In June 2019, the first production line of Changzhou Aluminum Plastic Film Production Base of SZXL New Material Technology Group was put into operation, and the construction of the second production line was started simultaneously, marking that the company's aluminum plastic film business has officially entered the fast track.
At present, the company's Changzhou plant's aluminum-plastic film shipments are 800,000 square meters per month, mainly digital aluminum-plastic films. It is estimated that in the fourth quarter, the power aluminum plastic film production capacity will be certified and delivered in batches, and the production capacity will reach 3 million square meters per month. After the second production line is put into production in the middle of 2020, SZXL technology aluminum plastic film production capacity will form two major camps of "Changzhou + Japan", with a total capacity of 8 million square meters / month, officially becoming the domestic aluminum plastic film industry leader.
"Supply shortage is the main dilemma facing SZXL Technology's aluminum-plastic film business," said Wu Zhihua, vice president of the board. It is understood that SZXL Technology Changzhou production line equipment and materials are all from Japan, subject to upstream resource supply restrictions, the company's production line construction cycle is longer. On the other hand, the customer certification cycle of power aluminum-plastic film is as long as 1-2 years, making the company's production capacity of power aluminum-plastic film slow. "The slow supply of materials and the long customer certification cycle are a double-edged sword. In the short term, the company's production capacity will be delayed and its performance contribution will be limited; in the long term, this will form a strong industry barrier and form an important competitiveness of SZXL technology" Mr. Wu said confidently.
SZXL Technology's aluminum-plastic film business is based on the aluminum-plastic film business of Japan's Toppan Printing, combined with domestic demand, and has realized localization of fast delivery, customization, good service, and localization. The company has obtained nearly 100 patent use rights for Japanese letterpress and the world's only patent right for the use of aluminum foil chromium-free environmental protection and anti-corrosion treatment, and the dry heat process, occupying the high-end aluminum plastic film market in one fell swoop. At present, the company's power aluminum-plastic film products have been supplied in batches to high-end customers such as Funeng, Gateway, and Carnai, with a market share of 70%; 3C aluminum-plastic films have been supplied to ATL, Veken, etc., with a market share of nearly 30% After the line is put into production, the scale effect is expected to further expand.
"Following the development trend of the aluminum-plastic film industry, focusing on power customers, taking into account 3C major customers, digesting technology and quality, and actively selecting high-quality customers" is the basic strategy of SZXL Technology's aluminum-plastic film business. Good repayment ability and cash flow are the basic requirements of the company's aluminum plastic film business. As of now, the company's aluminum plastic film business has not had any bad debts, and the repayment period is controlled within half a year, which provides good cash support for the development of the company's various businesses.
"It is estimated that by 2025, the aluminum-plastic film market demand will reach 319 million square meters, and the compound growth rate of the power aluminum-plastic film market will reach more than 100%. Our goal is to occupy more than 50% of the global market share," Wu Zhihua said firmly. By then, the SZXL technology aluminum plastic film business will receive a five-fold increase in 2025 compared to 2018, and its revenue share will increase from 10% in 2018 to more than 40% in 2025, becoming the company's core growth pole.