Zhongxing New Materials faces challenges such as raw material price fluctuations, accounts receivable risks and customer concentration risks

ZTE New Materials faces challenges such as raw material price fluctuations, accounts receivable risk and customer concentration risk. Affected by factors such as drastic fluctuations in raw material prices and changes in market supply and demand, the prices of core materials for lithium batteries have all declined to varying degrees. In terms of accounts receivable risk, ZTE New Materials' accounts receivable accounted for a high proportion of operating income, once reaching more than 78%. In terms of customer concentration risk, BYD is ZTE New Materials' largest customer, accounting for more than 40% of its sales. During the reporting period, the sales amount of the top five customers accounted for more than 80% of the current main business income.