BOE to raise 400 million to six generation LCD panel line on site in Shenzhen

Last year the huge loss of 1 billion 250 million yuan is still visible before the eyes, but the BOE (A:000725B:200725) chairman Wang Dongsheng before an interview with foreign media said, probably from the beginning of August, the BOE is expected to be profitable every month.

According to the BOE announcement, BOE net loss of 1 billion 250 million yuan last year, partly due to the decline in the price of LCD panel prices and R & D costs increased. In the first quarter of this year, the BOE losses continue, a quarter net loss of 468 million 500 thousand yuan.

BOE currently has a five generation LCD panel production line, in 2005 began mass production panel, the main production of 17 inch Laptop and desktop computer monitors. Due to the limitations of the production line algebra, BOE is still unable to provide large size LCD TV panel. Analysis of the industry, a single product structure and small scale is also an important reason for the BOE is still at a loss.

Wang Dongsheng revealed that the company may raise $400 million to $300 million of funds through the issuance of additional shares in A in order to successfully expand the production capacity of flat panel, the company plans to build a line and a generation of the 7.5 generation LCD panel production line.

Wang Dongsheng said that the BOE has decided and several domestic color TV enterprises cooperation in the construction of a LCD panel production line, and said that the factory production technology may use the sixth generation LCD panel production, the new plant is expected in Shenzhen, is expected to put into operation in 2008.

In addition to this 6 generation line planning, Wang Dongsheng said, the company is also considering the establishment of a 7.5 generation LCD panel plant, the plant may be put into production after 2008.

Wang Dongsheng admitted that compared with the overseas LCD giants, the scale of the BOE is too small. At present, Japan, South Korea and Taiwan and other places China LCD panel production is sixth, seventh giant and even eighth generation technology based on the factory invested billions of dollars of money, hoping to produce the larger size of the TV display panel.