BOE takes a “loss of quagmire” and moves to business and medical fields

In the history of Chinese enterprise expansion, BOE has taken the path of “high financing, high loss, and high expansion”. In the 14 years since its listing, BOE has lost a total of 7.532 billion yuan. Even at the time of the loss, BOE did not stop the pace of expansion and continued to build factories in Chongqing and Hefei.

However, on April 10 this year, BOE released its first-quarter results forecast, showing that the company's net profit attributable to shareholders of listed companies in the first quarter was 950 million yuan to 100 million yuan, a year-on-year increase of 62%-70%. BOE completed the industrial accumulation in the ten-year dispute. "In addition to the display, BOE is vigorously entering the smart business display and smart medical care ." Zhang Yu, vice president of BOE, revealed to the Southern Reporter that BOE is currently promoting limited diversification.

14 years lost a total of 7.5 billion

At the International Consumer Electronics Show (CES) held this year, Samsung exhibited the world's largest 110-inch 8K ultra-high-definition TV, but its display is not Samsung's own production, but the use of products developed by BOE, which is the world's first 110-inch 8K ultra-high definition display. At present, all the BOE plant lines are fully sold, and the Chongqing 8.5-generation line is also being delivered to mass production, which will contribute more profits to the company. Zhang Yu, vice president of BOE, said that at present, BOE's 8K products have been sold in Japan.

To clarify the BOE’s profit story, we must start with “high financing, high losses, and high expansion”. According to public information, in the 14 years of listing, BOE raised more than 70 billion yuan, receiving government subsidies of 5.6 billion yuan, and a total loss of 7.532 billion yuan. However, this "crazy burning of money" seems reasonable in Zhang Yu. "Korea and related companies in Taiwan have experienced similar money-burning processes. The panel is a high-tech, high-input industry with past investments. The depreciation of the generation line is completed, and the profitability of BOE is improving. Because of the early construction of Japan and South Korea, BOE does not need to bear the burden of depreciation, which is an important bargaining chip. In other words, "the high-end electronics industry has no capacity scale, think It is unrealistic to occupy a leading position." Chen Yanshun, president of BOE, had previously accepted an interview with a reporter from Southern China.

However, one of BOE’s competitors, AU Optronics CEO Peng Shuanglang, admitted to the Southern Reporter that “the production capacity is not equal to the output. You can see that the BOE’s Erdos line has been put into production for two years, and the output is actually very low.” The reporter asked "Whether BOE will continue to expand its production capacity," Zhang Yu also vaguely said, "This is determined by market demand."

Move to business and medical fields

OLED yield and technology updates are also a challenge. Peng Shuanglang explained to the Southern Reporter that the current mainstream inkjet OLED consumables cost too much. Unless the printed O LED is developed, it is estimated that the cost can be reduced by 90%, but this new technology may take shape in five years. “For example, some companies use low-temperature polysilicon for HD screens, but AUO can do it with amorphous silicon, and the cost is lower.”

Zhang Yu also acknowledged that OLED products face the challenges of coordinated upstream and downstream development of materials and equipment. However, he also stressed that the Chinese brand has always left the impression of relying on low prices to compete, but in fact, the way to fight prices is not good for industrial development. The phenomenon of "toilet cover" proves that there is also a strong demand for quality consumption in China. In addition, BOE has been promoting a diversification strategy, with display devices, smart business systems and smart health care forming three business directions. Although the display device still contributes 80% of revenue, after a decade, the sum of the latter two businesses may exceed the display device. According to Zhang Yu, BOE has cooperated with European automotive electronics integrators and national medical institutions.

This year, BOE officially launched a smart business platform, and sold its own brand new concept display terminal BOEAlta through the online platform. The price of 55-inch is as high as 23,000 yuan. It is hoped that the platform for building and interacting with users will be in C2B mode. Provide customized services. In addition, BOE has also used LED lighting and soilless cultivation to play a “plant factory” to help some remote areas solve their vegetable needs.

[third eye]

Chinese panel companies ushered in a "counterattack" opportunity

Liu Buchen, an analyst of the home appliance industry, believes that after 2012, the supply capacity of LCD panels in foreign countries and Taiwan will decline, and some of the production capacity will shift to OLEDs. The purchase of domestic liquid plates will increase, and Huaxing Broadcasting and Beijingnese will become beneficiaries. In addition, the quality of local panels has indeed improved to some extent this year, and foreign-invested display products manufacturers have shifted some of their product purchases to local panel companies.

Natural Plant Intermediates

We have Natural Plant Intermediates,Organic Flax Seed,Organic Apricot Kernel, Organic Pine Nut,Acacetin Supplement ,Piperine Blood Pressure , Herbal extract - Plant Extract : Organic Extract ; Fruit & vegetable powder ; plant Essential Oil

Xi'an Henrikang Biotech Co., Ltd., has a high-quality talent team and well-equipped quality control laboratory. In the Skin Whitening production enterprises far ahead of other enterprises. Sweeteners we are also a high-quality supplier, absolutely reliable quality, absolutely competitive price. The factory has a RESEARCH and development and quality testing center, with strong technical research and development strength. Preservatives also has 3 sales departments, more than 30 people, and our products are sold all over the world.Nutrition Supplements sales in foreign countries our company has a long-term stable market and partners in Sex Enhancement Powder, We are very professional suppliers, looking forward to cooperating with you, welcome to consult us.

Natural plant intermediates,Organic Flax Seed,Organic Apricot Kernel, Organic Pine Nut,Acacetin Supplement,Piperine Blood Pressure

Xi'an Henrikang Biotech Co.,Ltd , https://www.xianhenrikang.com