Chinese Electronic Components Firm BOE Technology Achieves Record Profits in First Half of 2021
BOE, a Beijing-based provider of semiconductor display technology, products and services, on Tuesday evening released its semi-annual performance forecast, predicting a sharp improvement for the first half of the year.
The company expects net profits attributable to shareholders of listed companies to rise to between 12.5 and 12.7 billion yuan in the first half of 2021 – up by 1001% – 1018% year-on-year. If calculated according to the lower limit of the forecast, BOE’s net profits in the second quarter alone reached 7.3 billion yuan, setting a new high for the company’s single-quarter profits.
The company’s performance is expected to surge by more than 10 times due to continuing strong demand and an ongoing shortage of materials such as driver ICs.
One of the main reasons for BOE’s sharp increase in profits lies in various rising prices of IT, TV and other products over the first half of this year.
According to a forecast by Sigmaintell, in the first half of the year, BOE ranked first worldwide in the five major applications of smart phones, tablet PCs, notebook computers, monitors, TVs and other display shipments. Besides, its market share of flexible display products ranked first in the domestic industry and second in the world. In addition, the market share of vehicle display panels over eight inches will continue to be the top worldwide.
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According to the 2018 IFI Claims Patent Services report, only two companies from mainland China – Huawei and BOE – were listed in the Top 50 list of global patent holders.
Moreover, BOE is adjusting to the rapidly-developing Internet of Things. In the field of smart finance, BOE has secured strategic cooperation with China Minsheng Banking Corp, Industrial and Commercial Bank of China, China Construction Bank, Ping An Bank Co., Ltd. and many other banks.
BOE was formerly known as Beijing Electronic Tube Factory, a key enterprise built with the aid of the Soviet Union during China’s First Five-Year Plan. It became the first B-share listed company in Beijing in 1997 when it successfully issued domestic listed foreign shares (B-shares) on China’s Shenzhen Stock Exchange, raising 350 million yuan.
In January 2001, BOE successfully listed on the A-share market – since then, it has set off a series of fundraising frenzies. Statistics show that in the 12 years from 2001 to 2012, BOE raised funds in the stock market five separate times, exceeding 25 billion yuan in total.
The Asian financial crisis in 1998 presented BOE with an opportunity. At that time, Hyundai Group experienced financial difficulties, forcing it to sell its display business subsidiary HYDIS. BOE decisively seized the chance by successfully acquiring HYDIS in 2003 for $380 million, thus breaking through technology and patent barriers and entering the LCD industry.