(1) Basic project information
This raised investment project is used to produce products such as optical components, biometric optical components and precision thin film optical panels for mobile smart terminals, mainly supporting high-end smartphones and smart wearable devices.
1. Imaging optical components
imaging optical components are mainly infrared cut-off filter components. The infrared cut-off filter achieves visible light transmission and infrared light cut-off effects by plating an infrared cut-off film layer on the surface of optical components, allowing the photosensitive chip to simulate the visual range imaging of the human eye. The main categories of infrared cut-off filters include: white glass infrared cut-off filters, blue glass infrared cut-off filters, resin infrared cut-off filters, coated infrared cut-off filters and composite infrared cut-off filters.
infrared cut-off filter assembly is an extension of infrared cut-off filter products. It refers to the assembly service of infrared cut-off filters and brackets to provide downstream customers with more choices. The downstream of
imaging optical components is mainly divided into three major types according to product application fields: mobile phone camera modules, security monitoring systems and vehicle camera modules.
2, biometric optical components
biometric optical components mainly include narrow-band filter components, optical under-screen fingerprint filters, patterned coated wafers and other products, which are the core components of biometric products. Among them, the narrow-band filter mainly filters the visible light and other infrared light that interfere with infrared imaging, allowing the 850nm or 940nm band light required for imaging to pass through, reducing the imaging signal-to-noise ratio and improving the recognition accuracy; the patterned coating is mainly used for structured light emission End laser switch protection and thin under-screen fingerprint product chip patterned filter film applications. After the
biometric optical components are handed over to downstream customers for module assembly, near-infrared camera modules are produced to achieve typical functions such as face/iris (biological) recognition and 3D modeling/tracking. Through near-infrared bandpass filters, Apple/ Samsung and other manufacturers have implemented face/iris recognition functions on mobile phones, while Google /oculus and other manufacturers have implemented 3D construction on tablets/wearable devices/autonomous driving. Model/Trace.
3, Mobile smart terminal precision thin film optical panel
Mobile smart terminal precision thin film optical panel mainly includes smart phone screen front cover, smart phone battery case cover, smart watch cover and camera optical window cover, which are indispensable for smart terminal products. One of the few components. It uses the UV transfer GDF process (transfers textures or digital graphics to the glass explosion-proof film), PVD coating (prevents fingerprints and oil stains from adhering, enhances surface wear resistance, and makes the hand feel warm and smooth), 2.5D , 3D processing and other technologies are applied to glass or sapphire protective panels, giving smart terminal devices better functionality and better optical properties.
In summary, after this project is completed and reaches production capacity, the company will have an additional annual production capacity of 120 million sets of imaging optical components, 200 million sets of biometric optical components, and 150 million sets of precision thin film optical panels for mobile smart terminals.
(2) Project feasibility and market prospects
1, in line with industry development needs
(1) in line with industry development policies
The rapid growth of global consumer electronics demand and the rapid update of supporting hardware have enabled the upstream optical optoelectronics industry to also gain Rapid development, market demand is growing rapidly, and application fields are constantly expanding. In recent years, our country has formulated a series of development policies aimed at promoting the rapid development of my country's optical optoelectronics industry. The main downstream products of the industry in which this investment project is located are related products of optical components for smart mobile terminals. They are also listed as key products of the new generation of information industry in "Made in China 2025" and "Guidance Catalog of Key Products and Services for Strategic Emerging Industries (2016)" First, this project is in line with the national industrial policy guidance.
Currently, my country's optical and optoelectronic components industry is in a period of rapid development.my country's optical optoelectronic components industry has formed a relatively complete optical industry chain in the Yangtze River Delta and Pearl River Delta regions. The implementation of this investment project will help the company further play a demonstration and leading role, promote localized supporting and industrial development, improve independent innovation capabilities, enhance the overall technical level and international competitiveness of the industry, and promote the further development of my country's optical optoelectronics industry.
(2) In line with the industry development trend
With the maturity of smart terminal technology and the promotion of communication technology, smart touch screen mobile phones, tablets, wearable devices and other smart terminal products have become the choice of more consumers; at the same time, AR/VR, vehicle-mounted The extended applications in emerging fields such as drones, smart homes, etc. have simultaneously promoted the strong demand for precision optical components in the market, and have also put forward new requirements for the performance and appearance of precision optical components.
