My Age of Investment

【My investment era】 【】

After receiving Xia Jingxing's full promise, Huang Dongsheng was completely relieved.

He was originally a decisive person, but considering that Xia Jingxing had been extremely generous in "supporting" BOE's tens of billions of factory building funds, he seemed hesitant about whether to wield the price butcher knife.

It's okay now. Xia Jingxing himself doesn't care about BOE's short-term profits, so he doesn't have any psychological burden at all.

After coming down, Huang Dongsheng immediately contacted the heads of the eight major TV manufacturers including Changhong, Konka, TCL, Haier, Hisense, etc. with amazing efficiency.

These eight major TV manufacturers all have one thing in common, that is, they were cheated by Yizhou panel manufacturers in 2009.

At that time, the global financial crisis had fully erupted. Yizhou panel manufacturers such as Chimei, AU Optronics, Huaying, and Caijing were all in operating difficulties. Someone from the Yizhou Office patted their heads, thinking that an opportunity to draw closer to each other had arrived. So they immediately organized eight major TV manufacturers to collectively go to Yizhou to send money, and placed a panel purchase order worth US$4.4 billion.

Rushing is not a business, and this is also true. Yizhou people regard their kindness as a donkey's liver and lungs, or repay a favor with a grudge. They would rather sell the panels to Bangzi at a low price than to the mainland. They say they do not want to rely solely on mainland customers for fear of being Mainland channels control the Yizhou panel industry.

After Samsung and LG received the relevant news, they immediately took action and began to reduce LCD exports to China and began to increase prices.

In the next six months, panel prices continued to rise, with the highest increase reaching more than 30%. Yizhou panel companies followed the example of Bangguo companies and controlled production, and made huge profits from it. Bangkok and Yizhou jointly staged a war "During the financial crisis, panel prices rose against the trend."

Afterwards, the business yamen, whose face was swollen from being slapped, made a statement: in the LCD panel industry, we will no longer cooperate with Yizhou on anything in the future.

This sentence is mainly meant for the eight TV manufacturers. I know that they feel aggrieved. After all, giving money to others is not their original intention.

In short, this incident had a very bad impact and severely severed the family ties that unite and unite the loving family.

Therefore, when they heard that BOE was interested in supplying goods to their own company at a low price, the heads of the eight TV manufacturers all took time out of their busy schedules and rushed to the capital to discuss important matters.

Even Li Dongsheng came. Since the mass production of CSOT's LCD production line has been delayed again and again, he didn't mind getting some goods from BOE first to deal with the emergency.

Although Skyworth has become a member company of Fuxing Industry, as a member of China Color TV, it will naturally not miss such an event. Li Ying, as the CEO of Fuxing Smart Home, attended the meeting.

In the conference room of BOE, Huang Dongsheng nodded to the CEOs and chairmen sitting around him and joked: "It seems that we, the upstream and downstream practitioners of LCD panels, have never gathered together since the Julong Alliance. We have to live together like this.”

Everyone here is a veteran, how could they not understand the other meaning contained in Huang Dongsheng's words.

Why was the Julong Alliance formed? It’s not because they are unwilling to accept the squeeze and exploitation of foreign panel manufacturers.

This chapter is not finished yet, click [next page] to continue reading --\u003e\u003e

【My investment era】 【】

The plan was a good one, but the joint venture parties were unable to reach a consensus on issues such as the 6th generation line or the 7.5th generation line. In addition, Sharp took the opportunity to disrupt the situation, and the project was ultimately aborted.

After that, everything was back to square one. BOE was struggling to raise funds and accumulate strength; color TV manufacturers continued to spend more than two-thirds of their costs on purchasing LCD panels.

Huang Dongsheng used this incident to vaguely remind everyone present: Neither Bangzi nor Yizhou is reliable. In the end, we have to rely on our own people.

But can “one’s own people” be relied on?

The higher you are in a high position, the more precise your calculations become.

Huang Dongsheng naturally understood this, and did not expect to rely on the righteousness of his family and country to convince this group of businessmen.

So he changed the topic and said: "Of course, everyone is busy, I understand.

Okay, no more nonsense, let’s get straight to the point.

BOE's three Gen 8.5 lines are in full mass production. At full production, they can provide 42 million LCD panels per year.

If you are interested, you can sign a "strategic long-term agreement" with BOE. We guarantee to meet the panel procurement needs of our partners with the best quality and the lowest price. "

Zhang Ruimin responded very freely: "If the price is lower than Samsung and LG, then purchase millions of pieces."

Huang Dongsheng smiled slightly and said: "This is the most basic."

"How to determine the long-term contract price?"

Li Dongsheng's opening attracted everyone's attention.

He said in a joking tone: "The panel market has collapsed like a landslide in the past year.

The long-term contract price is set high, which is an unbearable burden for our TV manufacturers whose profits are already thin.

But the price is set too low, which is not fair to BOE. "

Huang Dongsheng glanced at Li Dongsheng. Although this brother's name was similar to his, the two did not get along very well. Especially after TCL decided to establish Huaxing Optoelectronics, the friendship boat was not only completely overturned, but also became more and more serious. The harder it gets to paddle.

Moreover, CSOT also has shares in Samsung and relies on Samsung’s panel production technology.

Therefore, it can be concluded that TCL will not be of the same mind as BOE in the future.

However, we can still cooperate in the short term. First, we can defeat the Yizhou panel manufacturers, and then talk about the decisive battle with Samsung and LG.

Huang Dongsheng glanced at his assistant and asked the latter to display the PPT. Then he pointed to the panel price trend chart on the big screen behind him and said: "From May last year to February this year, panel prices have dropped by 10 consecutive years. months.

