Core Viewpoint - Yirui Technology (688301.SH), a domestic core component supplier for medical imaging, is accelerating its industrial layout through an investment of up to 1.8 billion yuan in a silicon-based OLED microdisplay backplane production project [1][2]. Investment and Expansion - The company plans to increase its investment in its wholly-owned subsidiary, Yirui Imaging Technology (Hefei) Co., Ltd., by 600 million yuan to implement the silicon-based OLED microdisplay backplane production project [2][3]. - The project aims to add a production capacity of 5,000 units per month, with a construction period of 12 months and an expected payback period of 6.7 years, yielding an internal rate of return of 11.01% [2][3]. R&D Investment - From 2020 to 2024, Yirui Technology's cumulative R&D investment reached 1.053 billion yuan, with annual investments showing a growth trend: 96 million yuan in 2020, 146 million yuan in 2021, 239 million yuan in 2022, 262 million yuan in 2023, and 310 million yuan in 2024 [3][4]. Market Position and Performance - Yirui Technology is a leading player in the digital X-ray detector market, with production bases located in Shanghai, Jiangsu, Zhejiang, and Seoul, South Korea [4]. - In 2024, the company reported a revenue of 1.831 billion yuan, a year-on-year decrease of 1.74%, and a net profit of 465 million yuan, down 23.43% [5][6]. Globalization Efforts - In 2024, Yirui Technology enhanced its global presence by establishing sales or customer service platforms in the United States, Germany, and South Korea [6]. - The company also plans to issue shares to specific investors to raise funds for the construction of X-ray vacuum devices and comprehensive solution projects, which will add significant production capacity [6].

Investment Overview - The company plans to invest up to RMB 1.8 billion (approximately USD 270 million) in the silicon-based OLED microdisplay backplane production project, with an increase of RMB 600 million (approximately USD 90 million) to its wholly-owned subsidiary, Yirui Imaging Technology (Hefei) Co., Ltd [3][4] - The investment aims to enhance production capacity by adding 5,000 units per month and achieving large-scale production [4] Decision and Approval Process - The investment proposal was approved during the 15th meeting of the company's third board of directors on May 23, 2025, and will be submitted for shareholder approval [2][3] Project Background - The company aims to establish a partnership with Shiya Technology and specific clients, where Shiya Technology will provide silicon-based OLED microdisplay module products, and the company will supply the necessary core materials [3][4] - The project leverages existing production lines for CMOS sensors, allowing for efficient production of the new backplane [4] Impact on the Company - The investment is expected to create strong synergies with existing operations, enhance technological innovation, and improve collaboration with downstream clients, thereby strengthening the company's competitive edge [4] - The funding will come from the company's own resources and a performance bond from Shiya Technology, ensuring no adverse impact on normal operations [4]