As you may be aware, there has been a recent shortage of electricity in our region, which has affected the production capacity of some manufacturing companies. This shortage is due to the Chinese government's "dual control of energy consumption" policy, which has limited the amount of energy that companies can consume. As a result, some industries have had to delay the delivery of orders, and this has caused a significant impact on the overall productivity of the region.
In addition to this, the China Ministry of Ecology and Environment has recently issued the draft of the "2021-2022 Autumn and Winter Action Plan for Air Pollution Management." This plan is designed to manage air pollution during the autumn and winter months (from October 1, 2021, to March 31, 2022). However, it is likely that this plan will further restrict the production capacity of some industries during this period.
Since the beginning of 2020, there has been a steady rise in the price of raw materials. Coupled with the recent reduction in the production of source materials, it has become increasingly difficult to obtain the raw materials necessary for manufacturing. As a result, the cost of raw materials has increased significantly, with an overall increase rate of 30% to 50%. Our company has attempted to overcome these challenges through internal cost reduction measures, but the rising cost of raw materials has put significant pressure on our operations.
Due to the limited production capacity and the sharp increase in raw material prices, our company has decided to adjust our product prices from October 2021. We understand that this may cause some inconvenience for our customers, but we hope that you can appreciate the difficult circumstances that we are facing. We will continue to monitor the situation closely and take appropriate measures to minimize the impact on our customers as much as possible.
