1. Transmission of BOE Samsung's preliminary cooperation agreement in the television panel area;
In the micro-network news, the transmission of BOE and Samsung Electronics finalized the agreement. The first step of the two sides will be to cooperate with the panel. With the support of the national policy force, bypassing the US-China trade war and producing and selling below the cost, opening the sea.
According to reports, Korean equipment makers pointed out that Samsung and BOE Group have reached a preliminary agreement. The first step will be for the two sides to start cooperation in the television panel area, so as to achieve production quotation far below the cost of 60% and bypass the cost. The US-China trade war interfered and entered the international market.
Sources stated that BOE Group has accelerated the investment arrangement after the official exemption of a total of RMB 6.3 billion in loans owed this year, and has provided new panel quotations to Samsung Group. In the case of policy subsidies, only raw materials will be calculated without calculating civil and fixed costs. Cost, so it can be produced in less than 60% of the cost of the industry.
The senior research director of IHS Markit, Xie Qinyi, has previously warned that South Korea's TV brand intends to use BOE TV panels. This move is intended to replace Taiwanese suppliers, provided that the production yield of BOE's production line at the 10th to 5th generation is to be improved.
The news also pointed out that BOE’s previous loss was due to the low yield rate. In order to improve the yield rate, it offered significant technical support to the Samsung Group to release its offer of good prices, and thus the exchange rate can be adjusted for improvement in the second quarter.
2. Panel price decline, BOE rise: AUO pressure Shanda;
According to Digitimes, AUO CEO Paul Peng stated after the release of the new financial report that the mainland’s BOE is now their strongest opponent.
Peng Shuanglang pointed out that as a peer of BOE, he said that although Taiwanese companies are diligent in diversification, they have not managed well by mainland companies.
According to the financial data, AUO achieved revenue of NT$74,440 million in the first quarter, which fell by 7.7% from the previous quarter and net profit declined to NT$4,31 million.
In BOE, sales revenue fell by only 1.32% to 21.567 billion yuan, net profit reached 966 million yuan, or approximately NT$4.57 billion.
At the same time, BOE’s gross profit margin and net profit margin were 20.8% and 9%, respectively, while AUO was 10.9% and 5.4%, respectively.
Peng Shuanglang emphasized that the decrease in industry revenue was mainly due to the fact that TV panel prices had fallen all the way since mid-2017. In the downturn period of the industry, the quality of operations is more reflective of corporate wisdom.
Of course, because of falling prices, he also said that the average TV size will increase by 1 to 2 inches in 2018.
3. Corning 10.5 Glass Substrate Project Settled in Wuhan Boost Hubei LCD Panel Industry Chain
On May 3, 2018, the Wuhan Linkong Port Economic Development Zone Management Committee, the Yangtze River Industry Fund Management Company, and the Corning Company signed a 'Memorandum of Cooperation on Supporting Corning's 10th Generation Glass Project' in Wuhan. This marks the government. , Funds, business tripartite cooperation and project production and construction have entered a substantive stage.
Wuhan Airport Airport Administrative Committee, Yangtze River Industry Fund Management Company and Corning Corporation signed a cooperation memorandum.
Corning is the global market leader in display technology, optical communications, environmental technology, life sciences and specialty materials. It is also a supplier of special glass and ceramic materials used in liquid crystal displays. It is one of the Fortune 500 companies. The technical understanding and support set the standard for TFT-LCD glass and other advanced display products. Its market share in the global liquid crystal glass substrate market is as high as 60%, ranking first in the world, especially in the field of high-generation lines. It is in a monopolistic position. Corning 10.5-generation glass substrate project is located in Dongxihu District, Wuhan, covers an area of 236 acres, an investment of about 13-14 billion US dollars. After the project is completed and put into production, it will be able to fully meet BOE Wuhan 10.5 The demand for liquid crystal panel production line, and effectively promoted the LCD panel industry chain in Hubei Province to improve quality and efficiency.
In 2017, Changjiang Industrial Fund Management Company also started to contact and communicate with Corning Corporation in the process of introducing BOE. At the invitation of Changjiang Industrial Fund Management Company in May 2017, Li Fang, President of Corning Corporation Greater China, USA He led the team to Wuhan and conducted a detailed inspection of the production environment, project site selection, and supporting facilities and other investment factors. Thereafter, under the promotion and coordination of the Changjiang Industrial Fund Management Company, the enterprises and the government invested in construction models, government preferential policies, etc. The core terms were gradually agreed upon and signed today to achieve cooperation.
At present, Changjiang Industrial Fund Management Company is focusing on industrial clusters of photovoltaic displays, and has established close contacts and discussions with many of the world’s top 500 companies and industry leaders. In the future, it will also be in the fields of equipment, materials, panels, modules, and downstream display terminals. More companies will be introduced to settle in Hubei, eventually forming hundreds of billions of industrial clusters and driving the accelerated development of the entire optoelectronic display industry in Hubei.