Regarding the Impact of the Iranian Situation, Fengyin Motors Joins Hands to Overcome Difficulties

Recently, the situation in the Iranian region has continued to escalate. The intensified military conflict and geopolitical uncertainty have had a wide-ranging impact on global supply chains, international trade, and related industries. As a professional manufacturer specializing in the R&D, production, and export of shaded-pole motors, our company is highly concerned about the development of the situation and has quickly launched a comprehensive risk assessment and response plan. This document clarifies the relevant situation and our measures to protect the legitimate rights and interests of our partners and customers.

1. The Multidimensional Impact of the Iranian Situation on the Motor Industry

Currently, the escalating situation in Iran has created a multidimensional impact on the motor industry. The disruption of shipping in the Strait of Hormuz, soaring marine insurance rates, and the suspension of some routes have significantly impacted the transportation of goods related to Iran. At the same time, the escalation of US sanctions against Iran has increased the compliance risks of trade involving Iran. Furthermore, although the demand for shaded-pole motors from Iran's domestic industrial development remains stable, the turbulent situation still brings uncertainty to the progress of local projects and order fulfillment.

2.Core Response Measure One: Optimize Logistics Solutions and Reduce Transportation Risks

In response to fluctuations in Middle East shipping routes, our company has established emergency partnerships with several leading international logistics companies to monitor shipping activity in and around the Strait of Hormuz in real time. We flexibly adjust transportation routes and methods, and reasonably avoid high-risk areas. We proactively liaise with logistics carriers to calculate additional costs such as marine insurance premiums in advance, minimizing the impact of logistics fluctuations on order delivery, and promptly update customers on logistics progress to ensure safe and timely delivery of goods.

3. Core Response Measure Two: Strictly Adhere to Compliance and Prevent Trade Risks

Our company strictly adheres to the relevant sanctions laws and regulations of the United Nations and various countries, establishing a rigorous supplier and partner vetting mechanism. We comprehensively investigate compliance risks related to Iran-related business to avoid direct or indirect transactions with sanctioned entities. We engage professional compliance agencies to provide support, review force majeure clauses for Iran-related orders, and prepare legally for potential fluctuations in contract performance, effectively protecting the legitimate rights and interests of both parties.

4. Core Response Measure Three: Deepen Customer Communication and Provide Customized Services

For our cooperative clients in the Iran region, we assign dedicated personnel for one-on-one communication, providing real-time updates on the potential impact of the situation on orders, logistics, and delivery, and proactively communicating solutions. We flexibly adjust order production cycles, delivery methods, and settlement models based on clients' individual needs, supporting non-USD settlements such as RMB (CIPS system) to mitigate the risks associated with the long-arm jurisdiction of the US dollar and ensure smooth cooperation.

5. Core Countermeasure Four: Focusing on Technological Upgrades to Solidify Product Competitiveness

Leveraging our own R&D capabilities, we continuously increase investment in the research and development of high-efficiency, energy-saving shaded-pole motors, optimize production processes, reduce dependence on raw materials from specific regions, and simultaneously enhance product added value. We provide stable and reliable motor solutions to global clients with high-quality, efficient products, helping them reduce operational risks.

6. Conclusion and Acknowledgements

While geopolitical fluctuations bring many challenges, they also drive the industry to accelerate supply chain restructuring and quality upgrades. With years of deep cultivation in the shaded-pole motor field, our company possesses a complete production system, a mature supply chain layout, and a professional service team, giving us the confidence and ability to cope with various risks and challenges.

We sincerely thank all our partners and clients for their long-term trust and support! Our company will continue to monitor the situation in Iran and the dynamics of the global supply chain, promptly optimize our response measures, and, adhering to the business philosophy of "integrity, win-win cooperation, and quality first," proactively take responsibility and act positively to work hand in hand with all parties to overcome difficulties and build a stable and sustainable cooperative ecosystem.

For any questions or needs, please contact us through our official contact methods. We will provide professional responses and service support as soon as possible.