CSG(SZ:000012)2022-12-06 11:28Production Capacity and Market Demand - The production capacity of the new line in Qingyuan is expected to be 1 million m² per month once it reaches mass production [2] - Currently, there are no domestic companies capable of producing this type of high-alumina glass, which primarily relies on imports to meet domestic demand [2] - The market share of Japanese products in this category is significant, with Corning holding a higher market share compared to Asahi Glass [2] Financial Performance and Profitability - The profitability of high-alumina glass will depend on the comprehensive cost and pricing after mass production [2] - The company experienced losses during the trial operation phase last year, but commercial operation is expected to enhance profitability [2] Strategic Investments and Governance - Qianhai Life has expressed confidence in the company's future development and has appointed three directors to the board [3] - The company is currently awaiting regulatory approval for its private placement, with no specific timeline available [3] Production and Inventory Management - The production capacity for ultra-thin glass is approximately 30,000 tons at Hebei Shiwang and 35,000 tons at Yichang Optoelectronics, with the company holding a 44% stake in Yichang [3] - The company maintains good inventory control, although there may be slight fluctuations due to the Spring Festival [4] Cost Management and Market Adaptation - Natural gas accounts for about 35% of the production cost of float glass, and the company is implementing various measures to reduce costs, such as lowering energy consumption and improving product yield [5] - The company is focusing on differentiated operations in response to the real estate market's impact, including transitioning to industrial glass and developing new products [6] Export and Market Reach - The company's engineering glass is exported to various regions, including Australia, Southeast Asia, Japan, South Korea, the Middle East, India, Canada, and Congo, with exports accounting for less than 10% of total sales [5][6] Future Plans and Share Structure - The company plans to convert B shares to H shares after completing a non-public issuance of A shares, aiming to enhance liquidity in the H share market [6]