Securities code: 300752 securities abbreviation: Shenzhen Longli Technology Co.Ltd(300752) Shenzhen Longli Technology Co.Ltd(300752)
Issue shares to specific objects
Feasibility analysis report on the use of raised funds (Revised Version) January 2002
1、 Use plan of funds raised in this non-public offering
The total amount of funds raised from the issuance of shares to specific objects does not exceed 1002 million yuan (inclusive). After deducting the issuance expenses, it is proposed to invest in the following projects:
Unit: 10000 yuan
No. project name total investment amount proposed to be invested in raised funds
1 medium and large size Mini LED display module intelligent manufacturing base project 85015.60 81700.00
2 supplementary working capital 18500.00 18500.00
Total 103515.60 100200.00
Before the funds raised in this offering are in place, the company will invest with self raised funds according to the actual situation of the investment projects with raised funds, and replace them after the raised funds are in place. After the raised funds are in place, if the net amount of the actual raised funds after deducting the issuance expenses is less than the total amount of the proposed raised funds, within the scope of the investment projects of the raised funds in this issuance, the company will adjust and finally determine the specific investment projects, sequence and specific investment amount of each project according to the actual amount of the raised funds and the priorities of the projects, The insufficient funds raised shall be raised by the company itself.
2、 Feasibility analysis of the investment project with raised funds in this issuance
After deducting the issuance expenses, the total funds raised in this issuance will be used for the intelligent manufacturing base project of medium and large-size Mini LED display modules and supplement working capital. The details of the investment projects with the raised funds are as follows:
(I) intelligent manufacturing base project of medium and large size Mini LED display module
1. Basic information of the project
The medium and large size Mini LED display module intelligent manufacturing base project is located in Guanlan street, Longhua District, Shenzhen City, Guangdong Province. The main body of the project is Shenzhen Longli Technology Co.Ltd(300752) , and the construction period of the project is 24 months.
The project will build a first-class backlight module industry base in China. The main products are medium and large-size Mini LED display modules, so as to better meet the market demand for mini LED backlight module products in the future, and provide good return on investment and economic benefits for the company.
2. Necessity of project implementation
(1) Continue to maintain and expand the company's first mover advantage in mini LED technology and seize the development opportunities of the industry. In recent years, mini led, as a new technology with broad market prospects, has attracted the attention of the industry. Major manufacturers have shown great enthusiasm for mini led and layout one after another to seize market opportunities. With the continuous breakthrough of mini LED technology, continuous product innovation and rapid market development, 2020 has become the first year of mini led. In 2021, relevant products will be applied in famous manufacturers such as apple, Huawei, TCL, Skyworth, LG, Xiaomi, Konka, Changhong, Hisense, Philips, Dell, ASUS and MSI. On the whole, the industry integration has accelerated, the mini LED industry chain has been laid out one after another, and the industry competition has intensified.
Mini LED has become a new direction of breakthrough in the industry, and with the reshuffle of the display industry, new industrial chain investment opportunities will be derived. Since 2020, the production expansion projects related to mini led in the industrial chain have been implemented one after another, covering the whole industrial chain of equipment, chip, packaging, panel, display screen and terminal application. A series of actions of the industrial chain show that before the advent of large-scale mass production of mini led, the industrial chain has made preparations in advance in order to seize the opportunity in the market competition and obtain greater market share.
Many well-known research institutions believe that mini LED has broad market prospects and rapid development in the future. According to the estimation of LED Research Institute of advanced industry and Research (GGII) in 2019, the mini LED market is expected to maintain a high-speed growth of about 175% from 2018 to 2020; According to the data of yole research, a global semiconductor research institution, it is estimated that the global Mini LED display equipment has a large growth space in the three fields of TV, PC display and vehicle display. Among them, the average annual growth rate of TV field is as high as 234% from 2020 to 2024, and the average annual growth rate of PC display field is as high as 99% from 2020 to 2024, From 2021 to 2024, the average annual growth rate of on-board display screen is as high as 52%; According to ledinside's prediction, the global Mini LED market will grow to USD 2.891 billion in 2025. With apple and other manufacturers applying mini LED technology to new products, the global and China Mini LED market is expected to further increase significantly in the future.
Through the construction of the project, accelerate the large-scale production of the company's medium and large-size Mini LED display modules, improve the company's layout in the product line of medium and large-size Mini LED display modules, further expand the company's first mover advantage in the field of medium and large-size Mini LED display modules, keep pace with the development of the industry, and complete the industrial layout before the advent of large-scale commercialization of the industry, To help obtain more market orders and seize the market, so as to seize market opportunities and improve the profitability of the company.
(2) Grasp the development direction of the industry and realize the needs of the company's product technology iteration
This year, with the continuous upgrading of the display industrial structure and the increasing competition in the traditional market, it is necessary for the company to continuously improve product performance, iterate the company's product related technology, improve the technology of mini LED display module, optimize the company's product structure and maintain the company's market competitiveness. As a product in the new development cycle of the display industry, mini LED has higher integration, higher contrast, lower power consumption and better natural display effect than traditional LED display technology. The display screen using mini LED technology is much better than the LCD display screen with ordinary LED backlight in lightness, contrast, color restoration and brightness, and can be comparable and competitive with OLED, At the same time, it also has the technical advantages (such as stability, brightness, service life, etc.) and cost advantages that OLED does not have, and has obvious competitive advantages.
Mini LED is expected to be commercialized on a large scale in the future. At the same time, with the appearance of large-scale benefits, the cost performance of mini LED display products will continue to improve and will gradually become one of the mainstream directions of display technology.
