How does the price rise of upstream raw materials affect the cost Zhang Xiaoquan Inc(301055) ( Zhang Xiaoquan Inc(301055) ) said that as a leader in the knife and scissors industry, the company has strong bargaining power on the cost side. For the upstream, the company has adopted the means of joint OEM centralized purchase and signing long-term contracts to lock in the price of raw materials. In terms of downstream external sales, the company actively made advance estimates, covered the rising pressure of raw materials through product price adjustment and product structure optimization, and finally kept the gross profit margin relatively stable. In addition, the company recently established a supply chain company to reduce costs through centralized procurement.