Quality Disputes between Sunny Optical and FPC Supplier Nanotech

In this week's mobile phone industry chain, Fenghua Hi-Tech's subsidiary Neiden Technology had serious quality problems due to the FPC delivered to Huawei, and its lawsuit compensation dispute with Sunny Technology also surfaced. According to reports, as early as 2018, Sunlight Optoelectronics had returned the entire batch of products due to quality defects found during Huawei ’s installation testing, and the remaining products in the same batch were also rejected by Huawei. The company is supplied by Neiden Technology. After that, Sunny Optical filed a lawsuit against its FPC supplier Naidian Technology for a compensation of 40.305 million yuan. Some people in the industry said that such incidents have been encountered by almost all mobile phone brands, but the subsequent impact is still determined by the size of the matter. An insider revealed: "Before, another first-tier manufacturer in the industry had also been rejected by vivo for a batch of modules that had already been collected due to the quality of the circuit board, and vivo also found the problem after the installation. " According to it, the incident had a considerable impact on the two suppliers involved. The first is that the above-mentioned module factory first pays a fine to vivo, and then it goes to the board factory to demand the corresponding fine. In addition, the above-mentioned module factory also lost the qualification to obtain new projects in vivo in the next six months. As for the product quality problems that occurred between Sunyu Optoelectronics and Nanotech, it has been more than two years since December 2018. In February last year, this quality dispute case was held for the first time. The quality appraisal was conducted in September of the same year, and no written appraisal results have been issued yet. Although Fenghua Hi-Tech emphasized that the above claims did not have a significant impact on the company and Neiden Technology, it has long realized that Neiden Technology is a "hot potato" and chose to sell Neon Technology. In 2019, Fenghua Hi-Tech will transfer 80% of the shares of Neiden Technology through publicly listed transactions. However, up to now there is no qualified intention transferee to apply for the delisting of the project from the Southern United Property Rights Exchange. Obviously, during the continued reshuffle of the FPC industry, a lawsuit-ridden and loss-making performance is not a good target. What's more, one of the most deadly minefields encountered by Naidian Technology is the problem of product quality, which will continue to drag down Fenghua Hi-Tech's performance.