing Optoelectronics has continued to promote a 1 billion yuan expansion plan for the new generation of LED packaging devices and supporting epitaxial chip phase II project this year. In addition, at the beginning of this month, Guoxing Optoelectronics announced further investment plans not exceeding 1.9 billion yuan to build the Guoxing Optoelectronics Geely Industrial Park project, focusing on the production of RGB small pitch, Mini LED, TOP LED and other products.

According to research data from the GGII LED Research Institute, the market size of small pitch LED displays in China was 13.5 billion yuan in 2019, and it is expected to grow by 41% year-on-year to 19 billion yuan in 2020; the Mini LED market size is expected to grow by 140% year-on-year to 3.78 billion yuan in 2020, based on a 215% year-on-year growth in 2019.

The market share of small pitch LED is steadily increasing, while Mini LED is maintaining high growth, benefiting from the promotion of various enterprises in the LED industry chain, as well as the entry of panel manufacturers such as BOE, and the market size is expected to expand rapidly.

Guoxing Optoelectronics has laid out its Mini LED strategy early and has formed strong competitiveness and a patent moat.

According to reports from Gaogong New Display, Guoxing Optoelectronics launched the world's first generation Mini LED product IMD-M09T in June 2018 and achieved mass supply. As of now, Guoxing OptoelectronicsMini displayproducts have launched multiple products such as IMD-M05, IMD-M07, IMD-M09, IMD-F12, IMD-F15, and have entered the stage of large-scale mass production.

In the first half of the year, in terms ofMini backlightproducts, Guoxing Optoelectronics also made significant progress. The semi-annual report shows that Guoxing Optoelectronics has developed three diversified Mini backlight technology routes: Mini SMD, Mini COB, and Mini COG, in line with the needs of terminal customers, and has achieved bulk orders and shipments, with deep cooperation with leading panel manufacturers such as TCL Huaxing.

In addition, Guoxing Optoelectronics mentioned in the semi-annual report that in the first half of the year, the company actively improved Mini backlight technology solutions and manufacturing processes, as well as enhanced cost control capabilities, which will help terminal manufacturers expand the application fields of Mini backlight technology.

In terms of patent layout, Guoxing Optoelectronics continues to enrich its Mini LED technology patent layout, with a total of 116 Mini LED-related patents applied for and 47 patents authorized.

As Mini LED gradually scales up and matures, Guoxing Optoelectronics is accelerating its layout ofMicro LED. In the first half of the year, the company launched its first generation Micro LED display product - nStar I, targeting emerging markets such as automotive head-up displays and commercial window displays, using glass as the substrate medium, achieving a transparency of up to 60%.

In addition to Mini/Micro LED, Guoxing Optoelectronics has also strengthened the development and research of forward-looking new technologies such as UV LED devices, quantum dot light-emitting devices, and third-generation semiconductor modules in the LED packaging sector, providing strong support for a comprehensive entry into new fields such as ultraviolet curing and photocatalysis.

In the first half of the year, the revenue from LED epitaxy and chips, LED lighting applications, and others were 17.7276 million yuan and 249 million yuan, accounting for 1.19% and 16.66% of Guoxing Optoelectronics' total revenue, respectively. Among them, the LED epitaxy and chip sector is led by Guoxing Semiconductor, which mainly researches and develops Mini LED, UV LED, and high-power flip chips.

Gaogong New Display learned thatGuoxing Semiconductor has achieved supply of UV-A ultraviolet chips and small batch shipments of Mini LED chips.

In the semi-annual report, Guoxing Optoelectronics pointed out that with the government's strong deployment of "new infrastructure", public health safety protection, smart cities, and other measures, as well as the gradual resumption of normal production across the country and overseas, the industry market has begun to warm up.

Guoxing Optoelectronics will continue to benefit from promoting the transformation of technological innovation achievements, adhering to the innovation-driven development strategy, focusing on refined management and cost control advantages, and steadily developing in a positive direction.