BOE's 1 billion yuan government subsidy

Research projects subsidized into "regular customers"

Wang Dongsheng, the head of BOE, once said: "If there is no such enterprise as BOE, how much revenue does Japan, South Korea and Japan, such as Samsung, LG, and Sharp, who have a strong grasp of the right to speak in the panel industry? ”

■Reporter

From loss to profitability, BOE is taking its own path with a mixed reputation from society. It is worth noting that no matter how the society evaluates, the BOE company has always been a strong support from local governments. The government subsidies it receives from local governments are also high.

Statistics show that from 2011 to 2015, the company received government subsidies of 666 million yuan, 926 million yuan, 838 million yuan, 830 million yuan and 1.045 billion yuan.

Why is BOE so favored by the government?

Wang Dongsheng, the head of BOE, once said: "If there is no such enterprise as BOE, Huawei, Lenovo, Xiaomi, and Meizu have to contribute more to the Japanese, Korean, and Japanese companies that firmly grasp the right to speak in the panel industry. ?"

Government subsidies are mostly research projects

Looking at BOE's 2016 third quarterly report, the company obtained non-operating income of 1.934 billion yuan in the first three quarters, a year-on-year increase of 195%. For reasons of growth, the company explained that “the increase in government subsidies during the reporting period”.

According to the "Securities Daily" reporters to check the details of the government subsidies obtained by BOE over the years, it is found that most of the subsidies received by the company come from subsidies for research projects. Among them, from 2011 to 2015, the amount of “scientific research project subsidies” received by the company from the government reached 501 million yuan, 749 million yuan, 653 million yuan, 658 million yuan and 820 million yuan.

It is worth noting that in 2015, in addition to receiving 820 million yuan of research project subsidies, the company also received the 8.5th generation TFT-LCD project subsidy and the 6th generation TFT-LCD project subsidy.

Some insiders revealed to the "Securities Daily" reporter that the company's annual investment in technology research and development accounted for more than 7% of the company's operating income. Even during the loss period from 2008 to 2011, BOE's R&D investment still accumulated close to 30. 100 million yuan.

BOE's dedication to technology research and development is mainly due to the recognition of Chairman Wang Dongsheng that “the technology leader does not necessarily win, but there is no technology to lose”. The display industry is a typical high-tech, high-input industry. BOE has always insisted on the creed that it can not lose money for research and development, and always maintains high-intensity R&D investment.

According to the insiders of the above-mentioned company, if the large amount of funds is not invested in research and development that year, the company will not lose money.

According to the reporter's understanding, BOE has also received a subsidy of over 100 million yuan from the government while expanding the production scale of the 8.5th generation TFT-LCD project in 2015.