Recently, according to Wit Display reports, BOE, TCL Technology (TCL Huaxing), Huike, and AVIC International (Tianma), etc. intend to expand the panel production scale and consolidate their market advantages through the acquisition of CLP Panda.
In recent years, with the increasingly fierce competition in the LCD panel market, the prices of its products have continued to fall, causing some panel manufacturers to lose money. Korean companies Samsung Display and LGD also announced that they will withdraw from the LCD market by the end of this year. This is a good opportunity for Chinese companies to expand the market size.
At the 2019 performance exchange meeting, Li Dongsheng said, "The industry has more opportunities for mergers and acquisitions when it enters a more difficult period. We expect that the entire semiconductor display industry will have more opportunities for mergers and acquisitions this year and next. In addition, China ’s new capacity and this The number of companies in the industry is relatively large, and some companies are not particularly large, so we will actively look for merger and acquisition targets that are valuable for the company's future growth. "
However, due to the downturn in the terminal market, BOE, Huike, and Tianma all delayed the delivery of panel equipment. In addition, TCL Technology Li Dongsheng also said that the reorganization and acquisition will consider the issue of price. In general, these companies will be more cautious about mergers and acquisitions. As for which company acquires CLP Panda? It remains to be seen how probable the merger is.
It is understood that CLP Panda was founded in 2012. Its main products are TFT-LCD panels, color filters and LCD modules. The flat panel display started to invest in the construction of LCD panel projects in 2013 with a total investment of about 28.9 billion yuan. It was put into trial operation on March 31, 2015. The main project of the project reached the project design target in November 2016.
In January of this year, East China Science and Technology announced that in view of the imbalance in production and demand in the annual LCD panel industry, the price of some products fell by up to 30%. At the same time, economic growth has slowed down and the panel market has a trend of oversupply. It is expected that the price of liquid crystal panels will not rise significantly in the short term. The asset impairment was raised to RMB 3.26 billion.
