BOE wants to produce LCD TVs
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Beijing-based?LCD panel maker BOE Technology Group Co, which is expected to post a loss of 1 billion yuan (US$147 million) this year, announced yesterday it will invest 384 million yuan to venture into the crowded LCD TV market in China.
Under the plan, BOE will establish a subsidiary in Beijing to promote and sell LCD (liquid crystal display) TVs under the BOE brand. It hopes to sell 3.62 million LCD monitors and TVs annually, BOE said in a statement to the Shenzhen Stock Exchange.
"We have to establish a solid platform to absorb our production capacity," said BOE in a statement.
All LCD panel makers have had a tough time because the panel price dropped dramatically during the financial crisis with reduced demand for personal computers and TVs.
BOE also announced yesterday a loss of 757 million yuan in the first three quarters and it expected to lose 1 billion yuan this year, following a loss of 800 million yuan in 2008.
BOE dropped 4.99 percent to 4.57 yuan yesterday, compared to the Shenzhen index's 2.5 percent loss. Analysts said it's risky for BOE, with no TV sales experience and distribution channels, to enter the market.
