Huamao Technology: If oil prices continue to rise, there will be certain pressure on the raw materials side.

Golden Ten Data reported on April 23 that at an analyst meeting, Huamao Technology stated that the main raw materials for the company’s automotive passive safety business include industrial filament and silicone coating, and their prices are affected by oil price fluctuations. If oil prices continue to rise, the cost of raw materials will face certain pressure. To address this, the company had already increased some inventory by the end of 2025 to mitigate short-term impact, and has expanded its pool of suppliers to enhance supply chain resilience. Regarding cost pass-through, the company adopts point-to-point pricing for major clients in some cases and quarterly negotiated pricing in others, which can partially pass on increased costs. However, due to relatively weak domestic market demand at present, the effectiveness of cost pass-through may be limited.