'Statement' Chen Yanshun: The government supports BOE to operate through marketization.

1. Hon Hai CEO Dai Zheng Wu will serve as Chairman of Sharp; 2. BOE CEO Chen Yanshun: Government support is to operate through marketization; 3. Corning Hefei 10.5 generation LCD glass factory will be officially put into production will be BOE supplier; 4. Demand for Q2 smart phone touch panel slashed, Nissha slashed the fiscal test; Share price plummeted; 5. TV panel overproduction prices fell to historic lows

1. Hon Hai CEO Dai Zhengwu will serve as Chairman of Sharp;

According to the Japan Daily News, May 11th, Sharp announced that the president of the parent company Hon Hai Precision Industry (Taiwan) Co., Ltd. Mr. Dai Zheng Wu will serve as Chairman of Sharp. This decision will be held in June. The board of directors after the general meeting of shareholders on the 20th was formally announced.

In January of this year, Sharp formally transitioned to the structure of four joint executive officers (including chief executive officers) who are jointly responsible for the management of the successor president.

According to information released on the 11th, Dai Zhengwu will focus on 'training and selecting new presidents, organizing management teams, and responsible for long-term and stable management'.

Dai Zhengwu said that even if he leaves the post of president in the future, he will continue to offer his intention as a chairman.

In addition, Sharp also announced that Che Guchang, chairman and chief executive of Toshiba, who is an external director, will resign in June.

2. BOE CEO Chen Yanshun: Government support operates through marketization;

Sina Finance News May 10 News, GF Securities (15.740, -0.19, -1.19%) hosted, Sina Finance Co-sponsored "GF Securities 2018 Investment Summit" held in Shanghai, China Development Research Foundation vice chairman, State Council Development Liu Shijin, former deputy director of the research center, and CE0 Chen Yanshun, BOE Technology Group Co., Ltd. participated in the dialogue 'import substitution and upgrading of China's manufacturing industry'.

Liu Shijin believes that the direction of marketization is still to be adhered to. There will be a rate of return in the direction of marketization. If the government really believes that an industry is to support it, or even adopts subsidies, it is another type of If the fund, or the government, has such a function in a fund, you must have the appropriate rules.

According to Chen Yanshun, all government support operates through a market approach. We have a development idea. The government supports marketization. We all saw that local governments give us financial support by investing in local governments. The platform was carried out in the form of shareholders instead of sending it away. There was no free lunch in the world.

The following is a full record of the dialogue between Liu Shijin and Chen Yanshun:

Zeng: When you came to power, you thanked everyone and added that you have been criticized in recent years. In recent years, I think you have lived a good life. After 2012, BOE’s operating income is from 20 billion, 30 billion, 40 billion, 600. Billion has grown to more than 90 billion last year. Where does the criticism come from?

Chen Yanshun: In the past ten years, BOE has been criticized in the capital market. There are several more typical viewpoints. First, BOE is a bottomless pit with endless bottomless holes. Second, BOE is even China Hi-Tech (5.970, -0.12, -1.97%) The sorrow of technological development. In fact, frankly speaking, we are under great pressure. At that time, China's high-end manufacturing industry could not be accomplished overnight. It must go through a long period of development and accumulation. This time China and the US trade friction, China must We must master our own core technologies, but the core technologies can't be created in two days or two. It takes time to polish. After 15 years of development, BOE has only been today. Semiconductors and wafer industries are not enough for 15 years. We need everyone to have time. Have patience.

Zeng Yan: I look at Chen from a close distance. Although it is not easy in the past decade or two, your wrinkles are not much. Please sit down and warmly applause to welcome Mr. Liu Shijin to come to power again. Help us to talk about the development of this industry and the policy. It is related.

Mr. Chen Yanshun just mentioned that currently, BOE accounts for a quarter of the world's display. You are the oldest. You have been in the position of the boss for so many years. Who is the second child?

Chen Yanshun: The industry in which BOE is located now belongs to a global and fully competitive industry. BOE currently accounts for 25% of the global market share. Second, third, and fourth are two companies in South Korea and one in China's Taiwan region.

