Analysis of China's OLED Industry Trend

June 2021

Chief Analyst Dr. Choong Hoon YI

Analyst Dae Jeong YOON

1. Outline ··················································································································· 5

2. Current Status of China's OLED Application Product Industry ············································ 7 2.1 Smartphone Launch Trend in The First Half of 2021 2.2 Foldable and Rollable Phone Trends 2.3 Analysis of Mass Production Model by Company 2.4 OLED TV Release Trend in The First Half of 2021 2.5 Trend of OLED TV Products

3. OLED Exhibition Trends by Chinese Panel Makers ··························································· 33 3.1 BOE 3.2 CSOT 3.3 EverDisplay Optronics 3.4 Tianma 3.5 Visionox 3.6 OLED Display Trend Analysis for Watch 3.7 Foldable and Rollable OLED Exhibition Trend Analysis 3.8 TV OLED Exhibition Trend Analysis

4. OLED Business Status of Chinese Panel Makers ··························································· 63 4.1 BOE 4.2 CSOT 4.3 EverDisplay Optronics 4.4 Tianma 4.5 Visionox 4.6 Royole

5. Chinese Component Material Market for OLED ··························································· 80 5.1 Major Components and Materials Market Performance Analysis 5.2 Major Components and Materials Market Forecast

6. China Emitting Material Market ·············································································· 163 6.1 Supply Chain and Panel Structure Analysis by Panel Maker 6.2 China Emitting Materials Market Performance Analysis 6.3 China Emitting Materials Market Forecast

7. Equipment Supply Chain Analysis ············································································· 174 7.1 OLED Equipment Supply Chain for Mobile Devices 7.2 Detailed Supply Chain of BOE B7/B11/B12 7.3 Equipment suppliers of CSOT T4-ph2 7.4 Equipment Suppliers for Visionox V3

8. Capa analysis of Chinese OLED Panel Makers ····························································· 195 8.1 Mass Production Capa Forecast 8.2 Mass Production Capa Forecast by Company 8.3 Mass Production Capa Forecast by Generation 8.4 Forecast of Mass Production Capacity by Company for Mobile Devices 8.5 Forecast of Mass Production Capacity by Substrate Type for Mobile Devices

9. China OLED Performance Analysis and Forecast ·························································· 209 9.1 Total Sales Performance by Quarter 9.2 Market Performance Analysis by Company 9.3 Market Performance Analysis by Product 9.4 Market Performance Analysis of Smartphone OLED 9.5 Market Performance Analysis of Watch OLED

2.1 Smartphone Launch Trend in The First Half of 2021 ▪ Oppo, Xiaomi, Vivo, Realme, Huawei, and ZTE are six companies with a high proportion of OLED smartphones to be released in the first half of the year.

▪ Lenovo, which operates mainly on low-cost LCD smartphones, is also planning to release two models.

Display Type by Smartphone Makers 20

10 EA 8

2.2 Foldable and Rollable Phone Trends TCL ▪ At the ‘TCL 20 Pro’ public event, a smartphone concept named ‘Fold n Roll’ was unveiled.

▪ When the smartphone with an out-folding structure is unfolded, the display rolled on the side is expanded. Usually, it folds to 6.87 inches, but can be unfolded to 8.85 inches. If you take out the rollable display, it will grow to the size of a 10-inch tablet.

▪ TCL explained, "TCL's dragon hinge technology and extended display are implemented in one device."

Source: The Verge, TCL Mobile

3.7 Foldable and Rollable OLED Exhibition Trend Analysis

Foldable OLED and rollable OLED exhibition trend

Year 2020 2020 2020 2020 2020 Company Visionox Visionox Visionox TCL CSOT Visionox Size [inch] 6.47 6.92 6.92 6.67 6.92 1080 x 2400 Resolution - - - - (394ppi) Brightness [cd/m2] - - - - - Panel thickness [mm] - 4.85 - 7 - Bending radius [mm] 1.5 4 In: 2.85 / out: 4 3 - Color gamut [%] - - - - - Contrast ratio ------In folding - Baseball bat- - UTG cover - Notebook like hole window Feature - Out-folding - In&out-folding model - teardrop-like - Hardness: H - With 6.47 hole - Weight: 120 g flexible OLED

Picture

Source: UBI Research DB

4.1 BOE Business status by factory [B11 Mianyang (6G)] ▪ The total capacity is 48K/month, and mass production of ph-2 and ph-3 began in the 3rd and 4th quarters of 2020, respectively.

▪ Yields are **% TFT, **% EVEN, **% even after cell (EAC), **% TSP, and **% overall yield.

▪ Currently, 5 lines out of 14 module lines are in operation and will be continuously inspected by Apple in the future. The target is to complete the inspection of all 14 vehicles by mid-June 2021.

▪ The overall yield of the B11 module line was investigated as **%, and the goal is to improve it to **% by June.

BOE's B11 line utilization rate in 2021

Jan Feb Mar Apr May utilization utilization utilization utilization utilization input input input input input rate rate rate rate rate

Source: UBI Research DB

6.3 China Emitting Materials Market Forecast By Chinese panel maker

Source: UBI Research DB

9.4 Market Performance Analysis of Smartphone OLED Quarterly sales and market share analysis by company ▪ Chinese panel makers' OLED market for smartphones is led by BOE and Visionox.

▪ BOE and Visionox's sales in the first quarter of 2020 were $*** million and $*** million, respectively, occupying 47.8% and 26.1% of the market.

Revenue for smartphone by company Revenue ratio for smartphone by company

1200 100%

90% 1000 80%

70% 800 60%

600 50% ratio

US$ US$ million 40% 400 30%

20% 200 10%

0 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Visionox 11.6 26.1 26.1 34.8 43.79 124.7 136.3 136.3 32 60 92 161.25 191.65 79.15 125.4 99.2 165.2 Visionox 26.7% 37.5% 39.1% 50.0% 43.5% 70.9% 40.6% 36.5% 11.9% 12.5% 22.1% 26.1% 26.7% 11.3% 17.1% 15.8% 16.6% Truly 0 0 0 0 17.4 0 0 0 0 0 0 0 0 0 0 0 0 Truly 0.0% 0.0% 0.0% 0.0% 17.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Tianma 14.5 17.4 5.8 5.8 5.51 0 0 0 2 36 73.2 98 94.4 50.4 5.6 84 123.2 Tianma 33.3% 25.0% 8.7% 8.3% 5.5% 0.0% 0.0% 0.0% 0.7% 7.5% 17.6% 15.8% 13.1% 7.2% 0.8% 13.3% 12.4% EverDisplay 17.4 26.1 34.8 29 26.39 34.8 34.8 39.15 40 60 92 120 80 28 60 66 58 EverDisplay 40.0% 37.5% 52.2% 41.7% 26.2% 19.8% 10.4% 10.5% 14.9% 12.5% 22.1% 19.4% 11.1% 4.0% 8.2% 10.5% 5.8% CSOT 0 0 0 0 0 0 0 0 0 0 0 0 18 43.12 72.8 93.52 168 CSOT 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.5% 6.1% 9.9% 14.8% 16.9% BOE 0 0 0 0 7.5 16.5 165 198 195.3 324.3 159.1 239.41 335.03 500.52 469.25 287.12 479.8 BOE 0.0% 0.0% 0.0% 0.0% 7.5% 9.4% 49.1% 53.0% 72.5% 67.5% 38.2% 38.7% 46.6% 71.4% 64.0% 45.6% 48.3%