Zhiyun shares won the bid for BOE project worth 111 million yuan

On July 10, Zhiyun Co., Ltd. issued an announcement that its wholly-owned subsidiary Shenzhen Xinsanli Automation Equipment Co., Ltd. recently received a "Notice of Winning Bid" delivered by China Electronics Business (Beijing) Co., Ltd., confirming that Xinsanli won the bid for the "Mianyang BOE 6th Generation AMOLED (Flexible) Production Line Project". The subject matter is 7 sets of automatic coating equipment for light-shielding inks and conductive inks. The total bid amount is RMB 111 million, accounting for 15.57% of the company's audited operating income in 2021.

It is understood that in the early days, Zhiyun Co., Ltd. focused on automotive powertrain automation equipment business. Its main products included automatic testing equipment, automatic assembly equipment, automatic cleaning equipment, logistics handling equipment and complete line equipment, etc. Its customers were mainly automobile and engine manufacturers.

To date, Zhiyun shares mainly include two major business segments: 3C (flat panel display module) intelligent manufacturing equipment and automotive powertrain intelligent manufacturing equipment.

Among them, flat panel display module equipment has become Zhiyun's main business. It has mastered LCD, OLED, Mini LED and Micro LED technologies in the sub-sectors of flat panel display module automation equipment bonding, dispensing, lamination, bending, etc., and has developed bonding, dispensing, testing and other products. Its customers cover many major module or panel suppliers in China for international and domestic first-line terminal brands.

According to Zhiyun Co., Ltd.'s 2021 annual report, the flat panel display module equipment business revenue was 579 million yuan, accounting for 81.62% of the operating income; the automotive intelligent manufacturing equipment business revenue was 117 million yuan, accounting for 16.52% of the operating income.

Zhiyun Co., Ltd. stated that in view of the great uncertainty in the profitability of the company's existing automotive powertrain intelligent manufacturing equipment business and the difficulty in achieving performance returns in the short term, the company decided to continue to adjust and gradually withdraw from the automotive powertrain intelligent manufacturing equipment business and focus on flat panel display module equipment.

According to data from the World Semiconductor Trade Statistics Association (WSTS), China's semiconductor market sales in 2021 were US$192.5 billion, a year-on-year increase of 27.1%, accounting for 34.6% of the world's total, making it the world's largest semiconductor market. Flat panel display module automation equipment is one of the semiconductor branches. Affected by the strong market demand for flat panel display devices, it has driven the demand for flat panel display module automation equipment.

Public information shows that BOE has formed a "1+4+N" aircraft carrier business group with semiconductor display business as the core, and the integrated development of sensors and solutions, MLED, Internet of Things innovation, and smart medical and engineering businesses.

In the first half of this year, BOE was successfully selected as a lighthouse factory in China, becoming the first and only display company in mainland China to be selected. In response to the demand for semiconductor displays, BOE already has 16 semiconductor display production lines. Among them, the BOE (BOE) Fuzhou 8.5th generation semiconductor display production line selected as a "lighthouse factory" has a total investment of 30 billion yuan, and mainly develops and produces high-end liquid crystal display products such as high resolution, large size and low power consumption.

Generally speaking, the selected lighthouse factories need to integrate and comprehensively apply technologies such as intelligence, digitization, and automation, which can achieve all-round changes in business models, product development models, production models, quality management models, and consumer service models, and promote efficiency improvement, energy conservation and emission reduction, and business optimization.

This means that manufacturing equipment manufacturers will have business opportunities. With the help of manufacturing equipment, factories can help companies replicate and promote to multiple factories, improve their own competitiveness, and help the industrial chain become intelligent.