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CHINA DAILY » CHINADAILY.COM.CN/BUSINESS Friday, October 27, 2017 BOE looks to upstage Samsung

Chinese company BOE has so far invested “The flexible AMOLED dis- 160 million pieces by the end of 46.5 billion yuan ($7 billion) play brings more possibilities 2017, with an estimated annual starts production in the production to a phone’s appearance,” said compound growth rate of 88.2 of AMOLED line, which is also the coun- Zhang Yu, senior vice-presi- percent up to 2020. try’s first such facility. It main- The flexible dent of BOE. He said Industry experts expect display panels at ly produces display panels AMOLED panels are in short Chinese manufacturers to eat used in mobile products and AMOLED display supply, and the market is so into Samsung’s market share Chengdu facility smart wearable devices. It can big that there is virtually no by 2019 as they increase A worker at the car production line of FAW-Volkswagen in Chang- turn out 48,000 glass sub- brings more competition. “We are now investment and production in chun, capital of Jilin province. ZHU WANCHANG / FOR DAILY By FAN FEIFEI in Chengdu strate panels (at 1850mm solving the problem of insuffi- the sector. “China has become [email protected] ×1500mm) every month. possibilities to cient production capacity.” the world’s largest producer The commencement of AMOLED technology is and consumer of mobile BOE Technology Group Co mass production indicates a phone’s physically flexible with a fast phones, but the flexible German firms Ltd, a supplier of display that Chinese companies are response, high contrast and AMOLED display market has products and solutions, on slowly taking center stage in appearance.” wide visual angles, compared been dominated by South Thursday commenced mass the global AMOLED industry Zhang Yu, senior vice-president with traditional liquid crystal Korean companies,” said eye innovation production of active-matrix and breaking the monopoly of BOE display panels. John Wang, an analyst at Sig- organic light-emitting diode of South Korean companies South Korean technology maintell Consulting Co Ltd, a display screens ahead of in flexible and foldable panels ther development of the Chi- giant panel industry consultancy. By SHI JING in Shanghai innovation instead of compet- schedule at its facility in for high-end . nese organic light emitting Co currently dominates in Wang said the AMOLED [email protected] ing on costs in recent years. Chengdu, province. “Mass production at the diode industry and the global AMOLED technology and technology is the future for The ongoing transformation The Chinese company said Chengdu plant will greatly industry. BOE products, accounting for a panels, adding German manufacturing has also impacted German that the sixth-generation flex- enhance BOE’s competitive- has another sixth-generation market share of around 90 the flexible display technolo- companies in China will shift companies in China, with up ible AMOLED display panels ness in high-end smart- flexible AMOLED line in percent. These panels were gy will play a vital role in from product to business mod- to 23 percent of the surveyed have already been delivered phones and mobile displays , Sichuan province, used in its Galaxy series of small and medium-sized dis- el innovation in the next three companies being involved in to more than 10 smartphone and also meet the fast-grow- that is expected to start pro- smartphones. play sector. years to sustain growth in the research and development manufacturers including ing demand for small and duction in 2019. Statistics from industry con- Around 23 percent of glob- country, a new survey said. activities in China that gener- Technologies Co, medium-sized display pan- Market research firm IHS sultancy CINNO Research al smartphones had Innovation in all its forms ates improved or new prod- Electronics Corp, Vivo els,” said Chen Yanshun, CEO Markit expects BOE to be the showed that shipments of flex- AMOLED display panels last will, however, continue to be ucts for world markets. “We Mobile Communication Tech- of BOE. world’s largest supplier for ible AMOLED smartphone year. The figure is expected to the key driver for business expect this trend to accelerate nology, Corp, ZTE Chen added the move is of AMOLED display panels in panels reached 55 million reach 64 percent in 2021, activities in China with Chi- in the mid-term,” he said. Corp and . great importance to the fur- 2019. units last year, and will rise to according to Sigmaintell. nese companies leading the To further drive innovation, way, according to the Innova- nearly 50 percent of the polled tion Survey of the Greater companies said they would Shanghai Region that was seek external tie-ups in the released on Wednesday. next three years, including Moutai surges to record high