[中报]京东方Ｂ(200725):2024年半年度报告（英文版）
原标题:京东方Ｂ:2024年半年度报告（英文版） Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. Yang Xiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department (equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete. All the Company’s directors have attended the Board meeting for the review of this Report and its summary. Any plans for the future, development strategies and other forward-looking statements mentioned in this Report and its summary shall NOT be considered as absolute promises of the Company to investors. Therefore, investors are reminded to exercise caution when making investment decisions. For further information, see “(X) Risks Facing the Company and Countermeasures” in Part III herein. The Company has no interim dividend plan, either in the form of cash or stock. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail. Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................... 1 Part II Corporate Information and Key Financial Information ................................................... 6 Part III Management Discussion and Analysis ............................................................................. 10 Part IV Corporate Governance ...................................................................................................... 28 Part V Environmental and Social Responsibility .......................................................................... 31 Part VI Significant Events ............................................................................................................... 37 Part VII Share Changes and Shareholder Information ............................................................... 49 Part VIII Preferred Shares .............................................................................................................. 57 Part IX Bonds ................................................................................................................................... 58 Part X Financial Statements ........................................................................................................... 60 Documents Available for Reference (I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head of the financial department (equivalent to financial manager); and (II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting Period. All the above mentioned documents are available at the Board Secretary’s Office of the Company. Chairman of the Board (signature): Mr. Chen Yanshun Date of the Board’s approval of this Report: 26 August 2024 Definitions
Part II Corporate Information and Key Financial Information I Corporate Information
1. Contact Information of the Company Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address, email address and other contact information of the Company in the Reporting Period. □ Applicable ? Not applicable No change occurred to the said information in the Reporting Period, which can be found in the 2023 Annual Report. 2. Media for Information Disclosure and Place where this Report is Lodged Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s periodic reports in the Reporting Period. □ Applicable ? Not applicable The website of the stock exchange, the media and other website where the Company’s periodic reports are disclosed, as well as the place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2023 Annual Report. 3. Other Information Indicate by tick mark whether any change occurred to other information in the Reporting Period. □ Applicable ? Not applicable IV Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. □ Yes ? No
1. Net Profit and Net Asset Differences under CAS and IFRS □ Applicable ? Not applicable No such differences for the Reporting Period. 2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards □ Applicable ? Not applicable No such differences for the Reporting Period. VI Exceptional Gains and Losses ? Applicable □ Not applicable Unit: RMB
No such cases for the Reporting Period. Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable ? Not applicable No such cases for the Reporting Period. Part III Management Discussion and Analysis I Principal Operations of the Company in the Reporting Period (I) About the Company In constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligent interface products and professional services for information interaction and human health. With “To Be the Most Respected Company on Earth” as its vision and, BOE always keeps in mind the mission of “Change Life with BOE Display Everywhere”, upholds the core values of “Integrity & Reliability, Dedication to Customers, Being People-oriented, Openness and Innovation”, as well as adheres to the business philosophy of “Doing the Right Thing, Innovation and Progress Seeking”. In pursuit of high-quality development, BOE has been forging ahead through innovation, promoting both reasonable growth in financial results and effective improvement in development quality, as well as accelerating the realisation of high-level synergies. Upon decades of development, BOE has grown into a world leader in the semiconductor display industry and a global innovative company in the IoT sector. At present, it has a significant number of intelligent manufacturing bases in Beijing, Hefei, Chengdu, Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos, etc., with subsidiaries in the United States, Germany, Japan, South Korea, Singapore, India, Brazil, the United Arab Emirates and other countries and regions, as well as a service system that covers major regions of the world, such as Europe, Americas, Asia, and Africa. Adhering to a “market-oriented, international, and professional” development approach, the Company keeps in mind the people- oriented principle, drives continuous innovations in an intelligent and IoT-based era, as well as provides customers with better products and more thoughtful service experience with its well-established global network and a diverse product and service system. To embrace the development trends of the industry, BOE has put in place a development architecture of "1+4+N+Ecosystem", among which: "1" represents semiconductor display, which is the core capacity and quality resources accumulated by BOE, as well as the source and origin of the Company's development. "4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, as well as the four main fronts of the Company's IoT development, namely the IoT Innovation business, the Sensor business, the MLED business and the Smart Engineering Medicine business. "N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specific focus of the Company's IoT