Event: on July 25, Jiangxi Lianchuang Electronics Co., Ltd., a wholly-owned subsidiary of Lianchuang Electronics Co., Ltd., increased its wholly-owned subsidiary Lianchuang Optics (USA) Co., Ltd. with its own funds by no more than US $10.9 million, and signed a cooperation agreement with Prodensa, a local cooperation unit, with the US subsidiary as the main body, with a total investment of no more than US $10.9 million to build a Mexican factory.
Add Mexico, deepen the strategic layout of North America: in 2016, the company began to work with major customers as the exclusive supplier of its cabin lenses, and won the bid for 5 car lenses in its new Autopilot 4.0 algorithm platform in 2020. the current product supply covers 1m to 5m, which is the core customer of the company's in-car camera business. We believe that the construction of the Mexican factory marks the landing of the international strategy, and it is expected to open a diversified market for important customers in North America and further integrate into the development of the global supply chain, which is in line with the company's long-term strategic development layout.
The company mainly produces camera lenses and modules. Through strategic cooperation with overseas T companies, NIO Inc. and other car companies, Valeo, Aptiv, ZF and other Tier 1, as well as Mobileye, Nvidia, Horizon, Huawei and other intelligent driving assistance solutions companies, vehicle business revenue is increasing year by year. In 2022, the company's vehicle optical business revenue of 767 million yuan, accounting for 7.02%, has become one of the main driving forces for the growth of optical business. We expect that with the volume of major customers at home and abroad, the promotion of BEV+Transformer visual route, and the rise in the price of high-end intelligent driving sensors, vehicle business revenue of 2023 and 2024 is expected to double year by year.
The company has sufficient orders on hand, and the volume of on-board optical business is accelerated: in 2022, the 8m ADAS imaging module that the company cooperated with NIO Inc. Automobile successfully produced goods, and expanded smoothly with Valeo, Magna, Aptiv, BYD, Zero and other well-known customers. In terms of production capacity, the company's existing car lens production capacity reaches 3KK/ month, vehicle image module production capacity reaches 800K/ month, Hefei Phase II is expected to be completed in 2025, and the future will form an annual production capacity of 80 million car lenses and 60 million image modules to provide guarantee for follow-up order delivery.
Risk hint: the industry competition aggravates the risk, the raw material cost rises the risk, the new energy vehicle penetration rate is lower than expected and so on.