Recent increase in the price of sulfur, will the company's products be able to smoothly transmit? Chuanfalongmang responds

Regarding the question of "recent sulfur price increase, whether the company's products can smoothly transmit the increase," Chuanfalangmang recently stated during institutional research that downstream applications of sulfur cover both traditional chemical industry and new energy fields. Traditional applications include sulfuric acid production, reaction with phosphate ore to produce phosphoric acid for the fertilizer industry, etc. In recent years, the wet-process phosphoric acid, iron phosphate, and lithium iron phosphate production in the new energy industry also require sulfur, bringing about downstream demand growth. This year, the sulfur market has seen an increase in prices. In addition to increased demand both domestically and internationally, tight supply chain is also an important factor, and the increase in demand is related to the growth in demand for sulfur in the new energy industry. The company mainly addresses the cost impact of sulfur price fluctuations through the following ways: industrial chain collaboration: relying on the "sulfur-phosphorus-titanium-iron-lithium-calcium" multi-resource circular economy industrial chain model, alleviating some cost pressures through internal synergy effects. Process optimization and lean management: continuously achieving cost reduction and efficiency improvement through technological innovation and refined management. As of now, the company has a total of 2.2 million tons/year of sulfuric acid plants. Price transmission mechanism: For industrial grade phosphoric acid and ammonium products, the cost increase is gradually being transmitted to end prices, and currently the company's overall profitability remains relatively stable.