XARL Optoelectronic Materials Technology Group is one of the very few companies in China that has both large-scale R&D and production of OLED materials and liquid crystal materials.
XARL is a high-tech enterprise focusing on R&D, production and sales of special organic new materials. Its main products include OLED materials, monomer liquid crystals, and innovative drug intermediates. All the company's main products are listed in the category of national strategic emerging industries.
OLED materials and liquid crystal materials
Occupy an important position in the global supply chain
XARL is one of the few domestic companies that have both large-scale R&D and production of OLED materials and liquid crystal materials. In 2019, the global market share of OLED materials and monomer liquid crystals before sublimation is about 14% and 16%. The company occupies an important position in the global supply chain system of OLED materials and liquid crystal materials.
Since its establishment, XARL has always focused on the analysis and grasp of global display material technology development trends, and is one of the main domestic OLED front-end materials companies. The company has developed more than 1,300 OLED front-end material compounds and independently developed more than 1,800 synthetic routes. The products have achieved full coverage of light-emitting layer materials and general-purpose layer materials.
XARL has established partnerships with international leading companies such as Idemitsu, Dupont, Merck, Doosan, and Duksan, which account for approximately 70% of the global OLED terminal material market, and occupy an important position in their supply chain system.
XARL is in a leading position in the research and development of OLED materials in China. As one of the main drafting units, the company has participated in the formulation of national standards for the OLED industry.
XARL is an internationally leading R&D and production enterprise of monomeric liquid crystals, and has a high reputation and influence in the global liquid crystal market. The company has developed more than 900 kinds of monomer liquid crystal compounds and more than 1,800 kinds of synthetic routes independently developed.
After years of experience and technology accumulation, the main technical indicators of XARL monomer liquid crystal products can meet or exceed the standards required by international leading customers, marking that the company's monomer liquid crystal preparation has reached the international advanced level.
XARL is also the strategic supplier of the two major hybrid crystal giants Merck and JNC, which together occupy about 80% of the global market share, and has established long-term and stable cooperation with China's three major hybrid crystal manufacturers 800 million space-time, Chengzhi Yonghua, and Jiangsu Hecheng Relationship, promoted the process of localization of mixed crystal.
Based on outstanding core technical strength, relying on long-term good cooperative relations with international and domestic leading companies in the downstream industry, and benefiting from the rapid promotion and application of display technology represented by OLED materials, XARL's revenue and profits continue to grow rapidly. From 2017 to 2019, the company's operating income was 719 million yuan, 857 million yuan, and 990 million yuan, with a compound annual growth rate of 17.35%; net profits attributable to parent companies were 78.01 million yuan, 94.64 million yuan and 144.46 million yuan, respectively. The growth rate is 37.96%.
Expand pharmaceutical CMO/CDMO business
Become a new profit growth point for the company
Since its establishment in 1999, XARL has been focusing on the field of organic new materials business. It is a technology-oriented enterprise and has always attached importance to technological innovation and industrial applications. After more than 20 years of unremitting efforts, it has established technical advantages in the chemical synthesis, purification, trace analysis and mass production system of organic materials, and has obtained 27 invention patents.
Relying on the rich technical experience in chemical synthesis, purification, trace analysis and mass production systems accumulated in the field of display materials, XARL extends the technology application to the field of pharmaceutical intermediates, successfully expands the pharmaceutical CMO/CDMO business, and has built a "core product" "Prominent, clear gradient and level" pharmaceutical intermediate product structure.
XARL entrusted to complete the synthesis route process research and development and large-scale production of PA0045. It is a pharmaceutical intermediate for a new drug for the treatment of non-small cell lung cancer. The lung cancer treatment drug has been registered and marketed in Japan, the United States, Europe and other places, and it will be listed in China in 2018 It also entered the medical insurance catalog. In 2019, it achieved sales revenue of 144 million yuan, and gross profit contributed 28.62%, becoming the company's new profit growth point.
According to statistics from Business Insights, the estimated size of the global CMO market in 2019 is US$79.8 billion. At the same time, the global CMO/CDMO market has gradually begun to shift from mature Western markets to emerging markets such as Asia, bringing development opportunities for domestic companies such as XARL.
In the future, XARL will continue to leverage its own technical advantages in chemical synthesis, purification, trace analysis and mass production systems, and continue to enrich the types and structure of its CMO/CDMO business products, as the research and development phase of the corresponding terminal formulations advances , More pharmaceutical intermediates will subsequently enter the stage of heavy volume, becoming another important source of profit besides display materials.