中国大陆显示产业趋势及BOE角色

    女士们、先生们：

    早上好！我是来自BOE的王东升。很荣幸有机会在圣迭戈这一美丽城市与大家交流。

    我演讲题目是“中国大陆显示产业发展趋势和BOE的角色”。

    分“现状与趋势、存在问题和努力方向”三部分。

    如同其他高科技产业一样，中国显示产业是在痛苦中成长。回顾过去，我们可以看到中国显示产业比其它国家起步晚了近十年。发展初期，产业基础薄弱，加上过山车般液晶周期影响，价格大起大落，日子艰难。十几年来，随着产业不断巩固和投入，中国大陆显示产业的发展已经比较成熟和稳定。

    早先，我观察到若要生存下去，每36个月显示面板性能须提升一倍以上，以维持一个既有价格水平。我将其称为“生存定律”，并下定决心，BOE绝不能落后于这个周期。还算幸运，我们活了下来！现在，这一周期还在缩短。

    今天，中国大陆已是全球显示终端产品的最大消费市场和生产基地。

    消费面看，2013年，中国大陆市场智能手机销售量约3.2亿台，平板电脑约5300万台，笔记本约3500万台，显示器约4500万台，电视约4800万台。上述细分市场规模几乎都是全球最大。2014年，上述显示终端产品总量仍将保持两位数增长。另外，DID等市场规模也在不断扩大。

    生产面看，2013年，中国大陆生产智能手机约8.71亿台，平板电脑约1.8亿台，笔记本约1.5亿台，显示器约9900万台，电视约1.17亿台，已成为全球显示终端最大生产基地。

    中国很快成为全球领先的面板生产基地。按产出面积计算，2013年中国大陆出货量占全球份额13%，预计2016年可达26%。目前，中国有五家主要的显示面板制造企业，BOE是最大的一家，去年BOE出货数量超过半数。

    尽管中国面板产能不断扩大，但仍不能满足本地化配套需要。2013年，在中国大陆销售的显示终端，采用本地生产的液晶面板约占25%。当年中国大陆进口液晶面板总额约500亿美元，排在石油、集成电路芯片、铁矿石之后。

    Display Search数据分析，到2020年，全球显示屏仍将保持4.1%的年复合增长率，其中，高性能a-Si TFT-LCD, LTPSTFT-LCD，Oxide TFT-LCD，LTPS AMOLED, Oxide AMOLED等高性能显示器件将保持两位数的增长。

    不仅在低成本制造方面，在高性能面板方面中国大陆也将在全球扮演增长的重要角色，目前，我们不但可生产高性能a-Si TFT-LCD显示屏，也可生产LTPS TFT-LCD, Oxide TFT-LCD和AMOLED等新型显示器件。2014年，中国大陆新投产显示面板工厂有4座，其中包括京东方两座。2014年中国大陆在建8.5代工厂有2座，其中京东方一座，将于2015年下半年投产。

    BOE创建于1993年，由创业团队和员工出资650万种子基金开始。我们初期从事CRT电子零件以及TN-LCD等制造业务；1997年成立TFT-LCD研究室；2001年生产手机用STN-LCD，设立AMOLED实验室；2003年1月并购Hydis TFT-LCD业务，并在中国大陆建设首条5代TFT-LCD生产线。目前，BOE已成为中国大陆该产业龙头，拥有6条运营产线，还有一条G6触摸屏生产线和一条G8.5代LCD生产线在建中。

    我们可提供1.5英寸到110英寸的全系列显示产品，BOE G4.5、G5、G6 a-Si LCD产线，G5.5 LTPS LCD和AMOLED产线生产智能手机面板。G8.5 a-Si LCD 产线、G8.5 Oxide LCD和AMOLED产线生产平板电脑、笔记本电脑、显示器和电视面板。G4.5代生产线还生产车载和穿戴用屏。

    如之前提过，生存的关键在于快速、持续的性能提升。因此，BOE一贯重视对技术研发的投入，2008年以来技术研发投入占销售收入比重保持在约7%。截至2013年底，新申请专利达4200余件，为全球业内前二，研发人员人均申请量为全球业内第一。累计可使用专利超20000件。我们还与全球顶尖大学、研究所和企业积极开展合作，实现价值共创。

