BOE(SZ:000725)2025-09-30 01:08Group 1: LCD Market Trends - The industry is adopting a "demand-driven production" strategy, adjusting production rates based on market demand [1] - In Q1, strong export demand and "trade-in" policies led to high demand, resulting in price increases for mainstream LCD TV panel sizes [1] - By Q2, changes in the international trade environment caused a decrease in panel procurement demand, prompting quick adjustments in production rates [1] - Since Q3, inventory destocking has ended, leading to a gradual recovery in panel stocking demand, although some LCD TV panel prices have slightly decreased [2] Group 2: Flexible AMOLED Business Progress - The company has established a competitive position in the flexible AMOLED market, covering major smartphone brands and expanding into automotive and IT applications [3] - In the first half of 2025, the company shipped over 71 million AMOLED panels, a 7.5% year-on-year increase, maintaining the top position in China and second globally [3] - Despite market competition and short-term depreciation pressures, the company's profitability needs improvement [3] Group 3: Future Industry Trends - The display industry is entering a rebalancing phase, shifting focus from scale and market share to high profitability, technology, and added value [4] - LCD technology will remain a mainstream application, with ongoing demand for larger TV sizes and high-resolution products [4] - OLED technology is also expanding, particularly in the IT and automotive sectors, with increasing LTPO shipments [4] Group 4: Depreciation Trends - All 8.5-generation production lines have completed depreciation, while several AMOLED production lines have been finalized [5] - Depreciation is expected to peak in 2025 as new projects are finalized and mature production lines depreciate [5] - The company aims to optimize product line positioning to enhance operational efficiency and profitability [5] Group 5: Future Capital Expenditure - The company is transitioning from rapid expansion to a mature phase in LCD production, focusing capital expenditures on strategic planning [6] - Future investments will center on semiconductor display business and innovative applications in IoT, sensors, MLED, and smart medical engineering [6] Group 6: Shareholder Return Plan - The company plans to distribute at least 35% of the annual net profit to shareholders in cash from 2025 to 2027 [7] - A minimum of RMB 1.5 billion will be allocated for share buybacks annually, with additional plans for mid-term profit distribution [7] - The return plan reflects a comprehensive analysis of operational conditions, industry status, and shareholder interests, aiming for sustainable growth and shared benefits [8]