Chengzhi Co., Ltd. relies on the research platform and industrial system of Tsinghua University to implement the transformation of innovative achievements, and undertakes the responsibility of localizing high-end materials, from LCD to OLED， In the field of non display materials, we have continuously enriched upstream and downstream products, improved the industrial chain, and made outstanding contributions to the healthy development of the national display materials industry.

As a high-tech listed company controlled by Tsinghua University, Chengzhi Co., Ltd. has been focusing on technology industry since its establishment in 1998, continuously adjusting and optimizing its industrial structure, improving its business layout, and achieving leapfrog development with the help of capital. The company's current business areas have covered four major sectors: clean energy, functional materials, medical and health, and life sciences. It has initially formed a development strategy of "one body, two wings" with clean energy business as the core and functional materials and life sciences business as the "two wings".

In the functional materials sector, Chengzhi Co., Ltd. relies on the research platform and industrial system of Tsinghua University to implement the transformation of innovative achievements, takes on the responsibility of localizing high-end materials, and is committed to building a domestic first-class and internationally renowned high-tech product manufacturer and high-tech service provider, promoting the healthy and orderly development of the national display materials industry.

At present, Chengzhi Co., Ltd. has successfully created a domestic LCD independent brand "slichem", and its wholly-owned subsidiary Shijiazhuang Chengzhi Yonghua Display Materials Co., Ltd. (hereinafter referred to as "Chengzhi Yonghua") has developed into a leading enterprise in China's LCD materials industry. It is a major supplier of TN/STN hybrid LCD materials and TFT-LCD hybrid LCD materials worldwide, as well as a rising supplier of OLED luminescent materials. While strengthening its own advantages, Chengzhi Group has made multiple layouts and actively stored energy. In 2019, Beijing Chengzhi Yonghua Display Technology Co., Ltd. was established with the aim of continuing to strengthen the research and exploration of new materials and industries. Wang Xueshun, President of Chengzhi Group, stated that while focusing on developing its main business of liquid crystal materials, Chengzhi Group has gained insight into market trends and actively laid out industries such as OLED light-emitting materials, striving to achieve further breakthroughs in the display field. ”

Promote the localization process of liquid crystal materials in China

Liquid crystal materials are the core materials for producing LCD products, located upstream in the industry chain, with high technological barriers and high added value. In the process of LCD localization, "Tsinghua LCD" is an unavoidable name. If there were no Tsinghua LCD, there would be no liquid crystal material industry in China, "said Liang Xinqing, Secretary General of the Liquid Crystal Branch of the China Optics and Optoelectronics Association. Chengzhi Group adheres to the advanced technology and experience in the field of liquid crystal materials at Tsinghua University, focusing on the development, production, sales, and service of liquid crystal materials and fine chemicals. It has successively broken foreign monopolies and promoted the localization process of liquid crystal materials in China.

In 1987, Chengzhi Yonghua was the first to develop the TEB series of black and white mixed liquid crystal materials in China. In 2007, Chengzhi Yonghua was the first to achieve localization of color TFT LCD, once again breaking the long-standing monopoly of foreign manufacturers in this market. In 2012, a CF2O liquid crystal monomer with cyclopentyl group as its characteristic was developed and patented, and this was used as the core material to form a liquid crystal mixture product. The performance parameters were basically equivalent to world-class products, eliminating the technological and patent advantages of foreign companies, breaking monopolies, realizing the localization of liquid crystal materials for TFT-LCD and the independent intellectual property rights of positive TFT-LCD liquid crystal materials, accelerating the company's entry into the global market. In 2016, TFT-LCD liquid crystal materials successfully entered the mainstream international market, and Chengzhi Yonghua became one of the world's major suppliers of liquid crystal materials. Nowadays, Chengzhi Yonghua has developed and researched over 700 series of hybrid liquid crystal products, over 2000 varieties of monomer liquid crystals, and more than 400 types of monomers available for TFT-LCD liquid crystal materials. The innovative development of Chengzhi Yonghua has driven the upgrading of the domestic LCD material industry.

