Shanxi Daily Client Comprehensive Report The 20th National Congress of the Communist Party of China report emphasized that we must adhere to science and technology as the primary productive force, talent as the primary resource, and innovation as the primary driving force, thoroughly implement the strategy of rejuvenating the country through science and education, the strategy of strengthening the country through talent, and the innovation-driven development strategy, open up new areas and new tracks for development, and constantly shape new momentum and new advantages for development. Hi-tech Huaye Group is guided by the spirit of the 20th National Congress of the Communist Party of China, thinking and planning with a more open mind and a broader vision, looking for new opportunities from the evolution of the global pattern, grasping new positioning from regional development dynamics, seizing new tracks from the trend of technological change, and seeking new breakthroughs from the frontier of the industrial revolution. , since this year, with the striving attitude of "building a tens-billion-level LED semiconductor industry and building an electronic information industry base with national influence", we have insisted on expanding production and regulations, continuously increasing investment, anchoring goals, pressurizing forge ahead, and striving to transform the potential energy of scientific and technological innovation into new momentum for high-quality development.
As the largest LED production base in the northern region, Hi-tech Huaye Group has obvious manufacturing advantages. As the industry's technological development matures, its application fields are becoming more and more extensive. In recent years, the demand for products in various major application fields of the LED market has surged, and high-end subdivisions have become the key to market share. Facing new opportunities and challenges brought by industry development, Hi-tech Huaye Group actively responded to the national call for high-quality development of the manufacturing industry and made every effort to promote the construction of the LED high-tech industry chain. It took innovation as the core of the overall development of the enterprise, introduced advanced talent and technology to support the expansion of production and efficiency, continuously improved the competitiveness of the enterprise industry, and fully promoted the high-quality development of the manufacturing industry.
With the expansion of the LED display market and the continuous expansion of product application fields, product demand is gradually increasing. In order to meet the urgent demand for product orders, the production line of Gaoke Huajie Optoelectronics Technology Co., Ltd. is operating at full capacity to speed up production and actively take measures to expand the production line. In the first quarter of this year, the company's production capacity increased by 19.07% year-on-year, achieving new production capacity targets. This decision brought the company a breakthrough in production and sales scale in the second quarter. While continuing to expand production capacity, the company continues to increase investment in technological innovation and R&D, and improve product and business layout. The display modules cover indoor P4-1.2, outdoor P10-2.5 regular series, outdoor dual voltage, soft module, aluminum bottom case, floor tile screen, beveled angle and rental products. Through the R&D, innovation and application empowerment of display-related electronics, drive, system, structural design, process and automation technologies, the quality and cost-effectiveness of products have been further improved. The terminal products are widely used in advertising, commercial display, stage, security, conference and other fields. The company will continue to increase technological innovation and R&D investment in product industrial design, human-computer interaction, and full process elements, continue to expand product application areas, and promote industrial development.
The continuous expansion of the scale of the LED packaging industry has formed a complete LED packaging industry chain. At present, the monthly shipment volume of Hi-tech Huaxing's packaging products has reached 20,000 KK, with a market share of nearly 30%. In the first quarter, Huaxing Electronics' sales exceeded 300 million yuan, a year-on-year increase of 15%. Faced with the increasing demand for products, Hi-Tech Huaxing's LED packaging production expansion and construction work is imminent. In the first quarter of this year, Hi-tech Huaxing's packaging and production expansion construction progressed smoothly, and the production expansion progress was steadily advancing as planned. The total investment in the new factory construction project is approximately 400 million yuan, with the expansion of 1,000 production lines, covering an area of 40,000 square meters, and a construction area of approximately 20,000 square meters. Newly purchased equipment for the factory began to arrive in June and has now been officially put into trial operation. After the new factory is put into use, the company's production capacity will directly increase by 45%, achieving an annual output value of more than 2 billion yuan, and creating more than 500 new jobs.
Hi-tech Huaxing has been deeply involved in the display LED packaging industry for many years and has a full range of LED packaging products. It insists on establishing a company with technology and strengthening it with talents as the company's important development goals. R&D personnel actively explore the development and application of new technologies, new materials and new processes in the field of LED packaging. Through research and application of results in various aspects such as device product packaging structure design, material matching, surface treatment and core process technology, they have developed a series of products with high reliability, high contrast, matte low reflection and excellent display effects, covering the full range of indoor 2020/1515/1212, outdoor 3535/2727/1921/1415/1112, N in 1 and integrated optical drive and other series of products. With the in-depth research and development and industrial application of related technologies in products, materials, equipment, processes and other aspects, we will continue to build an LED one-stop service platform and complete solutions to provide customers with more cost-effective options.
COB is a new type of small-pitch display packaging technology developed in recent years. It is generally considered by the industry to be the next generation or even the ultimate display technology solution, and has a very broad market prospect. Through the efforts of the R&D team in the past three years, Gaoke Huaye Group has gradually improved its layout in the COB display field and has established an industrialized production foundation. It has now started the construction of a 30,000-square-meter clean factory, which is expected to be completed in September this year. It will achieve a monthly production capacity of 10,000 square meters and an annual output value of 4 billion yuan. The second phase of the construction is planned to start in October this year and be completed and put into production in November 2024. After the first phase of the project is put into operation, Gaoke Optoelectronics will become a manufacturer with a monthly COB production capacity of over 10,000 square meters in the market. After both phases of the project are fully put into operation in 2024, the monthly production capacity will reach 20,000 square meters, the annual output value will be 10 billion yuan, and 3,000 jobs will be provided. By then, it will become the largest LED production base in China. The construction of the COB project will promote the LED manufacturing industry to move from industrial display to large-size high-definition commercial display, civilian and other fields, and will become the mainstream of LED small-pitch high-definition display in the future.
To promote high-quality development of the manufacturing industry, we must give full play to the supporting role of talents as the primary resource. Hi-tech Huaye Group deepens the reform of the talent development system, optimizes the talent introduction and education mechanism, improves the incentive and guarantee system for scientific and technological talents, fully promotes innovation in the use of talents, supports young scientific and technological talents to take on important roles and assumes important responsibilities, continuously strengthens the team of leading scientific and technological talents and the innovation team that is in line with the characteristics of the company, and has built a multi-level talent echelon. High-quality talents have joined one after another, forming a high-end talent gathering effect in the LED industry. Through "going out and bringing in", the company has introduced professional postdoctoral talents and absorbed R&D technical teams. While doing its main business of independent innovation and packaging display manufacturing, it has also actively deployed in the upstream areas of the industrial chain. Optimizing the talent introduction and training mechanism

ANNA