LCD TV panel shipments show negative growth in the third quarter of this year

Absrtact: The targeted additional financing project has not yet been made, that is, has been overshadowed. The latest statistics released by the city's regulator, his, show that the third quarter of this year's LCD TV panel shipments showed negative growth, from 58.8 million in the second quarter to 58 million, and last year

Targeted additional financing projects have not yet taken place, that has been overshadowed.

The latest statistics released by the city's regulator, his recent statistic, show that in the third quarter LCD TV panel shipments showed negative growth, from 58.8 million in the second quarter to 58 million, while shipments were 60 million in the same period last year. His senior panel analyst has said that the third quarter is the panel into the four-quarter sales peak of the outpost, the sales should begin to gradually heating up, so the panel shipments do not increase the reduction is indeed a bit of a surprise, consumer demand than expected to continue to drag the panel supplier shipments growth stagnation.

On the other hand, the panel industry prices continue to decline. The newly-swung boe a will face new challenges, and the recent announcement of the investment project is not very clear.

As many investors in the market questioned the "only financing, do not make money," Beijing East again into a passive industry reincarnation?

Decline in sales and price downward

On the one hand, sales are down, while panel prices continue to fall. September 5, the 2013 China Flat panel display meeting, DisplaySearch general manager She Qin has said that, subject to the demand side of the repression, the panel industry will not appear this year, the price will continue to fall, the 9-10-month price is expected to drop 5% again. JPMorgan also noted that the panel industry began to deteriorate in September as demand was flat and inventories were high, and that panel mills had maintained high capacity utilisation over the past few quarters, predicting that fourth-quarter panel prices would fall further and continue into the first quarter of next year.

As the BoE has just released its refinancing plan, the current industry boom seems not to be optimistic.

In July this year, Beijing Oriental issued a private issue of stock plan announcement. According to the plan, the issue of the number of shares in the range of 9.5 billion ~224 billion shares (including the number). Net amount of funds raised (means the net amount of the total amount collected after deducting the issue fee) not exceeding 46 billion yuan, The stock subscription part of the initial assessment of the value of 8.533 billion yuan, the company expects that this non-public offering deduction after the issuance fee can raise cash not more than 37.5 billion yuan, the collection of cash will be mainly to the Beijing-Oriental Hefei 8.5 generation oxide TFT production line, Ordos 5.5 generation AMOLED production line, Chongqing 8.5 Generation of new semiconductor display production line and other projects under construction, as well as the new planning in Hefei touch screen production line.

At present, the company announced the progress of the financing project, August 13 The programme has been approved by the general meeting of shareholders.

BoE believes that the investment in the construction of the two 8.5 generation line will quickly improve the overall panel capacity, especially the high-end oxide TFT panel product capacity, and the production line has formed a product of cross complementarity. After all the construction of the production line, the BoE will have a total of 6 TFT-LCD production line and 1 AMOLED production line, covering almost all the panel application fields.

"BoE is the largest flat-panel display industry in China, with the highest number of patents, the most abundant product lines, and the best marginal margin." In the first half of 2013, more than 1600 new patent applications, the new leading to the establishment of international/national industry technical standards 4. One of the new oxide, Low-power Goa and high transmittance pixel design project, narrow border, in the Cell touch and other projects to achieve breakthroughs, 55-inch uhd+ open-hole 3D technology volume production project has been launched, Beijing Oriental shipments have jumped to the world's fifth. In a conference call held on September 27, BoE said to institutional investors.

In fact, the BoE in the three quarter also achieved a year-on-year loss. August 20, the company announced that the first three quarters of 2013 net profit of 1.3 billion ~14 billion, the same period last year, a loss of 635 million yuan. The basic earnings per share was $0.096 to $0.104, compared with a loss of $0.047 in the same period last year. At the same time, its third quarter results show that the third quarter attributable to the shareholders of the listed company's net profit of 440.71 million yuan to 540.71 million yuan, year-on-year growth 191%~257%, basic earnings per share of 0.033 to 0.04 yuan. Beijing Oriental announced at the same time since 2013, the average price of its main products higher than the same period last year, the production capacity is also significantly higher than the same period last year, the scale of operating effects continue to reflect, the production line to maintain full Jia dynamic operation, product structure optimization, raw material cost control effectiveness, high value-added Overall revenue and gross margin increased significantly year-on-year.

