In the 1960s, American TV king RCA invented the LCD screen and wanted to apply it to TV manufacturing. However, big-name companies including Honeywell , IBM and GE tried one after another, and all ended in failure. The technology was later bought by Japan, and companies such as Sharp used a pragmatic attitude to apply LCD screens to small-sized screens such as calculators and watches. After continuous innovation and development, LCD screen products not only returned to the United States again, but also created a business myth around the world.
With the development of globalization in recent years and the transfer of the manufacturing industry chain, China is already one of the world's largest producers of LCD display products. The LCD display industry has also become an important part of China's electronic information industry. Driven by development strategies such as "Made in China 2025", "Internet of Everything", and "5G", LCD displays are opening a new round of application innovation in China.
Guangxi Tianshan Electronics Co., Ltd. ( stock code :301379 short for: Tianshan Electronics) is one of the important participants and promoters of this innovation. As a leading supplier of domestic professional LCD display industry, Tianshan Electronics has continuously improved product performance and expanded product application scenarios through professional customization and continuous innovation over the years. It has been recognized by many downstream end customers and the scale of the industry continues to expand. With the continuous growth of comprehensive strength, Tianshan Electronics also successfully listed on the Shenzhen Stock Exchange GEM on November 1, and ushered in a new stage of development under the recognition of the capital market.
Deeply engaging in the sub-field of liquid crystal display,
Innovation drives product application continuous expansion
Tianshan Electronics was founded in 2005 and is mainly engaged in the research, design, production and sales of customized LCD screens and display modules in the professional display field. The products include monochrome LCD screens, monochrome LCD display modules and color LCD display modules, among which color LCD display modules account for the largest proportion of its revenue.
Unlike the commonly recognized application fields of computers, mobile phones, TVs, etc., Tianshan Electronics' LCD display products are mostly used for the interaction and control of electronic information products, such as air conditioning remote control , POS machine, smart meter , blood glucose meter , blood pressure meter , car dashboard, etc.
Tianshan Electronics, just like Sharp at that time, worked hard in these sub-tracks, and continuously innovated, and accumulated a series of core technologies. Through the application of these core technologies, it effectively solved many technical problems in the production process of monochrome LCD screens, monochrome LCD display modules, and color LCD display modules.
For example, through the step electrode filling technology of VA products and the PI printing uniformity control technology, Tianshan Electronics has effectively solved the problems of directional memory stripes, display brightness and contrast inconsistent, greatly improving the visual effect of the LCD screen. The company's product contrast ratio reaches a maximum of 5000:1, far higher than the average level of 3000:1 in the same industry, and the relevant technical capabilities reach the advanced level in the industry.
By developing special key core process technologies such as firm film, acid engraving, film removal and orientation, Tianshan Electronics has greatly improved the reliability of the product, achieving a test value of water droplet angle of less than 10 degrees on the glass surface; achieving high temperature conditions of 85 degrees, the product reliability is up to 2000H, which is higher than the average level of 1000H in the same industry, effectively ensuring the performance of some displayed products in complex environments.
In addition, in order to ensure high reliability and high performance of the product, Tianshan Electronics also effectively solves the problems of traditional TAB technology using ACF materials for hot pressing, such as unsolid connections and failure of electrical performance reliability when using ACF materials; through the development of high-precision STN product production technology, new seam design schemes, chrome plate cleaning technology and an exposure platform that can automatically adjust gaps according to glass thickness and glue thickness errors, to ensure the best exposure effect.
As of now, Tianshan Electronics has accumulated 55 patents, including invention patents 4 and 8 core technologies, including the company's independently developed high-contrast VA production technology, high-reliability liquid crystal display product production technology, high-precision STN product production technology, full-view VA production technology, negative display product light leakage control technology, VA display module built-in touch technology, high-air-tight dust-proof TFT liquid crystal module production technology, high-reliability TAB product production technology and other core technologies.
is also due to continuous innovation and exploration. Tianshan Electronics' product application scope is very wide. The company's independently developed high-grade protective mask LCD light valve, high-bright TFT LCD module, artificial intelligence terminal integrated black TFT LCD module, anti-interference ability LCD module, A/D drive board and other advanced technology products have been applied to projects of well-known brand customers in the fields of industrial control and automation, smart financial terminals and smart homes. As of now, the company's mass-produced product specifications and models have exceeded 5,000.
Reliable and efficiently won customer recognition,
Mature supply chain drives stable performance growth
An important reason why the United States has difficulty in completing the commercialization of LCD screens is that it has not established a large-scale mass production supply chain. The LCD display industry is a capital-intensive, technology-intensive and labor-intensive industry. It requires not only huge capital investment and a large amount of labor investment, but also a certain amount of technology accumulation, and the industry concentration is relatively high.
At present, the global LCD display industry is mainly concentrated in Japan, South Korea, mainland China and Taiwan. During the COVID-19 pandemic, the production and operation order in some overseas regions has been greatly affected. At the same time, due to the increase in labor costs in Japan, South Korea, and other countries and Taiwan in recent years, competitiveness has gradually declined, and the production of the LCD display industry has gradually shifted to mainland China.
