On August 26, ZJJM Electronic Materials Technology Group announced its financial report for the first half of 2020. Its operating income was 623 million yuan, a year-on-year increase of 63.34%; the net profit attributable to shareholders of listed companies was 145 million yuan, a year-on-year increase of 168.04%.
ZJJM's half-year revenue and net profit have both increased, "mainly because downstream notebook computers and medical electronic equipment are increasing, resulting in increased demand for components." The company's secretary of the board Zhang Jungang said. At the same time, the company is speeding up the development of new release film business, and domestic substitution may become a new point of company performance.
Release film can be used in new energy applications and optoelectronic display fields, and is an important growth point for the company in the future. In the first half of the year, the release film business revenue was 34,612,800 yuan, a year-on-year growth rate of 120.85%. "At present, the base is small, but this is the future development direction. With a broad market, we will definitely focus on conquering." Zhang Jungang said. The company stated in the interim report that it had launched a "release film base film production project during the reporting period, and plans to invest in the construction of an annual output of 36,000 tons of optical grade BOPET film and an annual output of 6,000 tons of CPP protective film production projects." According to the analysis in the research report of Northeast Securities, the company's R&D and production of packaging tape and release film for many years will help to develop the high-end release film market and make domestic substitutions.
During the reporting period, the company's transfer tape project, namely the IPO fundraising project "The construction project of the transfer tape production line for electronic components with an annual output of 200 million square meters (Phase I)", five production lines were running smoothly, of which one release film production line was mainly used for Product research and development, carry out trial production of release films with multiple models and multiple application fields, and continuously improve the production process and product performance based on customer feedback. At the same time, the company's imported alternative high-end transfer tape (release film) for polarizer manufacturing and other purposes has also achieved certain sales. In recent years, the process of localization and substitution of transfer tape products has accelerated significantly. The company has accelerated the implementation of the "200 million square meters of electronic component transfer tape production line construction project (Phase II)" with its own funds. Two of them are imported from South Korea. The high-end production line is already in the stage of installation and commissioning. Another ultra-wide high-end production line imported from Japan will also arrive in October 2020. The above-mentioned imported equipment has higher production efficiency and quality accuracy, and can meet the production of optical materials and other higher-end products. To better respond to new changes in high-end applications.
After the completion of the "Construction Project for the Production Line of Transfer Tape for Electronic Components with an Annual Output of 200 Million Square Meters (Phase II)", the company will have 8 transfer tape (release film) production lines. By then, the company will have the production capacity to produce various new types of products that have not yet been localized, including high-end MLCC release films and release films for optical materials.
In addition to focusing on improving production capacity and product quality, the company actively promotes the market expansion of release films. On the one hand, the company continues to increase its marketing efforts to MLCC release film customers, and makes full use of the company’s established good customer base in the field of electronic components to improve product performance according to customer needs, improve customer satisfaction, and guide customers to increase the purchase of release film the amount. On the other hand, the company has strengthened the market development of release films in the field of optical materials. At present, the company has begun to supply release films to some domestic polarizer manufacturers.
During the reporting period, in order to realize the self-production of the original film of transfer tape (release film) products, expand the company's influence in the field of film materials, and realize the industrial chain integration of transfer tape (release film) products, the company initiated convertible bonds. The project is the release film base film production project. It is planned to invest in the construction of an annual output of 36,000 tons of optical-grade BOPET film and an annual output of 6,000 tons of CPP protective film. The main products are optical-grade BOPET film and CPP protective film. Among them, optical-grade BOPET film is mainly used to produce MLCC, release film for polarizer, etc., belonging to the field of optoelectronic display; CPP protective film is mainly used in the process of aluminum plastic film, brightness enhancement film and ITO conductive film, which belongs to new energy applications and optoelectronics Display field. The project is in line with the national industrial development policy, and will realize the expansion of the company's business from electronic information to photoelectric display and new energy applications, which is conducive to the company's long-term development. During the reporting period, the company submitted application materials for the issuance of convertible bonds to the China Securities Regulatory Commission. At present, the company has completed its response to the feedback from the China Securities Regulatory Commission. In the future, the company will speed up the work related to the application and issuance of this convertible bond, and will speed up the construction process of the convertible bond investment project, that is, the release film base film production project.
Looking to the future, the company will continue to use electronic thin carrier tape as the basis, gradually accelerate the expansion and expansion of the transfer tape (release film) field, actively promote in-depth cooperation with leading companies in the electronic information industry at home and abroad, and continue to deepen the cooperation with world-renowned electronics Long-term strategic cooperation between component manufacturers. The company adheres to the concept of "quality, efficiency, innovation, and rapid response to customers", closely focusing on market segments, focusing on building core competitiveness, insisting on independent innovation development ideas, increasing R&D investment, and accelerating the development of new products. Optimize the product structure, focus on the development of high-tech, high-value-added mid-to-high-end products, improve the integrated construction of the three major industrial chains, and follow the development path of a full range of product supporting services, and strive to become a company that provides electronic components and processes An excellent company that needs one-stop service and overall solutions for consumables.