On November 18, Financial Associated Press (Reporter Lu Tingting) reported that at the third quarter performance briefing held by Grace Fabric Technology (603256.SH), the demand and price of electronic fabric, as well as the layout of mid to high-end products, became the focus of investor attention.

"Due to increased market demand, in the first three quarters of 2024, the product prices in the electronic fabric industry have somewhat recovered, but the prices of some products still remain at historical lows. In the future, with the recovery of consumer confidence, technological advancements in end products, and the development of new application areas will drive the recovery of product prices and sales volume," said Mao Jiaming, chairman and general manager of Grace Fabric Technology in response to a reporter from the Financial Associated Press.

Financial Associated Press reporters noted that in the third quarter of this year, the average selling price of Grace Fabric Technology's main products showed significant recovery. The company disclosed company business data indicating that the average selling prices (excluding tax) of major products in Q1, H1, and the first three quarters of 2024 were 3.68 yuan/m, 3.66 yuan/m, and 3.72 yuan/m respectively, with year-on-year change rates of -8.91%, -2.66%, and 1.92%.

In terms of global strategy, Mao Jiaming stated, "The company will respond to future uncertainties with a mid to high-end product strategy." The electronic fabric will continue to develop in the direction of thinner products, and the market share and proportion of high-end electronic fabric will continue to expand.

It is reported that electronic-grade fiberglass fabric is mainly used as a reinforcement material in copper-clad laminates (CCL), and ultimately applied in various electronic products in the form of printed circuit boards (PCB). The technological upgrades and product updates of end electronic devices such as smart phones, laptops, ai, and automotive electronics are driving the continuous upgrades of upstream electronic materials, requiring them to develop towards being "light, thin, short, and small."

The financial report shows that Grace Fabric Technology's electronic-grade fiberglass thin fabric, ultra-thin fabric, extreme thin fabric, electronic-grade fiberglass ultra-fine yarn, and ultra-fine yarn products belong to the mid to high-end range of fiberglass products.

Grace Fabric Technology stated that with the rapid development of the electronic information industry, copper-clad laminates not only need to act as substrates but also need to develop certain functional characteristics. The realization of these functions requires electronic fabric with corresponding functionalities as its raw materials, such as low dielectric constant electronic fabric (Low Dk/Df) and various functional electronic fabric products.

Future electronic products are developing towards high capacity and high-speed trends, with transmission speeds increasing rapidly. This puts new requirements on the performance of electronic fabrics, necessitating manufacturers to develop and produce high-frequency and high-speed electronic-grade fiberglass.

According to reporters from the Financial Association, in addition to the conventional mid-to-high-end electronic-grade fiberglass, grace fabric technology has laid out and developed electronic fabrics with low dielectric constant, low dielectric loss, and low thermal expansion coefficient, which reduces signal transmission loss in circuit board materials, enhances signal transmission speed, and effectively lowers the thermal expansion coefficient of the materials. Relevant products are applied in areas such as radar base stations and advanced IC substrates.