Electronic enthusiasts at 8 o'clock in the morning: TCL Group, which has been suspended for a long time, is brewing new investment and business integration plans. Among them, the semiconductor display sector is the focus of attention in the industry.
On the evening of July 12, TCL Group announced that the company intends to purchase 10.04% of the shares held by Huaxing Optoelectronics held by Changjiang Hanyi, Xingyu Limited, Lin Zhou Xinglan, Lin Zhou Xingyong, Lin Zhou Xingyuan, Lin Zhou Xinglian by issuing shares . The transaction price was 4.034 billion yuan, which was paid by issuing shares.
After the completion of this transaction, TCL Group will directly hold 85.71% equity of Huaxing Optoelectronics. In recent years, Huaxing Optoelectronics has been the mainstay of TCL Group's profits, and is currently the second-largest company in mainland China's TV LCD panel manufacturers. At the same time, according to data from the research institute IHS, in 2016, Huaxing Optoelectronics accounted for 13% of the global TV panel market.
The establishment of Huaxing Optoelectronics is an important measure of TCL's vertical layout of the upstream industrial chain. With the gradual rise of the display panel industry, TCL is also deepening the integration of the industrial chain.
Low-key "profit cows"Unlike BOE's initial acquisition of a Korean company and further research into technology, Huaxing Optoelectronics recruited talents for independent research and development from the beginning. In this capital-intensive and technology-intensive industry, Huaxing Optoelectronics has experienced ups and downs so far. Today, efficiency and technology are the two major labels of Huaxing Optoelectronics.
Judging from the financial report, Huaxing Optoelectronics is a high-quality asset of TCL Group, which contributed half of the company's profits in 2016. As a profit cow of TCL Group, Huaxing Optoelectronics is quite low-key, which is also determined by the industry attributes of To B business. Insiders of Huaxing Optoelectronics told reporters that TCL Multimedia currently accounts for 40% of Samsung ’s panel supply and Samsung ’s 20%. The remaining customers are Hisense, Skyworth and other domestic five major TV manufacturers.
Despite the huge profits, the cyclical nature of the panel industry also makes the performance of manufacturers vary by years. Continued investment in the next generation of production lines when performance is sluggish is the key to winning in the next round of competition, and the cost of tens of billions of dollars requires continuous funding support. In addition to the government's strong support, Huaxing Optoelectronics also hopes to bring a larger financing platform and development prospects through listing.
However, the reorganization of Huaxing Optoelectronics and Shenzhen Textile has not been fruitful twice. After the backdoor listing was stranded, this year TCL revolved around the reorganization plan of Huaxing Optoelectronics frequently. Just in May, TCL Group transferred about 37% of the shares held by "Hua Xian Optoelectronics" to Huaxing Optoelectronics. The logic behind it is to make the upstream and downstream companies of the panel more closely integrated. Among them, Huaxing Optoelectronics mainly produces panel glass, and Huaxian Optoelectronics focuses on modules. The cooperation between the two will be closer with the construction of the production line.
The acquisition of Huaxing Optoelectronics by TCL Group is also a sight for the future of semiconductor displays. The announcement stated that the transaction had two main purposes. The first is to further strengthen the management and control of Huaxing Optoelectronics, which is conducive to enhancing the overall operating efficiency of listed companies and improving shareholder returns; second, the listed companies intend to implement the transaction to allow Huaxing Optoelectronics ’key management personnel and core employees to hold the listing Company shares, which will help improve the company's incentive system and talent attraction.
But in the field of semiconductor display, there is still a gap between peers such as Huaxing Optoelectronics and Samsung. The above insiders admitted to reporters: "Huaxing Optoelectronics' technology is not the most advanced. At this stage, while maintaining efficiency leadership, it is to pursue product leadership and leapfrog to technological leadership. Compared with the world-class Samsung, Sharp, Huaxing Optoelectronics is still following up quickly. At present, our efficiency is higher. "
Overcapacity?TCL Group has spared no effort to invest in the upstream industry chain. Now Huaxing Optoelectronics has three production lines for mass production. In addition, TCL Group concentrated its resources in the semiconductor field to Huaxing Optoelectronics.
But it should be pointed out that external competitors are also very strong. In the announcement of the acquisition, TCL Group also listed the risks of overcapacity. From 2017 to 2019, Innolux Optoelectronics Gen. 8.6, Huike Electronics Gen. 8.6 Gen., BOE Fuzhou Gen. 8.5 Gen., BOE Hefei Gen. 10.5 Gen., Huaxing Optoelectronics Shenzhen Gen. 11 Gen., China Electronics Xianyang Gen. 8.5 Gen. , China Electronics Chengdu 8.6th generation line, Sharp Guangzhou 10.5 generation line, etc. have been put into production, domestic LCD panel production capacity will exceed South Korea to become the world's first. A large part of Huaxing Optoelectronics' production capacity still needs to be digested through external sales, so there is a possibility of price reduction.
According to statistics from Sigmaintell, in the first half of 2017, Chinese display panel manufacturers maintained high growth in production area, accounting for 24.5% of the global display industry, an increase of 22.7% year-on-year. Even in the case of depreciation of the RMB, the profitability of Chinese mainland panel manufacturers continues to increase. It is expected that in the first half of 2017, the comprehensive operating profit margin of the main panel manufacturers in Mainland China will reach 12%, an increase of 9% year-on-year, which is also the last 5 years. The highest level. At the same time, South Korea's display industry continues to increase investment in the large-sized mid-to-high-end market and the AMOLED market, showing rapid growth in the OLED materials and equipment industry. Competition between Chinese and Korean companies has also become the focus of attention.
Faced with competition, TCL Group tried to realize its own advantages by continuously accumulating factory technology through Huaxing Optoelectronics. Because the production of liquid crystal panels requires particularly high external environments such as air cleanliness, the upgrade of each link requires slowly accumulating technology in the actual production process. When the LCD panel technology is mature, the improvement on the production line becomes particularly important.
Today, the factories of Huaxing Optoelectronics are all automated and intelligent production. Zhang Feng, director of Huaxing Optoelectronics, told the 21st Century Business Herald: "After using some intelligent control, first, the manufacturing cycle from production to output can be shortened by 38%; Second, defective products can be reduced by about 42%; third, through warehouse automation and deployment, the time period from our output to delivery to customers can be shortened by 32%; fourth, the defect rate of products can be reduced by 28%. "
On the other hand, TCL Group wants to find another way in flexible display. For quantum dot technology and OLED technology, it also has a two-pronged approach. At the same time, it also established a research room to develop flexible panel printing production technology. Zhang Feng said: "The flexible display technology has three main problems, one is product design, the other is equipment processing technology, and the third is material. The latter two are more critical. The technology of the previous processing technology is basically concentrated in Korean companies. The materials mainly rely on Japanese companies, but now the technology in these fields is slowly being released. "
Disclaimer: The works reproduced on the website of Electronic Audiophile all indicate the source as much as possible, and all rights of the owner of the work will not be transferred due to the reprinting of this site. If the author does not agree to reprint, please inform this site to delete or correct it. The reprinted works may be changed in the title or content.
SFC Converter,Shore Power Source,Shore Frequency Converter,SFC Static Frequency Converter
Jinan Xinyuhua Energy Technology Co.,Ltd , https://www.xyhenergy.com