Display panel giants frequently take capital actions: BOE intensively repurchases shares, TCL Technology undergoes major restructuring. What kind of upheaval is the industry facing?

The Daily Economic News Reporter: Yan Fengfeng The Daily Economic News Editor: Wu Yongjiu

The two giants in the display panel industry have recently been active with frequent capital moves: BOE has announced three share repurchase plans in quick succession, marking the fifth move in a year and a half; TCL Technology has proposed a nearly 10 billion yuan private placement and acquisition plan, aiming for full control of core assets. The Daily Economic News reporter found that amid the frequent capital actions by industry giants, the industry is also experiencing some changes, such as rising product prices, increased industry concentration, and peak depreciation of leading companies.

BOE has issued three repurchase plans in a year and a half, with a total of five repurchase plans announced

Leading display panel manufacturer BOE Technology Group Co., Ltd. (hereinafter: BOE) has been very active in the capital market recently, launching three share repurchase plans on March 31.

The first is an A-share repurchase and cancellation plan. BOE intends to repurchase A-shares worth no more than 6.00 yuan per share, totaling 500 million to 1 billion yuan, with an expected repurchase ratio of 0.22% to 0.43%. The purpose of the repurchase is for cancellation and reduction of the company’s registered capital.

The second is a B-share repurchase and cancellation plan. The company plans to repurchase B-shares worth no more than 4.81 Hong Kong dollars per share, totaling 500 million to 1 billion Hong Kong dollars, with an expected repurchase ratio of 0.27% to 0.54%. The purpose is for cancellation and reduction of registered capital.

The third is an A-share equity incentive repurchase plan. BOE plans to repurchase no more than 1.05 billion shares, not less than 600 million shares, at a price not exceeding 6.00 yuan per share, with a total repurchase amount of 3.6 billion to 6.3 billion yuan. The purpose is to implement an equity incentive plan.

In fact, this is not BOE’s first repurchase plan in a year and a half. The company previously announced a repurchase plan in April 2025, completed between June 30, 2025, and December 31, 2025. This plan spent 1.5 billion yuan, repurchasing 0.9877% of the company’s total shares at a price range of 3.83 to 4.26 yuan, with all repurchased shares canceled by January 2026.

The company also announced a repurchase plan in October 2024, completed from November 22, 2024, to December 31, 2024. This plan spent 1 billion yuan, repurchasing 0.61% of the total shares at a price range of 4.22 to 4.46 yuan. The repurchased shares were originally used for implementing the company’s equity incentive plan but were later changed in April 2025 to be canceled and reduce registered capital, which was completed in May 2025.

Reviewing BOE’s repurchase history, it has announced five repurchase plans over the past year and a half, with a total repurchase amount of 2.5 billion yuan. Despite frequent repurchases and large amounts, the company’s stock price has generally oscillated in the bottom range of 3.6 to 4.6 yuan over the past three years. After BOE announced the repurchase plan on March 31, its A-share price rose by 2.56% on April 1, closing at 4.01 yuan per share.

Alongside BOE’s repurchase plans, its 2025 annual report was also disclosed. In 2025, BOE achieved operating revenue of 204.59B yuan, a year-on-year increase of 3.13%; net profit attributable to parent was 5.86B yuan, up 10.03% year-on-year.

Another industry giant, TCL Technology, plans a large private placement acquisition

According to public information, BOE is one of the leading companies in the display panel industry. Currently, Chinese panel companies hold over 70% of the global LCD (liquid crystal display) market share, forming a leading camp represented by BOE, TCL Huaxing, Shentianma A, and Hisense.

Notably, another major listed company in the display panel industry, TCL Technology, has also recently announced significant capital moves.

On March 30, 2026, TCL Technology issued a major announcement that it plans to acquire a 45% stake in Guangzhou Huaxing Optoelectronics Semiconductor Display Technology Co., Ltd. (hereinafter: Guangzhou Huaxing) through issuing shares and paying cash, at a valuation of 4.66B yuan. The issuance of shares will be valued at 4.66B yuan, and the cash payment will also be 8.25B yuan, with the cash portion to be funded through a fundraising. After the transaction, TCL Technology will achieve full control of Guangzhou Huaxing.

Founded in December 2020, Guangzhou Huaxing is an important semiconductor display business entity under TCL Technology. Financial data shows that in 2024 and 2025, Guangzhou Huaxing’s revenue was 16.04B yuan and 1.16B yuan, respectively, with net profits of 274 million yuan and 184.21B yuan. TCL Technology is Guangzhou Huaxing’s main customer, with nearly 90% of its revenue in 2025 coming from TCL.

TCL Technology also achieved solid performance growth in 2025. Its operating revenue reached 4.52B yuan, up 11.67% year-on-year; net profit attributable to parent was 4.517 billion yuan, an increase of 188.78%.

