Core Viewpoint - The article discusses the "N Curve" theory proposed by BOE Technology Group, emphasizing the need for continuous innovation and adaptation in the face of technological advancements, particularly in AI, to drive sustainable growth and industry evolution [4][6][13]. Group 1: N Curve Theory - The "N Curve" concept is introduced as a system that encourages technology companies to innovate and find new growth points, evolving from a foundation of "human power" to "human power + AI computing power" [4][6]. - BOE's CEO outlines the strategic direction under the "N Curve," extending beyond display technology into fields like perovskite photovoltaics and robotics, leveraging its semiconductor display and manufacturing capabilities [6][7]. - The company has already made significant progress in its "N Curve" initiatives, with perovskite photovoltaic products achieving IEC certification and initial setups for glass-based packaging lines [6][11]. Group 2: AI Integration and Strategic Development - The article highlights the importance of AI in driving strategic advancements, with BOE's "1+4+N+ ecosystem" framework focusing on integrating AI into manufacturing, products, and operations [13][14]. - AI is seen as a catalyst for innovation across various sectors, with BOE actively seeking opportunities to enhance its product offerings and operational efficiency through AI technologies [14][20]. - The collaboration with partners in the AI space is emphasized, showcasing how AI can enhance user interaction and data analysis in products [16][20]. Group 3: Globalization and Product Innovation - BOE is positioning itself to navigate global markets by establishing smart factories in regions like Vietnam and Mexico, aiming to shorten supply chains and enhance local operations [22][23]. - The company is focused on transitioning from price competition to value competition within the display industry, driven by product innovation and technological advancements [22]. - Partnerships with other companies, such as Hisense and Lenovo, are highlighted as key to enhancing global competitiveness and product offerings [23][25]. Group 4: Sustainable Development and Industry Collaboration - The article underscores the importance of sustainable development discussions among industry partners, with BOE initiating events like the IPC night to foster collaboration [29]. - The ongoing dialogue around strategic elevation and sustainability is seen as crucial for navigating the challenges posed by globalization and technological disruption [29].

Core Insights - The BOE Global Innovation Partner Conference 2025 was held in Beijing, focusing on the theme "AI Renewal in Screen IoT" [1] - BOE's Chairman Chen Yanshun emphasized the dual explosion of AI technology and industry penetration over the past year, further elaborating on the "N Curve" theory which guides enterprises through cycles and self-evolution [1][2] - The company aims to establish itself as a benchmark for "AI+" applications, leveraging AI to empower high-quality industry development [1] Group 1: Strategic Development - BOE's sustainable development strategy includes six pillars: open innovation, environmental sustainability, win-win ecology, people-oriented approach, ethical management, and future benefits [1][2] - The "ONE" sustainable development brand aims to create an organic system driven by open innovation and sustainable value creation [2] - The AI factory, driven by next-generation AI, focuses on six application areas to enhance operational efficiency and manufacturing processes [2] Group 2: Technological Innovation - The Blue Whale Display Model is designed for the display industry, featuring high precision and strong reasoning capabilities, providing intelligent solutions across various business sectors [3] - The conference showcased numerous AI applications, including digital hosts, AI simultaneous translation, inspection robots, and immersive VR experiences, highlighting BOE's capabilities in AI technology [3] - BOE integrates sustainable development into all aspects of the conference, promoting green development within the industry ecosystem [3][4] Group 3: Industry Collaboration - BOE launched a joint sustainable development initiative with partners like Hisense, Meta, and Lenovo, emphasizing collaboration for ecological win-win outcomes [4] - The conference featured over 200 cutting-edge display technologies and numerous new products, showcasing innovations in fields such as the metaverse and smart transportation [4]

在"第N曲线"指导下，京东方"屏之物联"战略发展体系日益完善，为企业穿越周期、高质发展指明航 向。未来在AI技术的加持下，京东方也将以自身实践为范本，树立起能借鉴、可复制的"AI+"应用标杆 典范，以AI焕新之力全面赋能行业高质发展。 9月11日，以"屏之物联 AI焕新"为主题的京东方全球创新伙伴大会2025（BOE IPC 2025）在北京开幕。 京东方去年提出企业升维的"第N曲线"理论。京东方董事长陈炎顺表示，过去的一年，AI迎来了技术跃 迁与产业渗透的双重爆发。在AI赋能持续深化的趋势下，京东方进一步阐释了"第N曲线"的深层内 涵。"第N曲线"理论是指导企业穿越周期、跳出企业兴衰命运的普适规律，是基于企业核心优势，并与 市场机遇契合的自我进化系统，是企业不断进取，迭代增长，实现生态化发展的必由之路。 他表示，依托京东方发布的"ONE"可持续发展品牌，构建一个以"开放创新"为基因、以可持续价值创造 为目标的有机体系。通过"开放创新"赋能并驱动四大基础支柱，不断夯实可持续发展的运营根基和能 力，最终通过"创益未来"实现商业价值与可持续价值的统一，让可持续发展成为京东方的核心竞争力 和"第N曲线"新增长极，推 ...

