---
title: "New Stock Preview | EDO: Bearing Huge Losses to Hong Kong, Can It Use AMOLED to Adjust Its Value Coordinates?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/237708305.md"
description: "EDO, after experiencing a cumulative loss of over 7.3 billion yuan over three years, plans to go public in Hong Kong to seek a breakthrough in its financial difficulties. As a global leader in AMOLED semiconductor display panel manufacturing, the company ranks second in the world and first in China in the medium to large-sized panel sector. EDO has collaborated with several well-known brands and possesses strong technological innovation capabilities, having established 18 major categories of AMOLED core technologies and obtained 1,243 patents"
datetime: "2025-04-27T11:52:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/237708305.md)
  - [en](https://longbridge.com/en/news/237708305.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/237708305.md)
generator: "portal-rs"
---

# New Stock Preview | EDO: Bearing Huge Losses to Hong Kong, Can It Use AMOLED to Adjust Its Value Coordinates?

With a cumulative loss of over 7.3 billion yuan (RMB, the same below) over three years, Shanghai EDO Co., Ltd. (hereinafter referred to as "EDO") has embarked on its journey to list in Hong Kong.

According to a disclosure by the Hong Kong Stock Exchange on April 23, EDO (688538.SH) has submitted its application to the main board of the Hong Kong Stock Exchange, with China International Capital Corporation as the sole sponsor. This new journey in the capital market not only carries the hope of the company overcoming its financial difficulties but also concerns its future direction in the global AMOLED industry landscape.

## China's Leading Manufacturer of Medium and Large-Sized AMOLED Panels

The prospectus shows that EDO is a global leader in the manufacturing of AMOLED semiconductor display panels, focusing on the research and production of AMOLED semiconductor display panels that provide extraordinary true colors, excellent visual experiences, and low power consumption.

According to a report by ZhiShi Consulting, based on cumulative sales from 2022 to 2024, EDO ranks second among global medium and large-sized manufacturers and first in China. In the field of flat panel/laptop display panels, the company has ranked first in sales in the Chinese market for three consecutive years, with a market share of 73.3%; in the automotive display sector, it ranks fourth globally and second in China by cumulative sales. Its products cover multiple fields, and it has established partnerships with well-known consumer electronics brands such as Honor and Transsion, as well as two of China's top five automotive manufacturers, and has been adopted by a leading aircraft manufacturer in Europe.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250427/1745754347679189.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

EDO's success is attributed to its diversified and differentiated product matrix, as well as its strong technological innovation capabilities. The company has created a product matrix covering multiple fields through cross-industry technologies empowered by AI and is actively expanding into emerging application areas. The company has production capabilities for rigid, flexible, and hybrid display panels, ranking first in China and second globally in rigid panel production capacity by 2024; in flexible products, it has also achieved mass production of related technological products through research and innovation.

As of December 31, 2024, EDO has established 18 categories of core AMOLED technologies and has accumulated 1,243 authorized patents. Technologies such as Hybrid design technology and OLED stacked device design technology have effectively enhanced product performance, helping the company launch competitive products like the 14-inch 2.8K stacked OLED Hybrid blade display panel, thereby enhancing brand influence. In the rapidly evolving semiconductor display industry, this technological innovation capability is the core moat for EDO's market position.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250427/1745754366389265.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## **Cumulative Loss Exceeding 7.3 Billion in Three Years**

However, EDO is facing challenges in its finances. From 2022 to 2024, the company's revenues are approximately 4.191 billion yuan, 3.038 billion yuan, and 4.958 billion yuan, while the total losses and comprehensive losses during the same period are approximately 1.602 billion yuan, 3.244 billion yuan, and 2.518 billion yuan, resulting in a cumulative loss exceeding 7.3 billion yuan over three years.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250427/1745754417903148.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

A deep analysis of the reasons for the losses reveals multiple factors. In terms of cost structure, the technology and capital-intensive characteristics of the AMOLED display panel industry result in high costs for the company in production equipment, raw material procurement, and R&D investment. From 2022 to 2024, the company's sales costs are 5.208 billion yuan, 5.421 billion yuan, and 6.490 billion yuan, consistently exceeding revenues during the same period; meanwhile, the company's gross loss rates are 24.3%, 78.4%, and 30.9%, respectively.

This reflects that, despite the company's certain position in the industry, competition remains fierce. To capture market share, the company may lower product pricing, leading to sales prices that cannot fully cover costs. At the same time, other competitors in the industry are continuously increasing their R&D and market expansion efforts. To maintain competitiveness, EDO needs to invest significant resources in product sales and R&D, further compressing profit margins.

It is noteworthy that the continuous iteration of technology requires the company to continuously invest funds for equipment updates and technological upgrades, further increasing the cost burden. For example, in its production line construction, the layout and upgrade from the 4.5 generation to the 6 generation AMOLED production lines involve substantial capital investments at each step, and these costs require a long period to gradually digest.

