### Overview BOE Technology Group Co., Ltd. is a leading provider of display technologies and smart systems. This report focuses on their Q1 2025 financial performance, encapsulating key operational changes, financial trends, and management insights derived from their recent investor relations activities. ### Key Financials In Q1 2025, BOE maintained a robust operational capacity with an LCD industry utilization rate exceeding 80% as of November 2024. Notably, LCD TV panel prices saw an increase at the start of 2025, while the pricing for IT products exhibited moderate growth. An anticipated depreciation of approximately 38 billion yuan for 2024 marks a significant rise from 2023, primarily due to the maturation of existing high-generation lines and the transition of OLED lines to fixed assets. In terms of revenue structure, the display device business segments include 26% from TV products, 34% from IT products, 13% from LCD mobile and other categories, and 27% from OLED products, indicating a balanced diversification in their income sources.

### Management Commentary Management's tone reflects cautious optimism, emphasizing the shift towards a demand-driven production strategy that aims to restore healthy inventory levels across the industry. The expedited progress in the Chengdu 8.6 generation AMOLED production line suggests confidence in the company's transition to high-value offerings, showcasing their commitment to enhancing product quality and technological capabilities.

### Trends and Drivers Key drivers of BOE's performance include a paradigm shift in industry dynamics focusing on high value and technology rather than mere scale. The recovery of LCD utilization rates signals an uptick in demand; however, management anticipates potential fluctuations in the second quarter stemming from seasonal demand variations. The successful commencement of new production lines is also a crucial factor for sustaining growth in their high-end display segments.

### Risks and Outlook Despite the positive outlook domestically, BOE faces challenges from an uncertain international trade environment that could hinder product demand and pricing structures. The company remains open to industry consolidation, although the potential risks associated with integration costs and market dynamics require monitoring. Ensuring stable operations amidst external pressures will be vital for maintaining future profitability.

### Conclusion In summary, BOE Technology Group is navigating a transformative phase characterized by strategic shifts towards high-value production, bolstered by positive operational metrics. While the outlook appears solid due to improved utilization rates and pricing stability, external trade uncertainties and the complexities of industry consolidation pose notable challenges that stakeholders should watch closely in the coming quarters.