200725

BOE delivered an impressive financial report for the first quarter of 2025. Operating revenue reached 50.6 billion yuan, a year-on-year increase of 10.27%. More notably, the company's net profit attributable to shareholders reached 1.614 billion yuan, a substantial year-on-year growth of 64.06%. The net profit after deducting non-recurring gains and losses was 1.352 billion yuan, soaring 126.56% year-on-year, indicating a significant improvement in the company's core business profitability.

On Tuesday, BOE released its financial report for the first quarter of 2025, with the following key points:

• Significant performance growth: BOE's Q1 2025 revenue was 50.6 billion yuan, up 10.27% year-on-year; net profit attributable to shareholders was 1.614 billion yuan, a year-on-year increase of 64.06%; net profit after deducting non-recurring items was 1.352 billion yuan, up 126.56% year-on-year;
• Ample cash flow: The net cash flow from operating activities was 13.744 billion yuan, a decrease of 15.32% compared to the same period last year, but still maintaining good financial strength;

• Continued increase in R&D investment: Q1 R&D expenses were 3.014 billion yuan, a year-on-year increase of 10.58%, accounting for 5.96% of revenue;

• New round of buybacks initiated: The board of directors approved a plan to repurchase some publicly held shares on April 18, 2025, aimed at enhancing earnings per share and maintaining company value;
• Smooth progress in equity incentives: The third phase of stock options and restricted stock from 2020 has met the conditions for lifting restrictions, involving 667 incentive recipients. The number of restricted shares that can be released from restrictions is 89,096,540 shares, accounting for 0.2367% of the company's current total share capital. The listing and circulation date for the released restricted shares is April 29, 2025.

Stable financial condition, continuous increase in R&D investment

As of the end of the first quarter of 2025, BOE's total assets were 420.213 billion yuan, slightly down 2.27% from the beginning of the year, but the equity attributable to shareholders of the listed company remained high at 132.545 billion yuan. The company's cash flow situation is good, with a net cash flow from operating activities reaching 13.744 billion yuan, providing ample funding support for business development.

This performance growth is largely attributed to the optimization and adjustment of the company's product structure. Although the financial report did not disclose detailed performance for each business line, the profit growth rate far exceeding the revenue growth rate suggests that the proportion of high value-added products may have increased.

It is worth noting that the R&D expenses reached 3.014 billion yuan, a year-on-year increase of 10.58%, accounting for 5.96% of operating revenue. The continued high R&D investment reflects BOE's strategic commitment to technological innovation, supporting the competitiveness of future products Despite BOE's impressive performance in Q1, it cannot be ignored that the global display panel industry still faces challenges such as overcapacity and price fluctuations. According to the financial report data, the company's asset impairment loss reached 651 million yuan, which, although reduced compared to the same period last year, still reflects the intensity of industry competition.

At the same time, the company's financial expenses increased by 104% year-on-year, mainly due to the small fluctuations in exchange rates during the reporting period, resulting in a decrease in net exchange gains.

Capital operations proceed in parallel, incentive mechanisms gradually implemented

During the reporting period, BOE was active in capital operations.

On March 25, 2025, the company fully repaid the principal and interest of the "22BOEY1" corporate bonds; at the same time, on April 18, 2025, the board of directors approved a proposal to repurchase part of the public shares, planning to convey growth confidence by enhancing earnings per share, which demonstrates the management's recognition of the company's value.

In terms of incentive mechanisms, the third unlock condition of the company's 2020 stock option and restricted stock incentive plan has been met, allowing 667 incentive recipients to unlock 8,909,650 restricted shares, accounting for 0.2367% of the company's total share capital.

This move helps further bind core talents and promotes the company's long-term stable development