Benefit from the policy favorable Huaxing Optoelectronics, BOE panel in advance

According to statistics, Huaxing Optoelectronics drastically increased production in August, with an overall shipment of 1.05 million pieces. The main product is a 32-inch LCD TV panel. In addition to its own brand TCL, its customers include overseas first-line brands such as Samsung and first-line TV manufacturers; since August, Huaxing Optoelectronics has also begun to supply panels to smaller brand manufacturers and second- and third-tier OEMs. .

In August, Huaxing Optoelectronics invested 91,300 glass substrates, an increase of 82% from the previous month, and the overall yield was 94.6%. LCD TV panels and modules actually sold 1.23 million units in the month, and realized positive cash flow in August. At present, the market demand for color TV LCD panels and modules is improving and the price is stable. It is expected that Huaxing Optoelectronics will further increase its production and sales volume in September, and realize the design capacity of 100,000 substrates per month in advance, and the operation will be further improved.

Benefiting from the favorable policies, BOE’s 8.5-generation line, which was put into production this year, also reached full production in July. BOE said that the effect of the energy-saving and welfare policy in August gradually appeared, which promoted the growth of the color TV market and boosted the demand for panels. BOE's panel shipments were better than expected, and its 8.5-generation line also achieved positive cash flow.

However, the industry believes that the recovery of the panel industry is the result of multiple factors, and the energy-saving policy is only one of them. Entering the peak season of color TV sales in the second half of the year, and adjusting the product strategy of overseas panel factories, it also stimulated the 8.5-generation line of Huaxing Optoelectronics and BOE to reach production ahead of schedule.

Experts said that panel shipments were higher than expected in August, boosting the confidence of panel makers in the later shipment targets. According to their recent survey, panel makers' shipments to domestic TV manufacturers in September, October and November were 1%, 8% and 6% higher than previously forecast. At the just-concluded “Eleventh” Golden Week, mainland color TV sales increased by about 10% year-on-year, which also stabilized the confidence of color power plants.

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