After returning to the state-owned holding, the new materials of the three Gorges (600293) has accelerated the pace of the transformation and development of the industrial structure. On the evening of September 27th, the three Gorges New Materials announced that it and Yichang Gao Investment, an associate of the company, jointly invested in the establishment of Hubei three Gorges New Materials Science and Technology Co., Ltd., and each sponsor invested no more than 120 million yuan in stock nature investment to the technology company in the next three years according to the proportion of capital contribution.

According to the announcement, the registered capital of technology companies is 10 million yuan, with 51 per cent of the shares held by three Gorges New Materials and 49 per cent of Yichang High Investment. The sponsors' stock investment is mainly used for R & D equipment system construction funds (about 60 million yuan), forward-looking glass new materials and technology research and development (not more than 60 million yuan).

The main business of the new materials of the three Gorges is the production and sales of flat glass and special function glass, and the scientific research and development of new building materials. It was listed on the main board of the Shanghai Stock Exchange in 2000 and is the only listed enterprise in Hubei glass industry.

Last year, Xu Xizhong, the former controller of three Gorges Xincai, was frozen by the court after being involved in disputes such as 1.5 billion yuan of pledged securities repurchase. After several rounds of judicial auctions, he lost his position as controller. Dangyangcheng Investment (the real controller is Yichang SASAC) increased its stake in the three Gorges new materials by means of judicial auction and collective bidding, and became the largest shareholder of the three Gorges new materials.

In December last year, Sanxia Xincai hired a new senior executive through a general election, and the company also returned to the camp of state-owned enterprises. According to the semi-annual report, the company achieved an operating income of 869 million yuan and a total profit of 36.8555 million yuan in the first half of this year, an increase of 62.5832 million yuan over-25.7277 million yuan in the same period last year. Three Gorges New Materials said that the turnround was mainly due to lower purchase prices of raw materials and fuel, lower production costs of flat glass and an increase in gross profit margin.

According to the semi-annual report, there are 6 float glass production lines in the three Gorges new materials, with a daily melting glass liquid of 4150 tons, with an annual output of 27.6 million heavy boxes, supporting the construction of photovoltaic, waste heat power stations and environmental protection facilities, and 3 LOW-E coated glass production lines with an annual production capacity of 23 million square meters. With 8 glass processing production lines and an annual processing capacity of 5 million square meters, it is the largest and strongest high-quality glass manufacturer and supplier and glass processing base in the central region.

However, at present, the main application market of glass products in China is real estate. Due to the gradual saturation of market demand and changes in the economic situation outside China, the glass industry is facing the severe challenge of overcapacity. With the establishment and implementation of the dual carbon goal, the rapid development of photovoltaic industry, the development of high-end manufacturing industry and other reasons, the market demand for high-end deep processing glass market continues to enlarge, and the glass industry has also ushered in an important opportunity for transformation and upgrading.

According to the new materials of the three Gorges, the science and technology company will strive to create a demonstration highland for technological research and innovation in the glass industry across the country, sign cooperation agreements with institutions such as universities of science and technology, and incubate the three Gorges Glass Technology Research Center, relying on the silicate material Engineering Research Center of the University of Science and Technology, the State key Laboratory of silicate Building Materials, etc. Focus on the frontier field of new glass materials to carry out systematic scientific research, new product development and achievement transformation. At the same time, we will promote the innovative development of Yichang glass new material industry and create a regional glass industry chain cluster.

At the same time, three Gorges Xincai reminded that Yichang Industrial Investment Holdings Group Co., Ltd., the company's indirect controlling shareholder, holds a 100% stake in Yichang High Investment through direct and indirect means, that is, Yichang High Investment is a related person of the company. However, this transaction will not adversely affect the company's operating performance and will not affect the company's independence.