In this process, Tianshan Electronics has first built a complete and reliable supply chain system, which can provide timely, flexible and large-scale comprehensive solutions according to customer needs to meet the increasingly diversified needs of downstream. In addition, Tianshan Electronics also has unique location advantages. The company is located in Guangxi, close to the Pearl River Delta LCD display industry cluster, rich human resources, and borders ASEAN , which is conducive to expanding ASEAN customers and product exports and has a large room for growth.
More importantly, Tianshan Electronics also strictly controls product quality. The company has passed many certifications such as quality management system certification (ISO9001:2015), environmental management system certification (ISO14001:2015), laying a solid foundation for shaping its own brand.
is based on the above advantages that Tianshan Electronics has a good reputation and brand influence in multiple LCD display segments. With high-quality products and services, the company has formed a long-term strategic cooperation with Shenzhen Tianma for more than 10 years, and has directly or through technical service providers to establish long-term and stable cooperative relationships with well-known companies such as Gree , Honeywell, Hikvision , Johnson Controls, LG, and has been recognized as core suppliers, high-quality suppliers or green suppliers by customers such as Galanz , Sagemcom, Gemstar, Oriental Communication , Sony, and Sony respectively.
With the continuous growth of customer base and the gathering of leading customers in different application fields, the number of Tianshan electronic suppliers has also increased, and the supply system has become more perfect, providing strong support for the company's comprehensive service capabilities and the continuous expansion of business scale.From 2019 to 2021, Tianshan Electronics achieved operating income of RMB 560.8477 million, RMB 615.4125 million and RMB 108.9 million respectively; net profit attributable to shareholders during the same period was RMB 38.0841 million, RMB 47.8509 million and RMB 97.2271 million, with a rapid overall growth, especially with the growth of demand in downstream smart homes, smart financial data terminals and other application fields, the company's color LCD display module non-entrusted processing business sales revenue in 2021 increased by year-on-year.
In addition, in 2021, the global market share of liquid crystal display products required for Tianshan electronic air conditioner remote control, POS machine, smart meter, blood glucose meter, and blood sphygmomanometer products is about 13.69%, 3.97%, 9.21%, 2.01%, and 3.12% respectively. The liquid crystal display products required for telephone products account for about 8.50% of the number of exported telephones in my country. The company has established strong market competitiveness in many fields.
Downstream demand is growing diversified,
Break Production capacity Bottleneck Embrace new opportunities
After years of struggle, China has realized the process of finally moving from "following" and "running side by side" to "leading" in the LCD display industry. Now, China has become the region with the largest high-generation line production capacity of LCD panels in the world, and the domestic industry industrial chain is gradually improving. In the future, LCD display technology will continue to occupy the mainstream direction of display technology in the professional display field for a long time with its advantages such as high product maturity, high reliability and wide application fields.
At the same time, the trend of panel production capacity continuously shifting to mainland China has accelerated the aggregation of the industrial chain of the LCD display industry, and the domestic industrial chain has gradually improved. Tianshan Electronics is in the most core midstream manufacturing chain. With years of accumulation of technology and experience, it is expected to gain higher development space in the future.
1 The first is the smart home industry. With the promotion of 5G Internet of Things, the smart home market is developing rapidly. According to the research report of Southwest Securities , the scale of China's smart home market will grow from 252.1 billion yuan in 2017 to 575.3 billion yuan in 2022. The industry has huge room for development. The application scale of LCD displays in various products such as central air conditioners, induction cookers, washing machines, refrigerators, microwave ovens, sweeping robots, smart security, etc. is continuing to expand.
followed by the intelligent financial data terminal, and the LCD screen plays an important role in data display and human-computer interaction in the intelligent financial data terminal. With the rapid development of 5G and the Internet of Things, the demand for smart financial data terminals has grown rapidly, and the scale of the LCD display industry will also rise.
In addition, LCD display products are also an important part of many fields such as industrial control and automation, people's livelihood energy , vehicle electronics, communication equipment , and health and medical care. Its development has shown a stable upward trend in recent years. This is also indirectly confirmed by Tianshan Electronics' product sales data.
According to the prospectus, from 2019 to 2021, Tianshan Electronics' product revenue for smart home increased from 129.6531 million yuan to 269.5754 million yuan, product revenue for smart financial data terminals increased from 151.3786 million yuan to 263.2752 million yuan, and products for industrial control and automation applications increased from 81.162 million yuan to 164.4919 million yuan.
However, with the continuous expansion of the business and due to the constraints of production lines, Tianshan Electronics' production capacity is difficult to meet the rapidly growing product needs of downstream customers. According to the prospectus, in 2021, the capacity utilization rate of of Tianshan Electronics monochrome LCD display screen, monochrome LCD display module and color LCD display module will reach 109.33%, 94.5% and 113.48% respectively, which is close to saturation. It is urgent to expand the scale of the industry in order to better seize new development opportunities.
It is also for this time that Tianshan Electronics plans to raise 312.5629 million yuan of funds, mainly for the integrated photoelectric touch display module construction project, monochrome LCD display module expansion project, R&D center construction project and supplement working capital.
The photoelectric touch display integrated module construction project will enhance the production capacity of Tianshan Electronics medium and small-size color LCD touch display modules. The implementation of the monochrome LCD display module expansion project will break through the company's monochrome LCD display module production bottleneck. The implementation of the above projects will further strengthen the company's competitiveness in increasingly diverse downstream application scenarios, helping Tianshan Electronics gain a higher market share in the global market.
