Affected by the epidemic, the housing economy, which started to have a fever in 2020, has continued to spread until now, and it has driven the panel price to rise all the way, which is expected to further boost the overall output value of the panel industry in 2021 to exceed 150 billion U.S. dollars. On BOE’s official WeChat account, BOE’s performance report stated that BOE’s 2020 annual revenue was 135.553 billion yuan, a year-on-year increase of 16.8%; net profit attributable to shareholders of listed companies was 5.036 billion yuan, a year-on-year increase of 162.46%. In the first quarter of 2021, BOE achieved a good start, with a single-quarter revenue of 49.655 billion yuan, a record high, and a single-quarter profit exceeding the entire year of last year. BOE's overall display shipments in 2020 will rank first in the world; the market share of flexible AMOLED is the first in China and the second in the world.
In 2020, due to the impact of the new crown epidemic, the development of the "home economy" exceeded expectations. Since the second half of 2020, the display panel market demand has continued to pick up. At the same time, due to the tight supply of upstream materials such as driver ICs, glass substrates and polarizers, panel prices continue to rise, driving the development pattern of the panel industry in 2020. The total revenue of major global panel makers in 2020 is approximately 120 billion U.S. dollars, a year-on-year increase of 6%.
With the gradual release of production capacity of new panel production lines in Mainland China and the optimization of newly acquired panel production line resources, the production capacity allocation and technological advantages of panel makers in Mainland China will continue to expand. It is expected that the annual sales of panel manufacturers in Mainland China will reach 2021. About 60 billion U.S. dollars, accounting for about 40% of the total revenue of the world's major panel makers, an increase of 8% compared to the share in 2020. By then, BOE's sales in 2021 are expected to surpass the two Korean panel makers, ranking first in the world.
From the perspective of regional distribution, benefiting from the effective control of the domestic epidemic, the total revenue of several major domestic panel factories was approximately US$38.9 billion, an increase of 18% year-on-year, accounting for about 32% of the total global panel factory revenue, an increase of 3 compared to 2019 %, the share of the global panel revenue market has further expanded; Korean panel companies and Japanese panel companies accounted for 39% and 13% of global panel factory revenues in 2020, respectively, which were 2% lower than their share in 2019; In 2020, Taiwan's panel company revenue accounted for 16%, an increase of 1% compared to 2019.
According to the revenue data of various panel makers, South Korea’s Samsung Display SDC, LG Display LGD, and China BOE’s BOE rank among the top three in the world in revenue, Japan’s Sharp, Taiwan’s AUO, Innolux, and China’s TCL Huaxing and Tianma’s revenue It occupies the fourth to eighth place in the world, and the total revenue of the top eight panel factories accounts for about 90% of the global panel factory revenue.
China's domestic panel companies BOE and TCL Huaxing not only have outstanding revenue performance in 2020, but also rank among the best in global panel companies in operating profit. BOE's operating profit in 2020 is approximately US$900 million. Compared with 2019, it has achieved a significant growth of 13.6 times. It is the domestic panel company with the highest operating profit in China, ranking second in the global panel company operating profit, second only to Samsung Display SDC. In 2020, BOE's five major products, LCD smartphones, tablet computers, notebook computers, monitors, and TVs, will rank first in the world in terms of display shipment volume and sales area market share. TCL Huaxing’s 2020 operating profit is approximately US$400 million, a year-on-year increase of 181.8%, leading the industry in operating efficiency, and ranking third in the operating profit of global panel companies. With the completion of the Suzhou t10 and the ramping up of the Shenzhen t7 capacity, the large-scale capacity area will increase by 50% by the end of 2021, and the price of superimposed panels will continue to rise, which is expected to usher in further business expansion. By focusing on small and medium-sized panels, Tianma is currently the third largest panel supplier in China. In 2020, it will achieve an operating profit of approximately US$230 million, a year-on-year increase of 59.0%, ranking fourth in the operating profit of global panel companies.
CINNO Research predicts that in 2021, total global panel sales are expected to exceed 150 billion U.S. dollars, reaching a record-setting display panel industry revenue, with a year-on-year growth rate of more than 25%.
With the gradual release of production capacity of new panel production lines in Mainland China and the optimization of newly acquired panel production line resources, the production capacity allocation and technological advantages of panel makers in Mainland China will continue to expand. It is expected that the annual sales of panel manufacturers in Mainland China will reach 2021. About 60 billion U.S. dollars, accounting for about 40% of the total revenue of the world's major panel makers, an increase of 8% compared to the share in 2020. By then, BOE's sales in 2021 are expected to surpass the two Korean panel makers, ranking first in the world.
