The text below sounds amazing. Is it as good as it seems or am I missing something?
— FROM THE REPORT IN THE REPLIED MESSAGE —
(2) Liquid metal
The emergence of folding screen mobile phones is a necessity for the development of smart phones. The design and production of hinges is one of the two core technologies of folding screen mobile phones. Another core technology is the performance improvement of flexible screens and mass production. The strength, thickness, and accuracy of the steel surpass the extreme requirements of traditional processes. The current CNC, MIM and other forming processes of stainless steel and aluminum alloy can hardly meet the requirements of hinges for material performance and dimensional accuracy. As a key material for folding mobile phone hinges, liquid metal has the characteristics of high strength, good formability and high dimensional accuracy. It can meet the requirements of the thickness, strength and precision of the hinge support. At the same time, due to the excellent elastic deformation ability of liquid metal itself, The fatigue performance of the product is far better than other materials.
During the reporting period, the novel coronavirus pneumonia epidemic was spreading, but the new folding screen phones did not slow down. Two new folding screen phones including Huawei MateXs and Samsung Galaxy ZFlip were released one after another, allowing the market to focus on the development of its related industry chains again prospect. Based on the continuous expansion of the liquid metal market last year, the company continued to increase its R&D and innovation efforts, and carried out strategic cooperation with mobile phone brands to jointly research, develop and supply liquid metal hinges.
During the reporting period, in addition to supplying liquid metal hinges to customers, the company also continued to increase the market promotion of liquid metal products in the fields of new energy vehicles, consumer electronic structural parts, medical equipment, and communication base stations, and continuously launched products that meet customer needs. The company’s mass-produced liquid metal products include liquid metal hinge structural parts, medical device structural parts, car door locks, USB interfaces, mobile phone side decorations, camera decorations, Face-ID brackets and other products. Sila exclusively supplies ModelX liquid metal door lock cover 23040PCS.
In order to expand the application field of liquid metal and develop more liquid metal products, the company has carried out a series of tests on the core components of the robot harmonic reducer, the harmonic gear, the high-end fasteners of the lock washers, the golf head, and the industrial coupling diaphragm. In-depth research and development, some samples have completed the preliminary proofing.
In order to give full play to their respective advantages and expertise, promote the sustainable development of Yian Technology's liquid metal industry, and improve the ability of industrial chain integration, on March 6, 2020, the company and Sanxiang New Materials Co., Ltd. established an industrial fund Ningde Sanxiang Zirconium. Magnesium Industry Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "Sanxiang Zirconium Magnesium") signed the "Amorphous Alloy (Liquid Metal) Project Cooperative Investment Agreement", and the two parties agreed to jointly invest in the amorphous alloy (liquid metal) project. The registered capital of the project is RMB 100,000,000. Sanxiang Zirconium Magnesium and Yian Technology will jointly invest 60%:40%. The implementation entity is Ningde Sanxiang Liquid Metal Technology Co., Ltd. (hereinafter referred to as "Ningde San Cheung"). On March 10, 2020, Ningde Sanxiang completed the industrial and commercial registration. In order to enhance Ningde Sanxiang’s ability to independently develop and produce amorphous alloy (liquid metal) products, and improve the market competitiveness of amorphous alloy (liquid metal) products, Yi'an Technology and Yihao Metal have combined their own and authorized use with amorphous alloys (liquid metal) products. Patent and proprietary technology related to alloy (liquid metal) are licensed to Ningde Sanxiang. Ningde Sanxiang paid 40 million yuan in technology license fees to Yi'an Technology and Yihao Metal (including 23 million yuan to Yi'an Technology and 17 million yuan to Yihao Metal), and the technology license fee was paid in two installments. As of the end of the reporting period, Yi'an Technology and Yihao Metal received the first phase of technology license fees respectively. In order to increase the production capacity of Ningde Sanxiang’s liquid metal equipment, on April 8, 2020, the company and Ningde Sanxiang jointly signed the "Equipment Sales Contract". Ningde Sanxiang agreed to purchase 10 units of liquid metal of two types and specifications from Yian Technology The total amount of machinery and equipment is RMB 30.8 million.
With the continuous improvement of the 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 customer needs, the company accelerated its market layout, continued to increase investment in liquid metal machinery and equipment, increased production capacity, and continued growth in liquid metal product revenue. During the reporting period, the company's liquid metal product sales revenue was RMB 70,978,800, an increase of 71.25% compared to the same period last year, mainly due to the increase in liquid metal hinge income. As of the end of the reporting period, the company's cooperation with well-known domestic and foreign customers such as Tesla, Xiaomi, Huawei, OPPO, Lens Technology, ABB, and Sony has further strengthened.
