Zhiyun Shares: Will adjust the business structure and focus on flat panel display module automation equipment

Jiwei network news, on the evening of January 19, Zhiyun announced that the company will adjust and optimize the existing business structure, under the premise of ensuring quality and quantity to complete the orders in hand and ensure the interests of employees, orderly reduce the production and sales of automotive powertrain automation equipment with worrying performance prospects, and gradually withdraw from the business field; concentrate superior resources to focus on the development of flat panel display module automation equipment business to achieve the optimal allocation of the company's resources.

It is reported that Zhiyun shares since July 2010 listed, the early to the automotive powertrain automation equipment business, the main products include automatic testing equipment, automatic assembly equipment, automatic cleaning equipment, logistics handling equipment and the whole line of equipment, etc., customers are mainly automobile and engine manufacturers.

In 2015, Zhiyun purchased a total of 100% of the equity of Xinsanli legally held by Shi Liquan, Hu Zhengguang, Li Xiaogen and Zhang Pisen through a combination of issuing shares and paying cash, thus adding a flat panel display module equipment business to the company's main business.

Since 2018, the company's business development has also gradually formed a field of automation equipment for 3C flat panel display modules, and has a strong competitive advantage in many subdivisions such as bonding, dispensing, lamination, and bending in this field.

According to the company's 2020 annual report and the third quarter report of 2021, the revenue of flat panel display module equipment accounted for 61.72% of the company's operating income (such as excluding the mask machine business, flat panel display module equipment revenue accounted for 74.70% of the company's operating income) and 80.81% (unaudited); the revenue of automotive powertrain automation equipment accounted for 19.63% of the company's operating income (such as excluding the mask machine business, the automotive powertrain automation equipment revenue accounted for 23.76% of the company's operating income) and respectively 19.04% (unaudited). The company's automotive powertrain automation equipment revenue has continued to decline, and the flat panel display module automation equipment business has become the company's main business.

Zhiyun shares said that with the advent of the 5G era, consumer electronics, car displays and smart home display terminals and other markets are expected to usher in a new round of innovation and development with 5G communications and 5G applications as the core, domestic display panel and module manufacturers continue to expand production capacity in response to the demand growth of display panels and consumption upgrades, and their new production line equipment investment needs and existing production line equipment upgrading needs also directly drive the demand for 3C flat panel display module automation equipment. At present, the company has mastered technologies such as LCD, OLED, Mini LED and Micro LED, and has a large market development space in the future.

Therefore, in order to ensure the company's business reputation, under the premise of actively and effectively completing the orders in hand and ensuring the interests of employees, the production and sales of automotive powertrain automation equipment with worrying performance prospects are reduced in an orderly manner, and gradually withdraws from this business field;

In addition, the company will focus on the development of flat panel display module automation equipment business with superior resources to achieve the optimal allocation of the company's resources.

According to Zhiyun shares, the adjustment of the company's business structure is in line with the company's long-term business development needs, which can reduce the impact of the automotive powertrain automation equipment business on the company's main business, reduce the company's operating costs and management costs, and enable the company to focus its main energy and financial resources on the development of the main business. Through the gradual orderly reduction of the automotive powertrain automation equipment business, it will be conducive to the company's concentration of resource advantages to develop the core business segment flat panel display module automation equipment business, seize the opportunities brought by the development of the industry, further control the business risks, and improve the efficiency and effectiveness of the company's operation and management.

Zhiyun shares said that based on the adjustment of the aforementioned business structure, the company will measure the performance cost of the orders in hand in the automotive powertrain automation equipment sector, and reasonably and prudently calculate the corresponding inventory price decline reserve or estimated liabilities for the expected loss of the contract. (Proofreading/Arden)