Against the BOE to accelerate the layout of the Internet of things

Against the BOE to accelerate the layout of the Internet of things

Author Lv Qian

On November 6, one day before the opening of the Beijing Oriental Global Innovation Conference, Wang Dongsheng, founder and chairman of the Beijing Oriental Global Innovation Conference, stayed at the conference hall until midnight to make speeches and rehearsals. Beijing Oriental insiders revealed that in 2019, the entrepreneur who led Beijing Oriental Science and Technology Group Co., Ltd. through 25 years of experience, is likely to announce retirement and withdraw from the front line. In response, BOE responded to the first financial reporter, saying that it is not yet certain. But at present, Wang Dongsheng, as the top leader of the group, still needs to lead the team to take every step.

According to public information, Wang Dongsheng, chairman of Beijing Oriental Group, was born in April 1957. He was a person from Dongyang, Zhejiang Province. He led the founding of Beijing Oriental Group in 1993 and developed it from an electronic component enterprise to a highly competitive global display industry enterprise. Along the way, Wang Dongsheng and Beijing Oriental experienced a downturn in the industry, sustained losses, from scratch, until now the era of artificial intelligence.

Clear Internet of things strategy

Compared with last year's content, there are subtle changes in the conference, mainly in the field of intelligent travel. Recombing the application, technology and overall future trend in the field of Internet of things segmentation. Wang Dongsheng said on the spot that he hoped that more partners would join the Beijing-Oriental Internet of Things to create an ecological chain of value, and promote the number of Beijing-Oriental Day trading contracts from hundreds to thousands and tens of thousands. To some extent, the theme of the three Beijing Oriental Global Innovation Congresses has changed, reflecting the group's clearer and clearer positioning and recognition of the Internet of Things.

At the 2016 Beijing Oriental First Global Innovation Conference, Wang Dongsheng put forward the concept of "core breath-hold/device" - Internet of Things (IOT) through the harmonious combination of chip, display device, software and content, functional hardware and other elements to form a value creation system connecting people, people and things; Beijing Oriental IPC, Wang Dong, 2017 Sheng proposed that the driving force of the core technology of the Internet of Things is artificial intelligence, and the development of the Internet of Things corresponds to the progress of AI. This year, Wang Dongsheng raised the strategic position of the Internet of Things and called the application scenario "the key of the Internet of Things".

Since the Internet of things is so important, why do many other applications fail? In this regard, Wang Dongsheng said that there are no answers, but fundamentally speaking, the Internet of Things should have at least three characteristics - practical convenience, excellent cost performance, real security and orderly, the sum of the three is the value of the Internet of Things.

In the landing application scenario of the Internet of Things, Wang Dongsheng emphasizes auto-driving. He jokes at first that Beijing Oriental will not make cars, but cars are an important application scenario of Beijing Oriental Intelligent Port products. However, the current automatic calculation electric vehicle has defects - the power system has been changed to motor, but the structure still uses the traditional internal combustion engine structure, resulting in low space efficiency and heavy body; coupled with the sensor, communication and computer equipment of automatic driving, the vehicle is getting heavier and heavier; and, the battery energy density, motor power. And the efficiency of power devices is low. The whole structure of intelligent transportation Internet of things is unreasonable.

To improve, we need to combine "people, vehicles and roads" to systematically design application scenario solutions that conform to the above value characteristics. For example, some sensing, communication and computing functions are put on the road to turn the road into a wise road; enhance the battery energy density, power device efficiency and motor power; simplify the body structure, reduce weight, enhance the body deformation elasticity, and improve space efficiency.

Of course, this is an ideal solution for intelligent traffic scenarios, requiring a large number of intelligent port products related to display, sensing, communication and computing. "This is our opportunity." According to Wang Dongsheng, BOE is cooperating with a number of partners in the field of automotive and automotive electronic systems on various intelligent port solutions for on-board and intelligent transportation systems.

Refining business group coordination

Chen Yanshun, CEO of Beijing Oriental, said that the application scenario is not only the carrier of market demand, but also the traction of technological development, but also the embodiment of the market value of the Internet of Things. According to public data, the global Internet of Things market is expected to reach 1.42 trillion US dollars by 2030, mainly focusing on smart manufacturing, smart cities, smart health, smart retail, smart logistics and smart transportation.

