Receive the development fixed -point notice, enter the BYD supply chain

On September 12, Guangfeng Technology (688007.SH) issued an announcement saying that recently received a fixed -point notice from BYD Automotive Industry Co., Ltd., and the company will become a vehicle optical component supplier of BYD Automobile.

Guangfeng Technology stated that the company has obtained a designated point of BYD automotive project, marking that the company's car business market expansion has made breakthrough progress. It is expected that the project's life cycle will have a positive impact on the company's operating performance. The company will strictly follow BYD's order needs, and complete the development, test verification, production preparation and delivery of designated products within the specified time.

At the same time, Guangfeng Technology stated that the company received the "Development Development Fixed Notice" has not yet constituted a substantial order, and the actual supply time, supply price, and supply of the product involved. Agreement or sales contract shall prevail.

Data show that BYD is a pioneer and leader in the global new energy automobile industry. According to the China Automobile Association data, in the first half of 2022, BYD's new energy vehicle market share of 24.7%, which was far ahead in the domestic new energy vehicle market, and once again won the global new energy vehicle sales.

Dr. Li Yi, chairman and CEO of Guangfeng Science and Technology, said in the intermediate report explanation of the interim results explanation that in the vehicle application scenario, the company's laser technology has a technical advantage with high brightness, high light effect and small volume. A variety of modes such as front and rear, specific products will be exhibited in various exhibitions. In April of this year, Guangfeng Technology issued an announcement stating that IATF 16949: 2016 Quality Management System Certificate was obtained, and the access permit for entering the domestic and foreign automotive industry's supply chain was obtained.

The front installation is integrated with the production of the whole car. It needs to be strictly screening and certified by the car manufacturer's safety and reliability of the vehicle regulations. There are high requirements, so the entry threshold for the front installation is high, and the supplier needs strong technical accumulation.

CICC Research Report believes that Guangfeng Technology relies on existing technology and products to actively develop innovative application scenarios such as sky curtains, windows, entertainment large screens, and smart surfaces. The layout of a full category in the field is expected to usher in the harvest period.

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