BOE Technology Group Co (京東方), China's biggest maker of liquid-crystal-display (LCD) panels, reported profits in the third quarter as demand for computers and TVs that use its screens surged.
Net income was 420.5 million yuan (US$56 million), or 0.14 yuan a share, compared with a loss of 883.5 million yuan, or 0.31 yuan, a year earlier, Beijing-based BOE Technology said in a statement to the Shenzhen stock exchange yesterday. Sales rose to 3.24 billion yuan from 2.39 billion yuan.
China's booming economy boosted incomes and fueled surging demand for personal computers, TVs, and other electronics.
Retail sales rose 17 percent last month from a year earlier after the Chinese government raised minimum wages and cut tax to spur consumer demand.
Last week, Hannstar Display Corp (瀚宇彩晶), Taiwan's fourth-biggest maker of LCDs, reported third-quarter profits of NT$6.14 billion (US$189 million), compared with a NT$3.04 billion loss a year earlier, after a shortage drove up prices of screens used in computers and TVs.
As demand rises for LCD screens, Samsung Electronics Co, the world's largest maker of LCD screens, said on Oct. 24 it would spend 457.5 billion won (US$498 million) to increase production of the screens as demand rises.
The investment will be used to expand capacity at the company's seventh-generation manufacturing line, the company said.