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Zhang Yu, vice president of BOE, said that BOE's profit is the inevitable result of capacity expansion and technology accumulation to a certain stage. Zhang Yu expects that the global market share of China's panel will reach 10% to 12% in 2013, with BOE 6% to 8%. In the future, the global market share of China's panel will increase to 15% to 20%, and BOE's global market share will increase to 10% to 12% in 2014.
BOE's total operating revenue in 2012 was 25.76 billion yuan, a year-on-year increase of 102.18%; net profit was 250 million yuan, although it decreased by 55.43% year-on-year, but its operating results were significantly improved year-on-year, excluding the factors of investment income in 2011. In the first quarter of 2013, BOE is expected to make a profit of 200 million to 250 million yuan, compared with a loss of 490 million yuan in the same period last year.
The scale effect and rationalization of product structure are the main reasons for BOE's loss. After the launch of the 8.5-generation line in Beijing in 2012, BOE has four lines, and the space for product structure adjustment is more abundant. “Technology accumulation is also very important, otherwise it will not keep up with the pace of product upgrades, and there will be no profitability in production capacity.†Zhang Yu said that this year, BOE has added large-size panel products from 55 inches to 110 inches, and launched the first time. The popular UHD (Ultra High Definition) panel.
The rebound in the panel industry is an external cause. Zhang Yu believes that the development of mobile Internet has stimulated the demand for tablet PCs and smart phones, diverting the production capacity of LCD panels; the application of UHD technology has also made LCD TVs larger and larger, increasing the demand for panels; June 2012 The subsidy policy for the implementation of energy-saving home appliances in China has also promoted the recovery of the domestic LCD TV market. The combination of multiple factors has made BOE and Huaxing Optoelectronics two domestic 8.5-generation lines profitable last year.
In addition to horizontal capacity expansion and regional layout, BOE is also advancing in vertical technology, and has a layout in new semiconductor display industries such as LTPS (low temperature polysilicon), Oxide-TFT (metal oxide), and AMOLED (organic light emitting diode). The newly built 8.5-generation lines in Hefei and Chongqing have applied Oxide-TFT technology and can produce OGS touch screens.
Zhang Yu revealed that the Hefei 8.5-generation line will be put into operation in the fourth quarter of 2013. The equipment is currently being installed and commissioned; the Chongqing 8.5-generation line will start construction in the third quarter of 2013 and is expected to be put into operation in 2015; the Ordos 5.5-generation AMOLED production line will also be Launched at the end of 2013, the main products are 5-inch and 7-inch panels.
Outside the panel industry, Zhang Yu said that BOE is still cultivating the emerging business of LED lighting. 
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BOE's two new panel lines will be put into production in 2013
BOE (000725.SZ) has reversed its performance since the second half of last year and has achieved operating profit for three consecutive quarters. The 20th anniversary of this year, BOE will usher in the production of Hefei 8.5-generation LCD panel line and Erdos 5.5-generation AMOLED production line.