Small Spacing LED Performance Strong Liad 2018 Revenue Net Income Double Growth

- Mar 28, 2019-

On March 26, Lyad released its annual report for 2018, which realized business income of 7.701 billion yuan, an increase of 19.01% year-on-year; net profit attributable to shareholders of listed companies was 1.265 billion yuan, an increase of 4.53% year-on-year; net profit attributable to shareholders of listed companies was 1.202 billion yuan, an increase of 289% year-on-year.

In July 2018, Futuresource, an authoritative international market research organization in the global display industry, released a market survey report based on industry data for the whole year of 2017. The research shows that LED display market share ranks first in the world, and LED small-distance TV market share ranks first in the world. Pingda has 12% market share in LCD wall patchwork in the American market, ranking fourth after Samsung (32%), NEC (19%) and LG (18%). Among them, Pingda ranks first in two vertical markets in the Americas: the control room market ranks first, accounting for 34% of the market share; and the enterprise customer market ranks first, accounting for 35% of the market share.

The company has independently developed the micro-LED display screen by using the huge transfer technology. While reducing the size of the chip, it effectively increases the light area, which significantly improves the reliability and stability of products with small spacing below p1.0. The original 4-in-1 micro-LED technology improves the visual experience of the display screen and solves the large-scale application problems of micro-LED. The launch of the company's micro-LED display meets the requirements. The demand for high-end large screen applications in the ultra-high definition era has opened up a new era of small spacing LED display applications, laid the technical foundation for the future 8K 100-inch LED display, and provided display solutions for AI, 5G and other dimensions of the market. The company has invested a lot of research and development, and has made a reserve for the future development of LED technology.

Lyad Micro-LED display, as a technical reserve, can be mass produced; based on Lyad's latest research and development of Miro LED technology, LED display products, pixel spacing can reach 0.6 mm. The product adopts the 4-in-1 Micro-LED display technology originally invented by Liad. The size of luminous pixels is reduced to 1.08mm*0.95mm. It is the smallest space display product available in the market. The Lyad Micro-LED technology is different from the traditional solder wire technology. It uses the huge transfer technology to transfer the RGB micro-LED grains smaller than 100 microns to the circuit board, realizes the electrical connection, and carries on the encapsulation, detection, cutting and sub-bin to improve the color consistency of the whole screen. At present, the pick and place process used in the industry can transfer 10,000 to 25,000 LED grains per hour, while the transfer efficiency of our company can reach 50 LED grains per second, i.e. 180,000 LED grains per hour, with high transfer yield and controllable transfer cost. The application of Mirco-LED display technology developed independently by our company can effectively improve the patch reliability and maintenance convenience, while avoiding the difficulties of ordinary micro-LED detection technology and the lack of epitaxy uniformity. Compared with the traditional small-spacing screen, the Lyad micro-LED display has a 25% increase in contrast, a better uniformity of light type, a weakening of glare when viewing, and is easier to display with touch control. The integration of demonstration technology has greatly broadened the application space of products.

Visual AI TV technology is being developed. In recent years, AI technology has been developing and progressing continuously, and has achieved good results in many fields. After comprehensive analysis of the mainstream interaction technology in the industry, Liad has created a new visual AI TV product and redefined the large-scale TV based on home scene application. By creating a highly simulated "Xiaode" image, Liad implants it into the visual AI TV, that is, an ultimate TV product with computational ability, visualization, audibility, user communication, emotional interaction, better understanding of consumer behavior habits, convenient and humane operation. Visual AI TV can use large-scale LED display screen or Lyde's own brand LCD as display screen. At the same time, intelligent TV is not only a TV, but also can connect various application scenarios, screens and users in intelligent family control, education, entertainment, emotional companionship scenarios and intuitive direct interactive connection through visual and sensory interaction. The ideal terminal for people to enjoy intelligent life.

Artificial Intelligence Television System (AITV) consists of four systems: LED display and control system based on 4K, audio and video system, visual human interaction system and cloud data system. In addition to the technical experience accumulated by Lyad for many years in small spacing of LED and commercial display, the system also specially developed a number of AI frontier technologies: semantic dialogue technology, multi-modal human-computer interaction technology, virtual human interaction technology, virtual human interaction technology, emotional computing technology, virtual human application and platform application integration technology. Liad's "Xiaode" brand-new human image, carefully carved human body structure, skin and hair, very real, accurate to point facial drive, exquisite display of human-like charm, sound and mouth shape, speech rhythm overall coordination match, at the same time can achieve happiness, sadness, anger, frustration and other expressions.

The maturity of this technology lays a foundation for the company to enter into the TO C business.

In terms of business, smart display revenue was 5.117 billion yuan, an increase of 33% over the same period last year. Night tour economy was affected by the policy. Revenue fell 11%, gross interest rate dropped 3 percentage points, and returned to the normal industry gross interest rate. The growth rate of the new format slowed down to 13.51% under the influence of the policy, and the gross profit rate was reduced by 3 percentage points due to the low gross profit of individual projects. VR experience growth rate of 40% and gross interest rate of 78%.

In 2018, the number of small-spacing televisions increased by 44.5% year-on-year. Even though the LCD large-screen wall-piecing fell by nearly 9% year-on-year, the smart display panel still achieved 33% growth.

Sales of small-spacing TV channels grew by 78%, and demand in the mid-market rose rapidly. Rental products, creative products, conventional display screens, etc. are growing more and more rapidly on the platform of group resource sharing. LCD large screen wall mostly sold in North America, affected by the market in North America, and Liade Photoelectric Co., Ltd. small distance TV replacement trend is clear, LCD large screen wall performance declined by nearly 9%, the proportion also decreased by 10.78 percentage points.

Overseas markets show that North America's revenue growth is significantly faster than that of other regions. Among them, North America's revenue is 1.661 billion yuan, accounting for 2.158% of revenue; Asia (outside China)'s revenue is 406 million yuan, accounting for 528% of revenue; Europe's revenue is 352 million yuan, accounting for 457% of revenue; South America, Africa and Oceania's revenue is 0.46 billion yuan, 0.118 billion yuan and 0.14 billion yuan, respectively.

Regional Revenue in Lyad (Unit: RMB)

In 2018, the proportion of overseas revenue of Lyadh small-distance television remained at 30%, and the growth rate of overseas revenue reached 43%, which was basically the same as that of domestic revenue. At the same time, Pingda in the United States accounts for nearly 30% of its revenue. Pingda's revenue in the United States has not increased because of the decline in the growth rate of LCD large-screen wall piecing.

Composition of Pingda Business Income in the United States