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Company News >> OLED panel: Behind the TCL scenery, Samsung and LG have to guard against 20th,April,2021
                                              As a "dead once" company, the success of TCL Technology (000100.SZ, hereinafter referred to as "TCL") is largely due to the decision of Chairman Li Dongsheng ten years ago: to switch to LCD (liquid crystal panel) in time.

Today, ten years later, TCL Technology has become one of the world's leaders in the field of LCD panels. The company was founded in 1982 and currently focuses on the semiconductor display and material industry chain. Its subsidiary TCL Huaxing Optoelectronics Technology Co., Ltd. (hereinafter referred to as "TCL Huaxing") is its main revenue source. Li Dongsheng has served as the chairman of the company for more than 20 years. He is the soul of TCL and the company's largest shareholder.

According to the performance forecast released by the company on January 12, the company's net profit attributable to the parent in 2020 will be between 4.2 billion yuan and 4.46 billion yuan, an expected increase of 60%-70%. Under this favorable stimulus, the company's stock price reached 10.25 yuan per share on January 18, and the market value exceeded 140 billion yuan to a record high.



Source: TCL announcement

However, the hidden crisis behind the praise has not dissipated, but is getting closer. Investors who are bearish even declared that "Samsung OLED's success and cost reduction is the beginning of the delisting process of BOE and TCL." What are the reasons for such "warranty" comments?

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Lessons from the past, familiar with each other

Before officially turning to liquid crystal panel (LCD) production in 2009, Li Dongsheng bet on CRT (cathode ray picture tube). The flat-screen large color TVs that 90 generations saw when they were young adopted this display technology.

In the 1990s, CRT display technology was the target of domestic manufacturers such as Changhong, TCL, Hisense, etc., and the production capacity of CRT displays increased year by year.

In 2000, China became the world's largest producer of color TV sets, and domestic manufacturers paid more attention to CRTs and continued to invest heavily. At that time, TCL, already ranked among the domestic color TV giants, went further and initiated a series of ambitious cross-border mergers and acquisitions.

In 2002, TCL acquired Schneider, a century-old German store. In 2004, TCL, which was listed as a whole, continued to run at full capacity, directly targeting French Thomson's global color TV business.

Thomson is the originator of traditional picture tube televisions, and produced the world's first color television. It was ranked among the top 500 in the world at that time and was much larger than TCL. At that time, Li Dongsheng resisted the crowd and insisted on advancing this "snake swallowing elephant"-style merger and acquisition, which made TCL one of the top three in the global color TV industry. Since then, TCL has won the mobile phone business of another French company Alcatel.

That year, Li Dongsheng appeared on the cover of "Fortune" magazine and was awarded the title of "Asia's Most Influential Business Leader" of the year. He was also named "2004 World's Most Influential Business Leader" by the US "Time" and other media. 25 business leaders".

However, at the same time that Li Dongsheng added his glory, a revolution initiated by liquid crystal display technology (LCD) is quietly subverting the original huge market of CRT.

Around 2000, Japanese and Korean manufacturers were already developing LCD technology. In 2004, LCD TVs with selling points such as "ultra-thin" and "high-definition" quickly occupied the market as soon as they were launched. Traditional CRT manufacturers have been severely impacted, and TCL, which has invested heavily in this technology, has not been spared.

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