html On the evening of November 13, Zhonghua Yingguan (hereinafter referred to as Huaying) suddenly released a major message and announced that it would apply for reorganization. Huaying's statement pointed out that both the company and its 100% controlled subsidiary Zhonghua Yingguan Co., Ltd. have an inability to repay debts. The company's dealings will have the right to declare the company's default on the credit contract. All unduly matured loans will need to be repaid immediately, which will further increase the company's operating capital gap, and will cause all creditors to accelerate the collection of debts from the company, resulting in the company's operating capital being severely insufficient and forced to stop production, and there is a risk of suspension of business or suspension of business. According to Huaying's statistics, the company's total liabilities are NT$34.8 billion (about RMB 7.83 billion). In order to ensure employee salaries and the payment of necessary operating expenses of the company, the board of directors has signed a two-paper trust contract with lawyer Ye Dayin, with the total amount of the trust being capped at 600 million yuan each. CPT production line
Data Source: AVIC Cloud Network (AVC) display device and system big data
Huaying currently has three A-Si production lines, among which Taiwan's production lines have been depreciated and have low operating costs. The newly built G6 generation production line in Fuzhou, the announcement shows that the investment amount is 12 billion yuan (including 8.7 billion yuan in capital and 3.3 billion yuan in bank loans). This time, Fujian Electronic Information Group, the second largest shareholder of Huaying Technology, requires Huaying to repay Huaying Technology's 3.3 billion yuan in loans, of which the overdue payment is about 2 billion yuan. On December 4, 2018, it issued a letter to urge it to request repayment, otherwise legal action will be taken, which is the main reason for the funding gap.
html On November 14, Huaying nitrogen supplier Lianhua was very dissatisfied with being told to reorganize in advance and distrust Huaying's future debt repayment ability. Therefore, the supply of nitrogen was stopped from the evening. Huaying's Yangmei and Longtan plants were paralyzed. On the 17th, Huaying's general manager Lin Shengchang responded to the refutation that employees were attending normal day and night shifts, and once the materials were resumed, they would be put into production immediately.Data Source: Huaying Financial Report, AVC Display Devices and System Big Data Organizer
The monthly shipment announced by Huaying can also be seen. Although the overall production capacity has increased year-on-year due to the newly built Huajiacai G6 production line, it is decreasing year-on-year in terms of the number of shipments and operating income. It can be seen that the operation of the newly built Fuzhou production line is not smooth. The Huajiacai project was mass-produced in July 2017 and began to depreciate. The production capacity was successively built in 2018, and the equipment was basically installed in the second quarter. Starting from the end of 2017, smartphones have developed towards full-screen. The 16:9 mobile phones originally produced by Huajiacai also need to switch to 18:9 full-screen. The production line switching and product production to customer certification time affect the progress of operating income climbing; in addition, Huajiacai focuses on embedded touch products (most of the new mobile phone designs in 2018 use notch, while the "bang-length" special-shaped full-screen is generally matched with embedded touch). Affected by the out of stock of TDDI ICs, the mass production time of some Huajiacai embedded touch mobile phone products was delayed, and the overall capacity utilization rate was low, which led to the operation of Huajiacai's 6th generation line below expectations.
CPT market distribution
Data Source: Huaying Fashuohui briefing, AVC display device and system big data sorting
Huaying mainly focuses on cell shipments, accounting for more than 90%. The market includes mobile phones (smartphones, feature phones), tablets, in-vehicle, industrial control and other application markets. Based on the production capacity, Huaying's overall production capacity is about 143K/M (equivalent to G6), accounting for about 6.5% of the world's sixth generation and below a-Si production capacity. If business is suspended, it will have a certain relief to the current oversupply of a-Si small and medium-sized market. According to the information learned by Aowei Cloud Network, Huaying plans to sell the 4.5 generation production line and retain the 6 generation production line. Huajiacai's 6 generation production line second phase project will be abandoned. has the following impacts for different market segments:
is aimed at the smartphone market: Huaying's direct customers are mainly module factories, mainly including Xinli, Dijing, Tongxingda, Helitai, etc., and the indirect customers are Huaqin, Longqi , Wingtai and other ODM customers. If Huaying finally suspends business, Caijing, BOE, Qunchuang, Longteng, etc. may benefit directly. For example, the current main size is 6.26HD+ products, ODM customers are Huaqin, Huaying, Caijing, BOE, and Qunchuang are panel suppliers, such as 5.7HD+ products, ODM customers are Longqi, module customers are Xinli and Tongxingda, and the corresponding panel manufacturers are Huaying, Caijing, etc.
CPT 2017 Tablet product structure
Data Source: AVC display device and system big data unit:%
For tablet computer market: Huaying’s customers are overseas international brands, and the size is mainly concentrated in about 7 inches. If business is suspended, the main competitors BOE, AUO, Qunchuang, and Caijing will benefit.
CPT 2017 car customer structure
Data Source: AVC display device and system big data unit:%
For the car market: Huaying car customers are Pioneer, Panasonic, Hangsheng, Shengli, etc., and the main products are Central Control CID, accounting for nearly 80%. If business is suspended, competitors will benefit Sharp, AUO, and LGD.
is aimed at the industrial control market: the industrial control market is wide, covering dozens of markets, with diversified products, and CPT accounts for a small proportion, and the products are relatively low-end, with a small impact.
