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Huawei's folding screen new machine is sold out in seconds. Who is the core component supplier behind it?
Economic Observer
Before April, the official account of Economic Observer
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https://xw.qq.com/cmsid/20210227A03II600?f=newdc&ivk_sa=1024320u
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Economic Observer Reporter Zhang Bin At 10:08 on February 25, Huawei MateX2 officially went on sale, with a price starting from 17,999 yuan. Before the sale, Huawei's official mall, JD.com and other e-commerce platforms had made about 5 million reservations. After the launch of the sale, Huawei's official mall, Tmall, JD.com and other e-commerce platforms showed that this new product was instantly "second light".
The MateX2 launched this time is Huawei's third-generation folding screen mobile phone. On the other end of the hot spot market, in the capital market, more attention is which core component suppliers of this mobile phone may become a hot island for investment.
Wang Fang, chief analyst of Minsheng Securities Electronics Industry, believes that the trend of folding screens is unstoppable, and the chain and screen are still the key directions of upgrading.
Yu Chengdong, managing director of Huawei and CEO of consumer business, said at the press conference on February 22 that MateX2 is equipped with a new double-helix water drop chain, which ensures the flatness of the folding screen after expansion and the aesthetics after folding, and achieves the seamless part of the folding chain.
Yu Chengdong said at the press conference that this double spiral water drop chain uses carbon fiber composite materials and high-strength steel. Among them, the carbon fiber composite material used to support the door panel of the ard chain reduces the weight by 75%; the strength of super steel can reach 2100MPa, which is 50% higher than the steel used in the B-pillar of high-safety cars; and the hardness of the zirconium-based liquid metal used in the central axis of the ard chain has tripled.
Chen Hang, an analyst at Founder Securities, believes that Huawei's MateX2 will accelerate the popularization of folding machines. The Huawei MateX2 inward folding scheme released this time will be the beginning of the epoch-making period when the OLED folding screen enters the volume period, opening up a huge industrial imagination space. The chain is the most critical functional part to realize foldable mobile phones, and it is also the most technological part of the folding screen.
In the field of ? chain, analysts of major securities firms will Changying Precision (300115. SZ), Yi'an Technology (300328). SZ), Dongmu Shares (600114). SH), intensive research technology (300709. SZ) etc. are included in the scope of concern. Many investors are very concerned about who is the core supplier of the double-helix water drop chain carried by MateX2?
Who is the MIM supplier?
Founder Securities said that the core technology of folding screen mobile phones is foldable screen, chain and operating system. There are many parts used in the folding screen chain, which has the characteristics of high complexity, high folding life requirements and high product reliability requirements. The cost of BOM (material list) mainly includes MIM (metal injection forming parts) precision processing, liquid metal raw materials, module assembly, etc.
Dongmu Co., Ltd.'s main business is divided into three major sectors: powder metallurgical pressing parts (PM), metal injection forming parts (MIM) and soft magnetic composite materials (SMC). In 2019, Dongmu Co., Ltd. decided to quickly enter the field of MIM through extensional mergers and acquisitions. In August 2019, the company acquired a 61% stake in Dongyu Huajing for 110 million yuan. In December of the same year, the company bought another 14% stake in Dongyu Huajing for 25.2 million yuan, with a shareholding ratio of 75%. In February 2020, the company acquired a 75% stake in Fuchi Hi-Tech for 1.039 billion yuan. Through these two mergers and acquisitions, Dongmu Co., Ltd. can quickly enter the consumer electronics industry and realize the company's strategic layout in the MIM industry.
Dongmu Co., Ltd. said in its semi-annual report in 2020 that during the reporting period, due to the adjustment of the sales strategy of consumer electronics international mainstream brands and related projects related to specific models of domestic mainstream brands, the sales of consumer electronic products reached 518 million yuan, accounting for 39.18% of the company's main business revenue, of which Fuchi Hi-Tech 20 The operating income from January to June 20 years was 473 million yuan (Fuchi Hi-Tech was included in the company's consolidated statement in March 2020, and the operating income from March to June was 378 million yuan).
In addition, in the first half of 2020, Dongmu Co., Ltd. registered and established Lianyungang Fuchi Intelligent Manufacturing Technology Co., Ltd., a wholly-owned subsidiary of Fuchi High-tech, Jiangsu Province, in Lianyungang City, and signed the Investment Agreement on Land Projects in Lianyungang Economic and Technological Development Zone with the Management Committee of Lianyungang Economic and Technological Development Zone in August of that year. It is proposed to use its own or self-financing to purchase 210 mu of land use rights in Lianyungang Economic and Technological Development Zone for the construction of the "Consumer Electronics Precision Parts Automation Production Line Project", with a total investment of 1 billion yuan. It is proposed to register and establish Guangdong Fuchi Intelligent Manufacturing Technology Co., Ltd. in Dongyu City to integrate MIM and consumer electronics. South China Production Base.
According to media reports, after acquiring Dongyu Huajing and Fuchi Hi-Tech, Dongmu Co., Ltd. has become the largest supplier of MIM parts for Huawei's mobile phones and the core supplier of Huawei's second folding screen mobile phone MateXs chain.
In response, the reporter of Economic Observer called Dongmu Co., Ltd. on February 24 to inquire that relevant people in its securities department said that the technology company of folding screen mobile phone chain can do it, and Huawei is also a customer of the company, but it is not clear whether it has supplied MateX2.
The person also said that in terms of MIM parts of foldable screen mobile phones, the company has cooperated with major domestic mobile phone manufacturers, and has supplies to major domestic mobile phone manufacturers. It said that the company was optimistic about the MIM industry, otherwise it would not have spent a lot of money to acquire Fuchi Hi-Tech and build a production base in Lianyungang.
Wang Huajun, an analyst at Zheshang Securities, believes that according to IHSMarkit's forecast, the global folding screen market shipments in 2020 will be nearly 5.2 million units, and it is expected to exceed 50 million units in 2025, and the compound growth rate from 2020 to 2025 is about 57%. DisplaySearch expects that folding screen mobile phones will bloom in 2021. Samsung, Xiaomi, vivo, OPPO and Google will all have folding screen mobile phones. Dongmu Co., Ltd., as one of the two oligarchs in the domestic MIM industry, is expected to continue to benefit.
Who is the supplier of liquid metal?
The cost of MateX2 chain BOM (material list) also includes liquid metals. Liquid metal belongs to amorphous alloys, also known as metal glass. It is a new metal material with glass, metal, solid and liquid characteristics. Because there are no defects such as dislocation, lamination, grain boundary, etc., amorphous alloys show special mechanical characteristics, and their bending strength, tensile strength, elastic deformation, etc. are better than common materials. Liquid metals have been widely used in consumer electronics, new energy vehicle products, headphones, etc., and have begun to show broad application prospects in intelligent manufacturing, high-end sports equipment and aerospace.
When Yi'an Technology was surveyed by institutional investors in December 2020, it said that the company's liquid metal products have been applied in batches in folding mobile phone chains, mobile phone optical brackets, door locks, acoustics and other products. The company provides two liquid metal chains for the largest mobile phone terminal customers in China. The liquid metal FaceID brackets and camera modules produced by the company have been supplied in batches to well-known domestic mobile phone manufacturers such as Xiaomi and OPPO, and liquid metal locks are exclusively supplied to Tesla. The company is the only enterprise in the world that applies liquid metals to the automotive industry.
According to the annual report of Yi'an Technology, the company's liquid metal products from 2016 to 2019 were 31.3085 million yuan, 53.8357 million yuan, 67.4526 million yuan and 72.881 million yuan respectively. In the first half of 2020, "the company's liquid metal product sales revenue was 70.9788 million yuan, an increase of 71.25% compared with the same period last year. The company has also been looking for and nurturing partners to jointly expand the liquid metal market. Yi'an Technology said in December 2020 when it was surveyed by institutional investors.
Recently, Yi'an Technology said in response to investors' questions on the investor interaction platform many times that the company provides liquid metal enamel chains for the largest mobile terminals in China, but does not explicitly provide liquid metal chains to Huawei.
On February 24, the reporter of Economic Observer called Yi'an Technology. Relevant people from its Securities Department said that we are now providing liquid metal chains to major domestic mobile phone manufacturers, but due to confidentiality regulations, which specific company is not convenient to disclose. The liquid metal chains of the previous generations of the largest mobile phone manufacturer in China are also supplied by us. However, the company's liquid metal is not directly handed over to the mobile phone manufacturer, but to the downstream manufacturer for assembly, and the finished product is handed over to the mobile phone manufacturer after assembly. The person did not disclose which company the downstream manufacturer of liquid metals is.
The above-mentioned relevant people from the Yi'an Science and Technology Securities Department also said that the performance of the company's liquid metal products in 2020 is not bad, better than in 2019. For details, please refer to the 2020 annual report released later. If the customer's market is not affected by other factors, the company's liquid metal products will also have a good development this year (2021).
In addition, Yi'an Technology has also signed cooperation agreements with many companies and governments to expand the industrialization scale of liquid alloys. According to the company's announcement, in July 2019, Yi'an Liquid Metals, a wholly-owned subsidiary of the company, signed a project investment framework agreement with the Qingxi Town People's Government of Dongyu City, with a total investment of 380 million yuan to jointly build a liquid metal project. In March 2020, the company and Sanxiang New Materials (603663). SH) Sanxiang Zirconium and Magnesium, its industrial fund, signed a project cooperation investment agreement to jointly invest in amorphous alloys (liquid metals) projects with a registered capital of 100 million yuan at a ratio of 40%:60%.
It is worth mentioning that Yi'an Technology intends to list the liquid metal business separately." If there is an opportunity, the company certainly wants to use the platform of the capital market to do a good job in the liquid metal industry. Yi'an Technology said in December 2020 when it was surveyed by institutional investors.
The trend of folding screen is irresistible?
2019 is the first year of folding screen products, and since then, major brand manufacturers have followed up and released them one after another. As far as product form is concerned, the folding form of mainstream folding screen mobile phones in the current market is roughly divided into three types: horizontal external folding, horizontal internal folding and vertical folding. At present, Samsung? GalaxyZFold series mainly focuses on horizontal inverted folding, GalaxyZFlip? The series mainly focuses on a portable vertical folding scheme.
The electronic team of CITIC Construction Investment believes that folding screen will become the general trend of the development of the smartphone market in the future, and the folding screen products of many manufacturers will be released one after another in 2021. Under the leadership of Samsung, Huawei and other brands, the folding screen market has initially completed consumer education. At the same time, it has made major breakthroughs in mass production, application ecology and other difficult problems, and is about to usher in rapid growth. Apple is also actively carrying out research and development of folding screen products.
CITIC Securities also continues to be optimistic about the trend of folding mobile phones. It said that according to Omdia's forecast, the shipments of foldable display panels from 2020 to 2027 will be about? 4.2 million units are expected to increase to 73.6 million, with a market penetration rate of 4.91% and a CAGR of 150%. Huawei MateX2 adopts an internal folding scheme this time. The multi-form folding screen scheme will coexist for a long time, corresponding to different diversified needs (multi-functional VS portable, etc.).
Chen Hang, an analyst at Founder Securities, believes that the Huawei MATEX2 internal folding plan released this time will be the beginning of the epoch-making period for OLED folding screens to enter the volume period, opening up a huge space for industrial imagination.
Wang Fang, chief analyst of Minsheng Securities Electronics Industry, believes that the trend of folding screens is unstoppable, and the chain and screen are still the key directions of upgrading. Foldable mobile phones break the screen-to-body ratio limit at one stroke. Foldable mobile phones are the most important upgrade direction of the appearance of smart phones in the next three years. Compared with ordinary mobile phones, the cost of BOM of folding mobile phones has increased by about 30%, including 70% in display screen costs, and the cost of batteries and rotating shafts has increased by 120%. With the gradual reduction of future prices, terminal sales are expected to increase significantly, bringing a new round of growth to the industrial chain.
Eontec production
Yian Technology (300328.SZ)
R&D and upgrade-magnesium aluminum alloy, liquid metal, and medical magnesium materials work together
Securities Research Report | First Coverage Report May 26, 2021
Core Aspects:
Industry leader in the fields of magnesium aluminum alloy, liquid metal, and medical magnesium materials. The company has a complete magnesium-aluminum alloy industry chain, based on its main business, has a position in the fields of liquid metal and medical magnesium materials, and builds a new growth point for the company. Its subsidiaries Yihao Metal and Meian Medical are the company’s "main battlefields" for liquid metal and medical magnesium materials.
Liquid metal will bring about the third material industrial revolution, and the company masters formulas and core patents for die-casting. Liquid metal (also known as amorphous alloy) has excellent physical and chemical properties such as high strength, high hardness, wear resistance, and corrosion resistance. With the advancement of die-casting technology, it currently has the potential for mass production and has the ability to form complex structures at one time. The cost efficiency advantage is significant. The company holds the core patents of liquid metal formulas and process equipment. LQMT (United States), a subsidiary of Hong Kong Liquid Metal Co., Ltd., which is 100% owned by the chairman, has played a synergistic role with the company to consolidate the company's leading position in Liquid Metal. The zirconium-based liquid metal material has been officially selected as an important material for the hinge of Huawei's second-generation folding screen mobile phone Mate Xs. With the promotion of zirconium-based metal applications, the company's product market has a broad space.
Biodegradable medical magnesium alloys benefit orthopedic patients, and the clinical and industrialization process is advancing steadily. Magnesium is a major element of the human body, which can be degraded and absorbed after implanted in the human body, avoiding the pain and risk of secondary surgery, and its mechanical properties are close to that of human bone tissue; and magnesium ions can promote bone formation and accelerate the rate of bone formation, and the cost is lower than traditional titanium alloys Material, so it has obvious advantages in orthopedics applications. The company's domestic clinical trials of high-purity magnesium bone nails are steadily advancing, and they have successfully obtained the EU CE certification and the right to enter the EU market. In the future, they will open up a tens of billions of blue ocean market.
Hold (first time)
Stock information
Industry Industrial Metal
Closing price on May 25 (yuan) Total market value (million yuan) Total share capital (million shares) Of which free float (%)
30-day average daily trading volume (million shares)
6.33 4,370.38 690.42 98.61 5.18
CSI 300
Stock price trend
64% 48% 32% 16%
0% -16% -32% -48%
Yian Technology
New energy vehicles accelerate the process of lightweight vehicles, and join hands with Yunhai Metal to create an aluminum-magnesium alloy “Yangtze River Delta + Pearl River Delta” layout. Magnesium aluminum alloy is a lightweight structural material for automobiles. At present, new energy vehicles generally have problems such as overweight and short cruising range. Increasing the proportion of lightweight materials in the entire vehicle is an effective way to increase the cruising range of new energy vehicles. The development of the new energy vehicle industry, The introduction of national policies such as environmental protection will accelerate the process of automobile lightweighting. In 2020, the second phase of the company’s “Chaohu Yi’an Yunhai Light Alloy Precision Die Casting Production Base Project” will be completed (the first phase will be put into production in 2017), achieving stable supply of raw materials and the location advantage of the “Pearl River Delta + Yangtze River Delta” dual center layout. Enter the supply chain of well-known domestic and foreign customers such as BYD and Tesla.
Investment advice: The company’s liquid alloy masters the core formula and equipment patents, and the zirconium-based liquid metal cuts into the core mobile phone manufacturer’s supply chain. It is expected to open up the company’s business profit growth point; on the other hand, the company’s new energy vehicle light
We have accumulated rich experience and R&D advantages in quantitative materials, and our products have successfully entered the supply chain of well-known customers at home and abroad, and are expected to enjoy incremental market gains in the future. The company has accumulated and first-in-class advantages in the industrialization of medical magnesium alloys, and the industrial value of magnesium alloys is expected to be realized after the clinical promotion of medical magnesium alloys. We expect the company’s net profit attributable to the parent company to be 0.41, 0.55, and 74 million yuan in 2021-2023, corresponding to 107.4, 80.0, and 59.1 times of PE. Considering that the company’s current business is still in the early promotion stage, there is still uncertainty in subsequent performance growth. The first coverage is given a "hold" rating.
Risk warning: orders for related new materials are lower than expected; the industrialization of liquid metal is not as expected; the performance of the main business of magnesium and aluminum alloy is not as good as expected; the clinical application of medical magnesium alloy is slower than expected.