Core Viewpoint - BOE Technology Group reported strong financial performance in the first half of 2025, with revenue of 101.28 billion yuan, a year-on-year increase of 8.45%, and a net profit attributable to shareholders of 3.25 billion yuan, up 42.15%, reflecting its strategic focus on "screen-based IoT" and high-quality development [1][5]. Group 1: Display Industry Performance - BOE maintained its leading position in the global display industry, ranking first in shipment volume across five major applications: smartphones, tablets, laptops, monitors, and TVs [1]. - The company launched its sixth-generation semiconductor display production line in May 2025, marking a transition from construction to operational phase [1]. Group 2: Flexible Display and Sensor Business - In the flexible display sector, BOE introduced various high-end solutions such as foldable and rollable screens, while also expanding into automotive and IT applications [2]. - The sensor business saw significant growth, with revenue increasing by 36.8% year-on-year, driven by successful product launches and partnerships [2]. Group 3: MLED and Smart Medical Services - The MLED business experienced explosive growth, with backlight device revenue rising by 144% year-on-year, focusing on TV, automotive, and gaming markets [3]. - In the smart medical sector, BOE's hospitals reported 688,000 outpatient visits and 33,000 discharges, showcasing enhanced medical service capabilities [3]. Group 4: Diverse Sector Development - BOE's "1+4+N+ ecosystem" strategy has yielded significant results across various sectors, including automotive displays, digital cultural tourism, and energy solutions [4]. - The company is investing in solar power stations, achieving a reduction of approximately 400,000 tons of CO2 emissions [4]. Group 5: Future Strategy - Looking ahead, BOE plans to continue its market-oriented, international, and professional development path, focusing on innovation and sustainable growth in the semiconductor display and IoT industries [5].

Core Viewpoint - The global display industry is entering a rebalancing phase, shifting from competition based on scale and market share to a focus on high profitability, high technology, and high added value [3]. Group 1: Industry Overview - The display industry is currently dominated by two core technologies: LCD and OLED, with Chinese companies, particularly BOE, leading the global LCD market [1]. - The demand structure for LCD is optimizing, with a significant trend towards larger TV sizes, while OLED is gaining traction in high-end segments, including foldable screens [3]. - Emerging display technologies, such as Mini/Micro LED, are expected to inject innovation and growth into the industry [3]. Group 2: Company Developments - BOE has introduced the "Screen IoT" strategy and the "N Curve" theory to drive its development, focusing on display technology, glass-based processing capabilities, and large-scale integrated intelligent manufacturing [3]. - The company has made significant progress in new business areas, including glass-based packaging and perovskite photovoltaic devices, with successful production milestones achieved [4]. - BOE's automotive display platform, BOE Precision Electronics, reported over 10 billion RMB in revenue last year, becoming the global leader in automotive display shipments [4]. Group 3: Financial Performance - In 2024, BOE achieved revenue of 198.38 billion RMB, a year-on-year increase of 13.66%, with a net profit of 5.32 billion RMB, up 108.97% [7]. - The display device business generated 165 billion RMB in revenue, maintaining the global lead in LCD shipments and ranking second in flexible OLED shipments [7]. - The gross margin for the display device business improved to 12.75%, an increase of over 4 percentage points from 2023 [7]. Group 4: Capital Strategy - BOE is shifting its capital strategy from scale expansion to shareholder value creation, with expectations of entering a profit improvement phase post-2025 [5]. - The company has initiated a three-year shareholder return plan, including stock buybacks and profit distribution, to enhance shareholder returns [7]. - Capital operations include mergers and acquisitions of quality assets and independent listings of innovative businesses to strengthen overall corporate capabilities [8].

Investment Rating - The report maintains a "Buy" rating for BOE Technology Group Co., Ltd. (京东方 A) [5][7] Core Viewpoints - The company emphasizes that LCD will remain the mainstream display technology in the medium to long term, while the flexible OLED market is rapidly growing. The industry is transitioning from competition based on scale and market share to high-value-driven competition [2] - BOE is advancing its "N Curve" growth strategy, focusing on new business growth areas such as perovskite photovoltaic devices and glass-based packaging, which are expected to support future growth [3] - The company's profitability is expected to improve as it transitions its capital strategy towards value creation, with significant capital expenditures and depreciation peaks anticipated in 2025, leading to a more favorable environment for shareholder returns [4] Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at CNY 215.996 billion, CNY 239.566 billion, and CNY 264.058 billion, respectively. Corresponding net profits are projected to be CNY 9.415 billion, CNY 13.410 billion, and CNY 15.513 billion [5][6] - The report indicates a significant recovery in net profit growth rates, with expected year-on-year increases of 76.9% in 2025 and 42.4% in 2026 [6] Financial Metrics - The report provides key financial metrics, including a projected P/E ratio of 15.9 for 2025 and a P/B ratio of 1.0, indicating a favorable valuation relative to earnings and book value [6][7] - The company's return on equity (ROE) is expected to improve from 6.6% in 2025 to 9.6% in 2027, reflecting enhanced profitability [6]