The hottest glass substrate business has begun to

The glass substrate business has begun to work hard, and Dongxu optoelectronics' performance has soared.

years of hard work are reaping rich returns. The sixth generation glass substrate project invested and built by Dongxu optoelectronics, a leading domestic glass substrate company, in 2013 began to contribute revenue in the second quarter of this year, thereby driving the rapid growth of its performance in the first half of the year. Analysts believe that with the release of the sixth generation glass substrate project capacity, Dongxu optoelectronics is expected to usher in a period of rapid performance growth in the next two years

on July 15, Dongxu optoelectronics released the interim performance forecast, and the net profit of the Company attributable to the shareholders of the listed company in the first half of the year was 1.5 billion yuan, a year-on-year increase of 250.98%-264.14%. Previously, the 2014 leading quarterly financial report released by Dongxu optoelectronics showed that the operating revenue reached 577 million yuan, a year-on-year increase of 201.83%; The net profit attributable to the shareholders of the listed company was 208million yuan, an increase of 235.56% year-on-year

the relevant person in charge of Dongxu optoelectronics said that he had read the records of fault analysis and repair in the technical archives of the tensile testing machine; Check daily inspection card, spot inspection card and regular inspection card; Looking up the shift handover records and the records of protection and maintenance, Dongxu optoelectronics' products have been certified by many LCD panel manufacturers including BOE, and the product shipment is also very smooth. Therefore, from this year, the base plate products will be supplied in batches steadily, and the company's revenue is expected to increase significantly

glass substrate

breakthrough in international technological monopoly

public information shows that the predecessor of Dongxu optoelectronics is gem a, which was once a well-known domestic manufacturer of CRT glass shell, the core component of color TV. However, since 2004, due to technology substitution and the impact of flat-panel displays, traditional CRT color TVs have been in trouble, and gem a has also suffered losses for many years. In 2007, it was also *st. However, later, Dongxu group, a private enterprise, reorganized gem a, renamed Dongxu optoelectronics, and began to transform from CRT production to liquid crystal glass substrate production

glass substrate is the upstream raw material of liquid crystal panel, accounting for about 20% of the panel cost. It is at the top of the industrial chain, with high technical barriers, extremely complex processes, but also relatively rich profits. At present, there are four major suppliers of glass substrates in the world, namely American Corning, Japanese Asahi Salter, electric Salter and Salter. These enterprises occupy 90% of the market, of which Corning occupies nearly 50% of the global market share

this is a monopolistic and competitive market, because the core technology is in the hands of these enterprises, which also leads to glass substrate enterprises having strong bargaining power over their downstream, and the enterprise's profitability is high. Public information shows that in recent years, Corning's gross profit margin has exceeded 60%, and its net profit margin is about 30%

in May 2010, Dongxu group built the first G5 generation glass substrate production line with completely independent intellectual property rights in Zhengzhou. In December of the same year, Dongxu group completed the first G4.5 generation 0.5mm ultra-thin glass substrate production line in Chengdu. In April last year, Dongxu optoelectronics raised 5billion yuan to invest in the construction of 10 6th generation (compatible with the 5th and 5th generation) flat panel display glass substrate production lines in Wuhu, Anhui Province, with a production capacity of 5million pieces/year to ensure the operation quality of our customers. This move also makes Dongxu optoelectronics Wuhu factory become the world's leading 6-generation glass substrate line production base

this is because Dongxu group, the current major shareholder of Dongxu optoelectronics, has long been making technical preparations. In 2004, Dongxu group once set up a TFT-LCD liquid crystal glass substrate research and development team. After several years of research and development and accumulation, it now has 635 patents, with an annual application rate of 30%

in the past two years, with the continuous expansion of Dongxu optoelectronics' production line, the cluster effect of its glass substrate production line began to appear. Previously, Dongxu optoelectronics managed the 5th generation line of Dongxu group and Sichuan Xuhong optoelectronics. Sichuan Xuhong began the industrialized production of high aluminum cover glass in February this year. Cover glass is the main raw material for manufacturing touch screen, with a high profit margin. However, due to technical reasons, domestic enterprises are rarely able to produce, and the market has been monopolized by foreign enterprises. Xuhong optoelectronics' intervention began to break foreign restrictions

set up an industrial alliance to release production capacity

while making technological breakthroughs, the LCD panel market with huge demand is also opening its arms to Dongxu optoelectronics. On May 20 this year, BOE A and Dongxu optoelectronics simultaneously announced that the two sides signed a comprehensive strategic cooperation agreement to carry out business cooperation in the field of liquid crystal glass substrates, industry, technology and other fields, and the cooperation is valid for 5 years

