My Age of Investment - Chapter 1552 Love and Hatred

   Chapter 1552 Love, hate, love and hatred

   After getting Xia Jingxing's bottom line promise, Huang Dongsheng was completely relieved.

   He was originally a decisive character, but considering that Xia Jingxing had already generously "supported" BOE's tens of billions of funds to build a factory, he was hesitant to wave the price butcher knife.

  It's all right now, Xia Jingxing doesn't care whether BOE makes short-term profits or not, so he doesn't have any psychological burden at all.

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

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

At that time, the global financial crisis had fully erupted, and all Yizhou panel manufacturers, such as Chi Mei, AUO, Huaying, and Caijing, had fallen into business difficulties. So they immediately organized eight major TV manufacturers to go to Yizhou to send money collectively, and placed a panel purchase order amounting to 4.4 billion US dollars.

Catching up is not a business, and the fact is that the people of Yizhou regard good intentions as donkeys, livers and lungs, or to retaliate for revenge. They would rather sell the panels to sticks at low prices than to the mainland. The mainland channel controls the panel industry in Yizhou.

  Samsung and LG immediately took action after receiving the relevant news, began to reduce the export volume of LCD to China, and began to increase prices at the same time.

In the next half year, panel prices rose all the way, with the highest increase reaching more than 30%. Yizhou panel companies followed suit and followed Bangguo companies to control production and made huge profits. Bangyi and Yizhou jointly staged a show. "During the financial crisis, panel prices rose against the trend".

   Afterwards, the business yamen, whose face was swollen, said: the LCD panel industry will no longer cooperate with Yizhou in anything in the future.

   This sentence was mainly addressed to the eight TV manufacturers, who knew they were aggrieved. After all, it was not their intention to send money to others.

   In short, this incident has had a very bad impact, and has severely cut off the family relationship of the united, fraternal and loving family.

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

   Even Li Dongsheng is here, because CSOT's LCD production line has been delayed again and again, and he doesn't mind getting some goods from BOE first for emergencies.

   Although Skyworth has become a member company of Fuxing Industry, as a member of China Color TV, it will not be absent from such a grand event. Li Ying, as the CEO of Fuxing Zhijia, attended the meeting.

In BOE's conference room, Huang Dongsheng nodded to the CEOs and chairman of the board and joked: "It seems that since the Julong Alliance, our LCD panel upstream and downstream practitioners have never gathered. Gotta get through it this way."

  The people here are all old rivers and lakes, how can they understand another meaning contained in Huang Dongsheng's words.

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

The    plan is a good plan, but the parties to the joint venture have been unable to reach a consensus on issues such as Gen 6 or Gen 7.5. In addition, Sharp took the opportunity to disrupt the situation, and the project was ultimately aborted.

   After that, everything went back to the original point. BOE struggled to raise funds and accumulated strength; various color TV manufacturers continued to spend more than two-thirds of their costs on purchasing LCD panels.

   Huang Dongsheng borrowed this matter to remind everyone present: Bangzi and Yizhou, neither of them can be trusted, and we have to rely on our own people in the end.

   But, is "one's own person" reliable?

   The higher the position, the better the abacus.

  Huang Dongsheng naturally understands this, and does not expect to rely on the righteousness of the family and the country to persuade this group of businessmen.

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

   Okay, no more nonsense, let's go straight to the topic.

  BOE's three Gen 8.5 lines have been fully mass-produced. Under full production, 42 million LCD panels can be provided each 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 buy millions of pieces."

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

   "How is the long-term agreement price determined?"

   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 agreement price has been set high, which is an unbearable burden for our TV manufacturers, whose profits are already thin.

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

Huang Dongsheng glanced at Li Dongsheng. Although this brother's name was similar to his, the two didn't get along very well, especially after TCL decided to establish CSOT, the boat of friendship was completely overturned, but it also became more and more The harder it is to move.

   Moreover, Huaxing Optoelectronics also has shares in Samsung, and it also relies on Samsung's panel production technology.

   Therefore, it can be concluded that TCL will not agree with BOE in the future.

   But for now, we can still cooperate for a short time, first bring down the panel manufacturers in Yizhou, and then talk about the decisive battle with Samsung and LG.

Huang Dongsheng gave his assistant a look and asked the latter to show the PPT. Then he pointed to the panel price chart on the big screen behind him and said, "From May last year to February this year, the panel price has dropped for 10 consecutive years. months.

