The main factors affecting the performance of Xiamen Yanjiang New Materials Co., LTD are as follows:

1. The production and operation of overseas subsidiaries remain stable.

Since the second half of 2017, Yanjiang has set up overseas production bases in Egypt, the United States and India, corresponding to the Middle East and Africa Mediterranean market, the North American market and the Indian market respectively. After the completion of these overseas production bases, the company's transportation radius has been reduced, the logistics time has been shortened, and the logistics cost has been reduced. Customers' overseas companies transfer orders from relevant markets and surrounding areas to the corresponding overseas production bases of the company, which makes the overseas demand of the company rapidly increase, the company's globalization strategy has achieved phased success, and the production and operation of overseas subsidiaries are becoming more mature and stable.

2. Continue to deepen the domestic market, domestic business development has made new progress.

Yanjiang continues to promote the development of the domestic market, and more actively provide domestic customers with disposable sanitary products surface materials that are more in line with the needs of Chinese consumers, and adopt different programs to meet the more personalized needs of domestic customers. These measures are gradually getting more domestic customers' favor for the company.

3. The appreciation of the US dollar is conducive to the company's exports and the appreciation of foreign currency assets.

Recently, the US dollar remains strong, on the one hand, it is beneficial to the company's export business, and at the same time, because the company holds more US dollar assets, the appreciation of the US dollar can obtain more exchange income.