On December 20, Longli Technology issued a major contract progress announcement, stating that recently, the company and Bosch of Germany had further communicated regarding the previously signed project to provide automotive Mini LED backlight display module products required by BMW (BMW) for 2025-2033, and decided to terminate the "Long-term Contract".
Longli Technology stated that this contract was a long-term international contract, with a term from 2025 to 2033. After the contract was signed, the company actively promoted cooperation; however, during the early product development phase, the two parties had some disputes and disagreements regarding the product requirements stipulated in the contract. Recently, the company further communicated with Bosch of Germany on this matter, but the aforementioned disputes and disagreements could not be effectively resolved, leading to the decision to terminate the "Long-Term Contract."
It is reported that Longli Technology officially signed a long-term contract with the German Bosch Group in October 2022. According to the agreement, the company will provide Bosch's BMW (BMW Motors) project with automotive Mini LED backlight display modules required from 2025 to 2033. The total contract value is US$421 million, approximately RMB 3.027 billion.
Since the contract stipulates that it will be implemented from 2025, and revenue has not yet been recognized, it will not have an adverse impact on Longli Technology's production and operation performance and financial condition this year.
Regarding the termination of this contract, Longli Technology stated that in recent years, the company has actively expanded its automotive business. Currently, the company has gained recognition from numerous Tier 1 automotive and end-user customers thanks to its advanced technology, high-quality production capacity, and rapid response to customer needs. It has established good cooperative relationships with well-known companies such as Tier 1 customers, Faurecia, Visteon, Desay SV, and AUO, as well as end-user automotive customers such as BYD, NIO, Li Auto, XPeng, SAIC, Geely, JK, and Hyundai. The company's automotive business is developing steadily.
Therefore, the termination of this contract will not have a material adverse impact on the company's future production and operating results and financial condition. Going forward, the company will continue to focus on the development of its core business, improve its industrial layout in accordance with its development plan, and promote the company's healthy and sustainable development. (Compiled)
