Pricing for the CAON’s products is determined by various factors, including raw material costs, operating expenses, market demand and competition. Our technology of deploying recycled synthetic resin allows us to sell our product at prices to undercut the competition, capture market share and return a profit to shareholders.

We will apply different pricing for customers depending on market conditions, customer’s creditworthiness and location. Prices are reviewed and set on a regular basis.

Thanks to the low cost of the raw materials, the gross profit of our architectural product is relative high. We currently pay US$430 per ton to purchase waste plastic granule from the garbage processing factory and obtain fly ash free-of-charge. Our gross profit is further reduced because our architectural products could be recycled again.