Author
2020-05 2020-09 2021-01
2021-05
Analyst Wang Qi
Practicing Certificate Number: S0680521030003 Email: wangqi3538@gszq.com Research Assistant Liu Simeng Email: liusimeng@gszq.com
Related research
Financial indicators 2019A 2020A Operating income (million yuan) 1,025 945 Growth rate yoy (%) 4.0 -7.8 Net profit attributable to parent (million yuan) 103 16 Growth rate yoy (%) 90.2 -84.3 EPS latest dilution (yuan/share) 0.15 0.02 Return on net assets (%) 5.8 1.2 P/E (times) 45.7 290.4 P/B (times) 3.6 3.6
2021E 2022E 2023E
1,188 1,524 1,905 25.6 28.3 25.0 41 55 74 151.5 34.2 35.4 0.06 0.08 0.11 3.0 3.9 5.1 107.4 80.0 59.1 3.6 3.5 3.4
Source: Wind, Guosheng Securities Research Institute
Note: The stock price is the closing price on May 25, 2021. Please read the statement on the last page of this report carefully
May 26, 2021
Financial statements and key financial ratios
Balance sheet (million yuan)
Fiscal year 2019A 2020A 2021E 2022E 2023E
Income statement (million yuan) Accounting year operating income
Operating costs Operating taxes and additional operating expenses
Management costs
R&D expenses
Financial expenses
Asset impairment loss
Other income
Gains from changes in fair value
Net investment income
Asset disposal income
operating profit
Non-operating income
Operating expenses
The total profit
Income tax
Net profit
Minority shareholder gains and losses
Net profit attributable to the parent company
EBITDA EPS (yuan/share)
Main financial ratio
Fiscal year
Growth capacity Operating income (%) Operating profit (%) Net profit attributable to the parent company (%) Profitability
Quick ratio
Operating capacity
2019A 2020A 2021E 2022E 2023E
1025 945 1188 1524 1905 809 748 933 1190 1486 7 6 9 11 14 59 37 44 55 67 83 85 101 125 150 57 71 59 76 95
2 5 14 27 47 -8 -11 3 2 -8
9 12 0 0 0
0 0 0 0 0
2 1 1 1 1 36 -1 0 0 0 46 -11 26 39 55 52 30 24 28 33 0 1 1 1 0 97 19 49 66 88 12 1 5 6 8 85 18 44 59 80 -19 1 3 5 6 103 16 41 55 74 162 94 133 181 229 0.15 0.02 0.06 0.08 0.11
2019A 2020A 2021E 2022E 2023E
4.0 -7.8 25.6 28.3 25.0 16.5 -123.9 337.6 49.2 42.8 90.2 -84.3 151.5 34.2 35.4
21.1 20.8 21.5 21.9 22.0 10.1 1.7 3.4 3.6 3.9 5.8 1.2 3.0 3.9 5.1 5.3 1.2 2.6 3.5 4.2
28.0 30.2 41.8 47.8 56.3 -4.1 -1.1 18.5 32.3 53.2 2.22.21.51.31.1
Current assets 1019 Cash 329 Notes and accounts receivable 321 Other receivables 84 Prepayments 6 Inventories 210 Other current assets 69 Non-current assets 1011 Long-term investments 0 Fixed assets 622 Intangible assets 40 Other non-current assets 349 Total assets 2031 Current liabilities 474 Short-term borrowings 108 Notes and accounts payable 228 Other current liabilities 139 Non-current liabilities 94 Long-term borrowings 56 Other non-current liabilities 38 Total liabilities 568 Minority shareholders' equity 147 Share capital 460 Capital reserves 462 Retained earnings 390 Attributable to shareholders' equity of the parent company 1316 Liabilities and shareholders' equity 2031
Cash flow statement (million yuan)
Fiscal Year 2019A
Cash flow from operating activities 108
Net profit 85
Depreciation and amortization 65
Financial expenses 2 Investment loss -2-1-1-1-1 current ratio
977 1323 1491 364 353 453 329 488 560 46 117 92
8 10 13 165 290 308 65 65 65 1112 1246 1424 23 45 68 743 856 1013 48 49 50 298 295 294 2089 2568 2915 435 888 1187 136 447 740 213 336 365 86 104 82 196 186 205 93 97 110 103 89 94 632 1074 1392 166 170 174 690 690 690 232 232 232 369 396 432 1291 1325 1348 2089 2568 2915
1996
566
750
169
16
431
65
1627
90
1185
48
304
3624
1817
1182
510
125
223
127
95
2039
181
690
232
480
1403
3624
2020A 2021E 2022E
2023E
Gross profit margin (%) Net profit margin (%) ROE(%) ROIC(%)
Working capital changes
Other operating cash flow
Cash flow from investing activities
Capital expenditures
Long-term investment
Other investment cash flow
Cash flow from financing activities
short-term loan
Long term loan
Increase in common stock
Increase in capital reserve
Other financing cash flow
Net increase in cash
-32 96 -10 13 -129 -173 196 157 -20 -60 47 -76 -4 15 -22 28 -37 37
0 230 0 -230 55 -51 -25 41
-196 -65 -210 0 0 0 -209 -269 -302 112 156 181 -23 -23 -23 -120 -136 -144 -65 -34 -45 -14 2 -2
4 13 17
0 0 0
0 0 0 -55 -50 -60 -337 -191 -330
1.6
0.15
P/E 45.7 P/B 3.6 EV/EBITDA 29.6
1.7 1.1 0.9 0.8
0.5 0.5 0.6 0.6 2.9 2.9 2.9 2.9 3.4 3.4 3.4 3.4
0.02 0.06 0.08 0.11 0.30 -0.09 0.16 0.02 1.87 1.92 1.95 2.03
290.4 107.4 80.0 59.1 3.6 3.6 3.5 3.4 51.5 38.7 29.5 24.9
205 -63 112 18 44 59 73 76 92 5 14 27
17
80 Solvency
100 Gearing ratio (%) 47 Net gearing ratio (%)
Turnover rate of total assets
Accounts receivable turnover rate
Accounts payable turnover rate
Index per share (yuan) Earnings per share (latest dilution) Operating cash flow per share (latest dilution) 0.16 Net assets per share (latest dilution) 1.91 Valuation ratio
0.5 2.8 3.2
Source: Wind, Guosheng Securities Research Institute
Note: The stock price is the closing price on May 25, 2021
P.2
Please read the statement on the last page of this report carefully
Content directory
1. Yian Technology: Industry leader in the fields of magnesium aluminum alloy, liquid metal, and medical magnesium materials............................. ................................................5 1.1 The company is a pioneer & leader in the global large-scale magnesium-aluminum alloy die-casting industry... .................................................. ...5 1.2 Yi'an Technology's core competitiveness-technology research and development and industrial integration work together............................... .................................................. ...7 1.3 The three major business segments go hand in hand and continue to improve the industrial chain layout........................ .................................................. .........7 1.4 Operating income has declined for the first time since its listing, and the volume of liquid metal has risen sharply......................... .................................................. ................8
2. Liquid metal will bring about the third material industrial revolution... .................................................. ........................10 2.1 Liquid metal has the potential to replace traditional alloys, and the company continues to expand downstream applications.......... .................................................. .........10 2.2 Liquid metal folding screen hinges open new market space............................. .................................................. .......................12 2.3 The production of bulk amorphous alloys is relatively difficult, and large-scale bulk amorphous alloys still need technological breakthroughs...... .................................................. 13 2.4 The company's amorphous alloy is in a leading position in China........................ .................................................. ............14
3. Biodegradable medical magnesium alloys benefit orthopedic patients... .................................................. ...18 3.1 Biodegradable medical magnesium alloys have obvious advantages in orthopedic applications... .................................................. ...18 3.1.1 Compared with traditional titanium alloys, stainless steel and other alloy materials, magnesium alloys have significant advantages... .................................................. ...18 3.1.2 High purity magnesium VS magnesium alloy: single element, stable degradation rate ... .................................................. .........19 3.2 The successful clinical trials of medical magnesium bone nails will open up the tens of billions of medical equipment market...... .................................................. ...19 IV. New energy vehicles support the magnesium-aluminum light alloy business sector............................... .................................................. .................................. 21 4.1 Lightweight cars open up the market space of magnesium-aluminum alloys, and new energy vehicles are expected Accelerate the lightweight process................................... 21 4.2 Yi'an Yunhai Project is completed, "Realizing the Yangtze River Delta + Pearl River Delta" layout....... .................................................. ...23 V. Earnings Forecast and Investment Recommendations... ..................................... .................................................. ...24 5.1 Earnings forecast assumptions........ .................................................. .................................................. ..................... 25 5.2 Investment advice......................... .................................................. .................................................. .........26 Risk Warning.......................... .................................................. .................................................. ................................ 26
Chart catalog
Chart 1: The company has a wide range of downstream applications... .................................................. .........5 Chart 2: Zhuzhou Municipal People's Government State-owned Assets Supervision and Administration Commission is appropriate Ann Technology Real Holdings East................................... ..........................6 Chart 3: Based on magnesium-aluminum alloy die-casting as its main business, it will use liquid metal and medical magnesium materials to build new growth .................................................. ...7 Chart 4: The company's operating income has declined (100 million yuan) .......... .................................................. ............................8 Exhibit 5: 2020 The company's net profit attributable to its parent has dropped sharply (100 million yuan) ... .................................................. .....8 Chart 6: The company's liquid metal revenue accounts for about 13% (%) of the company's revenue ........... .................................................. ...9 Chart 7: Liquid metal receivables increase rapidly (million yuan)............. .................................................. ................................................9 Chart 8: In 2020, the company's liquid metal will contribute 33% of gross profit (%) ... .................................................. ..........9 Figure Table 9: The company's R&D investment continues to increase (ten thousand yuan)...................................... .................................................. ........................10 Figure 10: R&D expenses as a proportion of operating income have risen steadily (100 million yuan) ........ .................................................. ..........10 Chart 11: Domestic and overseas revenue share (%) .. .................................................. .................................................. ...10 Exhibit 12: The gross profit margin of overseas business in 2020 is lower than domestic (%)... .................................................. .....10 Chart 13: Liquid metal mechanical properties are better than common materials... .................................................. .................................................. ........11 Figure 14: A wide range of applications for liquid metals............ .................................................. ........................................12 Figure 15: Huawei Mate Xs triggers a folding screen Mobile phone blowout... .................................................. 12 Chart 16: Smartphone shipments enter the platform period (100 million units) ... ............ .................................................. .......13 Chart 17: Folding screen mobile phone market has entered a period of rapid growth (US$100 million).......................... .................................................. ...........13 Chart 18: Bulk amorphous alloy production process............................ .................................................. .............................................14 Chart 19: Appropriate Antech's strategic layout of liquid metal............................................ .................................................. .......................16
May 26, 2021
P.3 Please read the statement on the last page of this report carefully
May 26, 2021
Figure 20: The company is actively deploying liquid metal formulas and process equipment patents...... .................................................. ...16
Chart 21: Vacuum Die Casting Patent... .................................................. ..................................... 17
Chart 22: Continuous Rotary Die-casting Molding Equipment... .................................................. ...............................17
Figure 23: Estimated production capacity of the industrialization expansion project of amorphous alloy precision structure construction... .................................................. .....17
Chart 24: Magnesium is close to the mechanical properties of human bone tissue... .................................................. ........................19
Figure 25: The first case of pure magnesium bone nail applied to femoral necrosis with vascularized bone flap transplantation.............................. .................................................. ...19
Chart 26: Common joint fractures........................................... .................................................. ........................................19
Figure 27: 99.999 high-purity magnesium bone nail........................................... .................................................. ....................................20
Figure 28: Market scale of trauma physiotherapy consumables field (100 million yuan) ... .................................................. .................20
Figure 29: The proportion of my country's aging population continues to rise (million people) ................................... .................................................. ...............20
Figure 30: The amount of magnesium used in domestic bicycles still has a lot of room for growth... .................................................. .....................twenty one
Figure 31: Magnesium alloy has the advantages of light weight and high density............ .................................................. ......................twenty one
Figure 32: The amount of aluminum used by bicycles in my country (kg) is lower than the level of foreign companies... .................................................. ..................twenty two
Chart 33: The amount of magnesium used in bicycles in my country (kg) is lower than the level of foreign companies... .................................................. ..................twenty two
Figure 34: my country's new energy vehicle sales and growth rate (10,000 units) ... .................................................. ......................twenty two
Chart 35: The company's magnesium-aluminum alloy equipment... .................................................. ................................twenty three
Figure 36: The company's auto parts products... .................................................. ..................................... twenty three
Figure 37: Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project Estimated Capacity ... .................................................. ..twenty four
Figure 38: Forecast of company profit and main cost subjects (100 million yuan) ........................... .................................................. ..............25
Exhibit 39: Valuation Table of Comparable Companies... .................................................. .........................................26
P.4 Please read the statement on the last page of this report carefully
Chart 1: The company has a wide range of downstream applications
1. Yian Technology: Industry leader in the fields of magnesium aluminum alloy, liquid metal, and medical magnesium materials
1.1 The company is a pioneer & leader in the global large-scale magnesium-aluminum alloy die-casting industry
The company is one of the earliest companies in the world to deploy large-scale magnesium-aluminum alloy die-casting equipment, and has a complete industry chain of magnesium-aluminum alloy research and development, design, production and sales. On the other hand, the company's card slots are deployed in the fields of liquid metal and medical magnesium materials, building a new growth point for the company. Yian Technology was established in May 1993, specializing in the research and development, design, production and sales of magnesium alloy, aluminum alloy and other light alloy precision die castings, mainly used in 3C, LED, medical equipment, auto parts, power tools, Industrial accessories and other fields. On the basis of the original business scale, the company currently focuses on the development trend of new material industries such as liquid metal, biodegradable medical magnesium alloy, new energy vehicles, 5G, etc., intensifies scientific and technological research and development, and actively expands the layout of new products and new businesses. , To achieve a systematic combination of technology and products to enhance the company’s endogenous growth momentum; the company’s liquid metal products have successfully entered Huawei’s supply chain system; medical magnesium bone nails have begun domestic clinical trials and are expected to gradually begin market launch.
May 26, 2021
Source: Yi'an Technology Company's official website, Guosheng Securities Research Institute
P.5
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The legal representative of the company is Yang Jiedan, the actual controller is the State-owned Assets Supervision and Administration Commission of Zhuzhou Municipal People’s Government (Zhuzhou State-owned Assets Supervision and Administration Commission), and the controlling shareholder is Zhuzhou State-owned Assets Holding Group Co., Ltd. Public offering of 50 million shares, after the transfer of 78.75 million shares of the company held by Yian Industrial, the accumulated shareholding ratio of the company is 27.97%. The second largest shareholder is Hong Kong Yian Industrial Co., Ltd., with a shareholding ratio of 20.41%. Founded in 1984, the legal representative is Li Yangde, the current chairman of Yian Technology.
Zhuzhou International Investment Corporation was established in January 2010. Its business scope is investment and operation of state-owned assets; investment and operation of urban infrastructure and rural infrastructure construction. It actively develops key projects around Zhuzhou’s "four cities and three bases" and 100 billion industrial clusters. Equity investment, etc. Up to now, there are 35 invested companies, including 7 wholly-owned subsidiaries. Inion Technology can take advantage of Zhuzhou SDIC's holdings to promote the manufacturing industry of Zhuzhou SDIC and the company's liquid metal and new energy vehicle lightweight metal production.
Manufacturing technology is better integrated.
May 26, 2021
Subsidiaries: Yi'an Technology has 18 domestic holding subsidiaries for scientific research, processing, production, and sales. Among them, Chaohu Yi'an Yunhai cooperates with the parent company to further deepen the use of magnesium aluminum alloy lightweight materials for automobiles; Yihao Metal and Mei'an Medical are the companies The "main battlefield" for liquid metal and medical magnesium materials: (1) Yihao Metal Material Technology Co., Ltd. (60% shareholding): Mainly engages in the smelting, processing and post-processing of amorphous alloy materials; (2) Mei'an Medical Equipment Co., Ltd. (100% shareholding): Responsible for R&D, production and sales: medical equipment, magnesium, aluminum alloy materials, magnesium alloy biological materials; (3) Opto Industrial Materials Co., Ltd.: mainly produces new organic silicone materials, Sales and research; (4) Yian New Material Research Institute Co., Ltd.: Responsible for the research and development and technical services, technical consultation, technology transfer, and new alloy materials of nano materials and liquid metals; (5) Chaohu Yian Yunhai Technology Co., Ltd.: Production and sales of magnesium alloy and aluminum alloy light alloy precision die castings.
Chart 2: State-owned Assets Supervision and Administration Commission of Zhuzhou Municipal People's Government
Source: wind, Guosheng Securities Research Institute, date as of May 13, 2021
Development history: Based on the main business of magnesium-aluminum alloy die-casting, we will use liquid metal and medical magnesium materials to build new growth. The company was established in 1993, based on magnesium-aluminum alloy die-casting equipment, and currently has 4200T and 3500T large-scale die-casting equipment. Based on its own industry, Yian Technology continues to explore new areas. The company is the earliest enterprise in the industry to conduct liquid metal research and development. It has focused on liquid metal research and development and industrialization for 10 years. In 2014, Yihao Metal was established and it was the first to go offline that year. This liquid metal dual card tray has opened up new growth space for folding screen liquid metal hinges, new energy auto parts, 3C, and medical equipment. In addition, in 2008, the company began to develop 99.999% high-purity magnesium for orthopedic implants. In 2010, Mei'an Medical Devices Co., Ltd. was established to be responsible for the development and production of magnesium alloy biomaterials and medical devices. The company’s degradable magnesium bone internal fixation screws have been received by the European Union. CE certification and actively promote sales, and the domestic clinical trials of medical magnesium bone nails have been steadily promoted.
P.6
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Chart 3: Based on magnesium-aluminum alloy die-casting as its main business, it will focus on liquid metal and medical magnesium materials to build new growth
May 26, 2021
Source: Company announcement, Guosheng Securities Research Institute
1.2 Yi'an Technology's core competitiveness-technology research and development and industrial integration work together
The company's founder and chairman Mr. Li Yangde laid the company's core competitiveness driven by technological innovation and R&D. Mr. Li Yangde graduated from Tsinghua University with a master's degree in management. He also serves as a doctoral supervisor at the University of Science and Technology Beijing and Shanghai Jiaotong University. He is also an adjunct professor at Huazhong University of Science and Technology and Ningxia University of Science and Technology, a visiting professor at Xiangfan University, and a distinguished professor at Jiamusi University. He has published more than 10 academic papers and a number of invention patents. And it has established close ties with top scientific research institutes such as the Chinese Academy of Sciences, Shenyang Institute of Metals, Changchun Institute of Applied Chemistry, and Shenzhen Advanced Institute.
In 2016, Hong Kong Liquid Metal Co., Ltd. controlled by Li Yangde, Chairman of Yian Technology, invested in Liquidmetal (Liquidmeta, LQMT) in the United States. Li Yangde became the chairman of the company and currently owns 46% of the shares in LQMT.
1.3 The three major business sectors go hand in hand and continue to improve the industrial chain layout
The company takes liquid metal, biodegradable medical magnesium alloy, and magnesium-aluminum automotive products as the three key business sectors. It has a complete industrial chain and can provide customers with integrated mold design and manufacturing, die-casting molding, precision CNC processing, spraying, and testing. Service capability. The product range includes: consumer electronics, high-end LED curtain walls, medical equipment, auto parts, communication equipment, large structural parts, etc. In terms of magnesium and aluminum alloys, the company has 4200T and 3500T and other large-scale die-casting equipment, which has greater advantages in the integrated molding of large-scale parts of new energy vehicles; in terms of liquid metal, as an early liquid metal research and development enterprise in the industry, it has Full-process capabilities such as liquid metal synthesis design, smelting, mold processing, machining, and vacuum die-casting. It has the largest amorphous alloy production line in China; in terms of medical magnesium alloys, the company's medical magnesium bone nails have obtained the EU CE certification and are steadily advancing in China Clinical Trials.
Since its establishment, the company has always adhered to the development idea of ??scientific and technological innovation. By the end of 2020, the number of R&D personnel reached 394. It has established the Guangdong Light Alloy Engineering Technology Research and Development Center, the Guangdong Academician Expert Workstation, and the Guangdong International Science and Technology Cooperation Base. At the same time, the company has continuously strengthened the "production, study and research" cooperation between universities and research institutes. The company has obtained a total of 192 patents and 49 new ones in 2020. It has built technical barriers through patent layout, continuously increased R&D investment, and increased R&D expenses by more than 20%.
P.7
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May 26, 2021
1.4 Operating revenue has declined for the first time since its listing, and liquid metal volume has risen simultaneously
Operating income fell for the first time since listing, and net profit attributable to the parent company decreased by 84.27% year-on-year: 2016-2019, the company's operating income increased from 563 million yuan to 1.025 billion yuan, with a CAGR of 16%; net profit attributable to the parent increased from 31 million yuan to 103 million Yuan, the CAGR is 35%.
In 2020, the company's operating income was 945 million yuan, a year-on-year decrease of 7.77%, and net profit attributable to the parent was 16.21 million yuan, a year-on-year decrease of 84.27%; both the decline in revenue and net profit was mainly due to the epidemic affecting the company’s upstream and downstream customers to resume work and production, and overseas epidemics As a result, exports were blocked and the company's overall performance was dragged down. Expensive R&D expenses increased by RMB 13.53 million. Due to the demolition of the Shenzhen-Ganxi high-speed railway, the company confirmed revenue of 72.58 million yuan in 2019, and confirmed net income of 21.97 million yuan in 2020, a year-on-year decrease of 50.6 million yuan. The demolition caused the company's amorphous alloy precision structural parts industrialization expansion project to be postponed for one year, dragging it down The progress of the company's expansion project.
Figure 4: The company's operating income has declined (100 million yuan) Figure 5: The company's net profit attributable to the parent in 2020 has dropped significantly (100 million yuan)
1.2 1 0.8 0.6 0.4 0.2 0
2015
100% 50% 0% -50% -100%
Net profit attributable to the parent
Year-on-year
2016
2017
2018
2019
2020
Source: Company announcement, Guosheng Securities Research Institute
12 10 8 6 4 2 0
2015
50% 40% 30% 20% 10% 0% -10% -20%
Operating income year-on-year
2016
2017
2018 2019
2020
Source: Company announcement, Guosheng Securities Research Institute
In 2020, liquid metal revenue increased by 68% year-on-year, becoming the company's largest source of gross profit: From the perspective of the company's revenue structure, the liquid metal business accounted for 13% of operating revenue in 2020 to 123 million yuan, an increase of 68% year-on-year, mainly due to folding The revenue of screen hinges increased, and the gross profit margin of the liquid metal sector reached 53.49%, contributing 33% of the company's gross profit and becoming the company's largest source of gross profit. Liquid metal is the company’s current key development direction, with excellent material properties. It has entered the fields of folding screen mobile phone metal hinges, new energy auto parts, consumer electronic structural parts, medical equipment, etc. It has a good market application prospect and opens up new opportunities for the company. Profit growth point.
The gross profit of aluminum products and magnesium products has dropped significantly: the company's aluminum-magnesium alloy business accounts for 61% of operating income. The gross profit margin in 2020 is only 8.0%, which is a significant drop of 18.5% compared to 2019. The company's magnesium products business revenue decreased by 20.5% year-on-year, and costs decreased by 11.3% year-on-year; aluminum product revenue decreased by 13.9% year-on-year, and costs decreased by 1.5% year-on-year. In the first half of 2020, affected by the epidemic, the company's magnesium-aluminum alloy product volume profit was under pressure. In the future, the company needs to further reduce costs and increase efficiency, and increase the proportion of high-margin products.
P.8
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May 26, 2021
Figure 6: The company's liquid metal revenue accounts for about 13% (%) of the company's revenue. Figure 7: Liquid metal receivables increase rapidly (million yuan)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Magnesium products Aluminum products Bakelite products Other
Organic silica gel Liquid metal Proportion of liquid metal
13%
2015 2016
2017
2018 2019 2020
140 120 100
80 60 40 20
0
2015
80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20%
Liquid metal revenue YoY
2016
2017
2018
2019 2020
Source: Company announcement, Guosheng Securities Research Institute
Source: Company announcement, Guosheng Securities Research Institute
Continue to increase R&D investment and build a patent moat: Under the pressure of revenue and net profit, the company continues to increase R&D investment. In 2020, R&D investment is 81.12 million yuan, an increase of 33% year-on-year, and the proportion of R&D expenses in operating revenue has remained constant for a long time. Over 5%, it has increased steadily in the past three years, showing the company's determination to transform its products to high-end products. In 2020, the company added 49 authorized patents, and currently has a total of 192 patents. In 2017, the company invested 35 million yuan to establish New Materials Research Institute Co., Ltd. to increase R&D and technology investment in nanomaterials and amorphous alloys (liquid metals).
