My 1999

Southeast Asia and China are also the mainstream markets of Kunlun Technology.

When Kunlun grows up, together with AOC Technology, BOE's downstream will be safe and will not be forced to lower prices by others.

Continue to look back.

Although he has seen it once, Xu Liang still couldn't help frowning at BOE's poor financial situation.

In September 2003, BOE invested 10.3 billion to build a fifth-generation line with a production capacity of 100,000 per month.

Due to the large investment in self-built production lines, BOE's capital chain was almost broken at the end of 2004.

At that time, Yi##Zhuang Economic Development Zone, which introduced BOE to settle down, had no choice but to help BOE get a loan of 740 million US dollars and a loan of 2.8 billion Chinese yuan to temporarily postpone the bankruptcy crisis.

However, BOE's situation did not improve in 2005 and 2006. It lost 1.587 billion in 2005 and 471 million Chinese yuan in the first quarter of 2006. The annual loss was heading towards 2 billion.

Those banks that shouted to support national industry and national science and technology development quickly withdrew loans. The China Securities Regulatory Commission even suspected that BOE had committed financial fraud, and BOE became *ST Dongfang.

At that time, Yi##Zhuang Economic Development Zone was a little confused, and BOE had no choice but to "debt-to-equity" the government's 2.8 billion loans.

In order to survive, BOE began to look for funds everywhere, and then found Xu Liang.

Now the debt ratio of the entire BOE is as high as 70%, and the total debt has exceeded 14 billion Chinese yuan.

However, Xu Liang does not mind BOE's debt. He pays more attention to BOE's technical level.

...

Huang Dongsheng's feedback was faster than expected. The next day, Xu Liang received him at Hanhua.

"Mr. Xu, we went back to discuss and are willing to accept Hanhua's investment."

Xu Liang stood up and stretched out his hand.

"This is the best news I have received this year."

"Me too."

The two smiled at each other, and they felt a sense of mutual appreciation.

After sitting down again.

"Old Huang..."

The sudden change of words and intimacy made Huang Dongsheng stunned for a moment, but he soon got used to it.

Almost all Chinese men have been called "old" before their surnames.

"How do you plan to use the 10 billion invested by Hanhua?"

Huang Dongsheng didn't even think about it. "I plan to build two lines, a 4.5-generation line with a monthly output of 30,000 pieces, and a 6-generation line with a monthly output of 100,000 pieces, with a total investment of 20 billion Chinese yuan.

BOE will invest 7 billion Chinese yuan on its own, the local government will borrow 7 billion Chinese yuan, and then raise 6 billion Chinese yuan from the stock market.

3 billion Chinese yuan will be left as reserves."

After Huang Dongsheng left Hanhua yesterday, the first thing he did was not to discuss whether to accept Hanhua's financing, but how to use Hanhua's financing.

After a little thought.

"What is BOE's current technical level? Can it make a 7th generation line?"

Huang Dongsheng shook his head.

"We have just broken through the high-generation line this year, and the 7th generation line is still under development. It is expected that there will be a breakthrough at the end of this year at the earliest."

As he said, he sighed.

"BOE has been in the panel industry for too short a time and does not have sufficient funds. Although it is trying hard to catch up, it still has a big gap with the top international manufacturers."

In terms of LCD panels, Samsung and Sharp have already begun planning to build 8th generation lines, but BOE's 6th generation line has not yet been built.

"We started late, and it is normal to have a gap. Facing the gap and trying hard to catch up is what we should do now." Xu Liang smiled.

"You are right."

"Old Huang, I agree with BOE's overall development ideas. Increasing production capacity is the kingly way. But there is no need to build that 4.5-generation line."

"Mr. Xu, the 4th generation line is the mainstream in the current market, and our production capacity in this area is not enough."

In the current LCD panel industry, the first generation has been eliminated.

The second generation mainly produces 370mm*470mm glass substrates, which can cut out 4 10.4-inch panels.

The third generation mainly produces 550mm*650mm glass substrates, which can cut out 6 14-inch panels.

The fourth generation (4.5 generation) mainly produces 730mm*920mm glass substrates, which can cut out 9 21-inch panels.

The fourth generation line is also the mainstream in the current market, mainly producing small and medium-sized display panels for laptops, tablets, digital photo frames, car displays, mobile displays, mobile phones and other products below 12.1 inches.

