On August 1, 2018, MTK and SK Hynix's agent distributor, Ying Tang Zhikong, issued the “Announcement on Establishing a Holding Subsidiary for Foreign Investment”, which indicated that it intends to jointly establish Huizhou with Shenzhen Pacific Automation Equipment Co., Ltd. Yingtang Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Yingtang Optoelectronics"), in which the company invested 75 million yuan, Shenzhen Pacific invested 25 million yuan. After the completion of the industrial and commercial registration, the company will hold 75% of Yingtang Optoelectronics and become the controlling shareholder of Yingtang Optoelectronics.
Yingtang Zhikong said that in order to improve the company's existing supply chain and accelerate the development strategy of the company's "one-stop" service for the intelligent consumer electronic components industry chain, the company plans to develop and deploy 3D curved glass with technical forward-looking features. New product. The construction of this investment project is an important measure to implement the company's established development strategy by purchasing advanced production equipment and testing equipment, and building a new 3D curved glass production line to meet the needs of customers for the development of smart phone appearance innovation and enhance the company's profitability.
Yingtang Zhikong believes that after years of development, the glass cover has extended from the original 2D to the curved surface of 2.5D. The market has gradually become saturated, the growth of mobile phone shipments is slow, and the competition between glass cover manufacturers is becoming increasingly fierce. Product homogenization is serious. With the replacement of LCD by flexible OLED, the proportion of flexible display screen is greatly increased, and 3D glass can be perfectly matched with curved screen, and it is beautiful, light and good, and the texture is good. The wide application of 3D curved glass has increased for manufacturers. New profit growth point. Through the construction of this investment project, it will help the company to further obtain more business and orders for middle and high-end products, and provide new revenue growth points for the company. At the same time, by arranging the 3D curved screen field, the efficient synergy between the original business and the newly added business will help to enhance the company's comprehensive competitiveness, increase the added value of products, enhance the sustainable profitability and anti-risk ability, and make the company sustainable for a long time. Development lays a solid foundation.
The structure of general consumer electronic products is more complicated, and the market for consumer electronics products changes rapidly and competition is fierce. Efficient supply chain management has become the key for terminal manufacturers to seize the market and win competition, and is a concentrated expression of the core competitiveness of enterprises. The centralized, large-scale, and standardized procurement model brought by the one-stop procurement platform greatly optimizes the customer procurement process, effectively reduces procurement costs, and helps customers create greater market value to the greatest extent. The company will have the large-scale supply capability of 3D curved screen related products, and the ability to comprehensively serve customers will be further enhanced to meet the needs of mid- to high-end smart terminal product manufacturers, which will help enhance customer stickiness and enhance the comprehensive market competitiveness of enterprises.
The implementation of this project will also have a positive impact on local economic and social development while improving the company's production capacity. After the completion of the project, the company will recruit a large number of local personnel, which will help improve the local employment level and promote the development of the local economy.
In summary, this 3D curved glass project is in line with the relevant national industrial policies and the company's overall strategic development direction, with good market development prospects and economic benefits. At the same time, this investment will use the "independent research and development of 3D glass hot bending equipment + supporting hot bending mold + product technical parameters + professional technical management team" complete integration technology and production capacity advantages, develop and meet the industry application field for 3D glass Demand, integrate the industrial chain, optimize product structure, improve profitability, and promote the company's long-term sustainable development.
According to the Rising Sun display and touch, in the first half of 2018, Huawei, OPPO, VIVO, Xiaomi and other major domestic brands released and mass-produced a variety of mid-to-high-end new models, many of which used front and rear cover double-sided glass, 3D. The design of the curved glass. This move by terminal brand manufacturers has also led to a significant increase in the demand for 3D glass cover production capacity in the industry, attracting manufacturers including Lansi Technology, BYD, and Star Technology to increase investment in the field of 3D glass cover. To improve the technical level and capacity configuration of the products.
According to the rough statistics of the Rising Sun display and touch, the shipment of 3D glass cover in the Chinese market in the first half of this year has exceeded 100 million pieces, and the overall shipment has reached 1.2-140 million pieces. Shipments are likely to exceed 300 million.
However, due to the decorative design of this year's 3D glass cover, many of them combine the gradual color design, so the production efficiency and product yield are relatively low, and the production cost is still high. According to the rough display of the Rising Sun and the statistics of the touch, according to the output calculation in the first half of this year, the industry's overall loss on the 3D glass cover is about 1.0 to 1.5 billion yuan, basically losing more than 10 yuan per piece of 3D glass cover.
Of course, most of the current losses in the industry, mainly in the 3D glass optical film system design complex, production processing and assembly processes are also very different, resulting in matching materials and equipment, also in the production and production costs are also high And the cost of mold opening and trial production is also very high, so in the case that the order delivery quantity is not enough to share these expenses, there is a large cost increase, and the loss side will also expand.
Looking forward to the follow-up market situation, Li Xing believes that with the market-standardized film system design becoming popular, the production and processing technology will be quickly standardized, and the equipment related to 3D glass cover processing can also make a large technological breakthrough, thus making the industry Equipment, materials, mold costs, as well as equipment commissioning, product trial costs, etc., will have a significant decline. At that time, the cost sharing caused by these expenses will also be controlled. The real profitable days of the 3D glass cover industry are also expected to come. Manufacturers who have had a deep layout in this field will also benefit significantly.
However, only Corning has introduced the sixth generation of Gorilla Glass to improve the drop resistance of 3D glass cover. However, it is still unknown whether the 3D glass cover can become a real industry explosion point in the consumer experience. After all, too many Chinese consumers, while buying mobile phones, can't change the habit of supporting mobile phone sets, the true colorful advantages of 3D glass cover, or the real disadvantage of 3D glass cover grip, have not yet received the industry. Adequate attention. If this situation is effectively improved, the 3D glass cover may only stay on the niche level.