Yicheng Xinneng: The wholly-owned subsidiary plans to build an ultra-fine diamond line project with an annual output of 2 million kilometers.

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On December 12, 2017, the company's wholly-owned subsidiary Pingdingshan Yicheng New Materials Co., Ltd. (referred to as “Yicheng New Materials”) plans to use the company's own funds to invest in the construction of an ultra-fine diamond line project with an annual output of 2 million kilometers. The total investment of this project is 225.91 million yuan. After the project is completed and put into production, it will realize a tax-included operating income of 320 million yuan, including tax revenue of 273.50 million yuan, tax and additional 3.51 million yuan, and value-added tax of 26.95 million yuan. The total annual profit of the project is 42.91 million yuan. On December 12, 2017, the company's wholly-owned subsidiary Pingdingshan Yicheng New Materials Co., Ltd. (referred to as “Yicheng New Materials”) plans to use the company's own funds to invest in the construction of an ultra-fine diamond line project with an annual output of 2 million kilometers. The total investment of this project is 225.91 million yuan. After the project is completed and put into production, it will realize a tax-included operating income of 320 million yuan, including tax revenue of 273.50 million yuan, tax and additional 3.51 million yuan, and value-added tax of 26.95 million yuan. The total annual profit of the project is 42.91 million yuan. Project construction content: The project will carry out the process layout of the modern, green, intelligent and digital ultra-fine diamond wire production line by transforming the original factory producing silicon carbide micropowder. The original project construction area is 9270m2, and the project construction period is expected to be 6 months. The purpose of this investment is mainly to replace the traditional mortar cutting method with the diamond cutting method. The project will make full use of the company's idle fixed assets, introduce foreign advanced equipment and production technology, and accelerate the transformation and upgrading of the company to improve the company's profitability. Promote the employment development of employees. The introduction and digestion of the proprietary core technology of the project will enrich the company's product structure, enhance the company's technical strength and core competitiveness, and strive to develop products for the company through strong integration and commitment to the serialization of emerging technology products. The market competitiveness and further development of domestic and foreign markets have accumulated valuable international cooperation experience. This project belongs to the high-tech industry and belongs to the national encouraged products. The construction of the project is in full compliance with the relevant industrial policies of the country and has positive significance for improving the company's operating performance.

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