ST Chengxing (600078) announced on the evening of May 28 that the company received the “Inquiry Letter on the Discontinuation of Production at the Jiangyin Plant of Jiangsu Chengxing Phosphorus Chemical Co., Ltd.” issued by the Shanghai Stock Exchange on May 21. After receiving the “Inquiry Letter”, the company actively organizes relevant departments to check the issues raised in the “Inquiry Letter” and implement them one by one. The company has fully prepared phosphoric acid products according to the order situation and customer needs to ensure stable supply; the Qinzhou factory, a wholly-owned subsidiary of the company, has sufficient phosphoric acid production capacity and related qualifications to accept production and sales orders for phosphoric acid products to ensure stable delivery of phosphoric acid products to meet the needs of various customers; during the shutdown and maintenance period, the company has done a solid job of improving safety and environmental protection and maintaining the phosphoric acid production line to ensure the good and stable operation of subsequent production equipment. In order to cope with the possible impact on sales, the company's Jiangyin plant increased production and stored inventory in April and May. Currently, the phosphoric acid inventory is sufficient to meet sales demand for the next 2 months. This shutdown and maintenance is short-term, and the impact on the company's production and revenue is small throughout the year. At the same time, production is normal at the Qinzhou factory, and the surplus production capacity is sufficient to guarantee supply demand. If necessary, production can be increased in a timely manner. Stopping production in the short term will not affect normal sales, nor will it reduce the company's revenue as a result.