China LCD Industry Situation and Countermeasures.docVIP

 PAGE \* MERGEFORMAT 10 China LCD Industry Situation and Countermeasures October 30, 2004, China’s largest LCD panel maker BOE Technology Group Co., Ltd. (referred to as BOE) issued a public notice, said: Third-quarter earnings per share -0.14 yuan, down by 122.86%. BOE given explanation is that: TFT-LCD market, price declines, research and development expenses increased significantly. BOE’s loss, by the relevant securities analysts interpreted as a ‘LCD panel industry is undergoing a cyclical downturn’ results. Almost the same time, the domestic LCD panel on the Five Dynasties ‘an entry that is behind’ has spread, some experts and officials have begun to draw attention to Chinese enterprises: caution into the LCD panel production! In this way, a question placed in front of Chinese enterprises: in the global LCD TV industry booming today, the Chinese enterprises in the end is actively seeking to enter or resolutely refused to enter the LCD panel industries? Obviously, this answer to the question bears on China’s LCD TV industry’s future development plans. When we see the BOE undesirable when the transcripts, two representatives of enterprises from Taiwan’s AU Optronics LCD and Samsung Electronics of the report card brought us is another way of thinking. It was reported that AU Optronics first quarter of 2004 turnover of 41.3 billion Taiwan dollars, equivalent to 2.26 times the same period last year; profit of 11.7 billion Taiwan dollars, equivalent to 20 times last year, AU Optronics explanation given are: the successful fifth-generation panel production line put into production, and yield increased (from Nikkei BP Network). Samsung’s LCD panel this quarter, total sales of 12.53 billion U.S. dollars, gross profit of 2.39 billion U.S. dollars (from Dayang message). Even considering the AU Optronics and Samsung Electronics, the third and fourth-quarter LCD panel-to-business profit contribution rate will decline, we continue to believe that its LCD panel on