Nengzhi Light: As bulk materials are core raw materials for the company's product production, price increases in these materials will have a certain impact on the company's product costs.

Securities Daily, March 23 — Nengzhiguang stated during a survey that as the core raw material for the company’s product manufacturing, the price increase of bulk materials will have a certain impact on the company’s product costs. To effectively respond to this impact, the company has established a comprehensive cost control system: First, implementing a strategic inventory mechanism, reasonably stockpiling core bulk materials based on market price trends and production needs, locking in some purchase prices to reduce the impact of short-term price surges; Second, strengthening refined management, optimizing production processes, and improving raw material utilization through lean production, cost reduction, and efficiency enhancement to internally absorb some cost pressures; Third, improving the price transmission mechanism, establishing a reasonable price linkage with downstream customers based on product market competitiveness and industry practices, gradually transferring some cost pressures in an orderly manner, while continuously increasing product added value to reduce the impact of cost fluctuations on the company’s performance.

In the future, the company will continue to monitor the trend of bulk material prices, dynamically optimize response strategies, and ensure the stability and sustainability of its operations.

(Editor: Yao Yao)