BOE Varitronix (710) investor relations material

Executive summary

• Revenue for 1H 2026 rose 6% year-over-year to HK$7,064 million, driven by strong growth in Europe and America, automotive display expansion, and overseas market gains.

• Net profit excluding non-operating investment impacts increased 31.2% YoY to HK$183M, while reported profit for the period fell 14% to HK$145M due to one-off or unrealised losses on financial assets.

• EBITDA was HK$315 million, down from HK$338 million in 1H 2025.

• The company maintained its leading global market share in automotive TFT displays and expanded high-end product shipments, securing major OLED project wins with overseas automakers.

• Strategic investments continued in AI-driven manufacturing, R&D, and global supply chain expansion, with significant progress in smart cockpit solutions and overseas production capacity.

Financial highlights

• Revenue reached HK$7,064M, up 6% YoY; Europe revenue grew 36%, America 85%, Korea 41%, while PRC revenue declined 8%.

• EBITDA for 1H 2026 was HK$315M; operating cash inflow increased to HK$633M from HK$533M YoY.

• Net profit (excluding non-operating items) was HK$183M, up 31.2% YoY; reported profit for the period was HK$145M, down 14% YoY due to non-operating investment impacts.

• R&D expenses rose 36% YoY to HK$206M, about 3% of revenue; capital expenditure surged 126% YoY to HK$191M.

• Basic and diluted EPS were 16.9 HK cents, down from 22.9 and 22.8 HK cents, respectively.

Outlook and guidance

• The company will advance its “Three Step” upgrade roadmap, focusing on integrated display systems and smart cockpit solutions.

• Continued R&D investment, global supply chain expansion, and AI-driven strategies are expected to drive future growth.

• Market outlook in China is projected to improve with new safety regulations and tax reforms, while European and American markets are expected to sustain growth.

• Strategic focus on premiumization, globalisation, and intelligentisation to drive future growth.

• Management remains optimistic about long-term growth and intrinsic value, with ongoing share buybacks and dividends.