Victory Precision Signed An Agreement With OPPO Glass Cover Revenue Will Increase By 2 Billion To 3 Billion

- Jul 03, 2018-

On July 2, Shengli Precision announced that the company's wholly-owned subsidiary, Zhicheng Optics' wholly-owned subsidiary, Anhui Zhicheng and OPPO signed the "Strategic Cooperation Framework Agreement" to jointly carry out OPPO mobile terminal glass cover cooperation. Agree.

Anhui Zhicheng will supply according to the standard requirements of the shape, size and color effect of the glass cover of the mobile terminal as agreed by both parties, and promises to supply 2.5 according to the specific situation of OPPO product planning in the cooperation cycle from July 2018. D or 3D glass cover is not less than 5000 thousand pieces / month.

The glass cover, that is, the protective glass, is an important component of the touch device and is widely used in smart mobile terminal products such as smart phones, tablet computers and wearable devices. With the development of 5G communication technology, wireless charging and application promotion, the demand for glass cover for mobile terminal products has reached a new peak. At the same time, with the wide application of flexible OLED, the glass front cover needs to be matched to make 3D curved surface, glass. The back cover also needs to be upgraded to 3D glass based on the grip and aesthetic requirements. Zhicheng Optics, a wholly-owned subsidiary of the company, has been focusing on the production and research and development of 2.5D and 3D glass for many years. In 2017, its operating income was 754 million yuan and its net profit was 70.63 million yuan. It has a good industrial foundation. Since 2016, the company has raised 600 million yuan to increase annual production capacity. In 2017, it plans to invest 3.285 billion yuan for the development and production of 3D glass cover for smart terminals. As of the reporting period, 2.5D glass has formed a stable production capacity of nearly 6,000 pieces per month, with a planned production capacity of 10,000 thousand pieces per month; 3D glass cover is in the period of expansion and construction, with a planned production capacity of 6,250 thousand pieces per month, therefore, the company Have the comprehensive strength to fulfill the strategic cooperation agreement. 2,

According to the purchase agreement for the glass cover of the mobile terminal in the strategic cooperation framework agreement signed by the two parties, with reference to the market price of the glass cover and the net profit margin of the company in the glass cover business in 2017, it is estimated that the company will be the next 12 companies from the second half of 2018. In the month, the glass cover will increase the income of 2 billion to 3 billion yuan, and the estimated net profit will exceed 200 million yuan, accounting for more than 30% of the company's audited net profit attributable to owners of the parent company in the previous year.

Since 2016, the company has fully utilized its own intelligent manufacturing capabilities to accelerate the automation, informationization and intelligent upgrade of the glass cover production line, laying a good foundation for the rapid expansion of the glass cover business of mobile terminals. The agreement will help to expand market share and enhance the company's overall profitability and core competitiveness. The signing of the strategic cooperation agreement does not result in the reliance on the other party due to the implementation of the agreement, and will not affect the independence of the company's business.