Figure 8: The company's liquid metal contributes 33% of gross profit in 2020 (%)
13%
Magnesium products
Aluminum products
Liquid metal
Organic silica gel
other
26%
17%
10%
33%
Source: Company announcement, Guosheng Securities Research Institute
P.9
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May 26, 2021 Chart 9: The company's R&D investment continues to increase (ten thousand yuan) Chart 10: The proportion of R&D expenses in operating income has increased steadily (100 million yuan)
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
0
2015
35% 30% 25% 20% 15% 10% 5% 0%
R&D investment year-on-year
2016
2017 2018
2019 2020
Source: Company announcement, Guosheng Securities Research Institute
12 10 8 6 4 2 0
2015
8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
Operating income
R&D expenses/operating income
2016
2017
2018
2019
2020
Source: Company announcement, Guosheng Securities Research Institute
Figure 11: Proportion of domestic and overseas revenue (%)
The overseas business was dragged down by the epidemic, and the gross profit margin was lower than that of the domestic: Nearly half of the company’s revenue came from overseas. In 2020, affected by the overseas epidemic, the company’s export business was blocked. The proportion of overseas revenue in total revenue fell to 44%, a record low. With the popularization of vaccines and epidemic control, this state is not expected to continue. The company's overall gross profit margin has shown a downward trend in recent years. In 2020, the gross profit margin of overseas business was 14%, a record low, and domestically, it rose to 26%, mainly due to the increase in the proportion of high-margin liquid metals.
Figure 12: The gross profit margin of overseas business in 2020 is lower than that of domestic (%)
35% 30% 25% 20% 15% 10%
5% 0%
30% 29%
2015
29% 27%
2016
Overseas domestic
25% 2...
22% 20%
26%
14%
twenty four%
twenty two%
2017 2018
2019 2020
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
43%
57%
43%
57%
Overseas domestic
51%
49%
49%
51%
49%
51%
56%
44%
2015 2016 2017 2018
2019 2020
Source: Company announcement, Guosheng Securities Research Institute
Source: Company announcement, Guosheng Securities Research Institute
2. Liquid metal will bring about the third material industrial revolution
2.1 Liquid metal has the potential to replace traditional alloys, and the company continues to expand downstream applications. Liquid metal has the potential to replace traditional alloys:
P.10
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May 26, 2021
Amorphous alloys: Amorphous alloys are also called liquid metals, solid metals or alloys whose atoms are arranged in a long-range disorder and short-range ordered structure. The microstructure is very similar to that of glass, so it is called liquid metal. Amorphous alloy has high strength, high hardness, high elastic limit, good soft magnetic or hard magnetic properties, friction and wear resistance and corrosion resistance and other excellent physical and chemical properties, and its cooling and solidification shrinkage is small, and it has a good near-net shape Casting forming ability (high precision in one-time forming, which can save machining cost).
? Performance advantage: a new type of metal material with the characteristics of glass, metal, solid and liquid. Because there are no defects such as dislocation, stacking fault, grain boundary, etc., amorphous alloys show special mechanical properties, and their bending strength, tensile strength, elastic deformation, etc. are better than common materials (strength is more than 5 times that of conventional aluminum-magnesium alloys) , 7 series aluminum is 5 times, stainless steel is 3 times, titanium alloy is 2 times).
? Potential for mass production: Liquid metal can be produced through molds. A set of molds supports 30,000 to 40,000 products. At present, Yi'an Technology's products have high repeatability and accuracy can reach ±0.03mm. Compared with powder metallurgy, liquid metal The transverse and longitudinal shrinkage rate reaches 2.5-3.5 per thousand, and the powder metallurgy shrinkage rate is 22%-24%, which is more suitable for batch preparation of precision metal structures requiring high precision.
? Cost advantage: Liquid metal can form products with complex structures at one time through vacuum die-casting. Because of its good formability, it saves a lot of CNC (Numerical Control Processing) procedures and has a high cost performance. And due to the good material properties, compared with traditional materials, the same structural strength requires less liquid metal material consumption, and the cost advantage of scaled production is highlighted.
Figure 13: The mechanical properties of liquid metal are better than common materials
The four major sectors are working together to continue to expand the downstream application areas: the company’s largest liquid metal sector is liquid metal hinges for folding screen mobile phones. The company has the ability and strength to produce liquid metal hinges and has been applied to the two generations of folding machine products from the largest domestic mobile phone terminal manufacturer . The second largest segment is new energy auto parts. The company is the only company in the world that applies liquid metal to the automotive industry, and exclusively supplies Model X liquid metal door lock covers to Tesla. The third largest sector is consumer electronics structural parts. The company is one of the few suppliers in the industry that realizes the commercial use of liquid metal precision structural parts in the consumer electronics field. The liquid metal Face ID brackets and camera modules produced by the company have been sold to Xiaomi, OPPO and other well-known domestic mobile phone manufacturers supply in batches. The 5G era will accelerate the market penetration of liquid metals. The fourth sector is the medical device structural parts market. The company takes full advantage of various physical properties of liquid metal, actively expands the overseas medical device market, and cooperates with internationally renowned medical device companies for development. Medical device structural parts have entered trial production one after another. The product has achieved mass production.
Source: "Properties of Liquid Metal", Guosheng Securities Research Institute
P.11
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Figure 14: A wide range of applications for liquid metal
May 26, 2021
Source: Company's official website, Guosheng Securities Research Institute
P.12
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2.2 Liquid metal folding screen hinges open new market space
Huawei Mate Xs is released, zirconium-based liquid metal opens new profit growth points: On February 24, 2020, Huawei released the second folding screen mobile phone Huawei Mate Xs new product launch conference. The new machine support uses high-strength zirconium-based liquid metal. The friction parts adopt the metal injection molding (MIM) process, which has the advantages of high precision and lighter weight, which is expected to replace the traditional stamping + CNC production mode. The hinge is the most critical functional component for the realization of a foldable mobile phone, and it is also the part with the highest technological content in the folding screen. It needs to ensure precise limit, multiple opening and closing, damping protection and other functions. It also needs to have light weight, small size, and The requirements of stable performance, and the material properties and accuracy of liquid metal can meet the requirements. It is expected that in 2021, folding screen mobile phones will flourish. Samsung, Xiaomi, vivo, OPPO, and Google will all have a large number of folding screen mobile phones.
Figure 15: Huawei Mate Xs triggered a blowout release of folding screen mobile phones
Model Price (RMB) Time to market
Huawei Mate X 16999 2019/2/24
Huawei Mate Xs 16999 2020/2/24
Samsung Galaxy Z Flip 12499 2020/7/22
Samsung Galaxy Z Flod2 16999 2020/9/9
Motorola razr 12499 2020/9/10
Samsung W21 19999 2020/11/4
OPPO X 2021 Scroll Screen Concept Machine None 2020/11/17
Huawei Mate X2 17999 2021/2/22
Xiaomi MIX FLOD 9999-10999 2021/3/30
Source: Pacific Computer Network, Guosheng Securities Research Institute
May 26, 2021
The penetration rate of the folding screen mobile phone market is accelerating: The Institute of Information and Communications Technology released a March domestic mobile phone market analysis report: From January to March, the total domestic mobile phone market shipments totaled 97.973 million units, a year-on-year increase of 100.1%. In terms of the development of 5G mobile phones, from January to March, the domestic market's 5G mobile phone shipments were 69.846 million units and 64 new models were launched, accounting for 71.3% and 52.5% respectively. Digitimes predicts that the global folding screen market will reach USD 5.5 billion in 2020 and is expected to exceed USD 105.3 billion in 2025, with a compound growth rate of approximately 64% from 2020 to 2025.
Figure 16: Smartphone shipments enter the platform period (100 million units) Figure 17: Folding screen mobile phone market has entered a period of rapid growth (US$100 million)
1200
1000
800
600
400
200
1053 888
627
2019 2020 2021E 2022E 2023E 2024E 2025E
10 0
370 222
55
1,800 1,600 1,400 1,200 1,000
800 600 400 200
0
Shipments
Year-on-year
60% 50% 40% 30% 20% 10% 0% -10%
Source: Digitimes, Guosheng Securities Research Institute
2.3 The production of bulk amorphous alloys is relatively difficult, and large-scale bulk amorphous alloys still need technological breakthroughs
After nearly a hundred years of development, amorphous alloys have continuously enriched their alloy components: In 1934, German scientist Kramer first used meteorological deposition to prepare amorphous alloy films. In 1950, Brenner prepared a Ni-P amorphous alloy coating by electrodeposition to improve wear resistance and corrosion resistance, and was widely used in continuous casting and rolling molds in the iron and steel smelting industry. In 1987, the metal copper mold casting method used by the Institute of Metal Research of Tohoku University in Japan discovered La-Al-Ni-Cu (lanthanum series), Mg-Y-Ni-Cu (magnesium series) and Zr-Al-Ni-Cu (zirconium series), etc. A bulk amorphous alloy system with strong amorphous forming ability. Later, Peker and Mukherjee of the California Institute of Technology in the United States discovered the Zr-Ti-Cu-Ni-Be alloy system with superb amorphous forming ability through the method of doping with metal Be.
Bulk amorphous alloys are difficult to produce, and vacuum die-casting is suitable for thin-walled complex parts: amorphous alloys have metastable structure characteristics, and it is difficult to use conventional forging or welding processes for parts processing. The current feasible technical means is the use of blocks. The fluidity of bulk amorphous alloy is cast. Crystalline alloys are solidified under equilibrium conditions, and since rapid cooling is not required, the mold can be easily filled. Because of the metastable characteristics of amorphous alloys, the alloy liquid must freeze its liquid structure into a solid state at a very fast cooling rate, and there is no release of latent heat of crystallization during the process, which brings about the filling ability and fluidity of amorphous alloys. Problems, such as insufficient pouring and air pockets. In order to solve these problems, the current common technological methods are: superplastic forming, vacuum die casting (injection) forming, vacuum suction casting forming, water quenching method, copper mold adsorption method, directional solidification method and other processes.
Source: Institute of Information and Communications Technology, Guosheng Securities Research Institute
P.13
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
May 26, 2021
Figure 18: Production process of bulk amorphous alloy
Technical means Working principle
Examples Advantages
Disadvantage
Superplastic forming Die forging, hot extrusion, hot embossing.
It is suitable for micro-nano-scale manufacturing, such as: micro gears, low-cost fast-speed forceps, micro-scalpels (micro-replication. Meter level).
Oxidation and crystallization,
Sensitive to process parameters.
Place the granulated raw materials in a vacuum sealed chamber
Vacuum Die Casting After melting by electric induction heating, it is introduced into the injection (injection) molding sleeve, and the molten (EPV-HPDC) metal is pressed into the mold through the high-speed movement of the plunger, and then kept super high
Compression and solidification molding.
Suitable for complex and thin-walled
Thin-walled metal parts, such as: smart phone frame, notebook computer case, watch frame, earphones and other thin-walled parts.
The molding speed is high, and the solidification process only takes a few milliseconds, effectively avoiding gas
Defects such as holes and shrinkage.
Exist in different parts
Tiny pores may be caused by too fast filling; the technical difficulty is more complicated.
Vacuum suction casting
Place the casting mold in a closed container with negative pressure. The molten metal is sucked into the cavity and the negative pressure is removed after solidification.
It is suitable for the production of thin and fine small precision castings, such as cylinders, discs, and plate castings. Harmonic reducer flexible wheel (diameter up to 50mm, wall thickness 2mm).
Improve the filling ability of the alloy, the minimum wall thickness is 0.2mm, reduce the porosity, slag inclusion, etc.
defect.
Not applicable to shapes
Complex casting casting.
Water quenching
The alloy is placed in a quartz tube, and after melting, it is quenched into flowing water together with the quartz tube to achieve rapid cooling to form a bulk amorphous alloy.
Suitable for small block alloys, simple operation and manufacturing. The art is easy to control.
The equipment is expensive,
Prone to pores and quartz
The tube is easy to break.
After the parenting and financialization, the melt is sucked and casted from the crucible copper mold suction casting method into the water-cooled copper mold to form a
Large pieces of material of a certain shape and size.
Suitable for small size samples.
The copper mold has a fast cooling rate and preparation efficiency
high.
Prone to surface shrinkage, and the surface is not smooth enough.
Directional solidification
Control the directional solidification rate and the liquid phase temperature gradient in front of the solid/liquid boundary.
It is suitable for long samples with small cross-sectional area.
Effectively solve the long strip amorphous alloy flow
The problem of insufficient mobility.
Amorphous materials required
High forming ability.
Source: CNKI, "New Progress in Research on Casting and Forming of Bulk Amorphous Alloys", Guosheng Securities Research Institute
Current technology is difficult to achieve large-scale mass production of bulk amorphous alloys: limited by the manufacturing process of amorphous alloys, if the size is large, it is difficult to achieve amorphization inside, so there is a size limit (maximum critical size) in the manufacture of amorphous alloys . The maximum critical dimension of most types of amorphous alloys is within 10mm. The Pd-based alloy invented in 1997 reached 72mm. In 2019, Shen Baolong of Southeast University and others obtained non-gold alloy ingots with a maximum diameter of 16.52mm through arc melting and negative pressure direct cooling. , But there is still a big gap compared with other alloys, which limits the application of amorphous materials to a certain extent. In the future, with technological progress, bulk alloys are expected to break through the size limit of structural parts and realize the large-scale production of large super-strong structural parts.
2.4 The company's amorphous alloy is in a leading position in China
The earlier bulk amorphous alloy forming equipment in the world is the amorphous alloy injection equipment developed by Liquidmetal Technologies in the United States and ENGEI in Europe in 2015, but the forming equipment developed and manufactured by it is the company’s secret and is not external. Sales, so its details are not clear to the outside world. Huawei, BYD, Foxconn and Yi'an were among the earliest domestic companies that started industrializing bulk amorphous alloys. Since 2008, BYD has opened
P.14
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It exhibited the research and development of bulk amorphous alloy die-casting equipment, and obtained the authorized invention patent for amorphous alloy die-casting equipment. In 2019, the business scope of Shanwei BYD Electronics Co., Ltd. was changed to: production and sales of amorphous materials and products. Changzhou Shijing Liquid Metal Co., Ltd., in conjunction with a number of professional die-casting equipment manufacturers, has developed two series of amorphous alloy die-casting machines for mass production and service, and currently has a supporting capacity of 50 die-casting machines. In recent years, other domestic companies have also been involved in the R&D and manufacturing of non-gold alloy die-casting equipment, but so far, it is difficult to find a large number of related casting equipment in the market.
The company is a global leader in liquid metal: Yian Technology has started the industrialization of liquid metal in 2012 and has invested more than 300 million yuan so far. It has a large-scale zirconium-based amorphous alloy production line and currently has a production capacity of 45 machines. The company launched a "production-university-research" joint project in many universities within the United Nations. In 2014, Yi'an Technology and the Songshan Lake Institute of Metal Research of the Chinese Academy of Sciences jointly established a new materials research laboratory, which can share the National (Joint) Laboratory of Materials Science of the Institute of Metals of the Chinese Academy of Sciences The equipment resources, technical resources, etc. of the company provide stronger support for the technical research and product development of the enterprise. In 2016, the capital increased to hold Yihao Metal Material Technology Co., Ltd. to promote the rapid development of the liquid metal product business and continue to improve profitability. In 2017, the Yian New Materials Research Institute was established to be responsible for the research and development of nano materials and liquid metals. In the same year, United Anke Co., Ltd. and Hong Kong Liquid Metal Co., Ltd. invested in Chenglian Liquid Metal Equipment Co., Ltd. and developed the first liquid metal die casting machine in China. In 2020, Ningde Sanxiang Liquid Metal Co., Ltd. was established in conjunction with Sanxiang New Materials to conduct research and development and production of liquid metal through technical authorization and equipment procurement.
Continue to enhance the competitiveness of amorphous alloys through the layout of formulas, processes, and equipment patents: Yian Technology currently has 192 patents, and continues to strengthen the protection of liquid metal formulas, process equipment, etc., and continues to enhance the company’s competitiveness in the liquid metal field. The company will be new in 2020. 49 granted patents were added, 4 of which involved amorphous alloys. LQMT, a subsidiary of Hong Kong Liquid Metal Co., Ltd., has a wide range of formula, process and equipment patents, and forms complementary advantages with the existing patents of Yian Technology.
The chairman invested in Liquidmetal Technologies (LQMT), integrating technology and channel resources: In 2016, Hong Kong Liquidmetal Co., Ltd. controlled by Mr. Li Yangde became a shareholder of Liquidmetal Co., Ltd. (LQMT), and Mr. Li Yangde became the chairman of the company. LQMT has been engaged in liquid metal for more than 20 years, mainly engaged in liquid metal products such as consumer electronic equipment, medical products, auto parts, and sports and leisure products. In February 2013, LQMT licensed Apple to exclusively use all patents and intellectual property rights of its amorphous metal materials in the field of consumer electronics. LQMT, a subsidiary of Hong Kong Liquid Metal Co., Ltd., has a wide range of formula patents. In 2020, the company’s patent licensing revenue is 64,000 US dollars, accounting for 6.5% of revenue. Inan Technology announced that Hong Kong Liquid Metal Co., Ltd. will meet the requirements of LQMT. Under the conditions of turning losses into profits and other conditions, LQMT shares will be transferred to Yian Technology. In 2020, LQMT's operating income will be US$990,000 and net profit will be US$2.64 million.
P.15
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Figure 19: Yian Technology's strategic layout of liquid metal
May 26, 2021
Source: Wind, Guosheng Securities Research Institute Note: As of April 28, 2021
Figure 20: The company actively deploys liquid metal formulas and process equipment patents
Patent name Patent number Applicant
A high-toughness amorphous composite material and its preparation method and
application
ZL201510780752.9 Yian Technology, Mei'an Technology
An amorphous alloy with antibacterial function ZL201510710856.2 Yian Technology, Mei'an Technology
Amorphous alloy component casting molding equipment and process CN201310639470.8
Institute of Metal Research, Chinese Academy of Sciences, Yianke
Skill
3D printing equipment of amorphous alloy CN201811428856.3 Yian Technology, Mei'an Technology
An amorphous alloy vacuum mold ZL201620680655.2 Yian Technology
An amorphous alloy production device ZL201910099593.4 Yian Technology
Source: State Intellectual Property Office, Guosheng Securities Research Institute
P.16 Please read the statement on the last page of this report carefully
May 26, 2021
Figure 21: Vacuum Die Casting Patent
Figure 22: Continuous rotary die-casting molding equipment
Source: State Intellectual Property Office, Guosheng Securities Research Institute
Source: State Intellectual Property Office, Guosheng Securities Research Institute
Accelerated expansion of production capacity through partnership investment and technology transfer: We believe that the bottleneck of production capacity is the core problem that the company’s liquid metal business needs to solve at present. The company’s existing machines cannot support large-scale production. The industrialization expansion project of alloy precision structural parts" is mainly used for the production of consumer electronic product accessories. The total investment of the project is 300 million yuan, and an annual production capacity of 890 tons will be formed after it reaches full capacity. The previous expansion plan was delayed due to the demolition and relocation along the railway, and the project was postponed to May 30, 2021. The "Amorphous Alloy R&D Center Construction Project" planned during the same period was terminated. In March 2020, Yi'an and Sanxiang Zirconium Magnesium established "Ningde Sanxiang Liquid Metal Technology Co., Ltd." with a 40%:60% foreign investment. The alloy-related patents and know-how are licensed to Ningde Sanxiang for use. Ningde Sanxiang paid a technology license fee of RMB 40 million to Yi'an Technology and Yihao Metal. At the same time, Ningde Sanxiang purchased 10 sets of two types of liquid metal equipment from Yi'an Technology to rapidly expand production capacity.
Figure 23: Estimated production capacity of amorphous alloy precision structure construction industrialization expansion project
project
Material weight (kg)
Annual output (pieces)
Single card holder
Amorphous 0.005
10,000,000
Dual card tray
Amorphous 0.005
8,000,000
Shaft
Amorphous 0.008
15,000,000
phone case
Amorphous 0.04
900,000
Camera housing
Amorphous 0.025
2,000,000
Watch case
Amorphous 0.018
750,000
Rotating bracket
Amorphous 0.0015
12,000,000
Notebook hinge bracket
Amorphous 0.012
9,000,000
Notebook fixing bracket
Amorphous 0.024
9,000,000
Wearable device accessories
Amorphous 0.002
20,000,000
other
Amorphous 0.01
20,000,000
Source: Company announcement, Guosheng Securities Research Institute
P.17
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3. Biodegradable medical magnesium alloys benefit orthopedic patients
3.1 Biodegradable medical magnesium alloys have obvious advantages in orthopedics applications
Biodegradable medical magnesium alloys have been successfully used in orthopedic implants: Magnesium and its alloys as medical biomaterials can be traced back to 1878. Edward used pure magnesium wire as a ligature to ligate blood vessels to stop bleeding; until 1900, Payr proposed to use it. Pure magnesium is used as bone material. Lambotte used pure magnesium plates to treat lower limb fractures in 1907. Early clinical application studies have found that magnesium is biologically safe and can promote bone healing; however, because magnesium is degraded too quickly in the body, fractures have not healed, and internal fixation fails. After a long period of time, magnesium and magnesium alloys Clinical research has basically stopped.
