Chapter 1013 Crystal Agreement
“Two billion Chinese coins are not enough, but 1 billion is fine.”
Huang Dongsheng lacks confidence.
BOE’s current situation cannot give him confidence.
Xu Liang slowly shook his head.
Huang Dongsheng's heart thumped, and his face instantly turned pale.
Looking at this, Xu Liang smiled and said: "Mr. Huang, don't get me wrong. Since I have an appointment with Mr. Huang here today, it means that I have made my investment in BOE. The reason why I shook my head is that the amount of your targeted financing is too small. "
Huang Dongsheng instantly turned from worry to joy, "I would like to ask, how much does Mr. Xu intend to invest in us?"
"Ten billion"
Xu. Liang's tone was calm.
It's light and feels like a hundred dollars.
“How much?” Huang Dongsheng was stunned for a moment and quickly confirmed whether he heard correctly.
“Ten billion!”
Xu Liang pointed a finger and smiled.
Huang Dongsheng said nothing. At this moment, he suddenly felt like he was in a dream. It always felt a little unreal. Their company, which was often greeted by retail investors as their ancestors of the 18th generation, was so virtuous and capable that it could actually receive 10 billion investments?
The total market value of BOE's A-shares and B-shares now totals less than 3 billion Chinese dollars.
There is a problem! There must be something wrong here!
"Mr. Xu, are you going to acquire BOE?"
Huang Dongsheng looked at Xu Liang with complicated eyes, and he had mixed feelings in his heart.
Xu Liang smiled faintly: "Panels are a costly business. Samsung took 12 years to make a profit. Bayan manufacturers were better, but it also took nearly 10 years to become profitable.
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In addition, I heard that Mr. Huang proposed a famous Huang's law in the industry: when the price remains unchanged, the performance of the display panel should double every 36 months. "
Huang Dongsheng waved his hand and said modestly: "What Huang's law is, it's just a family talk.
What I mean by this is that we must continue to expand production capacity. If you want to make money tomorrow, you must lose money today. "
Xu Liang nodded slightly: "Samsung and LG are doing this in the semiconductor field, including the panel industry.
The lower the industry cycle is, the more we need to accelerate expansion! Countercyclical investing!
Because every downturn in the industry is a reshuffle and a good opportunity to overtake in corners. At the same time, the cost of expansion is still very low. ”
“Not bad! "
Huang Dongsheng said with firm eyes: "BOE has taken a detour before and learned many lessons of blood and tears.
Our fifth-generation line came in at the peak of the cycle. When it was put into production, it happened to catch up with the trough, so it lost blood for two years.
Previously, I advised my friends from four color TV companies: Now is the valley, hurry up and enter the market. After the production is put into production, it will be the peak, and you can quickly make your money back!
Alas, it's a pity..."
Xu Liangdao: "Did the foundation of BOE's LCD panels come from modern times? "
Huang Dongsheng: "Yeah. In the late 1990s, we had become a leading company in the CRT (cathode ray picture tube) field, but during a business trip to Japan, someone from Sharp gave me an electronic clock with a color LCD screen as a souvenir.
The product was small in size, light in weight, and had clear images. At that time, I had a hunch that LCD screens would probably replace CRTs and become the next direction in the display industry.
This matter is too important and affects the fate of the entire factory. I dare not make a decision easily.
After returning to the factory, I gathered all the highly educated young people and set up an industry research group to figure out the development direction of the entire display industry. After numerous inspections and demonstrations, I finally decided to bet on LCD. ”
Xu Liang nodded lightly. It sounded like this decision was light and nothing significant, but in fact it was a turning point in the fate of BOE and even the entire Chinese panel industry.
At that time, CRT technology was It still occupies a dominant position in the market. Major domestic manufacturers are still working hard to launch new equipment and production lines. Even the global TV overlord Thomson Group is still increasing its investment in CRT.
There is no absolute guarantee. The trend is that LCD will become the dominant player in the display industry.
BOE’s decision is a big risk.
You must know that BOE's CRT was the number one in the country at that time. It was equivalent to the industry boss saying that what he was doing had no future. This had a huge impact on the company.
Huang Dongsheng bet on LCD against all odds and secured the future of an industry.
Huang Dongsheng recalled with his eyes wide open.
“At that time, Japanese and Korean companies had relatively mature technology in TNF-LCD and had entered the stage of large-scale mass production. We were several years behind and faced huge technological blockades when entering this field.
< br>The display industry itself requires heavy investment, and doing research and development from scratch is not cost-effective in terms of speed and cost.
In fact, when drastic changes come, many companies do not have an insight into the direction of the trend, but they no longer have the courage and ability to chase the trend.
