On September 16, ZJJM Electronic Technology Co., Ltd. issued an announcement on the new production project of optical grade BOPET film and CPP protective film.
ZJJM Electronic Technology Co., Ltd. (hereinafter referred to as the "Company") held the 23rd meeting of the Second Board of Directors on September 12, 2019, reviewed and approved the "Proposal on the Company's Proposed Investment Project" and agreed to the company's investment Production project of 36,000 tons of optical grade BOPET film and annual output of 6,000 tons of CPP protective film.
1. Realize the expansion of the company's business from the field of electronic information to the field of optoelectronic display and new energy applications
The company's main business is the research and development, production and sales of electronic component-related materials. The products mainly include paper carrier tapes, tapes, plastic carrier tapes, release films, etc., and are mainly used in electronic information such as integrated circuits, chip electronic components, etc. field. The main products of this fundraising project are optical grade BOPET film and CPP protective film. Among them, the optical grade BOPET film is mainly used for the production of MLCC release film, polarizer release film, etc., which belongs to the field of optoelectronic display; CPP protective film is mainly used in the process of aluminum plastic film and ITO conductive film for lithium batteries, which belong to new energy applications And optoelectronic display fields. The implementation of this project will realize the expansion of the company's business from the field of electronic information to the field of optoelectronic display and new energy applications. It is in line with national industrial development policies and is conducive to the company's long-term development.
2. Optimize the company's product layout and revenue structure, and enhance its comprehensive competitiveness
Since its establishment, the company has been engaged in the research and development, production and sales of materials related to electronic components. Its products mainly include paper carrier tapes, adhesive tapes, and plastic carrier tapes. At the end of 2018, the company's release film production line started production, and has now achieved batch supply to some customers, but the products are also mainly positioned in the low-end market application field. The main raw material for the production of release films is PET-based films. Release films for high-end applications have higher requirements for the production process and product stability of PET-based films. At present, China mainly relies on imports, which also restricts the company and other domestic manufacturers. Important factors for high-end release film products. The main product of this fundraising project is optical grade BOPET film which can be used as raw material for high-end release film production. By extending the industrial chain and controlling core raw materials, the company can further improve the quality of release films, effectively control production costs, and enhance the market competitiveness of the company's products. The implementation of this fundraising project will enable the company to add two main products, optical grade BOPET film and CPP protective film, which can enrich the company's product variety, optimize product and income structure, and provide customers with more comprehensive product supporting services, which is beneficial to Improve the company's market competitiveness and overall ability to resist risks.
3. Promote the import substitution of related products and promote the development of local industries
From a global perspective, the main production areas of PET films are Japan, South Korea, and Taiwan. China is becoming the world's largest electronic terminal product and device processing and manufacturing base, and it is also the country and region with the largest demand for this product. Japan and South Korea and other countries have carried out PET film research earlier. They have mastered a full set of core technology for product production and have almost monopolized the global high-end market. However, domestic companies have relatively insufficient ability to develop and produce high-end PET films. At present, high-end products are mainly imported. CPP protective film for aluminum plastic film At present, no domestic enterprises can mass-produce and apply, and most of them are imported to Japanese companies.
The implementation of this project will greatly increase the market supply of domestic optical-grade BOPET films and CPP protective films, ensure the supporting demand for upstream domestic components in the consumer electronics and automotive electronics industries, and promote the development of functional films and downstream industries in China and product competitiveness. The improvement is beneficial to the healthy development of China's consumer electronics industry chain.
Project basic information
1. Project Name: Production project of 36,000 tons of optical grade BOPET film and 6,000 tons of CPP protective film per year.
2. Construction address: Zhejiang Economic Development Zone.
3. Project construction scale: The annual output of optical grade BOPET film is 36,000 tons and the annual output of CPP protective film is 6,000 tons. After the completion of the first phase of the project, the production capacity of 18,000 tons of optical grade BOPET film and 3,000 tons of CPP protective film will be formed annually .
4. Investment Estimation: The planned total investment is RMB 101,600,000, of which the planned investment for the first phase of the project is RMB 60,091,000.
5. Source of funds: Combining own funds with various financing methods such as equity and debt.
6. Investment progress: The planned construction period is 5 years, of which the construction period of the first phase is 3 years.
Impact of project implementation on the company
Optical grade BOPET film is mainly used to produce MLCC release film, polarizer release film, etc. CPP protective film is mainly used in the process of aluminum plastic film and ITO conductive film for lithium battery. The downstream applications belong to the fields of optoelectronic display and new energy applications. The implementation of this project can enrich the company's product categories, optimize the product and revenue structure, provide customers with more comprehensive supporting services, and also enable the company's business to expand from the electronic information field to the optoelectronic display and new energy application fields, enhancing the company's Profitability and risk resistance. At the same time, the company will take advantage of the opportunity to implement new projects to continuously strengthen its capabilities in R & D, production control, marketing and other aspects, promote the company's healthy and sustainable development, and maximize shareholder benefits.
Project risk analysis
The market prospects and market capacity of the products of this project are broad and may attract new competitors in the future. Considering that it takes a long time for the project to start to generate economic benefits, the market conditions and competitors' conditions may change significantly during this period, and the project faces certain market risks. In order to cope with market risks, the company will track and analyze the market situation and customer demand in a timely manner, strengthen relationship maintenance with important customers, increase investment in research and development, continuously optimize product quality, increase product added value, and prevent and control project market risks Digest risks with capacity.
This project involves the production of new products. The company faces new challenges in terms of new products, new technology research and development, and production control. The company has sufficient technology and talent reserves for the project, and will continue to optimize the incentive mechanism, give play to its management advantages, speed up the progress of project construction and capacity release, reduce the implementation risk of the project as much as possible, and improve the company's operating capacity.