Optical film and light guide plate maker Wah Hong Industrial has completed relocation of its factory in Qingdao, China, according to the company.
Because the factory was located in an area to be redeveloped, the local government of Qingdao had to take down buildings of the factory and offered CNY87.705 million (US$12.4 million) in compensation for the relocations, Wah Hong said, adding it has set up a factory elsewhere and will soon kick off production.
As a result of pandemic-driven WFH needs, demand for notebooks and IT products has drastically increased. Consequently, Wah Hong saw a large increase in shipments for optical film used in notebook- and IT-use LCD panels in first-half 2021.
As many new high-end LCD TVs and notebooks will be launched in third-quarter 2021, Wah Hong expects optical film shipments in the quarter to significantly grow. Wah Hong has begun production of optical film used in miniLED backlighting.
Viewing that global demand for new cars is recovering from the impact of the pandemic, Wah Hong expects orders for anti-shatter film used in LCD panels for automotive displays to rebound.
Wah Hong posted consolidated revenues of NT$2.661 billion (US$95.2 million), gross margin of 9.90%, operating profit of NT$72.7 million, net profit of NT$18.9 million and net EPS of NT$0.19 for second-quarter 2021, leading to consolidated revenues of NT$5.362 billion, gross margin of 11.02%, operating profit of NT$169.3 million, net profit of NT$114.9 million and net EPS of NT$1.17 for first-half 2021.1
