Sharp is currently the world's largest LCD panel producer, while TPV is the world's largest LCD display producer.

Once these two companies are united, it can be said that they can easily monopolize the upstream and downstream of the entire industrial chain. For BOE, this is by no means good news.

Sharp transferred technology, TPV contributed money, and supported a Taiwanese company on the island to do LCD panel projects, which is very worthy of recognition purely from the perspective of the project.

TPV wants to develop the upstream LCD panel industry, which has been fully revealed in the attitude towards BOE's cross-shareholding. But whether this partner must be BOE or not is not the final result.

In fact, in the face of the threat of South Korean LCD panel companies, Sharp has long had the voice of transferring technology to the outside world. After all, Japan's strength lies in its good technology, while South Korea's advantage lies in its low cost. If the Japanese LCD panel industry wants to maintain its current market share, it must reduce their production costs.

Controlling and supporting a number of Taiwan enterprises and competing with South Korea with the low production costs of Taiwan enterprises is the best way out that the Japanese can think of. After all, Japan's labor costs have become too high in recent years, and high-tech manufacturing industries such as LCD panels are gradually losing their competitiveness in terms of cost.

Now that there is a more realistic reason to curb BOE, it should be easier to convince Sharp's top management.

In this context, Hara Heisuke had the courage to promise to cooperate with TPV to support LCD panel companies on the island.

As for how Xuan Changsheng thinks about it, whether he is willing to completely fall to Sharp for the sake of Sharp's cooperation. Then I'm afraid he is the only one who knows it in his heart.

"Mr. Xuan, this is the resolution of the BOE Board of Directors. I was authorized to sign this cross-shareholding agreement. ”

Wang Zhongyang is now standing in the large conference room on the top floor of TPV's headquarters building, with people on both sides of the building. They all had solemn expressions.

Wang Zhongyang has surrendered from him, and Song Cheng still has to line up to I don't know where to go. Dongfang Ke, general manager of Fanhan Group, and Wang Zhongyang stood side by side, and the State-owned Assets Supervision and Administration Commission of the Imperial City sent a reluctant director to stand a little back. Then there are the heads of various departments under BOE, the director of the production plant, the director of sales, and the director of administrative affairs......

All kinds of high-level and quasi-high-level "bigwigs" stood densely behind Wang Zhongyang and supported him.

On the other hand, in Xuan Changsheng's TPV camp, in addition to himself, Du Zhenhua and Bai Qingshan stood behind him, one left and one right. Behind it is a high-level team with a black suit, white shirt and red tie. If you look at it from the perspective of dress and momentum, TPV's preparation is indeed much more adequate than that of BOE.

"The person standing in the third place is Director Huang of the State-owned Assets Supervision and Administration Commission of the Imperial Capital of the Mainland." Bai Qingshan whispered quickly behind Xuan Changsheng, but on the surface he had a warm welcome expression.

"Mr. Wang, let the lawyers below do these things. Let's drink tea first, everyone please take a seat, please all take a seat! ”

Xuan Chang was good at dancing, waved his hand to ask the person in charge of reception to invite everyone to take a seat, and then brought a variety of seasonal fruits and tea from the island's specialties. Said earnestly: "It's rare that Mr. Wang has made preparations so quickly, and BOE's response speed is so fast, I believe that I will not disappoint my choice!" ”

The BOE personnel were seated in order, and Wang Zhongyang nodded cautiously and responded: "This TPV shareholding is a major event related to the survival of BOE. I didn't need so many people to come. However, I hope that our employees and executives will remember who pulled BOE at a critical moment, and we BOE will never forget the friendship of President Xuan. ”

Xuan Changsheng's face flashed with momentary embarrassment. Then he laughed and said: "I dare not take what Mr. Wang said, it should be said that BOE provides us with the opportunity to develop upstream." Want me to say. Don't say who is kind to whom, it's a win-win situation for everyone! ”

"Yes. Win-win! Hahahaha! Wang Zhongyang laughed and nodded violently.

The two sides exchanged pleasantries for a while, because they were not competing companies in the first place, and they signed a cross-shareholding agreement. To put it in a similar sense, the two sides of the family will be one family in the future. The atmosphere is not only intimate, but at least joyful. Everyone praised each other happily, and time passed.

The lawyer groups brought by both sides completed the confirmation of the contract at this time, and sent over the appraisal results without problems, which made the atmosphere suddenly rise again.

"Mr. Xuan, let me say a word." Wang Zhongyang seemed a little impatient, and said first: "I think we should be pragmatic, and don't do any ceremonies with empty heads." The most important thing is to sign this agreement as soon as possible to make people feel at ease. ”

Out of the corner of his eye, Xuan Changsheng glanced at Director Wang, who was sitting in the third place, and saw that his face was stinky, and he immediately felt relieved. The imperial capital SASAC treats Jingdong like a son, and Jinglong has contributed a lot in the implementation of the plan. Asking for money to give money, and wanting to get through the relationship, it is the most direct backstage on the official face of BOE, and I don't know how many hidden arrows and threats have been blocked.

