Company code: Beijing Bayi Space Lcd Technology Co.Ltd(688181) company abbreviation: Beijing Bayi Space Lcd Technology Co.Ltd(688181) Beijing Bayi Space Lcd Technology Co.Ltd(688181)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should go to www.sse.com com. cn. The website carefully reads the full text of the annual report. 2 major risk tips
The company has described the possible risks in this report. Please refer to “IV. risk factors” in “section III Management Discussion and analysis” of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5. Zhitong Certified Public Accountants (special general partnership) has issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
The company’s profit distribution plan for 2021 is: on the basis of comprehensively considering the company’s financial situation, future business development needs and the interests of investors, and fully considering that the company is currently in a period of rapid development, the continuous expansion of business scale and the need for large capital investment in R & D investment, new project implementation and share repurchase, in order to better safeguard the long-term interests of all shareholders, the company plans not to carry out profit distribution in 2021, The capital reserve shall not be converted into share capital.
The company’s profit distribution plan for 2021 has been deliberated and approved at the 14th meeting of the Fourth Board of directors and needs to be submitted to the general meeting of shareholders for deliberation. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock category stock exchange stock abbreviation before stock code change stock abbreviation and section
A-share Shanghai Stock Exchange Beijing Bayi Space Lcd Technology Co.Ltd(688181) Beijing Bayi Space Lcd Technology Co.Ltd(688181) not applicable
Scientific innovation board
Profile of the company’s depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information: Secretary of the board of directors (domestic representative of information disclosure)
Name: Xue Xiuyuan
Office address: yard 20, dongliushui Road, Yanshan District, Beijing
Tel: 01069762688
E-mail [email protected].
2. Introduction to the company’s main business during the reporting period (I) main business, main products or services
The company’s main business is the R & D, production and sales of liquid crystal display materials. Its main products are a variety of mixed liquid crystal materials such as high-performance thin film transistor TFT (thinfilm transistor), which are widely used in the field of terminal displays such as high-definition TV, smart phone, computer, on-board display and intelligent instrument. （2） Main business model
According to the specific needs of liquid crystal panel manufacturers for liquid crystal materials, the company customized and developed the mixed liquid crystal products required by customers. After passing the customer test and certification, the company purchased basic chemical raw materials, intermediates, coarse single crystals and other main raw materials, customized and produced specific liquid crystal material products for specific customers, and continuously delivered products to customers and received payment for goods according to customers’ purchase orders. The details are as follows:
1. R & D mode
In view of liquid crystal display materials, especially high-performance hybrid liquid crystal materials, which are highly monopolized by a few foreign enterprises, and the characteristics of continuous high-performance and rapid renewal of display materials, the company adopts the R & D strategy of driving the market with technology and implements the R & D mode focusing on independent R & D. Specifically reflected in:
(1) Forward looking technology research and development
By strengthening academic exchanges with industry experts outside China, the company timely grasps and follows up the development trends of international display materials and new product development trends, determines the research direction, organizes special research groups, carries out relevant technical research, product development and patent application, and forms a reserve of new products and new projects.
(2) Customer demand oriented product R & D
Based on the specific performance index requirements of customers for relevant products, the technical personnel of the company formulate, review and implement relevant R & D schemes and plans, complete the development of the product in the small-scale test stage, enter the pilot test stage after preliminary certification by customers, and form complete process and technical documents for large-scale production after the pilot test reaches stable mass production.
2. Procurement mode
The upstream suppliers of the company are basic chemical manufacturers and other liquid crystal material manufacturers. According to the requirements of the quality management system, the company has established a complete supplier selection and control system. According to the supplier evaluation standard, after assessing the product quality and guarantee system, supply capacity, price, account period, service and other aspects of upstream enterprises, determine qualified suppliers, form a list of qualified suppliers and carry out long-term cooperation.
