Some investors asked SDIC Fengle questions on the interactive platform. Why did the spice sector lose money in the next three quarters? Don't respond to the periodic report; there are no instructions there. SDIC Fengle replied that since the new Fengle Fragrance Plant involves the production of hazardous chemicals, it has to be reviewed many times by relevant government departments during the process, and some product processes of the project are affected by the latest changes in policies and regulations, and there are many design adjustments, so the trial production cycle is long. Depreciation expenses and financial expenses in the new factory increased, leading to increased losses in the fragrance business.

Some investors asked SDIC Fengle questions on the interactive platform. Why did the spice sector lose money in the next three quarters? Don't respond to the periodic report; there are no instructions there. SDIC Fengle replied that since the new Fengle Fragrance Plant involves the production of hazardous chemicals, it has to be reviewed many times by relevant government departments during the process, and some product processes of the project are affected by the latest changes in policies and regulations, and there are many design adjustments, so the trial production cycle is long. Depreciation expenses and financial expenses in the new factory increased, leading to increased losses in the fragrance business.