It is rumored that TCL Huaxing/BOE/Huike etc. bid for the CEC Panda LCD panel industry structure or face a major change
Recently, according to Wit Display reports, BOE, TCL Technology (TCL China Star), Huike, AVIC International (Tianma), etc. intend to expand the scale of panel production capacity and consolidate market advantages through the acquisition of CLP Panda.
In recent years, as competition in the LCD panel market has become increasingly fierce, the price of its products has continued to fall, causing some panel manufacturers to lose money. South Korean companies Samsung Display and LGD also announced that they will withdraw from the LCD market by the end of this year. . For Chinese companies, this is a good opportunity to expand the market.
At the 2019 performance exchange meeting, Li Dongsheng said, “The industry has entered a difficult period of operation and there are more opportunities for mergers and acquisitions. We expect that the entire semiconductor display industry will have more opportunities for mergers and acquisitions this year and next year. In addition. China’s new production capacity and the number of companies in this industry are relatively large, and some companies are not particularly large, so we will actively look for Mu0026A targets that are valuable for the company’s future growth.'
However, Due to the sluggish terminal market, BOE, Huike, and Tianma have all delayed the delivery time of panel equipment. In addition, TCL Technology Li Dongsheng also said that restructuring and mergers will consider price issues. Generally speaking, these companies will be more cautious about mergers and acquisitions. As for which company will acquire CEC Panda? The probability of a successful merger remains to be seen.
It is understood that CEC Panda was established in 2012, and its main products are TFT-LCD panels, color filters and LCD modules. The flat panel display began to invest in the construction of the liquid crystal panel project in 2013, with a total investment of about 28.9 billion yuan. It was put into trial production on March 31, 2015. The main project of the project reached the project design goal in November 2016.
In January of this year, East China Technology issued an announcement stating that in view of the imbalance between production and demand in the LCD panel industry this year, the price of some products fell by up to 30%. At the same time, economic growth is slowing and there is a trend of oversupply in the panel market. It is expected that the price of LCD panels will not rebound sharply in the short term. The company has conducted impairment tests on the asset group of the 8.5-generation TFT-LCD production line project. The result is that it intends to calculate the Panda flat panel. Asset impairment was 3.26 billion yuan. (Jiwei)