On June 12th, the mid-term strategy of CSC Securities in 2018 was held in Beijing. The “FireWire” in the financial sector hit the scene. The CEO of BOE, Chen Yanshun, first responded to the impact of Sino-US trade war on BOE.
According to Chen Yanshun, the trade war between China and the United States has had little impact on the stability of the BOE display business and the market. BOE's current production line has two major categories, one is the LCD industry and the other is OLED.
The BOE LCD's raw materials and equipment have basically achieved dualization, localization, and localization. Duality refers to the principle that purchases of equipment and raw materials must not be purchased from companies in three different regions in the same country. The reason for localization is that BOE’s raw material needs are relatively large. There are 100 billion yuan purchases each year. Therefore, suppliers will basically consider the needs of the Chinese market, set up factories in China, and then achieve local production. Localization is China's ability to grasp the raw material technology, BOE to help Chinese companies to promote the display of the domestic development of the industrial chain.
According to Chen Yanshun, BOE OLED's localization, dualization, and localization add up to more than 90% of the product supply. “The remaining parts, like OLED luminescent materials, are provided by US manufacturers. With the continuous expansion of BOE OLED production capacity, the purchase volume may be slightly larger, but the total amount is not too great. It should be said that the trade war is stable for BOE. Sex and the market have not had much impact,” added Chen Yanshun.