Tasted the ups and downs on the LCD panel, and chose the triumphant pursuit

On the LCD panel tasted the ups and downs salty Tcl, the choice of the pursuit.

November 16, the 15th session of the opening day of the High Fair, TCL Group (000100.SZ) LCD panel Enterprise Huaxing Photoelectric in Shenzhen to start its second phase of the 8.5-generation panel production line construction. The project's total investment of 24.4 billion yuan, design capacity of 100,000 pieces/month, is expected to be put into production in the third quarter of 2015, when the new annual output value of 22.7 billion yuan.

As the most important upstream 0 components of color TV industry, LCD panel is the fourth largest single import product after petroleum, chip and iron ore in China. Long-term dependence on imports of embarrassment, so that China's information industry suffers from the "lack of core less screen" pain. 2009, despite the adverse market situation after the global financial crisis, TCL Group launched huaxing Photovoltaic project.

Four years ago, let go of a fight, now unexpectedly become the whole TCL group operating performance of a bright spot. Li, chairman of TCL Group, said that the first phase of the project is only 17 months into production, 10 months to achieve full production full sales. In the first three quarters of this year, Huaxing realized sales revenue of 10.6 billion yuan, net profit of 1.42 billion yuan, accounting for TCL Group net profit of 81%.

Hua Xing photoelectric CEO thin Lianming revealed, two phase project 24.4 billion yuan investment does not rely on shareholder contribution, but by huaxing photoelectric own funds, syndicated loans, equity financing three ways to solve.

Investment up to 24.4 billion yuan

"Huaxing photoelectric realization of the year production, that year profit, this is the first time in the global LCD panel industry." "Thin Lianming in the 21st Century Economic report" reporter interview, said Huaxing photoelectric Although is the panel industry recruits, but its operating profit margin, EBIT (pre-tax profit), product yield indicators are ranked the forefront of the industry.

At present, the global LCD panel industry, including Samsung, LG Display, Taiwan, China's friends Tatsu, group creators, Japan's sharp, as well as the Chinese mainland's huaxing optoelectronics, Beijing Oriental.

Huaxing photovoltaic capacity of about half of the company to provide TCL group's color TV business, the other half of the external sales to other color TV enterprises. Li that, huaxing photoelectric changed the disadvantage of the lack of the upstream panel of Chinese color TV, help to promote the domestic panel self-sufficiency rate to 31%.

In accordance with the LCD panel industry's usual 1:5-led effect, huaxing photoelectric phase of the project brought about by the industrial cluster value of more than 100 billion yuan. For example, the Japanese glass substrate enterprise Asahi nitrate for the project's supporting investment amounted to 3 billion yuan.

Thin Lianming said that although the first phase of the project, despite good business, but also faces the bottleneck, mainly manifests in: First is the category is not complete, only can produce 28 inches, 32 inches, 48 inches, 55 inches and so on a few specifications; second, the main technology is the use of amorphous silicon, because of concern about the impact of machine-bed transformation capacity, failed to adopt CoA, Oxides and other new display technology.

Obviously, the two project on the one hand can let huaxing photoelectric achieve better scale effect, on the other hand can also use this to achieve technology upgrades. Thin Lianming revealed that the new project will be imported oxides, OLED and other new display technology, and accounting for about 30% of the overall capacity.

Zhang, deputy director of the National Development and Reform Commission, said at the beginning of the ceremony that at present, a new round of technological innovation, characterized by multiple links and multidisciplinary integration and integration development, is emerging, especially the information consumption represented by intelligent terminals and mobile internet shows a rapid growth trend. In particular, China has become the world's largest producer and consumer of color TVs, computers and intelligent terminals, providing a major opportunity for the local flat-panel display industry.

The explanation of "excess capacity theory"

However, from a historical perspective, the LCD industry has experienced a big ups and downs of the industrial cycle: from the time of great profits, when the big loss. In the next few years, China will have a number of LCD panels have been built into production. In this context, huaxing photoelectric second 8.5 generation line is naturally also facing the external "overcapacity" torture.

In this regard, Chinese Academy of Sciences Ouyang Zhongcan that the global LCD TV shipments are still increasing, the corresponding LCD panel from 2011 192 million to 2013 216 million, and will be more than 258 million pieces in 2016 years. At the same time, the market is booming demand for large-scale products, the area growth rate of television output is higher than the number of growth rate, is expected to 2016 average television size will reach 42 inches. The world's largest television set is now 32 inches, accounting for about 38% of the overall market.

Dissearch, a market-consulting agency, predicts that the proportion of products over 50 inches in 2013 will rise from 7% in 2012 to about 9%. Tcl at the January 2013 U.S. consumer Electronics Show on the display of a 110-inch high-definition TV "China Star", Konka and Beijing Oriental at the High Fair also exhibited a similar product.

According to industry practice, the average size of a television set is increased by an inch, which will consume a 8.5 generation panel production line.

"At present, China's large size flat plate self-sufficiency rate is only 30%, in the future to achieve the target of 80%." Ouyang Zhongcan that, as the market continues to grow, the LCD panel industry opportunities will be transferred to China, taking into account the enterprise production needs cycle, not timely expansion will not be able to meet the new market demand.

Thin Lianming reporters that with the diversity of display terminals, judging the supply and demand of LCD panels, can not static watching TV, but also to see the PC, tablets, mobile phones, as well as the future may appear more scenarios, "These consumer electronics terminals of the boom cycle is not consistent, its mutual impact has been to the upstream panel industry crest, The trough is no longer as obvious as it used to be.

Beijing Oriental Vice President Zhang Yu said that the future of refrigerators, automotive glass, smart home, Shopping malls window display and many other fields may be the application of the LCD panel. In fact, at this high fair, BoE shows the use of the refrigerator door, window display, family vegetables bar transparent display, do not "touch" that is "control" of the eye control display, as well as the use of anti-peep display of ATM machines. "Given the increased size of the existing terminals and the many new applications in the future, the production capacity of the LCD panel will not be excessive, but in short supply." "said Tommy.

And at the We conference, a foreign entrepreneur named "window of Opportunity" project, is committed to the car windows into a display and interactive Media Center, to achieve a variety of interactive social and gaming applications.

Thin Lianming to reporters that although Huaxing Optoelectronics is not worried about the industry overcapacity problem, but objectively speaking, the company has not experienced a complete industrial cycle, not blindly self-confidence, but must always have a sense of crisis and urgency, "so that in the industry are not loss or lose a little bit."