In terms of financial leverage, to meet the funding needs for business expansion and technological R&D, the company heavily relies on debt financing. From 2022 to 2024, the scale of interest-bearing bank loans and other borrowings has been continuously increasing, reaching 13.075 billion yuan, 14.2 billion yuan, and 17.908 billion yuan, respectively. This results in high financial expenses for the company, with financial costs of 310 million yuan, 524 million yuan, and 647 million yuan during the same period.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250427/1745754459580084.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

From the perspective of the debt-to-asset ratio, the prospectus shows that from 2022 to 2024, EDO's debt-to-asset ratios are 45%, 51%, and 60%, showing a year-on-year upward trend. This means that as the scale of debt increases, the company's debt burden continues to grow, and financial risks correspondingly increase. This high-debt financial structure may bring greater operational pressure to the company during industry downturn cycles ![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250427/1745754482740064.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## **The AMOLED Panel Industry is Expected to Grow Steadily**

It is worth noting that EDO still shows some positive financial trends. The company's asset scale remains relatively stable, and the compound annual growth rate of AMOLED semiconductor display panel sales from 2022 to 2024 is expected to reach 30.4%. In the future, the company is expected to reduce unit costs and improve product gross margins through economies of scale. If it can optimize its cost structure, reasonably control expenses, and enhance operational efficiency, profitability is likely to improve. For example, with the increase in production line capacity utilization and cost optimization in the raw material procurement process, the production cost per unit is expected to further decrease, thereby enhancing profit margins.

In addition, the AMOLED semiconductor display panel industry has a promising development outlook, which also provides EDO with opportunities to improve its financial situation. According to a report by ZhiShi Consulting, the global broad AMOLED semiconductor display panel market has shown significant growth in terms of sales revenue. From 2020 to 2024, the market size is expected to grow from 259.9 billion yuan to 388 billion yuan, with an average annual compound growth rate of 10.5%. Among them, the RGB-OLED market size is expected to grow from 227.7 billion yuan to 350.3 billion yuan, with an average annual compound growth rate of 11.4%, and the penetration rate is expected to increase from 87.6% to 90.3%; the non-RGB OLED market size is expected to grow from 32.2 billion yuan to 37.7 billion yuan, with an average annual compound growth rate of 4.0%.

It is expected that from 2024 to 2030, the global broad AMOLED semiconductor display panel market will continue to expand at an average annual compound growth rate of 9.6%, with the market size expected to reach 673.2 billion yuan by 2030. Among them, the RGB-OLED market size is expected to grow to 627.9 billion yuan, with an average annual compound growth rate of 10.2%, and the penetration rate is expected to further increase to 93.3%; the non-RGB OLED market size is expected to reach 45.3 billion yuan, with an average annual compound growth rate of 3.1%.

AMOLED semiconductor display panels based on RGB-OLED color display technology are mainly applied in terminal products of 27 inches and below, such as tablets/laptops, smartphones, and smart wearable devices, occupying a dominant market position. The mid-to-large size AMOLED semiconductor display panel segment, where EDO is located, benefits from the overall growth trend of the industry. With technological advancements and cost reductions, mid-to-large size AMOLED panels are continuously expanding their applications in more fields such as automotive displays, presenting a broad market outlook.

![image.gif](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250427/1745754549627678.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Overall, EDO has achieved significant results in the AMOLED field, possessing a certain competitive edge in the market due to its leading industry position and technological innovation capabilities. Although it currently faces pressure from losses, with the development of the industry and the advancement of its own strategies, such as optimizing product structure, improving capacity utilization, and strengthening cost control, the company is expected to achieve profit growth and gain greater development space in the global AMOLED market. For investors, EDO's development potential coexists with risks, and whether it can leverage the support of the capital market to break through its financial difficulties and transform its technological advantages into commercial value is worth continuous attention

### Related Stocks

- [688538.CN](https://longbridge.com/en/quote/688538.CN.md)
- [03908.HK](https://longbridge.com/en/quote/03908.HK.md)
- [CP00062.US](https://longbridge.com/en/quote/CP00062.US.md)

## Related News & Research

- [Xtract One CEO Evans flags “vanity metrics” in weapons detection, urges focus on capture rates](https://longbridge.com/en/news/296946614.md)
- [Apple Releases New Polishing Cloth](https://longbridge.com/en/news/296925479.md)
- [02:33 ETPonsse introduces new thinning-optimised models for the Scorpion harvester and Wisent forwarder](https://longbridge.com/en/news/296996138.md)
- [18:17 ET/C O R R E C T I O N -- Annie/](https://longbridge.com/en/news/296959578.md)
- [03:00 ETCorinex stellt Grid Intelligence Node vor: präzise Transparenz über den tatsächlichen Netzzustand im Niederspannungsnetz](https://longbridge.com/en/news/296747686.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**