The main problem is the excessively fast degradation rate and the generation of air pockets: Magnesium and magnesium alloys may cause insufficient fixation in the early stage of the patient's recovery period due to the excessively fast degradation rate and severe degradation morphology, and thus cannot bear the fixation of the bone mass of the load-bearing part; At the same time, due to the active chemical nature of magnesium in the body, the potential is low (-2.37V vs SHE (standard hydrogen electrode)). In a liquid environment rich in Cl -, galvanic cells are easily formed between the matrix and the second phase, resulting in galvanic coupling. Corrosion and gas generation at the same time, the chemical reaction formula is as follows:
Mg+2H2O+2Cl- ?MgCl2 +H2 +2OH- With the breakthrough of smelting technology and the improvement of casting process, on the one hand, the purity of magnesium has been greatly improved, on the other hand, zinc, calcium, manganese, aluminum, rare earth and other elements are added The formation of magnesium alloys significantly improves the corrosion resistance and mechanical properties of magnesium and its alloys, so that magnesium and its alloys as biodegradable medical materials have once again attracted attention and become one of the research focuses and hotspots in the field of medical biomaterials at home and abroad.
3.1.1 Compared with traditional titanium alloy, stainless steel and other alloy materials, magnesium alloy has significant advantages
? Corrosion and degradation in the body and full absorption, avoiding secondary operations. Magnesium and magnesium alloy materials have good biocompatibility with the human body, avoiding the pain and wounds of secondary operations. This has a good application prospect for facial plastic surgery. .
? Magnesium is a macro-element in the human body and has good biocompatibility. After being implanted in the human body, magnesium bone nails can undergo dynamic degradation behavior, and its degradation products will not cause allergic reactions in the human body. Magnesium ions are the fourth largest metal in the human body. Elements, adults need to take in 300-400 mg of magnesium every day, and excessive Mg2+ can be excreted through urine. At the same time, magnesium alloy has good cell compatibility, and cells can effectively attach, diffuse and proliferate on the magnesium alloy.
? Good comprehensive mechanical properties, close to human bone tissues. Compared with traditional titanium alloys, cobalt-chromium alloys, stainless steel and other traditional alloy materials, magnesium and magnesium alloy materials have a density and elastic modulus that match human bones. It can largely avoid the stress shielding effect after implantation, that is, when two or more materials with different rigidity bear external force together, the material with higher rigidity will bear higher load, while the material with lower rigidity will bear higher load. The material only needs to bear a low load, causing stress to concentrate on the interface between the bone and the implanted bone nail, thereby reducing the stability of the bone nail and inhibiting the growth of new bone.
? Mg2+ has biological activity and accelerates the rate of bone formation
In bone repair, Mg 2+ stimulates the spinal ganglia to release calcitonin gene-related peptides, induces the production of related proteins, and promotes bone formation. Therefore, magnesium alloys are often used as medical devices for internal fixation of fractures.
? As a common metal, magnesium costs much lower than titanium alloys.
May 26, 2021
P.18
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3.1.2 High purity magnesium VS magnesium alloy: single element, stable degradation rate
? Single element, no need to consider the effects of multi-element toxicity. Compared with European rare earth magnesium bone nail products, the degradable magnesium bone internal fixation screw developed by Mei'an is made of 99.999% high-purity magnesium. Due to the single element, it avoids the influence of other elements. The impact is more stable and harmless.
? Stable degradation rate and controllable cavitation generation. Previously, rare-earth magnesium alloy bone nails have reported bone cysts, cavitation caused by excessive degradation, and joint fusion failures caused by cavitation. Compared with magnesium alloys, high purity magnesium (>99.9%) is an effective method to reduce the degradation rate. In 2013, the chief scientist of Eian Technology, Professor Zhao Dewei of Zhongshan Hospital of Dalian University, performed the world's first pure magnesium bone nail for femoral necrosis with vascularized bone flap transplantation. So far, more than 100 cases have been completed, and the treatment effect is very good. The results also show that the high-purity magnesium bone nail has an acceptable degradation rate, which not only meets the fixation requirements at the initial stage of the operation, but also because there is no obvious air pocket formation, it will not affect the fusion of the graft and the tissue. The degradation product magnesium ions will instead promote the surrounding bone The formation of the organization.
Figure 25: The first case of pure magnesium bone nail applied to femoral necrosis with vascularized bone flap transplantation Figure 26: Common joint fractures
3.2 The successful clinical trials of medical magnesium bone nails will open up the tens of billions of medical equipment market
The company's high-purity magnesium bone nails are the first to enter the clinical trial phase: In 2008, Yian Technology, with the joint research and development and help of some university professors, began to develop a magnesium preparation method with a purity of 99.999%. A wholly-owned subsidiary of Yian Technology: Dongguan Mei'an Medical Devices Co., Ltd., which has focused on the development of the medical magnesium industry for many years. At present, the clinical trials of magnesium bone nails by Mei'an Company are mainly used for avascular necrosis of the femoral head and for vascularized bone flaps. The internal fixation of the bone flap during transplantation will continue to expand the indications in the follow-up. In July 2019, the degradable magnesium internal fixation screw developed by Mei'an became the first domestically approved biodegradable biodegradable screw.
May 26, 2021
Figure 24: Magnesium is close to the mechanical properties of human bone tissue
density
Young's modulus
Human bones
1.8-2.1 g/cm3
3-20 GPa
magnesium
1.74-2 g/cm3
41-45 GPa
Titanium alloy, cobalt chromium alloy, stainless steel
>4 g/cm3
>110 GPa
Synthetic hydroxyapatite
>3 g / cm3
>70 GPa
Source: CNKI, "Research Progress in the Improvement of Medical Magnesium Alloys" Guosheng Securities Research Institute
Source: Company's official website, Guosheng Securities Research Institute
Source: National Medical Encyclopedia, Guosheng Securities Research Institute
P.19
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May 26, 2021
Metal screw is also the world's first clinical trial using pure magnesium as an implant in the body. It is currently being implemented smoothly in conjunction with nine hospitals. In May 2020, the company's biodegradable magnesium internal fixation screws obtained the EU CE certification and can be sold to the EU market. In June 2020, the company's wholly-owned subsidiary, Mei'an Medical, sold 100 samples of magnesium internal fixation screws to Georgia International Innovative Medical Services. In addition to the application of high-purity magnesium bone nails, the company is also developing high-value implant products such as bone plates made of high-purity magnesium and high-purity magnesium stents.
Figure 27: 99.999 high purity magnesium bone nail
Trauma medical consumables opened up the blue ocean market for the company: From 2013 to 2018, the sales revenue of China's trauma implant consumables market increased from 3.8 billion yuan to 7.7 billion yuan, and it is expected to reach 14 billion yuan in 2023. The main materials involved at present include stainless steel, metal alloys, medical titanium materials, inorganic non-metallic materials (hydroxyapatite, etc.), polymer materials (polyetheretherketone PEEK) and absorbable materials such as polylactic acid, while medical magnesium The alloy has excellent properties such as close to human bones, degradability, and promotion of bone repair. After successful clinical trials, it is expected to accelerate market penetration.
The aging of the population and consumption upgrade are good for the medical device market: as the age increases, the prevalence of orthopedics will be higher. In 2019, my country's population over 65 years old exceeded 170 million people, accounting for 13%, and the life expectancy of people is getting longer and longer, from 67.8 years in 1982 to 76.3 years in 2015. The penetration rate of joint surgery in my country is extremely low at 0.6%, while that in the United States is 43%. In the future, with the consumption upgrade trend, my country's orthopedic medical equipment is expected to continue to maintain high growth.
Figure 28: Market scale of trauma physiotherapy consumables field (100 million yuan) Figure 29: The proportion of my country's aging population continues to rise (million people)
Source: Company's official website, Guosheng Securities Research Institute
200
180
160
140
120
100
80 60 40 20
Population 65 years and older
Percentage of population aged 65 and over in total population
14% 12% 10% 8% 6% 4% 2%
0 0%
160
140
120
100
80 60 40 20
0
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
Trauma implant consumables market
Year-on-year
Source: Wind, Guosheng Securities Research Institute
Source: Southern Institute of Pharmaceutical Economics, Guosheng Securities Research Institute
P.20 Please read the statement on the last page of this report carefully
4. New energy vehicles support the magnesium-aluminum light alloy business sector
The profitability of the magnesium-aluminum alloy business is still under pressure and remains the company's main source of revenue: In 2020, the company's magnesium-aluminum alloy business revenue was 578 million yuan, a year-on-year decrease of 18%; the gross profit margin in 2020 was only 8.0%, which was 18.5% in 2019 dramatically drop. The company's magnesium products business revenue decreased by 20.5% year-on-year, and costs decreased by 11.3% year-on-year; aluminum product revenues decreased by 13.9% year-on-year, and costs decreased by 1.5% year-on-year. It can be seen that as market competition intensifies, the company's magnesium-aluminum alloy products will be under pressure in the future. The company needs to further reduce costs and increase efficiency, and increase the proportion of high-margin products.
4.1 Lightweight vehicles open up the magnesium-aluminum alloy market space, and new energy vehicles are expected to accelerate the lightweight process
Automobile lightweight opens up market space for magnesium-aluminum light alloys. There is still a gap between the amount of aluminum-magnesium used in bicycles in my fcountry and foreign car companies: magnesium alloys, together with aluminum alloys, have become ideal materials for lightweight vehicles due to their light weight, high specific strength and high specific rigidity. Moreover, as the lightest metal structural material, magnesium alloy is more effective than aluminum alloy in reducing weight, and the room for increasing the amount of magnesium used in bicycles is also broader than aluminum. Under the condition of equal bending rigidity, the use of aluminum alloy instead of steel can reduce the dead weight by 61%, and the magnesium alloy can achieve 74%. According to the "Overview of the Situationalization of New Energy Vehicles", for every 10% reduction in the quality of new energy vehicles, the corresponding cruising range can increase by 5%-10%, saving 15%-20% of battery costs and 20% of daily loss costs, and new energy vehicles reduce weight The demands are more urgent than traditional cars.
Figure 30: The amount of magnesium used in domestic bicycles still has a large room for growth Figure 31: Magnesium alloys have the advantages of light weight and high density
Source: Wind, Guosheng Securities Research Institute
May 26, 2021
50% 40% 30% 20% 10%
0%
45%
40%
35%
2015 2020
21% 15%
20%
High-strength steel, low-carbon steel, aluminum alloy, magnesium alloy, composite material
8% 8% 2% 2%
Source: Wind, Guosheng Securities Research Institute
P.21 Please read carefully the statement on the last page of this report
May 26, 2021
Figure 32: The amount of aluminum used in bicycles in my country (kg) is lower than the level of foreign companies Figure 33: The amount of magnesium used in bicycles in my country (kg) is lower than the level of foreign companies
160 140 120 100
80 60 40 20
0
140 110
145
150
China Japan European Union United States
16 14 12 10
8 6 4 2 0
14
3.8 1.5
9.3
China Japan European Union United States
Source: China Nonferrous Metals News, Guosheng Securities Research Institute
Source: China Automotive Materials Network, Guosheng Securities Research Institute
New energy vehicles drive the demand for new magnesium-aluminum alloy materials: How to improve the energy density ratio of power batteries, and realize the lightweight and structural safety of battery boxes, has become the first issue for new energy vehicle manufacturers to consider. The comprehensive cost performance of new materials such as magnesium-aluminum alloy is higher than that of steel, plastics and composite materials, and they are ideal materials for lightweighting new energy vehicles. Tesla Model S uses an all-aluminum body, and the weight is reduced to 2.1 tons. In order to increase the cruising range of new energy vehicles, the proportion of aluminum and magnesium alloy components may be further increased in the future.
According to data from the China Association of Automobile Manufacturers, in 2020, the production and sales of new energy vehicles will be 1.366 million and 1.367 million respectively, a year-on-year increase of 7.5% and 10.9% respectively. In October 2020, the State Council formally issued the "New Energy Vehicle Industry Development Plan (2021-2035)", which made requirements in terms of technology development and innovation, infrastructure construction, and the use of new energy vehicles in the public service sector, and clarified that by 2025, China's new energy vehicle sales accounted for about 25%.
Figure 34: my country's new energy vehicle sales and growth rate (10,000 vehicles)
250
200
150
100
50
0
2016
70% 60% 50% 40% 30% 20% 10% 0% -10%
Year-on-year sales
2017
2018 2019
2020
2021E
Source: Wind, Guosheng Securities Research Institute
The pressure of environmental protection policies has promoted the increasing demand for energy saving and emission reduction of automobiles, and it is imperative to reduce automobile weight. According to the requirements of the "Energy-saving and New Energy Vehicle Technology Roadmap", the quality of vehicle equipment in 2020 will be reduced by 10% compared with 2015, by 20% in 2025, and by 35% in 2030. The main path is to increase the proportion of high-strength steel materials, lightweight materials, and composite materials in the manufacturing of parts and components, as well as the improvement of process technology to achieve lighter body weight, lighter power transmission, and
P.22
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May 26, 2021
The purpose of lightweight chassis, thereby reducing the weight of the entire vehicle. From 1993 to 2013, the average car weight in Europe, Japan and other countries has been reduced by 25%. It is planned to reduce the average car weight by another 20%-25% in the next 10-15 years. The United States plans to achieve a 25% reduction in vehicle curb weight by 2020 compared to 2010. Many well-known foreign companies have also set lightweight phase goals. For example, Ford's lightweight goal is to use lightweight materials for new cars and trucks by 2020, and reduce the weight of a single vehicle by 110-340Kg.
4.2 Yi'an Yunhai project is completed, "realizing the Yangtze River Delta + Pearl River Delta" layout
The company is one of the earliest companies in the world to deploy large-scale magnesium-aluminum alloy die-casting equipment. There are 4200T and 3500T and other large-scale die-casting equipment. The company is committed to the research and development and production of thin-walled aluminum-magnesium alloys. It has 27-inch large-scale magnesium alloy parts. Mass production of 1.2mm thick and 14-inch notebook computer shells with a wall thickness of 0.45mm has become a leader in the industry. In addition, the company has the ability to analyze the dynamics of die-casting molds, thin-walled parts thermal shaping process and surface high-gloss spraying process, large-scale die-casting parts in-mold injection and other industry-leading processes. Subsidiary Chaohu Yi'an Yunhai has a great advantage in the integration of large-scale parts and components of new energy vehicles. It has been applied to the motors, electronic controls, battery packs, dashboards, doors and other products of new energy vehicles. As a supplier, the company has entered the supply chain of well-known international and domestic customers such as Tesla, CATL, Geely, TKP, HBA, TRW, GKN, JAC, LG, Faurecia, Continental, and Alpine.
Figure 35: The company's magnesium-aluminum alloy equipment
Magnesium aluminum alloy equipment
Production capacity
Magnesium aluminum alloy die casting machine
There are more than 100 magnesium-aluminum alloy die-casting machines, including a large 4200T magnesium-aluminum alloy die-casting machine, and several 650T imported die-casting machines are exclusively used for notebook casings.
CNC (Numerical Control Processing) Machine Imported from Japan
There are more than 300 units, of which more than 100 are dedicated to laptop computers.
Source: Company announcement, Guosheng Securities Research Institute
Figure 36: The company's auto parts products
Source: Company's official website, Guosheng Securities Research Institute
P.23
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May 26, 2021
In 2015, the company and Yunhai Metals established "Chaohu Yian Yunhai Co., Ltd.". In 2018, the company's fixed increase in the "Yian Yunhai Light Alloy Precision Die Casting Production Base Project" has a total investment of 500 million yuan. At present, the first and second phases of the project have been completed. Completed, it is expected to add new production capacity to the company: about 3.54 million laptop shells, about 7.21 million automotive light alloy die-casting parts, and about 566,000 communication base stations and elevator pedals. The three-year production rate after the completion of the construction is 30%. , 70% and 100%, after fully reaching production, it is estimated that the annual revenue will be 1 billion yuan and the annual net profit will be about 102 million yuan.
Figure 37: Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project Estimated Capacity
Target customer products
Material Weight (kg)
Annual output (pieces)
Laptop computer case
Magnesium alloy 0.15
3535488
Car steering system
Aluminum alloy 0.8
898560
steering system
Aluminum alloy 0.7
197120
Steering bracket
Magnesium alloy 1
1412023
Navigation products
Magnesium alloy 0.45
1098240
Car stereo
Aluminum alloy 0.35
1235520
battery box
Aluminum alloy 26
154440
Car door
Magnesium alloy 4
205920
dash board
Magnesium alloy 4
411840
Communication base station
Aluminum alloy 12
411840
Elevator pedal
Aluminum alloy 16
154440
Source: Company announcement, Guosheng Securities Research Institute
The establishment of a joint venture company with Yunhai Metal in Chaohu and the construction of production capacity this time have a very positive significance for realizing the strategic layout of the Yangtze River Delta, reducing material costs, and expanding and strengthening the 3C and automotive magnesium alloy business.
First, ensure the supply of raw materials and significantly reduce costs. The company is close to the Chaohu Yunhai magnesium alloy production line (with an annual output of 50,000 tons of magnesium alloys). The joint venture with Yunhai Metal can reduce the cost of raw material transportation. It can be directly supplied through molten magnesium water, eliminating the cost of magnesium alloy ingot smelting and the cost of raw materials. Oxidation consumption, finally, can also be recycled through waste magnesium to form a closed loop, further reducing costs. According to the company's preliminary calculation, the cost of magnesium alloy raw materials for the project will be reduced by about 15%-20% compared with the current one, which greatly enhances the cost advantage of the company's products. At the same time, using Yunhai Metal's existing construction land in Chaohu, the project was implemented very quickly.
Second, occupy the golden area of ??the light alloy die-casting market in the Yangtze River Delta and realize the strategic layout of "Pearl River Delta + Yangtze River Delta" dual centers. Since the establishment of the company, the place of operation has been in the Pearl River Delta region. The Yangtze River Delta region is one of the largest automobile production bases in my country. There are well-known automobile manufacturers such as SAIC, Shanghai Volkswagen, Shanghai GM, etc., and the country's most comprehensive and largest auto parts industry cluster; in Anhui Province , There are automobile manufacturers such as Chery Automobile, Jianghuai Automobile and Hefei Changan. In the field of notebook computers, this project can radiate Hefei LCFC (Lianbao, a joint venture between Lenovo Group and Taiwan Compal Group), Suzhou Pegatron (Heshuo), Shanghai HP (HP), Kunshan Wistron (Wistron), Kunshan Compal, etc. The main notebook computer assembly factory.
5. Profit forecast and investment advice
P.24
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5.1 Earnings forecast assumptions
Operating income
The core of the company's current revenue comes from the sales of core aluminum and magnesium products. As the company's current core business, it is expected to open up a broader market space for the company after its applications in the fields of medicine and automobiles are gradually promoted. At the same time, taking into account the company's own competitive advantages in segmented areas, we reasonably expect the company's operating income from 2021 to 2023 to be 11.88, 15.24, and 1.905 billion yuan, corresponding to growth rates of 25.6%, 28.3%, and 25.0%, respectively.
Gross margin
The gross profit margin of the company's magnesium-aluminum alloy products is affected by the fluctuation of the corresponding metal prices, and the gross profit margin is subject to certain volatility. We reasonably assume that the subsequent gross profit margin of the company's main operations will stabilize, and the high gross profit portion from liquid metal sales is expected to gradually increase the company's overall gross profit margin. We expect the company's gross profit margin to achieve 21.48%, 21.89%, and 22.02% in 2021-2023, respectively.
Period expense ratio Sales expense ratio: The company's sales expense ratio is expected to drop significantly in the future. The core reason is that the company's current main business has successfully docked with the core customer groups in the industry, and it is expected to form a long-term binding relationship with customers in the future, and sales expenses will reduce the erosion of profits. Management expense ratio: The company's daily expenses are mainly concentrated in management expenses. As the company's current business segments are still in a period of heavy performance, the core management team still needs to be filled as the business gradually expands. We expect the company's management expenses and revenue scale to grow at the same rate. R&D expense ratio: The company's R&D expense is mainly connected to the current core business segments. Considering that the company has formed a leading position in the subdivision field and possesses R&D advantages, and its products have been recognized by core customers at home and abroad, the subsequent R&D expense rate is expected to remain stable.
May 26, 2021
Figure 38: Forecast of company profit and main cost subjects (100 million yuan)
years
2019 2020 2021E
2022E 2023E
Magnesium products
Operating income
4.05 3.22
4.01
5.05 6.36
YOY%
25.60% -20.49% 24.60%
26.00% 26.00%
Operating cost
3.33 2.96 3.67
4.59 5.76
Gross profit
0.71 0.26 0.34
0.46 0.61
Gross profit margin (%)
17.58% 8.01% 8.45%
9.18% 9.54%
Aluminum products
Operating income
2.97 2.56
3.15
3.90 4.99
YOY%
-9.41% -13.87% 23%
24% 28%
Operating cost
2.39 2.36 2.97
3.62 4.60
Gross profit
0.58 0.20 0.18
0.28 0.39
Gross profit margin (%)
19.46% 7.85% 5.60%
7.13% 7.85%
Liquid metal
Operating income
0.73 1.23
1.50
2.20 3.10
YOY%
7.95% 68.49% 22.27%
46.67% 40.91%
Operating cost
0.66 0.5706 0.90
1.58 1.72
Gross profit
0.06 0.66 0.60
0.62 1.38
Gross profit margin (%)
8.68% 53.49% 40.00%
28.00% 44.60%
profit prediction
Operating income
10.25 9.45 11.88
15.24 19.05
YoY%
3.98% -7.77% 25.63%
28.31% 25.00%
Gross profit margin (%)
21.08% 20.85% 21.48%
21.89% 22.02%
P.25
Please read the statement on the last page of this report carefully
5.2 ????