on profit growth For German companies, working with startups and innovation was ranked among even competitors. By ZHU WENQIAN the top three priorities as it In terms of cooperation with in and was necessary to Chinese com- YANG JUN in Guiyang meet customer panies, 45 per- needs, to differ- cent of the Shares of Kweichow Mout- entiate from respondents ai Co Ltd rose to a record high competitors, and $37.7 opted for in Shanghai on Thursday aft- to attract new million acquisitions er the Chinese maker customers. while the sec- posted an impressive growth annual turnover of 50 Nearly 80 per- ond best in third-quarter earnings. percent of surveyed firms cent of the sur- choice was The distiller from the town veyed companies investment in of , province expect an increase in their inno- a Chinese company. Mergers had earlier reported a 60 per- vation output over the period, seemed to a less preferred cent jump in net profit for the but only 41 percent have a well- option for German companies first nine months of the year defined innovation strategy. due to the unwanted technolo- and 138 percent growth in The survey was conducted gy transfer and intellectual third quarter earnings on earlier this year by the Ger- property protection concerns. higher sales. man Chamber of Commerce “Digitalization has pushed shares in China, Shanghai, in associa- most of the German compa- rose 6.97 percent to close at tion with Tongji University nies to their limits and hence 605.09 yuan ($91.3) on Thurs- and global market consultan- they have to open up,” said Lin. day. Its market value has cy Goetzpartners. Bettina Schoen, chairwoman exceeded 760 billion yuan, The survey received 111 val- of the board of the German outnumbering that of China’s id responses, most of which Chamber of Commerce in Chi- oil giant Group. were from senior executives of na, Shanghai, feels that the Chi- In the first three quarters of German manufacturing com- nese authorities should this year, the company’s reve- panies in the River promote a wide-ranging inno- nue rose 59.4 percent from the Delta region. About two-thirds vation eco-system that offers same period a year ago to 42.45 of these companies have been institutional and cultural sup- billion yuan. During the same An employee of Kweichow Moutai Co Ltd puts labels onto bottles of the Chinese liquor. PROVIDED TO CHINA DAILY in China for 10 years and 50 port to foster a transparent and period, the net profit attributa- percent of them had an annual accessible innovation culture. ble to shareholders reached Li Baofang, general manag- International Capital Co Ltd “From 2018 to 2020, the pri- mark index turned in a posi- turnover of 250 million yuan In addition, steps are also 19.98 billion yuan, up 60.31 per- er of Moutai Group, said the said in its report on Wednes- ces of Moutai’s classic Feitian tive performance. ($37.7 million) last year. needed to enhance the educa- cent from a year ago. The distill- company hopes to forge a day that it maintains a “rec- liquor are expected to In addition, on Oct 31, Lin Tao, a partner at Goetz- tional efforts in schools with an er said the continuing hot sales new growth area, and make ommend” grade for Moutai, increase by 22 percent, 15 per- Moutai airport in the city of partners, said that Chinese added focus on vocational train- of its products have supported finance the second-largest and has increased its target cent and 15 percent each year, Renhuai, Guizhou province companies had focused their ing to stimulate creativity and the earnings growth. backbone business of the price for the share to 845 yuan respectively. The sales chan- will start operation, and it will efforts on business model boost innovation capabilities. The company also had one company. By 2020, the per share. nels of Moutai will continue launch flight routes to most of the best cash flows and net finance operation will “In the third quarter, Mout- to expand to more smaller major Chinese cities. Besides profit margins among listed account for 15 percent of the ai expanded the supply of its Chinese cities and e-com- some preferential fare prices Alibaba among top R&D spenders Chinese companies, Moutai total revenues of Moutai spirits to 11,000 metric tons. merce platforms.” introduced by airlines, those plans to revitalize its idle Group, Li said. The high-end spirit market in Meanwhile, shares of many who fly to Moutai airport on funds by entering the finance In the year to date, shares of China led by Moutai is expect- other Chinese spirit compa- the first day of its operation Alibaba Group Holding Ltd Adam Xu, partner with PwC sector and setting up a finan- Moutai have surged about 70 ed to embrace an explosive nies, including Sichuan-based will get free memorial liquor. was included in the world’s top Strategy&, said Huawei is also a cial business entity that