Shenzhen Enrich Electronics Co.,Ltd

On July 20, 2018, BOE Jingdian announced that the company's wholly-owned subsidiary, Naga Investment Co., Ltd. and Hefei New Station High-tech Industrial Development Zone Administrative Committee, on the vehicle LCD module and vehicle intelligent interactive research and development platform The project entered into an investment framework agreement. The total investment amount of the project is RMB 1.357 billion. Hefei BOE Car Display Technology Co., Ltd., a wholly-owned subsidiary of the Company, is a project company as a project construction and operation. The Hefei Management Committee actively assisted the project, including but not limited to Hefei BOE, which was approved by the relevant government departments for project operation.

BOE Fine Electric Co., Ltd. (formerly known as Jingdian International Co., Ltd.) is a Hong Kong investment holding company mainly engaged in liquid crystal display business. Its main business includes the design, manufacture and sales of liquid crystal display and related products, including automotive display. , industrial display, home appliance application display and medical product display, etc., business includes China, South Korea, Europe and the Americas. Founded in 1978, Jingdian International mainly produces small and medium-sized LCDs (liquid crystal displays). The products include standard, semi-customized and full-customized. Before that, its production base was located in Shenzhen and Heyuan, Guangdong Province.

BOE Fine Power is BOE intending to enter the global automotive display field, in order to obtain global marketing channels and customer resources to acquire the original Hong Kong main board listed company. On February 3, 2016, Jingdian International entered into a subscription agreement with BOE. In order to integrate its advantageous resources, BOE accelerated the implementation of the global strategy of the company's vehicle display business, and conditionally subscribed for shares issued by Jingdian International to subscribe for more than 50% of the international share capital of Jingdian. . Jingdian International placed 400 million new shares in BOE, equivalent to 54.7% of the enlarged share capital of Jingdian International. The share price at the time was HK$3.5 and the net proceeds from the placement were HK$1.39 billion.

Before 2015, in the Chinese auto market, Jingdian International, like the other two main vehicle display module manufacturers, Shen Tianma and Xinli International, are the three major manufacturers of vehicle instrument display and central control displays of Chinese auto manufacturers. Three of them are the most important manufacturers of monochrome and color film instrument displays. Deep Tianma and Xinli International have their own panel production lines, plus the advantages of Xinli International and LG's back-end module foundry, together in China. Competing TFT color control panel manufacturers on the market.

Since 2015, the Chinese auto market has been affected by the popularity of new energy vehicles and assisted driving functions. The display screens of fuel vehicles have also begun to be rapidly colorized and upgraded to TFT displays. Due to the limitations of TFT panel resources, Jingdian International has lost orders.

At the time, BOE was looking for better quality customers for the low-generation panel line, avoiding the shrinking market of functional mobile phones in the market, and actively seeking the seaport of the industrial control and vehicle display market, the high-quality customer base of Jingdian International, and its facing The dilemma of management can be complemented by the resources of BOE, so that the two sides can come together.

However, due to the changes in customer groups and product lines, in order to expand market share, BOE Jingdi began to open the market at a low price to grab the orders of TFT car monitors from competitors. As a result of the price war, the business performance of BOE Jingdian has been improved to a certain extent, but the gross profit margin of the products is not satisfactory, and the operating profit has dropped significantly. The operating performance of BOE Jingdian in 2017 is not satisfactory.

However, countries with large urbanization and small regional areas are actively promoting new energy vehicle strategies in an effort to reduce management costs in the transportation sector. At the same time, in order to attract users, new energy vehicles have actively introduced the addition of weak current intelligent systems to the weak current control system in order to obtain more pan-entertainment functions for assisting driving functions.

The addition of these functions also increases the interactive content capacity of the car display by dozens of times, which promotes the development of the car display from low-resolution monochrome display to high-resolution color display. And the new energy vehicle, almost the color TFT display, as a standard for the car display.

Therefore, despite the fierce competition in the in-vehicle display market, the in-vehicle display market is experiencing a rapid upward growth compared to the shrinking smartphone display market. In addition, overseas display companies are limited by upstream resource matching and operating costs and local service support. Most of the manufacturing capacity is rapidly exiting the Chinese market. In the future, the Chinese car display market will become the BOE. The home of Tianma and Xinli International.