(Yicai Global) April 4 -- BOE Technology Group and TCL Technology, two major players in the world's biggest producer of liquid crystal displays, recorded more than 70 percent declines in net profits in 2022 from 2021 amid a 15-month downward cycle of the global LCD industry.

BOE's net profit slumped by 71 percent to less than CNY7.6 billion (USD11 billion) last year while its revenue fell 19 percent to CNY178.4 billion (USD25.9 billion), according to the Beijing-based firm's earnings report published yesterday.

TCL logged a 97 percent plunge in net profit to CNY261 million (USD37.9 million) due to a great decline in its semiconductor display business, the Huizhou-headquartered firm said in its earnings report last week. However, revenue rose by 2 percent to CNY166.6 billion. For the first time, photovoltaics replaced semiconductor displays to become TCL's biggest business segment.

This year marks strategy shifts. In 2023, BOE will ship more 55, 65, and 75-inch LCD panels, according to a research report done by AVC Revo. TCL will accelerate its transition from large-size panels to all sizes, it said in its annual report. Moreover, both companies are expanding their market shares in the more upscale organic light-emitting diode market.

The firms could use recovery as prices of mainstream LCD panels for television sets hit the bottom in September 2022, and prices went even below production costs, according to CINNO Research.

The global capacity utilization rate of thin-film-transistor LCD panels fell to a record low of 62 percent in the third quarter of 2022, per CINNO. Given the weak increase in demand, Li Yaqin, managing director of Sigmaintell, said that LCD and OLED manufacturers should carefully control their utilization rates to avoid excessive production.

But prices are rebounding. As of last month, prices of LCD TV display panels have risen over 10 percent from the lows of September 2022. By the third quarter of this year, the global utilization rate of TFT LCD panels could rise to around 75 percent, and in the Chinese mainland, the rate could exceed 80 percent, per CINNO.

The current demand for TV, PC, and tablet PC displays is stable, Li from Sigmaintell said. The momentum and opportunities for the display industry will come from structural and technological changes, the managing director added.

Shares of BOE [SHE:000725] closed down 1.6 percent at CNY4.43 (US 60 cents).

TCL Technology [SHE: 000100] climbed 1.1 percent to CNY4.56.

Editors: Shi Yi, Emmi Laine, Xiao Yi