IT News from October 30th: BOE today released its reports for the first three quarters of 2026 (January to September 2026) and the third quarter of 2026 (July to September 2026):
For the first three quarters, cumulative figures show that total operating revenue was 151.809 billion yuan, a year-on-year decrease of 1.77%; gross profit was 23.181 billion yuan; gross profit margin was 15.27%; net profit attributable to the parent company was 4.251 billion yuan, a year-on-year decrease of 7.61%; non-recurring net profit was 3.04 billion yuan, a year-on-year decrease of 4.37%; operating cash flow was 32.212 billion yuan, a year-on-year decrease of 12.41%; weighted average return on net assets was 3.14%; basic earnings per share were 0.11 yuan; diluted earnings per share were 0.11 yuan; and the asset-liability ratio was 53.26%.
For the third quarter alone, the total operating revenue was 48.677 billion yuan, a year-on-year decrease of 8.62%; net profit attributable to the parent company was -996 million yuan, a year-on-year decrease of 173.55%; non-recurring net profit was 32.0598 million yuan, a year-on-year decrease of 96.43%; weighted average return on net assets was -0.74%; basic earnings per share were -0.03 yuan; diluted earnings per share were -0.03 yuan.
According to the interpretation in AI, BOE Technology's performance in the first three quarters of this year fell short of the consistent expectations of market analysts, and with a shift from profit to loss in the third quarter alone, the overall performance was weaker than anticipated.
The article also states that BOE A is a leading global semiconductor display company, with its core business covering LCD, flexible AMOLED display panels. At the same time, it is investing in innovative businesses such as the Internet of Things, sensing, MLED, and smart healthcare engineering. The shipment volume of its LCD mainstream applications continues to rank first globally, while the shipment volume of its flexible OLED products ranks first in China and second in the world.
Regarding operational changes, the article mentions that in the LCD business segment, in the third quarter, global shipments of small and medium-sized IT displays such as laptops and tablets declined by more than double digits year-on-year, while shipments of medium and large-sized display products like televisions and desktop monitors decreased by about 20% month-on-month. The company's LCD small and medium-sized business saw a decline in profit contribution, whereas the profit from medium and large-sized products remained relatively stable. Moving forward, the company will advance technological upgrades in areas such as RGBX, UB Cell, Super Oxide, and natural light displays.
In terms of the flexible AMOLED business, the article states that in the third quarter, domestic AMOLED manufacturers' shipments decreased by over 20% year-on-year and by about 10% month-on-month. Coupled with the continuous decline in product prices, the company's business is under significant pressure. In the future, the company will optimize its product structure by increasing the proportion of high-end products such as LTPO.
In terms of changes in the income statement, the article states that financial expenses increased by 99% year-on-year in the first three quarters, mainly due to an increase in net exchange losses; investment income increased by 82% year-on-year, primarily from increased investment income recognized from associated companies; and gains from changes in fair value increased by 455% year-on-year, stemming from changes in the fair value of financial assets held.
In terms of shareholder returns and equity changes, as of September 30, 2026, the company has repurchased a total of 94.3926 million A shares for a total payment of 550 million yuan; it has also repurchased 88.6867 million B shares for a total payment of 411 million yuan, continuously implementing its shareholder return plan.
The controlling shareholder, Beijing Electric Control, has accumulated an increase in holdings of 186.12 million A-shares of the company, with an increase amount of 1 billion yuan. The increase plan has been fully implemented. The State-owned Assets Supervision and Administration Commission of Beijing has transferred 406.3 million A-shares held by Beijing State-owned Assets Management to Beijing Electric Control without compensation. After the transfer is completed, Beijing Electric Control will directly hold 14.43% of the company's total share capital, and its voting rights ratio will increase to 16.37%. It remains the controlling shareholder and actual controller of the company.
The article also mentions that as of now, the company's total market value is approximately 165.2 billion yuan, which is about 0.8 times that of PS ( TTM ). Twenty-one institutions unanimously predict that the average annual net profit attributable to the parent company in 2026 will be around 8.482 billion yuan. In the first three quarters, the company has already achieved a net profit attributable to the parent company of 4.251 billion yuan, which is about 50% of the annual forecast. In the short term, the cost pressures caused by storage shortages and the weak demand for consumer electronics are the main factors suppressing current performance. In the medium to long term, the company's leading position in the LCD field, the advancement of its OLED high-end products, new business layouts such as glass-based advanced packaging, and calcium titanate, as well as continuous share repurchases and increases in holdings, still constitute a support for its long-term value. It will be necessary to observe the pace of industry demand recovery and the progress of new business expansion in the future.
