Polarizer maker Cheng Mei Materials Technology (CMMT) will dispose of all its stake in Samoa-registered Chi Mei Materials Technology Investment at US$175 million, paving the way for its diversification to other industry sectors, according to he company.
It looks to complete the transaction by the end of first-quarter 2022.
CMMT estimates the capital gain from the disposal at NT$27.164 million (US$973,620) and will use the fund to step into development and production of separators of car-use battery cells and to replace old polarizer equipment.
While the existing production lines can make polarizers used in up to 70-inch display panels, CMMT has used new materials and new processes to produce polarizers for use in up to 130-inch panels, the company noted. CMMT is in process of certification for polarizers used in over 70-inch panels and expects shipments to begin in 2022.
Besides, CMMT has developed new models of polarizers featuring privacy design and low blue light for use in LCD monitors and notebooks as well as polarizers for use in miniLED backlighting, TV panels and high-transparency panels used in public information displays.
CMMT posted consolidated revenues of NT$8.316 billion, gross margin of 7.72%, operating profit of NT$157 million and net profit of NT$721 million for the first three quarters of 2021.
Of the three-quarter revenues, 47% came from the domestic market, 28% from China and 25% from Japan. In terms of applications, TVs accounted for 44% of the revenues, monitors and notebooks for 43%, and small- to medium-size panels and others for 13%.
CMMT will begin to ship polarizers for wearable devices in 2022 and gradually decrease the shipment proportion for polarizers used in smartphones that offer lower gross margins.
CMMT keeps developing high value-added polarizers and expects the corresponding revenue proportion to reach 15% in 2022 and further to 20% in 2023.
CMMT estimates fourth-quarter 2021 consolidated revenues to remain unchanged or slip about 5% sequentially.
