Struggling CEC Panda and HKC may be sold off
BOE, CSOT cited as potential buyers
Chinese display makers CEC Panda and HKC may be placed on the selling block on account of mounting financial difficulties triggered by a glut of LCD panels and declining prices, according to industry sources on April 9.
The two firms may be acquired by other Chinese panel makers such as CSOT and BOE that been focusing on LCDs in the absence of Samsung Display and LG Display that have decided to phase out LCD panels.
CEC Panda touts oxide TFT LCD technology, based on which it produces panels for LCD TVs, laptops and monitors. In 2019, CEC Panda shipped 27.6 million large-sized TFT LCD panels. The company runs fab facilities in Nanjing and Qingdao.
But the company hasn’t been doing very well in terms of profit, with its listed firm posting an accumulated deficit of USD 331 million up to the third quarter of 2019. In 2018, the firm had recorded USD 317 million of deficit.
BOE or CSOT could help normalize CEC Panda in return for accessing the oxide technology, which is critical for supplying companies such as Apple or Microsoft. For CSOT, the acquisition would help it accelerate the development of inkjet printing OLED panel technology.
HKC’s mainstay business is VA(Vertical Alignment)-based a-Si TFT LCD TV open cells. HKC is categorized as a second-tier company, selling LCD TV open cells to mostly budget models. HKC is also embroiled in a patent lawsuit with a major TFT LCD maker, which may be a turn-off for potential buyers.
In order for the deals to happen, the provincial governments that have invested in CEC Panda and HKC will have to give the green light.
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