Panel companies manipulate price behind: anti-Japanese manufacturers

After the New Year holidays, the Chinese mainland government’s news of the monopoly of foreign companies’ price monopoly became a hot spot of concern. According to the National Development and Reform Commission, South Korea's Samsung, LG, China's Taiwan region Chi Mei, AUO and other six large international panel makers, due to the monopoly of LCD panel prices, the National Development and Reform Commission economic sanctions 353 million yuan. This is also the highest amount of price violations issued by China to date.

Li Rongfang, a senior analyst at Tac Tac Securities, believes that the anti-monopoly of the National Development and Reform Commission is undoubtedly a long-term positive for Chinese color TV companies and panel companies.

According to industry insiders, behind this anti-monopoly, which is unexpected from all walks of life, is the upper-level game of various panel companies. In order to break the monopoly of Japan and prevent Japanese manufacturers from becoming monopoly, the EU, the United States, etc. The price manipulation of Taiwanese manufacturers is a tacit attitude.

The National Development and Reform Commission broke the price monopoly

According to the NDRC, from 2001 to 2006, six LCD panel manufacturers, including South Korea’s Samsung, held 53 “crystal conferences” in Taiwan and South Korea to exchange LCD panel market information and negotiate LCD panels for the global market. price. When selling LCD panels in mainland China, the companies involved manipulated the market price of LCD panels according to the price negotiated by the crystal conference or exchanged information, which damaged the legitimate rights and interests of mainland color TV enterprises and consumers.

In the list of fines, LG's fines amounted to 118 million yuan, Samsung's 101 million yuan, Chi Mei's 94.41 million yuan, AUO 21.89 million yuan, Zhonghua Yingguan 16.2 million yuan, Haoyu Caijing 240,000 yuan, Taiwan AUO was fined for the first time.

The above-mentioned fines include the return of illegal income and the fine. It is reported that up to now, TCL, Skyworth, Konka, Sichuan Changhong and other nine major color TV companies in the mainland have received a refund of 172 million yuan, but due to the small amount involved, each company said it will not have a significant impact on the current results.

According to the NDRC, the companies involved have promised to do their utmost to provide fair supply to China's national color TV companies, to provide all customers with the same high-end products, new technology products procurement opportunities; commitment to China's color TV enterprises domestic TV sales of the panel free warranty service period by 18 The month is extended to 36 months. It is understood that South Korea's LG, Taiwan's Chi Mei, AUO and other companies have begun to implement the warranty extension policy before December 2012, South Korea's Samsung will also be implemented on January 1, 2013. According to industry association estimates, this alone can reduce maintenance costs of 395 million yuan for mainland color TV companies.

However, in terms of the industry's climate, the NDRC's anti-monopoly is undoubtedly a long-term positive for color TV companies and panel companies in mainland China.

According to statistics, from 2001 to 2006, panel costs accounted for about 80% of color TV production costs. In recent years, this proportion has declined, but it is also around 70%. The price monopoly of international panel companies directly leads to the loss of cost advantages for Chinese color TV companies.

Li Nufang, a senior analyst at Tac Tac Securities, told reporters that now, from the sales of TV sets, Chinese color TV companies are starting to rise. Panel makers in South Korea and Taiwan are basically targeting China. They are afraid to give up now. The Chinese market does not dare to raise prices at will.

In addition, Li Rongfang said that Chinese panel companies have risen very quickly in recent years and now they have reached a strategic key point. The combined production capacity of BOE and TCL accounts for 20% of the world's production capacity. On the occasion of the reversal of the interface plate, the National Development and Reform Commission punishes six companies, including Samsung, to break the price monopoly. It is undoubtedly a great force for Chinese panel companies, and it is a positive for all aspects.

Behind the manipulation price
Regarding the punishment of the National Development and Reform Commission, Samsung said that it should face history, respect history and respect Chinese official decisions.

According to industry insiders, behind this anti-monopoly, which is unexpected from all walks of life, is the upper-level game of various panel companies.

According to industry insiders, from 2000 onwards, panel companies are facing technological transformation, and before 2005, a period of large-scale production of new technologies. At that time, Japan was far ahead in terms of new technologies and was in a monopoly position. In order to break the monopoly of Japan and prevent Japanese manufacturers from becoming dominant, the EU and the United States were acquiescence to the price manipulation of Korean and Taiwanese manufacturers.

“At the time, the technological transformation brought about a lot of investment pressure on enterprises. Even now, the cost of the previous production line is still very high. Moreover, at the time, and the depreciation period of production lines in Korea and Taiwan is also very short, so enterprises must Controlling the price of the product, if the product price is avalanche, the profitability can't keep up, the performance of the panel company will be very poor."

The industry believes that the current market situation is caused by the market structure before 2005. If there is no joint manipulation price of these manufacturers before 2005, it will not have such a big impact on Japanese manufacturers, nor will it lay the current status.

Li Rongfang also believes that because of the financial crisis in Southeast Asia, Japanese manufacturers have concerns as industry leaders, and technology upgrades are rare opportunities for an industry to bend overtaking. At that time, large-scale production was mainly carried out by manufacturers in South Korea and Taiwan, and they became the first and second of the world's interface board manufacturers as Japanese companies invested less in the next generation of technology.

The above-mentioned insiders said that when the common rival disappeared, the original alliance formed a differentiation under the new market pattern competition, and some people began to stand up and report.

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