The procurement department of the company orders raw materials from suppliers in the list of qualified suppliers according to the article demand plan provided by the demand department, and is responsible for tracking and handling the quality of raw materials. The storage department is responsible for the accurate receipt and delivery, preservation and material loss management of materials, and completes the receipt and inspection together with the procurement department; The quality inspection department is responsible for verifying the incoming quality of raw materials, and can handle warehousing only after passing the inspection; The finance department reviews the payment according to the settlement method of the purchase contract. The company purchases according to the qualified supplier management system and the refined supply chain management mode. Comprehensively evaluate the product quality, supply stability and price to ensure the stability and reliability of raw material supply.
3. Production mode
The company’s production mode is mainly order production mode and stock production mode. According to the specific business characteristics, the company relies on the NC enterprise resource management system, MES production management system and QEHS quality management system to realize the production information management, so as to achieve the rapid response and accurate judgment of market order prediction, inventory purchase linkage and comprehensive planning and scheduling, ensure the supply of goods and reduce the safety stock. Through the rapid summary of information systems in the supply chain, complete the transformation from production experience to productivity, and improve production efficiency.
It lays a foundation for realizing the intelligent management of factory digital management and lean production.
4. Sales model
Liquid crystal materials are highly customized products for specific customers. After being certified by downstream panel manufacturers and shortlisted in its supply chain system, the company established a long-term and stable cooperative relationship and entered the stage of mass production. Downstream manufacturers generally issue purchase orders to the company according to their own production plans. The company organizes production and delivers products on time according to customer orders.
5. Customer support model
Customer support is a team operation mode led by the sales department and coordinated by multiple departments. The main purpose is to provide customers with all-round technical support and services before, during and after sales.
The sales department is responsible for the overall business connection of customers, information acquisition and technical and business communication organization at all levels; The product R & D department is responsible for the development of new products and the improvement of performance and quality of existing products; The quality control department is responsible for the provision and docking of quality documents related to the customer’s quality and environmental management system; The technical support department is responsible for helping customers solve the problems encountered in the use of the company’s products or the problems of the customer’s own process of products; The commerce department is responsible for the processing of customer products and sample orders.
（3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
(1) Development stage
The display panel industry is characterized by the continuous progress of display technology, the continuous improvement of production equipment level, and the continuous reduction of cost and selling price. China’s excellent panel producers continue to strengthen their investment in technology and equipment, and gradually occupy the dominant position in global competition, thus making the global display panel industry chain continue to move to Chinese mainland. The Chinese mainland has become the world’s largest producer of new display capacity and shipment, and is the manufacturing base of the global new display industry.
With the continuous improvement of China’s new display panel production capacity, the demand for upstream and downstream industries, especially the demand for materials, has also increased significantly. However, due to the late start of development, high technical barriers and great difficulty in R & D, on the whole, all kinds of materials required by China’s new display industry rely heavily on imports, and the localization rate is still not high.
With the continuous efforts of relevant Chinese enterprises, the localization rate of liquid crystal materials is also gradually increasing. Taking the company’s main product TFT mixed liquid crystal materials as an example, after years of efforts, the company has formed a complete intellectual property system in the links of intermediate preparation, single crystal synthesis and purification, mixing and liquid crystal panel detection. The company has achieved a number of technological breakthroughs in TFT liquid crystal materials, and has become one of the few enterprises capable of producing high-performance mixed liquid crystal materials in China.
During the 14th Five Year Plan period, with the continuous expansion of China’s display panel production capacity, the localization rate of key materials will be further improved. Among them, liquid crystal materials, as the core materials in TFT-LCD, will continue to be in the stage of rapid development.
(2) Basic features
TFT mixed liquid crystal material manufacturers are shortlisted in the supply chain system of downstream liquid crystal panel manufacturers, and usually go through the rigorous certification process of panel manufacturers. The certification process generally needs more than three years of product verification and import process. Therefore, once liquid crystal material enterprises enter the supply chain system of downstream liquid crystal panel manufacturers and form batch supply, it indicates that their products are not significantly different from their competitors in quality and performance.
Liquid crystal materials are highly technology intensive industries. The core technology and patents of high-performance hybrid liquid crystal materials have been monopolized by foreign-funded enterprises such as Germany and Japan for a long time. At present, the global TFT liquid crystal material market is basically monopolized by Merck in Germany and JNC and DIC in Japan. Merck is in a leading position in the high-performance TFT liquid crystal material market.