① Imaging optical components
With the advent of the 5G network commercial era, a new wave of replacement has arrived, and global smartphone shipments are rising; end users’ requirements for the quality of mobile phone photography continue to increase, which promotes front and rear multi-camera models. With the increase in the penetration rate of and , downstream customers' demand for the company's imaging optical components, including infrared cut filters, will maintain rapid growth.
② Biometric optical components
In recent years, as the smartphone industry has generally shifted from incremental growth to stock competition, the optical field has become an important direction for smartphone innovation. Driven by the rapid development of global biometric applications, downstream module and terminal manufacturers continue to develop application scenarios such as 3D imaging, under-screen fingerprints, periscope cameras, VR/AR, etc.
has promoted the growth in demand for biometric-related products. Apple's iPhone "Evolving to "3D+Dynamic"; the increase in full-screen penetration has made under-screen fingerprint unlocking a new trend in the development of smartphones. In addition, biometric identification has been applied in smart homes, financial payments, drones, vehicle cameras and other fields. The company actively seizes opportunities for optical technology innovation, uses its technology and market reserve capabilities in 3D sensing and other aspects, and focuses on the development of biometrics including narrow-band filters , optical under-screen fingerprint filters, patterned coated wafers, etc. Optical components to enjoy the dividends of the rapid development of the biometric market.
③ Precision thin film optical panel for mobile smart terminals
5G The development and application promotion of communications, wireless charging and other technologies have increased the requirements for mobile phone signal transmission, and the extended application of emerging fields in the optical component industry has affected the performance, appearance protection and protection of precision thin film optical panels. Visual effects, etc. also put forward new requirements. As non-metallic materials that replace metal covers, 2.5D and 3D glass covers have become the preferred choice for future smartphone covers due to their excellent signal transmission capabilities, comfortable feel, and perfect fit. Sapphire is widely used in mobile phone cameras and smart watch protective covers due to its high hardness. Precision thin film optical panel manufacturers achieve different properties such as high optical transmittance, impact resistance, wear resistance, waterproof, anti-fog, precision texture, and aesthetics by processing the surface of non-metallic materials such as glass or sapphire. The company's complete technical system in the fields of optical materials and precision optical film technology can provide mature technical support for panel surface processing.
In summary, the company will grasp the development trend of the industry through this investment project, expand the production scale of imaging optical components, biometric optical components and mobile smart terminal precision thin film optical panels, realize the company's technological innovation and product upgrades, and enhance the company's core competitiveness , while improving the overall technical level and international competitiveness of the industry, with good economic and social benefits.
2. The downstream market has broad prospects
(1) Imaging optical components
① The strong demand for consumer electronics products in the 5G era has expanded the market scale of imaging optical components
In recent years, the strong market demand for global consumer electronics products has driven the upstream optical optoelectronic components industry. of rapid development. With the advent of the 5G era, smartphones are expected to usher in the need for upgrading. At the same time, the continuous upgrading of related consumer electronics hardware equipment not only directly promotes the market demand for optical cameras, but also indirectly expands the market size of imaging optical component products.
② The penetration rate of multi-camera smartphone cameras has increased, boosting the demand for imaging optical components.
Driven by product upgrades, multi-camera smartphone cameras have become a mainstream trend. According to statistics from technology market research organization Counterpoint, in July 2018, about 42% of smartphones sold globally were equipped with at least dual cameras, while this proportion was only about 3% 24 months ago; multi-brand dual cameras and The penetration rate of the above cameras has reached a high level, with Huawei reaching 84%, Vivo reaching 61%, and Apple reaching 49%;
In March 2019, the penetration rate of Huawei's three cameras and above reached 23%, and Vivo reached 17%. According to Counterpoint’s forecast, the penetration rate of cameras with three or more cameras will reach 15%, 35% and 50% in 2019, 2020 and 2021 respectively. Flagship phones launched from the end of 2018 to 2019 even began to be equipped with four rear cameras. In addition, front-facing dual cameras have also begun to be used in smartphones. For example, the Galaxy S10+ released by Samsung in February 2019 used a 10-megapixel + 8-megapixel front dual-camera module, and the Mate30 Pro released by Huawei in September 2019 Using a 32-megapixel + ToF front dual camera module, it is expected that the penetration rate of front dual cameras will further increase in the future.
