In the fourth quarter of last year, the US-China trade battlefield once extended to the auto market, impacting demand, and making the global auto electronics factory's order for auto boards to be conservative. This situation has not improved in the first quarter of this year. The auto board overlord Jing Peng The expectation of a rebound in demand in the second quarter is also frustrating. The industry is pessimistic that a wave of price hikes will be launched in the second half of the year.

The important reason for this situation is that after the US-China trade war broke out, the global auto market consumption tends to wait and see, the consumption of the car is tightening, and the electric vehicles such as Tesla, such as Tesla, are experiencing large-scale expansion and price reduction. In addition, the original international automobile brand strongly emphasizes the determination to develop electric power, and it is even more important for consumers to choose between fuel vehicles and electric vehicles, and even the purchases that originally had to change cars have also shrunk.

The demand for the auto plate market is tightening, and with the new capacity being opened, the relevant industry is pessimistic that the auto sheet market will repeat itself in the second half of 2017, such as a wave of price hikes in 2017.

This demand tightening situation has not improved until the second quarter of this year, but in the past, the gross profit margin of the auto board market was higher than that of capital and communication products. In addition to Jingpeng, Jianding’s auto board revenue last year also accounted for 20.3% of the overall structure. The largest application of products, the absolute amount of revenue also exceeded 10 billion yuan for the first time, and new manufacturers such as Jingguo, Taiding, Jingcheng and other PCB factories are also actively entering the layout, and the competition status of automobile boards continues to intensify.

At present, the new company has joined the war situation, the Thai factory has obtained the European automotive electronics factory certification, and entered mass production. The Thai factory turned profit in the first quarter of this year. It is also expected to make profits this year. After the first-line (Tier 1) automotive electronics component factory Continental certification (German automotive supply chain certification), it expanded its mission in the automotive electronics market.

Taiding-KY has expanded its production capacity to 4.8 million per month. The capital expenditure will reach 600 million yuan this year. It will mainly expand and update the inner layer, drilling machine and optical testing equipment. In the future, it will expand its production capacity by 2 million baht per year. Ding also looks at the high growth of the automotive panel market, and locks in the development of automotive power control systems, body electronics systems, entertainment communications and other fields.

The Shinco Division of Huaxin Group purchased the ELNA Printed Circuit Board Company of Japan in the second quarter of last year. Currently, it has factories in Japan and Malaysia. Jingcheng also improves the process and yield for ELNA investment equipment. It will be opened in the second half of this year.

At present, Jingcheng PCB and PCBA (assembly business) production lines are concentrated in Huangjiang, Shenzhen, Kunshan and Chongqing in mainland China, with a monthly production capacity of 3.2 million square feet. The acquisition of ELNA printed circuit board company will not only help to enter the Japanese automotive panel market. It will also help to meet the needs of Jingcheng Branch to set up production lines outside China.

In recent years, the company has actively deployed the field of automotive electronics. At present, the proportion of automotive electronics in the company's revenue has increased from about 14% in 2016 to 23% in the first quarter of this year.