1.Macro Perspective: Market Volatility Remains High

Geopolitical tensions in the Middle East persist, keeping global crude oil and basic chemical raw material supplies tight. In the past month, sharp price fluctuations within a single week have become the norm. Looking ahead, upstream cost uncertainties remain elevated, and short-term prices are likely to continue following raw material trends. This macro pressure is a systemic challenge that the global manufacturing industry must face together.

2.Common Challenges Across the Industry

Through close communication with our core customers, we have identified a key challenge in the supply chain: upstream raw material prices change rapidly, while some downstream order prices are locked for several months or even half a year. The mismatch between price adjustment rhythms and contract cycles, compounded by international policy shifts, makes cost transmission more unpredictable.

Many customers are responding proactively by accelerating production to consume inventory, renegotiating pricing terms with downstream partners, and adjusting procurement strategies. These flexible measures demonstrate the resilience and adaptability of supply chain partners while reflecting the pressures and difficulties of the current business environment.

3.Continuous Actions and Optimization

In response to market fluctuations, Evergreen Chemicals is taking continuous steps to optimize our operations:

• Establishing a stable communication rhythm to provide clients with clear expectations on information updates;

• Prioritizing the fulfillment of confirmed orders to minimize the impact of raw material volatility on production continuity;

• Evaluating more predictable pricing approaches by combining raw material trends with internal cost models;

• Continuously monitoring macro market dynamics to provide clients with informed decision-making support.

4.Confidence to Navigate Challenges

Evergreen Chemicals has faced multiple challenges in its development, including the outbreak of COVID-19 in 2020. Each challenge has reinforced our understanding that difficulties are temporary, while the trust and collaborative capability built with partners are long-lasting. Although current market fluctuations are severe, we believe that through transparent communication and mutual support, we can work together with our partners to find practical solutions to navigate these volatile times.

5.Staying Connected

As the situation continues to evolve, Evergreen Chemicals maintains an open line of communication. If you have any thoughts or questions you would like to discuss, please feel free to contact your account manager. Together, we face challenges and move forward.