According to the Zhitong Finance APP, on June 3rd, Charley Zhou, Chief Analyst at CINNO Research, released the Q1’25 High-Performance Film Industry Observation. Based on CINNO Research's industry statistics, influenced by the downstream industries such as new displays and new energy, the investment amount in China's high-performance film industry in Q1’25 increased both year-on-year and month-on-month, with new investments mainly concentrated in the field of high-performance films for new displays.

Under the continuous national subsidy policy and the impact of expected increased tariffs from the United States, panel demand has been brought forward, and shipment quantities exceeded expectations. The global LCD display panel shipment area in Q1’25 increased both year-on-year and month-on-month, reaching a peak, driving growth in the supporting demand of the industrial chain. The revenue of upstream high-performance film manufacturers for new displays increased overall year-on-year but decreased month-on-month, while the overall gross profit margin for sales increased both year-on-year and month-on-month.

Industry News Review

According to CINNO Research's daily industry news, in terms of project construction in the high-performance film industry in Q1’25, several high-performance film projects have been planned, constructed, and put into production, including the high-performance lithium battery separator project in Malaysia by Xingyuan Material, the high-end separator project in Heze by Chenlong Holdings, the functional optical film project in Qingyuan by Mofazhi, the high-performance polyimide film project in Anqing by Chuangcai Optics, the optical film project in Shaoxing by Yuyue New Materials, the high-end TAC optical film project in Chuzhou by Tianlu Technology, the high-end polarizer project in Zhuhai by Hongmao Optoelectronics, and the optical film project for new displays in Chengdu by Huasheng New Display.

In terms of investment and financing and market expansion, Fuyin New Materials has been listed on the New Third Board; Xinmei Materials acquired the optical functional film business of South Korea's LGC; the acquisition of LG Chem's SP polarizer business by Shanjin Optoelectronics has been completed; Xiaoxing Chemical announced the sale of its optical film division; SHIHUA Technology plans to raise funds through a private placement to expand the production of optical display film materials; and Jiemai Technology completed a project acquisition worth 30 million yuan.

Figure: Q1’25 Global High-Performance Film Industry News Review Source: CINNO Research Display Industry Daily News, CINNO Research New Energy Industry Daily News

Industry Investment Trends

According to CINNO Research's industry statistics, influenced by the aforementioned downstream industries such as new displays and new energy, the investment amount in China's high-performance film industry in Q1’25 increased both year-on-year and month-on-month, with new investments mainly concentrated in the field of high-performance films for new displays.

Illustration: Q1’25 Investment Distribution of China's High-Performance Film Industry Source: CINNO Research

Industry Outlook

Illustration: Revenue Trends of Representative Manufacturers of High-Performance Films for New Displays from Q4’23 to Q1’25 Source: Public Data, Organized by CINNO Research

According to CINNO Research industry statistics, the global new energy vehicle market continued its high growth trend in Q1’25, with the industry's development shifting from policy-driven to technology-driven trends deepening, driven by both high-end and lower-tier markets, and the global supply chain accelerating its restructuring; the global photovoltaic market exhibited a coexistence of supply-demand adjustments and structural differentiation, with industry chain prices under continuous pressure, and the market brewing a new balance amid capacity clearing and technological upgrades. The revenue of upstream high-performance film manufacturers for new energy applications declined both year-on-year and quarter-on-quarter, while the overall gross profit margin decreased year-on-year and increased quarter-on-quarter, with operational trends diverging between lithium battery and photovoltaic high-performance film manufacturers.

Illustration: Revenue Trends of Representative Manufacturers of High-Performance Films for New Energy from Q4’23 to Q1’25 Source: Public Data, Organized by CINNO Research

In 2024, the global photovoltaic industry faces multiple challenges: new production capacity continues to enter the market while demand growth slows, putting pressure on the profitability of the entire industry chain. The sales prices based on reasonable profits have not been implemented step by step, and different degrees of losses have appeared in various links of the industry chain. Component manufacturers show insufficient willingness to operate, exacerbating the supply-demand mismatch in the upstream high-performance film industry. Leading enterprises maintain competitiveness through global layout and advanced technology, but the overall industry's profit recovery still needs to wait for supply-demand rebalancing. Considering cost improvements and profit enhancements, the pace of new capacity construction is gradually slowing down, and the focus of industrial development is shifting towards quality and efficiency enhancement.

Regarding high-performance films for new displays, according to CINNO Research industry statistics, the global panel industry is showing steady growth in terms of capacity, shipments, and revenue in 2024. Mainland China, as the core region for global panel manufacturing, continues to expand its market share, further solidifying its dominant position in the global industry chain. The upstream core raw material industries, such as high-performance films, are accelerating their agglomeration, with related project investments and mergers and acquisitions becoming dense, and the high-quality restructuring of the industry structure has entered a deep-water zone