---
title: "The significant rise in silver prices, does it have an impact on the company's profits? DKEM responds"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/263231087.md"
description: "DKEM responded to the impact of rising silver prices on the company's profits, stating that it adopts a production model based on sales and orders based on production, with silver powder procurement orders and sales orders issued simultaneously, and pricing based on the current silver spot price, thereby transferring the risk of fluctuations in silver spot prices to downstream customers. In addition, the company also hedges the silver difference between sales and procurement orders through silver futures to reduce risk"
datetime: "2025-10-29T07:44:51.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/263231087.md)
  - [en](https://longbridge.com/en/news/263231087.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/263231087.md)
---

# The significant rise in silver prices, does it have an impact on the company's profits? DKEM responds

Regarding the question of "whether the significant increase in silver prices this year will affect the company's profits," DKEM responded on October 28th that the company mainly adopts a production model based on sales and a procurement model based on production orders. Typically, upon receiving a sales order, the company simultaneously issues silver powder procurement orders based on the sales order, production plan, and inventory situation. The sales prices of conductive silver paste products and the main procurement prices of silver powder are both priced based on the silver spot prices at the same time or similar periods. This pricing model allows the impact of silver spot prices on silver powder procurement prices to be passed on to downstream customers through sales pricing, meaning the company does not directly bear the risk of significant fluctuations in silver powder prices. To further reduce the risk of silver spot price fluctuations, the company hedges the silver difference portion between sales orders and procurement orders using silver futures

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