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Recrystallized silicon carbide (R-SiC) is a high-performance material formed at temperatures above 2000°C, with hardness second only to diamond. It retains many of the outstanding properties of SiC, including high-temperature strength, excellent corrosion resistance, superior oxidation resistance, and good thermal shock resistance. The silicon carbide market is valued at trillions of dollars and is widely applied in automotive environmental protection, wastewater treatment, semiconductor chips, new energy vehicles, photovoltaics, 5G communications infrastructure, and national defense industries.

In the first quarter, as the economy continued to recover, large-scale infrastructure projects were launched across the country, and orders for China VI aftertreatment products were running at full capacity. The non-road China IV emission standard, implemented at the end of 2022, further boosted sales of agricultural machinery aftertreatment products for the spring planting season, resulting in supply falling short of demand for the company's aftertreatment products. To expand silicon carbide carrier production capacity, the company has newly purchased six 5-cubic-meter kilns, further meeting the company's growing production needs.

The silicon carbide project has high technical barriers and requires large-scale industrialization investment. The technological breakthrough and capacity expansion will not only help expand market share in the automotive sector, but also enable the company to extend this technology into semiconductors, new energy vehicles, 5G communications, and other fields.