BOE: LCD Will Remain The Mainstream Display Application Technology in The Medium To Long Term; Flexible OLED Penetrates Into Medium-Sized Fields

On July 8, BOE successfully held the "Screen of Everything Connected, Gathering Wisdom for Win-Win" 2025 BOE Investor Day themed event in Shanghai. During this event, BOE provided multi-dimensional interpretations of industry prospects, corporate strategies, business highlights, and more, demonstrating firm confidence in its development outlook.

Industry Drivers: The display industry on the supply side is entering the stock era, with the market structure undergoing reshaping. Competition has gradually shifted from "scale and market share" in the past to being driven by high value. By practicing "production on demand," the industry continues to move towards high-quality development. LCD will remain the mainstream application technology in the display industry in the medium to long term. Large-size displays are unstoppable, and the continuous introduction of new products with high resolution and high refresh rates brings vigorous market vitality to LCD. The flexible OLED market size is growing rapidly, with technological innovations accelerating penetration into medium-sized fields such as IT and automotive applications, driving the booming development of the OLED industry. Against this backdrop, BOE has achieved leapfrog breakthroughs in the high-end display field by laying out leading 6th-generation new LCD production lines and achieving mass production, as well as laying out the first 8.6th-generation AMOLED production line in China.

Self-Development: Under the guidance of the "Screen of Everything Connected" strategy, BOE has proposed the corporate upgrading development "Nth Curve" theory. Leveraging its three major advantages-display technology, glass substrate processing capabilities, and large-scale integrated intelligent manufacturing capabilities-it is creating new business growth poles. It has laid out perovskite photovoltaic devices, glass-based packaging, and other fields, continuously nurturing "future businesses" to support enterprise growth. Among them, the glass-based packaging business has already laid out a pilot line, established a glass-based advanced packaging project team, and achieved prototype output. By the end of June this year, equipment relocation has been completed.

Capital Strategy Transformation: BOE's capital strategy focus is shifting from scale expansion to a new stage of creating shareholder value. Currently, the industry structure is stabilizing, and large-scale production line investments are no longer the main theme of the company's development. In this context, BOE will usher in a "dual peak" of capital expenditure and depreciation in 2025, after which it is expected to enter a profitability improvement channel. The enhanced certainty of profitability creates favorable conditions for continuously returning value to shareholders.

Capital Operations: First, through mergers and acquisitions of high-quality industry assets such as the Chengdu and Nanjing production lines of CET Panda, and investments in Rainbow Optoelectronics production lines, to carry out industry integration; second, independently listing innovative businesses to create specialized development platforms-for example, previously acquiring BOE Jingdian (0710.HK) as a vehicle display platform and acquiring Huacan Optoelectronics (300323.SZ) as an MLED industry chain platform; this year, it incubated Energy Technology (874526.NQ) listed on the New Third Board as an energy Internet of Things platform; third, repurchasing minority equity in Wuhan BOE to further enhance control over high-quality production lines and increase net assets attributable to parent. The above capital operation initiatives effectively assist BOE in achieving symbiotic win-win with shareholders.