In June 2018, Beijing Oriental integrated the three major business sectors into seven major business groups in order to coordinate the scene landing and business segmentation.

From the perspective of industry chain, the Internet of Things can be divided into four levels: perception and control, network, platform services and application services. With the development of the Internet of Things, the market size at all levels has maintained growth, but the growth structure shows a gradual shift from infrastructure construction to professional services and application scenarios.

Chen Yanshun said that in 2019, Beijing Oriental will focus on two things: accelerating the flexible upgrading and expanding product quotation; and promoting the 8425 action plan to build a win-win industrial ecology. The so-called "8425" means promoting 8K, popularizing 4K, replacing 2K and making good use of 5G.

Falling share price and revenue pressure

Beijing Oriental is positively positioned in cutting-edge technologies including artificial intelligence and Internet of Things, which is still far away from landing profits. The limited growth space of the panel market makes Beijing Oriental face the pressure of stock price decline and revenue constraints in the near future.

In August 2018, Beijing Oriental (000725.SZ) issued a semi-annual report, which realized 43.47 billion yuan in business income in the first half of the year, a decrease of 2.54% compared with the same period last year; net profit was 2.83 billion yuan, compared with its net profit of 4.59 billion yuan in the first half of last year, a decrease of 38.3% compared with the same period last year.

Beijing Oriental explained that in the first half of 2018, the global economy was running smoothly, but trade conflicts were frequent and downside risks were increasing. The overall operation of China's economy is stable and the supply-side reform has achieved remarkable results, but the impact of the external environment has a certain impact on the domestic economy. The overall growth of the panel market is lower than expected, and the supply exceeds demand, and the market price goes down all the way. Beijing Dongfang believes that the market of display panel, tablet computer, notebook computer, smartphone and color TV is basically saturated and the growth space is limited.

On October 30, Beijing Oriental announced its third-quarter earnings report, which showed business income of 69.464 billion yuan in the first three quarters of this year, an increase of 0.08% over the same period last year; net returns on attribution in the first three quarters were 3.379 billion yuan, down 47.82% from the same period last year, while net returns on attribution after deduction were only 1.1 billion yuan, down 81.43% from the same period last year.

In response, Dong Min, vice president of OviCloud, told First Financial Journalist that in 2018, the size of the global consumer electronics market, including TV and mobile phones, remained narrow, even some categories shrank, terminal demand was sluggish, and the new generation line entered a period of intensive capacity explosion. Because of the double-factor overlap, panel prices are at a low level this year and in the downward channel, especially the large size panel with high unit price. This is one of the reasons for the decline in revenue and profits. In addition, in recent years, Beijing Eastern has increased its extension speed and investment in Internet of Things, smart manufacturing services, health services and other aspects, and has become the core business of the company. Therefore, it can also be considered that part of the decline has been transformed into enterprise assets.

In the future, Dong Min said that the panel of Beijing Oriental's main business as a core industrial product will continue to be affected by the industry cycle. Through the enhancement of product strength and brand power, there will be an opportunity to change the profit distribution pattern of the industry. The difference of display devices in flexibility, super-large size, 8K, OLED and other products, as well as the extension of commercial, special, industrial display and other application scenarios, will effectively improve the quality of operation. In sensor technology, smart health, Internet of Things and other areas, despite the rapid development worldwide, but still need time to identify the market, to improve industrial management. Beijing Oriental has the leading layout in these areas, and has the potential to undertake industry changes and achieve overtaking.

To cope with the difficult times, Beijing Oriental offers a solution that integrates hard and soft. On the one hand, with the production of Hefei 10.5 generation line and the planning of Wuhan 10.5 generation line, Beijing Oriental converts the production capacity of Beijing 5 generation line from panel to sensor; on the other hand, it increases the production capacity of OEM, speeds up the consumption of panel capacity, and its color TV OEM deliveries. The volume has ranked third in the first half of the year.

A Beijing Oriental R&D personnel told First Financial Journalist at the scene that the more sophisticated the technology R&D field, the more difficult it is to break through. Another Beijing-Oriental employee lamented that the leadership style of a generation of leaders did not know what would happen to Wang Dong's company after his retirement.

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