Ancient cashmere materials: the industry's raw material supply is temporarily tight, the company's overall gross profit margin remains in a stable range.

Gucang Cashmere Materials recently stated in a survey of receiving institutions that the average purchase price of duck and goose raw materials is expected to increase slightly in early 2026 compared to the previous year, and the industry's raw material supply is temporarily tight. The company will adopt a strategy of locking prices in batches as needed, rolling inventory, and will not blindly stock up in large quantities. By combining historical cycles to control raw material inventory turnover days, the company aims to smooth out fluctuations in raw material prices. With an increase in the proportion of customized products and stable bargaining power with customers, the company can offset some of the pressure on raw material costs with higher value-added products. Overall, the gross profit margin remains in a stable range, and cost fluctuations are not expected to have a significant impact on profits in the first quarter.