BOE suppliers resume IPO

On March 6, Chongqing Yulong Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Yulong Optoelectronics") submitted an IPO coaching filing to the Chongqing Securities Regulatory Bureau, and the sponsor is CITIC Securities.
According to the information, Yulong Optoelectronics is mainly engaged in the research and development, design, manufacturing and sales of precision control panels and precision functional devices. The company's products are mainly used in the field of display panels, and its customers include BOE, TCL Huaxing Optoelectronics, HKC, Hehui Optoelectronics, Visionox and other companies.
According to public information, Yulong Optoelectronics is the largest supplier of BOE's display precision control panel processing and manufacturing and the main supplier of precision functional devices. From 2019 to the first half of 2022, the company's sales revenue to its largest customer BOE was 281 million yuan, 471 million yuan, 688 million yuan and 295 million yuan, respectively, accounting for 94.38%, 95.29%, 95.42% and 86.51% of operating income, respectively, with a high customer concentration.
In terms of production capacity, Yulong Optoelectronics has multiple production bases, and currently produces and sells more than 100 million display control panels annually. In addition, the company is building the second phase of the Chongqing headquarters project, with a total investment of 360 million yuan and a total construction area of about 60,000 square meters. After the project is completed, 40 OLED control panel production lines and several LCD module control panel production lines will be added, which will achieve an annual output of 50 million OLED control panels and 12 million LCD module control panels.
In terms of performance, from 2020 to the first half of 2022, Yulong Optoelectronics achieved operating income of 494 million yuan, 721 million yuan, and 341 million yuan respectively; net profit was 107 million yuan, 116 million yuan and 49.1244 million yuan respectively.
It is worth mentioning that this is not the first time that Yulong Optoelectronics has impacted IPO. In December 2022, the company applied for an IPO on the Shanghai Main Board, and then withdrew its application for issuance and listing in June 2023.
The previous prospectus showed that Yulong Optoelectronics originally planned to raise 1.5 billion yuan to be used for OLED control panel and liquid crystal module control panel and precision die-cutting production base projects, the second phase expansion project of Chongqing Yulong Optoelectronics production base, the R&D center upgrade project and to supplement working capital.