Tianma Microelectronics Co Ltd

Tianma Microelectronics released its 2026 interim report, showing a net loss attributable to the parent company of 728 million yuan, swinging from a profit in the same period last year and down by 934 million yuan year on year, a decline of 453.50 percent. Total operating revenue was 16.691 billion yuan, down 4.49 percent year on year. Net cash inflow from operating activities was 2.631 billion yuan, down 33.69 percent year on year. The company's latest asset-liability ratio was 61.12 percent, gross margin was 15.60 percent, return on equity was negative 2.76 percent, and diluted earnings per share was negative 0.30 yuan.

Tianma Microelectronics issued a performance forecast, expecting a net loss attributable to shareholders of the listed company of 720 million to 750 million yuan for the first half of 2026, compared with a profit in the same period last year, turning from profit to loss year-on-year.

Tianma and Visionox have issued earnings forecasts, both warning of losses for the first half. Tianma's net profit attributable to shareholders swung from profit to loss, with an estimated net loss of 720 million to 750 million yuan. Visionox's net profit attributable to shareholders is expected to fall by 32 to 85.5 percent year-on-year, with its net loss widening to 1.4 billion to 1.97 billion yuan. Rapid and sustained price increases for electronic components such as memory have put phased pressure on consumer electronics end-demand and costs. Slumping demand and falling prices for flexible OLED smartphone screens, along with intensifying industry competition, have eroded the profitability of the two companies, for which smartphone screens are a key revenue source. IDC data shows that global smartphone shipments fell 6.7 percent year-on-year to 277.5 million units in the second quarter of 2026, marking a second consecutive quarter of year-on-year decline. Memory costs rose nearly 300 percent year-on-year, and Xiaomi, OPPO, and vivo all posted double-digit shipment declines in the quarter. These manufacturers are the main customers for Chinese panel makers' OLED smartphone panels. CINNO Research statistics show that the average price of flexible OLED smartphone panels fell 17 percent year-on-year in the first half of this year. Analyst Zhou Hua pointed out that Tianma's OLED business profitability has dropped sharply. While its automotive and professional display businesses saw year-on-year revenue and profit growth, this was insufficient to cover the losses and new depreciation. Visionox's revenue is highly dependent on its smartphone OLED panel business, and its product pricing power is relatively weak, causing it to suffer severe damage in the price war. This, combined with high debt financing costs, new expenses from production lines under construction, and depreciation, has led to a widening loss. Facing these challenges, Tianma is strengthening its automotive business, with automotive and professional display businesses together accounting for over 55 percent of total revenue in the first half, and is promoting diversified applications of flexible OLED in wearables, automotive, IT, and other fields. Visionox is stepping up its layout in high-value-added mid-size OLED panel business for IT and automotive applications, and is building an 8.6-generation OLED panel production line in Hefei.