By reason of big-screen TV becoming the mainstream, the board of directors of Chi Mei Materials Technology Corporation, a major polarizer maker in China decides to invest 1 billion RMB(about 4.6 billions TWD) to establish its subsidiary corporation, which can support expanding the production of the third 2.5-meters ultra width production line. On account of this, CMMT could use their new production to occupy the market, empowering their operation.
CMMT’s overall arrangement in Chinese mainland is co-operating with NITTO, the leading enterprise, to plan on setting three 2.5-meters ultra width production lines in five years, by which CMMT could take advantage of the favorable situation to surpass the competitors, occupying 20% of the market of Chinese big-screen TV, becoming one of the most important polarizer makers.
CMMT announced had got the permission in technology by NITTO, reinvested in installing a world first 2.5-meters width production line in the factory in Kunshan. The production line was predicted to be brought on stream in the second quarter in 2019 at the soonest. On account of the panel factory BOE had built its momentum in Hefei, Wuhan and Chengdu, the third 2.5-meters production line was settled down in Xian finally, providing the 10.5 generation panel closer to where it is needed.
From the prediction of CMMT, after all of the three 2.5-meters production lines being brought on stream, the annual production capacity could be rapidly increased to one hundred million square meters, which could help CMMT to occupy 20% of the Chinese market, battling against LG.
CMMT’s revenue in the last December is 1.05 billion RMB, reduced 2.86% than the last month. The revenue of the last whole year is 11.393 billions, with a positive 9.5% annual rate. CMMT caught up in the niche market like mobile phone and car, promoted 30% of the revenue of the application of the small and medium size polarizer to increase the average unit price. At the same time, the 58 inches TV polarizer had achieved the permission to ship, promoted the revenue in the last December to keep it relatively high.
The board of directors increased the leverage about 146 million dollars by Chi Mei, Kunshan in the last November. Hangzhou Jinjiang Group, the former substantial shareholder of CMMT, is planning to transfer the 46% stock rights to Xi’an hengchun investment management partnership(Xi’an fund). Jinjiang Group and Zhejiang Renyuan import and export co. LTD. had stopped increasing the leverage. 146 million dollars is invested by Xi’an fund and CMMT(Taiwan), each investment is 50%.