Group 1: Industry Outlook - The LCD industry is shifting towards a "demand-driven production" strategy, leading to a healthier inventory level and a return to normal demand rhythms [1] - The industry is transitioning from competition based on scale and market share to focusing on high-profit applications, high-value products, advanced technologies, and strong brands [1][2] Group 2: Product Pricing Trends - LCD TV panel prices have increased since January 2025 due to strong terminal demand, but are expected to stabilize in May as procurement demand cools [3] - MNT panel prices are experiencing moderate increases, while NB panel prices remain stable [3] Group 3: Flexible AMOLED Business Development - The company has established a competitive edge in the flexible AMOLED sector, covering major smartphone brands and expanding into automotive and IT applications [4] - Continuous enhancement of product and technology capabilities is planned to improve overall competitiveness in the flexible AMOLED market [4] Group 4: Capital Expenditure and Depreciation - The company anticipates a depreciation of approximately RMB 38 billion in 2024, with an increase expected due to the completion of new projects and the maturity of existing production lines [7] - Future capital expenditures will focus on semiconductor display business and strategic projects in IoT innovation, sensing, MLED, and smart medical engineering [9][10] Group 5: Shareholder Return Strategy - The company plans to distribute at least 35% of the annual net profit to shareholders in cash and allocate no less than RMB 1.5 billion for share buybacks annually [8] - A cash dividend of approximately RMB 1.87 billion was approved, representing 35% of the consolidated net profit for the year [8]

Group 1: Industry Overview - The LCD industry is shifting from competition based on scale and market share to a focus on high-profit applications, high-value products, advanced technology, and high-value brands, promoting high-quality development in the industry [1][2] - The average utilization rate of the LCD industry has been recovering since November 2024, maintaining above 80% in Q1 2025, with adjustments made in Q2 based on demand [3] Group 2: Pricing Trends - LCD TV panel prices have risen since January 2025 due to strong terminal demand, but are expected to stabilize in May 2025 as procurement demand cools [4] - MNT panel prices are experiencing moderate increases, while NB panel prices remain stable [4] Group 3: Company Developments - The 8.6 generation AMOLED production line in Chengdu began equipment installation four months ahead of schedule, transitioning from construction to operational phase [5] - In 2024, the revenue structure for display devices is projected to be: TV 26%, IT 34%, LCD mobile and others 13%, and OLED 27% [6][7] Group 4: Financial Outlook - The company anticipates depreciation of approximately 38 billion in 2024, with an increase compared to 2023 due to the completion of depreciation for several high-generation lines [8] - Depreciation is expected to peak this year as new projects are completed and mature lines reach the end of their depreciation period [8] Group 5: Industry Integration - The company is open to participating in industry consolidation, considering factors such as industry layout, market structure, and integration costs [9]

Industry Overview - The LCD industry is shifting from competition based on scale and market share to a focus on high-profit applications, high-value products, advanced technology, and high-value brands, driving high-quality development [2] - The average utilization rate of the LCD industry has been recovering since November 2024, maintaining above 80% in Q1 2025, with adjustments made in response to demand fluctuations [3] Market Demand and Pricing - The demand-side inventory has accelerated reduction, leading to a healthier industry inventory and a return to normal demand rhythms [1] - LCD TV panel prices increased from January to March 2025 due to strong terminal demand, but are expected to stabilize in May as procurement demand cools [4] Production and Capital Expenditure - The 8.6 generation AMOLED production line in Chengdu began equipment installation four months ahead of schedule, transitioning to operational phase [5] - The company anticipates approximately 38 billion in depreciation for 2024, with an increase expected due to the completion of high-generation line depreciation and new project solidification [7] - Future capital expenditures will focus on semiconductor display business and strategic planning, including investments in IoT innovation, sensors, MLED, and smart medical engineering [8]

Core Viewpoint - The panel industry experienced a strong start in Q1 2023, but overall demand is expected to decline in Q2, leading companies to adopt a production-on-demand strategy to manage uncertainty [1][5]. Group 1: Company Performance - TCL Technology reported a revenue of 104.3 billion yuan for 2024, a 25% year-on-year increase, with a net profit of 6.23 billion yuan, improving by 62.4 billion yuan [4]. - BOE Technology's Q1 2025 revenue reached 50.599 billion yuan, a 10.27% year-on-year increase, with a net profit of 1.614 billion yuan, up 64% [4]. - In 2024, BOE's revenue is projected to be 198.4 billion yuan, a 13.65% increase, with a net profit of 5.323 billion yuan, up 108.96% [4]. Group 2: Market Trends and Demand - The panel industry saw a short-term surge in demand in Q1 2023, driven by tight supply and favorable policies, but is now facing a high-level decline in demand due to tariff policy disruptions and preemptive stockpiling [5]. - The demand for IT and mobile display panels remains strong, influenced by government subsidies and rising tariffs [5]. - The price of TV panels has slightly rebounded due to the tight supply-demand balance, but is expected to stabilize as production adjusts [8]. Group 3: Strategic Moves and Investments - TCL Technology is increasing its stake in Shenzhen Huaxing Optoelectronics to 84.21% through a share issuance and cash payment totaling 11.562 billion yuan [6]. - BOE is exploring overseas market opportunities to mitigate the limited impact of tariffs on its exports to the U.S. [8]. - Both TCL and BOE are focusing on expanding their presence in emerging display technologies, including OLED and MLED [7]. Group 4: Industry Outlook - The market share of major panel manufacturers, including BOE, TCL Huaxing, and Huike, is expected to rise to 66% in the global LCD panel supply market [7]. - The industry is anticipated to undergo consolidation, with BOE open to acquiring additional stakes to enhance competitiveness [9]. - Both companies have announced dividend plans, with BOE proposing a cash distribution of no less than 35% of its net profit and TCL planning to repurchase shares worth up to 800 million yuan [9].