"It's good now, but I'm afraid it's going to be a loss." "Taiwanese manufacturers are now on the verge of losing money," a researcher at the electronics industry at a private equity company in Shanghai told reporters. ”

By terminal consumption than expected, large size panel supply excess impact, the panel price continued to lower, especially TV panel quoted price is falling 10% in the third quarter, the price continued to fall 2% in early October, Outlook is still bearish. As a part of the size of the TV panel price spread has been in the margin of cost (or loss), market expectations, Taiwan's panel manufacturers group, friends not only in the third quarter of this year's revenue is lower than the last quarter, the single quarter gross margin, profit performance is not as good as last quarter. Analysts expect losses to be lost as soon as the third quarter of this year and the fourth quarter at the latest.

Capital market Financing regulars

Industry insiders predicted that in the next few years, domestic panel capacity will face overcapacity problems, the panel industry may even become the second photovoltaic industry.

2012, Beijing-Orient, Huaxing photoelectric two 8.5 generation lines have been in Beijing, Shenzhen to achieve full production. In addition to the current Beijing-Orient in Hefei, Chongqing two 8.5 generation line, to 2014, 2015, the domestic will have 7 8.5 generation lines, including Beijing-Orient Hefei, Beijing-Orient Chongqing, Beijing-Oriental, China Starlight Electric Shenzhen, Samsung Suzhou, LGD Guangzhou, China Electric panda Nanjing and other 7 projects.

DisplaySearch, vice president of Greater China, She Qin that 2013 global LCD panel Supply and demand basic balance. And in 2014 years, the Beijing-Orient Hefei, Samsung Suzhou, LGD Guangzhou three 8.5 generation line will be put into production, the global panel industry may be in the second half of 2014 from the current supply and demand balance back to oversupply situation.

Such a large-scale refinancing expansion, in the industry overcapacity, panel industry sales decline and price down the current, but also for the future prospects of the Beijing-Orient cast a shadow. Dongshen, chairman of the BoE, said at the shareholder meeting that in order to enter the world's top three, the BoE needs to increase investment, it is believed that not to raise funds, not to increase investment, maintain the current state, the company can also be a good short-term, but the company's future goal is to become the industry leader, this is the current period of interest and long-term interests of the He said that if the current investment in the next 5 years, the timing is missed, the future of the world's first three of Beijing's goal will be empty talk. This is the starting point of the company's large-scale financing.

Beijing Oriental's 46 billion financing move this year, once again, investors can not help but Lenovo in recent years in the capital market financing pace.

"First Financial daily" reporter to its first four times financing carried out one by one comb.

2006, Beijing Oriental issued a notice of directional issuance of additional announcements, to the specific object of non-public offerings not more than 1.5 billion shares, for Beijing TFT-LCD 5G production line of technical transformation and large-scale TFT-LCD color filter production line project. Finally, the BoE completed the issue of 675872095 shares, the total amount of money raised 1.86 billion yuan.

August 2007, BoE a proposed non-public offering financing does not exceed 6 billion yuan, but the final actual raise net amount is only about 2.242 billion yuan.

September 2008, the Beijing-Orient and the Hefei People's government and its investment platform signed an agreement, announced in Hefei construction total investment of 17.5 billion yuan thin film transistor liquid crystal display (TFT-LCD) 6 Generation line project. June 2009, the Beijing-Orient Non-public offering of shares, a total of 5 billion shares issued a-shares, the issue price of 2.4 yuan/unit, the total amount of fund-raising 12 billion yuan, raise the net amount of 11.783 billion yuan.

2010, BoE issued a shares in private, a total of 2985049504 shares of RMB, 3.03 yuan/share, the total amount of funds raised 9.045 billion yuan, raise the net amount of 8.944 billion yuan.

The above additional, four times BoE total financing 25.147 billion yuan, five years four times, Beijing Oriental Capital market financing big name spread, investors also sealed it as "burning money machine."

Beijing Oriental Goods Push Minister Jing said to the media, Beijing and east of such large-scale investment, is to enhance competitiveness, have the opportunity to return shareholders. She cited, for example, that Beijing and Tokyo had lost for years, but the first half of the profit was over 800 million, which also shows that long-term investment in the enterprise will be rewarded.