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May 26, 2021
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??? YoY(%)
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34.22% 35.38%
????:Wind,?????????
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share price
EPS PE
20210524
2021E 2022E 2023E 2021E
2022E 2023E
300034.SZ ???? 25.43
0.57 0.76 0.98 44.61
33.46 25.95
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0.33 0.38 - 14.79
12.84 -
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1.00 1.46 1.91 19.36
13.26 10.14
600456.SH ???? 40.20
1.08 1.37 1.74 37.22
29.34 23.10
average value
29.00
22.23 19.73
300328.SZ ???? 6.34
0.06 0.08 0.11 107.36
79.99 59.08
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P.26
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May 26, 2021
Disclaimer
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P.27
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Xinrixing bites Xinping single Q3 camp sports strong
2021-06-29 19:00 Economic Daily News reporter Chen Yuxiang / Taipei Real Time Report
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New Nikko
New Nikko (3376), a major domestic bearing manufacturer, and Apple is expected to release new Macbooks and AirPods in the second half of the year. Recently, it has been speeding up to increase capacity utilization. As soon as the third quarter, the shipment momentum will be significantly stronger, which will help operations quickly recover. temperature.
The legal person further pointed out that Nippon Nippon will cooperate with the new Macbook and AirPods products in the near future to fully increase capacity utilization, which is expected to drive stronger operations in the second half of the year. It is estimated that Nissei’s net profit per share this year is 9.7 yuan, which is slightly less than last year’s net profit of 9.05 yuan per share. increase.
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The legal person estimates that MacBook shipments this year will reach 23 million units, an annual increase of 15%. In addition, AirPods is currently in a period of replacement between new and old products. The overall shipment volume in the first half of the year is estimated to be only about 25-30 million units, a year-on-year decrease of 25 to 30%. It is expected that the new Airpods will be launched in the second half of the year, and the overall shipment volume will reach 5,000. To 55 million units, an annual increase of 10 to 15%, leading to better operating conditions during peak seasons.
It is reported that the main reason for the dull operation of Nissei in the first half of the year, except for the adjustment of Apple’s inventory, the most important other components are lack of long and short materials. Therefore, even if the bearing itself has no shortage of materials, the shipment momentum will be dragged down. The shortage of materials is expected to be in the second half of the year. Improve seasonally.
In addition, in terms of folding mobile phones, since the folding frequency of folding mobile phone bearings is much larger than that of general consumer electronic products, they are components with significant specifications upgrades. Nissei has technological advantages and is expected to benefit from this trend; it is reported that Nissei is currently Mainly targeting US mobile phone customers, because Chinese mobile phone manufacturers have exclusive clauses, while Korean mobile phone manufacturers prefer Korean suppliers. However, US customers have a low probability of publishing folding phones this year and next year and will continue to track follow-up progress.
It is reported that the current existing manpower of New Nikko can no longer meet the production. In response to the order demand, it has urgently recruited 300 online operators in the Taiwan plant in the first half of this year. It is currently planning to continue to expand production this year.
New Nikko is the world's leading manufacturer of laptop bearings. Almost the top ten laptop manufacturers are its customers. It is also a major supplier of Apple AirPods charging boxes and AirPods Pro Max bearings. Xin Nikko’s share price fell slightly by 1 yuan today.
Look past your keyboards ppl…times up with another minor delay
Mmmhmmm…what’s eontec’s pps?
You were right about June with your TA, now tell me more about July/august:)
MIM overmold comes to mind, great posts thx for insight…
Via iPhone X production could make sense if an investors mind is open to it…?!
Been a long 3 year delay
Congrats!
As of March 31, 2021, the Company had $1.2 million in cash and cash equivalents and restricted cash, as well as $27.3 million in investments in debt securities. Those readily available sources of liquidity are accessible to advance the Company’s existing strategy, and/or the pursuit of an alternative strategy.
Alternative strategy…
Cant wait thx for update! We know lqmt will be buying more product from yihao this year, the timing is auspicious.
Bless - wish you all the best:)
Biogen > Alzheimer’s
I’m not worried, here for the long haul, would be nice to witness some form of investment in manufacturing from our partners, I’m sure every knows about apples secrecy, anything ‘REAL’ by some standards will be inside some form of filing of an 8k, ppl can choose to wait or go searching for this information, it’s out there.
Once lqmt can separate from China production and carry their own weight I would think then information will become more abundant.
That’s interesting, we have ashm which could be a big deal, along with mass production new products entering in July, atm they are in trial stage.
Will the first phase of LME (liquidmetal structural expansion) incorporate LQMT customers?
If so which customers?
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New Materials Industry: Entering 200 billion yuan, Dongdong is full of confidence
Xiujue Technology
20 days ago
1 Hot comments
Pick up two metal balls and lower them from the same height. The ordinary steel ball bounces for only 10 seconds and falls, while the liquid metal ball bounces for 17 seconds, which has better elasticity. According to the technical personnel of Yi'an Technology, liquid metals have the characteristics of high bending strength, high hardness, corrosion resistance, high elasticity, etc. At present, the company has built the largest liquid metal production line in China.
In recent years, the new materials industry in Dongdong has emerged. Not only has strategic scientific research platforms such as China's spargent neutron source and Songshan Lake Materials Laboratory gathered in the field of basic research, and a number of original innovation achievements have emerged. In terms of industrial development, the number of high-tech new materials increased from 169 to 1,359 in 2015-2019, and the number of high-tech workers of new materials in 2019. The total output value of the industry reached 156.994 billion yuan. The new material has become the third largest advanced manufacturing industry in Dongdong.
"Whoever has mastered the material will have the future." Wang Enge, academician of the Chinese Academy of Sciences and chairman of Songshan Lake Materials Laboratory, has been widely circulated. According to the plan, by 2025, the total output value of Dongyu New Materials Industry will exceed 200 billion yuan. This year, Dongyu built a new material industry base in Songshan Lake Eastern Industrial Park, and built a cluster of new semiconductor materials and electronic new materials, sounding the horn of development for 200 billion yuan.
Open Tencent News to see more pictures >
Songshan Lake Materials Laboratory has achieved the controllable preparation of the world's largest single crystal copper foil library with the most complete crystal surface index for the first time, and the results were selected as "China's Major Technological Progress in 2020"
The number of high enterprises has increased sevenfold.
Cultivate a number of industry leaders
From the chain of Huawei's folding screen mobile phone, to the lock of Tesla's new energy vehicles, and even aerospace, robots, medical care, environmental protection and other fields, the liquid metal of Yi'an Technology has been used. What's the magic of this liquid metal?
Yu Na, a business specialist of Yihao Metal Materials Technology Co., Ltd., a subsidiary of Yi'an Technology, said that the scientific name of liquid metal is "zirconium-based amorphous", which is an alloy. Generally speaking, the biggest advantage of liquid metal is that it has good shaping ability after melting, which makes its casting process more similar to plastic than metal, and can be more convenient to create products of various forms.
Yi'an Science and Technology Laboratory
Yu Na said: "Liquid metals have two to three times stronger than stainless steels, and production costs have decreased by 10% to 30%." The technology has been developed since 2006 and mass-produced in 2015. At present, it has established cooperative relations with Huawei, Xiaomi, OPPO, Lansi Technology, Sony, Tesla, BYD, Geely and other manufacturers.
Focusing on the research and development of liquid metals, the technical achievement of Yi'an Science and Technology, "Zr-Cu-Ni-Ag-Y Amorphous Alloy Precision Die Casting and Application Technology", has been recognized at the national level, reaching the leading domestic and international advanced level.
According to the technicians of Yi'an Technology, although liquid metals have obvious advantages, it is extremely difficult to develop and mass production. At present, there are very few large-scale production enterprises around the world. The main manufacturers are only Liquidmetal Company of the United States, as well as a few enterprises such as Yi'an Technology and Changzhou Shijing in Dongdong.
In recent years, in terms of the development of the new materials industry, Dongdong has shown a pattern of "quality rising together".
The number of high enterprises has increased rapidly. From 2015 to 2019, the number of high-tech new materials in Dongyu increased from 169 to 1,359, a more than seven-fold increase in five years, with an average annual compound growth rate of 68.4%. The quality of enterprises improved simultaneously. In 2019, there were 857 high enterprises above the scale in the field of new materials in Dongyu, accounting for 63.06 percent.
Researchers are researching new materials.
According to the Research Report on the Frontier New Materials Industry of Dongyu City, in 2019, the total industrial output value of Dongyu New Materials reached 15.6994 billion yuan, forming four key areas with distinctive characteristics, and a number of leading enterprises in the industry emerged.
In the field of third-generation semiconductor materials, Dongyu is one of the earliest cities in China to carry out the industrialization of third-generation semiconductors. It has cultivated the first domestic manufacturer of nitride substrate materials, the first silicon carbide epitaxy chip manufacturer, Skyfield semiconductor, and the world's largest supplier of graphical sapphire substrate materials. Body.
In the field of new energy materials, Dongyu has formed a large-scale lithium-ion battery manufacturing industry, with more than 1,300 upstream and downstream enterprises. In the field of electronic chemicals, around the layout of Huawei, Opper and Vivo, involving copper cladding materials, optical materials and other products, the largest copper cladding manufacturer in China, Shengyike, has emerged. Technology; In the field of advanced metal materials, Yi'an Technology, the largest liquid metal manufacturer in China.
March 200 billion
Build a cluster of semiconductor and electronic new materials
Recently, the 9th World Radar Expo in 2021 was held in Nanjing. The millimeter-wave radar high-speed high-frequency substrate displayed by Dongdong Enterprise Shengyi Technology has attracted widespread attention.
Millimeter-wave radar refers to radar that works in the 30-300GHz frequency range (1-10mm wavelength). Because of its wavelength characteristics, it can easily penetrate dust and raindrops, ensuring strong working performance under harsh conditions.
Millimeter-wave radar is like the eyes of intelligent driving cars." Zhu Yongming, a senior test engineer of Shengyi Technology, said that the printed circuit board substrate used not only needs to meet the high reliability requirements of automotive electronics, but also needs to be able to support the electrical performance application requirements of 5G and millimeter waves. The new car millimeter-wave radar substrate developed by Shengyi Technology is more stable in high and low temperature and high temperature, and better than foreign peer competition.
Production workshop of Shengyi Technology
Chen Renxi, president of Shengyi Technology Enterprise Group, said: "Copper cladding belongs to electronic basic materials. It turns out that we have a technical gap with foreign enterprises, but in recent years we have caught up with their technical level. With more than ten years of scientific research, Shengyi Technology has become the second largest copper cladding manufacturer in the world and the first in China.
Shengyi Technology's breakthrough in the field of cutting-edge new materials is a typical example of Dongdong's vigorous development of the new material industry.
According to the "Development Plan for the Key Emerging Industries of Dongdongyu City (2018-2025), Dongyu regards new materials as a key emerging industry field for development, and proposes that by 2025, the total output value of Dongyu's new materials industry should exceed 200 billion yuan.
This year, the "No. 1 Article" of the Dongyu Municipal Government focuses on creating new momentum, proposes to lay out seven strategic emerging industrial bases, build Dongyu New Materials Industrial Base in Songshan Lake Eastern Industrial Park, relying on the strong scientific research and achievement transformation ability of Songshan Lake Materials Laboratory, focusing on the development of electronic materials, advanced metal materials and polymers. Materials, new composite materials, medical materials, new energy materials, new semiconductor materials, superconducting materials, etc., to create a cluster of new semiconductor materials and new electronic materials.
Production workshop of Shengyi Technology
Fu, Secretary-General of the Industrialization Committee of Songshan Lake Materials Laboratory, believes that the research and development of new materials needs to be based on a certain industrial foundation. Dongdong has a good manufacturing production foundation, and the industrial chain is relatively perfect. For the development of the new material industry, it has a good soil environment. Dongdong regards the new materials industry as a breakthrough in development, and believes that the economy will usher in a new round of take-off.
Lin Jiang, a professor in the Department of Economics of Lingnan College of Sun Yat-sen University, believes that the current manufacturing transformation is facing many difficulties, and the advantages of production factors are gradually weakening. Dongdong develops strategic emerging industrial bases and forms the agglomeration effect of high-end industries such as new materials, which is conducive to transforming factor-driven into innovation-driven and promoting high-quality economic development.
Solve the problem of "stuck neck"
Build a good industrial development ecology
In Songshan Lake Materials Laboratory, under the reflection of yellow room lamps, the micro-processing and device platform ultra-clean laboratory lithography formed a special environment like a film dark room. The staff took a matte wafer from the workbench and put it into the lithography machine. After a moment, a submicron-level "carving" beyond the naked eye was completed.
Jia Haiqiang, a researcher at Songshan Lake Materials Laboratory, said that micronano processing is to operate and process materials at the micro level, and the spatial scale is at least below microns, or even reaches the nanometer scale. Under this scale, the traditional processing method is powerless.
If it had been put more than ten years ago, such a scene would be unimaginable in Dongdong.
According to the data of Dongyu City's Frontier New Materials Industry Research Report, Dongyu high-end key materials are highly dependent on the design and preparation of imported, mobile phones and other application terminal products upstream materials, and have been monopolized by foreign countries for a long time. For example, in 2018, Dongyu City imported 25.4448 billion yuan of primary shape plastics, which is the largest amount of imported goods.
Nowadays, with the continuous enhancement of Dongdong's source innovation ability, Dongdong's development of the new materials industry has become more and more confident to break through the problem of "stuck neck".
In terms of basic research, Dongyu has the first large scientific device of sparting neutron source in China, and set up a Songshan Lake Materials Laboratory. The laboratory's new material research results were selected as the "Top Ten Progresses in Chinese Science in 2019". In terms of common technology research and development, Dongyu introduced the third generation semiconductor research team of Peking University to form a New R&D institutions such as Dongyu Optoelectronic Research Institute of Peking University. In terms of enterprise R&D institutions, Dongyu has built a national engineering center, two key laboratories in Guangdong Province, and 96 engineering technology research centers in Guangdong Province, forming a development echelon of enterprise R&D institutions.
In addition to the problem of "stuck neck", Dongdong still has a lot of room for improvement in terms of enterprise innovation ability, industrial policy support, industrial cluster development, etc. Experts suggest that a good ecology should be built for the development of the new materials industry.
Fu You suggested that Dong You should continue to issue guiding policies, build a platform for integration, exchange and interaction among all parties, support the development of "production, learning, research and use" from the aspects of system and funds, and build a good new materials industry ecology.
Lin Jiang, a professor in the Department of Economics of Lingnan College of Sun Yat-sen University, suggested that Dongyu should build a "scientific research-industry-capital" platform, build a common technology research and development institution for the new material industry, and work with cutting-edge technology research and development institutions for new materials to form a resource allocation mechanism for the new material industry to ensure that the new material industry has continuous and effective investment. Enter. In this process, the government needs to consciously guide enterprises and launch a number of material brands with independent intellectual property rights in the field of the new material industry.
Moved on to bigger and better things like aliens
Lol…I’m no expert, sometimes I write my thoughts and it may come off as I know what I’m talking about but I really don’t;)
Out of These 5 projects 2 have been signed the main one is sanxiang material which is raw materials, the other is for China may have something to do with washers?!
#3 doesn’t specify which company is involved, however it states yi’an technology liquidmetal frame work investment which I find odd…
I’m not sure about any relation to lqmt they could be all related to China companies which will only create a bigger all round bmg market.
Hmmmm, what is really going on?
Stock code: 300328 Stock abbreviation: Yian Technology Announcement Number: 2021-006
Dongguan Yian Technology Co., Ltd.
Announcement on signing the cooperation framework agreement for precision manufacturing projects
The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosed, and there are no false records, misleading statements or major omissions.
Special Note:
1. This agreement is only a framework agreement, which is the preliminary intention of the parties to establish a cooperative relationship. The cooperation matters need to be further negotiated, promoted and implemented. There are uncertainties in the implementation process. The formal agreement signed by the parties to the cooperation shall prevail. Investors are kindly requested to pay attention to investment risks.
2. This agreement is a framework agreement, and the impact on the company's 2021 operating performance depends on the signing and implementation of subsequent formal agreements by the parties to the agreement.
3. This agreement does not constitute a connected transaction, nor does it constitute a major asset reorganization as required by the "Administrative Measures for the Major Asset Reorganization of Listed Companies".
4. The progress of the framework agreement signed by the company in the last three years
Serial number Name of framework agreement Disclosure date Progress
1
"Yian Technology and China Auto Parts Industry
Industry Co., Ltd. Strategic Cooperation Framework Agreement
August 13, 2018
In normal performance, no formal cooperation agreement has been signed yet.
2
"Gan-Shen Passenger Train (Qingxi Section) Cooperation Framework
Agreement
December 19, 2018
A formal cooperation agreement has been signed.
3
"Yian Technology Liquid Metal Project Investment Framework
Framework Agreement
July 22, 2019
In normal performance, no relevant formal agreement has been signed.
4
"Sanxiang New Materials Co., Ltd. and Yi'an
Framework Agreement on Cooperative Investment in Science and Technology
August 12, 2019
A formal cooperation agreement has been signed.
5
Quartet Cooperative Investment for Magnesium Alloy Material Project
Funding Framework Agreement
August 26, 2019
In normal performance, no formal cooperation agreement has been signed yet.
1. The basic situation of this agreement
(1) The signing of this agreement
On April 2, 2021, Zhuzhou Jinshan Science and Technology Industrial Park Management Committee (hereinafter referred to as “Management Committee” or “A
Party") and Dongguan Yian Technology Co., Ltd. (hereinafter referred to as "Yian Technology" or "Company" or "Party B") signed the "Precision Manufacturing Project Cooperation Framework Agreement" (hereinafter referred to as the "Agreement").
This agreement is only a framework agreement. According to the "Articles of Association" and other relevant regulations, it does not need to be submitted to the company's board of directors and shareholders' meeting for review. After the specific cooperation matters are clarified, the company will perform corresponding decision-making and disclosure procedures in accordance with the requirements of laws, regulations, and regulatory documents such as the Shenzhen Stock Exchange's Rules for the Listing of Stocks on the Growth Enterprise Market and the Articles of Association.
(2) The situation of the other party in this agreement
The purpose of Zhuzhou Jinshan Science and Technology Industrial Park Management Committee is to accelerate the construction and development of Zhuzhou Jinshan Science and Technology Industrial Park, promote the industrialization process of Hetang District, and achieve the goal of economic development by leaps and bounds. Zhuzhou Jinshan Science and Technology Industrial Park has a total planned area of ??nearly 43.86 square kilometers. It is located in Hetang District, the east gate of Zhuzhou City. It is adjacent to Shanghai-Kunming Expressway in the north, and the city express ring road in the east. . In 2007, Jinshan Science and Technology Industrial Park was successfully approved as the “National Torch Plan Cemented Carbide Featured Industrial Base”. In 2009, it was included in the National New Material High-Tech Industrial Base and became an important part of the rail transit and construction machinery industry cluster.
Zhuzhou Jinshan Science and Technology Industrial Park Management Committee has no relationship with the company.
2. The main content of this agreement
(1) Cooperative subject
Party A: Zhuzhou Jinshan Science and Technology Industrial Park Management Committee
Party B: Dongguan Yian Technology Co., Ltd.
(2) Cooperation content
1. Party B intends to invest in precision manufacturing projects in the jurisdiction of Party A, with a total investment of 120 million yuan. 2. This agreement involves the specific location of the project, cooperation method, cooperation period, etc.
Make it clear in the agreement. 3. This agreement is the guiding document and basis for the strategic cooperation between the two parties. The specific content shall be signed by both parties.
The formal cooperation agreement signed shall prevail.
3. Impact on the company
With the large-scale investment and construction of China's high-speed railway, subway, light rail and other rail transit, large-scale magnesium-aluminum alloy die-casting parts for rail transit car bodies will form a peak demand period with the high growth of rail transit, providing market opportunities for new material manufacturers .
Located in Central China, Zhuzhou is an important manufacturing base for automobile and rail transit industries in my country.
Development of a complete industrial chain from design to parts production, to vehicle manufacturing, and to aftermarket services. It is close to Hubei Province, a major automobile province, and has a superior location advantage. With Changzhutan as the center, covering central China, and It can be radiated to customers in the Yangtze River Delta, Pearl River Delta automobiles, rail transit vehicles and parts.
