My Age of Investment

In fact, Huang Dongsheng can’t be blamed for thinking too much, because the market value of BOE’s A and B shares is still less than 10 billion yuan at this time.

Xia Jingxing will invest 10 billion yuan in them at one time, isn't it equivalent to buying them?

"Mr. Xia, let's open the skylight and tell the truth. Do you want to hold BOE?"

Huang Dongsheng gradually digested the explosive news, but he did not rush to express his position, and planned to ask more questions before making a decision.

Xia Jingxing smiled faintly: "Panel is a business that burns money. It took Samsung 12 years to make a profit. Wanwan manufacturers are better, but it took nearly 10 years to become profitable.

In addition, I heard Mr. Huang proposed a well-known Huang's law in the industry: under the condition of constant price, the performance of the display panel will double every 36 months. "

Huang Dongsheng waved his hands and said modestly: "What Huang's law is, it's just a family discussion.

What I mean by this is that we must continue to expand production capacity! If you want to make money tomorrow, you have to lose money to death today. "

Xia Jingxing nodded slightly: "Samsung and LG are doing this in the semiconductor field, including the panel industry.

The more trough the industry cycle is, the more we need to accelerate expansion! Counter-cyclical investment!

Because every downturn in the industry is a reshuffle, and it is also a good opportunity to overtake on a bend, and the cost of expansion is still very low. "

"good!"

Huang Dongsheng said with firm eyes: "BOE took a detour before and learned a lot of blood and tears.

Our 5th generation line came in at the peak of the cycle, and it just caught up with the valley when it was put into production, so it suffered a blood loss for two years.

Before, I advised my friends from the four color TV companies: Now is the valley, hurry up and enter the market. After production, it will happen to be the peak, and you can pay back quickly!

Alas, it's a pity..."

Zhang Xuebing's face was a little unnatural, why did he bring up this matter again, can't I admit my mistake?

Huang Dongsheng glanced at Zhang Xuebing and smiled slightly: "I'm just giving an example, I don't mean to blame anyone, I won't mention the past!"

Xia Jingxing interjected: "I heard that the foundation of BOE's LCD panel comes from modern times?"

Huang Dongsheng nodded slightly: "Yes,

In the late 1990s, we had become a leading company in the field of CRT (cathode ray picture tube), but on a business trip to Japan, Sharp people gave me an electronic clock with a color LCD display as a souvenir.

The product is small in size, light in weight, and has clear images. At that time, I had a premonition that LCD liquid crystal displays would probably replace CRTs and become the next direction of the display industry.

This matter is too important, and it concerns the fate of the whole factory, so I dare not make a decision lightly.

After returning to the factory, I gathered all the highly educated young people and set up a special industry research group to ponder the development direction of the entire display industry. After countless investigations and demonstrations, I finally decided to bet on LCD. "

Xia Jingxing nodded slightly. It sounded like this decision was light and nothing special, but it was actually a turning point in the fate of BOE and even the entire Chinese panel industry.

At that time, CRT technology still occupied a dominant position in the market, and major domestic manufacturers were still desperately launching new equipment and production lines. Even the global TV overlord Thomson Group was still increasing investment in CRT.

There is no absolute wind direction, and it is declared that LCD will become the master of the display industry.

This decision of BOE can be said to have taken a great risk.

You must know that BOE’s CRT was the first in China at that time, which means that the industry boss said that what he did had no future, which had a great impact on the company.

Huang Dongsheng tried his best to fight against all opinions, All in LCD, and fought for the future of an industry.

Huang Dongsheng looked reminiscent: "At that time, Japanese and Korean companies were relatively mature in TNF-LCD technology and had entered the stage of mass production. We were several years behind and would face a huge technical blockade when entering this field.

The display industry itself requires heavy investment, and it is not cost-effective to do research and development from scratch, in terms of speed and cost.

In fact, when drastic changes come, many companies do not have insight into the direction of the wind, but they no longer have the courage and ability to follow the wind.

BOE was lucky. It happened to catch up with the Asian financial crisis or the Korean financial crisis. We put together $380 million, or about 3.2 billion yuan at the time, to acquire the LCD business of Hyundai Group as a whole.

At that time, our annual revenue was only 800 million yuan, and our net profit was only 70 million yuan, which was equivalent to a desperate battle.

Fortunately, I made the right bet, otherwise BOE might not even exist now. "

Speaking of this incident, Huang Dongsheng smiled, unable to hide the pride and pride in his heart, because this incident can be regarded as the most correct thing he has done in his life, second only to agreeing to take over BOE.

Xia Jingxing praised with a smile: "Boss Huang is very decisive! If you want to break through the technological blockade in this kind of backward industry, you can't do it without taking risks! Wisdom, courage, and ability are indispensable if you want to succeed."

"Mr. Xia, you're too much of an award, and I'm just not willing to stand still and wait to die!" Huang Dongsheng replied lightly.

Xia Jingxing smiled: "Actually, it can also be seen from this incident that the panel industry is an industry that requires long-term investment. If you have courage but no ammunition, how can you go to the battlefield to fight?

Betting on new technologies, acquiring or building new production lines, impacting production capacity, and overcoming industry cycles... Which one does not require money? "

Huang Dongsheng lowered his head in thought, what Xia Jingxing said was the truth, BOE needed money very, very much! According to common sense, he has no reason to reject tens of billions of investment.

