A Letter To Our Customers: Secure Supply And Price Adjustment Notice

Dear Valued Customers and Partners,

Greetings from Xiamen LFT Composite Plastic Co., Ltd. (LFT-G^®)! We deeply appreciate your continued trust and support in our Long Fiber Reinforced Thermoplastic (LFT) materials.

Recently, due to the escalating geopolitical tensions and conflicts in the Middle East, the global crude oil market has experienced significant volatility. This has led to a tight supply of petroleum and a sharp surge in oil prices. Consequently, the entire petrochemical industry chain is facing severe cost pressures, resulting in a substantial increase in the prices of upstream polymer resins (such as PP, PA, and TPU) which are essential raw materials for our composite plastics.

At this critical juncture, LFT-G^® is committed to acting with utmost sincerity and unwavering dedication to stand side by side with you. To navigate these challenges, we would like to communicate the following strategies and adjustments:

1. Fortifying Supply Chain Security

Despite raw material shortages in the broader market, we are leveraging our robust global procurement network and the expanded capacity of our new production facility to prioritize and guarantee the stable delivery of your orders. Securing your production line remains our top priority.

2. Transparent and Prudent Price Adjustments

We have been actively absorbing a significant portion of these cost increments through lean management and internal process optimization. However, the magnitude of the recent raw material price hikes necessitates a shared effort. Therefore, we will be implementing necessary and reasonable price adjustments for our LFT product lines.

• Transparency: Price increases will strictly align with the actual cost increments of raw materials. No excessive profits will be sought.
• Advance Notice: Your dedicated sales representative will contact you shortly to provide specific adjustment details and effective dates, ensuring you have sufficient time for operational planning.

3. Collaborative Innovation for Cost Efficiency

Our R&D team is continuously working to empower your business. We are ready to collaborate with you to optimize material formulations, introduce high-performance alternatives, and explore structural lightweighting solutions to help mitigate overall manufacturing costs.

Faced with these severe external conditions, LFT-G^® will leverage its industry expertise to remain your most reliable supply partner. We firmly believe that by joining hands and communicating openly, we will overcome these short-term market fluctuations and achieve long-term win-win results.

Should you have any questions or require immediate assistance regarding your forecasts, please feel free to contact our global sales team.

Best regards,

The Executive Team
Xiamen LFT Composite Plastic Co., Ltd. (LFT-G^®)