If the above investment projects are successfully implemented in the future, it will be beneficial to give full play to the company’s leading technological advantages in new materials such as liquid metal and magnesium-aluminum alloys, and to utilize Zhuzhou’s abundant local automotive and rail transportation-related industrial resources and a good supporting environment to grow the plant. Tan is the center, covering central China, and at the same time radiating to the Yangtze River Delta and the Pearl River Delta, to build a first-class liquid metal, magnesium-aluminum alloy and other new materials production and manufacturing enterprises, develop and improve the supporting chain of automobile and rail transportation related industries, and expand the automobile and rail transportation Market layout, continue to launch high-precision products of automobiles and rail transit parts that meet customer needs, increase the market share of automobiles and rail transit products, and enhance the company's comprehensive competitiveness.
4. Significant risk warning
(1) This agreement is only a framework agreement reached by the two parties through friendly negotiation, and the specific cooperation matters involved need to sign a separate formal cooperation agreement. The company will, in accordance with the relevant progress of the matters involved in this agreement, in strict accordance with the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the "Articles of Association" and other relevant regulations in a timely manner to perform the corresponding approval decision-making procedures and information disclosure obligations, please pay attention to investors investment risk.
(2) Within three months before the signing of this agreement, the company's controlling shareholder, shareholders holding more than 5% of the shares, and directors, supervisors and senior executives did not reduce the company's shares. In the next three months after the signing of this agreement, the company's controlling shareholders, shareholders holding more than 5% of the shares, and directors, supervisors, and senior executives will not release the restricted shares. As of the disclosure date of this announcement, the company has not received notification from controlling shareholders, shareholders holding more than 5% of the shares, and directors, supervisors, and senior executives who intend to reduce their shareholding in the company within the next three months. If it plans to implement a share reduction plan in the future, the company will perform its information disclosure obligations in a timely manner in accordance with relevant regulations.
5. Documents for reference
(1) The "Framework Agreement on Cooperation in Precision Manufacturing Projects" is hereby announced.
Board of Directors of Dongguan Yian Technology Co., Ltd.
April 2, 2021
So much information provided but yet they still can’t put it together and ask questions…
Enjoy the weekend big man you know what time it is;)
Maybe you can ask those questions at the ASHM
Got a few in there for 08 pls and thx:)
It’s all about liquidmetal hinge…isn’t it!?
The R&D center was delayed until Nov 2021…the wording provided by translation was ‘terminate’ R&D and use those funds &88mil RMB for LME structural parts…which yihao has initiated.
Liquidmetal expansion was initially delay to June 2023 - however when I check my notes the link is no longer on line which draws questions, they then add that LME (liquidmetal expansion) was set to begin operations in may 2021? To confuse this even more they now say it’s delayed to may 2023, they go on to say that LME R&D has been cancelled and those funds will be allocated to buying machines and property for LME structural parts, they do not give us a time frame for this however they do say that yihao will be renting machines from eontec to ‘INITIATE’ LME - I believe that the termination of the R&D center will help ‘INITIATE’ LME which is where yihao comes in play…
The only reasoning that that would make sense to me is that apple hasn’t officially committed, 2023 is the mark, and these delays all point to apple including LM in their manufacturing of products, that being said there are other companies taking advantage of lm manufacturing which is why they ‘INITIATED’ LME with allocated funding from R&D…
Going on 3 year delay from original plan, 2022 is not out yet, more to look forward to in 2021;)
Stock code: 300328 Stock abbreviation: Yian Technology Announcement No.: 2021-011
Dongguan Yian Technology Co., Ltd. on confirming related party transactions for 2020
And Announcement of Daily Related Party Transactions in 2021
The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosed, and there are no false records.
Misleading statements or major omissions.
On April 26, 2021, Dongguan Yian Technology Co., Ltd. (hereinafter referred to as the "Company" or "Yian Technology") at the 11th meeting of the fourth board of directors and the 10th meeting of the fourth board of supervisors reviewed and approved the The Proposal on Related Party Transactions in 2020 and Daily Related Party Transactions in 2021", the details are as follows:
1. Overview of related party transactions
(1) Related party transactions in 2020 (1) Related party transactions in 2020
Purchaser Yian (Hong Kong)
Limited 1 Yian Technology
Related party
Dewei Trading Co., Ltd.
Guangdong Zhongdao Creative Technology Co., Ltd.
Related party
Liquidmetal Technologies, Inc. (U.S. Liquid Metal Company)
Ningde Sanxiang Liquid Metal Technology Co., Ltd.
Ningde Sanxiang Liquid Metal Technology Co., Ltd.
Related party
Dongguan Chief Designer Intellectual Property
Services Ltd
Related transaction content
purchase materials
Design service fee
Related transaction content Sales products
Sell ??products and transfer
Let the technology
Sell ??products and transfer
Let the technology
Related party transaction content Lease office
Amount (RMB) 24,572.47
71,004.71
Amount (RMB) 2,189,071.13
9,708,316.69
29,372,850.19
Amount (RMB) 52,513.76
Dongguan Mei'an
Medical equipment has
Limited company
Guangdong Zhongdao Creative Technology Co., Ltd.
Design service fee
18,679.25
2
Seller Yihao Metal
Yihao Metal Yian Technology
Dongguan Mei'an
Medical equipment has
Limited company
Guangdong Zhongdao Creative Technology Co., Ltd.
Sales Products
1,327.43
Lessor 3 Dulwich Foundry
(2) Pricing basis Based on market prices and following fair and reasonable pricing principles, the two parties negotiate and determine the transaction price.
(2) Estimated daily connected transactions in 2021 1. Dongguan Yihao Metal Material Technology Co., Ltd., a subsidiary of the company, sells products to LQMT
(1) The company's holding subsidiary Dongguan Yihao Metal Material Technology Co., Ltd. (hereinafter referred to as "Yihao Metal") sells products to Liquidmetal Technologies, Inc. (hereinafter referred to as "LQMT") related transactions
In 2021, Yihao Metal, the company's holding subsidiary, is expected to sell products to LQMT as follows:
Seller Related party Related party transaction content Amount (RMB) Yihao Metal LQMT Sales of products 5,000,000
(2) Pricing basis Based on market prices and following fair and reasonable pricing principles, the two parties negotiate and determine the transaction price. (3) Basic information of related parties
1 Name: Liquidmetal Technologies, Inc.
2 Address: 20321 Valencia Circle, Lake Forest, CA92630, USA 3 Registered capital: USD 1,110,000.00 4 Business scope: R&D and sales of amorphous metal products 5 Establishment time: May 15, 2003
2. The company sells products to Ningde Sanxiang Liquid Metal Technology Co., Ltd.
(1) Related transactions of the company's sales of products to Ningde Sanxiang Liquid Metal Technology Co., Ltd. (hereinafter referred to as "Ningde Sanxiang")
In 2021, the company expects to sell products to Ningde Sanxiang as follows:
Seller Related party Related party transaction content Amount (RMB) Yian Technology Ningde Sanxiang Sales of products 1,000,000
(2) Pricing basis Based on market prices and following fair and reasonable pricing principles, the two parties negotiate and determine the transaction price. (3) Basic information of related parties
1 Name: Ningde Sanxiang Liquid Metal Technology Co., Ltd. 2 Address: Sanxiang Science and Technology Park, Nanyang Town, Shouning County, Ningde City, Fujian Province
3 Registered capital: RMB 100 million 4 Business scope: R&D of amorphous alloys (liquid metals), rolling processing, production, and production of rare earth metals
Sales; liquid metal technical consultation and promotion services. (Projects that are subject to approval in accordance with the law can only carry out business activities after approval by relevant departments)
5Establishment time: March 10, 2020
3. Dongguan Dewei Casting Products Co., Ltd., a wholly-owned subsidiary of the company, leases office to Dongguan Chief Designer Intellectual Property Services Co., Ltd.
(1) The company's wholly-owned subsidiary, Dongguan Dewei Casting Products Co., Ltd. (hereinafter referred to as "Dulwich Casting") leases office to Dongguan Chief Designer Intellectual Property Service Co., Ltd.
In 2021, Dulwich Foundry, a wholly-owned subsidiary of the company, is expected to lease offices to Dongguan Chief Designer Intellectual Property Services Co., Ltd. as follows:
Lessor Related party Related party transaction content Amount (RMB)
Dulwich Foundry Dongguan Chief Designer Knowledge Lease Office 100,000.00 Property Rights Service Co., Ltd.
(2) Pricing basis Based on market prices and following fair and reasonable pricing principles, the two parties negotiate and determine the transaction price. (3) Basic information of related parties
1 Name: Dongguan Chief Designer Intellectual Property Service Co., Ltd. 2 Address: Unit 210, Building D, Jilian Apartment, No. 1 Qinyuan Road, Songshan Lake High-tech Industrial Development Zone, Dongguan 3 Registered capital: 1 million RMB 4 Business scope: engaged in product trademarks, Development and design of patented technology, and provide supporting related consulting
Services; engaged in corporate management consulting and investment consulting, business consulting, economic information consulting, commodity circulation information consulting, technical consulting in the computer field, graphic design, web design, product packaging design, corporate image planning and marketing planning. (Except for restrictions, those involving national special regulations shall be handled in accordance with relevant regulations). (Projects that are subject to approval in accordance with the law can only be carried out after approval by relevant departments)
5Establishment time: May 31, 2013
4. Guangdong Zhongdao Creative Technology Co., Ltd. provides design services to Yi'an Technology (1) Guangdong Zhongdao Creative Technology Co., Ltd. provides design services to Yi'an Technology Related transactions
In 2021, Guangdong Zhongdao Creative Technology Co., Ltd. provides design services to Yian Technology for related transactions as follows:
Purchaser Related party Related party transaction content Amount (RMB)
Yian Technology Guangdong Zhongdao Creative Technology Design Service Fee 500,000.00 Co., Ltd.
(2) Pricing basis
Based on market prices and following fair and reasonable pricing principles, the two parties negotiate and determine the transaction price. (3) Basic information of related parties
1 Name: Guangdong Zhongdao Creative Technology Co., Ltd. 2 Address: Songhu Huake Industrial Incubation Park, No. 6, Gongye South Road, Songshan Lake High-tech Industrial Development Zone, Dongguan City
Room 506-5, Building 2
3 Registered capital: 10 million RMB 4 Business scope: industrial design, artistic creative design, animation design, exhibition design, advertising design,
Production and release; multimedia intelligent engineering design and construction; technology development, technology transfer, technical consultation, and technical services; corporate branding, marketing planning; organization of cultural activities; computer software and hardware research and development; network information technology development and transfer; website construction and maintenance Sculpture design and production; design, processing, manufacturing, installation and sales of industrial equipment and non-standard equipment; R&D, manufacturing and sales of electronic products, furniture, clothing, sporting goods, handicrafts, cultural and creative products; interior decoration design and construction. (Projects that are subject to approval in accordance with the law can only be carried out after approval by relevant departments)
5Establishment time: November 8, 2012
5. Yian (Hong Kong) Co., Ltd., a wholly-owned subsidiary of the company, purchases raw materials from Dulwich Trading Co., Ltd.
(1) The company's wholly-owned subsidiary Yian (Hong Kong) Co., Ltd. purchases raw materials from Dulwich Trading Co., Ltd. and related transactions
In 2021, the company's wholly-owned subsidiary Yian (Hong Kong) Co., Ltd. expects to purchase raw materials from Dulwich Trading Co., Ltd. as follows:
Purchaser Related party
Related party transaction content Procurement of raw materials
Amount (RMB) 100,000.00
Yian (Hong Kong) Co., Ltd. (2) Pricing basis
Dewei Trading Co., Ltd.
Based on market prices and following fair and reasonable pricing principles, the two parties negotiate and determine the transaction price. (3) Basic information of related parties
1 Name: Dewei Trading Co., Ltd.
2Address: RM 1003C, 10/F, PRINCE COMMERCIAL BUILDING, 150 PRINCE EDWARD ROAD WEST, KOWLOON, HONG KONG
3 Registered capital: 15,000,000 Hong Kong dollars 4 Business scope: general trade
5Establishment time: November 22, 2000
2. Approval procedures
On April 26, 2021, the 11th meeting of the 4th Board of Directors and the 10th meeting of the 4th Board of Supervisors reviewed and approved the Proposal on Confirming Related Party Transactions in 2020 and Estimated Daily Related Party Transactions in 2021. When the Board of Directors deliberated on the proposal, related directors avoided voting, and independent directors issued pre-approved opinions and independent opinions. For details, please refer to the relevant announcement published on the GEM information disclosure website designated by the China Securities Regulatory Commission. According to the "Shenzhen Stock Exchange's Rules for the Listing of Stocks on the Growth Enterprise Market", the "Articles of Association" and other relevant regulations, the above proposals do not need to be submitted to the company's general meeting of shareholders for deliberation.
3. The purpose of related party transactions and the impact on the company
The company's related party transactions in 2020 and the daily related party transactions that are expected to occur in 2021 are all necessary for the company's normal operations and are conducive to the company's business development. Related transactions between the company and the above-mentioned related parties follow the principle of fairness and are carried out independently in accordance with the principle of marketization. There is no harm to the interests of the company and other shareholders, and it will not affect the independence of the company.
4. The pre-approved opinions and independent opinions of independent directors, opinions of the board of supervisors, and verification opinions issued by sponsors
(1) Prior approval opinions of independent directors
1. The company's 2020 related party transactions and 2021 daily related party transactions are expected to be necessary for the company's normal production and operation. The transaction pricing is fair and reasonable. There is no situation that harms the company and other shareholders, especially the interests of small and medium shareholders, and will not affect the company's independence , It will not affect the company's ability to continue operations.
2. We have no objection to the company's 2020 related-party transactions and 2021 daily related-party transactions, and unanimously agree to submit the above matters to the eleventh meeting of the company's fourth board of directors for deliberation.
(2) Independent opinions of independent directors
1. We have previously recognized the company's 2020 related party transactions and the daily related party transactions expected to occur in 2021 and agreed to submit them to the board of directors for deliberation.
2. The company's 2020 related party transactions and the daily related party transactions expected to occur in 2021 are necessary for the company's normal production and operation, and the transaction pricing is fair and reasonable. There is no situation that harms the interests of the company and other shareholders, especially small and medium shareholders, and will not affect the company's Independence will not affect the company's ability to continue operations.
3. The company's 2020 related party transactions and the daily related transactions expected to occur in 2021 have been completed by the company.
The 11th meeting of the 4th Board of Directors and the 10th meeting of the 4th Board of Supervisors were reviewed and approved. Related directors have abstained from voting. The convening, convening, review and voting procedures of the meeting are in compliance with relevant laws and regulations and the Articles of Association.
We have no objection to the company's 2020 related party transactions and 2021 daily related party transactions. (3) Opinions of the Board of Supervisors
The board of supervisors verified that the company's 2020 related party transactions and 2021 daily related party transactions are expected to be
Necessary for the company’s normal production and operation, and the decision-making procedures comply with relevant laws, regulations and the "Articles of Association" and other relevant
It stipulates that the price of connected transactions is fair and reasonable, and there is no situation that harms the interests of the company and shareholders, especially small and medium shareholders.
shape.
(4) Opinions of the sponsor
After verification, the sponsor believes that the company's 2020 related-party transactions and expected daily related transactions for 2021 have been reviewed and approved by the board of directors and the board of supervisors, and independent directors have issued prior approval opinions and independent opinions on this. The content and approval procedures of this related party transaction are in compliance with the "Shenzhen Stock Exchange's Growth Enterprise Market Stock Listing Rules" and other relevant regulations. The estimated amount of the company's daily related party transactions in 2021 meets the actual needs of the company's operations, and there is no harm to the company's shareholders, especially small and medium shareholders The situation of interest. Therefore, the sponsor has no objection to Yian Technology's 2020 related-party transaction confirmation and 2021 daily related-party transactions.
5. Documents for reference
(1) "Resolutions of the 11th Meeting of the Fourth Board of Directors of Dongguan Yian Technology Co., Ltd." (2) "Resolutions of the 10th Meeting of the Fourth Board of Supervisors of Dongguan Yian Technology Co., Ltd." (3) "Dongguan Yian Technology Co., Ltd. Independent Directors of Science and Technology Co., Ltd. About the 11th Meeting of the Company's Fourth Board of Directors
Opinions on Prior Approval of Related Matters" (4) "Independent Directors of Dongguan Yian Technology Co., Ltd. Regarding the Eleventh Meeting of the Fourth Board
Independent Opinions on Discussing Related Matters" (5) "China Securities Co., Ltd. Regarding Dongguan Yian Technology Co., Ltd.'s 2020
The status of related party transactions and the expected verification opinions on daily related party transactions in 2021 are hereby announced.
Board of Directors of Dongguan Yian Technology Co., Ltd.
April 26, 2021
Stock code: 300328 Stock abbreviation: Yian Technology Announcement Number: 2021-013
Dongguan Yian Technology Co., Ltd. Announcement on the extension of some of the company's raised capital investment projects
The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosed, and there are no false records, misleading statements or major omissions.
Dongguan Yian Technology Co., Ltd. (hereinafter referred to as the "Company") held the 11th meeting of the 4th Board of Directors and the 10th Meeting of the 4th Board of Supervisors on April 26, 2021. "The Proposal for Extension of Investment Projects", the relevant matters are now announced as follows:
1. Basic situation of raised funds
Approved by the China Securities Regulatory Commission on Approval of the Non-public Issuance of Shares by Dongguan Yian Technology Co., Ltd. (Zheng Jian Ke [2017] No.1872), the company non-publicly issued 50,000,000 RMB ordinary shares (A shares), and issued The price is 8.60 yuan per share, and the total amount of raised funds is 430,000,000.00 yuan. After deducting various issuance expenses of 10,115,602.58 yuan, the net amount of raised funds is 419,884,397.42 yuan. On February 26, 2018, Tianzhi International Certified Public Accountants (special general partnership) verified the capital availability of this non-public issuance of shares and issued Tian Vocational Zi [2018] No. 6138 "Capital Verification Report". The raised funds have all been deposited in the special account management of raised funds established by the company.
2. The situation of investment projects with raised funds
The ``Preplan for the Company's Non-public Issuance of Stocks (Second Revised Draft)'' disclosed the investment projects of this non-public issuance of stocks and the actual amount of funds invested so far are as follows:
Item name
1 Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project
2 Industrialization Expansion Project of Amorphous Alloy (Liquid Metal) Precision Structural Parts
3 Amorphous alloy (liquid metal) R&D center construction project
total
Commitment to project investment, the actual raised funds have reached the actual investment so far
Total (ten thousand yuan) Amount (ten thousand yuan) Amount of raised funds (ten thousand yuan)
25,911.00
26,505.00
12,584.00
65,000.00
16,737.88
17,121.60
8,128.96
41,988.44
16,850.20
15,336.63
7.44
32,194.27
3. The specific situation of the postponement of investment projects with some raised funds
Although the fund-raising investment project has undergone sufficient feasibility demonstration in the early stage, it was affected by many factors in the actual implementation process and could not reach the expected usable state within the planned time. Based on the implementation progress, actual construction situation and market development prospects of the investment projects with raised funds, the company decided to postpone the following investment projects with raised funds after careful research and in order to protect the interests of all shareholders and the company.
Item name
Reach the scheduled time before adjustment, and reach the preset time after adjustment. Use time
1 Expansion of the industrialization of amorphous alloy (liquid metal) precision structural parts May 31, 2021 May 30, 2023 Production project
Fourth, the main reasons for the postponement of investment projects with some raised funds
The actual amount of funds raised in the construction project of the amorphous alloy (liquid metal) R&D center is 81,289,600 yuan. Up to now, the actual amount of funds raised in the construction project of the amorphous alloy (liquid metal) R&D center is 74,400 yuan, and the remaining amount of funds raised Including interest income was 88,681,100 yuan.
In order to meet the needs of more companies for liquid metal materials, expand the scale of the company's liquid metal industry, and promote the development of the liquid metal industry, the company intends to include the remaining amount of funds raised for the construction of the amorphous alloy (liquid metal) R&D center project with interest income of RMB 88,681,100. All used for the industrialization expansion project of amorphous alloy (liquid metal) precision structural parts to build new plants and purchase equipment, and terminate the construction of amorphous alloy (liquid metal) R&D center; at the same time, use amorphous alloy (liquid metal) precision structural parts The implementation method of the industrialized production expansion project has changed from a certain transformation of the existing production workshop, the purchase of related equipment to a new plant and the purchase of related equipment, and the adjustment of the investment amount of some items in the project. Amorphous alloy (liquid metal) precision structural parts industrialization expansion project The new factory building involves many links such as site selection, design, construction, decoration, and completion acceptance. It takes a long time. In addition, the purchase of related equipment and the installation and commissioning after the equipment purchase are completed. , Trial operation, etc. will take some time. In order to ensure the quality of the new plant and the efficiency of the use of related equipment, reduce the risk of using raised funds, and protect the interests of the company and all shareholders, after careful research and demonstration, the company plans to postpone the industrialization expansion project of amorphous alloy (liquid metal) precision structural parts.