With the support of national policies and the joint efforts of panel enterprises and material enterprises, in recent years, China’s local liquid crystal material enterprises have gradually moved closer to international enterprises in terms of indicators and performance by increasing R & D efforts, breaking through technical barriers and closely cooperating with downstream panel enterprises. Relying on the advantages of cost performance and technical service, they have gradually won the recognition of customers, and the localization rate of materials has also been continuously improved. In terms of technical development capacity, domestic LCD materials have been able to meet the needs of LCD materials with various specifications, including mobile phones, laptops, desktop displays, TVs and even vehicles. The overall technical capacity has a small gap with foreign countries. In terms of market share, some domestic panel customers have changed from mainly imported LCD materials to mainly domestic LCD materials, supplemented by imported LCD materials, Overseas panel manufacturers are also increasingly importing domestic liquid crystal materials.
(3) Main technical threshold
There are three main links in the manufacturing process of liquid crystal materials: synthesis, purification and mixing. The manufacturing process integrates complex chemical synthesis, purification and mixing technology and physical property detection and analysis, which fully reflects the highly technology intensive industry attribute. Liquid crystal materials have high requirements for thermal stability, chemical stability, electrical stability, optical stability, voltage retention, viscosity, resistivity and other indicators. The stability of quality is directly related to the comprehensive performance of products of downstream panel enterprises. High performance TFT hybrid liquid crystal materials rank at the upstream end of the liquid crystal display industry chain and are the core materials for the production of liquid crystal panels. The R & D and manufacturing process of hybrid liquid crystal involve the research on the relationship between display and materials, compound structure design and synthesis, quality analysis and standard establishment, forming technical barriers in the industry.
With the popularization and upgrading of display devices, the requirements for key indicators such as response speed, contrast, viewing angle and transmittance of display panel are continuously improved, and the electrical properties, optical properties, thermal stability and chemical stability of liquid crystal materials are also improved. The performance and quality of liquid crystal materials directly determine the overall display performance of liquid crystal panels, prompting panel enterprises to strictly review the qualification of liquid crystal material suppliers, and the certification cycle is relatively long. The rise of China liquid crystal materials company has gradually broken the international monopoly of liquid crystal display materials, broken through the material supporting bottleneck faced by China’s display industry in the process of rapid development, and improved the independent innovation ability of China’s liquid crystal panel industry. 2. Analysis of the company’s industry position and its changes
The core technology and patents of high-performance hybrid liquid crystal materials have long been monopolized by Merck in Germany and JNC and DIC in Japan. Among them, Merck is in a leading position in the market of high-performance TFT liquid crystal materials. Since its establishment, the company has been committed to the research and development of liquid crystal materials. Through years of hard work and independent research and development, the company has continuously enriched its product line, from the initial TN / STN series liquid crystal products to the successful mass production of TFT high-performance mixed liquid crystal materials, breaking the international monopoly.
The company is the main drafter of China’s national standard for liquid crystal display materials. Several liquid crystal material products are in the forefront in China and have successfully realized industrialization. The company is also a strategic supplier of BOE’s domestic TFT liquid crystal materials, a leading enterprise of China’s liquid crystal panels, with customer resource advantages and market influence. The company has independently developed panel residual image analysis and measurement technology to further improve the technical service level of customers. Through continuous R & D investment, the company has further strengthened its technical advantages and developed various high-performance liquid crystal materials that adapt to the technical development trend of the industry. Due to the company’s comprehensive competitive advantages in product quality, price, service and supply guarantee, the company has become a strategic partner of BOE and has been recognized by Huike Co., Ltd., Taiwan qunchuang and other large panel customers.
In 2021, the company actively responded to the impact of the epidemic, strengthened supply chain management and epidemic prevention measures to ensure normal production and delivery, and continued to strengthen market development and research and development. The company maintains a sustained and stable business cooperation relationship with its core customers. The sales volume and market share of the company’s core product TFT mixed liquid crystal materials continue to increase, customers are further expanded, and the company’s industry position is not stable
