At the beginning of 2016, Yunsheng International realized its 100% stake in carbon Valley Technology Group. Since then, Yunsheng International has shifted its main business from providing building construction and property maintenance services to Hong Kong, Macau and Singapore to the production of graphene.

After the equity acquisition, Dai Jialong became the main shareholder of the company (holding 10.17%). Graphene was separated at the beginning of the 21st century. Graphene is a material with only one layer of carbon atom thickness. It has strong hardness, excellent elasticity and electrical conductivity. The scope of graphene downstream applications is expanding, many of which are still in the stage of development.

Government support. The government has regarded graphene as the main R & D area leading the development of new materials in the country. The domestic graphene Industry Technology Innovation Strategy Bureau estimates that by 2020, the graphene market will be worth US $149m to US $300m, with a compound growth rate of about 40% every five years.

Unique preparation process. Although it is composed of readily available and low-cost materials, the preparation of graphene is still very expensive. At present, the main method for the separation of graphene is the "growth" method, which allows the carbon layer to be deposited on the substrate in the form of gas or solid under heating, and the oxidation-reduction method. this method removes non-carbon elements through the reaction of acids with carbon-based compounds, leaving graphene. However, the cost of raw materials and the resulting waste lead to the high cost of graphene production. Carbon Valley Technology Group has invented a mechanical method to remove the graphite layer by stripping, which has the advantages of low cost, stable product performance and less environmental impact.

The output has increased. Dai Jialong estimates that the company's graphene production capacity will now reach about 100 tons, and after further improvement of the production line, the production capacity will reach about 5000 tons per year. The company regards the manufacturers of anti-corrosion coatings as its main customer base, and the price of graphene-based coatings is about 30% higher than that of traditional coatings, but its service life is also longer. 1HFY17's revenue from the sale of graphene is approximately $1.6 million, and the company says the graphene division is profitable at 1HFY17.

Traditional business. Traditional businesses other than graphene account for 98 per cent of 1HFY17's gross margin. But demand for traditional business is declining and competition is fierce, which reduces the company's liquidity ratio and increases the capital-debt ratio. To this end, the company adjusts its business strategy to focus on the development of medium-and short-term projects, so as to reduce costs and reduce the net loss of these divisions.