Bonyun New Materials: It is expected that the gross profit margin of hard alloy will gradually decrease in the second half of 2026 and fall back to the industry's normal level.

Bonyun New Materials announcement, the proportion of the company's cemented carbide products' annual operating income to total operating income in 2025 is 64.34%. Tungsten carbide is the main raw material for the company's cemented carbide products. Assuming that the raw material prices remain basically stable, based on the company's existing inventory and monthly sales volume, the current high gross profit level cannot be sustained in the long term. It is expected that the cemented carbide gross profit margin will gradually decrease and fall to the industry's normal level in the second half of 2026. If raw material prices decrease, there is a risk of faster decline in the gross profit margin.