What the Numbers Say

1. Industry scale remained concentrated, but growth leadership shifted

Unilumin and Leyard remained the largest companies in the selected peer group, with combined H1 revenue of approximately RMB 6.42 billion. However, both recorded year-on-year revenue declines, and their attributable net profits fell by 73.40% and 59.74%, respectively. By contrast, Absen increased revenue by 8.48%, while AOTO Electronics delivered the fastest growth at 32.83%.

This divergence suggests that the market was not expanding evenly. Growth depended increasingly on product mix, geographic exposure and the ability to win projects in higher-value applications such as virtual production, cinema, sports, immersive spaces, premium rental and digital retail.

2. Absen led the group in profitability

Absen reported the highest attributable net profit in the peer group at RMB 144.65 million and the highest weighted return on equity at 8.45%. Its calculated consolidated gross margin reached 35.15%, while LED display products achieved a reported gross margin of 36.00%. These results indicate strong pricing, product positioning and overseas execution.

However, Absen's core net profit was RMB 80.10 million, below attributable net profit because non-recurring items contributed materially to reported earnings. Its operating cash flow also turned negative at RMB 164.76 million, mainly because payments linked to the previous procurement cycle fell due during the period. Profitability was strong, but working-capital conversion deserves equal attention.

3. Unilumin's cash flow improved while core earnings weakened

Unilumin generated the highest revenue at RMB 3.55 billion. Reported attributable net profit remained positive at RMB 32.23 million, but core net profit was negative RMB 84.67 million. The company identified higher upstream material costs, a lower share of higher-margin overseas business and approximately RMB 129 million of foreign-exchange losses as major pressures.

The positive counterpoint was operating cash flow of RMB 147.11 million, compared with a cash outflow a year earlier. Unilumin also reported H1 new orders of RMB 4.44 billion, up 17.61%, and rapid growth in its MIP product line. This creates a clearer recovery path if order conversion, product mix and currency management improve.

4. Leyard protected gross margin despite lower revenue

Leyard's revenue declined 18.34% to RMB 2.87 billion, but its gross margin improved to 30.05%, up 3.07 percentage points. This means cost and product-mix control partly offset the weaker top line. Attributable net profit was RMB 69.15 million, while core net profit was only RMB 16.20 million, showing that non-recurring gains remained important.

Leyard reported the highest absolute R&D spending in the group at RMB 184.53 million, equal to 6.44% of revenue. Its Micro LED orders based on COB and MiP exceeded RMB 700 million, supporting the view that the company is continuing to invest through a difficult demand cycle rather than relying only on mature SMD products.

5. AOTO Electronics delivered the fastest growth, but cash flow lagged

AOTO Electronics increased revenue by 32.83% and attributable net profit by 64.22%. Its LED video display system revenue rose 60.04%, demonstrating strong project execution in the company's specialist markets. AOTO also recorded a 33.79% calculated gross margin and the highest R&D intensity in the peer group at 8.06% of revenue.

The main weakness was operating cash outflow of RMB 99.86 million, driven by higher supplier payments. The company also reported roughly RMB 12.00 million in foreign-exchange losses. AOTO's results therefore combine strong growth and core profitability with a need for better cash conversion as activity expands.

6. Ledman and LianTronics faced the greatest earnings pressure

Ledman's revenue fell 9.67% to RMB 509.52 million, and the company moved from a small profit to an attributable net loss of RMB 27.13 million. Its overall gross margin was 22.94%. The underlying picture was mixed: LED display revenue increased 2.23%, but LED lighting revenue fell 28.96%. Ledman also reported growth in international display sales and strong overseas demand for COB products, suggesting that higher-end display could gradually reduce the drag from weaker lighting activity.

LianTronics reported the sharpest revenue decline, down 33.03% to RMB 162.04 million, while its attributable net loss widened to RMB 26.30 million. The company attributed the sales decline primarily to fewer orders. Its calculated gross margin was 24.76%, but the net margin fell to negative 16.23%, reflecting the heavy impact of fixed costs, financial expenses and lower operating leverage at a smaller revenue base.

Four Structural Trends Behind the Results

· Premium technology is moving from demonstration to commercial competition. COB and MiP are increasingly central to fine-pitch, cinema, virtual production, control-room and premium commercial-display strategies.

· Foreign-exchange management has become a core operating capability. A stronger RMB against the US dollar can materially reduce reported profit for exporters even when overseas demand remains healthy.

· Cash flow matters as much as revenue growth. Large projects, distributor stocking, supplier payments and collection cycles can create a wide gap between accounting profit and cash generation.

· The industry is shifting from hardware supply to complete solutions. AI-assisted content, intelligent operations, virtual production, cinema, immersive retail and remote service are becoming important sources of differentiation.

What This Means for LED Display Buyers and Partners

For international distributors, system integrators and project owners, the 2026 interim reports underline the importance of evaluating suppliers beyond headline revenue. Financial scale can support manufacturing capacity, global service and R&D, but it does not automatically guarantee stable margins or cash flow. Buyers should also assess product specialization, delivery capability, after-sales coverage, quality control, inventory discipline and the supplier's ability to support projects over their full lifecycle.

The results also suggest that the most resilient opportunities are likely to be found in high-value applications rather than purely price-driven standard products. Fine-pitch control rooms, broadcast studios, virtual production, LED cinema, premium rental, sports venues, immersive commercial spaces and energy-efficient outdoor displays are attracting sustained investment across the industry.

Conclusion

The first half of 2026 was not a uniform recovery for China's LED display industry. Absen led the selected companies in profit and return on equity, AOTO Electronics posted the strongest growth, Unilumin and Leyard retained clear scale advantages, and Ledman and LianTronics remained under earnings pressure. The key competitive battlegrounds are now margin quality, cash conversion, currency risk management, R&D efficiency and the commercialization of next-generation display technologies.

For the second half of the year, investors and industry participants should watch whether order backlogs convert into revenue, whether foreign-exchange losses moderate, whether operating cash flow improves and whether COB, MiP, cinema, virtual production and AI-enabled solutions contribute a larger share of profitable sales.

Methodology and Notes

This comparison covers the consolidated financial results of six China-listed companies for January 1–June 30, 2026. Values are rounded and expressed in Chinese renminbi. Gross margin, net margin and R&D intensity are calculated from disclosed revenue, operating cost, attributable net profit and R&D spending. The companies differ in business mix, geographic exposure and non-display operations, so the figures should not be treated as perfectly like-for-like. Interim reports are generally unaudited. This article is for industry information only and does not constitute investment advice.