Gelonghui, Feb. 28 | Guochuang Hi-Tech (002377.SZ) announced that the company plans to co-sponsor the establishment of a project company with Shandong Hi-Speed Hubei Development Co., Ltd. (“Shangao Hubei Company”) and Hubei Nonmetallic Geology Company to develop the Wuxue Silicon Materials Green Industry Chain Project.
Given that Wuxue City is rich in high-quality granite resources and resource development has been incorporated into local government plans, the company will co-sponsor the establishment of a project company with Shangao Hubei Company and Hubei Nonmetallic Geology Company as the main partner and technical supporter. The project company will cooperate with Wuxue City Investment Group to develop the Wuxue Silicon Materials Green Industry Chain Project (hereinafter referred to as “this project”). Matters such as the registered capital of the project company and the investment ratio of each party are still under negotiation.
According to the “Investment Cooperation Framework Agreement” signed between the Wuxue Municipal People's Government and Shangao Hubei Company, the project has a total investment of 3.05 billion yuan and is being built in two phases. Among them, the first phase invested 1 billion yuan, mainly including R&D and production of high-purity quartz sand, ultrafine quartz powder, and the bulk product feldspar powder. The construction period of the project is 24 months. After the completion of the first phase of the project, it is expected to produce about 1 million tons of quartz sand, 1.4 million tons of feldspar powder, and 800,000 tons of ceramic mixtures. It is expected that the annual output value will reach 1.2 billion yuan, and the tax revenue will exceed 200 million yuan. The second phase invested 2.05 billion yuan, mainly including the development and production of downstream extension products of the industrial chain, such as ultra-high-definition flexible foldable information display glass and energy-saving ceramic rock panels. The expected output is 20,000 tons/year of 4N grade high-purity quartz sand, 25,000 tons/year of electronic-grade ultra-fine quartz powder, 30,000 tons/year of ultra-high-definition flexible foldable information display glass, and 15 million square meters/year of new energy-saving ultra-thin ceramic rock slabs. It is expected to achieve an annual output value of more than 3 billion yuan and tax revenue of more than 400 million yuan.