BOE has finally become the world's first.
Consumers in China have used BOE products in all likelihood, but nine out of ten do not know such an enterprise, so that it is often mistaken for Jingdong.
BOE is a panel enterprise, and it has a similar "burn money" experience with Jingdong, but it is in a different atmosphere of public opinion. Jingdong lost ten years, consumers and investors have always been their pursuit of plus, because Jingdong's money is burning in everyone can see, and touch the place. And panel enterprise itself is too far away from consumers, although the display everywhere, but these products are affixed to the name of consumer brands.
General public opinion of BOE is very little known, but in the capital market, this enterprise is famous.
Investors call them "undead birds" and "money burning kings". These titles tend to be derogatory. Because when there is a loss, it is very difficult to dispose of the dividend from the BOE, the long-term share price volatility in the A shares two or three penny stock; competitors often attack BOE, accusing it of continuous access to government subsidies and bank loans "burning machine"; even a well-known financial author described as Chinese high-tech fields "tragedy".
Because of the vicious circle of losses, for more than ten years, it is almost the most critical company in China's semiconductor industry.
BOE itself has also recognized the "money burning machine" this title: in the past few years, BOE financing more than 70 billion.
In 2017, these criticisms came to an end.
In January this year, the BOE intelligent mobile phone LCD display, notebook computer, tablet computer display screen, display screen shipments were ranked first in the world, LCD TV panel shipments ranked third in the world.
April released first quarter earnings, BOE single quarter revenue of 21 billion 850 million, an increase of more than 70%, net profit of 2 billion 500 million, compared with the same period last year growth of more than 2000%.
Investors' anger has been watered down. Since June 2016, BOE shares have nearly doubled, and the market value has climbed to 145 billion 500 million.
Wang Dongsheng might be able to put off the pressure. As founder and chairman of BOE, he has been criticized for his ugly financial statements. Because he was a financial officer, some even ridiculed him as "good at money, not science."".
The media have never felt the pressure of facing Wang Dongsheng, facing the visitor, he is always talking about, you can easily feel it difficult to describe the cause of the firm and the BOE's sense of mission.
But Wang Dongsheng admitted he would suffer from insomnia. A person close to the history of this period revealed: the most difficult times, Wang Dongsheng said that he is like a ride on the roof, the feeling will fall down at any time......
Wang Dongsheng's aunt is made of tofu, and it is only one day to test whether she succeeds. The tofu made in the early morning, if it tastes good, will have repeat customers in second days.
"I'm obviously not as lucky as she is, but that's my choice."." Wang Dongsheng says.
He chose to turn an almost obsolete electronic component factory into a world-class high-tech company in the core industry. When it came to this goal, China did not even have well-known TV brands.
BOE's predecessor was Beijing electron tube factory, which was the key project supported by the Soviet Union during the "first five-year plan" of the state. As the first generation of "drift", the young Wang Dongsheng witnessed in the most brilliant electronic tube factory: after the reform and opening, China enterprises and Western technical cooperation the first wave of electronic tube factory is also involved.
In the early 80s of the last century, Wang Dongsheng went to Japan and Germany to study and became the first to contact Western technology and broaden their horizons.
But such brilliance is very short. Since 80s, the electron tube technology has been replaced by semiconductor technology, and the Beijing electron tube factory has fallen into a serious predicament. From 1986 to 1992, it lost seven consecutive years until it was on the verge of bankruptcy.
After the reform, Wang Dongsheng adopted a series of reform and hemostatic measures, which is considered one of the most important is, he set up a special one composed of highly educated young people team, tracking the direction of the industry, according to route.
In 1998, the group identified the development direction of TFT-LCD (TFT LCD) as the core, while some domestic companies were still on the CRT production line.
The panel sounds simple, in Wang Dongsheng's words, "it sounds like a no technical content". But in fact, this is no discount, ultra high technology, ultra high capital threshold industry.
Route display technology industry is very cruel, giants are frequently doomed eternally. How to choose the development route, each enterprise has its own considerations, but the outside world looks like gambling.
In the CRT on the road, more than China enterprises suffer heavy losses, the international giant has not been spared. Thomson was one of France's largest groups and the world's biggest TV maker. It was only a step away from CRT to flat-panel TVs, and was eliminated by the market and ended up being annexed by TCL..
