The upcoming listing of Rexcom New Materials intends to publicly issue 20 million shares to raise funds for two projects, the metal-plastic composite belt product expansion project (Shanghai project) and the metal-plastic composite belt product construction project (Chengdu project). If the new information network is successfully listed, the capital market will add a new member of the fiber optic cable.

Rexcom New Materials is mainly engaged in the research, development, production and sales of communication cable, communication steel cable plastic composite tape, aluminum plastic composite tape (collectively referred to as "metal plastic composite tape"), the main products used in communications cable (referred to as "optical cable") The integrated sheath in the communication cable plays a role of shielding, moisture blocking, and armoring so that the cables of communication optical cables and communication cables are free from external electromagnetic interference and moisture erosion. Resisting the external stress, it provides protection for the laying of communication optical cables and communication cables in various applications to ensure the stability and reliability of information transmission.

Rexcom New Materials is a domestic metal-plastic composite belt manufacturer with the strongest technical strength. It is the new standard revision unit of China's communication industry standard YD/T723-2007 “Metallic Plastic Composite Tape for Communication Cables and Optical Cables”. The new material has now become the leader in the future development direction of the domestic metal-plastic composite belt segment.

Consistent with the development cycle of the global optical communications industry, China's optical communications industry has also entered a new round of boom cycles, and the demand for domestic optical fiber and cable has risen rapidly. In 2008, the domestic optical fiber demand has reached approximately 45 million core kilometers, and is expected to reach 60 million core kilometers in 2009, which is an increase of nearly 5.4 times from the lowest valley of 9.4 million core kilometers in 2002. Behind the scenes is the extension of the “fiber optics” of the entire communications network from the backbone network to the metropolitan area network and access network, which has led to a rapid increase in the demand for fiber optic cables.

In the future, the demand for domestic optical fiber and cable will continue to grow strongly, benefiting from the 3 major operators, especially the construction of China Mobile's metropolitan area network and the introduction of FTTx's entry into the scale of development. It is expected that the demand for domestic optical fiber and cable will maintain 20% in the next 3 years. With the growth, FTTx will become the biggest driving factor in the growth of fiber optic cable demand in the future.

Driven by the government and operators, China's FTTx number exceeded 5 million lines in 2008, far exceeding the 200,000 lines in 2007. As of the end of 2008, China's FTTx subscribers approached 6 million, and it has become the third largest FTTx market in the world. China's FTTx has entered a period of large-scale commercial promotion in 2008. In recent years, with the continuous development of technology and the centralized purchase of FTTx equipment by operators, the construction cost of FTTx in China has been greatly reduced. At present, the cost per line of FTTH can be reduced to around 1800 yuan, while the cost per line of FTTB+LAN mode has dropped below 1,000 yuan. The current access bandwidth advantages, coupled with the continuous decline in costs, make FTTx a comparative advantage over ADSL. Undoubtedly, it will also bring about a substantial increase in user demand.

It is expected that in the “Eleventh Five-Year Plan” period and in the near future, the profit level of the domestic metal-plastic composite belt industry will steadily increase.

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