Chinese display manufacturer, BOE, recently released its financial report for the first half of 2019 (H1 2019). According to the report, BOE’s H1 2019 cumulative revenue from January to June was 55.539 billion yuan (∼$8 billion). This represents a year-on-year increase of 26.6%, but the net profit was 1.668 billion yuan (∼$233 million), down 43.9% year-on-year. This decrease is mainly due to weak market demand as well as oversupply which led to a sharp drop in panel prices.
Gizchina News of the week
According to BOE’s H1 2019 financial report, its 6th generation flexible AMOLED production line in Chengdu increased by more than 300% year-on-year. This is a new high for the production line. Hefei’s 5th generation TFT-LCD production line is fully productive, with a yield of over 90%. The construction of the sixth-generation flexible AMOLED production line in Chongqing is going according to plan.
According to IHS Markit data, BOE’s overall display shipment is top globally, with shipments up 23% year-on-year. As of now, virtually all devices with a display requires an OLED panel. Flexible OLED panels for smartphones account for the second-largest market share in the world.
According to recent reports, BOE’s OLED display is undergoing aggressive testing by Apple. If Apple joins BOE’s customer list, its revenue will probably increase next year. However, there are also reports that the Huawei Mate 30 Series will use Samsung’s display. This could be a loss on BOE’s part because the Mate 20 series partly patronized BOE.
