Recently, many panel companies such as BOE, South Korea LGDisplay, AUO Optoelectronics , and Qunchuang Optoelectronics have successively announced their first quarter financial reports for 2018. It can be seen that the revenue and profits of major manufacturers have declined year-on-year or even lost money. When analyzing the performance of the quarter, all companies mentioned that their performance was poor and were affected by the "decline of panel prices."
According to relevant data, Taiwan panel manufacturer Qunchuang Optoelectronics achieved a net profit of NT$2.94 billion (US$98.61 million) in the first quarter of 2018, a month-on-month decrease of 31.5% and a year-on-year decrease of 75.2%; this is also the lowest revenue quarter in its seven consecutive quarters. The price of
panel continues to decline: Qunchuang Optoelectronics' net profit fell by nearly 70% in Q1 2018. One of the major reasons for the price of
panel is of course the sufficient production capacity. Undoubtedly, BOE's production capacity performance this year is really too eye-catching, ranking first in the world in LCD panel shipments in the first quarter. In addition, BOE is recently negotiating cooperation with Samsung Electronics . In mainland China, policy subsidies have achieved economies of scale by losing output, and Korean partners have assisted in the sales of production capacity, which will surely bring huge lethality to global TV panel prices. China's Taiwan panel two-character panel champion, AUO and Qunchuang, may be the first to bear the brunt.
Industry insiders predict that in the second quarter, the decline in shipments of Qunchuang Optoelectronics large-size panels will reach 4~6%, and the average selling price will drop by 7~9%. It is expected that the total TV shipment volume will reach 100,000 units per month in the second quarter.
