In terms of electronic functional materials, the company increased investment in research and development, accelerated the development and launch of new electronic functional materials such as FPC electromagnetic wave protective films and pressure test films, and made further breakthroughs in market expansion.
In addition, on August 22, 2018, the company signed the “Pengshan Industrial Project Investment Agreement in Meishan City” with the Management Committee of Chengmei Petrochemical Park in Meishan, Sichuan Province. The agreement stipulates that the company will invest in the construction of the Lekai New Materials Electronic Materials R & D and Industrial Base project in Chengmei Petrochemical Park. The project content is to build a product R & D and production base for electromagnetic wave shielding films and pressure test films.
It is reported that the downstream of the pressure test membrane is mainly in the application fields of electronics, communication and automotive electronics. The domestic market space in 2018 is about 1 billion yuan, and the annual growth rate is in an increasing state. At present, the proportion of Fuji in Japan exceeds 80%, and the gross profit margin of related imported products exceeds 85%, mainly due to the high technical barriers.
The company's products are positioned as domestic alternatives. At present, the new production line has been put into production. Downstream customers include Tianma, BOE, CLP Panda, and AU Optronics. It is expected that the business will start to increase in volume in 2019, and in the long run, the performance is flexible.
The company's EMI film and conductive adhesive film are raw materials for FPC production. The total market size of the two products is about 3 billion to 4 billion yuan, and the corresponding profit margin is a total of 700 million to 800 million yuan. As a new entrant, the company's products have entered the supply chain of downstream FPC companies such as Dongshan, Hongxin and Jingwang, with good product performance.
Some industry insiders said that with the advent of 5G communication, signal crosstalk will become the core problem to be solved. Therefore, the area of shielding materials in FPC will gradually increase, which will increase the demand for EMI shielding materials. 2-3 years through the 5G field layout is expected to bring increased performance.