development. “Ecosystem” is an industrial ecological development circle constructed by the Company in collaboration with many partners and by aggregating the resources of the industrial chain and ecosystem chain. (II) About the Company’s principal operations 1. The Display Devices business The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interface devices applying AMOLED, TFT-LCD, Microdisplay and other technologies, focusing on providing customers with high-quality display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR devices, etc. 2. The IoT Innovation business The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers with competitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI and big data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions for segments including smart industrial parks, smart finance, etc. 3. The Sensor business The Sensor business offers integrated design and manufacturing solutions, focuses on smart display windows, industrial sensors, innovative glass-based sensor devices, MEMS sensors and other fields, and provides customers with products and services including intelligent PDLC windows and PDLC system solutions, industrial application, consumer electronics, automotive electronic sensors and solutions, and back plates for flat panel X-ray detectors (FPXD), among others. 4. The MLED business The MLED business provides LED solutions with integrated R&D, manufacturing and marketing services. Focused on devices and solutions, this business renders LED backlight products with high quality and reliability for TVs, monitors, notebooks, vehicles, VR/AR devices, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and high contrast for segment markets of outdoor, commercial, transparent, specialized and other displays. All these products are designed and manufactured in an integrated manner. 5. The Smart Engineering Medicine business The Smart Engineering Medicine business adopts a professional service model to provide products, services and solutions in relation to medical care, smart nursing, medical-engineering integration, etc. Meanwhile, this business is committed to providing a closed loop of through-life health services with health management as the core, medical terminals as the traction, and digital hospitals and recreational communities as the support. It connects testing equipment, healthcare workers and customers through the smart health management ecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing. 6. The “N” business With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for different segments, including smart vehicle connection, smart energy, industrial IoT, UHD display, digital art, etc., which can provide customers with multi-functional and smart new experience under IoT scenarios. Particularly, in terms of smart vehicle connection, the business integrates DMS, gesture recognition, touch feedback, naked-eye 3D and other cutting-edge functions, focuses on the intelligent cockpit "HERO" innovative application scenarios that include four dimensions of healthiness, entertainment, relaxation, and office, and promote the continuous upgrading of products and solutions in the field of vehicle-mounted display and interaction. One-stop products and services for automotive intelligent upgrading are provided to bring fresh and comfortable driving experience, representing a new leading ecosystem of innovative and intelligent travel. In terms of the smart energy business, BOE focuses on zero-carbon integrated energy services. With its independently developed BOE Smart Energy Operation System ("BSEOS", or "BES" for short) as the empowering platform, it revolves around various aspects of "source-grid-load-storage-carbon." In typical energy usage scenarios such as industrial, commercial, parks, and public facilities, it offers a zero-carbon implementation path of "source decarbonization, process decarbonization, and intelligent carbon management," providing customers with comprehensive energy supply, services, and zero-carbon solutions, aiding in societal green development and ecological civilization construction. In terms of the industrial internet business, BOE is committed to providing advanced industrial software, intelligent manufacturing solutions, and product services for the pan-semiconductor industry. Leveraging over thirty years of industry experience, BOE has developed industrial software, industrial AI, plant automation, and other products and services, empowering customers in their digital transformation and continuously driving high-quality industry development. In terms of ultra-high-definition display products, BOE aims to become a global leader in ultra-high-definition digital products and solutions. With core technologies and the localization and commercial-scale application of products, the entire industry chain of ultra- high-definition front-end capture, transmission, distribution, and terminal display has entered a new development stage. BOE independently designed and built the world's first set of "8K+5G+22.2-channel" ultra-high-definition 3D sound broadcast vehicles, achieving a breakthrough in domestic 8K ultra-high-definition integrated broadcasting systems, connecting the 8K ultra-high-definition video industry content production chain, and promoting the widespread application of ultra-high-definition in visual arts, smart governance, smart transportation, and other digital scenarios. In the field of digital artworks, the business adheres to "culture + technology" cross-field integration and innovation, launches the "one million digital culture experience scenario programme" around International Standard H.629.1 for digital art display, and join hands with partners at the content-, technology- and application-ends, so as to empower culture with display products and solutions with more functions and forms and better experience. II Core Competitiveness Analysis 1. Elevating strategy and establishing a sustainable value growth system Based on years of practical exploration in the semiconductor display and Internet of Things (IoT) industry, the Company has proposed the strategy of "Empower IoT with Display" that is suitable for the high-quality development. It regards "display" as an important port for human information interaction and the first channel that shows the integration of digital and real world in the IoT era, fully leveraging its core advantage of "display" to work with ecological partners to seize the ubiquitous growth opportunities of "display" and expand the application capabilities of "display" software and hardware integration by