Zeng: When BOE came to the present for so many years, I would like to hear one of the most talked about, that is, Mr. Jason mentioned just now. They heard that many people are so hard for Chinese companies. The reason why they are so rejuvenated is that The subsidy from the government shows that you rely on subsidies. BOE is subsidized by the government. Does the criticism come from?

Chen Yanshun: I don't quite agree with the host's point of view. In fact, I would like to make two points. First, the government of any country has some support for the development of high-tech enterprises. For example, China’s development of high-tech industries is somewhat Supported, China has formulated a strategic emerging industry plan, China Made 2025, etc. This is a kind of support. In addition, it provides some support for R&D subsidies and funding. The US government does not support the development of high-tech enterprises. We take a very According to simple statistics, we all know that Foxconn invested in a production line in the United States at the end of last year. The U.S. government gave him various subsidies that added up to nearly 3 billion U.S. dollars. The subsidy amounted to 30% of the total investment, which is common to all governments.

Zeng Tao: To attract good companies, subsidies are a very important means to attract good companies. You just disagree with me saying that BOE is relying on subsidies. Can you explain in more detail? In the end, China’s so-called government is subsidizing the development of enterprises. What kind of situation is the kind of subsidy? Is there any benefit from subsidy or subsidy? There is another form of operation that many of us do not understand at all. Tell us about it?

Chen Yanshun: Yes, I just forgot to answer the host's question. Secondly, in the development process of BOE, all government support is operated through marketization. We have a development idea. The government supports the marketization operation. We all saw that the local government gave us financial support through the investment platform of local governments and conducted in the form of shareholders rather than sending them away. There was no free lunch in the world.

Zeng Xiao: Say it carefully, support it in the form of shareholders, and then these shareholders from your growth?

Chen Yanshun: In the development of enterprises in the past years, the government platform first invested. After the investment investment period is completed, we will convert local government investment in projects into capital market stocks through private placement. This is also Market-oriented. So I think this way is also a model for the development of China's high-tech industry.

Zeng Zheng: The marketization you mentioned is a relatively new word for many people. The government is supporting the development of enterprises, especially the enterprises that substitute the so-called imports, the products are good, the national industries are also good, and China is going to lead the future now. For the manufacturing industry, all of them are helpful, but this help is for you, but it is not the unprovoked help. It is the marketization operation. In the marketization operation, China has recently established a 300 billion yuan Industrial Funds, and more. How do you see the need for such an industry fund to set up for you?

Chen Yanshun: Personally, China has become too market-oriented in supporting the development of high-end technologies or industries. It can even be said to be a bit excessively market-oriented. As we all know, the development of high-tech industries must have a period of time. Accumulation period and sedimentation period. As you can see, our country has established 300 billion or even more industrial development funds in the semiconductor industry. The development of these industries is in the form of funds. You are all engaged in investment. The threshold for fund investment is 8%. We can't get it. Especially in the early stages of business development, the 8% capital threshold rate is terrible for us. So I think it is very market-oriented.

Zeng Yan: You emphasize that for companies like yours, the government invests, but the requirements for you are not low, and you must have an 8% return.

Chen Yanshun: In the early stages of business development, it was difficult to maintain a 8% return rate.

Zeng Zheng: The government’s current industrial fund seems to be helping companies. In fact, there are 8%. I estimate that the rate of return is not low. You think from such a situation, it seems that people seem to misunderstand the Chinese government’s subsidy on the surface. On the other hand, it is not economical for the company. What do you think of the actual effect of the government's establishment of an industrial fund? What are your views?

Liu Shijin: I think the direction of marketization still insists that there will be a demand for returns in the direction of marketization. If the government really believes that an industry is to support it, or even adopts a subsidy approach, it is another type. If the fund, or the government, has already had such a function in a fund, you must have a corresponding rule. Because this is more about local governments having such funds, it is still necessary to adhere to the principle of marketization. The government engages in some funds, regardless of returns, such as the recent assertion that China’s chips must be taken seriously. In some places, they also want to move up and down. They must engage in the chip industry and tackle the issue, and must also invest in some funds, regardless of returns. It may take a detour.

Zeng Tao: When you said that when local governments mentioned national nations, they always felt that they could not, and I would help China to advance and create a career. Now that China and the United States are fighting trade friction, we must prepare for future national development. They have such ambitions. The problem is that now it is not as rich as it used to be. Banks cannot lend freely. The country is not so rich. Are these local governments really supporting chip development? important.

