Dongxin Co., Ltd.: Responds to doubts about development stagnation,坚持战略开拓市场提升业绩

Investor Questions:

Secretary to the Board of Directors, hello! By signing a $1.5 billion wafer long-term supply agreement, BoWei Storage has locked in future production capacity; competition in the industry has entered an accelerated phase. The company’s asset-liability ratio is only 5%. With extremely conservative finances and yet no major strategic investment for the long term, and no key positioning, during this period of rapid industry growth it has been nearly idle and unproductive.

May I ask whether the company’s management has misjudged the direction of industry development? With ample funding, why isn’t it used to enhance competitiveness and expand market share? In the future, how will the company change the current stagnant situation to protect the interests of minority shareholders?

Secretary to the Board of Directors’ Reply (Dongxin Co., Ltd. SH688110):

Dear Investor, hello. The company will adhere to its established strategy, focusing on key applications and leading customers in areas such as network communications, surveillance and security, consumer electronics, industrial control, and automotive electronics, to provide diversified products. The company will also actively explore emerging application fields including autonomous driving, AI edge devices, AI toys, AI glasses, and AI earbuds, expand market share, improve operational and management capabilities, and promote technological innovation and product process iteration, with the goal of becoming a leading domestic storage chip design enterprise. The company is committed to providing more customers with fully covered storage chip product offerings and to delivering reliable and efficient solutions for the increasingly growing storage demand. On the other hand, relying on the advantages accumulated over many years in the industry—such as resources, customers, and supply chain—the company, with storage at its core, has made a technical layout in the “store, compute, connect” integrated domain to increase the proportion of high-end products and the penetration rate of domestic substitution. The interests of minority shareholders are an important matter the company places great emphasis on. The company will continue to work hard to improve operating performance and create long-term value for shareholders. Thank you for your attention to our company.

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Disclaimer: This information is excerpted by Sina Finance from publicly available information and does not constitute any investment advice. Sina Finance does not guarantee the accuracy of the data; the information is provided for reference only.

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