ZJDM Optical Technology Group was established in 2002 and was listed on the Shenzhen Stock Exchange in 2008. It is the only domestic reflective material company listed on the main board, with a prominent leading position. The company started with reflective materials and continued to expand other high-end film materials industries based on its main business and original technology.
The company expanded its aluminum-plastic film business in 2017, breaking the monopoly of Japanese and Korean companies;
Enter the PC / PMMA co-extruded composite film 5G mobile phone backplane business in 2019, and enjoy the dividends brought by China's 5G wave sweeping the world.
In terms of extensional mergers and acquisitions, the acquisition of Warwick New Materials in 2016 included the optical film business, and expanded the quantum dot film business in 2019. On the basis of strengthening its main business, it created a multi-point flowering situation for the integrated film business.
In terms of reflective materials, the company has an annual production capacity of 16.8 million square meters of glass microbead reflective film, 13.2 million square meters of glass microbead reflective cloth, 5 million square meters of reflective products, 5 million sets of reflective clothing, and 10 million square meters of microprism-type reflective film. The company is actively transforming into high-margin products: license plate films and semi-finished products and micro-prism reflective materials.
Micro prism film breaks through foreign technology monopoly and is rapidly realizing domestic substitution
After nearly 10 years of independent research and development, ZJDM Optics has become the first domestic company to mass-produce micro-prism-type reflective films with its own technology, breaking the technical monopoly of foreign companies in the field of high-end reflective films and enjoying domestic substitution dividends.
In 2019, the sales of ZJDM prism film is about 300 million yuan, the domestic market share is close to 10%, and the gross profit margin is about 60%. ZJDM has been seizing the share of 3M, and has continuously achieved domestic substitution. At present, the domestic micro-prism film market scale is 3-40 billion yuan, with an average annual compound growth rate of about 8%. The annual average growth rate of ZJDM micro-prism reflective film sales is expected to reach 40% -50%. The rate has increased to more than 20%, with an average annual sales of nearly 1 billion yuan and a gross profit of 600 million yuan.
ZJDM Optical's micro-prism reflective film products are 20% cheaper than 3M under the premise of ensuring the same quality. At the same time, TD adopts the direct sales model, which can more quickly respond to the needs of downstream customers and provide more convenient services, so it is also increasingly favored by engineering project customers. In addition, thanks to the advancement of the Belt and Road Initiative, major large developing countries (India, Pakistan, Brazil, etc.) have a large investment in infrastructure. TD is gradually increasing the overseas sales of the company's products and will gradually expand to the global market in the future.
The market share of license plate film has expanded, and the market share has ranked among the top two in China
Among the 31 provincial-level administrative regions in mainland China, ZJDM has obtained market share for license plate films in 13 provincial-level administrative regions. After obtaining the two largest domestic markets in Guangdong and Shandong together with CZHR Optics, the market share of ZJDM Optics and CZHR Optics occupied the top two positions in the domestic license plate film market. In addition, ZJDM optical license plate film products have unique anti-counterfeiting technology. According to the currently published patents, ZJDM Optics introduces rare earth ion-containing compounds to prepare glass microbeads with invisible anti-counterfeiting function, which can make the reflective film products for downstream license plates have unique anti-counterfeiting performance.
Focus on independent research and development, build a new optical research institute
ZJDM Optics has been focusing on independent research and development for a long time, and the total amount of research and development expenses has shown an upward trend over the years. ZJDM improves its competitiveness through differentiated high-end products. License plate films, micro-prism-type reflective films, and other endogenous or epitaxial businesses all have high technical barriers. The core competitiveness is extremely strong. It covers an area of about 20 mu. In the future, Hangzhou Research Institute will conduct product research and development in the form of an incubator, followed by small and pilot tests of new products, which will greatly enhance the R & D strength of ZJDM.