As users' requirements for photography increase, smartphone cameras not only increase in number, but also expand in functionality, gradually evolving from single pixel improvements to large aperture, ultra-wide angle, periscope telephoto, ToF, and movie lenses. The introduction of other special lenses, for example, Huawei Mate30 Pro has four rear cameras, which correspond to a 40-megapixel movie camera + a 40-megapixel super-sensitive camera + an 8-megapixel telephoto camera + a 3D depth camera. It can be seen that global smartphones have fully entered the multi-camera era, and the continuous upgrading of the number and functions of cameras will drive the continued growth of the company's demand for imaging optical component products.
③ Extension of other application fields, enriching the demand for imaging optical components
In addition to smartphones, vehicle cameras and security high-definition cameras are the other two major downstream application fields of imaging optical components.
With the continuous improvement of road traffic safety and automobile safety requirements, as well as the rise of ADAS and the future autonomous driving market, vehicle camera module manufacturers have ushered in good development opportunities and have also put forward higher requirements for the quantity and quality of vehicle lenses. , thereby indirectly driving the market demand for imaging optical components.
Due to the turmoil in some parts of the world and the increasing security risks faced by various organizations, more and more cities have begun to adopt security surveillance systems to deal with urban security threats, and the global demand for security surveillance cameras has gradually expanded. In addition, high-definition has become a consensus in the industry, and the widespread use of high-definition security cameras has further boosted the demand for imaging optical components.
(2) Biometric optical components
The company's biometric optical component products mainly rely on core technologies such as 3D imaging and are used in areas such as face recognition, fingerprint recognition, iris recognition, gesture recognition, financial payment, 3D modeling, and motion tracking. As digital imaging moves toward machine vision, more types of smart devices emerge, product imaging applications continue to expand, and the era of digital imaging is transforming into the era of image analysis.
According to data from Sihan Industrial Research Institute, the market size of the global biometric technology industry has grown from US$6.08 billion in 2010 to US$13.190 billion in 2017, with an average annual compound growth rate of 11.73%, and is expected to reach 2021 by 2021. Around $30 billion. Among them, fingerprint recognition technology accounts for the highest proportion in the global biometric identification market, accounting for 56.70% in 2017, followed by face recognition technology. Although it only accounts for 16.40%, it develops rapidly. From 2010 to 2017, The average compound growth rate reached 29.61%. my country's biometric market size has also maintained rapid growth. The market size in 2018 was 17.01 billion yuan, with an average annual compound growth rate of 18.97% from 2012 to 2018, and is expected to reach 37.9 billion yuan in 2023.
① Wide application of 3D sensing face recognition
There are three mainstream solutions for 3D sensing, namely structured light, ToF and stereo vision. Structured light is based on the principle of laser speckle and builds 3D models by collecting three-dimensional data of objects. It is mainly used for short-range 3D face recognition and has been applied in many models such as iPhone X and Huawei Mate20 Pro. ToF is based on the principle of reflection time difference. It can cover medium and long distances and is mainly used for face recognition and shooting effect enhancement. It has been used in many models such as Huawei Mate30 Pro and OPPO R17 Pro. Stereo vision requires distance measurement and triangulation, which is costly and has limited use environment. , not widely used yet. In addition to the front and rear cameras of smartphones, 3D sensing is also used in financial payment, AR/VR, games, industrial manufacturing and other fields. For example, Alipay 's "Dragonfly" face payment device successfully realized "face scanning" payment. According to forecasts from industry research institute Yole, the global 3D sensing market is expected to grow from US$2.1 billion in 2017 to US$18.5 billion in 2023, with an average annual compound growth rate of 44%.
company has a layout and first-mover advantage in the fields of narrow-band filters, optical under-screen fingerprint filters, patterned coated wafers and other core optical components for 3D sensing. Its products have core competitiveness and are a leading player in the 3D sensing market. The expansion will continue to increase the demand for the company's related products.
