Hongquan Technology: The sales revenue from the company's two-wheeler business accounts for a small proportion of total revenue and does not have a significant impact on the company's operating performance.

(Source: Caixin)

The company’s stock trading has experienced a cumulative increase in the deviation of closing prices by more than 30% over three consecutive trading days.

On March 31, Hongquan Technology (688288.SH) issued an announcement of abnormal stock trading fluctuations. The company’s stock trading has seen a cumulative deviation of over 30% in closing prices over three consecutive trading days. According to the relevant provisions of the “Shanghai Stock Exchange Trading Rules” and the “Shanghai Stock Exchange Sci-Tech Innovation Board Stock Abnormal Trading Real-Time Monitoring Rules,” this constitutes an abnormal stock trading fluctuation.

After self-inspection, as of the date of this announcement, the company’s production and operation activities are normal, and there have been no significant changes in its main business. The internal and external operating environments have not undergone major changes. Furthermore, after self-inspection and written verification with the company’s controlling shareholder and actual controller, as of the date of this announcement, the company has no major matters that need to be disclosed but have not been disclosed, including but not limited to planning mergers and acquisitions, share issuance, debt restructuring, business restructuring, asset stripping, and asset injection. Additionally, the company has not identified any other major events that could significantly impact the company’s stock price. During this period of abnormal stock trading, the company’s controlling shareholder, actual controller, directors, and senior management personnel did not buy or sell the company’s stock.

The company mainly provides intelligent connected, intelligent cockpit, and other vehicle-mounted terminal products and services for commercial and passenger vehicles. Its two-wheeled vehicle business primarily offers clients terminal products such as smart meters, connected devices, controllers, as well as data management platforms and mobile app-based network management services. However, currently, this segment accounts for a small proportion of the company’s revenue and does not significantly impact its operating performance. The two-wheeled vehicle industry is highly competitive, with rapid technological iteration. Meanwhile, OEMs are sensitive to component costs, and the industry may face potential risks such as technological upgrades, intensified market competition, product obsolescence, and changes in supply-demand patterns. As of March 31, 2026, the company’s closing price was 30.60 yuan per share, with a latest rolling P/E ratio of 103.80 times. The average rolling P/E ratio for the computer, communication, and other electronic equipment manufacturing industry over the past month is 52.78 times. The company’s P/E ratio is significantly higher than the industry average. Investors are reminded to be cautious of investment risks, make rational decisions, and invest prudently.