The success in sub-industry exports continued into the first half of 2022. The currency increase in 2021, rising inflation in Europe, and the sustained increase in China’s freight rates contributed to this momentum. However, strict zero-Covid policies also caused some export difficulties.

The stagnation in Europe has affected us as well. Yet, the most critical challenge is the suppressed exchange rate, which prevents us from updating our increasing costs. We had sold our products without changing prices for nearly 10 years until 2021. Due to the global increase in commodity prices that year, we had to raise our prices for the first time, and only made minor adjustments in 2022 depending on market conditions.

As the exchange rate remained stable in the second half of 2022, we expect to increase our prices in 2023 in foreign currency terms. If China's freight costs return to normal, we will likely lose our competitive price advantage, resulting in a decrease in export sales.

For the past two years, we have been expanding the training we received through our collaboration with BTSO-Bursa Model Factory across the company. These improvements have made a significant contribution to reducing our costs by increasing internal efficiency.

Our 2 MWp solar power plant investment, which will be commissioned in the second half of the year, is expected to further reduce our energy costs and help us maintain our competitive pricing.

By accelerating manual operations in our production lines through automation and robotic solutions, and by reducing our internal scrap rates, we are increasing production volumes and continuing to lower costs to sustain competitive pricing.

Additionally, we aim to expand our market share by participating in fairs in new markets such as South America.