(Yicai Global) Nov. 8 -- The founder and chairman of BOE Technology, China's largest maker of screens for televisions and phones, may announce his retirement next year after a quarter of a century at the helm, a company insider told Yicai Global.
But Wang Dongsheng's retirement is uncertain, the Beijing-based company said after being contacted by Yicai Global. At every step of the way, the 61-year-old is still the group's principal leader, it added.
Born in 1957, Wang founded BOE in 1993 and developed it from an electronic components maker into a highly competitive global giant in the display sector. But he reached the normal retirement age for top management long ago and cannot forever postpone his exit and its consequences, according to an insider in the home appliance sector.
BOE Technology has taken great strides to transform in recent years, which is partly due to the company's improved performance and most importantly thanks to Wang's strong influence, he insider said, adding that his departure will affect firms related to BOE's main business.
BOE's layout of cutting-edge technologies such as artificial intelligence and Internet of Things is far from producing profits, while its main business market exhibits limited growth, causing a stock price slide and downward pressure on revenue.
The company's net profit fell 38 percent to CNY4.6 billion (USD660 million) in the first half of this year, while revenue dipped 2.5 percent to CNY43.5 billion. Its shares [SHE:000725] have fallen almost 60 percent since a January high amid a wider slump in Chinese equity markets, with the benchmark Shanghai Composite Index off about 25 percent in the same period.
Wang maintains a strong presence in a number of industry bodies. He is vice-president of the China Electronic Chamber of Commerce, president of the Beijing Electronic Chamber of Commerce and vice-president of the China Optics and Optoelectronics Manufacturers Association.
Editor: William Clegg