SILIBASE Silicone Adjusts Pricing Policy Amid Supply Chain Disruptions

Dear Customer,

We sincerely appreciate your continued trust and support.

Recent geopolitical developments, including the ongoing conflict between the United States and Iran, have led to widespread shipping suspensions by major carriers. This has resulted in a sharp surge in logistics costs and further disruptions to the global chemical supply chain. In addition, several shipping lines have introduced emergency surcharges—including Emergency Bunker Surcharge (EBS), Over Weight Surcharge (OWS), Low Sulfur Fuel Surcharge (LSS), and War Risk Surcharge (WRS)—further compounding transportation expenses.

Combined with sustained volatility in international crude oil prices and rising upstream raw material costs, overall operating costs have increased significantly—beyond what we can continue to absorb internally.

To ensure stable supply and consistent service quality, we will implement the following adjustment to our pricing policy:

Effective from the date of this announcement, all products will be priced on a case-by-case, real-time basis. Quotations will be dynamically adjusted according to prevailing raw material market prices and the latest logistics costs (including applicable shipping surcharges), allowing us to respond to the current complex market environment.

We remain committed to operating with integrity. Prior to this adjustment, we made every effort to absorb cost increases—including through optimizing supply chain allocation to mitigate the impact of shipping disruptions. This change is a necessary step to maintain supply chain stability and continue delivering the high-quality service you expect from us.

To support your procurement planning, we recommend aligning purchase schedules with your production rhythm and maintaining reasonable inventory levels. For urgent orders or bulk requirements, please contact your dedicated sales manager in advance—we will prioritize resource coordination to assist you.

We apologize for any inconvenience this adjustment may cause and thank you for your understanding. Moving forward, we will continue to optimize our services and work closely with you to navigate market changes together.

Should you have any questions, please feel free to reach out to your sales manager.

Sincerely,

SILIBASE SILICONE

March 23, 2026