Display panel prices continue to fall, BOE’s profit in 2022 will drop by 70%

According to news from IT House on January 30, BOE Technology Group Co., Ltd. released the 2022 annual performance forecast today. It is estimated that the net profit attributable to shareholders of listed companies in 2022 will be 7.5 billion to 7.7 billion yuan, a decrease of 70 billion yuan from the same period last year. %-71%, and the net loss after deducting non-recurring gains and losses is 1.8 billion to 2 billion yuan.

Regarding the reason for the sharp drop in net profit, BOE stated that in 2022, due to frequent geopolitical risks, global inflation, and the impact of the epidemic, global economic growth will be weak, consumption will continue to be weak, and consumer electronics terminal brand customers will be particularly affected. The display industry continued its downward trend in the second half of 2021, and the industry performance continued to decline throughout the year.

In addition, due to the significant decline in terminal consumer demand, the conservative procurement strategies of downstream brand customers, and the low-price competition in the industry, the supply and demand of semiconductor display products will be out of balance in 2022. The prices of mainstream products will continue to decline, and the prices of some products will drop significantly. At the same time, some of the company’s production lines are still facing high depreciation pressure, and the performance of OLED and other businesses continues to be under pressure.

BOE said that when the strategic goals were basically achieved, the company comprehensively considered various factors such as the domestic and foreign environment and its own strategic goals, and obtained part of the income by selling part of the SES shares it held, recovering part of the overseas investment.

IT Home learned that BOE will develop three major display technology brands: ADS Pro, f-OLED, and α-MLED in 2022. As of December 2022, BOE has accumulated more than 80,000 independent patent applications, ranking among the top patent authorizations in the United States. It ranks 11th in the world and ranks among the global TOP20 for the fifth consecutive year.