Core Insights - BOE Technology Group's Chairman Chen Yanshun shared the company's development strategy and innovation philosophy at the 2025 Global Innovation Partner Conference [1] - The company has invested nearly 40 billion yuan in R&D and over 370 billion yuan in procurement over the past three years, with plans to invest 50 billion yuan in R&D and 50 billion yuan in procurement over the next three years [1] - The "N Curve" theory proposed by BOE aims to drive continuous innovation and identify new growth points, evolving from a focus on "human power" to "human power + AI computing power" [1] Investment and Development Plans - Over the past three years, BOE has engaged in over 250 technology source projects and plans to allocate 0.5% of revenue towards AI research [1] - The company is also forming a robotics team to enhance its technological capabilities [1] Strategic Framework - Under the guidance of the "N Curve" theory, BOE has established the "Screen IoT" strategic development system, centered around the "1 + 4 + N + ecosystem" business structure [2] - The framework includes three foundational supports, three sources of innovation, and three guiding goals, creating a scientific development system for sustainable growth [2] - The integration of the "N Curve," "Screen IoT," and "1 + 4 + N + ecosystem" is expected to lead BOE's long-term sustainable development [2]

Core Viewpoint - BOE (京东方) is leveraging AI technology to drive innovation and transformation across its operations, aiming to establish itself as a leader in the "screen and IoT" strategy while enhancing high-quality development in various industries [1][2][4]. Group 1: AI Development and Investment - BOE plans to allocate 0.5% of its revenue annually towards AI research and development, with a total investment of 500 billion yuan over the next three years [2][3]. - The company has established a robotics team focused on developing and manufacturing robots for factory scenarios [2]. Group 2: AI Factory and Applications - The newly launched AI factory by BOE integrates advanced AI technologies across six key operational areas, enhancing overall production efficiency [3]. - BOE's "Blue Whale Display Model" is designed for the display industry, featuring high precision and strong reasoning capabilities, providing intelligent solutions across manufacturing, product services, and enterprise operations [3]. Group 3: "N Curve" Theory and Strategic Focus - The "N Curve" theory has been redefined to emphasize the combination of human intelligence and AI capabilities as the driving force for new growth opportunities [4][5]. - BOE is focusing on four innovative directions: glass-based products, perovskite photovoltaic devices, large-scale integrated intelligent manufacturing, and supply chain enhancement [7]. Group 4: Business Performance and Innovation - BOE has achieved significant milestones in its traditional display business, including the mass production of the 6th generation LTPS/LTPO LCD production line and advancements in OLED and other technologies [6]. - The company’s innovative business segment has consistently surpassed 50 billion yuan in revenue, indicating robust growth [6].

Core Viewpoint - BOE (京东方) is leveraging AI technology to transform its operations and drive high-quality development across various industries, establishing itself as a leader in the "screen and IoT" strategy [1][4]. Group 1: AI Development and Investment - BOE plans to allocate 0.5% of its revenue annually towards AI research and development, with a total investment of 500 billion yuan over the next three years [4][6]. - The company has established a robotics team focused on developing and manufacturing robots for factory settings [4]. Group 2: AI Factory and Applications - The newly launched AI factory utilizes advanced AI to enhance production planning, material supply, manufacturing, quality management, energy optimization, and environmental safety [6]. - BOE's AI applications include an AI defect management system and an AI yield management system, which have significantly improved efficiency and accuracy in production [9][10]. Group 3: Innovation and Growth Strategy - The "N Curve" theory proposed by BOE emphasizes the integration of AI technology to drive deep transformations across the entire industry chain [7][10]. - The company is focusing on four innovative directions: glass-based innovations, perovskite photovoltaic devices, large-scale integrated intelligent manufacturing, and supply chain upgrades [11]. Group 4: Market Position and Future Outlook - BOE's innovative business has achieved a revenue scale exceeding 50 billion yuan, maintaining a rapid growth momentum [10]. - The company aims to respond to new technologies and consumer trends while actively promoting its "screen and IoT" core strategy to enhance technological innovation and application development [11].

