Furandek: Fluctuations in upstream raw material prices may result in losses in some inventory.

Independent director Chen Yudong of Fu Rande stated at today's company performance briefing that the company expects a high possibility of a decrease in upstream raw material prices by 2025. The company's business primarily follows a model of sales with fixed procurement and cost markup. When facing fluctuations in upstream raw material prices, the company will promptly pass on the price changes to downstream customers. However, the safety stock inventory provided to the main manufacturers and their supporting vendors may incur losses due to the impact of fluctuations in upstream raw material prices.