integrating more functions, deriving more forms, and inserting more scenarios. In this way, the Company will achieve the user perception revolution of "display as terminal" in the IoT era, build an industrial ecology of "display as platform and display as system" in the intelligent digital age. Guided by the "Empower IoT with Display" strategy, and leveraging its core strengths and technological innovation capabilities, the Company continuously extends its value chain, propelling strategic elevation. By strengthening key technologies such as AI and big data, the Company has built a complete industry value creation system from display components to smart terminals, and further to system solutions. Additionally, in collaboration with industry upstream and downstream ecological partners, the Company consistently has established the strongest product competitiveness and system integration ability in the industry to meet the diversified needs of customers and achieves a transformation from "single device value creation" to "Empower IoT with Display entire industry chain value creation", from "independent company value creation" to "synergistic ecological value creation", supporting sustainable high-quality development for the Company. 2. Reinforcing industry-leading market advantage with agile response In alignment with the trends of digitalization and intelligence in industrial development, the Company remains customer-oriented, seizes market development opportunities, responds to customer needs with a keen eye, actively expands global markets based on existing businesses, engages in forward-looking layouts, consistently consolidates its leading position in the market, and explores new business growth points. In the first half of 2024, the Company continued to maintain its leading edge in the semiconductor display field. In the LCD sector, the Company retained its position as the global leader in shipments for the five major applications, with an increasing share of core clients. Meanwhile, due to its continuous optimization of its product mix, the shipment volume of its advantageous high-end flagship products remained on the rise, with large-sized products (≥ 85") achieving the world's largest shipment volume. In the flexible OLED sector, the shipment volume increased further, with a year-on-year increase of over 25%. Multiple high-end foldable products of flexible AMOLED were exclusively supplied to customers, and various brand-first products were launched. The Company persistently adheres to innovative development, with emerging achievements in various segmented markets. Overseas expansion of smart terminals accelerated, with the timely commencement of phase two of the smart terminal project in Vietnam. The global deployment capacity of products and services was further strengthened, with IoT applications and low-power terminals maintaining the global lead in segmented markets like whiteboards, splicing products, and ESL. The system solution business has been promoted continually, with the iterative upgrade of the comprehensive management platform for smart financial outlets. This platform was successfully implemented in multiple intelligent bank outlets in regions like Hunan and Guangzhou. The smart park completed the iterative upgrade of its park IoT management platform and operation service platform, transforming standard products into SaaS solutions, driving the implementation of benchmark projects in cultural and tourism parks. The competitiveness of branded products continued to improve, with the launch of the C100 all-in-one machine integrating functions like smart voice pens, AI-based conference summaries, on-device voice transcription, and large model Q&A technologies. The MLED business continued to refine its industrial chain, expanding applications for LED direct displays. Various benchmark projects were delivered in outdoor displays, commercial displays, movie screens, and creative displays using high-brightness, high-reliability, and high-contrast products. The comprehensive competitiveness of the backlight business was further enhanced, with the launch of multiple high-end products like Mini, curved, and custom-shaped products in segmented fields such as NB, MNT, and automotive, in collaboration with top customers in the industry. The MNT 31.5" product received gold prize of the Visual Grand Prix (VGP) Awards. As for the Sensor business, Beijing BOE Shengshi Technology Co., Ltd. has accessed multiple automotive consumers. Their self-developed photovoltaic wireless dimming system was the industry's first. Suzhou Sensor has successfully introduced several top consumers from industries like photovoltaics and lithium batteries. The conversion and R&D capabilities of MEMS/IPD products gradually improved, with their self-developed wafer-level lead-free TGV MEMS pressure sensor gaining recognition from top clients. The digital hospital continued to enhance its core capabilities, with a total of 760,000 outpatient visits, a 31% year-on-year increase, and 31,000 discharged patients, a 22% year-on-year increase. Operational quality significantly improved. The construction of the Chengdu Smart Medical and Elderly Care Center was completed, advancing customer sign-ups. In the Company's "N" business, BOE Varitronix Limited steadily explored overseas markets, providing top-tier services for overseas automotive projects and maintaining the industry's leading position in car display shipments. Revenue of Energy Technology doubled, upgrading three engineering contracting qualifications to level two in electricity, electromechanics, and communications. The Company received multiple software copyrights from the China Copyright Center and various honours, like being included in the list of Top 10 Typical International Innovative Applications of Energy Storage. Beijing Zhongxiangying Technology Co., Ltd. has achieved a significant improvement in device current-voltage simulation speed from minutes to under 30 seconds, with a 5% increase in simulation accuracy. The Company successfully bid for over 50 external clients, achieving breakthroughs in multiple industries such as semiconductor, film materials, and photovoltaics. UPTC continued to focus on breakthroughs in the ultra-high-definition digital track, completing industry benchmark projects such as the Liangma River Platinum Palace Lock Super 8K Digital Immersive Space, the Intel GTC (Global Trade Center) Technology Experience Center, and PIS systems at top 10 airports nationwide in cities like Xi'an, Chongqing, and Beijing. The commercial model of the nationwide live broadcast of Sudi Chunxiao in ultra-high definition for the first time was successfully implemented, maintaining a leading market share in 8K professional production and broadcasting technology services. 