CHENGZHI(SZ:000990)2022-12-04 09:40Company Overview - Chengzhi Co., Ltd. was established in 1987 and is located in Shijiazhuang, primarily producing mixed liquid crystal materials and OLED materials [1][3]. - The company has made significant contributions to the development of LCD in China and is a key player in the optical materials industry [1]. Product Development - Chengzhi Yonghua, a subsidiary, focuses on mono-LCD and TFT-LCD materials, with display applications being the main revenue source [1][3]. - The company has achieved a global market share of approximately 50% in mono-LCD materials and has been a pioneer in TFT-LCD mass production in China [3][4]. - Currently, large-size liquid crystal products account for 60% of sales, with negative liquid crystal materials also making up 60% of sales [3][4]. Market Position - The global TFT-LCD market is dominated by four regions: Mainland China, Japan, South Korea, and Taiwan, producing around 2.6-2.7 billion square meters annually, with China accounting for 40% of the total [4][5]. - Major customers in the TFT-LCD sector are highly concentrated, with the top 9 customers holding a 90% market share [4][5]. OLED Development - Chengzhi has been expanding into the OLED market, with 16 production lines established or under construction in China, projected to account for over 30% of global OLED capacity by 2021 [5][6]. - The company is focusing on developing red light-doped materials and has made breakthroughs in this area, although it faces challenges due to high patent barriers in the OLED sector [5][6]. Technological Advancements - Chengzhi holds a total of 431 patents, with 150 in China, and is recognized for its strong customer base and product depth [3][6]. - The company has successfully navigated intellectual property barriers, achieving significant milestones in patent breakthroughs from 2011 to 2017 [6][7]. Strategic Goals - The strategic goal of Chengzhi is to establish a global presence while maintaining a strong foundation in China, focusing on high-end products to mitigate price competition [8][9]. - The company has developed a strategic plan for 2018-2021, emphasizing the importance of technology and product quality to meet mainstream customer demands [8][9]. Future Outlook - The company is optimistic about the future of liquid crystal materials, expecting to maintain a significant market share despite challenges from emerging technologies like micro LED [9][10]. - Chengzhi is also exploring opportunities in liquid crystal antennas and other innovative applications to diversify its product offerings [9][10].