After 25 years of relentless effort, BOE A (5.79-2.69%) has finally emerged as the global leader in the panel industry. Last year, the company is expected to report net profits ranging from 7.5 billion to 7.8 billion yuan, marking a significant turnaround from its past struggles. Despite early losses and high investment risks, BOE has managed to transform itself into a powerhouse.
Now, the company is starting fresh with bold moves. On March 8, BOE A announced three major projects in one go, totaling an investment of 96.523 billion yuan. This marks the largest single-day investment in the company's history, focusing on expanding its panel business. The announcement highlights BOE’s strategic push to solidify its market position and drive future growth.
Wang Dongsheng, an accountant by background, took the helm and led Beijing Dongfang Electronics Group, which now employs over 2,600 people. For 25 years, BOE has focused on the panel industry, continuously reshaping its industrial layout through mergers and acquisitions, ultimately becoming a top player in the field.
According to incomplete data from Changjiang Business Daily, since 2010, BOE has executed 11 major M&A deals, with a total transaction value of 24.303 billion yuan. From 2000 to 2013, the company invested 187.475 billion yuan in various projects. To support this growth, BOE frequently raised capital. As of September last year, the company had accumulated 316.312 billion yuan in fundraising, including 80.868 billion yuan from fixed additions and bond issuances.
Additionally, during the decade from 2007 to 2016, BOE received 7.33 billion yuan in government subsidies. Over two decades of hard work culminated in October of last year when BOE launched its first China-made, second-global flexible AMOLED production line in Chengdu ahead of schedule. This breakthrough helped break Samsung’s monopoly and marked a key step in replacing high-end displays in China.
The company’s profitability has also improved significantly. While it suffered five consecutive years of losses from 2007 to 2011, last year’s projected net profit of 7.5–7.8 billion yuan nearly offset those losses. With a massive 100-billion-yuan investment in panel projects, BOE aims to further consolidate its leadership in the industry.
On March 8, BOE announced three projects: a 46 billion yuan investment in a 10.5-generation TFT-LCD line in Wuhan, a 46.5 billion yuan project for a sixth-generation AMOLED line in Chongqing, and a 4.023 billion yuan industrial park in Suzhou. These initiatives are designed to expand market share, enhance technological capabilities, and strengthen the supply chain.
BOE’s aggressive M&A strategy has been instrumental in its growth. Starting from a small electronic factory, the company evolved through strategic acquisitions, such as the 2003 purchase of Hyundai’s TFT-LED business, which marked its entry into the LCD industry. Despite challenges, including losses and stock delisting, BOE continued to grow through mergers and acquisitions, eventually becoming a global leader.
From 2010 to 2023, BOE completed 11 major M&A deals, investing 24.303 billion yuan. It also spent 187.475 billion yuan on projects between 2000 and 2013. Its ability to raise capital, both directly and indirectly, played a crucial role in funding these expansions. Additionally, R&D investment grew from 1.781 billion yuan in 2012 to 4.139 billion yuan in 2016, totaling 13.62 billion yuan over five years.
With a strong focus on innovation, strategic expansion, and financial discipline, BOE A is well-positioned to maintain its leadership in the global display industry. Its recent investments and successful transformation have drawn attention from analysts, who view it as a key driver of growth in the panel sector.
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