On November 22, 2024, investors visited BOE’s Technology Innovation Center showroom and the G8.5 production line at Beijing BOE Display Technology Co., Ltd. After the tour, a discussion took place about the company’s future direction. The following key points were highlighted:
1. What is the company’s future strategic development direction?
Answer: After years of development, BOE has become a leader in the semiconductor display sector. The company has innovatively proposed a “1+4+N+ecosystem” business development framework, with semiconductor display as the core. This framework extends the value chain based on core capabilities and selects four high-potential areas: IoT innovation, sensing, MicroLED (MLED), and smart medical engineering. The focus will be on IoT application scenarios, such as industrial IoT and smart automotive connectivity, to accelerate IoT transformation and development.
Looking to the next 30 years, BOE has introduced the “Nth Curve” theory in its corporate strategy, guided by the “screen-based IoT” development approach. The goal is to create new business growth drivers. The company plans to focus on emerging fields like glass-based packaging and perovskite materials to lead the industry toward intelligent, sustainable development while continuing to promote the “Nth Curve” theory and industry vitality.
2. What is the reason behind the company’s investment in the perovskite solar project and its outlook?
Answer: There are two main reasons for BOE‘s investment in the perovskite photovoltaic industry. First, the renewable energy sector has a promising future, with vast market potential that supports the company’s continued growth. Second, the technical principles, device structures, manufacturing processes, and material properties of perovskite solar cells are highly similar to semiconductor displays. BOE intends to leverage its accumulated optoelectronic conversion technologies and manufacturing expertise, particularly from the OLED display industry, to quickly apply these to perovskite solar photovoltaic R&D, production, and manufacturing. The company also plans to build its competitive edge through its large-scale manufacturing and lean management capabilities.
Furthermore, BOE‘s subsidiary, BOE Energy, has extensive investments in the photovoltaic application sector, which will create synergies with the perovskite solar project and accelerate the growth of its renewable energy business.
In the future, BOE will continue to increase its R&D investments in perovskite photovoltaic technology, optimizing material systems, structural designs, and processes to achieve higher efficiency and longer lifespans, thereby building a solid foundation for mass production.
3. What are the future development trends in display technology?
Answer: BOE believes that various display technologies will coexist, driven by the needs of different application scenarios. In large-size products, LCD will remain the mainstream technology for TV products over the next 5 to 10 years. At the same time, the maturity of Mini LED backlighting will further enhance the performance and lifespan of LCD products. The trend of larger sizes and technological upgrades will continue to drive TV market growth.
For mid-to-small-size displays, flexible AMOLED offers better display effects and more compact product shapes. Its unique advantages in areas such as foldability and flexibility are expected to continue increasing its market share, especially in high-end smartphones, tablets, and notebooks.
4. How does the company view the future pricing of LCD products?
Answer: In recent years, as the expansion of LCD production lines gradually comes to an end and some overseas manufacturers exit, the overall industry concentration has significantly increased, improving the supply structure. In this context, manufacturers have continued to adhere to a “demand-based production” strategy.
According to data and analysis from consulting agencies, the “old-for-new” policy has stimulated domestic brand demand recovery, leading to stable panel prices in October. It is expected that the prices of LCD TV products will remain stable in the fourth quarter.
5. What is the company’s revenue structure for the first three quarters of 2024?
Answer: For the first three quarters of 2024, BOE’s revenue from display devices was distributed as follows: 25% from TV products, 33% from IT products, 24% from OLED products, and 17% from LCD mobile phones and other products.
6. What are the company’s future plans regarding shareholder returns?
Answer: In recent years, BOE has been committed to returning value to shareholders through stock buybacks and cash dividends. From 2015 to 2023, the company implemented cash dividends for 9 consecutive years, with a cumulative amount exceeding $2.74B USD. From 2018 to 2023, the annual dividend ratio consistently exceeded 30% of the net profit attributable to the parent company, allowing investors to share in the company’s growth.
Regarding stock buybacks, between 2020 and 2022, BOE repurchased A-shares totaling more than $6.3B USD and B-shares amounting to approximately $1.4B USD. In 2023, the company canceled about 500 million repurchased shares, reducing its registered capital and further boosting earnings per share. Recently, BOE announced plans to repurchase shares from the public with an aggregate amount not exceeding $1.37B USD.
In the future, the company will comprehensively consider its operational situation and the capital market and introduce relevant shareholder return measures in a timely manner.
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