ABACHEM: The company's chlorantraniliprole intermediate products adopt a CDMO model and do not participate in market competition

ABACHEM stated during an institutional research that its subsidiary Nantong ABACHEM Co., Ltd. has an annual production capacity of 2,000 tons of the chlorantraniliprole intermediate K acid, using a CDMO business model to provide customized production and delivery based on customer orders. Currently, the company supplies this product exclusively to a single customer and does not sell it on the market. The relevant business is still operating normally, continuously supplying the customer. Regarding the renewal of the cooperation agreement, the company has received the customer's intention to extend. Due to adjustments in the market supply and demand pattern and customer strategies after the expiration of downstream product patents, both parties still need to further discuss the agreement terms, and a new agreement has not yet been formally signed. The signing of the new cooperation agreement will require both parties to jointly promote and reach a consensus. The company's chlorantraniliprole intermediate product adopts a CDMO model and does not participate in market competition. So far, this incident has not had a negative impact on the company's business. Given that the company supplies this product to a single customer, any changes in orders still need to be specifically negotiated with the customer, and it is currently impossible to predict the impact on the company's business and performance