(Yicai Global) March 11 -- Leading Chinese panel makers TCL Technology Group and BOE Technology Group saw revenue jump last year, but both firms are turning to higher-value products amid a drop in prices for standard liquid crystal displays.

TCL’s net profit was 1.3 times higher to CNY10 billion (USD1.58 billion) in the year ended Dec. 31 and total revenue was CNY163.5 billion (USD25.8 billion), up 113 percent on 2020, according to its earnings report released yesterday.

The semiconductor display industry extended its longest-ever boom cycle in the first half of last year, allowing BOE to report four times higher annual net profit of CNY25.8 billion on revenue of CNY219.4 billion, up 62 percent, according to the financial data it published on March 9.

But LCD panel prices have corrected since the third quarter of last year, and according to a report by industry researcher Sigmaintell, prices are still falling. In the 43 to 75 inch segment, the cost per panel fell by USD2 to USD6 this month from February. Affected by the Russia-Ukraine conflict, the drop in global demand for televisions is expected to deepen, putting further pressure on prices.

As it is increasingly difficult to make a profit from traditional LCD panels, TCL and BOE are expanding into higher value-added areas such as Mini LED and organic light-emitting diode screens. TCL released a new Mini LED TV on March 9, in sizes of 65, 75, 85 and 98 inches, all priced at more than CNY10,000 (USD1,579) each.

BOE is reportedly in talks with Honor to make a special OLED panel for smartphones that will be launched later this year. The technology could potentially reduce smartphone power consumption by about 30 percent.

Neither company released an earnings forecast for this quarter.

At today's market close, TCL [SHE: 000100] had inched up 0.2 percent to CNY5.11 (80 US cents), while BOE [SHE: 000725] was over 1.1 percent higher at CNY4.44.

Editor: Tom Litting