AUO's second-quarter earnings report outperformed market expectations, maintaining profit for the eighth consecutive quarter, and earning the LGD for the second consecutive quarter. Peng Shuanglang believes that AUO's value transformation strategy is relatively stable in terms of operating relative peers, he said The ups and downs of the industry boom are inevitable. After the peak season, we will also prepare for the future boom cycle. AUO adheres to the three dimensions of optimal scale, value transformation and technological innovation, and the results are shown in operational efficiency.
Peng Shuanglang pointed out that it was mentioned in 1 or 2 years ago that we have seen that the entire panel market will follow different paths. China should follow the policy and government support, and the scale and capacity will be large. The above competition; Han factory has group support in addition to the government, AUO is relatively weaker than this part, so set its own strategy.
He stressed that compared with the loss performance of Korean competitors in the past two quarters, AUO maintains profitability, mainly in the production lines, products and technologies that have been invested, in the current scale and the modest expansion of high-quality production capacity in the future. It is not the road of scale competition. It is the road of value competition, including products, customer layout or future display technology layout, hoping to create more value.
Peng Shuanglang said that in the future, it may be seen that companies in the panel industry should see some different results at different stages. When they have a good time in the past, everyone will earn it together. It’s not good to lose money together. The same, therefore, under the three major strategies, AUO's cautious implementation continues, and results are also seen.
Recently, BOE Chairman Wang Dongsheng said at the shareholders meeting, 'The liquid crystal display industry will be similar to CPU and GPU manufacturing companies in the future. In the end, there are only about three in the world, no more than five, and BOE will be one of them.' In this regard, AUO Chairman Peng Shuanglang responded with confidence, and there must be AUO in these three.
Panel prices continue to fall. Some sizes have fallen by 25% this year. Close to cash costs, the market is watching when TV panel prices will stop falling. Peng Shuanglang pointed out that everything is extremely counterproductive and cannot be maintained below cash cost for a long time. How can I help people to work and bring their own lunches, the market will adjust to find a balance.
Peng Shuanglang said that the brand's inventory adjustment in the second quarter is coming to an end. This year, there is a World Cup football match, and in the third quarter, the fourth season is the traditional peak season. Order demand will be better than the first half of the year. How much better? Deconstruction, and how strong the promotion is. Overall, the performance of the panel industry in the second half of the year will be better than the first half.
Peng Shuanglang pointed out that the unfettered rhetoric of the old generation line does not exist. Every generation has suitable products. The old generation line is a high-order, and a small number of diverse products are most appropriate. For example, Caijing has relied on a panel factory in the past few years. Last year, the interest rate was defeated by all panel factories. The industry and scale are definitely not the only conditions. The development cost of the new generation panel factory is quite high. Take the 10.5 foundry as an example. It takes about 100 million yuan to open the hood. 60 million yuan, 5 generations of masks about 10 million yuan, high cost of change, can not do a small number of products, which is why the past competitors in the commercial market.
AUO's product line is wide, in addition to TV panels, as well as NB, monitors, mobile phones, car and commercial panels, the company will dynamically adjust production capacity in response to market conditions.