On the evening of June 3, Weishi Electronics, a backlight display module company, issued an announcement responding to the Shanghai Stock Exchange's inquiry. The inquiry focused on two key points: first, the reasons for the multiple delays in the previous "backlight display module and intelligent display component project"; and second, the differences between the proposed "lightweight automotive new display component project" and the previous project.
The new fundraising project focuses on Mini LED and ultra-large screen technologies . According to Weishi Electronics' application materials, the "Backlight Display Module and Intelligent Display Component Project," funded by its previous fundraising, was originally scheduled for completion in September 2022, but has now been repeatedly delayed until October 2025. The company stated that the delay is mainly due to insufficient implementation space and the need to add new implementation locations, rather than factors related to product demand.
The company plans to raise no more than 480 million yuan, which will be mainly used for the "Lightweight Automotive New Display Components Project," which is expected to add an annual production capacity of 4.33 million lightweight structural components and 1.85 million new automotive backlight display modules, and supplement the company's working capital. The products produced by this fundraising project will have upgraded technology, with a greater focus on Mini LED and ultra-large screen technologies.
Weishi Electronics stated that Mini LED technology has shown potential in fields such as automotive displays. With its advantages such as high brightness, it is gradually attracting the attention of some automakers and becoming one of the choices for high-end display solutions. Meanwhile, as new energy vehicle manufacturers begin to widely adopt large-size screens, ultra-large screen technology has also become a market trend, which places higher demands on backlight technology.
Weishi Electronics also acknowledged that, limited by its current production scale, the gross profit margin of Mini LED products is relatively low. Therefore, the implementation of this fundraising project will help optimize the product structure and is expected to improve the overall gross profit margin.
Gross profit margin of Weishi Electronics' Mini LED and ultra-large size automotive backlight display modules
Furthermore, Weishi Electronics stated that the lightweight structural components planned for this fundraising project will primarily be for internal use. Although the new factory is still under construction, the company has already leased factory space and purchased equipment in advance to meet urgent customer demands, thus establishing a small-scale production capacity. Currently, four display module products equipped with self-produced lightweight structural components have achieved mass production, involving five types of lightweight structural components.
Weishi Electronics also emphasized that the company's capacity utilization rate for automotive backlight display modules has consistently remained at a high level. Demand from existing designated projects will significantly exceed the new capacity added by the current fundraising projects. Furthermore, the continued growth of the automotive display market, the stable competitive landscape, and Weishi Electronics' market position in this field will all guarantee the absorption of new product capacity.
Mini LED technology is poised for widespread adoption in vehicles, with module manufacturers vying to enter the market . Weishi Electronics' move reflects both its own business development logic and the dynamic adjustments made by the entire automotive display industry in response to technological advancements and changing market demands.
According to the "2024 Global Automotive LED Market - Lighting and Display Product Trends" report, in 2024, automakers faced pressure from market competition and cost reduction, and actively marketed advanced technologies such as Mini LED backlighting displays as high value-added products. This drove stable growth in demand for automotive LEDs in 2024, reaching US$3.445 billion, higher than the overall automotive market shipment performance.
Faced with such market opportunities, not only Weishi Electronics, but also other companies in the same industry such as Hanbo High-Tech, Longli Technology, and Nanji Light are actively developing new display technology products such as Mini LED.
As early as October 18, 2022, Hanbo High-Tech announced a fundraising adjustment plan, intending to raise no more than 750 million yuan, all of which will be invested in the first phase of the project to produce 9 million sets of Mini LED light panels annually. These products are mainly used in multiple fields such as laptops, tablets, VR devices and automotive screens.
According to its 2024 annual report, Hanbo High-Tech has shifted its focus to expanding the automotive backlight display module market. Currently, its automotive Mini LED backlight products have established partnerships with multiple Tier 1 suppliers and OEMs, including BOE, Hangsheng Electronics, and Marelli, and have been applied to automotive brands such as NIO, Chery, FAW, and Ford. Furthermore, the company has made breakthroughs in the Mini LED field, launching projects with Chery, Dongfeng Voyah, and Geely, with related products already used in NIO and Great Wall models.
In recent years, Longli Technology has also actively expanded its automotive business, and has established good cooperative relationships with many well-known Tier 1 suppliers, including Continental, Faurecia, Visteon, Desay SV, and AU Optronics. Meanwhile, its automotive products have successfully entered the supply chains of end-user automotive brands such as BYD, NIO, Li Auto, XPeng, SAIC, Geely, JK, and Hyundai.
Regarding its fundraising projects, Longli Technology has already made several investments in the Mini LED field. These include the intelligent manufacturing base project for medium and large-size Mini LED display modules in 2022, and the new Mini LED display module construction project in 2020. The former mainly targets automotive and display products, while the latter covers automotive, tablet/laptop/monitor, and other applications. Through these projects, Longli Technology expects to add 2.6208 million and 5.3352 million backlight display module production capacities, respectively.
Antarctic Light Technology's main products are LED backlight display modules, used in applications such as automotive displays. In May of this year, the company stated on its investor interaction platform that it will work closely with industry chain partners to promote the commercialization of Mini/Micro LED technology. The company plans to invest in and construct a Mini/Micro LED display module production project at an appropriate time to enhance its core competitiveness in this field.
Summary <br /> With the increasing popularity of new energy vehicles and rising user demands for cabin experience, the application prospects of Mini LED and ultra-large screen technologies in automotive displays are becoming increasingly broad. Companies such as Weishi Electronics, Hanbo High-Tech, Longli Technology, and Nanji Light are actively investing in this area, and technological upgrades and market expansion are expected to proceed simultaneously, propelling automotive displays into a new stage. (Text: Mia)
