Chinese display panel manufacturers have steadily increased their global market presence, intensifying competition with South Korean rivals. However, most continue to struggle with weak profitability, with only BOE managing to avoid sustained losses, according to a recent report by market research firm Omdia.
Among the world’s top ten panel makers over the past five years, Samsung Display was the only company to record a double-digit average net profit margin, achieving 12.19 percent. Among Chinese firms, BOE was the sole player with a positive average margin of 3.94 percent, while all other major Chinese manufacturers reported losses. EverDisplay Optronics, based in Shanghai, posted an average net profit margin of negative 55.05 percent, and Visionox recorded negative 45.34 percent. Even South Korean competitor LG Display struggled, reporting an average margin of negative 5.04 percent, weighed down by weakness in the large-format OLED segment.
The first half of this year brought little change. Samsung Display maintained profitability with margins of 10.37 percent and 6.84 percent in the first and second quarters, respectively. In contrast, BOE and Tianma hovered between zero and four percent, while Visionox and EverDisplay continued to post double-digit losses.
Industry analysts attribute the persistent low profitability of Chinese panel makers primarily to their dependence on low-cost, mass-market products, in stark contrast to South Korean manufacturers that have already shifted toward high-end OLED panels. The price war driven by aggressive Chinese competition has further intensified market pressures and eroded margins across the industry.
Experts suggest that Korean companies should resist being drawn into this race to the bottom and instead focus on strategic investments to open new markets and capture high-margin growth opportunities.
Source: Yonhap News Agency (South Korea), October 26, 2025
https://cn.yna.co.kr/view/ACK20251026000100881