Ouch!
We have mentioned that some of China’s stock exchanges encourage and allow discourse between listed companies and shareholders or potential investors. In most cases these are relatively simple exchanges concerning details such as current shareholder counts or clarification on public or private share offerings, but occasionally they get a bit more specific and almost combative. Not all companies actively participate in the program, but to get an idea of the interplay in such Q&A sessions, we pull out two such conversations posted earlier today between an individual and the management of Visionox (002387.CH), an OLED panel producer in China (note: This is a translated exchange so wording might look a bit strange).
Q The company believes that the current stock price does not fully and reasonably reflect the company’s value. First, it will do a good job in production and operation. However, the performance loss in the interim report is serious. Second, it will strengthen communication with the capital market. However, the additional approval documents have not been implemented in the past year. What are measures to boost the current stock price?
A Thank you for your attention. In addition to what you mentioned, there are also significant increases in product revenue and improvement in gross profit at the operating level. There are continuous introductions from customers, the supply of products from Honor, ZTE, moto, OPPO, Fitbit, and the recent support of the Hefei production line. The mass production and delivery of brand customers include the conversion of new technological innovations such as under-screen camera and high refresh rate, the layout of the medium-sized direction, the establishment of the new display technology Micro LED pilot line and the first flow of wearable samples. The piece lights up. Industrial development will not be accomplished overnight, and any measures will not take place in a day. Please pay more attention and support. Also welcome to call the investor hotline 010-58850501 for more exchanges. Thanks!
Q Visionox shipped 14 million pieces in the first half of the year, and the utilization rate of the Gu’an production line was only 50%. Is this because of poor product competitiveness? Still no shortage of orders? Can the product market development space support the production capacity of the production line? What is the significance of increasing investment to expand production capacity?
A Thank you for your attention. According to data from third-party organizations, in the current mainstream application areas, smartphones and smart wearables, OLED penetration rates are steadily increasing; in medium-sized laptops, tablets, and vehicles, applications are gradually expanding. Among them, institutions It is predicted that in the field of laptops and tablets, OLED shipments this year are expected to exceed 10 million units for the first time. The downstream application market of OLED has broad prospects, and the penetration rate in various fields continues to increase. At the same time, the company is actively deploying in the aforementioned directions as it continues to expand new application fields. At present, smart phones and wearable products have been widely delivered to first-line brand customers. Since the beginning of this year, the smart phone field has successively delivered Honor V40 and 50 series of flexible products, exclusively for ZTE's new generation of under-screen cameras, and Red Magic 165Hz ultra-high refresh rate screens. , Moto and other related mobile phone AMOLED screens. In the field of smart wear, we have supplied OPPO watch 2, Mi Band 6, Fitbit Charge 5 and other products. Thanks!
The reason why the ‘investor’ is a bit aggressive in trying to get answers from Visionox management is that the Visionox stock chart looks like this:
Q The company believes that the current stock price does not fully and reasonably reflect the company’s value. First, it will do a good job in production and operation. However, the performance loss in the interim report is serious. Second, it will strengthen communication with the capital market. However, the additional approval documents have not been implemented in the past year. What are measures to boost the current stock price?
A Thank you for your attention. In addition to what you mentioned, there are also significant increases in product revenue and improvement in gross profit at the operating level. There are continuous introductions from customers, the supply of products from Honor, ZTE, moto, OPPO, Fitbit, and the recent support of the Hefei production line. The mass production and delivery of brand customers include the conversion of new technological innovations such as under-screen camera and high refresh rate, the layout of the medium-sized direction, the establishment of the new display technology Micro LED pilot line and the first flow of wearable samples. The piece lights up. Industrial development will not be accomplished overnight, and any measures will not take place in a day. Please pay more attention and support. Also welcome to call the investor hotline 010-58850501 for more exchanges. Thanks!
Q Visionox shipped 14 million pieces in the first half of the year, and the utilization rate of the Gu’an production line was only 50%. Is this because of poor product competitiveness? Still no shortage of orders? Can the product market development space support the production capacity of the production line? What is the significance of increasing investment to expand production capacity?
A Thank you for your attention. According to data from third-party organizations, in the current mainstream application areas, smartphones and smart wearables, OLED penetration rates are steadily increasing; in medium-sized laptops, tablets, and vehicles, applications are gradually expanding. Among them, institutions It is predicted that in the field of laptops and tablets, OLED shipments this year are expected to exceed 10 million units for the first time. The downstream application market of OLED has broad prospects, and the penetration rate in various fields continues to increase. At the same time, the company is actively deploying in the aforementioned directions as it continues to expand new application fields. At present, smart phones and wearable products have been widely delivered to first-line brand customers. Since the beginning of this year, the smart phone field has successively delivered Honor V40 and 50 series of flexible products, exclusively for ZTE's new generation of under-screen cameras, and Red Magic 165Hz ultra-high refresh rate screens. , Moto and other related mobile phone AMOLED screens. In the field of smart wear, we have supplied OPPO watch 2, Mi Band 6, Fitbit Charge 5 and other products. Thanks!
The reason why the ‘investor’ is a bit aggressive in trying to get answers from Visionox management is that the Visionox stock chart looks like this:
While the chart of BOE (200725.CH) China’s leading panel producer looks like this:
While we would love to see such a system instituted for US companies, other than on social media, we expect it would not be easy for the SEC to monitor and likely a nightmare for company legal departments. It is interesting to see how companies respond to a range of questions, with some responses helpful for clarification and others a bit more toward the hostile side. Given the relative politeness of even the tough questions in China, we expect such a system in the US would perhaps be less polite when tough questions are asked, but it would certainly be nice to ask questions on a public forum at any time and receive a timely answer, rather than having to wait for a quarterly call. We can dream can’t we?
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