Recently, China's largest LCP film manufacturer: SZWT Advanced Materials Technology Corporation released its 2021 annual report. During the reporting period, the company achieved an annual operating income of 2.540 billion yuan, a year-on-year increase of 33.55%.
LCP material sales up 268%
As a leading enterprise in the synthesis, modification and research and development, manufacturing, sales and technical services of high-performance polymer materials, SZWT is committed to providing customers with optimized new material solutions and value-added services. The products mainly include special and New engineering polymers, high-performance composite materials, carbon fiber and carbon nanotube composite materials, and fluorine-containing polymer materials are widely used in electronics, home appliances, photovoltaics, semiconductors, medical, office equipment, communications, automobiles, water treatment, electrical, etc. field.
In 2021, in the context of the complex and changeable global economic environment, the company will use its own advantages to achieve revenue growth through adjustments in product structure and customer orientation. The annual report shows that the company's operating income increased by more than 30%, and engineering plastic alloys and special polymer materials with higher gross profit margin and added value increased by 72.18% and 62.56% year-on-year, respectively. Among them, the special polymer material business achieved operating income of 492 million yuan, The proportion of the company's total operating income increased from 26.26% to 31.96%; the proportion of engineering plastic alloy income increased from 29.50% to 38.03%, and the revenue and product structure were further optimized.
The production and sales of the company's core products are booming. Taking special polymer materials as an example, the overall supply situation of the global special polymer material supply chain in 2021 will be tight, and the market demand for new products and new material solutions will continue to increase. With cooperation, it has provided diversified and reliable material solutions for leading customers in the downstream automotive, electronics, communications and other industries.
During the reporting period, the company actively built a product system with special polymer materials as the core, and realized the continuous improvement of product competitiveness and service capabilities.
Taking liquid crystal polymer (LCP) as an example, the company has now become the material supplier of Amphenol and Molex, the world's leading electronic supply chain companies. The company's LCP material sales increased by 268% year-on-year compared with 2020. At the same time, in 2021, the company became the first company in mainland China to obtain EIS insulation system certification for LCP materials, laying a good foundation for the subsequent expansion of LCP materials in automotive electronics-related markets.
In addition, during the reporting period, the brand strength and industry recognition of SZWT continued to improve. In 2021, the company was awarded the Ministry of Industry and Information Technology's high-speed connector material demonstration unit, and was elected as the chairman unit of the Special Engineering Plastics Branch of the China Synthetic Resin Association. The name of the invisible champion enterprise of the Ministry of Industry and Information Technology.
At present, in the field of automotive materials, the company takes lightweight, low VOCs, and new energy as the research and development direction, and has successfully developed important customers in the automotive industry such as Land Rover and Geely.
In the electrical and electronic field, the company has been recognized and cooperated with internationally renowned customers such as Huawei, ZTE, DJI, TCL, Xiaomi Ecological Chain, Lenovo, Japan's Daikin, Sony, and South Korea's Hyosung.
In terms of liquid crystal polymer (LCP) materials, the company has continuous production of a full range of LCP resins and composite materials preparation technology, and the product technology has reached the international leading level.
By developing a variety of materials with low dielectric constant and high dielectric constant, the company has been able to ensure independent, controllable and stable mass production of customer supply chains to meet the needs of the downstream communications and electronics industries. By optimizing the preparation process, the company has successively developed a variety of LCP materials that meet the requirements of high mechanical properties, high heat resistance and high precision workability.
In addition to injection-molding LCP, in the fields of 5G, sensors and other precision electronics, the company's LCP film resins have also cooperated with customers to complete film preparation and testing of electrical and mechanical properties, laying a good foundation for future promotion and application.
In addition, in the field of 5G and flat panel displays, the company has achieved mass production and shipment of PTFE film materials for high-frequency circuit boards. During the reporting period, the company's LCP material sales increased significantly by 268%, and the market demand ushered in an explosion.
In order to strengthen the upstream layout of the platform and meet the growing needs of customers for LCP and fluorine-containing polymer materials and their products in the future, the company will start and carry out the "Newly-built 20,000-ton LCP resin material project per year" and "10,000-ton per-year high-tech project" in 2021. Performance new materials and semiconductors, 5G communication equipment projects". Among them, the LCP resin material project with an annual output of 20,000 tons, which will be put into operation in June 2022, is expected to make the company the largest LCP material supplier in the world.
In addition to LCP materials, the company's high-performance polyamide (PPA), polysulfone, and polyaryletherketone (PAEK) production lines will be completed in 2021, and polyphenylene sulfide (PPS) modified production lines have also been put into use. PPS upstream synthesis In terms of layout, work related to demonstration planning has also been started. The company's polymer material platform has been gradually improved, and its problem-solving ability has continued to improve.
In addition, through diversified material processing technologies, in the midstream of the industrial chain, the company provides downstream customers with high/low dielectric properties, antistatic, shielding, lightweight, thin-walled, electrical conductivity, insulation, and thermal conductivity that meet different usage needs. In the downstream of the industrial chain, the company has been able to provide downstream customers with LCP and PTFE film products and mechanically processed PEEK and PTFE end products, further highlighting the competitive advantage.