The 8.5th generation TFT-LCD production line built by BOE A in Beijing's Yizhuang was unveiled to the outside world for the first time yesterday. The reporter saw at the scene that the project construction project has been basically completed, and the first phase (the production capacity of 30,000 glass substrates monthly) has been fully installed, and the second phase of the equipment has begun to move in. According to the plan, BOE's 8.5-generation line will be officially put into production on the 28th of this month, and volume production will be realized in the third quarter of this year. It is expected that the target of 90,000 glass substrates will be achieved by the end of 2012.
BOE A spokesperson Zhang Yu told reporters that after the 8.5-generation line reached capacity, BOE A's share in the international LCD panel market will jump from the current 2-3% to about 8%, and ranks among the top six LCD panel makers in the world. He also disclosed that the Beijing Municipal Government is making efforts to create a Beijing Digital TV Industrial Park with the 8.5th generation of BOE as the core. At present, Yizhuang Base has land parcels that can be used by the future BOE to build a higher generation line.
The total investment of BOE 8.5-generation line is 28.03 billion yuan, and the products are mainly based on 26- to 55-inch LCD TV display modules. It is expected that the annual output will reach 14 million LCD panels after full production. It is reported that Taiwan’s TPV has established a LCD display production line with 10 million units next to BOE’s 8.5 line and the project has entered the construction phase. Chen Yanshun, president of BOE A, said that this will provide a more stable sales channel for the 8.5 generation line. BOE 8.5-generation line will ensure the supply capacity of 3 million units for the TPV project, while BOE will develop its own machine production capacity of 3 million units per year, and the remaining 7 million units of production capacity will be used to supply other manufacturers. At present, BOE has signed letters of intent for the cooperation of Haier, Hisense, Skyworth, Konka, Changhong and other brand manufacturers on the 8.5-generation line.
In addition, in the AM-OLED industry, the next-generation flat-panel display technology that has attracted much attention since last year, BOE is also increasing investment in R&D and manufacturing, and is actively laying out. It is reported that, relying on the 4.5th generation TFT-LCD production line in Chengdu, BOE has started the AM-OLED production line transformation, and actively promote the construction of AM-OLED high generation line, its AM-OLED 5.5 generation production line has completed the technical program. Currently, BOE can already produce 2.8-inch AM-OLEDs and 4-inch AM-OLEDs. In the next three to five years, it will also gradually introduce information such as IT and TV, and AM-OLED display panels for video terminals. Analysts pointed out that AM-OLED products can currently only be produced in large quantities by Samsung. If the pace of development is accelerated, it is entirely possible for the AM-OLED industry in China to achieve a turnaround.
Zhang Yu revealed that starting from the second quarter of this year, the international LCD panel prices have averaged between 2 and 3 US dollars, although the margin is not large, but still have a positive effect on the improvement of the performance of LCD panel manufacturers. According to this estimate, Samsung and other manufacturers can reverse losses after the third quarter of this year. According to Chen Yanshun, in view of BOE A, although the 6th-generation line and 8.5-generation line have been put into operation one after another, the depreciation cost of BOE A will be substantially increased from more than 3 billion yuan to over 5 billion yuan this year, but the company’s current debt ratio remains at 44%. The reasonable level is so that as long as the company maintains a good cash flow status, BOE A's performance and financial status can gradually improve with the industry environment. Although banks are currently tightening monetary policy, BOE has a smooth financing and its debt interest rate remains at the benchmark interest rate. Since the second quarter of this year, the company’s cash flow has been in a positive state.
BOE A spokesperson Zhang Yu told reporters that after the 8.5-generation line reached capacity, BOE A's share in the international LCD panel market will jump from the current 2-3% to about 8%, and ranks among the top six LCD panel makers in the world. He also disclosed that the Beijing Municipal Government is making efforts to create a Beijing Digital TV Industrial Park with the 8.5th generation of BOE as the core. At present, Yizhuang Base has land parcels that can be used by the future BOE to build a higher generation line.
The total investment of BOE 8.5-generation line is 28.03 billion yuan, and the products are mainly based on 26- to 55-inch LCD TV display modules. It is expected that the annual output will reach 14 million LCD panels after full production. It is reported that Taiwan’s TPV has established a LCD display production line with 10 million units next to BOE’s 8.5 line and the project has entered the construction phase. Chen Yanshun, president of BOE A, said that this will provide a more stable sales channel for the 8.5 generation line. BOE 8.5-generation line will ensure the supply capacity of 3 million units for the TPV project, while BOE will develop its own machine production capacity of 3 million units per year, and the remaining 7 million units of production capacity will be used to supply other manufacturers. At present, BOE has signed letters of intent for the cooperation of Haier, Hisense, Skyworth, Konka, Changhong and other brand manufacturers on the 8.5-generation line.
In addition, in the AM-OLED industry, the next-generation flat-panel display technology that has attracted much attention since last year, BOE is also increasing investment in R&D and manufacturing, and is actively laying out. It is reported that, relying on the 4.5th generation TFT-LCD production line in Chengdu, BOE has started the AM-OLED production line transformation, and actively promote the construction of AM-OLED high generation line, its AM-OLED 5.5 generation production line has completed the technical program. Currently, BOE can already produce 2.8-inch AM-OLEDs and 4-inch AM-OLEDs. In the next three to five years, it will also gradually introduce information such as IT and TV, and AM-OLED display panels for video terminals. Analysts pointed out that AM-OLED products can currently only be produced in large quantities by Samsung. If the pace of development is accelerated, it is entirely possible for the AM-OLED industry in China to achieve a turnaround.
Zhang Yu revealed that starting from the second quarter of this year, the international LCD panel prices have averaged between 2 and 3 US dollars, although the margin is not large, but still have a positive effect on the improvement of the performance of LCD panel manufacturers. According to this estimate, Samsung and other manufacturers can reverse losses after the third quarter of this year. According to Chen Yanshun, in view of BOE A, although the 6th-generation line and 8.5-generation line have been put into operation one after another, the depreciation cost of BOE A will be substantially increased from more than 3 billion yuan to over 5 billion yuan this year, but the company’s current debt ratio remains at 44%. The reasonable level is so that as long as the company maintains a good cash flow status, BOE A's performance and financial status can gradually improve with the industry environment. Although banks are currently tightening monetary policy, BOE has a smooth financing and its debt interest rate remains at the benchmark interest rate. Since the second quarter of this year, the company’s cash flow has been in a positive state.
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