Liu Shijin: I still agree with your point of view. Actually, China’s investment in scientific research in these years is actually quite a lot. The level of China’s RFID’s share of China’s GDP is not low. The question now is how effective we are, especially Some high-end technologies and products, China now seems to be short of money for a certain project. From the whole society, it may not necessarily be short of money. What we actually lack is an environment, an institutional mechanism. Can we Under this kind of environmental and institutional mechanism, there is a team, one enterprise, and five years and ten years of perseverance to tackle this issue.

Zeng Zheng: Do you think there is now?

Liu Shijin: I think now China also has, for example, China's chip industry, for so many years, actually made a lot of attempts and also spent a lot of money. But the failed companies are more, but some companies have succeeded. Currently, they are probably the middle of mobile phones. The most successful is Huawei. As far as I know, Huawei is not very aware of this. I have seen reports that the chip we are currently using is still the chip. His level is also among the highest in the world. In fact, this kind of company already has, and BOE is worth mentioning. BOE was originally a state-owned enterprise. After the restructuring, Chen always told a lot of data. After I listened to it, I was still very touched. A state-owned enterprise has been through so many years. You have also reformed your system. High-tech products can enter the top of the world. Especially their patents can reach the top few in the world. I feel that BOE as a state-owned company can develop into a purposeful experience. It is worth studying. Wang's theorem, I guess the reason why this kind of enterprise can appear in such a situation and situation is that there is an entrepreneur who has How many years in this enterprise, there is an entrepreneurial spirit. The future of China's part of state-owned enterprises is where? The BOE gave a good inspiration. China's next step to solve such problems as chips, a BOE is not enough, five, Ten, one Huawei is not enough, five or ten. Also, what kind of environment did Huawei become? Shenzhen, Shenzhen is China's innovative city, the center of innovation because of its innovative environment. There are another 10 in China, 15 , 20 innovative cities like Shenzhen, we are in the middle of the high-tech field, in what war, or some friction, China is not in its current position.

Zeng: If we want to have five BOEs in China, Huawei, we don’t have enough money right now, and young people in China are very active and talented. There are talents, money, we all have, what exactly are we missing? Liu Shijin just talked about China investing in R&D for so many years. The money for the chips is many. Why did we wake up when the Sino-U.S. trade frictions come up? There are really few companies that can compare with the United States and the West. If you go to Huawei Huawei Huawei, why? Mr. Chen talks about it. You just said that your days before 2000 were very bitter. After 2012, it was a bit slow. It even subverted global innovation. How did you come to this path?

Chen Yanshun: At the end of my speech, I just concluded that there are three points that must be maintained to achieve an industry global leadership. One is to stick to constant technology accumulation and investment. This is very critical. We have a very famous saying. Not necessarily winning, technology cannot be lost, especially in this industry, first technological development, products can not create value, leading the world. At the same time behind you there are many people in the development of new technologies, do not know on which day Inventing a new display technology in a garage turned this upside down, and we fought. So it is very important to stick to the investment and accumulation of technological innovation.

Secondly, we must innovate, do everything possible to do different products, technologies, management, market innovations. In particular, the pursuit of innovation in products, according to the needs of consumers to continuously meet the needs of consumers better and higher, we This is called supply-side product. Semiconductors, the chip industry is also the same, you first launched the product can eat meat, the second launched the product can only drink soup, the third four launched products can not see the bones, the law is like this .

The third is to have a craftsman's spirit, which is the constant pursuit of product perfection. Only if you are a kind of down-to-earth craftsman can sink and slowly accumulate, slowly to insist that one day you will succeed. This is my opinion.

Zeng Zheng: Thank you, you talked about patience, perseverance, ideals, speed, speed is to grasp the market trend, seize the market. I think you are probably in the early 50s?

Yanyan Chen: I am 53 years old this year.

Zeng Zheng: You have been working in this industry for 2 or 30 years. I would like to ask, Does the BOE young people have such dedication? And do you think that young people now have the same spirit as you? Is making money more of the young people you see?

