Page 10 - 2014 CPT Corporate Social Responsibility Report
P. 10

Product Overview

      CPT is a professional display component manufacturer with extensive experience in R&D and mass production of video products. CPT continues to develop
and deploy high-growth products in response to market trends. With its advantages and experiences in small and medium size applications, CPT launched a project
to upgrade its production lines to achieve the goals of technology upgrade, product differentiation, flexible production and diversified product portfolio. CPT puts
in full force to develop small to medium size and touch control products, focusing on three areas of applications: smartphone, tablet PC and automotive display, as
well as integration of embedded touch-control (On-Cell/In-Cell) functions, aiming to create higher product values.

Current state                                                                              Small-size: Full-scale upgrade in product technology and        Company has also expanded into the “Before Market (BM)”,
                                                                                    expand production of FFS products. The 4.5 generation product          successfully entered the market of international brands and became
       From 2010 to 2011, CPT underwent a series of product line                    lines are now launched into the production of 0.3T glass and mass-     a certified supplier for several automotive manufacturers. Growth
upgrade and replacement of non-profit making machines. Along                        production of HD panels. In 2014, these product lines will challenge   continues since CPT achieved the shipment of 2.2 million pieces in
with the increases in production volume of small to medium size                     FHD panels starting from the third quarter. The 6th generation         2011. CPT continues its brilliant performance since the Company
products and optimization of product portfolio, CPT is now focusing                 product lines will be launched into the production of HD, ultra-       achieved a shipment of 7.5 million pieces in 2013; in 2014, the
on the development of small to medium size products using its                       narrow frame and embedded touch-control products. For mobile           Company shipped over 10 million pieces.
advantages in the fully laid-out production lines. At the end of 2012,              phone, the shipment reached 330 million pieces in 2013; in which,
CPT was successfully authorized for the production of the patented                  40% were made for smartphones. Brought about by the high demand        Trend of CPT Automotive Display Panel Shipment Volume
FFS products, which satisfied customers’ demands in wide- angle                     for smartphone products, CPT experienced substantial growth in
view, energy-efficient and high-resolution products. In 2013, CPT                   display panels for smartphones with an annual shipment over 150        2014           10.7                       CPT Automotive Display Panel
shipped over 543 million pieces of small to medium size products,                   million pieces in 2014. CPT launched 5” FFS with integrated On-        2013      7.5                                     Shipment Volume
which hit the record high in CPT history and registered a growth                    Cell touch-control for smartphones in the third quarter of 2013. A     2012  4.1                                             YoY 43%
of 13.1%, compared to the same period of last year. Statistics                      company in China used this product to manufacture and launch the       2011
published by IHS indicated that CPT’s global market share rose                      first smartphone with On-Cell touch-control technology in China. In          2.2
from 16 to 18% in 2012, ranking No. 1 in the global market for                      2013, over one million On-Cell display panels were shipped in the                                     Unit:Mpcs
small to medium size products. Growth of end-application product                    fourth quarter, and several brand smartphone makers have contacted
slowed down in 2014, but the smartphone, tablet PC and automotive                   CPT for possible orders in 2014.                                       Direction of future efforts
display market still saw a growth of 23, 3 and 16%, respectively.
The sizes of application products continue to enlarge; nonetheless,                        Medium-size products: Benefited from the development                   Although growth in the smartphone and tablet PC markets is
with an optimized product and customer portfolio, CPT still shipped                 of tablet PC and CE products, product technology upgrade and           slowing down, the trend for high-specification phones offered at a
455 million pieces, expecting to stay on top of the ranking of global               increasing demand from the emerging market drove up the shipment       moderate price range is stimulating consumer demand. Therefore,
small to medium size display panel manufacturers.                                   of display panels for tablet PC. In 2013, CPT shipped over 36          these two markets are projected to have 22 and 2% growth rates,
                                                                                    million pieces, and continuous growth brought the volume to 47.7       respectively, in 2015. For automotive display, rising electronic
Global market share of small to medium size display panel                           million pieces in 2014. It is expected that CPT will rank No. 3 (same  applications for cars brought about increasing demands for TFT-
                                                                                    as the previous year) in global market share.                          LCD. The market has seen continuous growth for three years and
manufacturers                                                                                                                                              is projected to grow by 19% in 2015. The above applications are
                                                                                           Large-size product: The production lines for large-size         moving towards a trend of larger displays with higher resolution and
(Data source: IHS iSuppli, Q2 2014) Wintek                                          products have been converted for the production of industrial control  such products require higher production capacity. Integrated with
                                                        5%                          and other more profitable application products. With stable quality,   embedded (On-Cell/In-Cell) touch-control products, the demand in
            Wintek     Others   CPT               BOE       Others   CPT            the products are favored by our customers and the demand continues     the overall display panel market is expected to bring in high growth
             3.7%      12.2%   16.0%              5%         8%     18.0%           to grow.                                                               and business opportunities.
           JDI
          4.7%                                 AUO                                         Automotive display products: CPT was successfully certified
                                                                                    by its long-term Japanese customers and the supply is stable. The
   Sharp                       2012   Innolux  6%           2013           Innolux
    5.1%                              14.4%          Sharp                  15%
Samsung                                               6%

          5.7%                       HSD       JDI                  HSD
                  AUO                13.7%     7%                   13%
                 5.8%  Tianma  LGD
                        8.9%   9.8%                 LGD     Tianma
                                                    8%       10%

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