Overview - Jiangsu Jingyan Technology Co., Ltd. plans to establish a joint venture named Jiangsu Jingyan Heat Treatment Co., Ltd. to enhance its comprehensive production capabilities and meet long-term strategic development needs [1][2]. Investment and Shareholding Structure - The registered capital of the joint venture is 30 million RMB, with Jiangsu Jingyan contributing 19.8 million RMB (66%), Ningbo Mingyan contributing 1.2 million RMB (4%), and other investors contributing the remaining amounts [2]. - The joint venture will be consolidated into the company's financial statements as a subsidiary [2]. Related Party Transactions - The transaction is classified as a related party transaction due to the involvement of individuals who hold positions within the company and their familial relationships with the controlling shareholders [2][3]. Approval Process - The board of directors and the supervisory board approved the investment on August 1, 2025, with related directors abstaining from voting [3]. - The transaction does not constitute a major asset restructuring and does not require approval from regulatory authorities [3]. Purpose of the Joint Venture - The establishment of the joint venture aims to meet the heat treatment needs of the company's Metal Injection Molding (MIM) products, enhancing product performance and reducing reliance on external processing [12][13]. - The investment aligns with market demands for in-house processing capabilities, ensuring quality control and reducing supply chain uncertainties [13]. Financial and Operational Impact - The investment is expected to optimize the company's MIM industry layout, enhancing overall strength and core competitiveness, contributing to sustainable long-term development [14]. - The funding for the investment comes from the company's own resources, ensuring that normal business operations are not adversely affected [14]. Independent and Supervisory Board Opinions - The independent directors and the supervisory board have reviewed the investment proposal and agree that it is beneficial for the company's long-term development, adhering to fair and equitable principles [15][16].

Core Viewpoint - The article discusses the evolution and significance of hinge technology in foldable smartphones, highlighting the different types of hinges, their advantages and disadvantages, and the impact of material innovations on performance and cost [2][5][6]. Industry Perspective - Foldable hinge technology has undergone multiple iterations since the first commercial foldable phone was launched in 2019, leading to various technical routes and design philosophies [2]. - The main types of hinge technology include U-shaped hinges, waterdrop hinges, and other types, each with unique characteristics affecting crease control, thickness, cost, and durability [2]. U-Shaped Hinge - The U-shaped hinge, exemplified by the Samsung Galaxy Fold series, is a simpler and cost-effective design but suffers from significant drawbacks such as visible creases and potential screen damage over time [3]. - This hinge design has been criticized for allowing dust ingress and causing aesthetic issues due to gaps when closed [3]. Waterdrop Hinge - The waterdrop hinge, commonly used by domestic manufacturers like OPPO and Huawei, allows for a larger bending radius, reducing screen creases and providing a seamless closure [4]. - While offering advantages such as shallower creases and improved user experience, the complexity of the waterdrop hinge increases production costs and device thickness [4]. Evolution of Hinge Technology - The evolution of hinge technology reflects the transition of foldable smartphones from being merely functional to providing a better user experience, with advancements in materials and structural design [5]. - The latest innovation is Huawei's "Tiangong Hinge System," which supports both inward and outward folding, marking a new stage in hinge technology development [5]. Material Innovations - The performance of foldable hinges is closely tied to material selection, with advancements from traditional stainless steel to revolutionary liquid metal materials enhancing strength and fatigue resistance [6]. - Metal Injection Molding (MIM) is the mainstream choice for hinge manufacturing, while liquid metal offers superior properties, making it ideal for components requiring repeated folding [6]. Market Dynamics - The global foldable hinge market is projected to exceed $900 million in 2024, with a growth rate of nearly 5% [7]. - The introduction of tri-fold smartphones increases the number of required hinges, suggesting further market expansion [7]. - The market is characterized by high technical barriers, dense patent layouts, and a trend towards consolidation among leading companies [7]. Regional Distribution - Hinge manufacturers are primarily located in China and South Korea, with the U.S. excelling in design but less involved in manufacturing [8]. - Chinese companies are increasingly competitive across the entire supply chain, from materials to design and manufacturing [8]. Cost Structure - Hinges represent a significant incremental cost in foldable smartphones, with individual costs ranging from 800 to 1200 yuan, influenced by material choices and manufacturing complexity [8]. - Reducing hinge costs is crucial for the broader adoption of foldable smartphones, with potential improvements through material substitution and process enhancements [8]. Challenges in the Industry - The industry faces challenges such as reliance on foreign high-end materials and increasing competition, necessitating ongoing R&D investment [9]. - However, advancements in MIM technology and liquid metal by Chinese firms are enhancing the self-sufficiency of the supply chain [9]. Market Forecast - The global foldable hinge module market is expected to reach $1.82 billion by 2031, with a compound annual growth rate (CAGR) of 6.8% [10].