② Wide application of under-screen fingerprints
The most common fingerprint identification solution is capacitive, but it requires a separate identification device, such as front-press fingerprint identification, back fingerprint identification, and side fingerprint identification, which has a certain impact on the appearance design. Therefore, with the popularity of the concept of full-screen mobile phones and the increase in OLED penetration, under-screen fingerprint technology, which is beneficial to maximizing the screen-to-body ratio, has emerged and has become one of the new trends in the development of smartphones. According to market research firm WitsView, the penetration rate of full-screen mobile phones was only 8.7% in 2017 and will reach 92% by 2021. There are currently two main solutions for under-screen fingerprint unlocking: optical and ultrasonic. The optical solution is relatively mature and mainly uses the principle of refraction and reflection of light to detect the fingerprint circuit and form a fingerprint image that can be used for identification. It is low-cost and is widely used in the smartphone market. Relatively popular. Most of the existing under-screen fingerprint models use optical solutions, such as Huawei P30, Vivo V27, OPPO Reno, Xiaomi 9, etc.
According to data forecasts from the international consulting company HIS Markit, the shipment volume of optical fingerprint recognition modules is expected to exceed 90 million units in 2018; it will continue to maintain rapid growth in 2019, with shipments expected to exceed 175 million units; and it is expected to exceed 280 million units by 2021. , thus promoting the rapid growth of market demand for under-screen fingerprint-related optical components.
③ Wide application in other fields
In addition to face recognition and under-screen fingerprint unlocking, biometric technology is also widely used in iris recognition, gesture recognition, 3D modeling, motion tracking and virtual display fields.
Due to the advantages of iris recognition , such as high security and ease of use, this technology has been widely used in some industries (such as treasury, security engineering, etc.). South Korea's Samsung Company installed iris recognition technology in the Galaxy Note 7 released in August 2016, and received high praise from the market, setting a good example for future smartphones equipped with iris recognition technology.
gesture recognition will also become the next important application field for consumer electronics such as smartphones. Whether it is games, entertainment, and interaction in the consumer market, or medical, industrial, military, etc. in the commercial field, a rich range of hand movements are required to participate, so gesture recognition has a very wide range of application scenarios. For smartphones, with the widespread application of gesture recognition, it will cover many application scenarios including mobile phone selfies, games, web browsing, shopping, etc., greatly improving the user experience. Smartphones will also move from the touch screen era to The era of gesture recognition. For example, the Mate30 Pro released by Huawei in 2019 uses a dual-camera solution + gesture recognition sensor on the front. In recent years, international giants such as Apple, , Microsoft , Google, Sony, and Samsung have all accelerated their deployment in the field of gesture recognition applications.
biometric optical components are also widely used in the fields of 3D modeling, motion tracking and virtual display. With the widespread application of 3D modeling and motion tracking products, as well as the rapid increase in shipments of AR and VR terminal products, the market capacity of biometric optical components will also be further expanded.
(3) Mobile smart terminal precision thin film optical panel
① 5G communications, wireless charging and other technological advances provide good prospects for the optical panel industry
Metal panels are mainstream smartphones due to their excellent texture, comfortable feel, strong drop resistance, and significant heat dissipation. Standard configuration of the model. With the development and application promotion of 5G communications, wireless charging and other technologies, smart devices have higher requirements for signal transmission, and the signal shielding defects of metal panels have become a major bottleneck in their development, resulting in an increasing demand for non-metallic panels. 2.5D and 3D glass panels have become the new favorites of future smartphone panels due to their thinness, transparency, cleanliness, anti-fingerprint, anti-glare, hardness, scratch resistance, and good weather resistance. The arrival of the 5G era will promote the upgrading of smart devices, thereby significantly increasing the demand for glass covers. According to the "Touch Panels, Cover Glass and CPI" report issued by IHS Markit, an international authoritative financial information service provider, global shipments of front and back cover glass for mobile phone touch panels are expected to reach 2.4 billion pieces in 2019, an increase from 2018 of 2.1 billion pieces, an increase of 13.9%. This steady growth is expected to continue over the next two years, with growth of 11.4% in 2020 and 7.3% in 2021.
