(Yicai) April 9 -- Caihong Display Devices’ shares rose by the daily limit after the US International Trade Commission issued a preliminary ruling that the Chinese liquid crystal display panel maker’s core substrate glass formula did not infringe industry leader Corning’s patents, potentially clearing the way for its products to enter the US market.

The stock [SHA: 600707] jumped 10 percent to CNY6.38 (US 90 cents) by the close today, giving the company a market capitalization of about CNY22.9 billion (USD3.4 billion).

Caihong has received the preliminary determination in the ITC case, confirming that its independently developed "616" substrate glass formula does not violate Corning’s patent rights, the company’s legal adviser Wen Ming told Yicai today.

The ruling could have broad implications for China’s display materials industry by supporting the compliance of domestically produced substrate glass entering the US market and highlighting progress by Chinese manufacturers in reducing reliance on foreign suppliers of key materials, a Caihong insider told Yicai.

The dispute began at the end of 2024 when American tech giant Corning filed a complaint with the ITC under Section 337 of the Tariff Act of 1930, accusing nearly 10 display manufacturers, including Caihong, TCL China Star Optoelectronics Technology, and HKC Corporation, of infringing patents related to substrate glass formulas.

Substrate glass is a key raw material in the display industry, with the market long dominated by Corning and Japanese manufacturers AGC and Nippon Electric Glass. Corning alone holds more than 50 percent of the market. In recent years, however, Chinese display makers have stepped up independent research and production of substrate glass, weakening the dominance of overseas suppliers.

In the past, LCD televisions in China sold for more than CNY10,000 (USD1,460), with substrate glass accounting for the largest share of costs. After Caihong achieved mass production of domestically developed substrate glass, pricing by international suppliers gradually declined, and similar LCD TV models can now sell for as little as CNY3,000 (USD440), the insider said.

Founded in 1992 and headquartered in Xianyang in Shaanxi province, Caihong operates four substrate glass factories covering product generations from G5 to G8.5. The company forecast net profit of between CNY330 million and CNY390 million (USD48.3 million to USD57 million) last year, down 69 percent to 73 percent from the previous year due to falling TV panel prices, according to a performance forecast released in January.

Editors: Dou Shicong, Emmi Laine