CINNO Research: In Q1 2025, the investment amount in the high-performance thin film industry in Mainland China increased compared to both the same period last year and the previous quarter.

On June 3, Charley, Chief Analyst of CINNO Research, released the Q125 High-performance Thin Film Industry Observation. According to the industry statistical data of CINNO Research, influenced by the downstream industries such as new displays and new energy, the investment in the high-performance thin film industry in mainland China in Q125 increased compared to the previous year and the previous quarter. The new investments are mainly focused on the high-performance thin film field for new displays. Due to the continuous subsidies policy and the expectation of increased tariffs by the United States, there was a pre-emptive demand for panels, resulting in shipments exceeding expectations. In Q125, the global LCD display panel shipment area increased compared to the previous year and the previous quarter, reaching a temporary peak, driving the growth of the industry chain supporting demand. Upstream manufacturers of high-performance thin films for new displays saw an overall increase in revenue compared to the previous year, but a decrease compared to the previous quarter, with overall sales gross profit margin increasing compared to both the previous year and the previous quarter. Industrial News Review According to CINNO Research's daily industry news, in Q125, various high-performance thin film projects were planned, under construction, and put into operation, such as Shenzhen Senior Technology Material's high-performance lithium battery diaphragm project in Malaysia, Chenlong Holdings' high-end diaphragm project in Heze, Mofa smart functional optical film project in Qingyuan, Chuangcai Optical high-performance polyimide film project in Anqing, Yuyue New Material's optical film project in Shaoxing, Tianlu Photonics' high-end TAC optical film project in Chuzhou, Hongmao Optoelectronics' high-end polarizer project in Zhuhai, and Huasheng Xinxiang's new display optical film project in Chengdu. In terms of investment and market expansion, Fuyin New Materials was listed on the New Third Board; Xinmei Materials acquired LGC's optical functional film business in South Korea; Shanjin Optoelectronics completed the acquisition of LG Chemical's SP polarizer business; Xiaoxing Chemical announced the sale of its optical film business division; Suzhou Shihua New Material Technology Co., Ltd. plans to raise funds through private placement to expand the production of optical display film materials; Zhejiang Jiemei Electronic And Technology's 30 million yuan acquisition project was completed. Industry Investment Trends According to CINNO Research's industry statistical data, influenced by the new displays, new energy and other downstream industry trends mentioned above, the investment amount in the high-performance thin film industry in mainland China increased compared to the previous year and the previous quarter in Q125, with new investments mainly concentrated in the high-performance thin film field for new displays. Industrial Market Outlook According to CINNO Research's industry statistical data, in Q125, the global new energy vehicle market continued to grow rapidly, with the industry development transitioning from policy-driven to technology-driven, driven by both high-end and low-end markets, and the global supply chain accelerating restructuring. The global photovoltaic market is facing a situation of supply-demand adjustment and structural differentiation, with continuous pressure on industry chain prices. The market is brewing a new balance between capacity clearing and technology upgrade. Upstream manufacturers of high-performance thin films for new energy saw a decline in revenue both compared to the previous year and the previous quarter, with overall gross profit margin declining compared to the previous year but increasing compared to the previous quarter. The operational trends of lithium battery and photovoltaic high-performance thin film manufacturers are differentiating. The global photovoltaic industry faced multiple challenges in 2024: new capacity entered the market one after another, coupled with a slowdown in demand growth. The overall profitability of the entire industry chain was under pressure, and sales prices set based on reasonable profits were not implemented progressively, leading to varying degrees of losses in different segments of the industry chain. Component manufacturers lacked enthusiasm to start production, exacerbating the mismatch between supply and demand in the upstream high-performance thin film industry. Leading companies maintained their competitiveness through global layout and advanced technology, but industry-wide profit recovery still awaited a supply-demand rebalance. Considering cost improvements and profit enhancements, the speed of new capacity construction gradually slowed down, and the focus of industry development shifted towards quality enhancement. Regarding high-performance thin films for new displays, according to CINNO Research's industry statistical data, the global panel industry showed a steady growth trend in terms of capacity, shipments, and revenue in 2024. Mainland China, as the core region for global panel manufacturing, continued to expand its market share, further consolidating its dominant position in the global industry chain. Upstream core raw material industries such as high-performance thin films accelerated aggregation, with numerous project investments and mergers and acquisitions taking place, marking a high-quality restructuring of the industry structure entering deep waters.