HongliZhihui(SZ:300219)2022-12-04 10:32Group 1: Company Overview - Hongli Zhihui Group Co., Ltd. is focused on the Mini LED sector, establishing a comprehensive R&D system and achieving significant breakthroughs in large-size panels and transfer technology [2][3]. - The company has formed strategic partnerships with transfer equipment manufacturers and is expanding production capacity based on market demand [3]. Group 2: Mini LED Business - Mini LED products primarily target medium and large-size backlighting applications, serving industries such as VR, tablets, gaming laptops, TVs, computer monitors, medical displays, and automotive [3]. - The company has completed small-batch trial production and is capable of mass production for certain models, with Guangzhou as the main production base and Shenzhen as the R&D center [3]. Group 3: LED Packaging Market - The LED packaging market is experiencing growth due to increased demand in the LED lighting sector, the exit of international giants from the domestic market, and a gradual increase in industry concentration [3][4]. - The company has made advancements in automotive-grade LED packaging, achieving certifications such as AEC-Q102 and IEC60810, and has established a dedicated production line and laboratory for automotive applications [4]. Group 4: Financial Performance and Challenges - Suyi Network, a subsidiary, has faced performance declines due to stricter financial regulations and a decrease in domestic new car sales, impacting its gross margin [5]. - Jin Cai Hardware, another subsidiary, specializes in metal powder injection molding products, primarily serving the consumer electronics market, with major clients including VIVO and OPPO [5]. Group 5: Shareholding and Management - Jin Jue Investment became the controlling shareholder in November 2018, recognizing the company's achievements in the LED packaging sector and its long-term growth potential [6]. - Jin Jue Investment currently holds 29.94% of the company's shares, which will increase to 30.08% due to the termination of a stock incentive plan, and is applying for an exemption from mandatory takeover obligations [6].