Core Viewpoint - The credit rating agency maintains the long-term credit rating of BOE Technology Group Co., Ltd. at AAA, with a stable outlook, reflecting the company's strong market position and financial health [1][5]. Company Overview - BOE Technology Group, originally established as Beijing Oriental Electronics Group Co., Ltd., has evolved into a leading player in the global semiconductor display industry, with a significant market share and a robust financial structure [10][16]. - As of the end of 2024, the company reported total assets of CNY 429.98 billion and equity of CNY 204.55 billion, with a revenue of CNY 198.38 billion and a profit of CNY 5.09 billion [10][25]. Financial Performance - The company experienced a revenue increase of 10.27% in 2024, with total revenue reaching CNY 198.38 billion, and a profit increase of 269.89% to CNY 2.35 billion [25]. - The operating cash flow for 2024 was CNY 47.74 billion, indicating strong cash generation capabilities [9][25]. Industry Analysis - The semiconductor display industry is showing signs of recovery after a downturn, with a projected growth in global TFT-LCD and AMOLED panel capacity by 2.5% in 2024 [12][14]. - The demand for large-sized displays is increasing, with the average size of liquid crystal television panels rising to 49.6 inches in 2024 [12][14]. Competitive Position - BOE Technology Group holds a leading position in the global semiconductor display market, ranking first in shipment volume and area for major applications such as smartphones, tablets, and televisions in 2024 [7][17]. - The company is also a significant player in the flexible OLED market, with a shipment of approximately 140 million units, ranking second globally [7][17]. Research and Development - The company invested CNY 13.205 billion in R&D in 2024, accounting for 6.66% of its total revenue, and holds over 100,000 patent applications globally [19][20]. - BOE has been recognized as a leader in technology innovation, consistently ranking among the top in patent grants in the United States [19][20]. Future Outlook - The semiconductor display industry is expected to continue growing, driven by technological innovations and the expansion of application scenarios, with BOE's ongoing projects enhancing its competitiveness in the AMOLED sector [6][15]. - The company aims to strengthen its core competencies and expand its business ecosystem through strategic investments in IoT, sensing, MLED, and smart medical engineering [28].

Core Viewpoint - China Lianhe Credit Rating Co., Ltd. has assigned a long-term credit rating of AAA with a stable outlook to BOE Technology Group Co., Ltd., reflecting the company's strong competitive advantages in the semiconductor display industry and its solid financial position [1][3]. Company Overview - BOE Technology Group Co., Ltd. was established in April 1993 and has evolved from the Beijing Electronic Tube Factory. The company is primarily engaged in the production of display devices, IoT innovations, sensors, MLED, and smart medical engineering [3][10]. - As of the end of 2023, the company had total assets of 4,191.87 billion yuan and equity of 1,977.99 billion yuan, with a revenue of 1,745.43 billion yuan and a profit of 18.33 billion yuan [3][10]. Industry Analysis - The semiconductor display industry is characterized by high concentration, with the top five companies holding approximately 80% of the global market share. The industry is closely tied to the performance of downstream consumer electronics, which has shown cyclical fluctuations [8][9]. - Despite challenges, the industry is expected to benefit from ongoing economic structural transformations and technological innovations, particularly in OLED, Mini LED, and Micro LED technologies [8][9]. Financial Performance - The company's revenue decreased from 2,210.36 billion yuan in 2021 to 1,745.43 billion yuan in 2023, with a profit total of 18.33 billion yuan in 2023, indicating a recovery from previous losses [6][20]. - The company maintained a strong cash flow position, with net cash inflows from operating activities of 626.99 billion yuan, 430.22 billion yuan, and 383.02 billion yuan from 2021 to 2023 [5][20]. Competitive Advantages - BOE has a significant scale advantage and a solid industry position, leading in global shipments of LCDs and various applications, including smartphones and TVs. The company also ranks first in the global market for IoT innovation products [4][10]. - The company invests heavily in R&D, with expenditures of 124.43 billion yuan, 126.02 billion yuan, and 125.63 billion yuan from 2021 to 2023, representing 5.63%, 7.06%, and 7.20% of total revenue, respectively [4][11]. Future Outlook - The company is expected to enhance its business and product structure with the further release of AMOLED capacity and the development of sensor, MLED, and smart medical engineering businesses [4][6]. - The semiconductor display industry is anticipated to continue evolving with the integration of IoT technologies and the growth of new application markets, supported by government initiatives for technological innovation [9][10].