Suzhou Hycan Holdings (002787.SZ): has taken measures to strengthen cooperation with suppliers and stock up through multiple channels.

Gelonghui Finance · Oct 17 15:04

On October 17th, Hycan Holdings (002787.SZ) stated at an investor relations event that the company has a large procurement scale, stable demand, high credibility, and has established good cooperation relationships with suppliers. The main raw material used in the company's metal packaging production is tinplate, and price fluctuations will directly impact the company's profitability. As a leading enterprise in the domestic metal packaging and chemical can industry, the company has established mutually dependent long-term stable cooperation relationships and a reasonable cost transfer mechanism with major customers. The company has a long-term supply framework agreement with AkzoNobel, renegotiating product prices every six months based on the previous tinplate price changes and signing related agreements; the company has a purchasing cooperation contract with Nippon Paint, under which price agreements have been made regarding the price adjustment mechanism; similar arrangements are made with other major customers; the remaining customers negotiate and determine product prices based on the tinplate prices at the time of ordering, thus the company has a certain cost transfer ability. However, if the tinplate price experiences a significant increase within the price validity period agreed upon by both parties, or if the price increase is not sufficient to trigger the agreed upon re-adjustment conditions or if both parties cannot reach an agreement on price adjustment matters, the company will still face operational risks. The main raw materials for the company's plastics packaging are polypropylene (PP), high-density polyethylene (HDPE) and other plastic particles, with raw material prices fluctuating significantly due to international crude oil market supply and demand. In order to effectively mitigate the impact of raw material prices, the company has strengthened its cooperation relationships with suppliers, stocked up through multiple channels; adjusted inventory based on market conditions; implemented a sales price callback mechanism to transfer risks, among other measures.

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华源控股(002787.SZ)：已经采取了加强与供应商合作关系，多渠道备货

Suzhou Hycan Holdings (002787.SZ): has taken measures to strengthen cooperation with suppliers and stock up through multiple channels.

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