AUO is the top three Taiwanese-funded panel.
Regarding the topics of concern such as the prosperity in the second half of the year, AUO Chairman Peng Shuanglang said: After a wave of correction, the industry will return to normal, but it will take some time. The key is that demand should be returned quickly.
AUO's stock price was a thriving a while ago. How is the second half of the year?
Auto Optoelectronics
Several months ago, Taiwanese panel giant AUO announced its financial report last year. The net profit attributable to the parent company in 2021 was NT$61.33 billion, a record high, and the basic earnings per share was NT$6.44, a record high in 14 years. After the financial report was announced, AUO's stock price was once "inspiring" and now it is soon to September. How is the prosperity in the second half of 2022? AUO Chairman Peng Shuanglang also responded.
In the first half of last year, the demand for "home economy" continued, and AUO Optoelectronics' consumer products demand was strong. In the second half of last year, the epidemic eased, and demand turned to business application-related products. Previously, looking forward to the whole year of 2022, AUO said that the internal and external environment faces more challenges, but the changes in lifestyle brought about by the epidemic have also created many business opportunities. The company will focus on display technology, implement the "two-axis transformation" strategy, increase high-quality production capacity, develop innovative products and services, promote diversified applications in smart fields, and strive to build a sustainable ecosystem.
On September 1 this year, AUO Chairman Peng Shuanglang also admitted that the inventory was high in the first half of the year, and brand manufacturers turned to adjust their inventory. However, recently, some brand factories have seen their inventory return to a healthy level, and they are more active in pulling goods than before. As for the panel prosperity in the second half of the year, he also said that the situation of each company is different and cannot be generalized. When will the panel economy bottom? He said that the most important thing is "demand needs to come back soon". As for whether the industry will have a good start next year, we need to observe again.
Auto Optoelectronics Chairman Peng Shuanglang
Director 30 years ago. Since AUTO Chairman Peng Shuanglang took the helm, he has led AUTO to invest in value transformation and take the lead in laying out first-generation display technologies such as Mini LED and Micro LED. Today's profit has hit a record high, which is also an affirmation of his active innovation and transformation.
In 2011/2012, when Peng Shuanglang was the general manager of AUO, AUO experienced a period of transformation pain, with a huge loss of NT$117.3 billion, and almost every quarter there was a loss of over NT$10 billion. Faced with various pressures, Peng Shuanglang once said that he was "wearing a steel helmet." In the past year, AUO Optoelectronics has also faced many adverse factors, such as lack of chips, and multiple tests such as exchange rate, labor shortage, and material shortage.
Before the Spring Festival of the Year of the Ox last year, an earthquake occurred in Taiwan and a sudden power outage in Japanese glass factories further intensified the supply chain contradictions, resulting in insufficient panel supply. In order to drive shipments to downstream customers, Peng Shuanglang once used a move to encourage mainland employees in Suzhou AUO and other places to stay in factories during the Spring Festival, so that AUO factories on both sides of the Taiwan Strait can produce at full capacity.
Last year, foreign institutions once sang about AUO and other panel manufacturers, blowing the "front wind" to lower the rating. Many market analysts also believe that the good situation in the first half of last year may be a "flash in the pan" and lack of sustainability.
A few days ago, the three major Taiwanese panel manufacturers AUDA, Qunchuang and Caijing were favored by investment trust institutions, and their stock prices were "for the wind" and they resisted the pressure of foreign capital selling. In addition, the United States has "opened" the list of the mainland panel industry, which in turn has inspired AUO's stock price to rise, and the panel and optoelectronics concept stocks in the Taiwan stock market have been well monetized.
However, according to the data released recently, due to the off-season effect and early closing of accounts, the revenue of several major Taiwanese panel manufacturers declined by 10% in January 2022. Among them, AUO Optoelectronics' revenue in January this year hit a new low in 11 months, with self-contained revenue of NT$27.823 billion, a decrease of 12.4% from the previous month and an annual increase of 4.5%.AUO's revenue in January this year not only fell below the NT$30 billion mark, but also wrote down a single-month revenue low since February 2021.
Peng Shuanglang wore a helmet to look at the three rules of success of AUO Optoelectronics
AUO Optoelectronics founder and honorary chairman Li Kunyao
On May 11, 2015, AUO Optoelectronics founder Li Kunyao retreated behind the scenes and took over Peng Shuanglang, serving as the honorary chairman of AUO. At this point, AUO Optoelectronics entered the Peng Shuanglang era from the Li Kunyao era.