"Bet on" the line, and Wang Dongsheng made a bold choice: independent research and development.
At that time, he had two roads, one is joint venture, the other is independent innovation. The road seems to be a good choice for outsiders: it must be independent research and development, master the core technology!
But after the restructuring of BOE, originally by joint venture to survive, do not change, can be good "alive", change the fate of unknown.
In the middle of 90s, they established joint ventures with a number of Japanese and Taiwan enterprises, with a shareholding ratio of less than 50%. In this way, the BOE's young people were able to move rapidly and move the market with smaller inputs.
In 1997, BOE had an annual profit of 40 million, thus successfully landing the Shenzhen Stock Exchange and raising 350 million. In 1999, they made CRT monitor the world's number one.
After listing the BOE first "money", then the internal debate: is to continue in the electronics industry plough, or directly to the high profits of the real estate?
At the end of the discussion, Wang Dongsheng slapped the table: "not only to adhere to, but also to the new display industry to enter, to independent research and development.".
If the real estate, Wang Dongsheng and BOE may be able to earn a lot of money, will not face so much controversy, but the domestic panel industry will never usher in today's situation.
Wang Dongsheng knew the pros and cons of the joint venture: Beijing electronic tube factory and Japan Panasonic joint venture, and as a result, the joint venture collapsed, China has not mastered the core technology of color picture tube.
Numerous bloody lessons show that the market can not change technology, joint venture is more unlikely.
When the BOE decided to self-developed, another company China SVA, set up a joint venture in 2002 with Japan's NEC. From 10 billion to SVA NEC introduced a 5 generation line, pay royalties annually, so after 5 years of development, the joint venture collapse directly in a global LCD panel fluctuation.
The joint venture is more difficult for independent research and development of heteronomy. TFT-LCD technology through the United States invention, Japan, Korea and Taiwan region bigger, the entire industry has developed for more than 30 years, the barriers are everywhere.
BOE wants to rely on its own power, quickly make up for decades of technical gap, almost impossible. Wang Dongsheng laid out a strategic plan for 20 years, divided into 5 steps, followed by followers, pursuers, challengers, leaders and leaders.
The mission of the followers was to survive the technology blockade, and at this stage BOE met a good opportunity. In 2003, the Hyundai Group, due to excessive expansion leading to debt, sought to sell its LCD panel business, the BOE smoothly cut, to $380 million to its income in the bag.
At that time coincided with the global LCD panel rose after the merger, the BOE is a record annual revenue of 11 billion 180 million, compared with last year soared 133.7%, "dangerous period lucky" avoided after the merger and acquisition.
More importantly, from that moment onwards, the Chinese LCD screen completely dependent on the era of imports, officially announced the end.
Although the realization of a zero breakthrough, but faced with Japan and South Korea enterprises, BOE still has a very big gap. International manufacturers will not sell the most advanced technology to China, and the production lines they can buy will not constitute a threat.
After the acquisition of modern business, BOE in Beijing, Yizhuang voted to build a 5 generation line, began to learn and digest TFT-LCD technology. Since then, the time has come, even in the most difficult years, they will come up with at least a billion support R & D innovation, technology counter attack is also launched.
In the meantime, Wang Dongsheng proposed a well-known law of survival: if prices remain unchanged, the performance of the product should be doubled every 36 months, and the cycle is shortening.
With the increasing prosperity of BOE, his laws have been widely recognized by the industry, known as the "Wang law."". This Law applies to the global display industry, almost equivalent to Moore's law on chips.
In 2016, along with the development of the chip to a vertex, Moore's law "officially passed away", and Wang's law will continue to indicate the direction for the panel industry.
Wang's law reveals, is a brutal competition, behind the bloody battlefields. There are no permanent winners in this battleground: the price of the panel industry fluctuates periodically, and even giant firms often suffer a big fall in profits. As latecomers forced, BOE is over and over in the waves "".
In 2005, BOE lost 1 billion 600 million yuan and lost 1 billion 700 million in 2006...... From 2001 to 2015, BOE losses amounted to 7 billion 500 million yuan, a few hard torsion behind, there are government subsidies underpinning.
These data, attracted countless infamy for enterprises and Wang Dongsheng.
