In the past 10 years, as China's reliance on LCD panels has increased, LCD manufacturers from Korea and Japan have launched an attack on our traditional color TV market. Faced with this epoch-making product that is thin, light and high-definition, Hua has
Traditional color TV companies were unable to resist, and their market share was quickly eroded.
At that time, some Chinese companies spent tens of billions of dollars to build color TV production lines that were less than a few years old. Not only were they facing huge losses, they would also be eliminated. Not only that, the LCD giants also imposed a strict LCD technology blockade on Chinese color TV companies. Domestic color TV manufacturers We have to spend huge sums of money to purchase the key component of LCD panels from them, causing the LCD panels to account for more than two-thirds of the cost of the entire LCD TV. In the past two years, my country's annual LCD panel imports have reached tens of billions. Second to chips and oil, it can be said that my country's color TV industry is completely controlled by foreign countries, and it can even be said that the entire electronics industry can only survive on its knees.
"Bang!" Hearing this, Zhu Zhu couldn't help but burst into laughter. "Not to mention chips and oil, I didn't expect that a small LCD panel could be so bullying."
"Don't we think of ways to break through their technological blockade and build our own LCD industry?" Xiao Lin asked.
"Of course there is." Fu Jie said: "In the past 10 years, many domestic companies have tried their best to fight against foreign countries. Although they have achieved some results, they have also paid an extremely painful price."
"In 1999, Jilin Caijing spent 84 million yuan to introduce my country's first generation 1 LCD production line from Japan's DTI, but it has been eliminated by others. However, it has been unable to break through the bottleneck of low yield and has never been able to achieve mass production. .Similarly, Nanjing Xinhua Ri also spent 54 million yuan to introduce a 1st generation production line from Japan nec, but it has been unable to mass-produce it after returning to China. In 2002, Shanghai Radio and Television Group and Japan nec jointly invested 10 billion in a joint venture to build a 5th generation production line in Shanghai. production line, but Shanghai Radio and Television Group has never been able to master the core technology, and the cooperation ultimately failed."
"There is another very famous company that wants to find a new way, but it also paid a heavy price for it. I believe everyone should know about it." Fu Jie said this and looked at Bai Shuo.
Bai Shuo: "Mr. Fu, are you talking about the former leading color TV company in my hometown?"
Fu Jie nodded: "Yes, Changhong Group was once the leader in color TV in our country, and it was very prosperous for a while. But in order to break through the barriers of LCD panels, they bet on plasma displays. Who knows that they invested huge sums of money
After spending a lot of time, I found that I was going in the wrong direction, and I still haven’t been able to get out of the pit.”
Bai Shuo also sighed: "No matter how much money you invest in the technology industry, you are not afraid, because as long as a technological achievement is recognized by the market, you may be able to earn back all the investment, but if you go in the wrong direction, it will be fatal.
.”
Zhong Pengcheng asked: "So many of our companies have failed on this road, shedding blood and tears. Is it possible that no company can break out of the siege?"
"Of course there is. Didn't I say that we have paid a heavy price but we still have some achievements. At present, a company in China has finally broken out of the opponent's blockade and found its own LCD road.
road."
"Wow, even Changhong can't do it. Which company is so awesome?" Cao An said in surprise.
Fu Jie: "This company is the BOE of the imperial capital."
Bai Shuo's eyes lit up. Although this company is not too famous now, it will indeed be a heavyweight in the industry in the future. However, Bai Shuo has not done much research on this company and does not understand the backstory of this company.
What kind of extraordinary journey have you experienced?
"Oh?! How did this company stand out?"
Fu Jie said: "The path taken by BOE is different from other companies. It does not simply introduce technology and production lines, nor does it try to change the track. It chooses to focus on acquisitions and aims to master core technologies. In 2000
Around the year, BOE acquired the LCD business of Hyundai Electronics with a huge investment of 380 million yuan. After absorbing and developing technology, it invested another 1.2 billion yuan to build a fifth-generation production line. After some unknown and difficult development, it finally
Mass production was achieved in 2005."
"Yes!" Cao An said excitedly: "This company is so awesome, it is really the pride of the Chinese people."
Fu Jie shook his head and smiled bitterly: "Behind the achievements, do you know how much this company has paid? In the course of more than ten years of research and development, BOE has actually been in a state of losing money and losing money again. I thought that in 5
The current situation can be alleviated after the foundry line is put into production, but I never expected that the next two years after mass production would be the two years with the largest losses."
"What?" Cao An's smile became stiff.
"Why is it that everyone else is making money, but our own company is still losing money after breaking through the barriers?" Liang Ying was also very confused.