    我们产品出口全球，你可以在世界知名品牌中看到我们的显示产品和技术。去年我们用于手机和平板的LCD面板出货量位居全球第一；35%的产品是全球首发；我们获得业内诸多奖项。我们取得了很多成绩。

    尽管取得了很多成绩，我们不应满足。作为BOE董事长，我对公司业绩并不满意，对行业表现也并不满意。

    我们每年生产的面板数以亿计。它们是技术和研发创造的奇迹。但是它们利润很少。可能早上卖给你咖啡或水的公司都比大部分面板厂商赚钱。

    这就是为什么我说显示面板行业在痛苦中成长。我们快速发展，我们投资巨大，但是投资回报有限。我指的还不只是利润方面的回报。

    在可持续成长方面，我们需要开拓新应用。1990年TFT-LCD产业化以来，显示产业经历了笔记本电脑、台式显示器、电视、智能手机和平板电脑四次应用浪潮。技术进步和市场应用创新是浪潮背后的关键推动力。下一个浪潮呢？BOE需要与全球伙伴携手努力！

    此外，我们对所在世界还不能形成足够影响力。从失业到人情淡漠，从全球变暖到空气污染，到慢性病，我们的世界面临着巨大挑战。然而，显示屏主流应用仍然集中在消费电子，包括一些分享和联通，主要还是娱乐消遣和信息获取界面。但我相信显示行业应该能做的更多！我们必须认真思考自己在其中的责任和使命。

    解决这些挑战，需要不断推进信息、通讯、显示等新技术在各行各业的应用。

    作为显示产业链的企业，我们必须改变，引领这个变革的新时代，不断创新观念、技术和应用。以颠覆性创新的智慧和勇气，为解决上述世界性难题做点贡献！这是我带领BOE的方向，我希望BOE能致力于解决这些挑战，赢得“技术、服务和价值创造的全球创新者”口碑。

    比拼价格的路已经到头了。如果仅有的举措是比拼价格的话，我们不可能成为伟大公司。我们希望开启积极向上的竞争：提升价值，实现转变，为中国，为整个世界！

    这确实是个不错的想法。但是在我提到我们要改变时，究竟是什么意思呢？BOE显示产品战略和路线图称为5P+H。5P指的是：至真至美的画质（Picture）、越来越低的功耗（Power）、功能融合的解决方案（Panel as System/Service）、引领时尚的气质（Pilot of Fashion）、最佳的性能价格比（Price），H指显示产品应有利于人们健康（Health）。我们坚持按生存定律要求，在5P+H方向上不断提升显示产品性能，为客户提供令人激动产品和服务，创造新价值。

    我们开发了500ppi手机屏、8K TV屏、0.6w/inch 低功耗TV模组、In-Cell、On-Cell Touch技术的创新产品，以及裸眼3D、透明显示、柔性显示、超窄边框等多项技术解决方案。一些产品刚好参与本次展会，欢迎大家去展台看看。

    更重要的是我们新业务模式的转变。我们正在寻求可以用于健康医疗等方面的显示产品和传感器，也会在合适的时机，通过显示增加新服务、新能力、新合作，提供新价值。

    这是巨大的转型，我预计需要多年时间完成。我们正在转变成为更加全球化的公司，与国际顾问公司合作，并在海外建立设计和研发机构。我们的团队和人员也在转变。我要求我的团队更加关注价值、合作、长期盈利性和影响力，而非仅仅是销量和销售收入。

    我们将始终坚持客户导向，以开放心态与全球产业链合作伙伴深度合作、协同开发、价值共创，分享机会，实现共赢。

    如果你正在寻找一个能提供好产品、好价格的伙伴，一个能够帮助你真正解决问题、价值共创的伙伴，那就是BOE！

    最后与大家分享一段视频。

    我相信这就是未来的显示，显示一定会帮助我们让世界更美好！

    谢谢！

    Ladies and gentlemen,

    Good morning! I’m Wang Dongsheng, from BOE. It’s a great honor for me to have this chance to communicate with you in this beautiful city of San Diego.

