On September 29, HNLS Optoelectronics Technology Group announced that the company signed an "Investment Cooperation Agreement" with ZJJS Electromechanical Technology Group on September 29, 2020. ZJJS invested 255 million yuan and HNLS invested 245 million yuan to establish a joint venture. Develop industrial sapphire crystal manufacturing and processing business.
In recent years, as the cost of sapphire materials has continued to decline, the application of sapphire in the consumer electronics field has continued to increase, including smart watch mirrors and back covers, smartphones and tablet PC camera protective lenses, fingerprint recognition lenses, protective covers and other components , The market is showing a strong demand trend, and it is expected that the market demand will be further released in the future. In addition, sapphire is a high-quality LED substrate material. With the emergence of new display technologies represented by MiniLED, sapphire material is also expected to open up new market space.
ZJJS has been deeply involved in the field of sapphire materials for many years. Through technological innovation, ZJJS has built the core competitiveness in the field of sapphire materials in sapphire crystal growth equipment and processing equipment and sapphire crystal growth. At present, ZJJS has the world's leading super-large sapphire crystal growth technology, has established a production capacity from crystal growth to cutting, grinding and polishing, and has industry-leading technology and cost advantages.
The establishment of cooperation between ZJJS and HNLS this time to jointly develop business operations such as sapphire material manufacturing is the company's implementation of the "advanced materials, advanced equipment" development strategy, market demand-oriented, deepening of upstream and downstream industrial chain cooperation, and in-depth exploration of sapphire material demand. Further promote the development of sapphire materials business.
HNLS is a strategic supplier of Huawei, Apple, and Samsung. It has industry-leading technology, products, scale, and high-quality market resources in the field of sapphire products. This cooperation will integrate the R&D, manufacturing, and innovation advantages of both parties to achieve mutual resources. The combination of sharing and strong will help the company seize the development opportunities of downstream industries, further expand the application of sapphire in the field of consumer electronics, and form a sapphire material scale advantage.