March 28, 2026: Today, price adjustment notices were issued to all customers; effective April 1, all new products will be subject to price adjustments.

Today, we are formally notifying all our partners and customers of a price adjustment: effective April 1, 2026, a new pricing structure will be implemented across our entire portfolio of new products. This adjustment is driven by changes in the market environment, fluctuations in raw-material costs, and the company’s long-term development objectives, with the aim of achieving a more balanced alignment between product value and service quality, thereby delivering a more sustainable collaboration experience for our customers. Detailed explanations and background analysis are provided below.

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I. Background to the Price Adjustment: A Necessary Decision Driven by Multiple Factors

Over the past year, the global economic landscape has continued to evolve, with significant volatility in the raw materials market. Taking core raw materials as an example, driven by the restructuring of international supply chains and the tightening of environmental protection policies, their prices have risen cumulatively by more than 15%, directly pushing up production costs. At the same time, rising labor costs, logistics expenses, and R&D investments have further squeezed profit margins. To ensure that product quality and innovation remain unaffected, the company has, after careful evaluation, decided to implement a structural price adjustment for its new products.

This price adjustment is not an isolated incident; rather, it epitomizes a broader industry trend. According to third-party data, since the second half of 2025, leading companies in the same sector have raised prices by an average of 8% to 12%, with some niche segments seeing increases exceeding 15%. In contrast, our price adjustments have been kept within a reasonable range, reflecting both cost pressures and a respectful consideration of market affordability.

II. Scope and Principles of Price Adjustments: Focus on New Products While Ensuring Stability for Existing Products

This price adjustment applies solely to new products launched on or after April 1, 2026; existing inventory and signed orders will remain at the original prices until the end of the contract term. This approach is designed to minimize disruption to customers’ ongoing operations while providing resource support for the research, development, and iterative improvement of new products.

The pricing strategy for new products adheres to three core principles:

1. Cost Coverage Principle: Ensure that the price covers direct costs such as raw materials, production, and logistics, while also setting aside a reasonable profit margin to support ongoing innovation.

2. Value Alignment Principle: Establish differentiated price tiers based on the extent of product feature upgrades, technological breakthroughs, and user experience enhancements.

3. Market Benchmarking Principle: Refer to the price levels of comparable products in the industry to maintain competitiveness while avoiding destructive price wars.

For example, the upcoming smart production-line upgrade package, which integrates an AI quality-inspection module and an automated scheduling system, sees a 23% increase in cost but delivers a 40% boost in production efficiency. Even after the price adjustment, it remains 15% lower than comparable products from international brands, underscoring its strong value proposition.

III. Customer Communication and Service Enhancement: Balancing Transparency with Personalization

To ensure that price adjustment information is accurately communicated, we employ a multi-channel notification strategy:

1. Today, formal price adjustment letters will be sent via email, text message, and Enterprise WeChat to all customers, accompanied by a detailed product list and a comparison table of old and new prices.

2. Assign dedicated account managers to key clients for one-on-one communication, address their inquiries, and assist in developing procurement plans;

3. Launch a 400 service hotline and extend service hours to 8:00 PM daily, providing real-time consultation support.

In addition, to address potential short-term liquidity pressures that may arise following the price adjustment, we are introducing two supportive policies:

1. Customers who make advance payments are eligible for an additional 3% discount or an extended payment term of up to 90 days.

2. Bulk-purchase customers may apply for tiered rebates based on order size, with the maximum rebate reaching 5% of the order amount.

IV. Long-Term Commitment: Mitigating Price Impacts Through Value Creation

We fully recognize that price adjustments may entail short-term challenges, but the core of corporate development lies in continuously delivering value to our customers. To this end, we are simultaneously launching the “Value Enhancement Initiative”:

1. Technology Investment: Over the next three years, we will increase the R&D budget to 8% of revenue, with a primary focus on breakthroughs in energy conservation, consumption reduction, and intelligent technologies.

2. Service Optimization: Five new regional service centers have been established nationwide, achieving full coverage of 48-hour emergency response.

3. Co-building a Sustainable Ecosystem: Collaborating with upstream and downstream partners to establish a stable supply chain, securing raw material prices through long-term agreements to mitigate future price volatility.

It is projected that by 2027, efficiency improvements and cost optimizations will offset 30% of the cost pressures resulting from this price adjustment, thereby preserving greater profit margins for customers.

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Price adjustments are a difficult decision in business, but they also reflect a company’s sense of responsibility. We pledge that, following this adjustment, every penny of price increase will be translated into enhanced product performance, improved service quality, and deeper partnerships. April 1 is not the end—it is the starting point for us and our customers to jointly pursue greater value.

Thank you for your continued trust and support. If you have any questions or suggestions, please feel free to contact your dedicated account manager or call our customer service hotline. Let’s work together to meet challenges and share the rewards of growth.

Add: NO.4 Haiyu one road FuYu Industrial Zone Leliu Town Shunde District, Foshan City, Guangdong Province.
Tel: +86-0757-26368660 / +8613413291786
E-mail: sales.01@xiaorenlei.com