According to the Star Daily on December 18 (Reporter Huang Xiumei), "The company is continuously promoting the R&D of AMOLED products and will soon apply them in the wearable device field. The AMOLED products for smart phones are also being actively developed, and in the future, AMOLED display driver ICs will become an important growth point for the company," said Zhao Lixin, Chairman of GeKowei, at the Q3 2024 performance briefing.

GeKowei is one of the leading domestic and internationally renowned semiconductor and integrated circuit design companies, with its main Business focused on the R&D, design, packaging, testing, and sales of CMOS image Sensors and display driver chips.

In the past two years, the company's CMOS image Sensors have expanded from the traditional 2 million to 8 million pixels to high pixels of 32 million to 50 million; the display driver chips have expanded from LCD DDI to TDDI, while promoting the R&D of AMOLED display driver chips.

The Star Daily reporter noted that GeKowei's 50 million pixel products are divided into 0.7 micron and 1.0 micron levels. Currently, its 0.7 micron GC50E0 has achieved mass production and shipment for brand customers, with a target market positioning for entry-level Android brand phones.

As for the 1.0 micron level products, Zhao Lixin, Chairman of GeKowei, replied to a question from the Star Daily reporter, stating, "In terms of CMOS image Sensors, the 1.0 micron 50 million pixel product GC50B2 has been launched for market promotion, and is under tight debugging with customers. Mass production is expected to be achieved by 2025."

A recent Research Report from Zhongyou Securities mentioned that according to market research, the 50 million pixel products are rapidly penetrating the smart phone CIS market. By 2026, it is expected that the global shipment volume of 50 million pixel CIS may surge to 1 billion units.

"In terms of display driver chips, the trends of TDDI and AMOLED DDIC development are evident. Currently, the company's TDDI products have already achieved mass production for brand customers, and the revenue proportion has significantly increased," Zhao Lixin further stated.

Guo Xiuyun, secretary of the Board of Directors and CFO of Gekewei, told the Star Daily reporter that from the company's performance in the first three quarters of this year, Gekewei's high pixel product income has significantly increased year-on-year. Among them, the income from CMOS image Sensors - mobile business for products with 13 million pixels and above was less than 0.1 billion yuan in the same period last year, but has reached about 1 billion yuan in the first three quarters of 2024.

In the aspect of CMOS image Sensors - non-mobile business, the company's products are mainly applied in Smart City, smart home, conference systems, and other scenarios, with revenue in the first three quarters of this year increasing by about 13% year-on-year, primarily from 4 million pixels and above products.

In the display driver chip business, TDDI (Touch and Display Driver Integration) income has increased significantly, currently accounting for more than 50% of the revenue in the display driver chip business.

However, it is worth noting that the company's revenue in the third quarter of this year was 1.764 billion yuan, marking a new high in nearly two years, yet the net income attributable to the parent company for that quarter was a loss of 69.38 million yuan.

In this regard, Guo Xiuyun explained: "The company's daily operation and equipment procurement involve US dollar settlement, and the company will maintain a certain scale of net US dollar exposure throughout the year. In the third quarter of this year, the exchange rate of the US dollar against the RMB showed a one-sided downward trend, resulting in exchange losses for the company's net exposure priced in US dollars, amounting to 92.8916 million yuan."

"In the first three quarters of this year, the cumulative impact of exchange losses amounted to 57.6657 million yuan. If the exchange gain and loss factor is excluded, the net income attributable to the parent company during the same period was 57.3542 million yuan, which is an increase of 46.3351 million yuan compared to the same period last year." Guo Xiuyun stated, "Currently, the exchange rate of the US dollar against the RMB is gradually rising, and the aforementioned exchange losses have partially eliminated their impact on the company's operating performance."