percent, and many agencies growth,” said Xing Zhiting, an and Sichuan-based 10 most innovative companies, big spender on R&D. involves loans, insurance and have continued to raise their analyst from China Interna- Laojiao Group jumped Contact the writers at zhu- the first time for a Chinese “According to its full-year asset management. earnings forecasts. China tional Capital. on Thursday, and the bench- [email protected] company, according to the 2017 annual report, Huawei results of a survey released in spends 76.4 billion yuan, or $11 Shanghai on Thursday. billion approximately on R&D in The survey by PwC Strate- 2016, making it the highest gy&, a consultancy services spender in China and the eighth Zhongwang acquires majority stake in SilverYachts provider, which polled 562 glob- largest spender among the al executives on research and Global Innovation 1,000 (com- By ZHENG XIN navigate the high-end marine team in Australia as well as in oversupplied with low-end development, said that China’s pared to ninth in 2016),” said Xu. [email protected] sector at full speed, as both China.” commodity-grade metals companies were among the In China, industry remained companies share the same Analyst said the acquisition such as aluminum, but in sup- world’s top 1,000 R&D spend- the number one sector in R&D -listed China vision of offering best-in-class of SilverYachts signifies the ply deficit for high-end prod- ers (all are public companies), spending, with combined $15.9 Zhongwang Holding Ltd products that exceed client China’s metal Chinese aluminum maker’s ucts, such as high-end spending a total of $45.2 bil- billion spending on innovation announced the completion of expectations,” said Lu Chang- resolution to directly enter aluminum alloy for auto, air- lion, or 6.4 percent of the world- in 2017, followed by software its acquisition of a majority qing, president of China producers are the downstream-end product planes, yachts and others. wide total in 2017. and internet at $10.28 billion. stake in SilverYachts, an Aus- Zhongwang Holding Ltd. manufacturing business. The transaction comple- Alibaba spent $2.5 billion for Healthcare is the sector with tralia-based all-aluminium While the cooperation will working hard to “China Zhongwang’s acqui- ments China Zhongwang’s an R&D intensity of 10.8 per- the fastest growth in spending superyacht builder, on Thurs- allow Zhongwang to further sition of shares of SilverYacht recent acquisition of Alunna in cent, a measurement that cal- on innovation, which recorded day, a strategic move to expand broaden its product applica- upgrade their shows the company’s decision Germany, and is another inter- culates spending on research 10.4 percent year-on-year aluminum application in the tions in the marine segment to target high-value added national acquisition that helps and development related to growth in 2017, at $610 million. high-end marine sector. with comprehensive coverage product mix ...” aluminum products, to gain the company to expand its sales revenue. The average The world’s top three innova- China Zhongwang, the in the lightweight transporta- higher margins instead of business segments and opti- Zhu Yi, analyst at Bloomberg intensity of the world’s top tive companies are Alphabet world’s second-largest alumi- tion domain including avia- some low-margin industrial mize its product mix, it said. Intelligence 1,000 was below 5 percent. It Inc, Apple Inc, and Ama- num extruder, said the acqui- tion, railways, automobiles, products,” said Zhu Yi, a Hong In September, China was ranked in 10th place zon.com Inc. sition is meant to advance the and navigation, the partner- Kong-based analyst at Bloom- Zhongwang announced that among the world’s most inno- Total spending on innovation Chinese aluminum maker’s ship will also give SilverY- founder of SilverYachts. berg Intelligence. it had bought a controlling vative companies. among the top 1,000 most deep-processing strategy to achts a stronger presence in “China Zhongwang’s “China’s metal producers stake in a German aluminum China has 130 public compa- innovative companies was the marine sector, while Asia, it said. strong backing will enable us are working hard to upgrade extrusion firm to add to its nies among the world’s 1,000 $700 billion in 2017. boosting its international “The partnership with Chi- to accelerate our pace of their product mix, to gain portfolio of high-value-added most innovative companies, expansion. na Zhongwang marks a new expansion and broaden our exposure for high-end prod- automotive and aerospace according to the report. WU YIYAO “We are delighted to join page for SilverYachts,” said market reach, and SilverY- ucts.” products and get exposure to hands with SilverYachts to Guido Alexander Krass, achts has plans to expand its Zhu said China is currently Europe and the US market.