HAXC (SZ:300928)2022-11-17 14:31Company Overview - Huazhong Xinchuan Holdings (Beijing) Co., Ltd. was established in 2013, focusing on automotive smart cockpit electronics, including customized display devices and software system development [2][3]. - The company provides screen customization and software system development services for nearly 300 vehicle models, collaborating with major manufacturers such as Geely, SAIC, BYD, and Xpeng [4]. Business Development - The company has deepened strategic cooperation with Tianma Microelectronics and formed joint ventures with other technology firms to enhance market competitiveness [4]. - In April 2022, the company planned to establish a smart manufacturing factory for vehicle-mounted LCD display modules and smart cockpit display systems in Nantong, Jiangsu, to increase production capacity [4]. Transition to Tier 1 Supplier - The company has transitioned from a Tier 2 to a Tier 1 supplier, recruiting experienced talents in R&D, production, and marketing from well-known Tier 1 companies [4]. - This transition is expected to enhance the company's gross margin due to improved capabilities in the entire manufacturing process, from LCD glass to complex modules [4]. Financial Impact - The impact of panel price fluctuations on profit margins is minimal, as the automotive sector remains stable compared to the consumer electronics market [4]. - The gross margin is anticipated to improve following the upgrade to Tier 1 status, driven by the added value from enhanced manufacturing processes [4].