    The title of my presentation today is Trends in Mainland China’s Display Industry and BOE’s Role.

    It includes three parts: status quo and trends, existing problems and the direction we are taking.

    Like other parts of the high technology industry, China’s display industry is suffering from success. That sounds odd, but let me explain what I mean.

    If we look back, we see the display industry in China started a decade later than in other countries. Early on, the technology foundation was weak. And price rose and fell like a rollercoaster under the influence of the LCD cycle. It was really hard, but following a decade of industry consolidation and investment, we have a much more mature and stable business environment.

    Early on, I observed that to survive, we needed to double panel performance metrics for a given price point every 36 months. I came to think this as the “Survival Law”, and I was determined that at BOE we would never fall behind this cycle. Luckily, we have survived. Now, the cycle is getting shorter.

    Today mainland China is the world's biggest consumer market and manufacturing base for display applications.

    On the consumption side, last year in China market, about 320mn smart phones were sold, about 53mn tablet PCs, 35mn notebooks, 45mn monitors and 48mn TV sets, in almost every case this makes it the largest market in the world. In 2014, the sales total of the above display applications will keep a double-digit growth. In addition, the market scale of Digital Information Display is continuously expanding.

    On the manufacturing side, last year, Mainland China has produced about 871mn smart phones, 180mn tablet PCs, 150mn notebooks, 99mn monitors and 117mn TV sets, in every case the largest in the world.

    Mainland China will soon become the world’s leading panel manufacturing base. China's LCD panel shipment last year amounted to 13% of the world's total, and is expected to reach about 26% in 2016. Currently, there are five major display panel makers in mainland China, of which BOE is the biggest. Last year, our shipment accounted for over half of mainland China’s total.

    Although China’s panel capacity is growing, it still cannot meet local demands. In 2013, among display applications sold in mainland China, only 25% used domestic LCD panels. Imported LCD panels last year were worth about US$ 50bn, ranking 4th in imports, after oil, IC chips and iron ores.

    According to DisplaySearch data analysis, global display panel market will grow at an annual rate of 4.1% to 2020, while high-performance a-Si LCD, LTPS LCD, Oxide LCD, LTPS AMOLED, Oxide AMOLED and other high-performance display devices will enjoy a double-digit increase.

    More than just low cost manufacturing, mainland China will play an important role in growing the most advanced panels. At present, we can both produce high-performance a-Si LCD panels, and make new display devices like LTPS LCD, Oxide LCD and AMOLED. In 2014, 4 new display panel fabs will be put into operation in mainland China. Two of them belong to BOE. Also in this year, mainland China has 2 more GEN8.5 fabs under construction, of which BOE's fab will start production in the 2nd half of 2015.

    I could not have imagined just how big this market would become when I helped found BOE in 1993. We started with just RMB 6.5mn seed fund by the start-up team. That is about US$1 million. I hear you can get 100 times that these days for starting an instant messaging app. Perhaps we are in the wrong business!

    At the early stage, we used to manufacture CRT components and TN-LCD; in 1997, the TFT-LCD research lab was set up; in 2001, we began making STN-LCD panels for mobile phone and set up an AMOLED lab; in 2003, we acquired Hydis and built the first GEN5 TFT-LCD line in mainland China. Up to now, BOE has 6 lines in operation, a GEN6 touch panel line and a GEN8.5 LCD line under construction.

    We can supply display panels from 1.5-inch to 110-inch. BOE's GEN4.5, GEN5, GEN6 a-Si LCD lines, GEN5.5 LTPS LCD and AMOLED lines make panels for smart phone. GEN8.5 a-Si LCD line, GEN8.5 Oxide LCD and AMOLED lines make panels for tablet, notebook, monitor and TV. GEN4.5 line also makes panels for car and wearable display devices.

