Tianma Forecasts Losses for 1H 2023 Amid Challenging Market Conditions

Tianma has released its performance forecast for the first half of 2023. The company anticipates facing a challenging period, reporting losses due to a combination of factors including a sluggish global economy, complex external environment, and weak end-market demand. These circumstances have led to intensified competition, with the overall industry in a prolonged phase of adjustment and low-profit margins.

During the forecasted period from January 1, 2023, to June 30, 2023, Tianma estimates a net loss attributable to the shareholders of the listed company of approximately 1.4 to 1.46 billion yuan (around $200 million). This is in contrast to the net profit of 371.01 million yuan ($51.8 million) achieved during the same period last year. After deducting non-recurring gains and losses, the company expects a net loss of approximately 1.99 to 2.09 billion yuan (around $279 million), compared to a net loss of 235.72 million yuan ($32.8 million) in the previous year.

The company’s announcement acknowledges that the overall display industry is currently facing multiple challenges, including lower average selling prices compared to the same period last year. In particular, Tianma Microelectronics, operating in the middle and small-sized display segment, has been significantly impacted by the decline in consumer electronics demand. However, the company remains committed to its core business and has implemented various strategies to improve efficiency and competitiveness.

Despite the challenges, Tianma has witnessed positive growth in the shipment volume of its LTPS (low-temperature polysilicon) displays, with a 150% year-on-year increase in the high-end IT segment, including a leading global market share for LTPS tablet displays. Also, the company has seen significant progress in its flexible AMOLED smartphone business, with a considerable increase in shipment volume compared to the previous year. However, intense price competition has squeezed profit margins, limiting the extent of the business’s performance improvement. To address this, Tianma plans to enhance its product mix, accelerate the development of new product lines such as medium-sized displays, and intensify cost optimization efforts to enhance overall competitiveness.