Xindaxincai (300080) announced today that it plans to use its own funds of 30 million to set up a wholly-owned subsidiary in Kuitun City, Xinjiang to engage in the production and sales of special micro-powders for silicon carbide.

The company said that the company set up a wholly-owned subsidiary in Kuitun, Xinjiang to invest in the full utilization of the silicon carbide block production enterprises in Yili and surrounding areas in Xinjiang, with stable supply of raw materials, good quality and low freight rates, and deep processing of silicon carbide products. Moreover, the special micro-powder for silicon carbide is the semi-finished raw material required for the company's current leading solar crystal wafer cuttings. The implementation of this project can provide a strong guarantee for the company's raw material supply. At the same time, the silicon carbide block material is broken in Xinjiang, which is conducive to transportation and greatly reduces transportation costs.

At the same time, the company also reminds the risks of foreign investment and the impact on the company.
1. The risk of increased operating costs. The establishment of a subsidiary requires the establishment of a new organization. From the perspective of the overall operation of the company, there is a risk of increased operating costs.

2. Cross-regional management risk. After the establishment of the subsidiary, the company as the controlling shareholder is not in the same area as the subsidiary, so the difficulty of its management has increased.

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