On the morning of July 6th, Shenzhen Huaqiang disclosed the investor relations activity record sheet, responding to issues such as the recent price hikes in the electronic components industry that the market has been concerned about. 

Shenzhen Huaqiang stated that currently, the electronic component industry is experiencing a high level of prosperity. Prices in all stages of the industry chain, including raw materials, design, wafer fabrication and packaging testing, are all rising. The prices of most components such as storage chips, power devices, analog chips, passive components, etc. are also increasing. The reasons for the price increase include the incremental demand brought about by AI computing infrastructure and the suction effect on production capacity, the rise in material and production costs, and the impact of geopolitical conflicts on supply chains. 

Shenzhen Huaqiang stated that as a leading local distributor of electronic components, the company is located in an indispensable middle link of the industry and will benefit from the overall upward trend of the industry. On one hand, during the period of rising industry prosperity, the demand for components from customers increases, which will drive an increase in the company's shipment volume. The rise in component prices will further promote an increase in the overall shipment amount. On the other hand, under the situation of simultaneous increase in both quantity and price, the gross profit margin of the company's distribution business is also expected to increase simultaneously. 

When discussing the situation of the company's MLCC business, Shenzhen Huaqiang stated that it is the global main authorized distributor for Murata. Recently, they have observed an increase in customer orders and have begun to place orders and actively replenish inventory. For some models that are in short supply, the company prioritizes meeting the procurement needs of major customers. 

Shenzhen Huaqiang also mentioned the progress of Huawei's computing component general distribution business. Shenzhen Huaqiang stated that the company is the general distributor of Huawei's computing components (including Ascend and Kunpeng), and will continue to promote the technology and products of Huawei's computing components, and actively assist Huawei in building the computing power ecosystem. 

Recently, Shenzhen Huaqiang established a wholly-owned subsidiary, Shenzhen Huaqiang Intelligent Computing Technology Co., Ltd., and positioned this company as an AI computing power comprehensive service provider. It is stated that in the future, the main development direction of this company will be centered around Huawei's computing components (including Ascend and Kunpeng) business, collaborating with various partners, providing various products such as chips and modules to the domestic AI industry, simultaneously outputting end-to-end capabilities such as solution customization, technical services, and supply chain support, and jointly building a domestic AI full-stack ecosystem covering the end, edge, and cloud.