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 achieve a net profit between 7.5 billion and 7.8 billion yuan, marking a significant turnaround from its previous losses. The more it invested, the more it learned, and now it's ready to take on new challenges.
The company is starting fresh, with a bold move: on March 8, BOE A announced three major projects totaling 96.523 billion yuan, all focused on panel production. This is the largest investment in a single day since the company was founded. According to public records, Wang Dongsheng, an accountant by background, took the helm and led Beijing Dongfang Electronics Group, which now employs over 2,600 people.
Over the past 25 years, BOE has remained focused on the panel business, constantly redefining its industrial structure through strategic mergers and acquisitions. This approach has helped it rise to the top of the industry. According to incomplete statistics from the Changjiang Business Daily, since 2010, BOE has completed 11 major M&A deals, with a total transaction value of 24.303 billion yuan. From 2000 to 2013, the company invested a staggering 187.475 billion yuan in various projects.
To support its growth, BOE frequently raised capital. Wind data shows that as of the end of last September, the company had raised a total of 316.312 billion yuan. Of this, 80.868 billion yuan came from fixed increases and bond issuances. Additionally, during the 10 years from 2007 to 2016, BOE received approximately 7.33 billion yuan in government subsidies.
After 25 years of hard work, BOE made a breakthrough. In October last year, the company launched its first domestically produced, second globally flexible AMOLED line in Chengdu ahead of schedule, breaking Samsung’s monopoly and making a solid step forward in replacing high-end displays in China.
Meanwhile, its profitability has also seen a sharp increase. From 2007 to 2011, the company reported five consecutive years of losses, but last year’s projected net profit of 7.5–7.8 billion yuan almost fully offset those losses.
BOE’s recent investments are aimed at reinforcing its leadership in the industry. On March 8, the company announced three large-scale projects. One involves building a 10.5-generation TFT-LCD line in Wuhan, with a total investment of 46 billion yuan. Another project focuses on a sixth-generation AMOLED line in Chongqing, investing 46.5 billion yuan to produce high-end mobile displays. The third project is a 4.023 billion yuan industrial park in Suzhou, aiming to enhance resource integration and support smart manufacturing.
These investments have caught the attention of the market. Analysts believe they could be a key driver for the panel industry’s recovery, helping BOE expand its market share further.
BOE’s journey has not been without challenges. Its frequent M&A activities sparked controversy, but they were crucial for its transformation. Starting from the Beijing Electronic Tube Factory, the company struggled before reinventing itself in 1993 as Beijing Dongfang Electronics Group. Through strategic acquisitions like Hyundai’s TFT-LED business in 2003, BOE entered the LCD industry and gradually became a major player.
Despite early setbacks, including losses and being placed under ST status, BOE continued to grow through acquisitions and strategic investments. By 2016, the company had completed several major deals, including acquiring SES-imagotag, which expanded its presence in the smart retail sector.
BOE’s financial performance has improved significantly in recent years. After four years of losses totaling 6.17 billion yuan, the company turned around, with net profits rising steadily from 2013 onward. Last year’s profit alone was enough to cover those losses.
Behind this success lies a commitment to R&D. From 2012 to 2016, BOE invested a total of 13.62 billion yuan in research and development, driving innovation and technological advancement. With these efforts, BOE is well-positioned to maintain its leadership in the global display industry.
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