BOE was lucky. It happened to catch up with the Asian financial crisis or the Korean financial crisis. We scraped together US$380 million, which was about 3.2 billion yuan at the time, and acquired the LCD monitor of Hyundai Group as a whole. business.
At that time, our annual revenue was only 800 million, and our net profit was only 70 million, which was equivalent to burning the boat down.
Fortunately, the bet was right, otherwise BOE might not exist now. ”
Speaking of this incident, Huang Dongsheng smiled, unable to hide the pride and satisfaction in his heart, because this incident can be regarded as the most correct thing he has ever done in his life, second only to Agree to take over BOE.
Xu Liang praised: "Mr. Huang is very decisive.
In this comprehensively backward industry, if you want to break through the technological blockade, you can't do it without taking risks.
To achieve success, wisdom, courage and ability are all missing. No."
"Mr. , With only courage and no ammunition, how can we go to the battlefield to fight?
Betting on new technologies, acquiring or building new production lines, impacting production capacity, and enduring the industry cycle... which does not require money? ”
Huang Dongsheng lowered his head and thought deeply. What Xu Liang said is true. BOE needs money very, very much!
According to common sense, there is no reason for him to refuse tens of billions of investments.
"Mr. Xu, if you become BOE's major shareholder, how will you operate?"
Huang Dongsheng said directly.
He wouldn't mind giving up the company if it could make BOE better.
"The important thing is not what I want to do, but what Mr. Huang wants to do?"
Looking at his shocked eyes, Xu Liang continued with a smile.
“The biggest reason why I invested in BOE is Mr. Huang.”
“Me?”
"We Chinese people all say that a snake cannot survive without a head. If a company wants to succeed, it must have an excellent professional manager.
I have seen Mr. Huang, who has both decisiveness and sense of responsibility. A very good professional manager.
It is because of you that I am willing to invest heavily in BOE.
Without you, I would not give BOE a second glance.” >
Huang Dongsheng was encouraged by his affirmative tone and appreciative eyes.
A huge wave of warmth enveloped his internal organs, making him feel warm and wet in the corners of his eyes.
Since BOE started to lose money continuously, he has suffered too much criticism.
No matter where you go, you hear sarcasm and sarcasm.
Praise from Xu Liang, who is ranked second in Forbes, the richest man in China, a world-class business leader and a financial investor, is like a sweet spring nourishing his depleted heart.
The thought of 'A scholar will die for his confidant' lingers in his mind.
After taking a deep breath to calm down the excitement.
"It is my honor that Mr. Xu is willing to trust me. But BOE..."
Xu Liang waved his hand to interrupt.
“BOE’s development is your business, I’m only responsible for getting money.”
BOE has developed very well under the leadership of Huang Dongsheng, and he doesn’t want to add anything to the problem.
"Mr. Huang should know about the 'Crystal Conference'?"
Xu Liang changed the topic.
Huang Dongsheng nodded affirmatively.
Every panel company knows this.
In the six years from 2001 to 2006, six companies including Samsung, LG, Chimei, AUO, Chunghwa Picture Tubes, and Hannstar Color Crystal held a total of 53 "... Crystal Conference”.
The meeting is basically held once a month, and the main content is to exchange information and negotiate prices.
The most critical one is that when selling LCD panels in mainland China, several companies adjust prices together to jointly control the market.
These operations directly caused the price of domestic color TVs to remain high. LCD panels once accounted for two-thirds, or even 80-90%, of the total cost of TVs.
This cost ratio in developed countries is only 50%.
“The Crystal Conference is a noose wrapped around all of China’s consumer electronics industry.”
Huang Dongsheng's tone was heavy.
"I hope Mr. Huang can lead BOE to break this noose as soon as possible."
"I will do my best! Moreover, breaking the 'Crystal Agreement' and becoming the world's number one panel manufacturer is also My dream.”
“This is what I admire about Mr. Huang.
However, if BOE wants to rise, tens of billions of investments are not enough.”
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Now 10 billion Huaxia coins cannot build a 6th generation production line.
“We have to eat step by step. With your 10 billion, we can raise twice as much money from the capital market. This will directly double BOE’s production capacity.”
“ So, Mr. Huang accepted my financing?”
“This matter is too important. I need to communicate with the directors and shareholders and will give Mr. Xu an answer as soon as possible.”
Although he was excited, Huang Dongsheng was not dizzy yet.
"As it should be!"
I originally wanted to have a few off-topic conversations and have a casual meal together at noon to share feelings.
But Huang Dongsheng was impatient and quickly said goodbye and left.
(End of this chapter)