Industry concentration continues to rise, and TV panel prices saw moderate increases in the first quarter

So, against the backdrop of frequent capital moves by the two industry giants, what is the current development status of the display panel industry?

The Daily Economic News reporter noted that several leading manufacturers previously stated that LCD (liquid crystal display) remains the mainstream technology in the medium to long term. For example, BOE’s chairman said in August 2025 that the display industry is entering a rebalancing period, industry patterns are being reshaped, and LCD will still be the main application technology for the next decade. China’s OLED (organic light-emitting diode) screen industry is also rapidly developing.

Regarding future industry scale, Dongguan Securities’ research report indicates that the display panel market size continues to grow. According to China Business Industry Research Institute, from 2020 to 2024, the global display panel market expanded from 1,041.1 billion yuan to 1,327.2 billion yuan, with a compound annual growth rate of 6.3%. It is expected that in 2025, the global display panel market will reach 1,412.4 billion yuan.

Huayuan Securities’ research report shows that on the supply side, global LCD panel capacity is increasingly concentrated domestically, with industry concentration continuing to rise. As of April 1, 2025, LGD and TCL completed the transfer of their Guangzhou LCD factories. Since then, aside from Chinese manufacturers, only one Japanese factory remains in the global LCD TV panel industry. As overseas supply continues to be phased out in 2025, capacity further concentrates domestically, and the industry’s oligopoly pattern begins to take shape, with panel prices generally stable.

On the demand side, Huayuan Securities believes that LCD panels are further developing toward larger sizes. According to Omdia’s forecast, in 2025, shipments of large-size LCD displays are expected to increase by 2.4% year-on-year to 875.5 million units, with China accounting for nearly 90% of the market. Although LCD TV display shipments are expected to decline by 2.1% in 2025, the shipment area may increase by 4.9%, reflecting a trend toward larger panel sizes.

Notably, in the first quarter of this year, TV panel prices showed a moderate upward trend. Galaxy Securities’ research report indicates that by March 2026, prices for small and medium-sized TV panels increased by $1, while large and extra-large panels increased by $2-3. The main reasons include demand pre-stocking, World Cup event preparations, and competition among leading brands, which increased panel order volumes.

According to Guojin Securities, panel demand supported by domestic “618 shopping festival” pre-stocking after the Spring Festival, with brand manufacturers maintaining a positive procurement attitude; supply-side leading panel manufacturers’ capacity control strategies continued to be implemented, industry output declined year-on-year, and supply-demand relations gradually tightened, supporting panel price increases.

It is also noteworthy that the display industry is undergoing new changes. Guosheng Securities’ report states that China’s LCD market share has exceeded 70%, with existing production lines nearing saturation. New capacity is mainly concentrated in OLED technology: as end-user demand for display experience continues to upgrade, OLED shipments are growing rapidly. Dongguan Securities believes OLED has become the core investment focus for global display devices. A recent report by Counterpoint Research forecasts that in 2026, global display device investment will grow by 32% year-on-year, with OLED growth reaching 68%, and OLED equipment investment accounting for over 80%, while LCD investment continues to shrink to 14%.

Peak depreciation for leading companies has passed

So, how do industry leaders view the current situation? To find out, the Daily Economic News reporter contacted BOE and TCL Technology separately as an investor.

Regarding the first quarter’s increase in TV panel prices, a TCL Technology representative said, “The first quarter was indeed a period of moderate price increase. But we can’t directly conclude what the market will do afterward. Demand, perhaps, was driven by downstream stocking in the first quarter. In the second quarter, it might face some pressure, but the overall upward trend in prices remains unchanged.”

On capacity and demand, a TCL representative stated, “We are now basically near full capacity. Driven by larger sizes, overall utilization rates are likely to stay high, without significant drops. But of course, this also depends on downstream demand.”

Regarding whether leading manufacturers have pricing power amid rising panel prices, the TCL representative said, “Panel prices are generally quite transparent. As manufacturers, we do have some influence. But it also depends on downstream demand and business negotiations. It’s not like we can just raise prices whenever we want.”

It is also noteworthy that Huayuan Securities’ report predicts that BOE and TCL’s depreciation will begin to decline in 2026. Since LCD lines are heavy asset investments, depreciation is a significant component of panel costs. A decline in depreciation would mean future costs could decrease. So, have BOE and TCL’s depreciation peaks already passed?

A BOE representative said, “Some of our LCD lines will reach depreciation expiry gradually, and there may be new lines coming online, but we judge that the peak was in 2025.” A TCL representative added, “2025 is definitely the peak year for depreciation, and it will gradually decline afterward. In 2026, there will be some decrease, but the magnitude might not be very large. Overall, after 2025, depreciation will gradually decline, possibly with larger drops in 2027 or 2028.”

Daily Economic News