Zhou Haixin, Secretary of the board of directors and chief financial officer of the company, said at the online explanation meeting on the achievements of Santao Xincai in 2019 that due to the aggravation of the competition and the influence of 531 photovoltaic policy, since the second quarter of 2018, the price of diamond wire products has declined significantly, and the gross profit rate has also declined significantly. But at the same time, it also speeds up the reshuffle of the profession and the clearing of downwind production capacity. In addition, due to the decrease of cost and price, the era of cheap internet access comes early, and the demand side is expected to usher in a greater increase in market-oriented demand in the future. Photovoltaic new energy is likely to become the primary source of global electric energy in the future, with bright development prospects and huge market potential.
Zhou Haixin indicated that we believe that with the changes of supply and demand in the future, the competition pattern of occupation is expected to be improved. As for the company, the current capacity in the field of silicon chip line is still insufficient. With the improvement of product skills and quality level, the company has the opportunity to further improve market share and market position. Therefore, the company is still determined to promote and implement the annual output of 10 million km ultra fine diamond wire saw project (phase I), and we have calculated that compared with the existing capacity, the new capacity has more advantages in overall investment, skills and capital, and the overall income can meet the requirements of better return on investment.
Sanchao new material is a high-tech enterprise that focuses on the research, production and sale of diamond products, and is committed to becoming a leading supplier of fine superhard materials with world influence in China. Our main products are electroplated diamond wire and diamond grinding wheel.
