Jiangsu Fanya Micro Transparent launched its IPO on the Science and Technology Innovation Board on September 21. This enterprise with ePTFE film material invisible champion, its technology leadership and market tension in the end where?

Introduction: ePTFE Magic

"One pot, half a jin of meat, two vegetables, three cloves of garlic, four peppers, five scallions", for many people, this is the best taste in the world. Ordinary people have POTS in their homes, especially non-stick POTS. Poly tetra fluoroethylene (PTFE) is the king of plastic.

PTFE has excellent chemical stability, corrosion resistance, sealing, high lubrication and non-viscosity, which benefits mankind a lot. The PTFE material can be expanded and stretched to form microporous film, hundreds of millions of micropores distributed on a square centimeter film, the size of only 1/20000 water droplets. The aperture is so small that liquid water and dust cannot pass through it, but air and water vapor can, making it "waterproof" and "breathable". The film is called expanded PTFE (ePTFE film).

Pan Asia Micro Penetration is a high-tech enterprise making progress in ePTFE membrane material technology. In 2003, we began to supply breathable cloth for Xingyu headlights (601799). In 2010, the company successfully developed black ePTFE breathable film, and is one of the few manufacturers that master high-end ePTFE film production technology in China. Our products have successfully entered many leading enterprises in the industry, such as Hua Yu Vision, Valeo, Hella lamp and Marelli.

A: Pan Asia Micro Permeable film with high water pressure and sound resistance can keep water tight for 10 minutes in 30-50 meters deep water. Only three companies in the world have mastered this technology, and it may become the standard product in the whole industry of consumer electronics

The prospectus of Fanyasia Micro Penetration shows that the business revenue of consumer electronics micro penetration products is growing rapidly, with a compound annual growth rate of up to 67% during the period, and the proportion of the main business revenue increased from 3.08% to 6.43%. The gross profit rate ranks the first among all main businesses, reaching 83.65%, 84.36% and 83.61% respectively.

Apparently, Pan Asia Micro penetration has found a new track - consumer electronics micro penetration products. Consumer electronics micropermeable products, represented by "water resistance sound permeable film", are rising strongly under the general trend of "waterproof" and "dustproof" in consumer electronics.

In addition to the waterproof and breathable properties of ePTFE film, the water-resistant and sound-permeable properties of EpTFe film are added: when the sound wave touches one side of the film, the film absorbs the energy of the sound wave and generates physical vibration, which drives the air on the other side to vibrate and generate sound wave of the same frequency, thus achieving a high level of sound transmission effect.

Using this film to seal the gaps and slots of smart phones, watches, bracelets and other electronic equipment, not only can achieve IP67, IP68 waterproof and dustproof grade, but also can make the sound through the waterproof film to maintain the best signal-to-noise ratio and the lowest distortion degree.

In 2016, the waterproof and dustproof performance of iPhone7 was upgraded to IP67 level, and later Apple WacthSeries2 further reached IP68 level. Samsung, Fitbit, Huawei and other companies followed suit. Its water pressure and sound permeable film technology is leading in the industry, so it is favored by the market. It has smoothly entered the supply chain system of Google, Xiaomi, Better Life and other famous brands, and has become one of the few suppliers of water pressure and sound permeable film for consumer electronics in the world.

Although the product performance is good, but Pan Asia Micro penetration still did not stop, but quickly launched an "upgraded version" - "30-50 meters high water pressure transparent film". The upgraded version is waterproof and dust-proof to IP68, and can stay watertight for 10 minutes in 30-50 meters of water.

This film is considered to be the standard feature of high-end consumer electronics in the future, but only three companies in the world have mastered this technology, the other two are Gore and Nitto Denko.

According to the estimated results of its prospectus, the potential total scale of water resistant sound permeable film in the consumer electronics industry in 2019 can reach 2.554 to 6.639 billion yuan.

At the present stage, the upgraded version of water resistant sound permeable film has successfully conquered Xiaomi and vivo, and Pan Asia Micro Permeable began to supply in small quantities. At the same time, it plans to raise 63 million yuan to build a "high water resistance and sound permeability ePTFE modified film for consumer electronics". Once the product is mass-produced, the potential market will become "real money".

B: In the field of new energy vehicles, Fanya Micro Penetration will take advantage of ePTFE to open billions of new markets and form a moat with technology

ePTFE film material "crisscroading" in a wide range of fields, its imagination space is far from consumer electronics.

On January 7, 2020, Tesla officially laid the foundation stone of the Shanghai Gigafactory, which is expected to have an annual capacity of 500,000 units when fully completed and operational.

Currently, about 30 percent of the Shanghai factory's components are made in China, but Tesla plans to increase that to 70 percent by 2020 and 100 percent by the end of the year.

China's new energy vehicle industry is expected to surge, parts suppliers can build canals to divert water.

Take Pan Asia Micro Penetration for example, the disruptive innovative product - CMD is the "channel".

CMD (CondensationManagement Device, condensation controller) can be used to solve the problem of headlight fog: when the headlight is off, there is no pressure difference between inside and outside, CMD valve is closed, supporting the suction agent in the internal absorption of water; When the lights are turned on, the internal temperature rises, the pressure difference is formed, the CMD valve is opened, and the absorbed water will become water vapor with the pressure excluded; When the lights are turned off again, the internal temperature drops, the pressure difference gradually reaches equilibrium, and the CMD valve closes. This cycle ensures that the interior of the lamp is dry.

The product has a certain substitution effect with the headlight breathable bolt in function, and the target customers are basically the same, which means that the sales channels do not need to be built repeatedly, greatly saving the cost of marketing;

In addition, the sales unit price is higher, up to 19.23 yuan, the average consumption of two bikes. It can be estimated that the global potential market size of CMD in 2019 is about 3.488 billion yuan, and the domestic market size is close to 1 billion yuan.

In terms of competition, Pan-Asia micro penetration is almost "invincible" : other domestic CMD suppliers are basically a blank, and foreign competitors need to use external power to drive the same product of the United States Gore, the cost and convenience lag far behind.