Chu Jiang New Materials: Compared with same industry companies with similar product structures, the company's gross profit margin is at a reasonable level in the industry.

Chujiang New Materials responded to investors' questions on the interactive platform on May 4th, stating that the company's copper-based materials business adopts a pricing model of "raw materials + processing fees", with raw materials accounting for a high proportion of the value and processing fees relatively stable with limited profit margins. Despite the continuous growth in revenue scale, the overall gross profit margin is relatively low. There are significant differences in product segmentation among different copper processing enterprises. Compared to industry peers with similar product structures, the company's gross profit margin is at a reasonable level. The company will continue to optimize its product structure, focus on the research and development and market expansion of high-end and high value-added copper-based products, refine cost control, improve overall operational efficiency, accelerate the transformation of research and development achievements into practical results, and gradually improve net profit margins and overall profitability quality.