Industry Update: Major Display Manufacturer Suffers a Massive Loss of NT$12 Billion in 2024!

Due to lower initial yields in mass production of its new eco-friendly display paper and increased expenses from multiple new projects, HannStar Display reported a significant net loss of NT$53.25 billion (approximately RMB 11.77 billion) for 2024.

HannStar stated that with improving yields and a focus on key applications, its gross margin is expected to turn positive this year, leading to improved operational performance.

In Q4 2024, HannStar’s consolidated revenue reached NT$28.64 billion (RMB 6.33 billion), up 19.98% from the previous quarter. However, it recorded an operating loss of NT$14.44 billion (RMB 3.19 billion) and a net loss of NT$15.38 billion (RMB 3.40 billion). The company also recognized an asset impairment loss of NT$1.88 billion (RMB 0.42 billion) due to underutilized photomasks, slightly increasing its quarterly loss.

For the full year 2024, HannStar reported total revenue of NT$99.64 billion (RMB 22.03 billion), down 19.34% YoY, with a gross loss margin of 36.11% and an operating loss of NT$55.58 billion (RMB 12.29 billion).

HannStar pioneered the mass production of its eco-friendly display paper last year, a technology that offers outdoor readability, low power consumption, and wide temperature adaptability. This display remains clear even under strong sunlight and extreme temperatures, providing eye protection and extended battery life for various applications. The company has developed desktop monitors, laptops, luggage tags, e-labels, e-books, industrial control screens, bus stop displays, and bicycle displays based on customer needs.

However, low initial production yields and high development costs for photomasks and new applications significantly impacted its profitability. With production yields now improving, HannStar plans to focus on more mature, scalable product lines, aiming for a positive gross margin in 2025.

Regarding the LCD panel market, demand appears stable. HannStar continues to shift away from consumer products and focus on specialized applications such as automotive and industrial control. The consumer segment’s revenue share is estimated to have dropped below 45% last year. Automotive displays have been a growing segment, accounting for 25% of revenue, with the next growth wave expected in H2 2025 – 2026.

With Japanese panel makers exiting the market, HannStar is expanding into automotive instrument clusters and digital side mirrors. As automotive digitization accelerates, side mirror demand is rising, and armrest screens are increasing to 7 inches with video playback and temperature control functions, presenting a key market opportunity.

For center console displays, the trend toward larger screens and advanced video processing has driven a shift to LTPS panels, intensifying competition and reducing HannStar’s shipments. Industrial control panels remain steady at 25% of revenue, with applications spanning marine, aviation, smart home devices, and rugged tablets/laptops.