1.357 billion! BOE Jingdian plans to invest in automotive liquid crystal display module project

Abstract: On July 20th, BOE Jingdian announced that it announced that the company's wholly-owned subsidiary, Naga Investment Co., Ltd. and Hefei New Station High-tech Industrial Development Zone Administrative Committee, on the vehicle LCD module and vehicle intelligent interactive research and development platform The project entered into an investment framework agreement.

Set micro-network news (text / spring and summer) July 20, BOE Jingdi announced that the company's wholly-owned subsidiary, the annual investment company and the Hefei new station high-tech industrial development zone management committee on the vehicle LCD The module and the vehicle intelligent interactive R&D platform project have entered into an investment framework agreement. The total investment amount of the project is RMB 1.357 billion. The company's wholly-owned subsidiary Hefei BOE Car Display Technology Co., Ltd. is the project company, as the project construction and operation. Hefei pipe The committee actively assists the project, including but not limited to Hefei BOE, which has obtained approval from the relevant government departments for project operations.

The Hefei BOE 10.5-generation TFT-LCD production line was built in December 2015 with a total investment of 45.8 billion yuan. The project mainly produces 65-inch 8K ultra-high resolution LCD screens with a design capacity of 120,000 glass substrates per month (3370mm×2940mm). ), has started mass production this year.

Prior to the acquisition of BOE, BOE Jingdian was known as Jingdian International. It has been in the automotive display business for many years. Monochrome display has taken the lead in the market and its products are sold overseas. However, under the influence of the increasing application share of TFT module products, The color display business growth space is gradually being squeezed. In order to strengthen TFT technology and enhance the company's competitiveness in the transition period of product innovation, the company plans to cooperate with BOE, which has strong technology in display technology. BOE is optimistic about the prospect of automotive display. On February 3, 2016, Jingdian International entered into a subscription agreement with BOE to subscribe for more than 50% of the international share capital of Jingdian. BOE Jingdian is an important layout for BOE to enter the global automotive display field. Since then, BOE has started to develop TFT Counterattack of module products.

However, in 2016, BOE Jingdian adhered to the monochrome display business, resulting in less than expected performance.

2017 is the company's transition period. The company's business has gradually shifted from automotive display orders to TFT products. It relies on BOD's stable TFT panel supply. Although there are many challenges, BOE's fine margin is low, but its market has expanded smoothly. And the production of TFT modules gradually shifted to medium and large size and high average selling price, driving the company's revenue growth.

The car display market is the third largest market. In order to expand overseas markets and catch up with the global car market dividend, BOE acquired the main car display system in March 2017. Jingdian International has global channels and customer resources. In the global LCD field, it has a 25% market share, which just makes up for the shortcomings of BOE. Previously, BOE had a certain domestic auto customer, and now it is also taking advantage of Jingdian International to launch the smart car joint business layout. It has completely opened up its strategic layout in the global automotive display market, becoming the world's leading automotive display supplier.

In addition, the completion of the 6th generation flexible AMOLED production line of BOE has solved the problem of brand marketing and panel supply. As a latecomer to the TFT module market, BOE has successfully achieved mass production in the first quarter of 2018. The company blew the horn of the market to seize the tough battle.

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