First, Kuncai Technology has two plants, "Kuncai Technology Phase I" and "Kuncai Technology Phase II", covering a total area of 604 acres, with a building area of 300,000 square meters, with an annual output of 30,000 tons of pearlescent materials, an annual output of 10,000 tons of synthetic mica production capacity. Kuncai Technology's controlling subsidiary Fujian Fushi New Material Co.

Ltd. is constructing the project of "200,000 tons of titanium dichloride and ferric chloride (solution) per year", which can be converted into 80,000 tons of titanium tetrachloride per year and 80,000 tons of ferric chloride (solid) per year. After the completion of the project, the self-sufficiency rate of raw materials of Kuncai Technology Pearl Material reaches more than 90%, which ensures the stable cost, quality and supply of products.

It ensures the stable cost, quality and supply of products, and further enhances the core competitiveness of Kuncai Technology and the control ability of sustainable innovation of the whole industrial chain.

Second, in recent years, China in order to fulfill the Paris Convention, the treatment of haze weather, the realization of the national environmental protection goals, carried out a nationwide environmental protection inspection work, unprecedented strength, unprecedented. This led to a large number of enterprises in China to close or stop production, the current supply of raw materials of Kuncai Technology has not been thus

At present, the supply of raw materials of Kuncai Technology has not been affected, but the price of raw materials has increased to a certain extent. Kuncai Technology implements strict control over the supply chain, and conducts strict audits on environmental protection, safety, facilities and other aspects of the suppliers, all of which are required to have complete and legal procedures, and the bulk raw materials for synthetic mica are provided by large state-owned enterprises, and any kind of raw materials are provided by the state-owned enterprises.

The bulk raw materials for synthetic mica are all provided by large state-owned enterprises, and there are more than three suppliers of any kind of raw materials to prevent irresistible supply risks.

Third, Kuncai Technology is the only one main board listed company in China pearlescent material industry, with very strict environmental protection audit system, open the production environment and production conditions to the public, all the formalities are complete and legal, and has been awarded by provincial and municipal government environmental protection units many times, and it is the Fujian Province environmental protection model enterprise and the only one double excellent enterprise in the city.

It is a model enterprise of environmental protection in Fujian Province and the only one double-excellent enterprise in the city. The hot gas is supplied by the development zone, the sewage is treated by the development zone and discharged according to the standard. Kuncai Technology has online monitoring equipment to share the measured data with the environmental protection department online, which are far beyond the standard. The second phase of Kuncai Technology has realized the first fully automatic closed or unmanned production in the world.

A fully automated closed or unmanned production factory, which enhances the labor environment even more and completely solves the problems of production, packaging turnover and dust-free.

Fourth, as China continues to strengthen the normalization of environmental protection work, the supply environment has changed: 1, the cost of raw materials continue to rise, passed to the production cost of KunCai; 2, downstream users of smaller enterprises shut down the situation, at the same time, pearlescent material counterparts due to environmental protection, technology, facilities, procedures and regulations

Not in place, the risk of shutdown is increasing. Recently, a number of enterprises shut down, semi-suspension or demolition, relocation of the situation continues to occur.