Actively developing and promoting industrial stability

The shift of global focus in the flat panel display industry will drive sustained growth in the upstream material market for flat panel displays in China. With the large-scale construction of high-end LCD panel lines and flexible AMOLED lines in China, it is predicted that by 2024, the panel industry in China will form an industry with an output value of nearly 500 billion yuan, accounting for 50% of the global output value. China's LCD production capacity currently ranks first in the world, and the LCD market size is relatively stable. Large size and new applications will be the core driving force for future development. Zhang Baizhe, an expert in the field of display materials in China, stated in a media interview that LCD will continue to be in the mainstream position in the field of large-sized displays for a long time, and the prospects for Chinese LCD material manufacturers are promising.

Chengzhi Co., Ltd. adheres to the main business of LCD and continues to invest in supporting the development of Chengzhi Yonghua. It has formed a group advantage of advanced technology, good quality, comprehensive variety, and excellent service.

The demand for products is strong, and production capacity continues to increase. In 2009, the 20 ton "TFT-LCD Liquid Crystal Material Production Base" was completed and put into operation, and Chengzhi Yonghua TFT products entered the market for sales in the same year. In 2014, the first phase of the production base for hundred ton TFT liquid crystal materials and other display materials was completed and put into operation, and Chengzhi Yonghua became the world's main supplier of TFT liquid crystal materials. In 2017, Chengzhi Yonghua's new production line was completed, with an investment of over 100 million yuan. From factory design, production layout, production line introduction, and selection of precision high-end equipment and instruments, it was fully equipped according to international high standards. The launch of the new production line marks Chengzhi Group's determination to continue supporting the expansion of production capacity in China's LCD panel industry, which is of great significance for significantly improving the company's international market competitiveness and enhancing its international influence.

The product quality is excellent and the customer list is rich. With the continuous maturity of product technology, domestic LCD provides domestic LCD manufacturers with higher quality products, lower prices, and better services, enhancing their product competitiveness and promoting the vigorous development of the LCD industry. Chengzhi Yonghua has established good cooperative relationships with major LCD panel companies around the world. Compared to domestic peers, it is also a company that achieved overseas sales earlier.

The increase in the localization rate of LCD panels will further drive the process of localization of liquid crystal materials. Chengzhi Yonghua, which has made breakthroughs in key material technology research and patents, will face good development opportunities. In 2019, the company's TFT type liquid crystal material sales achieved significant growth. ”Wang Xueshun, President of Chengzhi Corporation, said so.

In the current epidemic situation, in order to ensure the material demand of downstream panel enterprises, Chengzhi Yonghua has resumed work and production on February 10th, providing safety protection for the flat panel display industry.

It is precisely based on 50 years of scientific research accumulation, over 30 years of industrial exploration, and more than 10 years of continuous investment in the industry that Chengzhi Shares can seize more market share when national policies, competitive environment, and market opportunities are mature.

Strengthening patent advantages through independent innovation

The country attaches great importance to the development of the LCD display industry and has introduced a series of industrial policies to encourage the development of LCD panels and related raw material supporting industries. In 2016, the State Council approved the "Management Measures for the Recognition of High tech Enterprises", which specified that chemicals used for displays and color LCD displays were recognized as key high-tech fields supported by the state.

Chengzhi Group has always implemented an innovation driven development strategy, continuously increasing investment in scientific research, accelerating scientific research and achievement transformation, achieving continuous innovation through technological leadership, and laying the foundation for the long-term development of the enterprise. The company has established nearly ten research centers, among which Chengzhi Yonghua Technology Center is a national enterprise technology center in the field of liquid crystal display materials in China. In 2011, Chengzhi Yonghua and the Department of Chemistry at Tsinghua University jointly established the Beijing R&D Center to undertake basic research and forward-looking technology development tasks for OLED display materials and other display chemicals.

