A Transparent Update On Our Pricing Adjustments: Context, Details & Our Commitment To You

The two core drivers behind this round of price adjustments are sustained raw material cost increases and dramatic exchange rate movements, which have created unprecedented pressure on our operational cost structure. Since the start of 2026, the global supply chain for key raw materials has remained tight: the prices of core production inputs including metal components, engineering plastics, and packaging materials have risen by 8% to 12% on average, driven by rising global demand, tight supply of upstream resources, and increased logistics costs for raw material transportation. This persistent upward trend in material costs has already squeezed our production margins significantly over the past six months, and we have absorbed a large portion of this extra cost internally without passing it on to customers immediately.

However, the most critical factor behind the current price adjustment is the sharp, rapid movement of the USD-CNY exchange rate. Back in March 2026, when most of our customers confirmed their annual order plans and initial pricing agreements with us, the USD to CNY exchange rate stood at around 7.2. As of today, the spot exchange rate has dropped to approximately 6.7, creating a direct 7% gap between the exchange rate we used for initial pricing and the current real market rate.

We want to emphasize very clearly: ‌the RMB-denominated prices for nearly all our products have remained completely unchanged‌. We have not raised the base production price of our goods at all, and we have done everything we can to avoid increasing the core cost burden on your business. The only part that has been adjusted in the new quoted prices is the exchange rate difference, which is a completely objective, uncontrollable market movement that falls entirely outside our operational influence. This 7% gap is not a profit increase for us, but a direct loss we would incur if we continued to use the old March exchange rate for current USD quotations.

We fully understand that when you first see the updated USD prices, you may feel that the overall figure has risen, and we sincerely appreciate that this creates extra pressure on your own cost planning. We want to be completely open with you: for this exchange rate-related portion of the price adjustment, we have no room to further reduce or absorb the difference, as it is a direct reflection of the real-time international currency market. However, our team has been working tirelessly to offset this impact in every other area we can control.

We have optimized our production scheduling to improve operational efficiency by 5%, negotiated long-term bulk purchase agreements with our raw material suppliers to lock in lower material costs, and cut unnecessary administrative and logistics expenses internally. All these efforts are directed at minimizing the total price adjustment for you, and ensuring that the final price we offer you is the absolute best, most competitive rate we can possibly provide under current market conditions.

We deeply cherish every partnership we have, and we never make pricing adjustments lightly. We hope this transparent explanation helps you see the full picture behind the numbers, rather than only noticing the apparent increase in the USD figure. Our team is always ready to discuss your specific order needs, and we will continue to work closely with you to find the most mutually beneficial solutions, stabilize your supply chain, and support your business growth through this period of market volatility.