Thanks to the great support from the group and hard working of the Project Working Team day and night, the project of BOE Xiamen Backlight Factory progressed smoothly and went into formal operation in December. By December, the Factory realized a shipment volume of nearly 100,000 pieces. The construction of Xiamen Backlight Factory began on Aug. 10 with a construction cycle of 80 days; the project was completed before Nov. 20 and given cleaning and dust removal from Nov. 20 to Nov. 30; the factory took the trial run on Dec. 1 and went into formal operation on Dec. 15.
The planned total investment of Xiamen Backlight Factory is RMB 126.113 million, in which RMB 23.31 million goes to construction and RMB 102.803 million is used as circulating fund. The project is expected to enter the phase of mass production and shipment at the end of 2007 and to realize a monthly output of medium- and small-sized backlight products amounting to 1KK in the first quarter of 2008, a monthly output of medium- and small-sized backlight products amounting to 4KK in 2009, a monthly output of medium- and small-sized backlight products amounting to 6KK in the third quarter of 2012. When the project comes up to its designed production capacity in 2009, the annual sales volume can reach RMB 544.32 million and profits after taxes can reach RMB 18.65 million.
On May 21, Suzhou BOE Chatani Co., Ltd received the invitation relating to setting up a factory in Xiamen to produce auxiliary products from AU Optronics Corp (AUO). On July 3, AUO formally gave the written reply to Suzhou BOE, agreeing Suzhou BOE to set up a factory in Xiamen to produce auxiliary backlight products for AUO. Since 2003, Suzhou BOE has been producing auxiliary small-sized backlight products of AV type for Suzhou AUO. Through nearly 5-year endeavor, the backlight products have grown from a single machine type at the very first beginning to more than 30 machine types with the sizes ranging from 1.5 to 10.2 and stridden into backlight market of mobile phones this year and the output increasing from10K/M at the very inception to 3200K/M at present. Since Suzhou BOE has enjoyed unanimously good comments from the entire AUO for its product quality and its services, the company finally stood out in 5 backlight product manufacturers that competed to set up the factory in Xiamen.
Suzhou BOE paid special attention to the new project and set up a preparatory & steering team for the construction of Xiamen Factory. The members of the project team went to Xiamen at the beginning of August and other preparatory staff took their places at the beginning of November one after another. The staff working in Xiamen took the company as their own home and worked day and night to complete the construction of the new factory as soon as possible. Every day, the light in the temporary office always went out in the midnight. Through joint efforts, documents of relevant systems, technical equipments, documents of processes and corresponding auxiliary facilities, such as staff s dormitories and dining hall will complete before Nov. 30. Besides, the recruitment of personnel has been in an intense publicity campaign. The construction of Xiamen Factory is under its way according to the schedule.
Xiamen AUO began its trial production at the beginning of this year and went into formal operation on Sep. 10. It is estimated that the output of small-sized backlight products will reach 5KK/M at the end of this year. With the start of the building of L17 Factory (medium-sized module factory), there will be the production of medium-sized products in the second half of 2008. Hence, for BOE Chatani Co., Ltd
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