The cash flow is mediocre and the low benefit is normal.

Judging from the overall ABS market, the cash flow begins to decline at the beginning of the 2022, and losses exist for a long time in the middle of the year. Although it returned to make profits in the second half of the year, the space is limited. In 2022, due to the high price of crude oil, the overall pressure on raw materials enhance, the ABS market continue to be depressed and the overall benefits has shrunk substantially. Since November, as the overall market is weak, although the pressure on raw materials is not heavy for the time being, the overall benefit is still narrowing, and the market is expected to remain weak in the later period. Also, with the continuous expansion of supply and demand pressure, internal competition intensifies and low industry profits will become normal.