During the reporting period, Xiangteng New Materials’ main products included polarizers, optical films and functional adhesive materials of various specifications. In the context of the deepening division of labor in the industrial chain of the new display industry, the company relies on the precision processing technology accumulated over the years and goes through finishing processes such as slitting, lamination, die-cutting, sorting, edge grinding, inspection, and cleaning to produceVarious specifications of polarizers, optical films, functional adhesive materials and other products.
At this stage, the main production bases of global display devices are concentrated in four countries and regions: mainland China, Taiwan, Japan, and South Korea. Manufacturers in Japan, South Korea and Taiwan invested heavily in the display industry earlier, forming large multinational companies represented by Sharp, Samsung, LG, AUO, Innolux, etc., and occupying the leading edge in technology. Under the influence of various factors such as policies, funds, talents, and markets, after more than ten years of efforts, mainland China has successfully broken the "three-legged" market structure of Japan, South Korea, and Taiwan in the past, and a number of domestic companies represented by BOE, CSOT, and CEC Panda have emerged, gradually occupying an important position in the LCD field.
The overall shipment volume of LCD panels in global LCD TVs, desktop monitors, notebooks and other fields is large, and the shipment area is steadily improving. The LCD panel industry in mainland my country is developing rapidly. Xiangteng's new material products mainly include polarizers, optical films and functional adhesive materials. During the reporting period, the company's performance grew rapidly, with net profits reaching 69.1472 million yuan, 92.281 million yuan and 74.3179 million yuan respectively. Currently, the company has cooperated with SDP, CEC Panda, BenQ AUO, We have established good cooperative relationships with many leading LCD panel manufacturing companies and well-known companies in the industry chain such as Huike Co., Ltd., Zhongqiang Optoelectronics, Starion, Ruiyi Optoelectronics, BOE, etc. The company's products are ultimately used in LG, Xiaomi, Sharp, Dell,HP, Microsoft, ASUS, Skyworth, Samsung, Huawei, BenQ and other well-known brands.
In recent years, the LCD industry is one of the industries that my country is currently focusing on development. The State Council and many national ministries and commissions have promulgated a series of industrial policies to promote the healthy and rapid development of the LCD industry. In the "Information Industry Development Guide" issued by the Ministry of Industry and Information Technology and the National Development and Reform Commission in December 2016, "expanding the scale application fields of new display devices and realizing large-scale production of ultra-high-resolution LCD products" is one of the development priorities; in 2018, the National Bureau of Statistics included display device manufacturing (industry code 3974) as a strategic emerging industry.
Due to the continuous release of high-generation line production capacity in mainland China and the closure or sale of LCD production lines by Korean panel manufacturers, global LCD production capacity is rapidly gathering in mainland China. According to data from Luotu Technology and China Galaxy (601881) Research Institute, since 2018, mainland China has become the region with the largest production capacity of large-size LCD panels in the world. In 2020, mainland China's large-size LCD panel production capacity will account for more than 50% of the global market.
Chinese LCD panel companies, led by BOE and CSOT, are vigorously expanding production and increasing production capacity. China's LCD share in the world is gradually increasing, which has also driven the demand for polarizers. According to data from Qianzhan Research Institute and Guoyuan Securities, in 2014, China's polarizer market size was 17.887 billion yuan, accounting for approximately 25.07% of the global market. In 2019, it reached 25.173 billion yuan, with a compound growth rate higher than the growth rate of the global polarizer market, accounting for approximately 30.08% of the global market.
From 2019 to 2021, as the downstream demand of the display industry continued to grow steadily and the LCD panel industry chain accelerated its shift to mainland China, Xiangteng New Materials continued to invest in process research and development. Its product quality and service efficiency were recognized by customers, and it accumulated stable and high-quality customer resources. During the reporting period, the company's operating income increased from 694.792 million yuan to 1.2929597 million yuan, with a compound annual growth rate of 36.42%, maintaining a high growth level.
As display screens gradually become lighter and thinner, components are also developing towards composite and multi-layered structures. Customers have increasingly higher requirements for the precision and yield of die-cut products and the rapid response capabilities of suppliers. In order to meet the requirements of mass production andTimely and high-precision requirements, Xiangteng New Materials combines market demand and, through long-term exploration and accumulation, has formed a series of independently developed core technologies such as automatic slitting technology, intelligent feeding technology, high-precision molding technology, automatic sorting technology, continuous laminating technology, automatic peeling technology, and automatic packaging technology. Up to now, the company has a total of 92 patents related to production processes, including 5 invention patents and 87 utility model patents. The main production processes are representative.
In response to the individual needs of customers, Xiangteng New Materials' technical team can call upon relevant professional talents and resources in a targeted manner to provide customers with satisfactory products and solutions. As the company deepens its cooperation with customers, the company can achieve productThe horizontal extension of products has helped the company form a virtuous business cycle of "single product entry - improvement of customer cooperation relationships - new product extension - multi-category product supply", further enhancing customer stickiness. The continuous improvement of customer stickiness enables the company to achieve sustainable development and maintain core competitiveness.
With this stock issuance, Xiangteng New Materials raised funds to invest in optoelectronic thin film device production projects, R&D center construction projects, and supplement working capital. The company stated that the implementation of the "Optoelectronic Thin Film Device Production Project" will expand the company's production scale, enhance the company's product supply capabilities, and meet downstream market demand. At the same time, the company will use this project to build a new high-clean level production workshop, build new production lines, improve process flows, and increase production efficiency.; By adding advanced quality inspection and testing equipment, we will strengthen the construction of testing capabilities, thereby improving the quality of products, continuously improving the company's core competitiveness and market share in the industry, and promoting the company's further development and growth.
The implementation of the "R&D Center Construction Project" can strengthen the company's technological innovation capabilities and improve core competitiveness. At the same time, it will increase investment and expansion of products in fields such as vehicle-mounted displays. At the same time, it will lay out other optoelectronic display application materials and adhesive materials for LCD panels, OLED display application materials, etc., accelerate new product development and industrialization, improve product structure; improve scientific research hardware conditions, and attract high-level scientific researchers.
ANNA