Core Insights - BOE plans to invest 50 billion yuan in R&D and 500 billion yuan in procurement over the next three years to support technological breakthroughs and industry upgrades [1] - The company will allocate 0.5% of its revenue for AI research to enhance AI's role in manufacturing, products, and operations [1] - BOE has established a robotics team focused on manufacturing and R&D of robots for factory scenarios [1] Financial Performance - In the first half of 2025, BOE reported revenue of 101.278 billion yuan, an increase of 8.45% year-on-year [1] - The net profit attributable to shareholders was 3.247 billion yuan, reflecting a year-on-year growth of 42.15% [1] Strategic Initiatives - BOE introduced the concept of the "N Curve," which serves as a guideline for companies to navigate cycles and achieve ecological development through self-evolution based on core advantages and market opportunities [1] - The company officially launched its AI factory, with the first batch of AI factories already operational [1] - BOE has previously announced its sustainable development brand "ONE" [1]

Group 1 - The core theme of the IPC Conference 2025 is "Screen IoT AI Renewal," where BOE Technology Group emphasizes the significance of the "N Curve" theory for enterprise strategic elevation [2] - The "N Curve" theory is described as a universal rule guiding enterprises to navigate cycles and achieve iterative growth by aligning core advantages with market opportunities [2] - BOE's sustainable development strategy includes six strategic pillars: open innovation, environmental sustainability, win-win ecology, people-oriented approach, ethical management, and future value creation [3] Group 2 - BOE officially launched its AI factory, which leverages next-generation artificial intelligence to enhance production efficiency across six application areas [3] - The company showcased a series of Blue Whale display models aimed at industry applications during the conference [3] - BOE collaborated with well-known brands such as Skyworth, Lenovo, and Red Magic to display various smart terminal products, highlighting the innovation ecosystem in the industry [3]

Business Performance - The company achieved a steady growth in overall performance, with LCD business maintaining the highest global shipment volume in five mainstream application products [1][2] - LCD revenue share increased from 73% in 2024 to 76% in 2025, with IT products being the highest category [2] - OLED shipments exceeded 71 million units in the first half of 2025, marking a 7.5% year-on-year growth [2][31] Financial Highlights - The company reported a significant increase in net profit, with the Hefei G8.5 line and Chongqing G8.5 line net profits growing by 82% and 33% respectively [4] - Operating cash flow remained strong, estimated at approximately 50 to 60 billion RMB annually [12] - The company plans to maintain a cash dividend of no less than 35% of the net profit attributable to the parent company [41][43] Strategic Developments - The company is transitioning from large-scale capacity construction to high-quality operational development, focusing on technology value and efficiency improvement [4] - The "Screen IoT" strategy is being implemented to integrate display technology with IoT innovations, leading to significant revenue growth in related sectors [2] - The company is advancing its glass-based packaging substrate technology, with ongoing collaborations and product testing [23] Market Challenges - The company faces significant challenges in the OLED market due to increased international competition and changes in domestic market demand structures [31][39] - The overall industry growth rate is low, with the OLED market growing only 4% compared to the company's 7.5% growth [31] Future Outlook - The company aims to achieve an OLED shipment target of 170 million units for the year, although this goal is under pressure from market conditions [10][31] - The LCD market is expected to stabilize and potentially transition to a mild upward cycle by 2027, with a projected balance in supply and demand [21][22] R&D and Innovation - The company continues to invest heavily in R&D, with a focus on OLED and other advanced display technologies [4][8] - The development of the 8.6 generation OLED line is on track, with production expected to start in late 2025 [18][20]

Core Viewpoint - The interview with BOE's Chairman Chen Yanshun highlights the company's strategic layout, technological breakthroughs, and future plans in the global display industry, emphasizing the potential of screens in various applications [1][3]. Group 1: Strategic Layout and Core Competencies - BOE's strategy, termed "Screen IoT," focuses on leveraging three core competencies: semiconductor display technology, glass-based processing capabilities, and large-scale integrated intelligent manufacturing [5][6]. - The company aims to expand the functionalities and forms of screens, integrating them into various industries to enhance their value [5][6]. Group 2: Market Trends and Industry Dynamics - The display industry is entering a rebalancing phase, characterized by a shift from competition based on scale and market share to competition based on high profitability, advanced technology, and added value [4][5]. - LCD technology remains the mainstream in the medium to long term, with a notable trend towards larger TV sizes and high-resolution products, while OLED technology is gaining traction in high-end segments [5][6]. Group 3: Innovation and R&D Investment - Innovation is central to BOE's strategy, with approximately 7% of annual revenue allocated to R&D, resulting in over 100,000 patent applications [9][10]. - The company is focused on breakthroughs across the entire value chain, including technology, materials, processes, and applications, with recent advancements in AMQLED quantum dot displays and low-power display technologies [9][10]. Group 4: Capital Operations and Global Expansion - BOE has engaged in significant capital operations, including acquisitions and investments to enhance its industrial layout and resource allocation [7][8]. - The company has established a global business network, with marketing platforms in six regions and production bases in Mexico and Vietnam to improve service efficiency [7][8]. Group 5: Shareholder Value and Future Commitments - BOE is transitioning its capital strategy from scale expansion to creating shareholder value, committing to a comprehensive shareholder return plan that includes cash dividends and share buybacks [9][10]. - The company has already executed share buybacks worth approximately 1 billion yuan and plans to maintain a minimum annual cash dividend of 35% of net profit [9][10].

