After breaking through 20 billion, MTC took another leap

In 2021, the COVID-19 epidemic continues to be disruptive, and the economic situation is still complex and severe.

In this context, MTC continued to consolidate its research and development capabilities, industrial chain integration capabilities and intelligent manufacturing strength, and maintained steady revenue growth.

According to the report, in 2021, its operating income was 22.538 billion yuan, an increase of 11.65% year-on-year, and the compound growth rate in the past five years was 24.69%.

It is worth mentioning that this is also another leap after the revenue exceeded the 20 billion mark for the first time in 2020.

01

Led business into the second growth curve

In recent years, MTC co., Ltd. adheres to the core business of smart display, and through horizontal enrichment of product categories and vertical layout of the industrial chain, it has continuously excavated and expanded to the industry, and has gradually developed into a comprehensive manufacturing enterprise with three major business sectors of smart display, smart home networking and LED whole industry chain.

In terms of LED industry chain business, MTC entered the LED field in 2011, starting from the packaging to expand upstream and downstream, gradually mastering the core technology of each link of the LED industry chain, and providing customers with LED components and application products with high quality-price ratio.

After more than ten years of exploration, MTC has now realized the in-depth layout of the LED industry chain of "upstream chips, midstream packaging, and downstream applications", occupying a major market share in the fields of LED general lighting, traditional LED backlighting, and display, and continuously increasing the proportion of high-end products such as high-end lighting, Mini LED backlight, and Mini LED display.

According to the financial report, in 2021, the LED whole industry chain business of MTC achieved revenue of 4.572 billion yuan, an increase of 24.17% year-on-year, becoming its second growth curve and helping it upgrade to "smart display".

02

Net profit of LED chip business increased by 353.59%

For the led upstream, middle and downstream industry chain business, MTC has set up subsidiaries to lead the operation.

Among them, the LED chip business is dominated by MTC Semiconductor, and the compound semiconductor optoelectronic device products business is fully laid out. In 2021, it achieved a net profit of 304 million yuan, an increase of 353.59% year-on-year.

In the first half of 2021, MTC Semiconductor's gallium nitride chip production capacity continued to climb, and the production capacity in the second half of the year increased steadily, and the current monthly production capacity can reach 650,000 pieces of 4-inch pieces; gallium nitride chips have occupied a major market share in LED general lighting, traditional LED backlighting, and display fields, and gradually cover high-value-added products such as high-efficiency lighting and Mini LED backlight.

In the second half of 2021, gallium arsenide chips will achieve mass production and production capacity will gradually climb, and the current monthly production capacity can reach 50,000 pieces of 4-inch pieces, while expanding high-end products such as Mini LED displays and plant lighting.

In 2022, MTC Semiconductor plans to add 52-cavity MOCVD and supporting production equipment for the Gallium Nitride Mini LED chip expansion project, and it is expected that the total monthly production capacity of gallium nitride chips will reach 1.1 million 4-inch pieces after the production project is put into production.

03

LED packaging business net profit increased by 94.27%

LED packaging is dominated by MTC light element, and the products cover three core application areas of LED backlighting, lighting and display. Achieved a net profit of 208 million yuan in 2021, an increase of 94.27% year-on-year

Among them, in the field of LED backlight, MTC Optical Element focuses on the development and continuous optimization of Mini LED backlight technology solutions, with a high process yield level and stable production process, it has been certified by high-end brand customers in Japan and South Korea and achieved large-scale supply.

Up to now, it has more than 50 LED component production lines, of which 15 are dedicated to Mini LED backlighting, providing capacity guarantee for Mini POB, Mini COB and NCSP three mainstream technology solutions, and has become the backbone of Mini LED backlight industrialization.

In the field of LED lighting, on the one hand, to consolidate general lighting, with the gradual release of production capacity, the production scale of MTC optical elements has been greatly improved, and while in-depth cooperation with large customers, the market share of small and medium-sized customers has been increased through dealers. In 2021, its general lighting will become the main source of revenue for the packaging sector.

On the other hand, we have expanded the emerging lighting business, and developed high value-added products such as plant lighting, automotive lighting and health lighting by mastering core technologies such as full spectrum, high light efficiency and high-quality health lighting, and improved the overall profitability of the packaging sector.

In the field of LED display, MTC Light Element released a variety of Mini, small pitch and outdoor display products, is the first batch of mini flip series of single lamp products and mass production of enterprises, while the Mini LED and IMD packaging technology combined to achieve P0.6 ~ P0.9 micro-pitch display device development and mass production, orderly expansion of market share in the field of display, to achieve industry-leading goals.

04

Led application business upgraded to "smart display"

Based on the development and application of new Mini/Micro LED display technology by upstream chips and midstream packages, the LED application sector of MTC co., Ltd. not only innovates in the application fields of finished lighting fixtures and backlights, but also further expands the display market.

Mini RGB display is one of the most promising next-generation display technologies of the future.

Relying on the advantages of the layout of the whole LED industry chain, MTC co., Ltd. launched Mini RGB display products below 100μm, adopted the COB packaging technology of the future display technology development trend, and gave full play to the synergy effect of various business sectors, relying on refined management, constructing an integrated and collaborative supply chain system.

Next, MTC will seize the development opportunities of Mini RGB display, develop integrated package LED display technology, complete the layout of COB LED display series products, focus on high-end products, continue to deepen the deep integration of vertical industry chain, and promote the upgrade from core plates to "smart displays".

05

Consolidate the sustainable development of the LED industry chain

If 2021 is a difficult year for LED companies, then 2022 is undoubtedly a more difficult year.

Since entering 2022, the domestic epidemic has blossomed everywhere, and LED companies are generally facing challenges such as limited employee attendance, road transport obstruction, and impact on the industrial chain. In the face of many challenges, MTC has formulated a response plan around the LED industry chain business.

First of all, focus on mid-to-high-end customers, and continue to expand the market share of Mini LED backlight. It is understood that on the basis of 2500 LED packaging production lines, MTC will continue to add 1000 packaging lines in 2021, with sufficient packaging POB and NCSP production capacity, coupled with the orderly expansion of the Mini COB production line, and complete the multi-line mass production of Mini LED backlight.

Secondly, deepen the strategic layout of the whole LED industry chain "from core to screen", and continue to exert efforts on the new Mini/Micro LED display. In order to expand the share of Mini/Micro LED new display field, in 2022, MTC will add 52 cavity gallium nitride Mini LED production line, and 300-500 RGB small-pitch LED display module production lines using COB packaging technology, and implement the strategic layout of the led industry chain "from core to screen".

Finally, continue to expand plant lighting, automotive LED, ultraviolet LED, infrared LED and other subdivisions. In the future, the whole LED industry chain will continue to optimize the product structure, focus on the three core application areas of backlight, lighting and display, achieve the goal of Mini/Micro LED from chip to package to terminal finished product shipments in the forefront of the world, and continue to tap the market potential of LEDs in plant lighting, automotive lighting, new displays, health lighting, medical treatment, sterilization and purification and other sub-application areas, and further improve market share.