according to the agreement, both parties agree that on the premise of conforming to the cooperation, BOE's annual purchase of the company's liquid crystal glass substrate is not less than 80% of BOE's domestic liquid crystal glass substrate consumption in that year. At the same time, BOE's sixth generation panel production line in Hefei purchases the company's LCD glass substrates every year, gradually reaching more than 60% of the actual use of LCD glass substrates in this production line every year; BOE's fifth generation panel production line in Beijing purchases the company's liquid crystal glass substrates every year, gradually reaching more than 60% of the actual use of liquid crystal glass substrates in this production line every year

behind the alliance is that BOE can obtain lower procurement costs. Senior insiders said that with the accumulation of technology and the release of production capacity in the domestic glass substrate industry, the price of glass substrates in the same category will have an impact on reducing the investment of human resources, so as to reduce the procurement cost of LCD panel enterprises

an insider said that the cooperation between BOE and Dongxu optoelectronics has opened a new era, because the global display industry has begun to enter the Chinese era

before signing a strategic cooperation agreement with BOE, Dongxu optoelectronics' sixth generation products have been padded and tightened to obtain batch certification from BOE, Zhonghua picture tube and other LCD panel manufacturers. It is understood that the certification of Dongxu optoelectronics' 6th generation line products and liquid crystal panel manufacturers such as qunchuang optoelectronics and Youda are also in progress

with the certification and cooperation of downstream enterprises, Dongxu optoelectronics' production capacity is also beginning to be released in succession. According to Dongxu optoelectronics, the production line of Dongxu optoelectronics Wuhu 6th generation line is in good condition, and the product customer certification and shipment are smooth. The company has completed the ignition of four 6th generation glass substrate production lines in Wuhu, which have been successfully put into operation and operate stably, and the yield and stability have reached the expected goals; Line 4 also operates as planned, and the progress will be adjusted according to customer development. In addition, the main body of phase II plant has been completed, and the manufacturing progress of production line equipment is more than half. It is expected that the ignition of lines 5 to 8 will be completed this year

the successive production of Dongxu photoelectric 6th generation line has also been gradually concerned by the capital market. According to the analysis report, Dongxu optoelectronics' performance growth in the next two years will mainly come from the release of 6-generation substrate capacity

multiple industrial policies support

in addition to technological breakthroughs and capacity release, from the market level, industrial policies are also actively supporting and encouraging the independent development of domestic glass substrates

according to the development plan of strategic emerging industries, the localization of panel raw materials and core equipment has been put on the agenda. As a key raw material, glass substrate has an urgent need for localization and replacement. Industrial policies will vigorously support the development and growth of local glass substrate industry

according to the development plan of the new material industry, TFT-LCD glass substrates have been listed in the key development product catalogue, and it is estimated that China will need about 100million square meters of flat panel display glass substrates per year by 2015

the strategic emerging industry development plan proposes that the new flat panel display, as a major project, proposes to carry out the development of key technologies and new processes of TFT-LCD display panels, implement the industrialization project of key supporting materials such as glass substrates and core production equipment, improve the localization matching rate, and provide support through "subsidies to substrate manufacturers", "subsidies to panel manufacturers for domestic raw material procurement", etc

2014 tariff implementation plan shows that at the beginning of this year, the provisional tariff of liquid crystal glass substrates of 6 generations and below was raised to 6% from 4% in 2013, and the provisional tariff of liquid crystal glass substrates of more than 6 generations (excluding 6 generations) remained at 4%

it is understood that the yield rate of the 5th generation products put into production by Dongxu optoelectronic trusteeship company has reached 70%~80%, and the yield rate of the 6th generation products has reached 70%~75%. The higher yield rate indicates that the company's technology is becoming more and more mature, and the product performance is higher. Moreover, the strength of Dongxu Optoelectronics in recent years has also been recognized and valued by foreign-funded enterprises

at present, from the perspective of the layout of Dongxu group's entire optoelectronic industry, the overall annual production capacity of Dongxu group's glass substrates will reach about 14million square meters after the completion of the construction of three planned generation 4.5 lines, 10 generation 5 lines and 10 generation 6 lines, initially having the strength to move towards global competition

the relevant person in charge of Dongxu optoelectronics said that compared with imported products, domestic substrates have a cost advantage of 10% - 20%, so there is great potential for domestic import substitution of glass substrates in the future

China glass () Department