But Boss Xia gave too much, he was a little worried.

"Mr. Xia, if you become a major shareholder of BOE, what do you want to do?" Huang Dongsheng raised his head suddenly and directly pointed out the matter.

"As I just said, it is the low point of the industry cycle, which is very suitable for rapid expansion.

With the 10 billion we provided, BOE can use its financial leverage to build two production lines and narrow the gap with Japanese, Korean and Taiwanese manufacturers. "

Speaking of this, Xia Jingxing sighed slightly, and said with emotion: "After the panel price is lowered, countless Chinese companies will benefit, including us Fuxing Industrial Group.

Like you, in fact, I have had enough of those traitors, Japanese slaves, and sticks, and I want them to leave as soon as possible! "

Huang Dongsheng rolled his eyes and asked tentatively, "Mr. Xia, have you also heard of the "Crystal Conference"?"

Xia Jingxing nodded slowly: "I have heard a little bit! During the six years from 2001 to 2006, six companies including Samsung, LG, Chimei, AUO, Chunghwa Picture Tubes, and Hanyu Caijing had a total of 53 "Crystal Conferences" were held.

The meeting is basically once a month, and the main content is to exchange information and negotiate prices. The most critical one is that when selling LCD panels in mainland China, several companies will adjust the price together and jointly manipulate the market.

These operations directly led to the high price of domestic color TVs. At one time, LCD panels accounted for two-thirds, or even eighty-ninety percent, of the total cost of TV sets! The cost ratio in developed countries is only 50%! "

While talking, Xia Jingxing suddenly remembered something.

When the financial crisis broke out in the previous life, based on the principle of saving their own family first, the mainland organized nine color TV companies to go to the Gulf twice to purchase LCD panels, with a total order of 3.3 billion US dollars.

Seeing that the mainland is helping Taiwan companies, South Korea also placed orders with Taiwan companies. Taiwan companies thought that it was better for mainland compatriots to discuss, so they prioritized production capacity to South Korea and put aside orders from mainland China.

At this time, South Korean companies found domestic TV manufacturers, saying that they could replace Taiwanese companies with low-cost supplies. In this way, Taiwanese companies were clever but were misunderstood by their cleverness, and lost the mainland market.

After receiving the order, South Korean companies began to deliberately reduce production capacity and continue to raise prices. TV factories across the mainland were led by the nose into a bad cycle.

Hearing these coquettish manipulations, Xia Jingxing didn't even know what the people of Wanwan had in their minds, they were like single-celled organisms.

In short, the panel industry is so fun. Japanese companies do not keep their promises, Taiwanese companies forget their righteousness when they see profits, and Korean companies repeatedly jump around. The Chinese can only work hard and rely on themselves without relying on anyone!

Xia Jingxing thought about it, investing in BOE is one aspect, if he catches the opportunity in the future, he must find an opportunity to teach these grandsons a lesson.

Looking at Huang Dongsheng who has never made a statement, Xia Jingxing decided to explain to the other party: "We invested in BOE from the perspective of ensuring the stability of our own industrial chain and reducing costs.

After the investment is completed, Fuxing Industrial Group can establish an all-round cooperation with BOE. Our panel orders for mobile phones, computers, cars, TVs and other products can all be handed over to BOE. "

The word "cooperation" immediately made Huang Dongsheng hear the implication, and his whole spirit was lifted. He asked, "Mr. Xia, do you plan to acquire BOE?"

Xia Jingxing shook his head: "Boss Huang, don't think too much about it, it's just an investment, we plan to help you get on the horse, give you a ride, let you develop faster, and solve the pain of technology bottleneck as soon as possible.

Although the amount of this investment is large, it is also based on a practical point of view. BOE needs money very much right now, and if it spends more money now, it will be able to spend less money in the future.

The investment is too little, it is useless at all! Without debt financing, 10 billion will not be able to build a 6-generation production line. "

"Being BOE's largest...financial investment shareholder?" Huang Dongsheng asked tentatively.

Xia Jingxing smiled, and it's financial investment, I'm doing humanitarian assistance!

"Forget it! BOE will continue to be managed by you, I will not interfere, and you don't need to join Fuxing Industrial Group."

Hearing this, Huang Dongsheng still didn't understand, what was the picture? Is BOE losing money?

Then he thought, maybe Mr. Xia is betting that BOE will rise rapidly with this 10 billion!

Moreover, the trough of the industry cycle has been experienced for more than two years, and it is almost time to get out of the trough.

This is also counter-cyclical investing! Counter-cyclical equity investment plus instant charcoal investment!

It must be so!

Huang Dongsheng took a deep look at Xia Jingxing, feeling that this well-known and richest man was more gambler than himself.

But investing is a kind of gambling! Dare to bet and dare to vote is the top investor!

After figuring all this out with brain supplementation, Huang Dongsheng replied: "This matter is too important. I need to communicate with the directors and shareholders, and I will give you an answer as soon as possible, Mr. Xia."

"Due righteousness!"

Xia Jingxing nodded with a smile and didn't want to explain further. He really didn't invest in BOE purely for making money.

However, it doesn't matter how Huang Dongsheng understands it.