Text/JING Audit/Zi Yang Correction/Zhi Qiu
In 2021, the global chip crisis continues to spread, not only the consumer electronics and automotive industries are affected, but also the display industry can not be avoided. In this context, a Chinese company bucking the trend is the former Adou - BOE.
Net income of 25.7 billion yuan in one year
BOE was formerly known as Beijing Electron Tube Factory, and in the 1990s, Wang Dongsheng led BOE to carry out reforms and successfully achieved a turnaround.
However, as more and more advanced overseas displays enter the Chinese market, BOE's market share began to decline. Wang Dongsheng realized that BOE wants to develop in the long run, and only technology can go.
But what he didn't know was that the self-research decision made JD.com lose money for 14 consecutive years. Even if the government continued to give policy support and financial assistance during the period, BOE still lost more than 300 billion yuan.
It is gratifying that BOE money did not burn in vain, through the acquisition of South Korea's modern LCD production line, BOE successfully cut into the LCD display market and obtained many patents. On this basis, BOE continues to expand its product line and has now achieved the world's first place in many subdivisions.
BOE's 2021 performance report shows that the company's operating income is between 215 billion and 220 billion, an increase of 59% to 62% year-on-year. The increase in net profit is more than four times, and it is expected to reach 25.7 billion.
Break the monopoly of Samsung technology
Looking at the development history of BOE, it can be found that technological innovation is far more important than financial assistance. The core reason why BOE can become a global LCD brother is that BOE has broken the monopoly of Samsung technology and successfully established a competitive advantage in related fields.
Although BOE relies on buying, buying and buying to find opportunities to turn around, in the process of development, it has always maintained a very important attitude towards technology.
This feature is not only reflected in the liquid crystal display panel, but also in the OLED display market dominated by Samsung.
Thanks to technological upgrades, NH Investment & Securities data show that from 2018 to 2020, boe OLED display global market share rose from 1% to 8%, ranking third in the world.
In the past year, BOE has successively won orders from apple, glory, ASUS and other manufacturers. Affected by customer diversification, BOE's market share is expected to reach a new peak in the new year.
Technology debut, raise eyebrows and breathe
In fact, after entering 2022, BOE has already sent out a lot of good news. According to Weifeng Network, BOE has created the world's first 500Hz refresh rate display, in the field of games, work and other fields, this high-brush display can bring users a better experience. Not only that, in the field of miniLED technology, Chinese companies also occupy a dominant position.
It is worth mentioning that many people think that BOE's high brush technology is just a showmanship and has no practical value.
Because the human eye's perception of the refresh rate reaches the limit around 240Hz, continue to increase the refresh rate, the screen display effect is not obvious, but from another point of view, BOE can be based on this technology, develop a more rapid refresh rate adjustment, lower power consumption display panel, a change in the image of the old technology backwardness, in the screen market completely raised eyebrows.
Write at the end
At present, THERE is still a certain gap between BOE's market share and Samsung and LG, but BOE's development momentum is significantly stronger than that of the other two manufacturers. Not only that, but the overall market environment is also more favorable to Chinese companies.
China has already taken the lead in the new energy vehicle and smart home industries, and both of these markets need to consume a lot of screens. In the context of domestic substitution, Chinese screen manufacturer BOE is expected to get more development opportunities and achieve higher market share.