Core Insights - The article discusses the strategic layout, technological breakthroughs, and future plans of BOE Technology Group, a leading player in the global display industry, as articulated by Chairman Chen Yanshun [1][3][7] - BOE's core competitive advantages are identified as semiconductor display technology, glass-based processing capabilities, and large-scale integrated intelligent manufacturing [1][3] Industry Trends - The display industry is entering a rebalancing phase, characterized by a shift from scale and market share competition to high profitability, high technology, and high added value competition [2] - LCD technology remains the mainstream in the medium to long term, with a notable trend towards larger TV sizes and high-resolution, high-refresh-rate products [3] Company Strategy - BOE's strategy, termed "Screen IoT," aims to integrate more functions and forms into screens, expanding their applications across various industries [3] - The company is focusing on new growth areas such as glass-based innovation and perovskite photovoltaic devices, which are seen as potential new business tracks [4] Capital Operations - BOE has engaged in significant capital operations, including acquisitions to enhance its industrial layout and resource allocation [5] - The company has established a global business network, with marketing platforms in six regions, including the U.S. and Japan, and has set up production bases in Mexico and Vietnam to improve service efficiency [6] Innovation and R&D - Innovation is emphasized as a lifeline for BOE, with approximately 7% of annual revenue allocated to R&D, resulting in over 100,000 patent applications [7] - The company is continuously launching innovative technologies and products, such as the AMQLED quantum dot display, which enhances brightness and color performance [7] Shareholder Value - BOE's capital strategy is shifting from scale expansion to creating shareholder value, with a commitment to annual cash dividends of no less than 35% of net profit and a minimum of 1.5 billion yuan for share buybacks over the next three years [7][8]

Core Viewpoint - BOE Technology Group is shifting its capital strategy focus from scale expansion to shareholder value creation, with a commitment to cash dividends and share buybacks [1][5][6] Group 1: Financial Performance and Shareholder Returns - From 2015 to 2024, BOE has implemented cash dividends for ten consecutive years, totaling nearly 22 billion RMB [1][6] - The company has announced a shareholder return plan that includes a commitment to distribute at least 35% of net profit as cash dividends annually and to allocate no less than 1.5 billion RMB for share buybacks each year [5][7] - As of 2023, BOE has completed share buybacks worth approximately 5.6 billion RMB for A-shares and nearly 1 billion HKD for B-shares [6] Group 2: Industry Position and Technology Outlook - BOE maintains a leading position in the LCD panel market, with a market share exceeding 90% and a focus on large-size, high-resolution products [2][3] - The company predicts that LCD technology will continue to dominate the market for the next decade, despite the emergence of new display technologies [2][3] - BOE is also investing in flexible OLED technology and has established the first 8.6-generation AMOLED production line in China [3] Group 3: Strategic Initiatives and Future Growth - The company is pursuing a "1+4+N" ecosystem strategy, focusing on display technology, glass-based processing, and large-scale intelligent manufacturing capabilities [3][4] - BOE has introduced the "N Curve" theory to explore new business growth areas, including glass-based innovation and perovskite photovoltaic devices [3] - The company is actively engaging in capital operations, including acquisitions and independent listings of subsidiaries to enhance its competitive edge [7]

Core Viewpoint - BOE Technology Group is shifting its capital strategy focus from scale expansion to shareholder value creation, with a new development phase expected to enhance profitability and provide sustainable returns to shareholders [1][2]. Group 1: Business Strategy - The company introduced its "Screen-Internet of Things" strategy and highlighted its "N-th Curve" theory, focusing on display technology, glass substrate processing capabilities, and large-scale integrated intelligent manufacturing to create new business growth areas [2]. - BOE has made significant progress in the perovskite photovoltaic sector, establishing the largest pilot line in the industry, marking an important step towards industrialization [2]. - The flexible OLED market is rapidly growing, with technological innovations penetrating IT and automotive sectors, driving the OLED industry forward [1]. Group 2: Financial Outlook - BOE plans to reach a peak in capital expenditure and depreciation by 2025, after which it is expected to enter a phase of improved profitability [1]. - The company has launched its first comprehensive shareholder return plan, committing to a minimum annual cash dividend of 35% of net profit attributable to shareholders and a total of at least 1.5 billion yuan for share buybacks each year [2]. - The chairman emphasized the company's capability and commitment to providing stable and predictable returns to investors as it enters a new development stage [2].