Weishi Electronics: Has supplied backlight display modules to Facebook's products

On November 24, Weishi Electronics responded to investors' questions and said that the company has currently supplied backlight display modules for Facebook's products and has not yet started business cooperation with Huawei and Apple. The company will continue to expand its customer base and consolidate its position in the industry.

At the same time, regarding Mini-Led products and aerial imaging technology, Weishi Electronics said that one of the company's Mini-Led products has received a designated order from a customer. According to the characteristics of the automotive industry, it takes a certain period of time to achieve mass production; aerial imaging is a cutting-edge new technology, and its application in the automotive field will take a certain amount of time; but it has been applied in non-automotive fields, such as medical equipment, smart homes, public displays, etc.

In terms of performance, from July to September 2021, Weishi Electronics achieved operating income of 286 million yuan, a year-on-year increase of 7.81%, and net profit attributable to shareholders of listed companies was 1.5266 million yuan, a year-on-year decrease of 91.95%; in the first three quarters of 2021, Weishi Electronics achieved operating income of 876 million yuan, a year-on-year increase of 19.55%, and net profit attributable to shareholders of listed companies was 41 million yuan, a year-on-year decrease of 28.38%.

Regarding the reasons for the decline in net profit, Weishi Electronics said that it was mainly due to the shortage of labor resources in the region and the increase in minimum wages during the reporting period, which led to an increase in human resource costs; the company's products are mainly exported and priced in US dollars. The appreciation of the RMB against the US dollar has caused a relative decline in sales revenue with RMB as the accounting currency; the rise in commodity prices has further pushed up the procurement cost of original and auxiliary materials; the "chip shortage" and global supply chain imbalance have led to an increase in related manufacturing and transportation costs, and other factors have led to a decline in the company's gross profit margin and profits.