On January 27, Leyard reported its earnings results for 2021. The report revealed that the optoelectronic company is expected to turn losses into profits by generating 8.8 billion yuan in revenue, up 32% on a year earlier with a net profit of 560 to 720 million attributable to shareholders of the parent.

Embracing the “Devotion to Display Technologies for Steady Growth” operations strategy throughout 2019-2021, Leyard has, despite the global pandemic impact on business expansion, achieved its goals thanks to the efforts of all employees. In 2021, Leyard’s revenue climbed to a record high with major breakthroughs in technologies, products, market strategies and manufacturing process.

YoY Growth of New Orders and Project Value Higher than the 2019 Level

Leyard reported that the new orders received and project bids in 2021 totaled an amount of 11.55 billion yuan, marking a growth rate of 34% YoY. Specifically, the display sector grew by 44%—both for its business in China and international business enjoying rapid growth in 2H21. The company also witnessed an increase in the number of orders received in China and abroad, which exceeded the 2019 level and set a record high.

Unlike other competitors seeing a Q4 decline (YoY basis) in new orders, Leyard received more orders for the foreign and domestic display sectors, the company said.

Additionally, Leyard’s VR business grew rapidly, with the subsidiary NATURAL POINT enjoying a YoY growth rate of 72%. NATURAL POINT, a US-based company providing solutions for optical tracking and motion capture, was acquired by the electronics manufacturer in 2017.

Credit: PAIXIN.COM

Micro LED Technologies and Products Developed as Scheduled

Leyard revealed that its Micro LED business developed smoothly in 2021. Specifically, the company signed new Micro LED deals worth 320 million yuan in total, implying a successful campaign for its Micro LED products globally. Throughout 2021, Leyard turned to develop relevant strategies in hopes of achieving technological and cost breakthroughs.

Regarding the COG technology, Leyard partnered with TCL to develop the world’s first 75-inch AM Micro LED TV sample (P0.6). The two companies also developed the world’s first sample of an AM glass-based transparent display engineered with oxide TG equipment and the 3T1C driving technology.

As for Micro LED production, its joint venture LEADSTAR has expanded and achieved a production capacity of 800KK/month and is aiming to double the monthly capacity to 1600KK this year.

Leyard has also developed and begun mass producing ASICs for Micro LED applications.

Fine-Pitch Products Entered Low-End Market with Strategic Development Achievements

In the recent 2 years, raw material woes caused by the ongoing COVID-19 outbreak have accelerated business closures in the downstream LED sector. Consequently, concentration within the industry has largely increased, enabling Leyard to achieve strategic development outcomes as follows.

(1) Leyard has shifted its business model from producing customized products to making standardized ones.
(2) Its fine-pitch products have entered the low-end market. Currently, it can satisfy different demands in high-, mid- and low-end markets. Additionally, the company’s channel-based sales exceeded the annual goal in 2021 with nearly 2 billion orders being placed.
(3) The company managed to establish production bases in Southern China in December last year, during which its Hunan base achieved a capacity of producing 6000KK units/month.

As global markets gradually recover, Leyard has created a team led by US-based Planar that targets the European and North American markets, while Leyard Hong Kong International centers on markets across Asia, Africa and Latin America.

Net Operating Cash Flow Down by 61% Due to Three Reasons

Layard reported a net operating cash flow of approximately 430 million yuan, down 61% on a year earlier, mainly because of three reasons.

In response to the severe driver IC constraint in 1H21, Leyard, to ensure regular product shipments, signed supply guarantees with its suppliers and pre-paid roughly 110 million yuan in total.

LED chips were largely in shortage as the 1H21 demand soared. Similarly, Leyard signed supply guarantees by prepaying 60 million yuan to its LED chip providers.

Hit by the pandemic, Layard’s US affiliate Planar could not obtain raw materials in time. To ensure regular product supply, the company put more efforts in buying raw materials and bulking up its final product inventory, creating a net operating cash flow of 210 million yuan. (Compiled by LEDinside)