Current HFCs Refrigerant Production Capacity in FRIOFLOR Company

The company's existing production capacity of third-generation fluorinated refrigerants (HFCs) is about 300,000 tons (excluding the capacity of producing blended refrigerant gas). For the production and sales of HFCs in recent years and the first three quarters of this year (excluding blended products), please refer to the company's disclosed main operating data announcement. It should be reminded that from 2024, the company will produce HFCs in accordance with the production quota approved by the relevant state departments, and shall not exceed the quota.

From 2024 onwards, Chinese enterprises will produce HFCs in accordance with the production quota approved by the relevant

state departments, and shall not exceed the quota. It means that the existing excess HFCs production capacity has been

removed, and the contradiction of overcapacity has been fully resolved. In addition, after the competition for HFCs quota in the

industry from 2020 to 2022, the competition pattern of the industry tends to be concentrated and further optimized. Generally

speaking, supply and demand determine the price of a product, which in turn affects supply and demand. During the HFCs quota period, the supply is subject to quotas. Therefore, the main factor that will determine the price of HFCs in the future is the demand situation. However, the demand is uncertain, so please follow up and judge or predict it.