Then there is the fifth generation line, which mainly produces 1300mm*1500mm glass substrates and can cut out 6 27-inch panels.

The fifth generation, including 5.5 generations, is the production capacity that major LCD panel manufacturers are currently vigorously deploying, and it belongs to the sub-mainstream.

The sixth generation mainly produces 1500mm*1850mm glass substrates, which can cut out 6 37-inch panels.

The sixth generation line is the high-generation line that is often mentioned now.

Only large manufacturers with strong strength are qualified to build this high-generation line.

The seventh generation mainly produces 1950mm*2250mm glass substrates, which can cut 8 40 or 42-inch panels and 6 46 or 47-inch panels.

The seventh generation of LCD panels flourished around 2005, with two major factories producing them earlier: Samsung-Sony and LG-Philips.

Other manufacturers also have 7.5 generation panels.

The eighth-generation line mainly produces 220mm*2500mm glass substrates, which can cut 8 46-inch and 6 52-inch panels.

Sharp was the first to build it, and it just started to build the first eighth-generation line in Guishan, Japan this year.

Both the seventh-generation and eighth-generation lines are currently under construction, and there are basically no finished products on the market.

The sixth-generation line is already a high-end product.

"Lao Huang, since we have better technology, we don't have to waste money on low-generation lines. My idea is to directly invest in the construction of two sixth-generation lines with a monthly output of 100,000 glass substrates."

The production of LCD panels is similar to that of chips.

The LCD panel is cut out of a large glass substrate to the required specifications.

The chip is cut out of a large wafer to the required specifications.

So the larger the glass substrate and wafer, the more panels and chips can be cut out.

The corresponding cost is lower.

So if you can build a high-generation line, don't build a low-generation line.

In addition to cost considerations, Xu Liang, as an investor, also has to consider equipment depreciation.

Although the 4th generation line is now the mainstream, it will be completely eliminated in six or seven years at most due to cost.

If you invest a huge amount of money now, the depreciation cost will be too high.

On the contrary, if you invest in the 6th generation line, you don’t have to worry about being eliminated for at least 15 years.

"Mr. Xu, are you really willing to invest in BOE to build two 6th generation lines?"

Huang Dongsheng's eyes lit up.

If he could build a 6th generation line, he would certainly choose to build a 6th generation.

But it's too expensive.

A 6th generation line with a monthly output of 100,000 glass substrates requires an investment of 18 billion Chinese yuan.

Two is 36 billion Chinese yuan.

BOE can't afford it alone.

"I never regret what I said. And I promise you that when BOE can break through the 7th generation line, I will invest money to help you build three 7th generation lines with a monthly output of 100,000 glass substrates.

When BOE breaks through the 8th generation line, I will invest money to help you build four 8th generation lines with a monthly output of 100,000 glass substrates."

In order to stimulate Huang Dongsheng's enthusiasm, Xu Liang took the initiative to increase the temptation.

"Four..."

Huang Dongsheng's voice was almost a moan.

Gorgeous.

Too damn heroic.

He has been traveling all over the country for so many years, but he has never seen such a heroic person.

He was afraid that the victim, no, the beloved boss Xu would go back on his word.

"Boss Xu, a man's words are as good as a nail. There are so many people here today, can you go back on your word?"

"Haha, don't worry, I promise not to go back on my word. But the premise is that the 7th generation line must be broken by the end of this year, and the 8th generation line technology must be broken by the end of next year.

How about it, do you dare to sign this military order?" Xu Liang smiled.

"Dare, what's there to be afraid of."

Huang Dongsheng patted his chest and said confidently.

As long as there is enough financial support, relying on BOE's many years of technical accumulation and personnel, he has absolute confidence to meet the boss's requirements.

"Very good, then I'll wait for your good news."

Xu Liang said with satisfaction.

The stronger BOE's technical strength is, the more likely he will make a profit in the end.

He poured a cup of tea for Huang Dongsheng and waited for him to calm down a little.

"Mr. Huang, is BOE doing research on OLED technology now?"

"Of course. OLED technology is a relatively recognized new next-generation technology in the field of LCD panels. BOE has also invested a lot of money and energy in this area, but it is still far behind foreign manufacturers."