As Chinese touch panel manufacturers are facing more and more fierce competition, and some downstream module customers have increased the self-sufficiency of touch control sensors, prices of small and medium-sized touch panels have dropped dramatically since the end of 2010.

In 2011, small and medium-sized touch panel products of Laibao Hi-tech have suffered losses in both sales volume and price.

Laibao Hi-tech started production of large-sized touch panel in July 2011, with expected capacity of 8 million pieces in 2012. Supposing the capacity utilization is 80% in 2012, the large-sized touch panel project will bring about revenue of RMB550 million to the company, taking price fall into consideration.

In Sept., 2011, Laibao planned to invest integration capacitive touch panel project. It has conducted R&D on capacitive touch panel for a certain time and finished sample product for now. It is expected to go into operation in 2013.

Investment Projects of Laibao Hi-tech, 2011 (RMB mln)