Starry Materials: The company's main raw material for polystyrene products is styrene. The significant fluctuations in raw material prices may bring great management challenges to the company.

Xinghui Environmental Material announces abnormal fluctuations. The main raw material for the company's polystyrene products is styrene, which belongs to the downstream bulk chemical products of petroleum refining. If a significant change in petroleum prices or the supply and demand relationship of styrene leads to drastic fluctuations in raw material prices, the company may not be able to effectively alleviate cost pressures through conventional cost transfer mechanisms, leading to a decrease in the company's gross profit margin. At the same time, the significant fluctuations in raw material prices may bring about greater management difficulties in inventory management, production cost control, pricing mechanisms, etc., which may in turn pose risks of fluctuating business performance. The continuous expansion of production capacity in the polystyrene industry is the main feature of the dynamic development of the PS industry in recent years. The industry's rapid expansion of production capacity exceeds market demand, leading to excess industry capacity that downstream markets cannot digest in a timely manner, potentially causing fluctuations in the company's performance.