BOE announced on the evening of May 20th the signing of a memorandum of cooperation with Corning Inc. The two parties will collaborate in key areas such as glass based encapsulation loading plates, perovskite glass substrates, and optical interconnect related applications to jointly explore technologies and market opportunities with commercial potential.

The breakthrough of industry giants driven by popularity

In the A-share market, huge transactions often correspond to sky high traffic, and naturally various voices and interpretations flood in. But if we extend our time, broaden our perspective, and focus on BOE's own business development, the cooperation between the company and Corning is actually more like an industrial giant building another industrial sector blueprint for its own development.

In fact, as early as 2021, the company proposed the "Screen IoT" strategy, and in 2024, it innovatively released the "Nth Curve" theory and advanced in the fields of perovskite photovoltaics, glass based packaging, etc., further promoting the cross domain reuse of core technologies.

Chen Yanshun, the chairman of the company, once pointed out in public that "Screen IoT" is not only a scenario based extension of screen technology, but also an ecological strategy in the era of IoT; The "Nth curve" is the theoretical basis for enterprises to cross industry cycles and achieve diversified and sustainable growth. The two have jointly built a strategic system for BOE from "technology leadership" to "ecological construction".

He stated that "in the context of global competition, Chinese companies must establish a continuous evolution capability based on strategic determination and guided by system theory - they must always have ideals and feelings when doing business, both looking up at the stars and being down-to-earth." And this cooperation with Corning is BOE's deep practice of the "Nth curve" strategy. The cooperation areas between the two parties involve glass based packaging loading plates, perovskites, optical interconnects, etc., which may seem to coincide with market concerns, but in fact, it is the inevitable development logic of BOE based on its own.

Glass based packaging is now fully explored by the market, but for BOE, the layout of this business can be traced back to two years ago, which can be described as forward-looking. According to the announcement, BOE will invest 993 million yuan in 2024 to build a glass based sealed loading plate test line. At present, samples have been sent to some domestic customers, and some customers have passed concept certification and entered the technical testing stage.

BOE continues to make efforts in the Micro LED field. Subsidiary Huacan Optoelectronics turned losses into profits in the first quarter of this year, and BOE fully subscribed as a major shareholder in its new round of 1 billion yuan private placement plan. BOE's actions demonstrate the company's full recognition of the future development of Huacan Optoelectronics. After the completion of this round of private placement, BOE's shareholding in Huacan Optoelectronics will increase from the current 22.92% to 27.31%, further strengthening its control.

While continuously expanding into new businesses, the company has continued to innovate in traditional screen business, bringing many industry-leading high-end products. In the LCD field, UB Cell, a high-end LCD solution, will be launched in 2025 to lead the upgrade of TV products, and the world's first 85 inch UB Cell 5.0 RGBX Ultra TV will be launched, setting a new color benchmark for high-end large-size displays. In the field of OLED, the company collaborates with customers to create "ultra wide color gamut exquisite screens". The company's mirror like "seamless" OLED flexible display truly achieves "dual true seamless" tactile and bright visual effects through dual innovation in structure and materials.

On the one hand, BOE has demonstrated its systematic ability to transform cutting-edge technologies into industrial value, and on the other hand, based on industrial accumulation, it has summarized a set of strategic evolution theories that have been tested in practice. Whether it is traditional business or emerging industries, the company is steadily advancing along its established strategic track. From a fundamental perspective, this round of market trend appears to be a sentiment repair driven by new stories to some extent. Essentially, it can be understood as high-quality fundamentals that have been undervalued for a long time, catalyzed by new business to achieve value regression (note: stock price performance is influenced by multiple factors, and the above judgment does not constitute a guarantee of future trends). Unlike most of the hype in the market that lacks performance and chassis, BOE's growth expectations are supported by solid operating data and abundant cash flow. The company has also maintained a high level of strategic determination and business promotion momentum.

After the cycle turned around, the financial situation improved significantly, and the strategy was steadily promoted under the escort of cash flow

When it comes to solid business data and abundant cash flow, the company has indeed produced impressive results.

BOE disclosed its 2025 annual report on April 1st, stating that the company achieved a total operating revenue of 204.59 billion yuan, a year-on-year increase of 3.13%. After four years of hard work, "Screen King" has smoothed out the "peaks and valleys" caused by industry cycle fluctuations, and its revenue has returned to 200 billion yuan. On the profit side, the company achieved a net profit attributable to shareholders of the listed company of 5.857 billion yuan in 2025, a year-on-year increase of 10.03%, and a net profit after deducting non recurring expenses of 4.23 billion yuan, a year-on-year increase of 10.25%. The profit growth rate was significantly higher than the revenue growth rate of 3.13%.

Subsequently, on the evening of April 29th, the company officially disclosed its 2026 first quarter report, achieving a revenue of 51 billion yuan, a year-on-year increase of 0.80%; The net profit attributable to the parent company was 1.707 billion yuan, a year-on-year increase of 5.78%. The company continues the trend since 2025, with profit growth rate continuing to be higher than revenue growth rate. Based on existing data, it can be observed that the company may have entered a period of accelerated profit release (note: cycle judgment is based on historical financial data).

Behind the accelerated improvement of profits is the positive improvement of the entire financial system after the "double peak" of the company's capital expenditure and asset depreciation. At the production line level, this profit leap can be clearly felt. According to the annual report data recently disclosed by BOE, Chongqing BOE will achieve a net profit of 3.208 billion yuan in 2025, further increasing from 2.707 billion yuan in 2024; Fuzhou BOE, with the completion of depreciation on its production line, will achieve a net profit of 2.041 billion yuan in 2025, making a significant contribution to the overall performance of the company. With the reduction of depreciation pressure and the weakening of capital expenditure intensity, the company's balance sheet and cash flow statement have also undergone strong repairs. In the past three years, BOE has consistently had over 70 billion yuan in monetary funds in its accounts. In 2024 and 2025, the company achieved net operating cash flows of 47.7 billion yuan and 48.8 billion yuan, respectively. In the first quarter of 2026, the company continued to maintain a good momentum, achieving a net operating cash inflow of 12.3 billion yuan.

In addition to the business expansion mentioned earlier, with strong cash flow support, the company has also increased its efforts in investor returns. According to the company's "Shareholder Return Plan for the Next Three Years (2025-2027)", BOE promises that the annual cash dividend ratio will not be less than 35% of the net profit attributable to the parent company for the current year, and the total amount of funds used for repurchase and cancellation each year will not be less than 1.5 billion yuan. After completing the transformation from a follower to a leader in the industry, the company has delivered a solid performance in the market with real money and silver.

When huge transactions bring attention, we need to see the core truth even more: after years of capacity clearing, cyclical bottoming out, and financial iteration, BOE has gradually shed the old label of "cyclical huge losses and continuous burning of money". At present, the company is facing a dual turning point of depreciation peaking and falling, and capital expenditure significantly shrinking. Free cash flow is experiencing explosive recovery, and the operating status has entered the most stable and cash reserve abundant stage in history. All the imaginative space for new businesses is built on this solid foundation, and it is by no means groundless hype.

And the capital market will eventually return to common sense: impressive technological cooperation, cutting-edge track layout, and ultimately competing for cash flow and strategic determination. The super strong hematopoietic ability that BOE can see and touch is its core confidence in crossing industry cycles and leveraging future new growth.

(This article is based on public information and company announcements, and is only a fundamental study of the industry and the company. It does not constitute any investment advice.)