② The approach of the 5G era and the demand for smart wearable devices have increased the application of sapphire in the consumer electronics market.
Sapphire is mainly used in the field of consumer electronics to protect mobile phone cameras due to its scratch resistance, good strength, high safety performance, and low risk of anti-breakage. Covers, fingerprint recognition HOME key covers, smart watch protection covers, etc. The approach of the 5G era has ushered in a wave of mobile phone upgrades, which in turn has driven the growth in demand for sapphire mobile phone camera protective covers. At the same time, as the main application of sapphire in the field of consumer electronics, smart watch protective covers have broad prospects in the future. According to data from IHS Markit, an authoritative international financial information service provider, shipments of smart watch displays in 2018 were 149 million units, a year-on-year increase of 42%. According to estimates by U.S. market research firm IDC, global shipments of smartwatches are expected to reach 190.4 million units in 2022. Therefore, the demand of the terminal market will drive the development of the upstream sapphire protective cover industry.
3. Improve the company's profitability
According to the "Feasibility Research Report on Optical Component Technical Transformation Project for Intelligent Terminals of Zhejiang Crystal Optoelectronics Technology Co., Ltd." issued by Zhejiang Jingwei Engineering Project Management Co., Ltd. (hereinafter referred to as "Feasibility Study on Optical Component Technical Transformation Project") Report"), the annual sales revenue of this project is expected to be 1.892 billion yuan after reaching production, and it is expected to create an annual after-tax net profit of 213.5361 million yuan. The project is expected to have good benefits and will enhance the company's profitability and bring generous investments to shareholders. Return.
In summary, the company actively seizes the market opportunities of 5G network, multi-camera smartphones, and biometric development, and closely follows the cutting-edge technologies of the optical industry to complete its business layout.By introducing advanced equipment, this investment project will newly expand the industrial base for optical components for smart terminals. While expanding the production scale of the company's basic business imaging optical components, it will also rely on the company's expertise in precision optical cold processing, precision optical films, semiconductor optics, 3D imaging, hybrid With technological accumulation and competitive advantages in core areas such as display, we focus on sensing industries such as biometric identification, and extend our product structure horizontally to the field of precision thin film optical panels to achieve efficient collaboration between original and new businesses. This investment project will help the company upgrade its product structure, further expand its market share, consolidate its leading position in the industry, and strengthen its profitability and core competitiveness. At the same time, it will further improve its production technology and processing technology by introducing advanced foreign equipment. Therefore, this project has good feasibility in terms of industry development needs, market prospects and economic benefits.
(3) Project investment scale
The total investment of this fundraising project is expected to be 1,459.2162 million yuan, of which construction investment is 1,342.2162 million yuan, and foundation working capital is 117.000 million yuan.
(4) Product plan and production scale
This fundraising project is used to produce imaging optical components, biometric optical components and precision thin film optical panels for mobile smart terminals. The specific production scale is shown in the table below:
(5) Project implementation body
Ben The main body of the project implementation is Crystal Optoelectronics .
(6) Project Site Selection
The construction land for this project is located in the Taizhou Circular Economy Industry Cluster, specifically located at No. 2198 Development Avenue. The company legally owns the ownership of the land where the project is located, and its "State-owned Land Use Certificate" number is Jiao Guoyong (2016) No. 000490 and Jiao Guoyong (2016) No. 000491.
(7) Project Implementation Progress
The construction period of this project is 24 months.
(8) Project Benefit Analysis
According to the "Optical Component Technical Transformation Project Feasibility Study Report", after the project is completed and reaches production, it is expected that the normal annual sales revenue will be 1.892 billion yuan, the after-tax profit will be 213.5361 million yuan, and the after-tax financial internal rate of return It is 22.15%, and the after-tax investment recovery period is 5.51 years (including the construction period).
(9) Project filing and environmental protection aspects
As of the date of announcement of this plan, the feasibility study report of this project has been prepared, the project filing work has been completed, and the relevant environmental impact assessment is in progress.
