On the afternoon of May 19, Shenzhen Textile (Holdings) Co.Ltd(000045) ( Shenzhen Textile (Holdings) Co.Ltd(000045) . SZ) held the 2021 annual general meeting of shareholders. Since Shenzhen textile line 7 was put into operation, the business development of line 7 has always been the focus of the company's shareholders. Executives of Shenzhen textile company also told reporters today that the difficult time of mass production of line 7 has passed. At present, the order volume and yield of line 7 have been significantly improved. As an upstream supplier of panel enterprises, in the face of the panel market which is still "falling endlessly", the above-mentioned person also disclosed his views and the company's Countermeasures to reporters.
"At present, the sales volume of line 7 has increased month by month, and the loss in the production process has also been significantly reduced," Zhu Meizhu, general manager of Shenzhen textile, told the financial associated press.
According to the annual report, in the past two years, the polarizer business of Shengbo optoelectronics, a subsidiary of Shenzhen textile, has contributed more than 90% of the revenue to Shenzhen textile. In the polarizer production line of Shenzhen textile, line 7 focusing on large-size polarizers is the most concerned. It is reported that line 7 was officially put into operation in July 2021. At present, its main products have been verified by customers, including Chinese head panel manufacturers.
"Line 7 has been mass produced and shipped at the end of last year, but the volume is relatively small. This year, including April and may, orders are in a relatively full state," Zhu Meizhu further disclosed to the associated press. Zhu Meizhu also told reporters that this year, line 7 is expected to become the main source of incremental performance of the company.
As an upstream supplier of panels, the market of downstream panels is very important for the development of Shenzhen textile. However, since Q3 last year, panel prices have continued to fall, and there are still no signs of stopping falling so far. According to Qunzhi consulting data, the price of small and medium-sized panels will maintain a decline of $1 ~ 2 in May, while the price of large-sized panels will show a large decline of more than $5.
In this regard, Zhu Meizhu told reporters that the decline in panel prices is affected by the epidemic situation, the international situation and other factors. Due to the relatively few polarizer manufacturers in China and the company's leading product R & D, the downstream demand is still relatively high.
Asked whether there would be a risk of product inventory backlog under this market, Zhu Meizhu said that "the company is still relatively healthy at present". Zhu Meizhu told the financial associated press that the inventory of the company's production lines 1-6 is mainly raw materials. One is to actively dispatch when there are structural opportunities in the panel market, and the other is to ensure the stability of the supply chain.
It is worth noting that in the 2021 work report of the board of directors of the general meeting of shareholders, the company also stated that "strengthening the technical research on vehicle polarizer" is one of the priorities of 2022. For the current progress of vehicle polarizer business, Zhu Meizhu told the financial associated press that it is still in the stage of R & D and sample, and foreign manufacturers still have great advantages in this field. However, because Chinese companies have more logistics advantages, it is expected that there will be greater development space in the future.
