BOE: LCD product prices are expected to stabilize and rebound in December.

On December 3rd, BOE disclosed its latest investor activity record. The document mainly answers investor questions, as follows:

1. How does the company view the utilization rate of its LCD production lines and product price trends?

A: Looking back at this year, at the beginning of the year, TV product shipments were stimulated by national subsidies and rush exports, leading to a shift in demand. Both total shipment volume and shipment area are expected to increase for the year. However, the trend towards larger sizes has slowed temporarily due to increased shipments of small and medium-sized TV products driven by demand from emerging markets. IT products are expected to see rapid growth in shipments for the year, driven by replacement demand, while MNT product shipments are expected to remain flat year-on-year. Looking ahead, demand for IT products and TV products is expected to benefit from the replacement cycle and demand driven by AI and sporting events, respectively. In December, due to the release of restocking demand, according to consulting firm forecasts, the industry is expected to achieve a high utilization rate, and product prices are expected to stabilize and rebound.

2. How does the company view the OLED product structure?

A: Shipments of foldable products are expected to decline in the second half of the year, while the demand share of overseas brands for LTPO will further increase. Shipments of low-end Ramless products will grow rapidly, and competition in the domestic OLED market will intensify, leading to short-term operational pressure due to product structure issues. In the future, the company will continuously strengthen its technological capabilities, optimize its product structure, and improve its operating performance.

3. What is the company's future depreciation trend?

A: As of now, all three of the company's sixth-generation flexible OLED production lines have been completed and put into operation. The Chengdu 8.6th generation AMOLED production line project and the Beijing 6th generation LCD LTPO/LTPS production line project will be completed and put into operation in stages, taking into account the ramp-up situation. The company's depreciation is expected to peak in 2025. The company will continue to optimize product line positioning, further improve operational efficiency, and continuously improve profitability.

4. What new progress has the company made in innovative businesses?

A: Guided by the "Nth Curve" theory, the company continues to implement the "Screen IoT" development strategy, focusing on innovative businesses such as perovskite photovoltaics, glass-based encapsulation substrates, and robotics. Taking the perovskite photovoltaic business as an example, the company leverages its long-term accumulated advantages in glass-based processing, thin-film preparation, packaging and equipment, and large-scale intelligent manufacturing capabilities in the display industry to deeply empower business development. It has completed the full process layout of three major platforms, from glove box (2.5*2.5cm) to experimental line (30*30cm) and pilot line (120*240cm), achieving a conversion efficiency that ranks among the top in the industry.