Yuanrong Technology's subsidiary signed a strategic cooperation agreement with Xiangjiang International, and the prospect of deploying the comprehensive health terminal market is promising

New OTC company Yuanrong Technology announced on the afternoon of March 3 that the company's wholly-owned subsidiary Yuanrong Health Technology (Shenzhen) Co., Ltd. (hereinafter referred to as "Yuanrong Health") and Xiangjiang International Group (Hong Kong) Co., Ltd. (hereinafter referred to as "Xiangjiang International") reached a consensus on jointly developing the global deep ultraviolet sterilization terminal product market and signed a "Strategic Cooperation Agreement."

According to the main content of the agreement, Xiangjiang International will purchase no less than 5 million deep ultraviolet sterilization chips from Yuanrong Health in 2016; Yuanrong Health will give priority to the supply to Xiangjiang International and promise that the product quality will meet the relevant quality standards jointly formulated by both parties. The reporter found that at present, the price of ordinary blue-ray chips on the market is less than 0.1 yuan. However, due to its special process difficulty and technical application characteristics, the current mainstream quotation of deep ultraviolet chips in the market is more than 40 yuan, which is hundreds of times that of blue-ray chips. Based on this calculation, the strategic agreement between Yuanrong Health and Xiangjiang International will lead to a purchase contract worth hundreds of millions of yuan. This agreement will undoubtedly significantly increase the company's performance expectations for 2016.

It is reported that Yuanrong Technology successfully acquired and controlled Qingdao Jason in November last year and began to enter the research and development and production of deep ultraviolet health chips and modules. Yuanrong Health is a platform built by the company specifically to promote deep ultraviolet health chips and modules, expand deep ultraviolet business channels in medical, health, disinfection and other fields. It is the management headquarters of the company's health industry. The other party to the strategic cooperation, Xiangjiang International, is a leader in the manufacturing of household appliances, electronic appliances, and plastic products and a well-known supplier in the international market. The nanopot developed in the past two years has occupied 80% of the market of high-end users of similar products. It produces more than 2,000 products. It has stable and long-term supply relationships with overseas merchants such as Carrefour, Wal-mart, SEVERIN, METRO, SUPERIOR, Black & Decker, etc., with annual sales exceeding 3 billion. This time, the two parties reached a strategic agreement to provide deep ultraviolet health chip applications in various fields globally, creating new profit growth points for their respective companies.

Deep UV, as the next blue ocean market in the LED field, is mainly used in sterilization, disinfection, purification, medicine, military, secure communications and other fields, and is widely favored by the market. The popularization of the sterilization and disinfection function of deep ultraviolet LED will greatly change the pattern of the health industry. Due to its unique functions and advantages, deep UV LED is very popular in the field of white home appliances, such as humidifiers, refrigerators, air conditioners, washing machines, air purifiers, water dispensers, etc., which all use UV LED for sterilization and disinfection. The sterilization function of these products will soon become a standard feature of the product. Data show that in the first half of 2015, the overall market size of my country's home appliances reached 767.5 billion, a year-on-year increase of 4%. If deep ultraviolet LEDs can penetrate 5% of white home appliance applications, the scale will be tens of billions, which shows that its market potential is huge.

It is worth noting that Yuanrong Technology previously announced that the 280-nanometer high-power deep ultraviolet light-emitting chip developed by its holding subsidiary Qingdao Jason has set a new world record for the maximum light output power of a single chip. This record once again established Yuanrong Technology’s leading position in the global solid-state deep ultraviolet light-emitting chip field. At present, many well-known water purifier companies, such as Siji Muge, Qinyuan, Bishuiyuan, Angel, etc., have begun to cooperate with Yuanrong Technology to develop and launch water purifier products based on deep ultraviolet LEDs.