The Shanghai Stock Exchange issued a regulatory inquiry letter regarding Weidi Shares' 2025 annual report, focusing on the operations of its controlled subsidiary Afa Silicon. The annual report shows Afa Silicon's revenue for the period was 83.5456 million yuan, accounting for 43.21% of the listed company's total, but net profit was negative 209,000 yuan. The company replied that Afa Silicon's top five customers account for over 95% of sales, with Chery Group alone making up 93.39%, acknowledging a single-client dependency. However, the cooperation has been stable since 2019 and is commercially reasonable, with a 100% post-period collection rate for related payments. Regarding the revenue and profit changes, the company explained that in 2025, revenue fell to 83.5456 million yuan due to adjustments in the client's vehicle product lines, while gross margin edged up to 7.02%, and net profit declined slightly due to changes in income tax expenses. The company stated it is reducing customer concentration risk through technological innovation and by expanding into electric two-wheelers and consumer electronics. It currently holds an order from Chery for 126,100 product units, with supporting new production lines already in place, and the related business is sustainable.
Chery Automobile Co LtdChery Group is the dominant customer of Afa Silicon, and the article notes adjustments in Chery's vehicle product lines caused revenue decline for Afa Silicon, indicating reduced demand from Chery.
Harbin VITI Electronics CorpAfa Silicon's revenue fell due to client product line adjustments, and it posted a net loss, with heavy reliance on a single customer.