Although Chinese panel manufacturers have recently gained market share, their profitability has been weak due to the high proportion of low-priced products. In contrast, South Korean companies are improving their business structure by focusing on OLED and high-end panel products.
According to Chosun Biz and Yonhap News Agency, market research firm Omdia has reported that among the world's ten leading panel manufacturers, only Samsung Display (SDC) has achieved an average net profit margin in the double digits over the past five years, hitting 12.19%.
Within Chinese companies, only BOE achieved a positive average net profit margin of 3.94% over the same period, as most others posted losses. EverDisplay Optronics had an average net profit margin of -55.05%, Visionox -45.34%, and TEAMA -0.12%.
Because of weak demand in the large-size OLED market, LG Display (LGD) recorded an average net profit margin of -5.04% over the past five years. However, the company has shown progress in improving profitability through cost reduction and rising OLED demand.
Chinese panel makers performed poorly in the first half of 2025. SDC reported net profit margins of 10.37% and 6.84% in the first and second quarters of 2025, respectively. BOE and TEAMA recorded net profit margins below 4%, while Visionox and EverDisplay Optronics both posted negative double-digit losses.
In 2024, LCD accounted for 31% of BOE's annual revenue from small- and medium-sized panels, and 55.7% for Tianma. Chinese manufacturers producing only OLED panels mainly supply low-cost OLEDs to the domestic market. This contrasts with South Korean panel makers, whose business portfolios are centered on high-end OLED products.
For example, Visionox held a 10.7% share of global small- and medium-sized OLED panel shipments but only a 6.8% share of revenue in 2024. EverDisplay Optronics had a 2.6% shipment share but just 0.7% of revenue. In comparison, SDC's shipment share during the same period was 39.9%, while its revenue share reached 43.3%. South Korean manufacturers maintain a high revenue share relative to shipment share, indicating a higher proportion of premium panel products.
Furthermore, South Korean companies abandoned low-price competition with Chinese firms early on and chose to focus on the high-end market. This is a sustainable strategy that has allowed them to preserve profitability.
Article translated by Emily Kuo and edited by Jack Wu
