BOE has released its 2023 half-year performance forecast, indicating a projected decrease in profits compared to the same period last year. During the forecasted period from January 1, 2023, to June 30, 2023, BOE anticipates a decline in net profits ranging between 700 million and 800 million yuan (around $110 million). In comparison, the company recorded a net profit of 6,595.66 million yuan ($919 million) during the same period last year, representing a decrease of approximately 88% to 89%. After deducting non-recurring gains and losses, the company expects a net loss between 1.5 billion and 1.6 billion yuan (around $215 million), a decline of approximately 135% to 138% compared to the previous year.
The company says that the decline in profits can be attributed to several factors. Firstly, the global macroeconomic environment during the first half of 2023 was characterized by complex and fluctuating conditions, resulting in sluggish recovery in end-consumer demand. Additionally, the semiconductor display industry gradually emerged from its downturn due to supply-side dominance, demonstrating an upward trend during the first and second quarters of 2023. The company experienced sequential improvements in profit after deducting non-recurring gains and losses, with the second quarter showing revenue growth.
BOE’s LCD segment implemented a strategic approach of on-demand manufacturing. In the OLED segment, although the overall shipment of smartphones in 2023’s first half was lower than expected, the penetration rate of flexible AMOLED in the smartphone market continued to rise. BOE says it capitalized on market opportunities by focusing on high-end demand, resulting in a first-half shipment of flexible AMOLED surpassing 50 million units, an almost 80% year-on-year increase. However, depreciation pressures and intense price competition in the low-end market continued to impact the profitability of the company’s AMOLED business, albeit showing signs of improvement.
