Stock code: 300328 Stock abbreviation: Yi'an Technology Announcement No.: 2020-051 Dongguan Yi'an Technology Co., Ltd. Announcement on the Shenzhen Stock Exchange's supplementary response to the company's 2019 annual report inquiry letter The company and all members of the board of directors guarantee information disclosure The content is true, accurate and complete, with no false records, misleading statements or major omissions. Dongguan Yi'an Technology Co., Ltd. (hereinafter referred to as "Yi'an Technology" or "Company") received the "Inquiry Letter on the Annual Report of Dongguan Yi'an Technology Co., Ltd." from the Shenzhen Stock Exchange on June 15, 2020 ( Inquiry Letter [2020] No. 476 of the GEM Annual Report (hereinafter referred to as "Inquiry Letter"). On June 19, 2020, the company and the intermediary agencies carried out item-by-item verification and response to the questions in the inquiry letter. For details of the response, please refer to the company's announcement on June 19, 2020 on the website of Juchao Information. The company now makes supplementary replies to the relevant matters of the inquiry letter as follows: 1. During the reporting period, your company achieved operating income of RMB 102,504,200, an increase of 3.98% over the same period of the previous year; net profit attributable to shareholders of listed companies (hereinafter referred to as net profit) 10,309.38 10,000 yuan, an increase of 90.20% year-on-year, net profit after deducting non-recurring gains and losses was 25.775 million yuan, a year-on-year decrease of 41.45%. Among them, the operating income of light alloy precision die-casting products such as aluminum alloys and magnesium alloys was RMB 893.4208 million, an increase of 5.05% year-on-year; the operating income of organic silicone products was RMB 125.8212 million, a year-on-year decrease of 4.66%, and the gross profit margin increased by 8.84 percentage points to 41.92% . (2) From 2015 to 2019, the gross profit margin of your company's aluminum alloy, magnesium alloy and other light alloy precision die-casting products were 29.19%, 28.05%, 23.27%, 21.71%, and 17.99%, respectively. Ask your company to analyze whether the gross profit margin of light alloy precision die-casting products such as aluminum alloys and magnesium alloys continues to decline. If so, please disclose the reasons and fully indicate the risks. The company replied: ?Sales revenue In the first quarter of 2020, affected by the new crown epidemic, some of the company's export products were postponed, resulting in a decline in sales revenue of light alloy precision die casting products such as aluminum alloys and magnesium alloys. With the advancement of resumption of production and production, production has gradually recovered. Among them, some products of liquid metal have been mass-produced, and the order volume and sales revenue are all growth has a positive significance to the overall gross profit margin improvement. However, future orders for light-alloy precision die-casting products such as aluminum alloys and magnesium alloys are uncertain, which will also cause uncertainties for the gross profit margin in the later period. ?The operating cost of the company is affected by the demolition of the Ganshen High-speed Railway in 2019. The demolition of some workshops has led to a low utilization rate of equipment capacity, which has increased the unit fixed cost of the product. At the same time, in order to ensure the supply to customers, increase the purchase of semi-finished products and outsourcing processing The proportion of the process increases the unit production cost. With the weakening of the impact of the Ganshen high-speed rail demolition in 2020, the company's internal production capacity has gradually recovered, and the proportion of outsourcing semi-finished products and outsourced processing procedures has decreased, thereby reducing unit production costs, but unit production costs are uncertain due to the impact of orders. ?The gross profit margin of light alloy precision die casting products such as aluminum alloy and magnesium alloy in the first quarter of 2020. In the first quarter of 2020, affected by the new crown epidemic, the gross profit margin of light alloy precision die casting products such as aluminum alloy and magnesium alloy was 17.36%, and The gross profit margin in 2019 decreased slightly from 17.99%. In summary, the gross profit margin of the company's aluminum alloy, magnesium alloy and other light alloy precision die-casting products may continue to decline. Investors should pay attention to investment risks.
Board of Directors of Dongguan Yian Technology Co., Ltd. June 23, 2020
