Core Viewpoint - The Shanghai Stock Exchange has raised concerns regarding the pricing fairness of glass fiber purchased by Zhenstone Co. from its related party, China Jushi, particularly noting that the procurement prices during the reporting period were lower than those from third-party suppliers [1] Group 1 - Zhenstone Co. responded that the contract prices for E6 and E7 glass fibers purchased from China Jushi do not exhibit significant anomalies compared to the average selling prices of similar products to all customers [2] - The contract price for E8 glass fiber is aligned with the price movements of E7 glass fiber, indicating no obvious irregularities [2] - For the first half of 2025, the price of E8 glass fiber purchased from International Composites is roughly equivalent to the corresponding prices, while the price for E7 from China Jushi shows slight differences compared to International Composites [2] Group 2 - The price differences are attributed to several factors, including variations in procurement price structures, timing of contract negotiations, and differences in purchasing scale effects [2] - The contract price with China Jushi is based on ex-factory prices (excluding freight), while the contract with International Composites includes freight costs [2] - The procurement demand for glass fibers in 2025 is primarily directed towards China Jushi, with expected purchases from International Composites accounting for less than 10% of the total procurement volume [2]