Recently, influenced by changes in the international situation, global energy supply has become tighter and oil prices have continued to fluctuate, creating a chain reaction on raw material costs across multiple manufacturing industries. As petroleum-based materials are a major source of raw materials in the disposable hygiene industry, the rise in oil prices has directly driven up the cost of many key materials, placing additional pressure on the production costs of diapers, sanitary napkins, and other hygiene products.
Since many raw materials used in hygiene products are closely linked to the petrochemical industry, upstream price fluctuations have led to noticeable cost increases across a wide range of materials within the industry. At present, the prices of SAP and adhesive have risen by more than 60%, while non-woven fabric has increased by over 15%. In comparison, fluff pulp has been affected to a lesser extent, but most other materials are still showing a continuous upward trend, driving overall manufacturing costs higher. In addition to rising prices, the supply pace of raw materials has also been affected to some extent. The supply of certain materials has become tighter, resulting in longer production preparation cycles than before. This is especially evident in supporting materials such as plastic packaging bags, where production scheduling has become more constrained, further extending overall production and delivery lead times.
In response to these market changes, Jiayue is actively leveraging its mature supply chain system and large-scale manufacturing capacity to implement multiple measures aimed at stabilizing production and pricing. First, we operate large warehouse facilities and maintain sufficient raw material inventory in advance, enabling us to respond effectively to short-term market fluctuations and ensure production continuity. Second, supported by long-term partnerships with reliable, high-quality suppliers, we are able to secure continuous and competitive supply support during periods of raw material price volatility. At the same time, Jiayue is also optimizing its internal cost structure and, to a certain extent, proactively compressing its own profit margins to keep customer prices relatively stable and to support the development of long-term, sustainable partnerships.