BOE and Inventronics to Report Impressive Earnings for 2021, as BOE’s Income Soars Fourfold

On January 20, BOE and Inventronics (Hangzhou) announced their estimated earnings results for 2021. Thanks to the industrial boom, BOE saw a big jump in revenue from the year before. Despite the gross margin hit in 2H21 caused by price fluctuations of raw materials, Inventronics still enjoyed a YoY increase in its net income.

BOE: Earnings Hit Record High for 2021

BOE estimates its revenue for 2021 to be 215–220 billion yuan, 59%–62% up on a year earlier. The net income attributable to shareholders is likely to range between 25.7 billion and 26 billion yuan, a record-high YoY growth rate of 410%–416%.

BOE specified that the semiconductor display industry thrived in 2021 compared with the previous year regardless of the demand changes and overall structural pullback of product prices in Q1–Q3. Therefore, the Chinese electronics manufacturer is expected to deliver a stronger performance than the year before.

In response to structural product price pullbacks in the LCD sector, BOE—thanks to its great products, customer base as well as cutting-edge technologies and productivity—actively adjusted its product mix and maintained desirable profitability.

Additionally, BOE’s OLED shipments skyrocketed because of the company’s competitive advantages in technologies, production capacity and diverse, close partnerships with customers. In December 2021, the manufacturer’s shipments exceeded the 10 million mark for the first time.

Impressively, BOE advanced technologies related to OLED, MLED and many other sectors. In late 2021, it established the first series of technological brands and logos of semiconductor displays, namely ADS PRO (LCD), f-OLED (OLED) and α-MLED (a solution for new glass-based LED display systems).

Regarding OLED, BOE announced a foldable OLED notebook monitor, under-display camera technology for flexible displays and an f-OLED screen engineered with advanced flexible display technology. Moreover, the display maker released a 55-inch 4K AMQLED product and gaming monitor featuring an ultra-high refresh rate of 480Hz.

As for MLED, the leading manufacturer unveiled the world’s first glass-based AM Mini LED TV, 75- and 86-inch HDR 8K displays with Mini LED backlights and a glass-based P0.9 Mini LED display.

In 2021, BOE proposed the “IoT for Screen” strategy, aiming to achieve IoT transformation with rapid development of its “1+4+N” businesses. In the coming years, BOE plans to achieve long-term, high quality development through technological innovation, management innovation and digitalized revolution.

A 5%-25% Increase in Net Income for Inventronics

Inventronics estimates that it will generate 170–202 million yuan in net income attributable to shareholders for 2021, a growth rate of 5%–25% YoY.

Specializing in the research, development, production, sales of LED drivers and relevant technical services, Inventronics mainly provides mid- to high-power LED drivers with high specifications. Its products serve for both conventional applications (e.g., road, industrial and landscape lighting) and emerging applications including horticultural, sports, explosion-proof, fishing, security monitoring, UV LED lighting.

In its report, Inventronics specified that it has constantly expanded businesses in China and abroad using global strategies, strengthened operations management and actively mitigated the effects of price increases in major raw materials. Therefore, the company witnessed a YoY increase in revenue.

Inventronics started to offer restricted stock incentives for its employees in 2021, thereby improving team cohesiveness and morale. The report estimated a YoY increase of 12 million yuan in expenditure on share amortization, consequently affecting the resultant net income and YoY performance.

Additionally, the company revealed that the fair value of investment projects affected its net income to a certain extent. Specifically, non-recurring gains and losses worth about 22.4 million yuan—mainly those derived from fair value changes and subsidiaries from the government—affected the resultant net income.

In 1H21, the horticultural market witnessed an increase in demand, while the

Middle East regions affected by the pandemic began resuming local streetlight construction and government bidding projects, enabling Inventronics to achieve a YoY growth rate of 381% regarding its LED driver revenue. Its consolidated revenue totaled 662 million yuan, up 61.47% from the same time a year ago; the net income attributable to shareholders soared by 106.53% YoY to 81.8353 million yuan, with a 33.61% increase in gross margin. However, the international commodity market subsequently saw price jitters during the second half of 2021, leading to fluctuations of raw material prices that dragged down the company’s 2H21 gross margin.

(Compiled by Irving from LEDinside; credit of the first image: BOE)

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