In fact, the Japanese and Korean companies are all the way to the loss of the past, and eventually bigger and stronger, reap the world, its panel industry by the government to promote, together with the consortium to destroy hundreds of billions of funds. During the period, the Samsung panel after 12 years of losses began to profit; Chinese manufacturers in Taiwan spent an average of 10 years to achieve losses.
The industry has not only had no shortcuts, but later has also faced numerous blockades by its allies.
Chinese people often self evaluation, said the Chinese people to do business, many minds, but the heart of friends only a lot.
In 2005, TCL, SKYWORTH, Konka, Changhong, 4 color TV enterprises, which were deeply affected by panel imports, planned joint ventures, built 6 generation production lines in Shenzhen, and sought technical cooperation from foreign countries, but they were repeatedly rebuffed.
No, under the Shenzhen municipal SASAC century display to joint 4 companies and the BOE co founded the company. But the agreement to be signed on the occasion, before SHARP has refused to offer, technology shares to the Shenzhen municipal government, the construction of a 7.5 generation line.
News came out, the Shenzhen municipal government and 4 color TV enterprises began to waver, "Julong plan" collapsed. After a while, SHARP's investment stopped, because of its commitment to investment, patent transfer can not be fulfilled, it is really staged a good show.
Julong died, and the gluttonous feast of the allies continued.
The national development and Reform Commission has announced that from 2001 to 2006 in 6 years, Samsung, LG, CMO, AUO, CPT, HannStar six companies, a total of 53 "held a meeting in South Korea and Taiwan region crystal".
The basic monthly meeting, mainly exchange information, negotiate prices, one of the key is to sell LCD panels in mainland China, several together pricing, joint manipulation of the market.
These meetings, directly lead to high prices of color TV, LCD panel once occupied 2/3 of the total cost of television. But in the face of bullying, Chinese enterprises have to buy, because China has been the world's largest television producer and consumer, not import, production will have to stop.
In 2010, with the BOE, Huaxing, photovoltaic and other production lines put into use, the mainland finally broke the hand was strangled in the throat.
The next few years, the domestic color TV price drop, smart TV 40 inches of less than 2000 yuan. From 21 inches to hundreds of thousands yuan start, now sell cabbage price, behind the change and the overall cost is not industry breakthrough, but the core component of a qualitative breakthrough.
Benefit from this far more than color TV enterprises. When talking about contributions, Wang Dongsheng said three words:
"If there is no such enterprises as BOE, HUAWEI, Lenovo, millet, Meizu who have to firmly grasp the panel industry discourse power Samsung, LG, SHARP, these Japanese and Korean companies contribute much revenue?"
"Imagine our fighter aircraft, aircraft carrier, display screen, instrument panel display device can only be used in the production of all the people will feel that the country has the ability to defend their homeland security?"
"In the development of LCD technology, the past is indeed South Korea enterprises dominate the market trends, but the future of the interconnection of all things, this screen will still be the necessary entrance of various information flows, but will be a big market for us away?"
This kind of stone panel industry involved in many industries, and the industry itself, to the technology and production facilities to invest the large amount of the outside world beyond imagination: an advanced production line, investment of hundreds of billion.
Continuous losses, but the scale of the bigger and bigger, before 2016, this is a true portrayal of boe.
BOE has entered the industry's first camp, ending the strong input with growth growth stage, entered the second cycle, that is, driven by the growth of enterprise internal value creation." Vice President Zhang Yu said.
The new cycle, Wang Dongsheng made a new plan, he will BOE strategic positioning as "DSH": D on behalf of the display device, S represents the intelligence system, H represents health services.
The new strategy, already strong panels accounted for only 1/3 of the proportion, they have cut into the field of smart medical, and ready to take place in all the vast Internet market. After 20 years, Wang Dongsheng estimates, more than half of the company's revenues will come from life technology.
While expanding the territory, he also made a new interpretation of the BOE (BOE) in English: Best, On, Earth.
This is a very long-term goal, even in the panel sector, they still face countless battles to fight.
Wang Dongsheng was not afraid of a predictable war; he was used to it. He told fortune that his most feared thing was that in a corner of the earth, a nameless boy had just discovered a technology that was about to subvert the whole world.
"All I have to do is to look into my eyes and find the boy, before I catch up with the others."".