Core Viewpoint - The article discusses the signing of a processing agreement between BOE Technology Group Co., Ltd. and BOE Vietnam, which allows for the manufacturing of TFT/TP modules and other products from December 11, 2025, to December 31, 2027 [1][2]. Group 1: Agreement Details - The processing agreement allows BOE Precision Electric to commission BOE Vietnam to provide manufacturing services on a non-exclusive basis for TFT/TP modules and other products [1][2]. - The agreement specifies that BOE Vietnam will charge processing fees based on a cost-plus method, with a profit margin not exceeding 5% of direct costs [4]. - The annual cap for the processing transactions is set at HKD 8 million for the period from December 11, 2025, to December 31, 2025, HKD 40 million cumulatively by December 31, 2026, and HKD 670 million cumulatively by December 31, 2027 [4]. Group 2: Strategic Implications - The strategy of BOE Precision Electric focuses on improving local presence, product diversification, quality, market responsiveness, and cost competitiveness to enhance global sales [5]. - The establishment of overseas production capacity is being explored to meet diverse customer needs regarding cost, origin, and quality [5]. - The processing agreement is expected to provide two strategic advantages: reducing risks associated with establishing production facilities in less experienced regions and effectively utilizing existing assets [5]. Group 3: Company Background - BOE Precision Electric primarily engages in the automotive and industrial display screen business, with capabilities in monochrome display manufacturing and TFT/TP display module assembly [5]. - BOE Precision Electric is the only platform for automotive display modules and systems under BOE, which holds approximately 53.02% control over the company [3][5]. - BOE Vietnam focuses on the research, production, and processing of electronic products such as televisions, displays, and electronic tags, and is a wholly-owned subsidiary of BOE [5].

Core Viewpoint - The company has entered into a total product processing agreement with BOE Vietnam, allowing for the manufacturing of TFT/TP modules and other products from December 11, 2025, to December 31, 2027, on a non-exclusive basis [1] Group 1: Strategic Goals - The company's strategy focuses on improving local presence, product diversification, quality, market responsiveness, and cost competitiveness to enhance global sales [1] - The company is exploring the necessity of establishing overseas production capacity to meet diverse customer demands regarding cost, origin, and quality [1] Group 2: Operational Flexibility - The total product processing agreement allows the company to flexibly reduce risks associated with establishing production facilities in other geographical areas where it has less experience [2] - The company aims to utilize its assets effectively through this agreement, leveraging BOE Vietnam's immediate available capacity to enhance competitiveness [2] Group 3: Industry Position - BOE is recognized as a leading supplier of semiconductor display technology, products, and services, with extensive experience and over 90,000 patents, including expertise in artificial intelligence and the Internet of Things [1] - As a market leader, BOE is equipped with a streamlined supply chain and a robust research and development team, enabling it to provide professional services to effectively execute the company's development plans [1]

Core Viewpoint - The company has entered into a total product processing agreement with BOE Vietnam, allowing for the manufacturing of TFT/TP modules and other products from December 11, 2025, to December 31, 2027, on a non-exclusive basis [1] Group 1: Strategic Goals - The company's strategy focuses on improving local presence, product diversification, quality, market responsiveness, and cost competitiveness to enhance global sales [1] - The company is exploring the necessity of establishing overseas production capacity to meet diverse customer demands regarding cost, origin, and quality [1] Group 2: Operational Flexibility - The total product processing agreement allows the company to flexibly reduce risks associated with setting up production facilities in other geographical areas where the company has less experience [2] - The company aims to effectively utilize its assets through this agreement, leveraging BOE Vietnam's immediate available capacity to enhance competitiveness [2] Group 3: Industry Position - BOE is recognized as a leading supplier of semiconductor display technology, products, and services, with extensive experience and over 90,000 patents, including expertise in artificial intelligence and the Internet of Things [1] - As a market leader, BOE is equipped with a streamlined supply chain and a robust research and development team, enabling the company to effectively execute its development plans and capture business opportunities [1]