Core Insights - BOE Technology announced on September 30 that industry players are continuously implementing an "on-demand production" strategy, flexibly adjusting production line utilization rates based on market demand changes [1] Industry Summary - In Q1, driven by strong export demand and the "trade-in" policy, overall terminal demand was robust, leading to high utilization rates across the industry and a comprehensive price increase for mainstream LCD TV panel sizes [1] - In Q2, changes in the international trade environment and policy effects led to a cooling of panel procurement demand, prompting industry players to quickly adjust utilization rates in response to demand fluctuations [1] - Since Q3, as the trend of inventory reduction among manufacturers has ended, the demand for panel stocking in the peak season has gradually recovered, resulting in a restoration of industry utilization rates. After a slight decline, prices for certain LCD TV panel sizes have stabilized, while prices for MNT and NB panels in the LCD IT segment have remained stable overall [1]

Core Viewpoint - BOE Technology Group announced on September 29 that industry players are continuously implementing a "demand-driven production" strategy, flexibly adjusting production line utilization rates based on market demand changes [1] Group 1: Market Demand and Production Strategy - In the first quarter, driven by strong export demand and the "old-for-new" policy, overall terminal demand was robust, leading to high utilization rates across the industry, with mainstream LCD TV panel prices rising across the board [1] - In the second quarter, changes in the international trade environment and policy effects led to a cooling of panel procurement demand, prompting companies to quickly adjust their utilization rates in response to demand changes [1] - Since the third quarter, as the trend of inventory reduction among manufacturers has ended, the demand for panel stocking in the peak season has gradually recovered, resulting in a recovery of industry utilization rates, while some LCD TV panel prices stabilized after a slight decline [1] Group 2: Price Trends - For LCD IT, the prices of MNT and NB panels have remained stable overall [1]

Group 1 - The core viewpoint is that BOE A indicates a recovery in panel inventory demand as the destocking trend among manufacturers comes to an end since the third quarter [1] - The industry operating rate has shown signs of recovery alongside the stabilization of LCD TV panel prices after a slight decline in certain sizes [1] - For LCD IT, the prices of MNT and NB panels have remained stable overall [1]

Group 1 - The core viewpoint is that BOE A (000725) has observed a recovery in panel inventory demand as the destocking trend among manufacturers comes to an end since the third quarter [1] - The industry operating rate has shown signs of recovery alongside the stabilization of LCD TV panel prices after a slight decline in certain sizes [1] - For the LCD IT segment, prices for MNT and NB panels have remained stable overall [1]

Group 1 - TrendForce reported a recovery in TV panel demand, with prices stabilizing in late August after a decline [1] - The demand for small-sized TV panels has significantly increased due to expected limited supply and relatively low prices, leading to a stronger purchasing momentum compared to Q2 [1] - It is anticipated that prices for TV panels ranging from 32 inches to 75 inches will stabilize, reflecting a trend towards equilibrium [1] Group 2 - The demand for notebook (NB) panels is expected to maintain a strong momentum, with a slight projected increase of 1.8% in Q3 [2] - Panel manufacturers are cautious about raising prices due to ongoing competition for customer orders, opting instead to maintain stable pricing through discounts [2] - The price trend for NB panels in August is expected to remain flat across the board [2]

Core Viewpoint - BOE Technology Group Co., Ltd. is experiencing positive market movements with a recent stock price increase and significant institutional interest, indicating a favorable outlook for the company and the LCD industry overall [1][2]. Group 1: Trading Information - As of June 6, 2025, BOE A shares closed at 3.94 CNY, up 3.68% from the previous week [1]. - On June 6, a block trade occurred with institutional net purchases amounting to 202.12 thousand CNY [2]. Group 2: Industry Insights - The LCD industry is seeing a normalization in supply and demand, with manufacturers adopting a "production based on demand" strategy, leading to a reduction in inventory levels [3]. - The mainstream LCD TV panel prices have been rising since January 2025, but demand is expected to cool down in the second quarter, stabilizing prices in May [3]. Group 3: Company Developments - BOE has made significant progress in its flexible AMOLED business, establishing a competitive edge in production capacity and technology, and is actively engaging with major smartphone brands [3]. - The Chengdu 8.6-generation AMOLED production line project has commenced equipment installation four months ahead of schedule, transitioning from construction to operational phase [4]. - The company anticipates a depreciation expense of approximately 38 billion CNY in 2024, with depreciation expected to peak this year as new projects come online and older lines reach the end of their depreciation period [4]. Group 4: Financial Announcements - BOE has received a loan commitment of 1.8 billion CNY from China Construction Bank for stock repurchase purposes, with a loan term of three years [5].

Group 1: Semiconductor Industry - SMIC achieved a record sales revenue of $2.2472 billion in Q1 2025, representing a year-on-year growth of 28.4%, with a gross margin remaining stable and an operating profit of $395.71 million, up 12,766.6% year-on-year [3] - For Q2, SMIC projects a revenue decline of 4% to 6% and a gross margin of 18% to 20%, indicating a mixed outlook for the second half of the year [3] - Hua Hong Semiconductor reported Q1 sales revenue of $540.9 million, a year-on-year increase of 17.6%, with a gross margin of 9.2%, up 2.8 percentage points year-on-year [4] - Hua Hong expects Q2 sales revenue to be between $550 million and $570 million, with a gross margin between 7% and 9%, amid uncertainties in customer demand and procurement costs [5] Group 2: Display Panel Industry - In May, domestic panel manufacturers increased production control and reduced utilization rates to stabilize prices, leading to a forecast of stable panel prices for the month [6] - Analysts believe that while end-market demand may experience temporary adjustments, domestic panel companies are well-prepared to respond through dynamic capacity adjustments and product optimization [6] - BOE indicated that the average utilization rate in the LCD industry has been above 80% since Q1 2025, but anticipates flexible adjustments in production lines in response to declining demand in Q2 [7] - The consolidation of the industry is accelerating, with BOE open to acquiring shares in Huacai and TCL completing the acquisition of LGD's Guangzhou factory, which will optimize the industry structure [7] Group 3: Automotive Industry - Geely Auto announced plans to fully merge with Zeekr Technology, aiming to enhance competitiveness in the smart electric vehicle sector through resource integration and cost reduction [8] - Post-merger, Geely's brands will maintain independent positioning while seeking collaborative development in technology, products, and supply chains [8] - Geely's chairman emphasized the importance of adapting to market competition and economic conditions to enhance innovation and profitability, creating long-term value in the global smart electric vehicle market [8]