In 2023, BOE A will achieve revenue of 174.543 billion yuan, a slight decrease of 2.17%. Its business is dominated by displays, accounting for 84.25%, Internet of Things innovation business accounts for 12.26%, and other businesses account for a small proportion. BOE A business has a high degree of internationalization, and the revenue outside Chinese mainland exceeds 50%, which has risks and opportunities. The products are mainly TFT-LCD, and AMOLED is less. The main factor affecting the company's revenue is product price rather than production and sales volume. Panel prices have fluctuated significantly since 2020, resulting in a decline in the company's performance and share price. However, with the promotion of policies and equipment updates, the demand for panels is expected to increase, and the company's capacity utilization rate will increase, which is expected to bring about a situation where both volume and price will rise. At present, BOE A's gross profit margin has gradually rebounded to 15%. In the future, with the implementation of upgrading policies for automobiles and home appliances, the demand for high-end and smart products will increase, which in turn will promote the growth of panel demand. When demand exceeds supply, product prices are expected to rise sharply, bringing better profit opportunities to BOE A. Overall, although facing certain risks and challenges, BOE A still has great potential for development. With the recovery of market demand and capacity expansion, the company is expected to achieve better performance in the future.