Li Kunyao was born in September 1952, is 70 years old this year, has 2 daughters and 1 son. He graduated from the Department of Electrical Engineering of National Taiwan University. He returned from further studies at the Lausanne School of Management in Switzerland in 1991 and took over as General Manager of BenQ, expanding the company from simple manufacturing to a comprehensive electronic design OEM company in the cross-fields of integrated communications, optics and digital media.
At the end of 2001, he led the establishment of his own brand BenQ and became chairman of the board the following year. By 2005, when BenQ Group was in full swing, Lee Kun-yao "let go" and acquired Siemens mobile phone department. However, he failed in just one year, not only paid a high price of NT$35 billion, but also severely damaged BenQ.
learned from his mistakes. He led BenQ Group to transform, spanning into many fields, founded BenQ Hospital, and entered medical equipment and consumables, becoming a pioneer in the transformation of the information and communication industry. By 2014, he suffered a stroke and faded out of the company's daily operations and management. In 2015, Li Kunyao resigned as chairman of AUO and asked Peng Shuanglang to take over as Dong Zuo; in 2017, he resigned as chairman of Jiashida and asked Chen Qihong to take over. Since then, he has completed the plan to hand over the baton, and only served as chairman of BenQ Dentsu and BenQ AUO Foundation.
By the way, Li Kunyao, Shi Chongtang, Lin Xianming and Wang Zhentang are also called "Acer's Four Sons". Li Kunyao, who is the same age as Shi Chongtang, is not only the earliest group of people in Acer's business, but also an old classmate in the Department of Motors of National Taiwan University.
AUO Optoelectronics was founded in August 1996. It was originally named Daqi Technology. In AUO's "Li Kunyao Era", it completed a second major merger. After the company merged with Lianyou Optoelectronics in 2001, it was renamed AUO Optoelectronics, and in 2006 it acquired Guanghui Electronics again. After the merger, AUO Optoelectronics has become the world's leading panel manufacturer, and has also become the leader in Taiwan's panel and optoelectronics industry.
AUO Chairman Peng Shuanglang
Li Kunyao did not let his children inherit AUO Optoelectronics, but chose professional manager Peng Shuanglang as his successor. What kind of legend is Peng Shuanglang?
Peng Shuanglang is a Hakka native. He was born in 1959 in a farmer's family in Xinpu Town, northern Hsinchu, Taiwan. Hakka people have a tradition of hard work and perseverance. Peng Shuanglang, who was born in a farmer, usually likes to swim and play saxophone, but also likes to grow vegetables.
Peng Shuanglang, who obtained a master's degree in corporate management from Heriot-Watt University in the UK, worked for BenQ Computer in 1988, and later joined AUO Optoelectronics. In 2012, he was appointed as General Manager of AUO.
For a period of time, the panel industry was not optimistic and was listed as one of the "four major miserable industries". Peng Shuanglang, who led AUO Optoelectronics' transformation, faced great pressure. He himself said that he was "wearing a steel helmet", especially in the two years after 2011, he lost NT$10 billion a month. In addition to operating pressure, he also faced verbal attacks, until 2013. The quarterly AUO's financial report was "refreshing" and turned losses into profits. Peng Shuanglang took a breath and said, " doesn't have to wear a helmet! "
At AUO, Peng Shuanglang's work number is "1988". By 2022, it has been his 34th year of serving AUO. When he took over the chairman's stick from his founder Li Kunyao in 2015, his grandson was born and he became a grandfather.
Chairman Peng Shuanglang, who washes hands and implements epidemic prevention measures, is optimistic about the panel prosperity. For the 2022 Tiger Year, he expects that the industry will return to the seasonal cyclical prosperity of 2018/2019. After the peak of the epidemic, the domestic demand industry will slowly recover.
. Regarding South Korea's Samsung withdraws from the LED panel industry, Peng Shuanglang believes that Samsung's withdrawal was decided two years ago. It has previously reduced a lot of production capacity and has little impact on other competitors in the industry.
Over the past few years, many people have been amazed at AUO's successful transformation, but we have also noticed that there are three major rules for its success, which are worth learning from.
first, simplify the complexity. When facing a special task or problem, the problem should be simplified. Because a task is often not a single matter, but a combined situation of complex problems; to ensure the success of the task, it is necessary to refine the problem and use a simplified thinking framework to solve complex problems.
Second, subtle changes will bring great achievements. improves 1% every day, and you will improve 37 times in one year, and you will regress 1% every day, and you will weaken and zero in one year. Often, a little bit of subtle changes will produce unexpected compound interest effects, like snowballing, which will bring great achievements.
Third, good at remote work. Currently, IBM, McKinsey, Intel, and eBay are all using the long-distance online working mode in the workplace. After the epidemic, AUO has adopted a floating adjustment in management and has changed to the AB working mode, with some at home and some at the office.
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