    As I mentioned before, the key to survival has been quick and continuous gains in performance. Consequently, BOE always attaches great importance to R&D. Since 2008, we have kept our R&D spend about 7% of total revenue. In 2013, BOE's new patent applications have reached over 4,200, ranking No.2 globally in the industry; the patent applications number per R&D staff ranks No.1 in the industry. We have over 20,000 usable patents. We have also been actively carrying out joint R&D with world's top universities, institutes and enterprises, in order to create value together.

    We’re a global exporter and you will find our panels and technology in some of the world’s biggest brand names. Last year, our LCD panel shipment for smart phone and tablet ranked No.1 worldwide; 35% of BOE products were first-global-launch products in the market; we gained many awards in the industry. We have accomplished a great deal.

    Despite our great accomplishments, we should not be satisfied. As the Chairman of BOE, I am not satisfied with our performance as a company and I am not satisfied with our performance as an industry.

    We make millions upon millions of display panels each year. They are marvels of technology and research. But they are barely profitable. Chances are the company that sold you a cup of coffee this morning or a bottle of water makes more money than most display panel makers.

    This is what I mean when I say we are suffering from success. We grow enormously, we make huge investments, but the returns are not adequate. And I am not just talking about returns in the form of profits.

    We need to explore new applications for sustainable growth of the industry. Since 1990, the display industry has experienced four application waves: notebook, monitor, TV, smart phone and tablet. Behind each wave, the key driving forces are technology advancements and innovation in market application. What about the next wave? BOE needs to make efforts together with global partners.

    Also, we are not making enough impact on our world. From unemployment to indifference between people, from global warming to air pollution to chronic disease, we are facing huge challenges as a world. However, mainstream applications of display are still related with consumer electronics, offering people the interface to get entertainment and information，and also as a tool to share and connect. But I believe the display industry should do more than that. We must take our personal responsibility and aspirations seriously.

    Addressing each one of these challenges will require advancing the application of information, telecommunication and display technologies in all walks of life.

    As a company in the display industry chain, we have to change. We have to lead this new age of transformation, to continuously innovate concepts, technologies and applications. With the wisdom and courage to carry out disruptive innovation, we should contribute to solutions of the challenges mentioned earlier. This is the direction I am taking BOE. I want the future of BOE to be about addressing these challenges and earning us a global reputation as an innovator in technology, service, and value creation.

    We are done with the race to the bottom. We have no future of greatness if our only measure of impact is price. We want to run a race to the top: to add value, to deliver transformation, and to do it for China and the whole world.

    This is a nice idea but what do I really mean when I say that we have to change? BOE's product strategy and roadmap is called 5P plus H. 5P includes Picture, providing best-quality pictures; Power, increasingly power-efficient; Panel as System & Service; Pilot of Fashion; and of course best Price. H means display products should be good to people's Health. We always improve the performance of our display products following the 5P plus H roadmap and Survival Law.

    We have developed innovations including 500ppi mobile phone panel, 8K TV panel, 0.6w/inch low power consumption TV module, products with In-Cell and On-Cell Touch technology, as well as some other technology solutions including glasses-free 3D, transparent display, flexible display, ultra-slim bezel, etc. Some of these products are on show here at Display Week. When you have time, please come by our booth and take a look.

    Even more important, we have developed new approaches to business we are putting in place. We are looking at displays and sensors that can be used in healthcare. When it’s appropriate, we will add new services, capabilities and partnerships that deliver value through and utilizing displays.

    This is a huge transformation and I expect it to take many years. We are in the process of becoming a much more global company, working with global advisors and building design and research facilities outside of China. We are transforming our teams and people as well. Instead of only talking about volume and revenue, I am asking my teams to talk about value, partnership, long term profitability and impact.

    We will always be client-oriented. We will always be open-minded and build strong cooperation with partners around the world to achieve collaborative development and value co-creation. Let’s share the opportunities.

    If you are looking for a partner that will supply good products with good price, a partner who will help you solve real problems and create value together, that is BOE.

    Is it the same direction as the rest of the mainland’s display industry? I don’t know. Our intention is to lead and not to turn around and look back to check where everyone else is going.

    Last but not least, I’d like to show a short video.

    I believe this is the future of display. Display is bound to help us make a better world.

    Thank you. Thank you for your attention.