As a leading backlight display module enterprise in the industry, the company has accumulated profound experience in the R & D and technical reserves of mini LED display technology, optical design, electronic circuit design, structural design, transfer technology in recent years. Relying on the company's technical reserves in the field of mini LED display, the project grasps the mainstream direction of industry development, realizes iterative upgrading of product technology, improves product technical content and added value, and increases the company's profit space. (3) Cultivate business growth points and meet the needs of the company's development strategy
The company's main business is the R & D, production and sales of backlight display modules, which can be applied to notebook computers, televisions, smart phones, tablet computers, digital cameras, vehicle mounted displays, medical displays, industrial control displays and other fields. Since its establishment, the company has been focusing on the R & D and production of backlight display modules. Relying on the core technology of independent intellectual property rights and years of production practice, the company has gradually developed into one of the important backlight display module enterprises with strong R & D strength and large production scale in China. Under the influence of trade friction and OLED, the traditional LED module market is declining and the industry competition is becoming increasingly fierce.
In order to cope with market competition risks and challenges of OLED, optimize the company's business structure, expand application fields and expand the company's business scale, the company deeply understands the market demand, speeds up the new technology layout, improves the R & D technology level, and expects to form a new business growth point.
The construction of this project is an important measure for the company to layout new business. The construction of this project will not only help the company to face the challenges and industry competition of OLED more calmly, but also help the adjustment of the company's business structure and the expansion of application fields, cultivate new growth points and realize the company's development strategy.
3. Feasibility of project implementation
(1) Brand manufacturers accelerate the commercialization of mini led, the industrial chain is becoming more and more mature, and the market space is broad
Compared with the traditional side entry backlight and straight down backlight, the backlight LED of mini LED is smaller, the display effect is finer and closer to pixelation, the screen brightness and contrast are significantly improved, the display effect of dark area is also better, and can realize uniform heat dissipation under high brightness, which can be suitable for ultra-thin design. Compared with traditional LED, mini LED has more diversified application scenarios. The demand for mini led in mini LED application scenario will be higher than that of traditional LED.
At present, the commercialization of mini LED has accelerated, and apple, Samsung and other manufacturers have launched terminal products one after another, marking the advent of the era of mass production of mini led. On the one hand, mini LED technology tends to mature and the cost begins to decline. Compared with traditional technology, mini LED has a great improvement in performance; Compared with OLED, mini LED has lower cost and longer service life under the same performance conditions. At present, the cost competitive advantage of mini led in medium and large-scale application fields such as TV, laptop, flat panel, display, on-board display, conference display and outdoor industrial display is gradually increasing, and it is expected to soon become the mainstream technology in medium and large-scale display market. On the other hand, the global industrial chain tends to mature. From the perspective of industrial chain links, equipment manufacturers gradually solve their worries for manufacturers in other links. The strength of chips, packaging, backlight modules and other links is strong. With their accumulated rich technical reserves, manufacturers continue to improve and innovate their products. Finally, with the help of terminal application brands and channels, mini LED will move towards more and more application markets. The expansion of the above application scenarios and the leap in market potential promoted by brand manufacturers will bring development opportunities for the project, and the market application prospect of the project is broad.
(2) The company has mini LED technology reserve and mass production experience, with the first mover advantage
Since 2016, the company has invested a lot of money and manpower in the research and development of mini LED technology, studied and integrated IC drive, circuit design, structure, optics and flexible board packaging, and took the lead in developing a variety of products. The mini LED technology studied at this stage can be applied to vehicle, tablet, laptop, TV Display and intelligent wear. In 2020, the company continued to increase R & D investment, with a cumulative R & D cost of 108.8875 million yuan, an increase of 28.69% over the same period of last year; Technological capabilities have been continuously improved, and breakthroughs have been made in new technologies.
The company basically has corresponding technical reserves. As of December 31, 2021, the company has effectively applied for 145 patents in mini LED related fields, including 64 invention patents. At present, it has obtained 68 patents, including 6 invention patents, 43 utility model patents, 19 appearance patents, and won 10 Mini LED related innovative product awards, And cooperated with TCL to develop 13.3-inch Mini led tablet computer display, the world's first 34 inch Mini led curved surface E-sports display, and cooperated with Konka to release 31.5-inch Mini LED display. At present, the company has a mass production production line and supplies to new energy vehicle manufacturers, traditional automobile manufacturers and consumer electronics brands. It has a leading advantage to provide technical support for the implementation of the project.
In conclusion, the company's first mover advantage in mini LED technology reserve and mass production experience will contribute to the company's market expansion.
(3) Stable and high-quality customer base to provide order resources for this raised investment project
For many years, the company has focused on the production of backlight display modules. It has always adhered to the path of leading technology, continuously increased scientific and technological investment, carried out independent innovation and technological innovation, established a scientific technological innovation system, formed a good product supply capacity, and accumulated a number of high-quality and stable customer groups.
The downstream customers of the company are well-known enterprises in the LCD module industry at home and abroad such as BOE, shentianma, shenchao optoelectronics, TCL group, Huaxing optoelectronics, Xinli, Dijing optoelectronics, Holitech Technology Co.Ltd(002217) , Shenzhen Txd Technology Co.Ltd(002845) , Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , qunchuang, Youda and sharp, and the end customers are well-known terminal Enterprises such as Samsung, Huawei, Xiaomi, vivo, oppo, Sony, LG and Lenovo.
In addition, based on the company's first mover advantage in mini led, the company is cooperating with a number of well-known automobile manufacturers in the vehicle field. In the commercial display field, the company is cooperating with TCL, Konka and other brand manufacturers. In the VR field, the company has entered the supply chain of world-famous enterprises.
After establishing a supply relationship with customers, the company will maintain a relatively stable business relationship. After years of development, the company has been highly recognized by customers and established a stable business relationship to provide order guarantee for the operation of this raised investment project.
