Cash flow Significantly higher than 2021

Processing spread of PET bottle chip averaged at 1466yuan/mt and $189/mt respectively in 2022 (spread=PET bottle chip price-feedstock cost), obviously higher from 2021 level. However, due to the low cost of energy and labor and the technical update of equipment, the unit production cost of some large bottle chip factories reduced, and the actual profit margin is larger.

Seeing from China domestic and export sales, PET bottle chip cash flow in 2022 was good throughout the year, in which enterprises who had moderate export orders earlier or had forward orders still made profits, with a gross profit margin of more than 10% in some periods.