Fu Jie: "Yes, BOE suffered a huge loss of 1.6 billion in 2005 and another 1.7 billion in 2006. The main reasons are that the last LCD trough lasted for a long time and the entire industry has not been able to recover well. The second reason is that the international
The giants used price control to suppress the entire LCD industry. By 2007, BOE was unable to repay its due bank loans due to huge losses, so it could only beg the bank for an extension of the loan..."
Bai Shuo was moved when he heard this and said with emotion: "Such enterprises are the hope of our country and the soul of national industry. Our country should not let such enterprises shed blood and tears."
Fu Jie smiled and said: "Mr. Bai is right. If BOE didn't have the support of the country, it would definitely not be able to persist to this day. Those foreign giants have obviously ignored our determination to develop the LCD industry. When BOE was in the most difficult time,
Many local governments have seen the future of the LCD industry and have injected capital and policies, allowing BOE to not only survive, but also resist last year's financial crisis."
After hearing this, everyone's depressed mood finally got some relief.
"Having said so much, Brother Zhen, do you want us to also support BOE?" Bai Shuo asked.
Xiao Zhen said: "One BOE alone is not enough to support the entire LCD industry in China. What we need is more companies like BOE."
Liang Ying: "Brother Zhen, what do you mean?"
Xiao Zhen: "Fu Jie has just said that the LCD industry is cyclical, and the outbreak of the financial crisis last year coincided with the cyclical trough of the LCD industry, causing the world's LCD panel prices to collapse. This time even Three Star and LG
Unable to bear it, we slowed down our pace one after another and stopped investing in the LCD industry."
Liang Ying suddenly said: "Brother Zhen, what do you mean... let's learn from the methods of Goryeo and make another big comeback?"
Xiao Zhen nodded and said: "Yes, our country is vast in land, rich in resources, and has a large population. It has the world's largest consumer market. This is a rare opportunity. At present, the key technology of LCD panels has made major breakthroughs. If we buck the trend and increase our positions, we will continue to
Start building 6th, 7th, and even 8th generation production lines to launch a comprehensive counterattack for the LCD panel industry. When this downturn passes, perhaps the pattern of this industry will change again..."
Xiao Zhen's words cheered everyone up. If Xiao Zhen said it really is true, this is really a major counterattack against the national industrial strategy. Once successful, it will be of great significance.
"Then what should be done specifically?" Liang Ying said.
At this time, Xiao Zhen looked at Fu Jie again.
Fu Jie immediately changed a ppt and introduced to everyone: "The Xiao Group began to lay out the LCD industry as early as the end of last year. Not only did we establish cooperative relationships with many domestic companies including BOE, we also acquired and established a
It is a LCD manufacturer with good size and scale. However, if we want to further build and develop 6th, 7th or even 8th generation production lines, the investment required is not a small amount, it can easily reach tens of billions. Just the Xiao Group’s own
The strength does seem a bit weak."
"Brother Zhen, your Xiao Group has made tens of billions this time. Are you still short of money?" Cao An said.
Before Xiao Zhen could speak, Fu Jie answered: "The industries involved in the Xiao Group are also very wide, and there are many places where money is needed. Besides, we can't invest all the money in one place."
Liang Ying asked: "How much money is needed and what is the specific plan?"
Fu Jie pulled up a page about the investment plan from the ppt.
"We plan to use the Xiao Group's LCD panel company as a basis to allocate 60% of its shares to external financing of 20 billion, which will be used for the establishment of sixth-generation production lines and the research and development of seventh- and eighth-generation production lines."
"Brother Zhen, the current valuation of your company is more than 20 billion. If you raise 20 billion, you will get 60% of the shares, but it is a bit of a loss." Liang Ying said with a smile.
Xiao Zhen didn't care at all: "As long as we can break through the foreign blockade and realize the revitalization of our country's industry, we are all like-minded friends, and it doesn't matter who gets more benefits. Besides, although the investment of Xiao's company exceeds
20 billion, but many of the funds are used for technology research and development. These technologies are worthless before they mature. But what you invest is cash. You must know that this is an era where cash is king. It should be said that this method is right
It’s fair on both sides.”
After Xiao Zhen finished speaking, everyone discussed it. Liang Ying was the first to say: "I think Xiao Group's plan is very complete, and this project is related to national strategy. With the support of the country, what do we have to fear? You guys
What do you think?"
Cao An smiled and said: "Haha, the Xiao Group is so generous, of course I support it 100%."
Led by Liang Ying and Cao An, everyone present also expressed support.
At this time, Xiao Zhen looked at Nangong Ming who said nothing: "Uncle Ming, what do you have in mind?"
Nangong Ming smiled and said nothing, looking at Bai Shuo who was thinking without saying a word.
Under the gaze of everyone, Bai Shuo came back from his thoughts.
"Brother Shuo, please express your opinion. You shouldn't have any objections, right?" Cao An urged.
Bai Shuo frowned and said, "No! I have a different opinion."