   The price of a 32-inch panel in April 2010 was $210. By October of that year, the price had dropped to $162. In February this year, this figure had shrunk to $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 drop of about 30.3%.

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

   Discovering that these potential customers are looking at him a bit wrong, Huang Dongsheng grinned and said: "I said this not to set a high price, but to state the basic facts.

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

   This is well known to everyone.

   Since the second half of last year, Sharp announced a plan to reduce production of LCD panels for export, and then Samsung Electronics and LG Display followed suit and cut production capacity.

   We all know what they want to do. "

   Li Dongsheng was completely silent, and seemed to be thinking seriously, and everyone else was also thinking.

   Huang Dongsheng's remarks undoubtedly woke them up. The panel giants of Gouyue must have discussed it secretly again, and they are about to start carrying the sedan chairs.

Li Ying is not as worried as others. On the one hand, BOE has already reached long-term supply agreements with companies such as Skyworth, Fuxing Mobile, Honor Mobile, and Conscience Computer. Market fluctuations will not have much impact on the company. It is that Fuxing Industry has officially entered the era of comprehensive profitability. Even if Fuxing Zhijia suffers losses, the consumer electronics group will help share the damage with its strong profitability.

   After making everyone think about it for a few minutes, Huang Dongsheng continued: "Signing a one-year cooperation agreement, the long-term agreement price will be set according to the standard price of LCD panels this month, 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 they came. After all, if BOE wants to develop the panel market, it must show some sincerity to everyone. Think of the sincerity to give so much.

   And the cooperation agreement is not long, only one year.

  To sum up, BOE seems to suffer a bit, and has invested a lot in order to seize the market.

   "Haier purchased 5 million pieces."

   "Hisense purchased 6 million pieces."

   "Changhong also purchased 4 million pieces."

  …

  The time and price of the agreement have been given, and the rest are details, so everyone has made a decision to place an order.

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

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

   Seeing this hot panic buying scene, Huang Dongsheng couldn't stop laughing. Sure enough, lowering the price is the best solution to seize the market, but he is a little distressed about money.

   After signing a bunch of contracts, BOE has done nothing this year, and even lost some depreciation of factories and equipment.

   However, there is a saying called "Bitterness comes first, then sweetness", which killed the Yizhou panel manufacturers and made huge profits.

  Huang Dongsheng asked his assistant to briefly count the orders, and then he frowned when he looked at the form handed to him, "If you don't count Skyworth, everyone will order 35 million panels in total, and we can't meet this 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 was in a mixed mood. They were not envious of Skyworth's own hard-core panel manufacturing factory, but envied Skyworth's sales and development momentum.

In the past two years, Skyworth's upward momentum is really scary, and it is throwing the concept of "smart TV" and "Internet TV" to the market, and it is aggressively entering the markets of developing countries such as Africa, South America, and Southeast Asia. To land in the European market, I have to go head-to-head with Samsung and LG's high-end TVs.

   After a brief discussion, they all cut orders ranging from hundreds of thousands to one million pieces, reducing the total order size to 30 million pieces.

   In addition to the 12 million LCD panel orders scheduled by Skyworth, the production capacity of BOE's three 8.5-generation lines in one year has been divided up.

As for the other 4 small-sized LCD panels produced by the 4.5th, 5th, 5.5th, and 6th generation low-generation lines, there is no need to worry about sales channels. Just the mobile phones, tablets, computers and other products of Fuxing Industry can eat quite a lot. A large part of the production capacity, plus some original stable customers, as long as the price is right, there is no concern about cutting production capacity at all.

  The reason for BOE to run 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 seedling Sharp.

   The pie in the LCD panel market is so big, if BOE eats more, it means they will eat less.

Samsung and LG have blood transfusions from other business departments, and they will not die in a while. Perhaps BOE's rampage on the LCD track will prompt it to accelerate its move to the OLED track. Chi Mei and AUO are hard to say.

The drastic changes in the panel industry are just a microcosm of this round of industrial counter-offensive. Fuxing Industry and Xinxin Group, together with the Yizhou Department and the Stick Department, have more opportunities in many fields such as mobile phones, systems, home appliances, wafer foundry, and storage chips. More love and hatred is about to be staged.

   (end of this chapter)