---
title: "BOE: Cycle Too Punishing — Even the Leader Only Earning Thin Margins?"
type: "Topics"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/topics/39646950.md"
description: "BOE Tech A (000725.SZ) released its Q4 and FY2025 results (to Dec 2025) after the A-share close on Mar 31, 2026 Beijing time. Key takeaways: 1) Overall results:Q4 2025 revenue was RMB 50bn, down 8.4% YoY. Panel ASPs eased ~1% YoY, with lower shipments the primary drag.Q4 2025 net profit attributable to shareholders was RMB 1.26bn, largely shaped by minority-interest effects. Excluding that impact..."
datetime: "2026-03-31T14:45:42.000Z"
locales:
  - [en](https://longbridge.com/en/topics/39646950.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/39646950.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/39646950.md)
author: "[Dolphin Research](https://longbridge.com/zh-HK/news/dolphin.md)"
---

> 支持的語言: [English](https://longbridge.com/en/topics/39646950.md) | [简体中文](https://longbridge.com/zh-CN/topics/39646950.md)


# BOE: Cycle Too Punishing — Even the Leader Only Earning Thin Margins?

BOE Technology (000725.SZ) released its Q4 and FY2025 results (through Dec 2025) after the A-share close on Mar 31, 2026 Beijing time. Key highlights are as follows:

**1\. Overall results: Q4 2025 revenue was RMB 50bn, down 8.4% YoY**. Panel ASPs edged down ~1% YoY, with lower shipments being the primary drag. Q4 attributable NP was RMB 1.26bn, largely shaped by minority-interest effects. **Excluding this,**$BOE(000725.SZ) **reported Q4 net profit of RMB 620mn, down ~72% YoY on softer revenue and higher opex**.

**2\. GPM and expense ratio:** Q4 GPM was 19.4%, up sharply QoQ. That said, the company booked sizeable impairment reversals of about RMB 2.1bn during the quarter. **Stripping out impairment effects, adjusted GPM was 15.1%, up 200bps QoQ.** With panel prices slightly lower QoQ, the improvement was primarily cost-driven.

**3\. By business**: Display devices and IoT innovation remained the largest revenue contributors, accounting for over 95% combined. **In H2 2025, display devices fell 1.6% YoY as panel prices and shipments both retreated**. IoT innovation declined 5.6% YoY, another contraction, indicating persistent softness in scenarios such as smart retail and smart office.

**4\. Inventory**: **Inventory stood at RMB 27.7bn in Q4 2025, essentially flat QoQ.** The inventory-to-revenue ratio held at 0.55, indicating a relatively steady and reasonable level.

**Dolphin Research view: Bigger scale, profits hovering around break-even**

Revenue declined YoY again this quarter. The profit drop mainly reflected the revenue contraction and higher opex. Both factors pressured margins and earnings.

**From a core-ops perspective, the 'true' GPM (considering impairment under the original accounting) was 15.1%, up 200bps QoQ. Combining this with an opex ratio of 14.3% suggests the core business sits just above break-even at ~0.8%**.

Dolphin Research adjusts profit as GP minus taxes and opex plus impairment losses; the processed profit was about RMB 93mn in Q4 on RMB 50bn of revenue. That implies a net margin of roughly 0.2% after taxes and impairment. This highlights how thin the profit buffer is at current pricing.

Panel makers previously curtailed capacity to lift prices, but demand has not materially improved. As profitability returned, utilization rose, pushing the market back toward balance and stalling further price gains.

Prices climbed through mid-2024 on supply contraction. With supply and demand now broadly balanced, prices have been stable for about a year, and BOE's performance suggests current levels only keep panel makers just above break-even.

**Since Feb 2026, panel prices have shown signs of firming, but tighter state subsidies and memory price hikes are weighing on TV/PC demand.** If the rebound is mainly driven by capacity adjustments, it will be hard to sustain.

**Near term, capacity discipline can sway panel prices and directly affect GPM and earnings.** However, a genuine demand recovery is the key indicator for the next upcycle.

**Mid to long term, the large-panel business continues to consolidate toward top players**, as seen in BOE's 30% stake purchase of Rainbow Optoelectronics in 2025. The top three now command over 60% of shipments, and higher concentration should moderate cyclicality.

**As the industry leader, BOE benefits from scale and stronger loss-absorption capacity.** Through successive cycles, its overall scale continues to expand.

**The prior price recovery was mostly supply-led via capacity cuts.** With tighter state subsidies and rising memory costs, TV/PC demand remains soft, making a strong upcycle unlikely; on the other hand, increasing concentration should smooth cycles and stabilize results.

Below are Dolphin Research's charts on BOE. Please refer to the figures below.

<End here\>

BOE coverage history by Dolphin Research:

Oct 30, 2025 earnings take: [BOE: Another panel price drop — can a 1% thin margin hold?](https://longportapp.cn/en/topics/35813461)

Aug 27, 2025 earnings take: [BOE: Core biz just above break-even — when will price hikes 'save the day' again?](https://longportapp.cn/en/topics/33399577)

Apr 22, 2025 earnings take: [BOE: A tailwind for panels, with tariff clouds adding uncertainty](https://longportapp.cn/en/topics/29092530)

Risk disclosure and disclaimer: [Dolphin Research Disclaimer and General Disclosure](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

### 相關股票

- [BOE VARITRONIX (00710.HK)](https://longbridge.com/zh-HK/quote/00710.HK.md)
- [BOE (000725.CN)](https://longbridge.com/zh-HK/quote/000725.CN.md)
- [BOE (200725.CN)](https://longbridge.com/zh-HK/quote/200725.CN.md)