V. The impact of the extension of investment projects with some raised funds on the company
The extension of the industrialization expansion project of amorphous alloy (liquid metal) precision structural parts is due to the company’s
A prudent decision to implement a change. The project implementation subject, construction site, total investment amount, end use
The route has not changed, and there is no disguised change in the investment direction of the raised funds and damage to the interests of other shareholders.
It has a substantial impact on the implementation of investment projects with raised funds. The precision structure of amorphous alloy (liquid metal) this time
The postponement of the production expansion project of parts industrialization will not adversely affect the company’s normal production and operation, which is in line with the company’s long-term development
planning. The company will strengthen the supervision of the construction progress of the project to ensure that the project is constructed according to the new plan to improve
Benefits of the use of raised funds.
6. Special opinions
(1) Opinions of independent directors
The postponement of the industrialization expansion project of amorphous alloy (liquid metal) precision structural parts is a prudent decision made by the company based on the change in the implementation of the project. It complies with the "Administrative Measures on the Use of Funds Raised by the Company" and other relevant regulations, and there is no disguised change The situation where the raised funds are invested in and the interests of shareholders are harmed. The above matters have fulfilled the necessary examination and approval procedures, and are in compliance with the "Company Law", the "Shenzhen Stock Exchange's Growth Enterprise Market Stock Listing Rules", "Shenzhen Stock Exchange's Growth Enterprise Market Listed Companies Standard Operation Guidelines" and other laws and regulations, regulatory documents and "Company Regulations. Therefore, all independent directors unanimously agreed that the company's amorphous alloy (liquid metal) precision structural parts industrialization expansion project was postponed.
(2) Opinions of the Board of Supervisors
The company’s industrial expansion project for amorphous alloy (liquid metal) precision structural parts is postponed, and there is no disguise
Changing the use of raised funds and damaging the interests of shareholders has not violated the customs of the China Securities Regulatory Commission and the Shenzhen Stock Exchange.
The relevant regulations on the management of funds raised by listed companies are in line with the interests of the company and all shareholders, and are beneficial to the company’s directors.
Far development. Therefore, the company’s board of supervisors agreed to the industrial expansion project of amorphous alloy (liquid metal) precision structural parts
extension.
(3) Sponsor's verification opinions
After verification, China Securities Co., Ltd. believes that: the company's amorphous alloy (liquid metal) refined
The postponement of the dense structure industrialization expansion project is a cautious decision made by the company based on the change in the implementation of the project.
There is no disguised change in the investment direction of raised funds and damage to the interests of other shareholders, and no investment in raised funds will be
The implementation of the project has a substantial impact. The industrial expansion project of amorphous alloy (liquid metal) precision structural parts
The extension will not adversely affect the company's normal production and operation, and is in line with the company's development strategy. The company will strengthen the project
The supervision of the construction progress of the project to ensure that the project is constructed according to the new plan to improve the efficiency of the use of raised funds.
7. Documents for reference
(1) "Resolutions of the 11th Meeting of the Fourth Board of Directors of Dongguan Yian Technology Co., Ltd." (2) "Resolutions of the 10th Meeting of the Fourth Board of Supervisors of Dongguan Yian Technology Co., Ltd." (3) "Dongguan Yian Technology Co., Ltd. Independent Directors of Science and Technology Co., Ltd. About the 11th Meeting of the Company's Fourth Board of Directors
Independent opinions on related matters"
(4) "Verification Opinions of China Securities Co., Ltd. Regarding the Extension of Part of the Fund-raising Investment Project of Dongguan Yian Technology Co., Ltd."
Special announcement.
Board of Directors of Dongguan Yian Technology Co., Ltd.
April 26, 2021
China Securities Co., Ltd.
Regarding the extension of part of the investment project of Dongguan Yian Technology Co., Ltd. raised funds
Review opinion
China Securities Co., Ltd. (hereinafter referred to as "China Securities Co., Ltd." or "sponsor"), as the sponsor of Dongguan Yian Technology Co., Ltd. (hereinafter referred to as "Yian Technology" or "Company") for non-public issuance of stocks, According to the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing", the "Guidelines for the Sponsorship of Listed Companies on the Shenzhen Stock Exchange", the "Shenzhen Stock Exchange Rules for the Listing of Stocks on the Growth Enterprise Market", and the "Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange's Growth Enterprise Market", etc. The requirements of laws, regulations and regulatory documents have carefully checked the postponement of some of the company's fund-raising investment projects. The details are as follows:
1. The situation of raised funds and investment projects
Approved by the China Securities Regulatory Commission on Approval of the Approval of the Non-Public Issuance of Shares by Dongguan Yian Technology Co., Ltd. (Zheng Jian Ke [2017] No.1872), the company non-publicly issued 50,000,000 RMB ordinary shares (A shares) and issued The price is 8.60 yuan per share, and the total amount of raised funds is 430,000,000.00 yuan. After deducting various issuance expenses of 10,115,602.58 yuan, the net amount of raised funds is 419,884,397.42 yuan. On February 26, 2018, Tianzhi International Certified Public Accountants (special general partnership) verified the availability of funds for this non-public issuance of shares and issued Tian Vocational Zi [2018] No. 6138 "Capital Verification Report". All raised funds have been deposited in the special account management of raised funds established by the company.
The ``Preplan for the Company's Non-public Issuance of Stocks (Second Revised Draft)'' disclosed the investment projects of the non-public issuance of stocks and the actual amount of funds invested so far are as follows:
Commitment project investment serial number project name total (ten thousand yuan)
1 Yi'an Yunhai Light Alloy Precision Die Casting 25,911.00 Production Base Project
2 Amorphous alloy (liquid metal) precision junction 26,505.00 Component industrialization expansion project
3 Research and development of amorphous alloy (liquid metal) 12,584.00 Heart construction project
Total 65,000.00
Actual funds raised
Amount in place (ten thousand
yuan)
16,737.88
17,121.60
8,128.96
41,988.44
As of now actual
Invest in raised funds
Amount (ten thousand yuan)
16,850.20
15,336.63
7.44
32,194.27
2. The specific situation of the postponement of some fund-raising projects
Although the fund-raising investment project has undergone sufficient feasibility demonstration in the early stage, it was affected by many factors in the actual implementation process and could not reach the expected usable state within the planned time. Based on the implementation progress, actual construction situation and market development prospects of the investment projects with raised funds, the company decided to postpone the following investment projects with raised funds after careful research and in order to protect the interests of all shareholders and the company.
Serial number
1
project name
Industrialization of Amorphous Alloy (Liquid Metal) Precision Structural Parts
Expansion project
Achieved before adjustment
Use state time
May 31, 2021
Reached after adjustment
Available state time
May 30, 2023
3. The main reasons for the postponement of investment projects with some raised funds
The actual amount of funds raised in the construction project of the amorphous alloy (liquid metal) R&D center is 81,289,600 yuan. Up to now, the actual amount of funds raised in the construction of the amorphous alloy (liquid metal) R&D center is 74,400 yuan, and the remaining amount of funds raised Including interest income was 88,681,100 yuan.
In order to meet the needs of more companies for liquid metal materials, expand the scale of the company's liquid metal industry, and promote the development of the liquid metal industry, the company plans to include the remaining amount of funds raised for the construction of the amorphous alloy (liquid metal) R&D center project with interest income of RMB 88,681,100. All used for the industrial expansion project of amorphous alloy (liquid metal) precision structural parts to build new plants and purchase equipment, and terminate the construction of amorphous alloy (liquid metal) R&D center; meanwhile, use amorphous alloy (liquid metal) precision structural parts The implementation method of the industrialized production expansion project was changed from a certain transformation of the existing production workshop, the purchase of related equipment to a new plant and the purchase of related equipment, and the adjustment of the investment amount of some items in the project. Amorphous alloy (liquid metal) precision structural parts industrialization expansion project The new factory building involves many links such as site selection, design, construction, decoration, and completion acceptance. It takes a long time. In addition, the purchase of related equipment and the installation and commissioning after the equipment purchase are completed. , Trial operation, etc. will take a certain amount of time. In order to ensure the quality of the new plant and the efficiency of the use of related equipment, reduce the risk of using raised funds, and protect the interests of the company and all shareholders, after careful research and demonstration, the company intends to postpone the industrialization expansion project of amorphous alloy (liquid metal) precision structural parts.
Fourth, the impact of the extension of investment projects with some raised funds on the company
The extension of the industrialization expansion project of amorphous alloy (liquid metal) precision structural parts is based on the company’s
A prudent decision made to change the project implementation method. The project implementation entity, construction location, total investment amount, and final use have not changed, and there is no disguised change in the investment direction of the raised funds and damage to the interests of other shareholders, and will not have a substantial impact on the implementation of the raised funds investment project. The postponement of the industrial expansion project of amorphous alloy (liquid metal) precision structural parts will not adversely affect the company's normal production and operation, and is in line with the company's long-term development plan. The company will strengthen the supervision of the construction progress of the project to ensure that the project is constructed according to the new plan in order to improve the efficiency of the use of raised funds.
V. Sponsor's verification opinions
Upon verification, the sponsor believes that:
The delay of the company’s industrialization expansion project for amorphous alloy (liquid metal) precision structural parts is a cautious decision made by the company based on the change in the implementation of the project. There is no disguised change in the investment direction of the raised funds and damage to the interests of other shareholders. It will have a substantial impact on the implementation of investment projects with raised funds. The postponement of the industrial expansion project of amorphous alloy (liquid metal) precision structural parts will not adversely affect the company's normal production and operation, which is in line with the company's development strategy. The company will strengthen the supervision of the construction progress of the project to ensure that the project is constructed according to the new plan to improve the efficiency of the use of raised funds.
(No text below)
(There is no text on this page, and it is the signature page of the "Verification Opinions of China Securities Co., Ltd. Regarding the Extension of Part of the Investment Projects of Dongguan Yian Technology Co., Ltd.")
Signature of sponsor representative:
He Xinmiao Zhang Yu
CITIC Construction Investment Securities Co., Ltd. Year Month Day
No that’s R&D
Table of Contents Annual Storage and Use of Raised Funds Assurance Report 1
0
Annual storage and use of raised funds verification report
All shareholders of Dongguan Yian Technology Co., Ltd.:
Tian Vocational Word [2021] No. 18544-2
We reviewed the attached Dongguan Yian Technology Co., Ltd. (hereinafter referred to as "Yian Technology") "Special Report on the Deposit and Use of Funds Raised by Non-Public Development Banks in 2020".
1. Responsibilities of management
The responsibility of Yian Technology’s management is to provide true, legal and complete relevant information, and compile the “Storage and Use of Proceeds from Non-public Issuance of Stocks in 2020” in accordance with the “Guidelines for the Standard Operation of Listed Companies on the Shenzhen Stock Exchange’s Growth Enterprise Market” and relevant announcement formats. "Special Report on the Situation" and ensure that its content is true, accurate, and complete, and there are no false records, misleading statements or major omissions.
2. Responsibilities of Certified Public Accountants
Our responsibility is to perform the attestation business in accordance with the "Other Attestation Services Standards for Certified Public Accountants of China No. 3101—Assurance Services Other than Auditing or Reviewing Historical Financial Information". The standard requires us to plan and execute attestation work in order to obtain reasonable assurance that there is no material misstatement of the information of the attestation object. During the verification process, we implemented procedures that we deem necessary, including checking accounting records. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for issuing assurance opinions.
3. Assurance conclusion
We believe that Yian Technology’s "Special Report on the Deposit and Use of Proceeds from Non-public Issuance of Stocks in 2020" was prepared in accordance with the "Guidelines for the Standard Operation of Listed Companies on the Shenzhen Stock Exchange’s Growth Enterprise Market" and relevant announcement formats, and is fairly reflected in all major aspects. The storage and use of the funds raised by Yian Technology in 2020 are reviewed.
4. Restrictions on report users and purpose of use
This attestation report is only for the disclosure purpose of Yian Technology's 2020 annual report and shall not be used for any other purpose. We agree that this attestation report is a necessary document for Yian Technology's 2020 annual report and should be submitted together with other documents.
1
[No content on this page]
Beijing China
April 26, 2012
Chinese Certified Public Accountant:
Chinese Certified Public Accountant:
2
Board of Directors of Dongguan Yian Technology Co., Ltd.
Special report on the deposit and use of funds raised from non-public issuance of stocks in 2020
1. Basic situation of raised funds
(1) The actual amount of funds raised and the time when the funds are received
Approved by the China Securities Regulatory Commission on Approval of the Non-Public Issuance of Shares of Dongguan Yian Technology Co., Ltd. (Zheng Jian Li [2017] No.1872), Dongguan Yian Technology Co., Ltd. (hereinafter referred to as the "Company" or "Yi An Technology Co., Ltd." The number of non-publicly issued RMB ordinary shares (A shares) of “An Technology” or “the Company” does not exceed 50 million shares. Underwritten and sponsored by the underwriter, China Securities Co., Ltd., in February 2018, it non-publicly issued 50,000,000 RMB ordinary shares (A shares) to specific investors at an issue price of RMB 8.60 per share. The total amount of funds raised from this issuance is RMB 430,000,000.00, and the total amount of funds raised after deducting RMB 9,000,000.00 for underwriting and sponsorship costs is RMB 421,000,000.00. The underwriter, China Securities Co., Ltd., was remitted to Everbright Bank Shenzhen on February 22, 2018 Longhua Sub-branch (78190188000118303) was RMB 171,324,565.00, Shenzhen Longhua Sub-branch of China Everbright Bank (78190188000118564) was RMB 168,334,395.00, and Shenzhen Longhua Sub-branch of China Everbright Bank (78190188000118482) was RMB 81,341,040.00. In addition, audit fees, attorney fees and information disclosure fees and other issuance costs of RMB 1,115,602.58 are deducted, and the actual useable funds raised are RMB 419,884,397.42. The above-mentioned raised funds have been verified by Tianzhi International Accounting Firm (special general partnership) and issued by it. Vocational word [2018] No. 6138 capital verification report.
(2) Amount used this year and balance at the end of the year
As of December 31, 2020, the amount used by the company in previous years, the amount used this year and the balance are as follows:
Item
Amount (RMB)
430,000,000.00 10,115,602.58 419,884,397.42 192,008,103.34 105,741,513.03 72,942,176.50 13,250,013.81 74,400.00 2,550.45
A total of funds raised on February 22, 2018, deduction of issuance costs
Net funds raised
Less: used in 2018
Among them: Replacement of self-raised funds that have been invested in fund-raising projects in advance. Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project Amorphous Alloy (Liquid Metal) R&D Center Construction Project
Less: 2018 handling fee and account maintenance fee
3
Item
Add: 2018 interest income
Less: Used in 2019. Of which: Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project Amorphous Alloy (Liquid Metal) R&D Center Construction Project
Less: 2019 handling fee and account maintenance fee
Add: 2019 interest income
Balance of funds raised on December 31, 2019
Less: Used in 2020Among them: Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project Amorphous Alloy (Liquid Metal) R&D Center Construction Project Reduction: 2020 Annual Handling Fee And account maintenance fees
Add: 2020 interest income
Balance of funds raised on December 31, 2020
2. Storage and management of raised funds
Amount (RMB)
5,021,892.47 70,675,962.19 28,398,253.76 42,277,708.43
5,014.03 6,144,861.43 168,359,521.31 46,015,881.98
46,015,881.98
7,474.96 4,441,029.99 126,777,194.36
In order to standardize the management and use of raised funds, improve the efficiency and effectiveness of the use of funds, and protect the interests of investors, the company has formulated the "Measures for the Management of Raised Funds", which specifically clarifies the storage and use of raised funds. Provisions. During the reporting period, the company managed the raised funds in strict accordance with the regulations of the China Securities Regulatory Commission, the Shenzhen Stock Exchange on the use of raised funds and the "Administrative Measures on Company Raised Funds". On March 13, 2018, the company, its sponsor China Securities Co., Ltd. and China Everbright Bank Co., Ltd. Shenzhen Longhua Sub-branch signed the "Tripartite Supervision Agreement on Raised Funds" (hereinafter referred to as the "Tripartite Supervision Agreement"). On May 7, 2018, the company held the 22nd meeting of the third board of directors. It reviewed and approved the "Proposal on the Company Opening a Special Deposit Account for Raised Funds", and agreed to open a special account for raised funds to deposit funds. Funds raised for the capital increase of Yunhai. On May 14, 2018, Yian Technology, Yian Yunhai, China Construction Bank Co., Ltd. Chaohu Branch, and China Securities Co., Ltd. signed the "Four-party Supervision Agreement on Raising Funds." On April 3, 2019, the company, the sponsor, China Securities Co., Ltd., and China Everbright Bank Co., Ltd. Shenzhen Huanggang Sub-branch re-signed the "Tripartite Supervision Agreement on Raised Funds" (hereinafter referred to as the "Tripartite Supervision Agreement"). The special fund-raising account originally opened by Yian Technology at China Everbright Bank Co., Ltd. Shenzhen Longhua Sub-branch was changed to China Everbright Bank Co., Ltd. Shenzhen Huanggang Sub-branch. During the reporting period, the company did not violate the “Supervisory Agreement”, change the use of raised funds, the controlling shareholders, actual controllers, or misappropriate the raised funds in actual performance.
4
As of December 31, 2020, the storage status of the raised funds is listed as follows:
Bank name
China Construction Bank Chaohu Development Zone Sub-branch China Everbright Bank Shenzhen Huanggang Sub-branch China Everbright Bank Shenzhen Huanggang Sub-branch China Everbright Bank Shenzhen Huanggang Sub-branch China Everbright Bank Shenzhen Huanggang Sub-branch
account number
34050177610800000741 78190188000118303 78190188000118564 78190188000118482 39070181000108352
Account type Stored amount (yuan)
Special account for raised funds 2,573.81 Special account for raised funds 8,731,088.95 Special account for raised funds 4,569.50 Special account for raised funds 88,038,962.10 Seven-day notice deposit 30,000,000.00
—— —— 126,777,194.36 3. Actual use of funds raised this year
(1) The use of funds for fundraising projects
The company uses the raised funds strictly in accordance with the "Procedures for the Management of Raised Funds". As of December 31, 2020, the actual use of raised funds is detailed in the attached table: Contrast Table for the Use of Raised Funds.
(2) Early investment and replacement of fundraising projects
The company has disclosed the investment and progress of the raised funds in the "Preplan for Non-public Issuance of Stocks (Second Revised Draft)". After the raised funds are in place, the raised funds will be used to replace the pre-invested self-raised funds, as of April 24, 2018 , The company has invested 67,161,719.03 yuan and 38,579,794.00 yuan of self-raised construction funds for the raised funds of the project "Yian Yunhai Light Alloy Precision Die Casting Production Base Project" and "Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project". On May 7, 2018, as approved by the 22nd meeting of the third session of the company's board of directors, the company used raised funds to replace the above-mentioned self-raised funds that have been invested in fundraising projects in advance.
Fourth, change the use of funds for investment projects with raised funds
(1) Postponement of investment projects with raised funds
Due to the influence of many factors in the actual implementation process, the raised funds investment project could not reach the expected usable status within the planned time. On April 24, 2020, the company held the fourth meeting of the fourth board of directors and the fourth meeting of the fourth board of supervisors. ) The "precision structural parts industrialization expansion project" will be changed from June 1, 2020 to May 31, 2021, and the "amorphous alloy (liquid metal) R&D center construction project" will reach the expected usable status. The time has been changed from December 1, 2020 to November 30, 2021.
Total balance of raised funds
5
(2) Change the implementation methods of some fund-raising projects
On May 18, 2020, the company held the 2019 Annual General Meeting of Shareholders, reviewed and approved the "Proposal on Changing the Implementation Methods of Some Fund-raising Projects", and agreed to implement non-compliance in the existing plant area in Yinquan Industrial Zone, Qingxi Town, Dongguan City, the original project construction site. At the same time as the industrial expansion project of crystal alloy (liquid metal) precision structural parts, part of the equipment of the industrial expansion project of amorphous alloy (liquid metal) precision structural parts was leased to the holding subsidiary Dongguan Yihao Metal Material Technology Co., Ltd. ( Hereinafter referred to as "Yihao Metal"), Yihao Metal uses the leased equipment for the above-mentioned fund-raising projects to implement the industrial expansion project of amorphous alloy (liquid metal) precision structural parts at its premises.
5. Problems in the use and disclosure of raised funds
The company uses raised funds in strict accordance with the "Guidelines for the Normative Operation of Listed Companies on the Shenzhen Stock Exchange's Growth Enterprise Market" and the "Administrative Measures for Companies Raised Funds". There is no illegal deposit and use of raised funds, and disguised changes in the investment direction of raised funds and damage to shareholders The situation of interest. The company has disclosed the use and storage of raised funds in a timely, true, accurate and complete manner in accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange.
