(Yicai) May 6 -- A unit of TCL Technology Group does not plan to spend a reported CNY63 billion (USD8.7 billion) building a production line for eighth-generation organic light-emitting diode panels this year, according to a source at the Chinese display and white goods maker.

TCL China Star Optoelectronic Technology has no such plan, the insider told Yicai today, after online reports that the subsidiary would invest CNY63 billion in 2024 to compete with domestic rival BOE Technology Group in the field.

Both BOE and South Korea's Samsung Electronics have announced the construction of production lines for Gen 8 OLED panels to meet new demand for medium-sized panels. Demand is expected to surge as a result of Apple's plans to debut new iPads with 11-inch and 12.9-inch OLED displays at the US tech giant's spring event tomorrow.

Huizhou-based TCL said on May 3 that it had no investment plans for a Gen 8 OLED production line this year. Demand for mid-sized products, the maturity of the printing supply chain, and the company’s technology have not yet reached the conditions necessary for large-scale mass production, it noted.

In the three months ended March 31, TCL’s net profit surged 144 percent from a year earlier to CNY240 million (USD33.3 million), while revenue gained 1.2 percent to CNY39.9 billion. Profit skyrocketed 748 percent to CNY2.2 billion last year, with income up 5.7 percent at CNY174.4 billion.

TCL [SHE: 000100] closed 3.4 percent higher at CNY4.94 (68 US cents) a share today. The Shenzhen stock market index gained 2 percent.

Editor: Martin Kadiev