Gelonghui, April 25 | Huaxian Optoelectronics (00334.HK) announced that in the first quarter of 2024, global smartphone shipments increased 7.8% year-on-year to 289.4 million units, which is the third consecutive quarter of positive growth. During the review period, the Group achieved total sales volume of 10.85 million tablets, an increase of 9.0% over the previous year. With the increasing popularity of technologies such as 5G, big data and the Internet of Things, the Group continues to deepen cooperation with TCL Huaxing Optoelectronics Technology Co., Ltd. (“TCL Huaxing”), focusing more on horizontal development of medium-sized display modules. During the review period, the Group's tablet module sales increased 22.6 times to 735 thousand pieces. Driven by the high unit price of education tablet modules, the average sales price of the Group's overall products increased by 52.9% year on year to RMB 93.8 million, and the Group's total turnover during the review period reached RMB 930 million, an increase of 57.3% year on year.

According to the forecast of the international research agency IDC, shipments in the global smartphone market will reach 1.2 billion units in 2024, an increase of 2.8% over the previous year, and shipments are expected to remain stable in the next few years. Despite the improvement in the market, the intensity of the recovery in consumer demand probably fell short of expectations and failed to bring about a full recovery in the market. While the global inflation situation is still uncertain, major brands will still adopt careful inventory management methods. Canalys's latest report indicates that inventories will pull back slightly in the second quarter of 2024, leading to more sustainable growth.

At the same time, demand for education and learning tablets will continue to rise during the pandemic. The Group will deepen cooperation with many well-known brand customers for tablet products to further develop commercial display markets such as smart homes and smart industrial control. At the same time, the Group is also planning to add two new medium-sized production lines in the second quarter to meet market demand.