Attachment 1: Comparison table for the use of raised funds
6
Board of Directors of Dongguan Yian Technology Co., Ltd. April 26, 2021
attachment1
Prepared by: Dongguan Yian Technology Co., Ltd.
Total amount of funds raised During the reporting period, the total amount of funds raised for changes in use, the cumulative total amount of funds raised for changes in use, the proportion of the total amount of funds raised for changes in cumulative use
Commitment to investment projects
2. Yian Yunhai light alloy precision die casting production base project 3. Amorphous alloy (liquid metal) R&D center construction project
total
41,988.44
Total funds raised this year
The total amount of funds raised has been invested
Amount unit: RMB 10,000
4,601.59 30,870.00
Dongguan Yian Technology Co., Ltd. Comparison table for the use of raised funds Deadline: December 31, 2020
Commitment to investment projects and
Over-raised funds to invest
Has it changed
More items
(Including part
change)
Total investment commitments of raised funds
Adjusted total investment (1)
Cumulative investment amount as of the end of the period (2)
Investment progress as of the end of the period (%) (3) = (2)/(1)
The project reaches the target
Use status date
Benefits realized this year
Whether to achieve the expected benefit
Project feasibility
Does it happen
Major changes
1. Production expansion project for the industrialization of precision structural parts of amorphous alloy (liquid metal)
26,505.00
17,121.60
14,012.34
81.84%
May 31, 2021
-149.46
no
no
25,911.00 12,584.00 65,000.00
16,737.88 8,128.96 41,988.44
Amount invested this year
4,601.59
4,601.59
16,850.22 7.44 30,870.00
100.67%
0.09% November 30, 2021
-1,667.87 No No Not Applicable No
-1,817.33
June 2, 2019
7
Circumstances and reasons for not reaching the planned schedule or expected benefits
1. Amorphous alloy (liquid metal) precision structural parts industrialization expansion project and amorphous alloy (liquid metal) R&D center construction project. Due to the new Ganzhou-Shenzhen railway passenger dedicated line construction project, it passes through some of the company's factories, the people of Qingxi Town, Dongguan City The government needs to expropriate part of the company's land and buildings on the ground. In order to avoid the risk of being demolished just after implementation or for a period of time, the government decided to postpone it.
2. The industrial expansion project of amorphous alloy (liquid metal) precision structural parts belongs to the construction period and has not yet achieved the expected benefits. 3. The Yi'an Yunhai light alloy precision die casting production base project was mainly affected by the epidemic and the long development cycle of the project, and the expected benefits have not yet been achieved.
Description of major changes in the project's feasibility. The amount, purpose and progress of the use of the excess funds raised. The change of the implementation location of the raised funds investment project. The adjustment of the implementation method of the raised funds investment project. The initial investment and replacement of the raised funds investment project are temporarily supplemented with idle raised funds. Liquidity situation: The amount and reasons for the balance of the raised funds during the implementation of the project. The unused purpose and destination of the raised funds. Problems or other situations in the use and disclosure of the raised funds
no
not applicable
Not applicable, please refer to the description of Article 4 of this report. Please refer to the description of Article 3, point 2 of this report for details. Not applicable
Not applicable. Please refer to the description of Article 2 of this report for details. Please refer to the description of Article 5 of this report for details.
Dongguan Yian Technology Co., Ltd. shareholder return plan for the next three years (2021-2023)
In order to further standardize and improve the profit distribution policy of Dongguan Yian Technology Co., Ltd. (hereinafter referred to as the "Company"), enhance the transparency of profit distribution, ensure that investors share the company's development results, and guide investors to form stable return expectations, according to the China Securities Regulatory Commission The “Notice on Further Implementation of Issues Concerning Cash Dividends of Listed Companies”, “Guidelines for the Supervision of Listed Companies No. 3-Cash Dividends of Listed Companies” and the “Articles of Association” and other relevant documents stipulate that, in light of the actual situation of the company, the company will formulate the next three Annual (2021-2023) shareholder return plan.
1. Factors considered by the company in formulating this plan
The company focuses on long-term and sustainable development, comprehensively considers the company’s actual situation, development strategic planning and industry development trends, and establishes a scientific, continuous and stable return plan and mechanism for investors, so as to make institutional arrangements for profit distribution. Ensure the continuity and stability of the profit distribution policy.
2. The formulation principles of this plan
When formulating profit distribution policies, the company should attach importance to reasonable investment returns to investors, maintain the continuity and stability of the profit distribution policy, and comply with relevant laws and regulations. The company's profit distribution should pay attention to reasonable investment returns to investors and take into account the company's sustainable development.
3. The company's specific shareholder return plan for the next three years
(1) Principles of profit distribution: The company implements an active profit distribution policy and attaches importance to reasonable investment returns to investors, but the profit distribution shall not exceed the range of cumulative distributable profits, and shall not damage the company's ability to continue operations.
(2) Forms of profit distribution: The company can distribute profits in cash or stocks.
(3) The specific conditions and proportions of cash and stock dividends: If there is no major investment plan or major cash expenditures, the company shall distribute dividends in cash, and the profit distributed in cash shall not be less than 20% of the distributable profit realized in the current year. The company may distribute bonus shares while implementing the above-mentioned cash distribution of dividends.
A major investment plan or major cash expenditure refers to one of the following situations:
(1) In the next twelve months, the company intends to invest abroad, acquire assets, or purchase equipment, and its cumulative expenditure reaches or exceeds 50% of the company's most recent audited net assets, and exceeds 50 million yuan;
(2) In the next twelve months, the company intends to invest abroad, acquire assets or purchase equipment, and its cumulative expenditure will reach or exceed 30% of the company's most recent audited total assets.
(4) Interval of profit distribution: Dividends are distributed once a year, and the company's board of directors can propose the company to conduct mid-term cash distribution based on the company's capital needs.
(5) The company's retained undistributed profit use plan arrangement or principle: the company insists that the profit distributed in cash is not less than 20% of the distributable profit realized in the year when there is no major investment plan or major cash expenditure. The company’s retained undistributed profits are mainly used for major investment and cash expenditures such as foreign investment, asset acquisition, equipment purchase, etc., to gradually expand the scale of production and operation, optimize the financial structure, promote the company’s rapid development, and implement the company’s future development plan in a planned and step-by-step manner. The goal is to ultimately maximize the interests of shareholders.
Fourth, the decision-making mechanism of the profit distribution plan
(1) The board of directors combines specific operating data, fully considers the company's profit scale, cash flow status, development stage and current capital needs, and combines the opinions of shareholders (especially public investors), independent directors and external supervisors to formulate annual or mid-term dividends The plan will be implemented after being approved by the company’s shareholders meeting.
The company's board of directors drafts a cash dividend distribution plan, which is voted and approved by the general meeting of shareholders through an ordinary resolution; the company's board of directors drafts a stock dividend distribution plan, which is voted and approved by a special resolution of the general meeting of shareholders. The board of supervisors of the company shall review the dividend distribution plan prepared by the board of directors and provide written review opinions. (2) If the company’s board of directors fails to make a cash profit distribution plan, the reasons shall be disclosed in the periodic report.
Independent directors shall express independent opinions on this. If the company does not distribute profit in the current year or is lower than the cash dividend ratio specified in this plan, the company
The board of directors shall disclose the reasons in the periodic report. Independent directors shall express independent opinions on the reasons for undistributed dividends and the use of undistributed funds retained by the company. Proposals on profit distribution shall be reviewed by the company’s board of directors and submitted to the general meeting of shareholders for approval, and shall be proposed in the general meeting of shareholders. In the detailed argumentation, explain the reasons and the specific uses of the retained funds.
(3) The opinions of independent directors, external supervisors and public investors shall be fully considered in the process of decision-making and demonstration of the profit distribution policy of the company's board of directors, board of supervisors and general meeting of shareholders.
V. Changes in the company's profit distribution policy
The company will maintain the continuity and stability of its dividend distribution policy. If the company needs to adjust its profit distribution policy due to major changes in the company's external operating environment or its own operating conditions, it should take the protection of shareholders’ rights and interests as the starting point. Proposal on the adjustment of profit distribution policy It needs to be submitted to the shareholders' general meeting for approval after the company's board of directors, and the reasons should be demonstrated and explained in detail in the shareholders' general meeting.
6. The formulation cycle and related decision-making mechanisms of shareholder return plans
(1) The shareholder return plan formulation cycle and related decision-making mechanism: The company uses a three-year cycle as a cycle,
Review and formulate the "Shareholder Return Plan" within the cycle, according to shareholders (especially public investors),
The opinions of independent directors and external supervisors are appropriate and necessary for the company’s current dividend distribution policy
Revise, determine the shareholder return plan for this period, and submit it to the general meeting of shareholders for review and approval.
(2) Based on the opinions of shareholders (especially small and medium investors), independent directors and external supervisors, make appropriate and necessary changes to the company's current profit distribution policy to determine the shareholder return plan for this period.
Seven, other
Matters not covered in this plan shall be implemented in accordance with relevant laws and regulations, regulatory documents and the "Articles of Association". This plan is interpreted by the company’s board of directors and will be implemented from the date of approval by the company’s general meeting of shareholders.
Board of Directors of Dongguan Yian Technology Co., Ltd.
April 26, 2021
China Securities Co., Ltd.
Regarding Dongguan Yian Technology Co., Ltd. to terminate some of the raised funds investment projects
Projects and changes to the verification opinions on the implementation of some fund-raising projects
China Securities Co., Ltd. (hereinafter referred to as "China Securities Co., Ltd." or "sponsor"), as the sponsor of Dongguan Yian Technology Co., Ltd. (hereinafter referred to as "Yian Technology" or "Company") for non-public issuance of stocks, According to the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing", the "Guidelines for the Sponsorship of Listed Companies on the Shenzhen Stock Exchange", the "Shenzhen Stock Exchange Rules for the Listing of Stocks on the Growth Enterprise Market", and the "Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange's Growth Enterprise Market", etc. The requirements of laws, regulations and regulatory documents have carefully checked the company's termination of some fund-raising investment projects and changes in the implementation of some fund-raising projects. The details are as follows:
1. The situation of raised funds and investment projects
Approved by the China Securities Regulatory Commission on the “Approval of the Approval of the Non-public Issuance of Shares of Dongguan Yian Technology Co., Ltd.” (Zheng Jian Ke [2017] No.1872), the company non-publicly issued 50,000,000 RMB ordinary shares (A shares) and issued The price is 8.60 yuan per share, and the total amount of raised funds is 430,000,000.00 yuan. After deducting various issuance expenses of 10,115,602.58 yuan, the net amount of raised funds is 419,884,397.42 yuan. On February 26, 2018, Tianzhi International Certified Public Accountants (special general partnership) verified the availability of funds for this non-public issuance of shares and issued Tian Vocational Zi [2018] No. 6138 "Capital Verification Report". All raised funds have been deposited in the special account management of raised funds established by the company.
The ``Preplan for the Company's Non-public Issuance of Stocks (Second Revised Draft)'' disclosed the investment projects of the non-public issuance of stocks and the actual amount of funds invested so far are as follows:
Item name
1 Yi'an Yunhai Light Alloy Precision Die Casting Production Base Project
2 Amorphous alloy (liquid metal) precision structure industrialization expansion project
3 Amorphous alloy (liquid metal) R&D center construction project
Commitment project investment
Total (ten thousand yuan)
25,911.00
26,505.00
12,584.00
Actual funds raised
Amount in place (ten thousand
yuan)
16,737.88
17,121.60
8,128.96
As of now actual
Invest in raised funds
Amount (ten thousand yuan)
16,850.20
15,336.63
7.44
Total 65,000.00 41,988.44 32,194.27
2. The plan to terminate some of the fund-raising investment projects and change the implementation of some fund-raising investment projects
The actual amount of funds raised in the construction project of the amorphous alloy (liquid metal) R&D center is 81,289,600 yuan. Up to now, the actual amount of funds raised in the construction project of the amorphous alloy (liquid metal) R&D center is 74,400 yuan, and the remaining amount of funds raised Income including interest was 88,681,100 yuan.
This time the company intends to use the remaining amount of funds raised in the "Amorphous Alloy (Liquid Metal) R&D Center Construction Project" including interest income of RMB 88,681,100 (this amount accounts for 21.12% of the company's net proceeds from non-public issuance of shares). Industrialization Expansion Project of Crystal Alloy (Liquid Metal) Precision Structural Parts (Among them, 63.2 million yuan was used for "Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project"," and the remaining 25,481,100 yuan was used for "industrial expansion project of amorphous alloy (liquid metal) precision structural parts". Amorphous alloy (liquid metal) precision structural parts industrialization expansion project” purchase equipment), and terminate the “amorphous alloy (liquid metal) R&D center construction project”; at the same time, the “amorphous alloy (liquid metal) precision structural parts industry The implementation method of the “Chemical Expansion Project” is from a certain transformation of the existing production workshop, the purchase of related equipment to a new plant, the purchase of related equipment, and the adjustment of the investment amount of some items in the project (for the comparison table before and after the adjustment amount, see Article 5 of this announcement. ), but the total investment amount of the "Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project" remains unchanged at RMB 300 million. The implementation subject and construction location of "Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project" remain unchanged, that is, the implementation subject is Yian Technology, and the construction site is located in the company's existing plant area in Yinquan Industrial Zone, Qingxi Town, Dongguan City .
The company held the eleventh meeting of the fourth board of directors and the tenth meeting of the fourth board of supervisors on April 26, 2021, and reviewed and approved the "Proposal on Terminating Partially Raised Funds Investment Projects and Changing the Implementation Methods of Partial Raised Funds Investment Projects" », the company’s board of supervisors, independent directors and continuous supervision agency CITIC Jiantou Securities Co., Ltd. issued a clear agreement and the proposal still needs to be submitted to the company’s general meeting of shareholders for deliberation.
The termination of part of the fund-raising investment project and the change of the implementation method of some fund-raising investment projects this time do not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the "Management Measures for the Major Asset Restructuring of Listed Companies".
3. Reasons for terminating investment projects with partially raised funds and changing implementation methods of investment projects with partially raised funds
(1) In recent years, with the increasing acceptance of liquid metal in related industries, more and more companies use liquid metal materials to design and manufacture high-performance, high-precision complex structural parts, and the demand for liquid metal continues to increase. In order to meet the demand of the liquid metal market and continue to develop the liquid metal product market, the company's liquid metal production scale needs to be expanded, and the existing production sites cannot meet its development needs. Although the implementation of the construction project of the amorphous alloy (liquid metal) R&D center is conducive to enhancing the company's first-mover advantage and leading position in the amorphous alloy (liquid metal) field, its ultimate goal is to serve the precision structure of the amorphous alloy (liquid metal) Piece industrialization expansion project.
(2) With the increase in customer demand for liquid metal materials and the continuous improvement of quality requirements, the original amorphous alloy (liquid metal) precision structural parts industrialization expansion project will carry out a certain transformation of the existing production workshop and purchase related equipment It is difficult to meet the development needs of the liquid metal industry. In order to give full play to the company's technological leadership and market competitive advantages in the field of amorphous alloy precision structural parts, and to meet the production needs of liquid metal precision structural parts of different specifications, it is necessary to build new factories and purchase related large-scale amorphous alloy machinery and equipment. In order to maintain a complete industrial chain, the company plans to build a new plant in the existing plant in Yinquan Industrial Zone, Qingxi Town, Dongguan City.
(3) At that time, the non-public issuance of stocks for the industrialization and expansion of amorphous alloy (liquid metal) precision structural parts was only a certain transformation of the existing production workshops and purchase of related equipment. It is estimated that the capital demand is not large. The purchase of related large-scale amorphous alloy machinery and equipment has greatly increased the demand for funds compared to before.
In order to change the above situation, in line with the principle of rational, scientific and prudent use of raised funds, to further improve the efficiency of the use of raised funds and reduce the risk of the use of raised funds, the company plans to terminate the "amorphous alloy (liquid metal) R&D center construction project", and at the same time The implementation method of "Amorphous Alloy (Liquid Metal) Precision Structural Parts Industrialization Expansion Project" is changed from the transformation of the existing production workshop, the purchase of related equipment to the new plant and the purchase of related equipment, and the adjustment of the investment amount of some items in the project .
4. Termination of investment projects with partially raised funds and changes to the implementation methods of investment projects with partially raised funds will affect the company
The company terminated the amorphous alloy (liquid metal) R&D center construction project and changed the amorphous alloy (liquid metal)
Before the change
After the change
Investment amount (ten thousand yuan)
Investment amount (ten thousand yuan)
Proportion of investment
Total investment in fixed assets
Total investment in fixed assets
27,300 91.00%
Equipment purchase and
Equipment purchase and
24,431 81.43%
installation
installation
Renovation and decoration costs
Plant construction project
2,869 9.57%
Bottom working capital
Bottom working capital
2,700 9.00%
project total investment
30,000
100.00%
project total investment
30,000
100.00%
Serial number
The implementation method of the industrial expansion project of precision structural parts fully considers the actual development situation, which is conducive to integrating the company’s existing resources, improving the efficiency of the use of raised funds and reducing the risk of using raised funds, and further enhancing the industrialization and market development capabilities of liquid metals. , In line with the company's development strategy, there is no behavior that harms the interests of the company and all shareholders.
Although the company has demonstrated the feasibility of the above situation, it is also possible that due to changes in the policy environment, project construction progress, market environment, etc., the industrial expansion project of amorphous alloy (liquid metal) precision structural parts may not achieve the expected implementation The effect is to draw investors’ attention to risks.
Fifth, the situation of the investment projects with raised funds after the implementation of the change
(1) Project Name: Industrialization Expansion Project of Amorphous Alloy (Liquid Metal) Precision Structural Parts
(2) Construction address: Existing factory area in Yinquan Industrial Zone, Qingxi Town, Dongguan City
(3) Main construction content:
New plant and purchase of large-scale amorphous alloy machinery and equipment
(4) Investment budget:
The total investment of the project is about 300 million yuan. The comparison of the specific investment expenditure before and after the change is as follows:
name
1 1.1 1.2 2 3
27,300
20,980
6,320
2,700
Investment proportion
91.00%
69.93%
21.07%
9.00%
(5) Project necessity and feasibility analysis
This time only the implementation method of the industrial expansion project of amorphous alloy (liquid metal) precision structural parts has been changed and the investment amount of some items in the project has been adjusted. The total investment amount, end use and purpose of the project have not changed, and the implementation of the project is necessary , Feasibility has not changed compared with before the change.
7. Sponsor's verification opinions
Upon verification, the sponsor believes that:
The company's termination of part of the fund-raising investment project and the change of the implementation method of some of the fund-raising investment projects are normal decisions made by the company in accordance with the overall development strategy based on objective and actual conditions, and there is no situation that harms the interests of all shareholders. The above matters have been reviewed and approved at the 11th meeting of the 4th Board of Directors and the 10th Meeting of the 4th Board of Supervisors. The Board of Supervisors and independent directors of the company have expressed clear and agreed opinions. The relevant procedures are in compliance with the Company Law and the Shenzhen Stock Exchange. The requirements of laws, regulations and regulatory documents such as the Rules for the Listing of Stocks on the ChiNext, the Guidelines on the Standard Operation of Companies Listed on the ChiNext of the Shenzhen Stock Exchange, and the requirements of the Articles of Association.
In summary, this institution has no objection to the company's termination of part of the fund-raising investment projects and changes to the implementation of some of the fund-raising investment projects. The above matters still need to be submitted to the company's general meeting of shareholders for deliberation and can only be implemented after deliberation.
(No text below)
(There is no text on this page. It is the signed page of "China Securities Co., Ltd.'s Verification Opinions on the Termination of Some Fund-raised Investment Projects and the Change of Implementation Methods of Some Fund-raised Projects of Dongguan Yian Technology Co., Ltd.")
Signature of sponsor representative:
He Xinmiao Zhang Yu
CITIC Construction Investment Securities Co., Ltd. Year Month Day
In response to investors' questions, the company once introduced that the company that has won the international award of the magnesium industry in 17 years has developed magnesium alloy doors, which have the advantages of weight reduction, cost reduction, strength improvement and so on. There are certainly many factors why such a good product has not been accepted by the market and applied by customers so far. But from the perspective of the company and the product itself, what are the shortcomings and shortcomings? This is a process that a company and a product must go through when it continues to mature. I hope you can face it bravely. I hope Secretary Dong tells investors what are the shortcomings and shortcomings of this product?
iirm1850165· 2021-04-11· Source Website
Yi'an Technology Follow 2021-04-11
Hello! The company's magnesium alloy door is a very good lightweight application of automobiles. The integrated structure not only improves strength, but also reduces weight. At present, the company's magnesium alloy car door is still in the customer verification stage. Thank you for your attention!
This is another holy chit moment...Do you have any dates in mind to look forward to besides 420?...when we roll up:)
Synergy > huawei and tissot
Thank you - IWC looks like watch companies have pulled trigger.
https://stocktwits.com/r/LQMT_STOCK
Do you have ingredients for 106c?
Not sure I’ve seen this on the website before.