panel manufacturer Youda Jin (17) held a shareholders' meeting. Faced with the recent decline in global economic and market prosperity, Chairman Peng Shuanglang admitted that from April to May, due to the lockdown in East China, the second quarter will not be able to achieve the previously set goals, and the overall environment will have too great impact. The company will adopt a more rigorous attitude towards operations, strictly manage inventory and cash flow, and strive to survive this wave of recession.
AUO's original estimate of overall area shipments in the second quarter will be reduced by 1-3% quarter-on-quarter, and the price will be reduced by about 6-9%. Affected by the global prosperity, Peng Shuanglang said that the operating targets in the second quarter will not be fully achieved, and he is currently working hard to narrow the gap with the target.
Peng Shuanglang said that this year, the global market has a much more gray rhino and black swans than expected at the end of last year and at the beginning of the year. The conflict between Russia and Ukraine has continued to this day, aggravating inflation, including raw materials, oil, natural gas, chemical materials, and gases, which has increased the overall cost of the industry, and the demand for chemical materials and gases in the panel and semiconductor industries has problems.
Peng Shuanglang pointed out that the repeated epidemic and the decline in operational efficiency caused by the US-Sisse port have exceeded imagination in their impact on operations. In addition, central banks of various countries/regions have suppressed inflation and raised interest rates. It is expected that the demand for consumer products will also be exclusion effects in the future. He bluntly stated that the consumer market this year is much sluggish.
Faced with the downward economic downturn, Peng Shuanglang said that central banks in various countries are increasingly moving toward inflation, and it is currently impossible to evaluate how long the economy will last. AUO itself will strive to maintain normal operations by strictly managing inventory and cash flow. Ke Furen, general manager of
, also added that the industry has undergone structural changes this year. After the lockdown in East China in the second quarter, it caused the main industrial chain to be broken, making customers conservative in the future market in the second half of the year. The panel cargo pulling power has indeed weakened. Among them, consumer products have a great impact. It is expected to return to the health of supply and demand, and it will take a long time. AUO will continue to carry out a two-axis transformation strategy, and internally set the medium and long-term revenue from the field economy to reach 20%.
On the other hand, AUO today's shareholders' meeting also renamed the company's English name from the original AU Optronices Corp. to AUO Corporation.
Source of information: Juheng.com
Cover image source: Paixin.com
