Shenzhen Enrich Electronics Co.,Ltd

On August 16, 2018, Weixinuo, the largest manufacturer of mobile OLED display shipments in the first half of the year, released the "2018 Semi-annual Report", which showed that the operating income in the first half of the year was 475 million yuan, a year-on-year increase of 3,778. 62%; net profit attributable to shareholders of listed companies was 16 million yuan, up 116.47% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 395 million yuan, down 30.62 percent year-on-year. %.

Among them, OLED products were sold to foreign markets of about 342 million yuan, with a gross profit margin of 9.86%; the domestic market was about 133 million yuan, and the gross profit margin of products was 21.65%.

The net cash flow from operating activities was 162 million yuan, a year-on-year increase of 1213.93%. Government subsidies that are included in the current profit and loss (except for government subsidies that are closely related to the business of the enterprise, which are fixed or quantitatively enjoyed according to national uniform standards), are 701 million yuan. As of the end of the reporting period, the company's total assets were 40.376 billion yuan, an increase of 338.99% over the end of the previous year.

Visionox said that during the reporting period, the company completed the investment in the establishment of Jiangsu Visionox, invested in the 5.5th generation active matrix organic light-emitting display device (AMOLED) expansion project, and realized the non-identity of Kunshan Guoxian Photoelectric Co., Ltd. Control of business mergers. Since the merger date, the income and profit of Kunshan Guoxian Optoelectronics Co., Ltd. have been included in the scope of consolidation, which has a great impact on the income and profit composition of the company during the reporting period. In the report period, the company's operating income and operating cost were compared with the same period of the previous year. , there are big changes.

The first phase of the 5.5th generation AMOLED production line operated by the company's holding company Sun Guoguang has achieved mass production. At the end of August 2017, the 5.5th generation AMOLED expansion project was lighted. As of now, the production line trial operation and customer introduction The situation is good. The company's subsidiary Bazhou Yungu's 6th generation AMOLED module production line project gradually changed from the planning construction period to the production operation period; the holding subsidiary Yungu Gu'an 6th generation fully flexible AMOLED production line has been put into operation, and is expected to be in the fourth quarter. Gradually mass production.

Visionox is a leading high-tech enterprise integrating OLED R&D and production in the domestic OLED industry. Since the establishment of Beijing Visionox in 2001, the company's holding company Sun Guoguang and its subsidiaries have been committed to the independent innovation and industrialization of OLED technology. Through close cooperation with Tsinghua University, it has established basic research and pilot research and development. A complete technological innovation system for mass production technology development. As of June 30, 2018, Visionox and its subsidiaries have applied for 3,826 OLED related patents.

At the same time, Guoxin Optoelectronics Co., Ltd. and Beijing Visionox are important members of the OLED International Standards Group and the leading OLED national standards. They are responsible for formulating or revising four OLED international standards and leading the formulation of five OLED countries. The standard and three OLED industry standards have become the first Chinese companies to develop international standards for flexible displays.

Guoxian Optoelectronics Co., Ltd. is a leading high-tech enterprise integrating OLED R&D and production in the OLED industry. It has deep research and development strength and industrialization experience in the OLED field, and has mastered the full production of AMOLED from LTPSTFT array to OLED evaporation package. Manufacturing technology, with a number of technologies with independent intellectual property rights in key technologies, processes and materials required for AMOLED industrialization such as device structure technology, new cathode technology, vapor deposition packaging technology, colorization technology, etc., meeting or exceeding international advanced level . In particular, independent research and development and production capacity in organic luminescent materials can be transformed into cost advantages in market competition.

In the field of flexible display technology, which is the most concerned in the industry, the research and development and mass production technology of Guoxian Optoelectronics and its subsidiaries have made breakthroughs. The flexible AMOLED display screens that can be applied to smart phones and wearable products have a bending radius of less than 3. Millimeter, the minimum thickness is only 20 microns; any folded flexible AMOLED display developed by the company has an inner radius of 3 mm, a radius of 5 mm, and a bending time of more than 100,000 times.

Visionox believes that although compared with many domestic enterprises, Guoxian Optoelectronics has strong technology, channel, brand and talent advantages, and has achieved certain market position in the industry, but the leading international display panel manufacturers such as Samsung In the AMOLED field, it has sufficient production capacity, abundant capital and market resources, and domestic manufacturers are also vigorously developing such businesses. With the further development of the OLED industry, the company may face greater market competition risks.

In addition, the technical barriers in the field of OLED upstream materials are relatively high. The core technologies and production of key raw materials and spare parts required for panel production are controlled by a few foreign suppliers. The domestic OLED industry group is still relatively low in localization, some of which are key. Raw materials still need to rely on imports, and bargaining power in raw material procurement does not have an advantage. Although the company will take various measures to ensure the safe supply of raw materials, there are still risks such as unreasonable rise in raw material prices and temporary supply of raw materials.

Visionox announced on August 11 that the company intends to hold a total of RMB through Kunming Guochuang Investment Group Co., Ltd., Kunshan Yangcheng Huwen Business Group Co., Ltd. and Kunshan Venture Holdings Group Co., Ltd. through the Suzhou Property Rights Exchange. The company's holding subsidiary, Kunshan Guoxian Optoelectronics Co., Ltd. intends to purchase the Kunshan Weixin Co., Ltd. and Guanjing Holdings Co., Ltd. Novo Display Technology Co., Ltd. 43.87% stake. At the same time, the company's controlling subsidiary Guoxian Optoelectronics intends to sell its 40.96% stake in Kunshan Weixinnuo Technology Co., Ltd. to Kunshan and Gao Information Technology Co., Ltd., and Kunshan and Gao intend to pay the consideration in cash. At this point, Visionox also officially divested its original PMOLED assets, focusing on the development of AMOLED business.

Looking forward to the third quarter of this year, Visionox said that the 6th generation AMOLED production line in the third quarter of 2018 has started trial operation and has not yet been sold. In order to cope with the next stage of production and operation, the company has invested heavily in organizational structure, R&D investment, operating funds, etc., and related expenses have also increased compared with last year. In the current year, the second phase expansion project of the 5.5th generation AMOLED production line, which was invested and controlled by Sun Company, is still in the stage of capacity increase and yield climb, and the operation is still at a loss. It is estimated that the net profit loss from January to September in 2018 will be 0.6-130 million yuan.