On May 3, 2018, Yian Industrial and Zhuzhou SDIC signed the “Yian Industrial Co., Ltd. and Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. share transfer agreement for Dongguan Yian Technology Co., Ltd.” and “Voting Rights Entrustment Agreement”. After this share transfer and voting rights delegation were completed, the total number of voting shares of Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. in the company was 128.75 million shares, accounting for 27.97% of the company's total share capital. Zhuzhou SDIC will be the controlling shareholder of the company.
The actual controller of the company was changed from Mr. Li Yangde to the Zhuzhou State-owned Assets Administration Commission, the sole shareholder of Zhuzhou SDIC.
Zhuzhou SDIC and Yi'an Technology are a strong alliance, and the synergistic effect is obvious. The main business of Yian Technology is precision die-casting of aluminum alloys and magnesium alloys and the industrial application of liquid metals. Zhuzhou is an industrial city that focuses on developing the three pillar industries of general aviation, rail transit, and new energy vehicles. It is positioned as China's Power Valley. Engines, vehicles, and complete aircraft are all involved, including subways, high-speed rail, and city railways. Overall, it is called China's Power Valley. Zhuzhou National Investment Group is a government enterprise in Zhuzhou City. It is positioned as an industrial developer and has many resources for industrial development. Yian Technology's traditional precision die-casting of aluminum alloys and magnesium alloys is very popular in automobile engines and rail transit markets. Furthermore, its precision die-casting is used in the manufacturing industry for energy saving and environmental protection, and is used to reduce the weight of automobiles and high-speed railways. Light weight and low energy consumption are in line with national initiatives. Yian Technology has now introduced the entire magnesium-alloy car door and frame, including the seats, and there are many articles to write about.
In addition to being used in consumer electronics, Yian's liquid metal also has great prospects in the future in aerospace. Because one of Zhuzhou's three industries is aviation, it is the development base for small and medium aviation in China, and the only production and R&D base. Liquid metals are expected to make a breakthrough in Zhuzhou. Yian Technology's current industry scope and main business scope, including future development directions, are highly compatible with the Zhuzhou industry, so cooperation with Yian is a strong alliance.
Yian Technology's acquisition and patent layout of liquid metals fully shows that the company attaches importance to intellectual property rights. This also shows the company's foresight. Combined with disputes such as ZTE's near shock in the recent Sino-US trade war and the collective patent lawsuit of LED companies, the company's perfect layout for liquid metal industrialization is also an important reason why Zhuzhou SDIC is optimistic about the company.
Risk warning: The efficiency of state-owned enterprises is slow, and the project progress falls short of expectations; the risk that the application of aluminum-magnesium alloys falls short of expectations; the risk that the penetration rate of liquid metal materials does not meet expectations.