China Science and Technology third Ring Road: power cuts have little impact on the company, although rare earth prices have risen, but orders remain normal.

Beijing Zhongke Sanhuan Hi-Tech Co., Ltd. issued a record sheet of investor relations activities. With regard to the company's future production expansion plans, Zhongke Sanhuan said that the company plans to use rights issues to raise funds and self-raised funds to expand production capacity from the current more than 20,000 tons to about 30,000 tons, and then decide on the continued expansion of production capacity according to orders and market conditions.

In view of the impact of power cuts on the company's main plant areas, Zhongke Sanhuan said that so far, the power reduction policy has little impact on the company.

Investors asked: "recently, people have paid more attention to the comparison of several grain boundary diffusion technologies. The company has the earliest and best technology accumulation. Does it consider that there is room for technological research and development and progress for further grain boundary diffusion for different products?"

Zhongke Sanhuan replied: the company began the research and development of grain boundary diffusion technology more than a decade ago, and began to have small batch applications in 2014, and now there are a large number of applications. Each grain boundary diffusion technology has its own characteristics, and the company will adopt different grain boundary diffusion technologies according to the performance needs of different products and the needs of different customers.

With regard to the current structure of the company's products, Zhongke Sanhuan said that at present, the company's products are mainly used in automobiles (including new energy vehicles), consumer electronics, energy-saving motors, computer hard drives, industrial motors and other fields.

In addition, investors are concerned about whether the recent rapid rise in rare earth prices will affect the signing of orders in different areas of the company next year. Zhongke Sanhuan said that for now, the signing of the company's orders remains normal.

On how to view the competition pattern in the field of new energy vehicles, Zhongke Sanhuan said that in the next few years, with the increasing demand in the field of new energy vehicles, the fierce competition will be alleviated.