NXP terminates agency contract with WPG subsidiary

WPG recently issued an announcement stating that its subsidiary Pinjia received a notice from NXP that due to business adjustments, the agency contract would be terminated on March 1, 2022.

WPG pointed out that NXP accounted for 1.52% of WPG Group's total purchases and 11.76% of Pinjia's total purchases in the consolidated financial statements; taking into account the amount of the production line transferred to other subsidiaries of the group, the net impact of the termination of the agency contract on WPG's total purchases was -1.06%.

In addition, WPG stated in the announcement that the company has taken the following countermeasures: (1) Pinjia will continue to perform its contractual obligations and complete orders from current customers before the contract is terminated, and related inventory sales and collections will not be affected; (2) Pinjia also has agents with similar product lines, which will be replaced and further cooperation will be strengthened, and it will actively expand customers and new markets, and strive to obtain agents for more competitive products; (3) It will accelerate investment in emerging markets, strengthen the sales team, and build a more efficient organizational structure.