News summary
Huaxi Technology faces inquiries from Beijing Stock Exchangegoldenslot, performance continues to decline, and revenue and net profit in 2023 will fall by 43% year-on-year respectivelygoldenslot.32% and 86goldenslot.43%, and inventories increased significantly. The company plans new product development and market expansion to meet challenges.
Newsletter text
[Huaxi Technology is facing a performance decline crisis, and the Beijing Stock Exchange has issued a letter to pay attention to sustainability and inventory issues] Huaxi Technology recently received an inquiry letter from the Beijing Stock Exchange, focusing on the company's performance sustainability and the market position of inventory products. According to the disclosure information, the company's operating income and net profit both dropped significantly in 2023. Operating income decreased by 43.32% compared with the previous year, and net profit decreased by 86.43% year-on-year. The Beijing Stock Exchange requires companies to provide detailed explanations on the risks of performance decline and the market competitiveness of inventory products. [Huaxi Technology's performance has declined year after year, and the Beijing Stock Exchange has required countermeasures] In terms of performance, Huaxi Technology has shown a downward trend since 2021, with three-year operating income of 174 million yuan, 138 million yuan, and 78.4834 million yuan respectively. The Beijing Stock Exchange asked the company to explain what measures it might take to deal with declining performance. [Dong Mi Shi Shouyi reveals product upgrade and market expansion strategy] Huaxi Technology's Dong Mi Shi Shouyi revealed that the company will reverse the decline in performance by developing new products, accelerating product iteration, differentiated competition strategies, and expanding overseas markets and new media publicity. [Beijing Stock Exchange focuses on sales models and inventory growth] In terms of sales models, Beijing Stock Exchange requires Huaxi Technology to detail the sales of distribution and direct sales in the past three years and the reasons for the significant increase in inventory book balances. In 2023, the ending book balance of inventories will increase by 78.54% year-on-year, and the growth of inventory goods will be even more significant. [The increase in inventories is affected by many factors. The Beijing Stock Exchange asked about the risk of market elimination] Huaxi Technology's explanation for the increase in inventories includes weather effects in the main sales area and the increase in new products. The Beijing Stock Exchange further inquired about the market competitiveness of inventory products and the adequacy of provisions for falling prices. [The progress of the fundraising project is concerned, and the Beijing Stock Exchange requires explanation of the asset use status] The Beijing Stock Exchange also pays attention to the progress of the Huaxi Technology fundraising project. The project has invested a total of nearly 50 million yuan, and some assets have been transferred to fixed assets. Beijing Stock Exchange requirementsgoldenslotUnderstand whether there is any provision for idle assets and impairment. [Shen Meng, Director of Xiangson Capital, commented on the company's operating risks] Shen Meng, Director of Xiangson Capital, pointed out that Huaxi Technology faces operating risks such as low product technology content and low competition threshold, as well as insufficient product research and development and innovation capabilities, and high pressure from homogenization competition.