3. Being driven by innovation and forging excellent technological leadership abilities The Company is committed to being driven by technological innovation, constructing a comprehensive innovation ecosystem, and pragmatically advancing the rapid development of key innovation platforms in semiconductor displays, IoT innovation, and sensor devices. To adapt to the trends of the intelligent era, the Company comprehensively builds a technology architecture of "Empower IoT with Display", including device layer, terminal layer, platform layer, and application layer, creating three major technological brands: ADS Pro, f-OLED, and α-MLED. With a systematic technological innovation capability that integrates software and hardware, provides key support for the value extension of its "device - terminal - scenario". In terms of technology and products, the Company continuously upgrades its display technology, enhances OLED low-power consumption and image quality, introduces multiple AI technologies such as OLED IRC, and wins the 2024 DIC AWARD for the AI+ display device image enhancement technology solution. The Company also led the development of the industry's first industrial large model group standard (TC1WG1) and China's first General Artificial Intelligence Blue Book, officially released three national standards for touch display, flexible display performance, and testing methods. The influence of its products continues to grow, with the launch of several high-end products such as UB Cell 3.0, MNT FHD 520Hz, and a vehicle-mounted dual 17" spliced rolling screen. The 110" 16K naked-eye 3D terminal and 32" light field display each received the SID 2024 PCA (People's Choice Award), further enhancing the global influence of its technological brand. Regarding patents, the Company continuously strengthens its high-quality patent layout, with over 4,000 new patent applications in the first half of the year, including over 90% invention patents and over 30% overseas patents covering multiple countries and regions such as the United States, Europe, Japan, and Korea, spanning various fields like flexible OLEDs, sensors, artificial intelligence, and big data. The Company's technological innovation prowess has been repeatedly recognized, entering the global TOP20 in the IFI U.S. patent authorization ranking for six consecutive years and the global TOP10 in WIPO's global PCT patent application for eight consecutive years. In 2024, it ranked 12th in the first-ever released Top 100 Global Innovators by Clarivate Analytics, further demonstrating its innovation strength and technological leadership as an industry leader. 4. Constructing a sound digital governance system with lean management The Company persists in enhancing its lean management approach, focusing on strategic resource investments, and establishing a streamlined, digitalized, standardized, and process-driven operational structure to solidify its position as a global leader with enhanced competitive strengths. In terms of operational management, it keeps improving the platform-based organisational design and adheres to the operational management system of “three offices and three managements”. The Company combines the organisational mechanism of an agile front office, an intensive middle office, and an efficient back office with key measures such as strategy, procedures and performance to continuously strengthen the coordinated operation of the three offices and increase the Company’s operational efficiency. Under the “three offices and three managements” operational framework, the Company piloted a “Platform + Battle Team” model—a matrixed management style where “Battle Teams lead engagements while Platforms handle infrastructure.” This method reinforces customer- centric management, balances responsibilities and rights, fosters internal synergy, and facilitates the high-quality operation of the Company. In terms of digital transformation, the Company has fortified its digital processes, advanced online process digitization and digital operations, and continued to promote the construction of “one digital and visible BOE” with digital transformation projects as breach, so as to strengthen process efficiency improvement and value creation. Based on five major capability platforms - solution capability platform, development technology platform, data platform, secure operation platform, and cloud infrastructure platform, the Company deeply advances the construction of a digital technology foundation. It firmly centres around product and technology leadership strategies, platform strategies, standardization strategies, and steadily achieves milestones in major digital projects, progressing steadily in digital transformation. 5. Inheriting a cohesion-oriented and excellent corporate culture and value system The Company has always adhered to the original aspiration. In more than 30 years of entrepreneurship and innovation practices, the Company has developed a series of outstanding corporate culture and core values, which have inspired generations of its employees to bravely shoulder responsibilities and forge ahead. The Company always cherishes "three virtues" including gratitude, awe and transcendence, and "five spirits" including backbone, ambition, courage, morale, and confidence, steadfastly following the growth logic of "inheritance, innovation, and development," striving tirelessly to be the most respected company on earth. The Company will always uphold the management philosophy of "transparency and efficiency, vitality and empowerment," the work philosophy of "innovation and pragmatism, growth-oriented," and the talent philosophy of "cultivating outstanding individuals, energizing the masses," adhering to behavioural guidelines such as principles of "scholar wisdom, commercial thinking, and chivalrous bearing" and "observe the problem and bear the responsibility from an overall point of view, think from a different point of view and clarify the responsibilities of each position, dare to raise problems and help solve them", guiding all BOE employees to work and develop their career, inherit and promote excellent corporate culture and values, and assist the Company in achieving high-quality development. III Analysis of Core Businesses Overview: See contents under the heading “I Principal Operations of the Company in the Reporting Period” above. Year-on-year changes in key financial data: Unit: RMB |
