China's leading electrical insulation materials and polypropylene film manufacturer SCDC Electronic Materials Technology Group will fully deploy to optical film materials and electronic materials in 2020.
On August 18, SCDC announced that it plans to raise 800 million yuan for the industrialization of functional film materials and special resin materials for high-speed printed circuit boards. The project products will be the OLED display industry and high-frequency high-speed printed circuits. The core components or raw materials of the board industry are matched.
Previously, SCDC was mainly engaged in the production of insulating materials. This year, the company has accelerated its deployment in optical film materials and electronic materials. On June 30, the company spent 556 million yuan to complete the acquisition of 100% equity of Shengtong Optical, and obtained 5 optical grade polyester Base film production line. On August 18, the company added 39 million yuan to Shandong Aimengeng for the construction of a special epoxy resin and intermediate project with an annual output of 60,000 tons for advanced electronic materials for copper clad laminates.
SCDC’s self-built special polyester film project with an annual output of 15,000 tons and an optical-grade polyester base film project with an annual output of 20,000 tons for OLED display technology are in progress. It is precisely because of the full advancement of optical film materials and electronic materials that the company expects its net profit in the first half of the year to increase nearly 8 times.
Proposed to raise 800 million yuan to invest in the industrialization of raw materials
SCDC stated that the total amount of funds raised in this non-public offering will not exceed 800 million yuan, and will be used for the industrialization project with an annual output of 100 million square meters of functional film materials (adhesive film, OLED process protective film, etc.), and an annual output of 5,200 tons of high frequency Special resin materials for high-speed printed circuit boards (electronic grade maleimide resin, low-dielectric active ester curing agent resin, etc.) industrialization project, annual production of 60,000 tons of special epoxy resin and intermediate projects, and supplementary working capital .
The leading products of the above-mentioned fund-raising investment projects are supporting the core components or raw materials of the OLED display industry and the high-frequency and high-speed printed circuit board industry. As SCDC has achieved technological breakthroughs in key raw materials, investment will realize the industrialization of the above-mentioned materials, quickly seize the domestic market, break the pattern of key materials and core technologies in the hands of foreign companies such as the United States, Japan, and South Korea, and realize import substitution.
SCDC has been committed to the research and development, manufacturing and sales of new chemical materials. Based on new insulating materials, it has gradually developed into the research and development of optical film materials, environmentally friendly flame-retardant materials, electronic materials and other series of products. In the past 5 years, the company has been continuously in the above-mentioned raw materials fields. A breakthrough was made only by investing in research and development.
In July 2015, Jiangsu Dongcai, a wholly-owned subsidiary of SCDC, invested and constructed the "20 thousand tons of optical grade polyester base film project" in Jiangsu Haian with super-raised funds and put it into trial operation. At present, the special polyester film project with an annual output of 15,000 tons invested by the company is in the commissioning stage, and the optical-grade polyester base film project with an annual output of 20,000 tons for OLED display technology will be commissioned in 2021. By then, the company's annual production capacity of base film will reach 100,000 tons.
More than a month ago, on June 30, SCDC completed the acquisition of 100% equity of Shengtong Optical Science at a cost of 556 million yuan and completed the equity change registration, and obtained 5 optical grade polyester base film production lines, which directly shortened the company’s optical base Expansion cycle in the field of membranes; on August 18, the company increased its capital by 39 million yuan to Shandong Aimengte to obtain 65% of the equity, which is mainly used for the construction of 60,000 tons of special epoxy resin and intermediates for advanced electronic materials for copper clad laminates . The company has made full preparations to fully enter the optical grade polyester base film and electronic materials.
Rapid development of new materials
SCDC currently has insulating materials, optical film materials, environmentally friendly flame-retardant materials, and electronic materials. Among them, the downstream industries where insulating materials are applied are mainly photovoltaic industry (solar backplane base film), UHV industry (functional polypropylene film); optical grade polyester base film is mainly used for the protection of 2.5D/3D front and rear cover glass of smart phones. Polarizers and touch screen modules supporting use, high-end MLCC process supporting use and other fields; electronic materials are used as the main material of high-performance copper clad laminates.
The development of 5G's demand for communication equipment brings business opportunities to the CCL market, and indirectly promotes the rapid development of a series of CCL resin materials such as PTFE, epoxy resin, and bismaleimide resin. At the same time, it will promote the technological upgrading and product iteration of consumer electronic products, and increase a large amount of market demand for the panel display industry and its supporting industries.
In the optical film material industry, SCDC is actively deploying the downstream mid-to-high-end market application fields, accelerating the deployment of optical film materials and electronic materials that are compatible with emerging fields such as flat panel displays and copper clad laminates. At the same time, benefiting from the successive commencement of new UHV power grid projects and the development of the copper clad laminate industry, the production and sales of SCDC's supporting functional polypropylene film, large-size insulating structural parts and electronic materials have increased significantly.
In 2019, SCDC achieved operating income of 1.735 billion yuan, a year-on-year increase of 5.52%, and realized a net profit attributable to shareholders of listed companies of 72.871 million yuan, a year-on-year increase of 126.63%. Among them, the revenue of optical film materials was 272 million yuan, a year-on-year increase of 6.83%, and the gross profit margin was 25.77%, an increase of 6.09 percentage points; the revenue of electronic materials was 104 million yuan, a year-on-year increase of 383.48%, and the gross profit margin was 27.96%. The revenue growth rate and gross profit margin of optical film materials and electronic materials are much higher than that of insulating materials (gross profit margin 20.73%), becoming the main contributor to the company's net profit increase.