Zhongying Electronics: If Hejian resumes work at the end of February, it is estimated that the company's annual output will be affected by 2-3%

On February 23, Zhongying Electronics stated on the investor interaction platform that it was learned that the nucleic acid test review of Hejian personnel was normal, but the local government was still very strict in epidemic prevention and had not resumed work as of February 21. The company expects to have the opportunity to resume work at the end of February. If Hejian can successfully resume work at the end of February, it is estimated that the impact on the company's annual output will be about 2-3%.

Previously, Zhongying Electronics mentioned in an announcement about the impact of the epidemic on suppliers' production and operations that on February 14, 2022, the Suzhou Industrial Park had an outbreak of the COVID-19 pandemic, and nucleic acid testing was carried out on all employees in the park. The production activities of suppliers Hejian Chip Manufacturing (Suzhou) Co., Ltd. (hereinafter referred to as "Hejian") and Jinglong Technology (Suzhou) Co., Ltd. (hereinafter referred to as "Jinglong") located in Suzhou Industrial Park have been suspended, which will have an impact on the production of products of Zhongying Electronics Co., Ltd. (hereinafter referred to as the "Company"), and product supply may be delayed in the short term due to factors such as delayed resumption of work by suppliers and poor logistics.

According to the data, Zhongying Electronics' main product lines are microcontroller chips for industrial control and OLED display driver chips. The microcontroller system main control single chip is mainly used in home appliance main control, lithium battery management, motor control, smart meters and the Internet of Things, and the OLED display driver chip is mainly used for screen display driving of mobile phones and wearable products.

According to the information disclosed, in February 2022, Zhongying Electronics predicted that the production capacity of the company's product lines in 2022 will increase significantly compared to 2021.