Chen Yanshun: Our team also hopes to have a better return on income. But I think BOE can have today. In fact, the most crucial thing is to have a team of entrepreneurs who have faith and persistence. Just now Director Liu has already said that The team headed by President Wang has spent a full 25 years in the business. I will tell you one data. In 2003, when we acquired the modern display business unit of Korea, in order to fully master the technology, we imported semiconductors from all over the country. The total number of talents in optoelectronic technology is 92. These people we all took to the Great Wall to take an oath, we must learn techniques, serve the country, and finally go to South Korea for training for a period of 1-2 years, a short period of a year or two. 90% of the people are still in BOE, and they all become the backbone of business development. This is the secret of our success.

Zeng Yan: They also followed earning money.

Chen Yanshun: Business development, their income is gradually increasing. BOE income will not be as high as private enterprises, but I think people always have some spirit.

Zeng Zheng: The last question, when we find that external shocks are on the horizon, we are thinking about how we can face the advent of shocks now, and we can avoid the crisis in the future. So many people in China now say we have to create one. In the semiconductor industry chain of the entire industry chain, Mr. Liu Shijin, do you think that the semiconductor industry with which it is striving to make fullest efforts now does not even have to do it in the whole field, but should it invest in it?

Liu Shijin: This issue is worthy of discussion. After the incident of ZTE came out, some people are summing up experiences and lessons. Is China going back to self-sufficiency? Is globalization impassable? We need to observe again. It is still necessary to go this way. Another way is to use the past two bombs and one star. As long as we are convinced, the money will continue to be generated. The problem we have to solve now is whether it is good or not, the problem of not selling, and A good price that can be sold is a matter of market competitiveness. This must solve the problems of a large development environment and enterprise system.

The experience of some of the BOE's speeches that President Chen spoke just now I found it very good after I listened to it, but I thought about a problem. The one you said by BOE just now is to prepare for the next step. The few of your successes, those few are Is it okay for other companies to do it? Or does the person in charge have such an idea? Would you like to do this? He has no such motivation. For example, young people do a team. For several years, the king has always been more than 20 years. Maybe some young people are also many In years, there is strong cohesiveness. I think there is a spiritual aspect, but your income may not be very low. In addition, you mentioned one sentence. You said that we are state-owned enterprises. We are a bit lower than private enterprises. I would like to One question: Why can’t state-owned enterprises be as high as private enterprises? You are more innovative and more competitive in the market. Why can't you be higher than private enterprises? If so, I think we can certainly produce some technology in this industry. High-content, very competitive things. We must learn from the things of ZTE. In the middle of the industrial chain under the globalization background, the key technologies and products, I I need to have a backup, can't he have me not. But I have a backup that doesn't necessarily use it, I think Ren Zhengfei said a good idea, I don't necessarily use it, If you stuck me, After you stuck, I have something to replace , is to replace the problem to be solved. In addition I have this thing you do not dare to high prices, you have a bit of monopoly does not even monopoly price is too high, in fact, we develop or develop our own competitive advantage.

Zeng Jun: Here we ask a question cautiously. Why can't state-owned enterprises earn more than private enterprises? Do they agree? I strongly urge state-owned enterprises to earn the same income as private enterprises. You don't think BOE needs to have a whole industry chain chip industry. chain?

Chen Yanshun: I very much agree with the moderator's argument. We have to develop high-end industrial technologies. We must master the core technologies, but we actually do not need the entire industrial chain of the industrial chain. We all need to do it. After all, this is an integrated world. An open world. So we must innovate. Innovation must also be based on a platform for innovation. Utilizing global resources for innovation, we must never lock ourselves out.

Zeng Zheng: Thank you very much, Mr. Chen. Thank you. Thanks, Liu Shijin, Mr. Chen Yanshun. Please sit down.

Note: The above content has not been reviewed by Liu Shijin himself

3. Corning Hefei 10.5-generation liquid crystal glass substrate factory officially put into operation will be BOE supplier;

Recently, Corning Corporation held a mass production ceremony for a new factory for 10.5-generation liquid crystal glass substrates. The plant is adjacent to Boeing Technology Group Co., Ltd. (BOE)'s factory in Hefei New Station High-tech Industrial Development Zone, Anhui Province.

