Do not suffer from a few but suffer from inequality! Boe, TCL Huaxing and Hueco LCD "production control alliance" can go to where 5th,Dec,2023

                                           In the fourth quarter of 2023, the panel industry entered the traditional off-season, and the brand manufacturers' stocking power was weak, and the industry began to enter a weak cycle. In order to cope with the downward fluctuations in the off-season, enterprises led by mainland panel factories such as BOE, TCL Huxing and Huike have reached a consensus of "on-demand production, quantity control and price insurance".

But do not suffer from few and suffer from inequality!  According to recent data from Lotto Technology, China's share of the global market has fallen below 70%, with a combined share of 66.4% in October.

Recently, Taiwan media reported that the mainland LCD "production control alliance" BOE, TCL Huxing, Huicke and Rainbow are still controlling production to defend the declining trend of TV LCD panel prices in the off-season of the industry, and have successively notified suppliers that they will expand production cuts again by 20% or more, and the capacity utilization rate of the four major factories in the first quarter of next year will be reduced to below 60%.

· BOE: As a "big brother" in China's panel, BOE plays an exemplary role and is a firm supporter of the strategy of "controlling production and guaranteeing price". In October 2023, BOE TV panel shipments were about 3.8 million pieces, down 25.8% year-on-year and down 7.6% month-on-month.

At present, BOE is facing a dilemma, as a firm advocate of "control of production and insurance", its market share is declining. When the market picks up, can the industrial demand meet the capacity output of the entire industry, if not, then the mainland's LCD "production control alliance" can go where?

· TCL Huaxing: As the second largest company in China's display industry, it is extremely important for TCL Huaxing to have the same strategic direction as JD. In October 2023, TCL Huaxing TV panel shipments were about 3.7 million pieces, down 9.8% year-on-year and 2.8% month-on-month.

It is worth mentioning that in a sharing meeting held recently with TCL's own transformation and upgrading as a case, "Captain" Mr. Li Dongsheng said that TCL will continue to invest in the display industry layout, TCL has 9 panel production lines, the future will be expanded! At present, TCL's display business scale is 70 billion to 80 billion yuan, and it is expected to reach 200 billion to 300 billion yuan in the future.

· Huike: Huike is currently the top three head panel factories in China's LCD production capacity, with four 8.6-generation LCD production lines. In October 2023, Huike's TV panel shipments were about 2.6 million pieces, down 29.2% year-on-year and 6.3% month-on-month.

At present, for Huike shares, the company's profit not only represents the health of the business and financial stability, but also the important "driving force" for the successful listing of Huike shares. Therefore, Huike Shares is also a firm supporter of the strategy of "controlling property and guaranteeing price".

· Taiwan panel factory: Innolux and AU as Taiwan's panel "double tiger", in October 2023, the combined TV market share of about 21%, an increase of 5.3%, down 1%, in the context of the mainland's "production control alliance" continued to work, Innolux, AU and other Taiwan plants are benefiting simultaneously.

For the mainland's "control of production and insurance" strategy, Innolux and AU said that in the near future, they will dynamically adjust the capacity utilization rate in view of market conditions, so that the industrial order is more healthy.

Japanese and Korean panel factories: The combined TV market share of Japanese and Korean panel factories was about 12.6%, down 2.3% year-on-year and down 1.3% quarter-on-quarter.

Due to the decline of Japan, South Korea is retiring LCD manufacturing capacity and retreating to OLED high-end manufacturing, so in the LCD TV market, the two have less impact on the overall situation of "control production and guarantee price".

According to the above data and its corporate strategy, Japanese and Korean panel factories have been unable to affect the overall situation due to scale factors, and Taiwanese panel factories have a wait-and-see attitude, but after all, "the arm can not twist the thigh", and then roll up is not a good thing for either party.
Therefore, whether the "production control and price insurance" pattern of China's mainland panel factory can be sustained, the focus is still on the attitude of BOE, TCL Huaxing and Huake.