Large-size panel market cannot be optimistic BOE’s ability to turn losses is still unknown

BOE executives said that after the mass production of the 8.5-generation line, it will lower the production cost of the product and hopefully improve the company's performance and even achieve profitability. However, the market conditions for large-size panels are not optimistic.

At the 14th Expo, BOE exhibited a 55-inch LCD screen for the first time, and Zhang Yu, vice president of BOE, said that this is the first 55-inch LCD screen independently produced in mainland China. This product is expected to help BOE to lose money.

According to BOE's plan, BOE has invested 28 billion yuan in the 8.5-generation line, which will be officially put into production in June and mass production in the third quarter. The 8.5-generation line mainly produces displays and modules for 26-inch to 55-inch LCD TVs.

If all goes well, BOE will also use this to smoothly turn losses into losses.

Since its listing in 2001, BOE has suffered huge losses.

It is understood that the LCD screen accounts for about 70% of the cost of color TV, while the current domestic production of LCD TVs more than 32 inches, LCD screens are used foreign brands. "BOE's mass production of the 8.5-generation LCD screen will end the import-dependent situation of large-size LCD TVs in China."

It is for this reason that, despite BOE’s repeated losses over the past few years, it has always been able to raise huge amounts of money, which has also become the focus of media skepticism.

Zhang Yu said that after the mass production of the 8.5-generation line, it will lower the production cost of the product and hopefully improve the company's performance and even achieve profitability.

However, the market conditions for large-size panels are not optimistic.

Since May 2010, the prices of LCD panels have continued to decline for 11 consecutive months. The price of the 32-inch panel, which was $210 in April of last year, fell to $140 in April of this year. Since the third quarter of last year, panel companies have suffered losses. "Samsung and LG began to lose money in the fourth quarter of last year." Peng Shuanglang, executive vice president of AUO's global business, told the media, "AUDA has also suffered losses for two consecutive quarters."

Fortunately, from the second quarter of this year, the global panel market began to pick up, and prices rose slowly. But whether this will help BOE to lose money in the year is still unknown.