The new plant will make Corning the world's first manufacturer of 10.5-generation TFT glass substrates. The 10.40-g glass, measuring 2,940mm × 3,370mm, is the largest liquid crystal glass substrate on the market today, capable of 65-inch, 75-inch TVs. Provides the most economical cutting solution. The 10.5-generation glass substrate produced by the Hefei factory is Corning EAGLE XG Slim glass.

Corning began delivering samples produced by the Hefei plant to BOE in late 2017. It is expected that in the next few years, the large-size TV market of 60 inches and above will grow at a compound annual growth rate of more than 20%. The Hefei factory is Corning in China. China's third investment in liquid crystal glass substrate production plant, the company also has 8.5 generations of factories in Beijing and Chongqing.

'The commissioning of the 10.5-generation liquid crystal glass substrate plant in Hefei is yet another important milestone for Corning Display Technology's business, enabling us to produce the largest size glass substrate in the world to meet the growing demand for large-size TVs worldwide. ' Corning Glass Technology James P. Clappin, Group President, stated at the ceremony, 'As a leader in industry innovation and market, Corning has extensive production experience in the field of large-size glass substrates. We are proud to promote the development of China's LCD industry. . '

Zhang Jun, Global General Manager of Corning Display Technology Division, said: 'We are pleased to introduce the world's leading 10.5 generation glass substrate technology to support the evolving liquid crystal display industry and our important strategic customer, the BOE. The commissioning of this plant will not only make Corning is able to fulfill its long-term commitment to BOE, participate in the growth of the fastest growing liquid crystal display market in the world, and also maintain the balance of supply and demand of our LCD glass.

In December 2015, with strong support from the Hefei Municipal Government and local leaders, Corning announced its plans to invest in the establishment of a new LCD glass substrate factory in the Xinzhan High-tech Industrial Development Zone in Hefei City.

At today’s ceremony, Li Fang, President and General Manager of Corning Greater China, also stated: “Several key factors have contributed to Corning’s relationship with the 10.5-generation glass substrate factory and Hefei. We have received strong support from the government and benefit from the richness of the region. The resources of professionals and the excellent infrastructure in the region have also brought great convenience to our investment. We are very grateful to Kang Ning for its support to all levels of government and relevant departments in Anhui and Hefei. network

4. Demand for Q2 smart phone touch panel slashed, Nissha slashed the fiscal test; Share price plummeted;

The global touch panel maker Nissha made a press release after the Japanese stock price on the 10th. It announced that demand for touch panels for smart phones will decrease rapidly in Q2 (April-June). This year, the combined revenue target for this year (January to December 2018) has been revised downwards to 217 billion yen from the original forecast of 27 billion yen, and the combined profit goal has been revised downwards from 15 billion yen to 10.2 billion yen. The net profit target has also been revised down to 7 billion yen from the previously estimated 11 billion yen.

Nissha revised this year's component division (touch panel division) from its previous forecast of JPY140.6 billion to JPY131.8 billion.

Apple announced on March 8 the latest list of the world’s top 200 suppliers, including Nissha.

Nissha also announced its earnings for the previous quarter (January to March 1818): Consolidated revenue increased by 6.9% from the same period last year to 36,314 million yen, and the combined loss amounted to 1,829 million yen (compared with 2,273 million yen in the same period of last year). The loss was 3.612 billion yen (net loss of 4.053 billion yen in the same period of last year).

In the previous quarter, Nissha's module division's revenue increased by 13.0% from the same period last year to 15.587 billion yen, with a loss of 1.259 billion yen (compared to an impairment loss of 788 million yen in the same period of last year).

According to the offer of the Harvest XQ global winner system, Nissha plunged 6.80% to 2,576 yen as of 9:00 am on Taipei time on the 11th, and fell slightly to 2,390 yen (down 13.5%) earlier. It was a year (2017). Since the 18th) new low level.

5. Excessive output of TV panels Price has fallen to historical lows

Wang Zhen

Panel companies that have been very strong late last year and early this year are facing severe challenges.

The First Financial reporter learned from AVC on May 9th that the current price of TV panels has fallen to or near the historical lowest point of the previous wave of price cut cycles in 2016. It is expected that the prices in June this year will continue to decline. , Constantly approaching the panel factory's cost line.

