---
title: "FRIEND: Fluctuations in upstream raw material prices may lead to losses in some inventory"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/240957427.md"
description: "FRIEND's independent director Chen Yudong stated at the company's performance briefing today that the company expects a high possibility of a decline in upstream raw material prices in 2025. The company's business primarily follows a sales-based procurement and cost-plus model. When facing fluctuations in upstream raw material prices, the company will promptly pass on price changes to downstream customers. However, the safety stock inventory maintained for the main engine manufacturers and their supporting manufacturers may incur losses due to fluctuations in upstream raw material prices"
datetime: "2025-05-20T05:26:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/240957427.md)
  - [en](https://longbridge.com/en/news/240957427.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/240957427.md)
generator: "portal-rs"
---

# FRIEND: Fluctuations in upstream raw material prices may lead to losses in some inventory

FRIEND's independent director Chen Yudong stated at the company's performance briefing held today that the company expects a high possibility of a decline in upstream raw material prices in 2025. The company's business primarily follows a sales-based procurement and cost-plus model. When facing fluctuations in upstream raw material prices, the company will promptly pass on price changes to downstream customers. However, the safety stock inventory maintained for the main engine manufacturers and their supporting manufacturers may incur losses due to fluctuations in upstream raw material prices

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**