Intellectual property has shifted from "protection purpose" to "core competitiveness" and become a strategic resource for technology-based enterprises. Chengzhi Co., Ltd. has complete independent intellectual property rights for liquid crystal materials. With the successive authorization of patents for cyclopentyl positive CF2O, negative 2,3-difluorobenzene liquid crystal monomers and compositions in China, the United States, Japan, etc., cyclopropyltriphenylene CF2O、 2,3-difluorobenzene liquid crystals have been successively authorized in China, the United States, Germany, and other countries, and core patents for liquid crystal material technology have gradually formed. At present, Chengzhi Yonghua has accumulated over 300 domestic and over 120 international independent intellectual property patents; Has been awarded the "Outstanding Contribution Award for Display Industry" by the LCD Industry Association for two consecutive years, and has won the National Patent Excellence Award for two consecutive years. In 2019, Chengzhi Yonghua was selected as one of the top 500 Chinese enterprise patents and was awarded the title of "2019 National Intellectual Property Advantage Demonstration Enterprise".

Technology leaders and domestic standard setters

In March 2019, the "Action Plan for the Development of Ultra High Definition Video Industry (2019-2022)" approved by the Ministry of Industry and Information Technology and the State Administration of Radio, Film and Television proposed the overall technical route of "4K first, taking into account 8K", which will further increase the demand for high-performance negative liquid crystal materials. Prior to this, the company had established a strategy of leading in negative technology. Chengzhi Yonghua had developed negative FFS and PSVA LCDs with independent intellectual property rights, leading domestic peers in the field of N-IPS/FFS, PSVA, and IP free RM negative LCDs, reaching world-class levels.

As of now, Chengzhi Yonghua has undertaken 2 national torch programs, 4 national 863 programs, 3 industrialization demonstration projects, and 4 information electronics projects. Chengzhi Yonghua is the executive vice president unit of China Optoelectronic Materials Association, a council unit of China Electronic Materials Association (China Chemical New Materials Industry Alliance), and a member unit of China OLED Industry Alliance. Since 2018, Chengzhi Yonghua has been invited to join the National Technical Committee for Standardization of Semiconductor Equipment and Materials (SAC/TC203), and has begun to participate in the review of national standards in the industry. Two enterprise standards have been released, and three local standards in Hebei Province and three group standards in Shijiazhuang Standardization Association have been developed. One national standard has been approved and awarded the title of "2019 Hebei Province Enterprise Standard Leader".

Expand the diversified industrial landscape

At present, OLED products have been well known and accepted by the public. China has built and is currently building a total of 13 flexible G6 generation OLED panel production lines (excluding 8.5-generation OLED lines for TVs), with an investment of nearly 500 billion yuan in OLED production lines in the past five years. Chengzhi Group keeps up with the pulse of the market, and its functional materials sector will be based on LCD and OLED products, enriching upstream and downstream products and improving the industrial chain.

On January 24, 2019, Beijing Chengzhi Yonghua Display Technology Co., Ltd. was established, elevating the research and production of OLED luminescent materials to the company's development strategy. Starting from the layout of PM-OLED luminescent materials, gradually entering the AM-OLED luminescent material market.

The company has 21 domestic authorizations for OLED patents. As a national enterprise technology center in the field of liquid crystal display materials, Chengzhi Yonghua Technology Center is currently undertaking research projects in OLED related to the National Development and Reform Commission, with a project support amount of 30 million yuan.

Chengzhi Corporation is actively expanding its presence in the OLED material industry while delving into non display research on liquid crystal materials. It is actively exploring 5G application areas such as intelligent handwriting boards, PDLC controlled glass, and liquid crystal antennas. Chengzhi Corporation is also engaging in deeper strategic cooperation with Tsinghua University to achieve further breakthroughs in domestic display materials and technologies.

At present, the global economic situation is becoming increasingly complex and market uncertainty is constantly increasing. Only by establishing a sound upstream and downstream industrial chain can China's semiconductor and display industry maintain healthy and safe growth.

In the once-in-a-century great changes, Chengzhi Group integrates resources, utilizes existing market and intellectual property influence, adapts to market demand, and integrates LCD OLED， Moving on to the field of non display materials, continuously enhancing the international influence of the domestic display material industry.

Source: Securities Daily