Dongcai Technology (601208.SH): The main raw material cost accounts for a high proportion. The fluctuation of main raw material prices may affect the stability of the company's operating performance.

Zhtng Cijng APP News, Dongcai Technology (601208.SH) issued a stock price abnormality announcement stating that most of the company's products are in a completely competitive industry. With the transfer of overseas manufacturing enterprises to the mainland, domestic competitors are intensively putting in capacity, and technological levels are continuously upgrading, leading to increasing homogenized competition year by year. The raw material cost of the company's leading products accounts for a relatively high proportion, and its procurement price is closely related to international crude oil prices. Fluctuations in the prices of major raw materials may affect the stability of the company's operating performance. In response to the above risks, the company will adhere to a differentiated product strategy, actively expand into emerging business areas, seize incremental markets, continuously optimize product structures, and rationally plan inventory reserves of raw materials to cope with the increasingly fierce market competition.