The price of a 32-inch panel was US$210 in April 2010. By October of that year, the price dropped to US$162. In February of this year, the price had shrunk to US$140, a drop of 33.33%.

Looking at the standard price of 40-42-inch LCD panels, it dropped from US$340 in April last year to US$237, a decrease of about 30.3%.

As the economy gradually recovers and the impact of the financial crisis gradually fades away from people, Morgan Stanley analyzes that panel prices will usher in a rebound in the second half of this year. "

This chapter is not finished yet, click [next page] to continue reading --\u003e\u003e

【My investment era】 【】

Realizing that the potential customers were looking at him a little wrong, Huang Dongsheng grinned and said, "I'm not saying this to set a high price, but to state the basic facts.

There has always been an invisible hand in the panel market... sometimes lifting... sometimes pressing...

Everyone knows this.

Starting from the second half of last year, Sharp announced a production reduction plan for export-oriented LCD panels, and then Samsung Electronics and China followed suit and cut production capacity.

Everyone knows what they want to do. "

Li Dongsheng was completely silent and seemed to be thinking seriously. Everyone else also looked thoughtful.

Huang Dongsheng's words undoubtedly woke them up. Several big-name panel giants must have secretly discussed it again and started to carry the sedan chair.

Li Ying is not as worried as others. On the one hand, BOE has already reached long-term supply agreements with Skyworth, Fuxing Mobile, Honor Mobile, Conscience Computer and other companies. Market fluctuations will not have a big impact on the company. On the other hand, Fuxing Industrial has officially entered the era of full profitability. Even if Fuxing Smart Home suffers losses, the Consumer Electronics Group will help share the damage with its strong profitability.

After letting everyone think carefully for a few minutes, Huang Dongsheng continued: "After signing a one-year cooperation agreement, the long-term contract price will be determined based on this month's standard LCD panel price. What do you think?"

Li Dongsheng, Zhang Ruimin and others were all surprised when they heard this. Although they had expected that there would be a bargain today before coming, after all, BOE had to show some sincerity to everyone if it wanted to develop the panel market, but they didn't. Thinking that sincerity is so abundant.

Moreover, the agreement and cooperation period is not long, only one year.

All in all, BOE seems to be at a bit of a disadvantage because it has spent a lot of money in order to seize the market.

"Haier purchased 5 million pieces."

"Hisense purchased 6 million pieces."

"Changhong also purchased 4 million pieces."

…

The agreement time and price have been given, and the rest is all about the details, so everyone has made a decision and placed an order.

Li Dongsheng hesitated for a moment and placed an order for 5 million pieces.

In the end, everyone gathered together and found that the order volume seemed to have exceeded BOE's production capacity.

Seeing this hot buying scene, Huang Dongsheng smiled from ear to ear. Sure enough, lowering prices is the best solution to seize the market, but he feels a little worried about money.

After signing these contracts, BOE's work this year was in vain, and it even had to lose some money in depreciation of factories and equipment.

However, there is a saying called "Bitter first, then sweet", which killed Yizhou panel manufacturers and made huge profits.

Huang Dongsheng asked his assistant to briefly tally the orders. Then he looked at the form handed to his hand and frowned. "Excluding Skyworth, everyone has to order 35 million panels in total. We cannot meet this production capacity."

Hearing this, everyone turned their attention to Li Ying.

Li Ying smiled and said: "We have signed a contract with BOE and ordered 12 million LCD panels."

Hearing this number, everyone had mixed emotions. They were not envious of Skyworth for having its own hardcore panel manufacturing plant, but were jealous of Skyworth's sales and development momentum.

This chapter is not finished yet, click [next page] to continue reading --\u003e\u003e

【My investment era】 【】

In the past two years, Skyworth's upward momentum has been a bit scary. It has introduced the concepts of "smart TV" and "Internet TV" to the market, and has made large-scale inroads into developing markets such as Africa, South America, and Southeast Asia. I heard that it has recently It’s about to land in the European market and compete head-to-head with high-end TVs from Samsung and LG.

After a brief discussion, everyone reduced orders ranging from hundreds of thousands to one million pieces, reducing the total order scale to 30 million pieces.

Coupled with Skyworth's scheduled order for 12 million LCD panels, BOE's three Gen 8.5 lines have fully divided the production capacity for one year.

As for the other four small-size LCD panels produced by the 4.5-generation, 5-generation, 5.5-generation, and 6-generation low-generation lines, there is no need to worry about sales channels. Just the mobile phones, tablets, computers and other products of Fuxing Industrial can eat a lot. Most of the production capacity, coupled with some original stable customers, as long as the price is right, there is no worry about cutting production capacity.

The reason why BOE is required to operate at full capacity is to squeeze the living space of Yizhou panel manufacturers, which will also have a certain impact on Samsung, LG and even Japan's only company Sharp.

The pie in the LCD panel market is just that big. One more bite for BOE means they will have one less bite.

Samsung and LG have blood transfusions from other business departments, and they will not be able to survive for a while. Perhaps BOE's rampage in the LCD track will also prompt it to accelerate its move to the OLED track, but Sharp, which is already declining, and Xinxin, which is hostile to everyone in the mainland, It’s hard to say about Chimei and AUO.

The drastic changes in the panel industry are just a microcosm of this round of industrial counterattack. Fuxing Industry, together with Xinxin Group, together with Yizhou Group and Bangzi Group, are engaged in many fields such as mobile phones, systems, home appliances, wafer foundries, and storage chips. A lot of love and hatred are about to take place.