Are leading Chinese companies such as BOE and Huaxing Optoelectronics, which are expanding their TV panel production capacity, able to smooth down this down cycle?

Screen price fell to historical lows

According to the analyst from Ove Cloud Network, the TV panel price has been declining, mainly due to the mass production and ramp-up of new LCD (liquid crystal) high-generation panel makers since 2017, and the global LCD panel production capacity is accelerating. However, in the short term, the demand for TVs in the whole world, including China, has not been effectively improved. Therefore, after the arrival of the 'World Cup' of the whole plant in April of this year, the oversupply of panels has become more severe, which has accelerated the decline in panel prices.

This round of price reduction covers all major dimensions of the panel.

According to forecast data published by Orvi Cloud on May 9, in May this year, 32-inch, 40-inch, 49-50-inch panel prices will fall by 2 US dollars, 43-inch panel prices will drop by 4 US dollars, and 55-inch panel prices will also Continue to fall, even the oversized 65-inch panel is no exception.

The 32-inch HD (high-definition) panel in the first quarter of 2016 had reached the lowest price point in history, at US$52. It is expected that the 32-inch panel price will fall to US$52 again in May of this year, and there is a possibility of further decline in June. 55-inch UHD (Ultra HD) The panel reached its historical low in May 2016 at $170, and in April this year the price has fallen below $170 to $166.

Qu Yazhi General Manager Li Yaqin also told the First Financial reporter that the price of the TV panel in May of this year compared with May last year, a drop of 25% to 30%.

Overcapacity supply

'The drop was larger than expected, which was related to irrational investment. The main contradiction was that the panel supply grew faster than the panel's demand growth. In the first quarter of this year, global color TV shipments increased by 7%, but panel supply increased by 8% to 9%. In 2018, the global TV panel demand area is expected to increase by 6%, and the supply area will increase by 8%~9%. 'Li Yaqin said.

“The panel industry has a scale effect. The bigger the scale, the more it has the right to speak and the better it survives. Therefore, if Chinese panel companies want to establish themselves in the industry, they must continue to expand the scale. The needs of Chinese companies’ own development plus the capital of local governments Support, causing the supply to increase too quickly in the short term.'

Li Yaqin predicts that with the above-mentioned projects being put into production and mass production in the coming year and next year, the global television panel industry will still face the pressure of oversupply of production capacity in the next two or three years. Therefore, the industry should maintain a cautious, rational attitude and rhythm in investing and expanding production. .

'This panel's wave of price cuts is just as ferocious as previous price increases. The profitability of major panel makers has entered a downward path since the second half of last year. ' Another panel industry analyst, Cui Jilong, said that the large-size panel area shipped worldwide The first LGD suffered a loss in the first quarter of this year. In the foreseeable future months, the profitability of the major panel makers will not be optimistic and will face relatively big challenges.

In the first quarter of 2018, BOE's revenue also fell by 1.32% to 21.57 billion yuan, and its net profit dropped by 16.34% to 2.02 billion yuan; Huaxing Optoelectronics also decreased its revenue by 1.19% in the first quarter of 2018 to 6.46 billion yuan. Through increased production capacity, it reduced costs and optimized The product structure reduced the impact of panel price fluctuations. The interest before tax, depreciation, amortization, and amortization was 2.76 billion yuan, an increase of 9.86% year-on-year.

Last year, the profitability of the panel plant was good, and the performance of the color power plant was not satisfactory. This year, the panel has a surplus supply capacity. The color power plant hopes to get a good price as much as possible and improve its performance. 'IHS analyst Wu Rongbing told the reporter of the First Financial Affairs Bureau.

Against this background, BOE and Huaxing Optoelectronics are actively adjusting the product structure, reducing the production of 32-inch panels, increasing the supply of 43, 49, and 55-inch panels, and promoting the development of large-size TVs.

65-inch panel, BOE Hefei 10.5 generation line production yield has reached 70%, the output is greater than expected, and the oversized TV market to boost the process, so the price declines badly.

However, Wu Rongbing believes that in the long term, this will be good for stimulating the demand for oversized television. The First Financial Daily

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