As a high-tech polymer functional film high-tech enterprise in China with original technology, core patents, and core product R&D and manufacturing capabilities, NBCY Advanced Materials Technology Group has continued to develop reflective films, backplane base films, optical base films and other special functions since its establishment Film field.
The company launched the company's first generation of reflective film in 2012 and is one of the few companies in China that has mastered the technology of optical reflective film preparation. In 2017, the company's reflective film shipment area ranked first in the world, realizing a comprehensive import substitution of reflective films. In 2018, the company entered the field of optical base films with higher technical barriers. In the same year, the reflective film products won the honorary title of single champion product of the Ministry of Industry and Information Technology.
According to the latest three quarterly reports, NBCY achieved operating income of 736 million yuan from January to September 2020, a year-on-year increase of 16.55 percent.
As the demand for terminal consumer electronic products such as TVs and tablet computers continues to grow, the LCD industry has not yet peaked. The huge demand for backlight modules has driven the demand for reflective films, brightness enhancement films, and diffusion films for liquid crystal displays. According to data from IHS Markit, the market demand for reflective films for flat panel displays was 230 million square meters in 2019. It is estimated that by 2022, the global demand for reflective films for liquid crystal displays will reach 255 million square meters.
In addition, NBCY is actively cooperating with the needs of customers for the research and development of reflective films for Mini LEDs and plastic blister products. On large-size screens, Mini LED has more advantages than OLED in terms of cost, reliability and lifespan. It is estimated that Mini LED backlight TV shipments will reach 4.4 million units in 2021, with a penetration rate of 2%. At the same time, because the production process of the reflective film for Mini LED is more complicated, the unit price is higher. It is expected to fully benefit from the increase in Mini LED penetration rate. Optical base film is a raw material for a variety of optical films. The market space is large but the localization rate is low. The company will realize the profit reversal of the optical base film business within two years and continue to improve. It is firmly optimistic about the expansion of optical base film application fields and the improvement of profitability .
NBCY's recent IPO raised funds respectively invested 90 million square meters of reflective film, 50.4 million square meters of functional film, 30 million square meters of release film for semiconductor packaging, and 10 million optical films. On the one hand, it will open up the company's capacity bottlenecks. On the other hand, it will deploy new projects such as deep-processing functional films, release films for semiconductor packaging, and high-end optical films to further open up market space for the company's future growth.