Boe Technology Group Co.,Ltd. (SHE: 000725), commonly known as BOE A, has announced a forecast for its 2026 first-half financial performance.
The company expects its net profit attributable to shareholders to reach between 5 billion and 5.5 billion yuan, representing a year-on-year increase of 54% to 69%. The upper end of this forecast is close to the company's total net profit for the entire year of 2025.
The projected figure includes non-recurring gains and losses of approximately 2 billion yuan, which have increased compared to the same period last year. This increase is primarily attributed to higher fair value gains from the company's held financial assets.
Historical Context and Current Performance
Historically, BOE A's peak profit was recorded in 2021 at 25.8 billion yuan. The years 2017 and 2022 followed, with annual net profits exceeding 7.5 billion yuan each.
With a 2025 full-year net profit of 5.857 billion yuan, the 5.5 billion yuan upper limit of the 2026 first-half forecast indeed approaches last year's total annual figure.
The company stated that during the reporting period, while rising memory product prices pressured sales of consumer electronics, industry demand remained resilient and the competitive landscape continued to improve. BOE maintained its position as the global leader in shipments for its five major mainstream LCD panel applications. Shipments of high-end products featuring high refresh rates, high contrast, and high resolution continued to grow, supporting stable operations.
In the LCD sector, although demand for TV products was boosted by inventory buildup for sporting events, overall shipments in mainstream application areas still faced year-on-year pressure. However, benefiting from an accelerated trend towards larger screen sizes, the total shipment area saw a year-on-year increase. On the supply side, the exit of some overseas aging production lines and the industry's adherence to "production on demand" have led to continuous improvement in the supply-demand balance. The TV panel market has moved towards equilibrium, resulting in a significant year-on-year performance improvement for BOE's LCD business.
For flexible AMOLED, despite challenges from declining smartphone market demand, BOE's AMOLED product shipments in the first half exceeded 80 million units, maintaining year-on-year growth. Furthermore, following the mass production of the company's 8.6th-generation AMOLED production line, BOE will continue to advance the upgrade of mid-size high-end OLED products, steadily enhancing the overall competitiveness of its flexible AMOLED business.
It is noteworthy that as depreciation for existing production lines continues to decrease and new projects under construction are gradually transferred to fixed assets considering their production ramp-up, BOE's total depreciation amount is expected to begin declining from the 2025 baseline.
Regarding capital expenditure, the industry has transitioned from a phase of rapid large-scale capacity expansion to a mature stage. Looking ahead, as the company's investment scale decreases, its capital expenditure is anticipated to gradually decline.
Progress in Glass Core Substrate Development
On May 20, BOE signed a memorandum of cooperation with Corning Incorporated. The collaboration will focus on key areas including glass core packaging substrates, foldable glass, perovskite glass substrates, and optical interconnect applications, aiming to jointly explore commercially viable technologies and market opportunities.
Following this announcement, BOE's share price experienced a sustained rally, at one point doubling. Concurrently, investment institutions have frequently conducted research visits to the company.
According to an investor relations activity record released on July 7, BOE initiated pre-research on glass core substrate technology in 2020. In 2022, it invested 390 million yuan to build a wafer-level innovation experimental platform compatible with both glass and silicon bases. In 2024, a further investment of 993 million yuan was made to establish a pilot line for panel-level glass core packaging substrates. Main equipment was moved in and debugged within 2025, and full automation of the equipment line was achieved in the first half of 2026.
This pilot line has a designed capacity of 1,000 panels per month. The company has now successfully demonstrated the entire process flow for manufacturing glass core packaging substrates, encompassing technologies such as high aspect ratio TGV (Through Glass Via) hole creation, deep via copper filling, low-stress metal wiring, multi-layer lamination, high-density routing, and low-stress cutting. It possesses comprehensive manufacturing process capabilities for glass substrates.
Notably, in 2025, BOE completed the development and sampling of large-size, high-layer-count (9-2-9, 20 layers) glass core substrate samples. These samples have passed standard reliability tests including Pre-con, TCB 1000 cycles, UHAST, BHAST, HTSL, and LTSL.
BOE stated that its target product is the glass core substrate required for advanced packaging of large-size computing chips, which can be adapted to different advanced packaging methods. The company has already provided samples to some domestic clients, with some having passed the concept certification phase and entered the technical testing stage. However, as of now, the company has not achieved mass production, and this business has not yet generated revenue from volume production.
On July 8, BOE A shares closed at 7.63 yuan per share, giving the company a latest market capitalization of approximately 280.4 billion yuan.
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