“Science and Technology Innovation Board Daily”, August 19 (Reporter Qiu Siyu) This evening (August 19), Wright Optoelectronics revealed its 2024 semi-annual report.

In the first half of 2024, Wright Optoelectronics achieved operating income of about 0.246 billion yuan, an increase of 73.65% year on year; net profit to mother of about 92.48 million yuan, an increase of 111.43% year on year; after deducting non-net profit of 82.4826 million yuan, an increase of 151.23% over the same period last year.

In terms of performance in a single quarter, the company achieved revenue of 0.1,315 billion yuan in the second quarter, an increase of 85.28% year on year; net profit to mother was 48.97 million yuan, up 142.16% year on year, and net revenue and profit all hit record highs in a single quarter.

Referring to the reasons for the increase in performance, Wright Optoelectronics said that in the first half of 2024, demand for consumer electronics picked up, OLED accelerated penetration in various downstream terminal application fields, and demand for OLED panels continued to rise. Furthermore, the OLED panel industry pattern continues to be optimized. According to data from market research company CINNO Research, in the first half of 2024, Chinese display companies accounted for 50.7% of global smartphone OLED display shipments, an increase of 10.1 percentage points over 40.6% in the first half of 2023.

Wright Optoelectronics also said that domestic panel manufacturers have increased their investment in high-generation OLED production lines. BOE and Vicino have successively announced investments to build 8.6-generation high-generation OLED production lines. Domestic OLED panel production capacity continues to rise, and demand in the OLED organic materials market is further expanding.

It is worth mentioning that Ruilian New Materials, which is also an OLED materials manufacturer, also grew rapidly in the first half of this year. The company also mentioned that in the first half of the year, the boom in the terminal consumer electronics industry picked up further, the panel industry's supply and demand situation improved, and global demand for OLED materials continued to grow steadily.

Demand is picking up, and shipments of OLED terminal materials have increased dramatically

According to reports, during the reporting period, shipments of Wright Optoelectronics OLED terminal materials increased dramatically, and there was a steady mass production supply of Red Prime materials and Green Host materials. In addition, the company's OLED terminal material production capacity has increased dramatically. By the end of the reporting period, the company had a production capacity of 12 tons/year for OLED terminal materials.

In terms of the intermediate business, Wright Optoelectronics's OLED intermediate products and customer structure transformation have achieved initial results. The share of high value-added materials such as deuterium gradually increased, and 7 trial production projects were launched in the first half of the year, which is expected to gradually achieve mass production; in terms of pharmaceutical intermediates, the company developed companies such as Sato Pharmaceutical and Chia Tai Tianqing Pharmaceutical during the reporting period.

In terms of R&D, during the reporting period, Wright Optoelectronics invested 29.9929 million yuan in R&D expenses, an increase of 21.15% over the previous year. The company's Red Prime materials have continued to iterate the mass production application of 7th generation devices and are better tested in the new generation of devices; Green Host materials continue to iterate the mass production application of 2nd generation devices and have been successfully verified in the new generation of devices; Red Host materials have passed mass production tests by customers and are expected to be delivered in batches this year.

In terms of new technology, Wright Optoelectronics has developed key core CGL materials, sensitized green TADF materials, and high color gamut display materials for Tandem devices, and is collaborating with customers to industrialize blue phosphorescence technology.

It should be noted that Wright Optoelectronics's sales revenue to BOE accounts for a large proportion of operating income, and the two parties have agreed on regulations relating to price reduction in the framework agreement.

According to reports, the two parties have agreed that the price of Wright Optoelectronics's products under the same contract will be reduced by a certain margin every year. During the reporting period, the sales price of the same product sold by the company to BOE decreased year by year after the initial pricing, but the new products launched were repriced. Wright Optoelectronics also admits that if the introduction of new products does not progress smoothly, or the pricing of new products falls, then the company may face the risk of falling gross margin due to product price cuts.