BOE has another success with $2B Investment
On April 18, the groundbreaking ceremony for the second phase of BOE’s Vietnam smart terminal project was held in Phu My City, Battit-Vung Tau Province, Vietnam.
Image source: BOE
At the event, BOE Chairman Chen Yanshun said that Vietnam is a strategic location for BOE’s overseas layout, and the smart terminal business is an important focus of BOE’s IoT transformation. In the future, it will rely on the Vietnam Phase II project to continuously strengthen the global industrial layout and service optimization and upgrade and provide global customers with more competitive end products and high-quality and efficient services.
It is understood that BOE has developed into a global leader in the semiconductor display field and an innovative enterprise in the Internet of Things field. Currently, the company has multiple intelligent manufacturing bases in Beijing, Hefei, Chengdu, Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos and other places, with subsidiaries located in the United States, Germany, Japan, South Korea, Singapore, India, Vietnam, Mexico, and Brazil. , the United Arab Emirates and other countries and regions, and the service system covers many regions around the world such as Europe, the United States, Asia, and Africa.
BOE has built and operated the first phase of the project in Vietnam by renting factories and building its own production lines. The second phase of the project started this time is in the industrial circle of Ho Chi Minh City, Vietnam, with a total investment of 2.02 billion yuan. It will build a smart factory with an annual output of 3 million TVs, 7 million monitors, and 40 million electronic paper and other smart terminals. It is expected to be completed in 2025 mass production.
Image source: BOE
The completion of the second phase of the project will help BOE to open the “screen-module-terminal” industrial chain and build core competitive advantages based on scale effects and supply chain synergy. It can also effectively meet the demand for TVs, monitors and other terminals in the Asia-Pacific, EU and North American markets. The demand for products has accelerated BOE’s global expansion.
At the groundbreaking ceremony, Cheng Gang, BOE’s senior vice president and head of smart terminal business, also announced the Smart GOAL strategy for the smart terminal business.
It is reported that Smart represents the reconstruction of next-generation terminals through “Smart & AI”; G represents “Global Launch & Service”, global intelligent manufacturing from China to Vietnam and Mexico, providing customers with global product launch and services; O represents ” One-stop”, providing customers with one-stop solutions by integrating R&D, manufacturing, quality and delivery into “screen-terminal-solution”; A stands for “Agile & Efficient”, providing customers with small batches and customization , flexible and agile delivery; L stands for “Low-carbon & Green”. Through innovative low-carbon technologies and the introduction of more than 200 green suppliers, we provide customers with green, low-carbon, and environmentally friendly end products.
Image source: BOE
In terms of performance, in 2023, BOE achieved total operating income of 174.543 billion yuan and net profit attributable to the parent company of 2.547 billion yuan.
Among them, the Internet of Things innovation business achieved revenue of approximately 38.900 billion yuan, a year-on-year increase of approximately 13.30%. It is reported that the IoT innovation business adopts a system solution design and integrated manufacturing model to provide customers with competitive smart terminal products in the fields of TVs, monitors, laptops, tablets, low-power consumption, IoT, 3D displays, etc., and uses artificial intelligence to With intelligence and big data as technical support, we focus on products and services that integrate software and hardware, and provide overall solutions for IoT subdivisions such as smart parks and smart finance.
Regarding the performance of the smart terminal business in the Internet of Things innovation business in 2023, BOE pointed out:
The quality of TV terminal operations continues to improve, with profits increasing by 105% year-on-year; MNT terminal shipments ranked among the top three in the world for the first time; TPC and NB terminal businesses have rapidly improved, with revenue increasing by approximately 70% and 50% year-on-year respectively; Low-power EPD strengthens the industrial chain layout and forms an integrated manufacturing service capability of “ESL-innovative product module-complete machine”; IoT terminals continue to develop market segments, with market segments such as splicing and advertising machines ranking first in global shipments, and whiteboard device shipments ranking first in the world for the first time; MNT brand products equipped with the company’s 3D terminal was released in September 2023.
In 2024, BOE expects to achieve a net profit attributable to its parent company of 800 million to 1 billion yuan in the first quarter, a year-on-year increase of 223% to 304%.