On December 20th, Shenzhen Longli Technology Co., Ltd. (hereinafter referred to as “Longli”) issued an announcement regarding a significant contract update. The company stated that it recently held further discussions with Germany’s Bosch regarding a previously signed agreement to supply automotive Mini LED backlight display modules for a BMW project from 2025 to 2033. As a result of these discussions, the decision was made to terminate the “Long-Term Contract.”

Longli explained that the contract was an international long-term agreement spanning from 2025 to 2033. Following the signing of the contract, the company actively worked towards advancing the partnership.

However, during the initial product development phase, disputes and disagreements arose between the two parties concerning product requirements outlined in the contract. Recently, Longli engaged in further communication with Bosch regarding these matters, but the disputes and disagreements could not be effectively resolved, leading to the decision to terminate the “Long-Term Contract.”

It is understood that Longli officially signed the long-term contract with the German Bosch Group in October 2022. According to the agreement, Longli was to supply automotive Mini LED backlight display modules for a BMW project from 2025 to 2033. The total value of the contract was 421 million USD, approximately 3.027 billion RMB.

Since the contract was scheduled to commence in 2025 and no revenue had been recognized, the termination will not have an adverse impact on Longli’s operating performance and financial position for the current year.

Regarding the termination of this contract, Longli stated that in recent years, the company has been actively expanding its automotive business. Currently, the company has gained recognition from numerous automotive Tier 1 suppliers and end customers due to its advanced technology, high-quality production capabilities, and rapid response to customer needs.

Longli has established strong cooperative relationships with well-known Tier 1 clients such as Continental, Faurecia, Visteon, Desay SV, and AUO, as well as end automotive customers such as BYD, NIO, Li Auto, Xpeng, SAIC, Geely, Zeekr, and Hyundai. The company’s automotive business is steadily developing.

Therefore, the termination of this contract will not have a significant adverse impact on the company’s future operating performance and financial position. In the future, the company will continue to focus on the development of its core business, improve its industrial layout according to its development plan, and promote the company’s healthy and sustainable development.

(Photo credit: Longli)

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