Now that the BOE wings are stiff, the country wants them to play a greater role, but they were stabbed in the back by the "pro-son" - if they can still have a good temper, then there will be ghosts.

Thinking about it like this, Xuan Changsheng had a little bottom in his heart. I'm afraid that the various plans for BOE in the future should not cause too much dissatisfaction and support from mainland officials, right?

Thinking of this, Xuan Changsheng smiled reassuringly, nodded and said, "Since Mr. Wang is so sincere, TPV and I are naturally indispensable!" Since everyone is here today, I don't think I might as well sign the contract now, right? ”

"Good, good!" Wang Zhongyang nodded and said with a smile: "Doing business with Mr. Xuan is a pleasure!" ”

That's it, no journalists, no flowers, no warm applause. Under the watchful eyes of many high-level and quasi-high-level executives of TPV and BOE, Xuan Changsheng and Wang Zhongyang quickly signed a cross-shareholding agreement.

TPV offered $300 million, 30% of its own shares, in exchange for a 30% stake in BOE. BOE's own 4.5 generation production line is worth 500 million US dollars, and counting the two key technology patents worth 500 million US dollars, the market value is about the same as TPV, which is about one billion US dollars.

Of course, TPV's 30% BOE stake was immediately diluted as soon as it was acquired, and the original stake has changed.

Originally, BOE's investment ratio was 200 million US dollars plus technology investment of Panhan Group, accounting for 49% of the shares. BOE Tongguò self-raised and the Imperial State-owned Assets Supervision and Administration Commission increased investment, accounting for the remaining 51% of the shares. However, in order to borrow money from TPV and offset its financial advantage, Pan Han Group put the patents of IPS screen and high-voltage driver IC technology into BOE, making BOE's assets valued at $1 billion.

This makes the BOE equity before the cross-shareholding become 75% held by Fanhan Group, 12.5% held by the State-owned Assets Supervision and Administration Commission of the Imperial Capital, and 12.5% owned by self-raised social funds. After the cross-shareholding, the SASAC and self-raised funds accounted for a smaller shareholding, which became 8.75%. And 75% of Pan Han Group has also become 52.5%.

With the patented technology in hand and the mortgage of TPV's shares, it borrowed US$800 million from TPV to build a new 5th generation LCD panel production line. This money is still not enough.

After TPV's cross-shareholding, the State-owned Assets Supervision and Administration Commission of the Imperial Capital united the Imperial Capital Branches of the five major state-owned banks in China to form a banking group to re-inject capital into BOE. 3.5 billion yuan, converted into more than 407 million US dollars according to the pump price, was re-injected into BOE for the construction of the new 5th generation line.

If BOE succeeds in building the world's first fifth-generation line, the future is limitless. No matter how reluctant the SASAC is (at least Xuan Changsheng thinks so, it is not.) This investment is also really profitable.

After the capital injection of US$400 million, the SASAC's stake became 35%, and TPV's 30% stake shrank to 21% before it was still in its hands. The 52.5% stake in the Pan Han Group shrank to 37.5%.

Wang Zhongyang and other management and social capital have been further reduced, and now account for only 6.5% of the shares, becoming an insignificant minority shareholder.

In Xuan Changsheng's vision, the struggle of the board of directors in the future will mainly focus on itself, the State-owned Assets Supervision and Administration Commission and the Fanhan Group. Any two combined, it is enough to form a dominant share, and the room for maneuver is suddenly much larger. Although TPV is the weakest of the three, after Wang Zhongyang's operation against the intentions of the upper echelons this time, how much cooperation foundation can be left between the two?

As long as it can be the decisive weight on the scale, it doesn't matter how many shares you have.

After signing the cross-shareholding agreement between the two parties, the cooperation between BOE and TPV has just achieved a foundation of trust. Wang Zhongyang immediately pushed another agreement in front of Xuan Changsheng and said impatiently.

"Mr. Xuan, about the mortgage loan agreement, do you think it was signed by the way?"

Although Wang Zhongyang said that it was by the way, Xuan Changsheng knew that this was not just a "passing", but the highlight of the entire cooperation. After the cross-shareholding, TPV borrowed US$800 million from TPV to invest in the construction of a fifth-generation LCD panel production line with TPV's shares owned by BOE - this is the meaning of cross-shareholding deposit.

"Since Mr. Wang is so anxious, hehe, let's sign it."

Xuan Changsheng was very happy, and finally saw Wang Zhongyang's anxious appearance. Wang Zhongyang's expression today is too eager, and he is really a little out of shape. You must know that when he first arrived in Taipei, that lukewarm attitude made a deep impression on Xuan Changsheng.

"No matter what, it's just a bun of dirt buns from the mainland." Xuan Changsheng thought to himself: "I should give you a lesson on what is called the rules of the capitalist game." Don't blame me, if you want to blame you, you don't want to challenge the Japanese. (To be continued......)