EqualOcean news, on August 28, display manufacturer BOE released its semi-annual performance report. in the first half of 2023, the company realized revenue of 80.178 billion yuan, down 12.48% year on year; net profit attributable to the mother of 736 million yuan, down 88.84% year on year.
In the first half of 2023, BOE continued to hold the leading market position in the display field, and ranked first in the world in terms of shipments in the LCD display field as a whole and in the five mainstream applications. At the same time, the product structure continued to be optimized, the advantage of high-end flagship products to maintain the breakthrough, oversized (≥ 85") products to achieve the world's first shipments; in the field of OLED, flexible AMOLED shipments increased significantly, half-year shipments exceeded 50 million, an increase of nearly 80% year on year.
In terms of patents, over 3,900 new patent applications were filed in the first half of the year, of which over 90% were invention patents and over 30% were overseas patents; over 2,100 patent applications were filed in innovative fields such as flexible OLEDs, sensing and artificial intelligence, accounting for over 50% of the total; the Company was ranked 11th in the world in the IFI Global Ranking of U. In the WIPO (World Intellectual Property Organization) Global Ranking of PCT Patent Applications, published in February 2023, the Company was ranked 7th in the world and has been ranked among the top 10 global PCT patent applications for 7 consecutive years.
Overall, BOE's financial report is not so good. Although revenue and profit started to recover in this quarter, the two figures are still not as good as market expectations. BOE's revenue in this quarter was 42.2 billion yuan, up 2.6% year on year, and the gross profit margin in this quarter was 11%, down 4.4 pct year on year. the change in revenue and gross profit margin is mainly affected by the panel price. Combined with the market price changes in the ring, Dolphin believes that this quarter's shipments did not have a significant increase in the ring. The company's net profit of 490 million yuan in the quarter, down 77.9% year-on-year, the company returned to near the break-even line; although the current product price recovery, but mainly manufacturers take the initiative to raise prices, rather than due to strong downstream demand. Therefore, the overall pulling power of customers is still insufficient.
Since BOE's sales end and gross margins of the year-on-year decline, mainly due to falling panel prices. And now the gross margin continues to pick up, the current panel prices, according to Witsview late August offer, 65-inch / 55-inch / 43-inch / 32-inch price of 168 U.S. dollars / 125 U.S. dollars / 66 U.S. dollars / 38 U.S. dollars, respectively. Panel prices for all sizes have increased by more than 40% from the low point. With the increase in panel prices, the Company's revenues and gross margins have recovered to some extent.
However, in the case of all sizes of panels, the quarterly average price increased by 20%, while the company's revenue increased by only 11% sequentially. Prices rose while shipments did not improve significantly. This suggests that this price increase is not due to a demand-side increase, but to a supply-side contraction and higher prices.
In the case of the demand side has not yet significantly warmed up, the sustainability of the current round of price increases is still doubtful. Of course, the previous panel prices broke the cash cost, the business side has a strong demand for improvement. And now in the price to get some repair, the price side of the further rise also need to be driven by downstream demand.