To whom it may concern ,

   As you know, present economic situation is under declining, and very likely will enter into long winter. As a part of industrial chain, especially located in mainland China, AV-Display feels a kind of uncertainty never experienced before. And as far as we know about LCD industry, LCD and LCM upstream order and order trend are not optimistic, some of LCD/LCM companies made the decision of stopping production lines, and the profit margin of upstream industry fell a lot compared with the same period of last year. As a growing company, we just set up a new STN-line, till the end of October, AV-Display‘s order and sales are still stable, and increase about 20% over the same period of last year. But based on the uncertain forecast, we believe that we must take action together with our upstream/downstream partners do things efficiently, correctly and with value.  Therefore we make the following proposals, hope these will be meaningful and valuable for you.

1） Stock  Proposal: Only for the standard character and graphic module bought from AVD

  i.    List the stock products to AVD sale representative 

 ii.    AVD will try to sell them through our sales network, no matter which region.

         A.    Note: there isn’t enough feasibility, but worth a try.

2）Ongoing important projects, involved important customized and our standard  products:  We suggest optimizing the design together under this price and cost sensitive background. The reasons are as follows:

   i.  In past two years, upstream supply chain had significant change on positioning, product lines and technology development.

  ii.  Upstream supply chain manufacturers had achieved progress and growth to varying degrees in the past years

 iii.  New materials selection

        A.   We will select the materials which had past reliable tests and based the written guarantee from suppliers, and then sampling, pilot run, make quality plans to ensure our selection.

 iv.  We always understand we assume essential quality responsibility of our products.

3）Do  our best to avoid delivery  delay

 i.   Except  for the coming long winter, others  issues like unstable   currency  rate  and  uncertain material  cost trend , deliver delay will likely lead to indirect cost and  risk. 

         A.    we will try our best to make the lead time as short as possible, do any possible to avoid inventory because of MOQ . 

         B.    The short lead time we expecting is possible reduce the transportation cost of customers.

 ii.    Regarding to standard modules, we hope to reduce types and specs on same kind of material via product combinations, which will benefit both AVD and upstream suppliers to short lead time, and also will make material control simpler and more flexible. Finally to make short lead time, lower MOQ limit and flexible come true.

The above proposals are not only the work of AVD-team, but also of the cooperation with upstream supply chain. We share reasonable responsibility, pressure and interest, we control the future together. At the mean time, we will pay high attention and appreciate for any of requirements and suggestions from you.

 Thanks again for your concern! Take care!

  AVD Team