Shenzhen Enrich Electronics Co.,Ltd

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Company News >> BOE: Multiple LCD production line depreciation expiration Product cost competitiveness will be further enhanced
 On July 6, BOE made public the record sheet of investor relations activities, which mentioned that in the first quarter of 2023, the company's depreciation amounted to about 8 billion yuan. Stock depreciation, in recent years the company has a number of LCD production line depreciation expiration, LCD product cost competitiveness will be further enhanced. At present, the LCD production line has gradually entered the maturity period from the high-speed development stage of large-scale production expansion, and the company's future capital expenditure will mainly focus on the company's strategic planning, focusing on the strategic landing, including continuing to improve the global competitiveness of AMOLED, consolidating the existing competitive advantages, accelerating the transformation and upgrading of the business; continue to improve the intellectual services, IoT solutions, accelerating the integration of hard and software transformation and upgrading, and building the company's IoT core capabilities. IoT core capabilities, etc. Specific capital expenditures include new projects, final payment of constructed projects and maintenance of existing production lines.
 
In terms of the panel industry's crop rate, BOE pointed out that in 2023, as the domestic brand factory stocking demand improves and procurement gradually recovers, panel factories will cautiously improve the crop rate and continue to practice the consensus of "on-demand production, dynamic control of production and healthy development". According to the consulting organization data, in the first quarter of 2023, the LCD industry average crop rate of about 74%, the second quarter of the LCD industry as a whole crop rate maintained at about 80%.
 
For the LCD industry competition pattern, BOE said that the second quarter of 2022 to the first quarter of 2023, LCD field of fluctuation is larger, this industry fluctuations and the previous industry fluctuations is different, in addition to the industry's own development law, the industry is affected by the external uncertainty factors. First, the concentrated demand release in 2021 has overdrawn part of the consumption in advance, resulting in rapid and large fluctuations in demand; second, the instability of the global situation has led to the tightening of the consumer spending mentality and lack of willingness. The company believes that as the above uncertainties are gradually digested, the industry's own development law plays a leading role in the supply and demand relationship will gradually recover, and the industry will return to healthy growth. 2023 panel industry is in the process of restoration, the price of large-size LCD products has continued to rise since the first quarter.

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