25^th, October 2021,

Dear Valued Customer,

Shenzhen Honghaosheng Electronics Co., Ltd. (hereinafter HHS) would firstly like to appreciate your good cooperation and fantastic support for many years!

2021 has been the challenging year for the lithium battery industry.

1. After experiencing the huge price increase in raw materials  over the previous three quarters, we encountered a new wave of pricing challenge in the fourth quarter. In particular, the continued increases in prices of key raw materials such as Cobalt, Anode and Electrolytes.

2. The production capacity is greatly reduced and the cost is greatly increased due to the "dual control of energy consumption" policy issued by the Chinese government.

3. A 20% rise in electricity bills put a lot of pressue on manufacturers.

4. The fall in the exchange rate is a severe blow to exporters.

HHS has to carry out the following price adjustment plab due to the above reasons, which means:

1. New orders from 1th, November 2021, the price will be increased by $0.16/pc for single 18650 battery cells (for 2 cells/pack will increase $0.16*2=$0.32/pack and $0.25/pc for single 26650 battery cells)

    The update price for Lithium Polymer battery will increased 10-15%, please check with our sales team for details.

2. For orders placed from 1st, November 2021, the price will be adjusted accoridngly if the price fluctuation range of battery's main materials exceed 15%.

HHS will continue to offer the best service and support to our valued customers as always. Your kindly understanding would be highly appreciated.

Sincerely,

Shenzhen Honghaosheng Electronics Co., Ltd.