FPC supplier Asia Electronic Materials (AEM) has experienced betterment of its production lines and product optimization, waving goodbye to the worst past. This year AEM will get it feet back on the right track and expect to see growth season by season. Most of its customers are Chinese, whose market share is on the rise and hence the company’s performance. On top of that, TPI, its fresh signature product, is in place and ready to serve the market, with 5G high-speed transmission expected to shine in 2018. It is estimated by judicial persons that there will be 10 to 20% of increase of annual growth this year and the gross margin will leap to at least 25%. Losses incurred due to bad debts will be unlikely this year.
 

AEM currently still prides on cover films and stiffeners. However, the price of yellow cover films plummeted last year as a result of competition. The company therefore promoted black cover films, which has high profit margin, and increased its ratio from 8% to 18% over a year. In addition to cover films, FCCL developed on the basis of TPI and PI materials are targeted at Chinese clients, who are FPC suppliers. The results are expected to be seen in the second half of 2017, which is helpful in promoting ASP.

 

AEM’s clientele used to be formed by medium and small enterprises in China, whose credit and risk management is in question. Last year, it initiated some efforts by suspending trade with customers with outstanding receivables and collecting past due payments. Most of AEM’s clients are of greater scale and are more globally diverse, with more than half listed in stock exchange market. Of 10 greatest FPC suppliers worldwide, AEM has brought half into its loop. Major customer of AEM now include: Career, BYD, Leader-Tech, and MFlex. (Source: Money DJ Financial site-Focus News)