AWINIC(SH:688798) Ju Chao Zi Xun·2025-11-14 16:09Core Viewpoint - Aiwai Electronics (688798.SH) has provided detailed disclosures regarding its sales model, distributor cooperation, and inventory management in response to an inquiry about its convertible bond issuance, highlighting concerns over gross margin differences and distributor stability [1][3]. Sales Model - The company primarily relies on a distribution channel, with distributor revenue accounting for over 80% of total revenue from 2022 to September 2025, while direct sales represent less than 20% [1]. - The distribution model allows for broader coverage of end customers and product variety, whereas direct sales focus on leading domestic and international consumer electronics clients [1]. Gross Margin - Gross margins for direct sales are slightly higher than those for the distribution model due to the higher performance, reliability, and customization demands from top-tier consumer electronics companies [3]. - The gross margin structure is similar to that of peers in the analog chip industry, such as Shengbang and SIRUI [3]. Distributor Stability - The company reported that major distributors have remained relatively stable, with core distributors contributing over 49% of total distributor revenue during the reporting period [3]. - The distributors are well-known professional distributors in the industry and are not related to the company [3]. - The company plans to maintain distributor stability through channel management, credit control, and collaborative efforts to develop end customers [3]. Inventory Management - Changes in distributor inventory levels are closely tied to industry cycles, with a general trend of destocking observed in 2023 [3]. - As demand is expected to recover in 2024 and 2025, there is an anticipated reasonable replenishment of distributor inventory [3]. - The company believes that inventory fluctuations align with the trend of business scale expansion and does not see any abnormal accumulation risks [3]. Operational Strategy - Aiwai Electronics emphasizes the need for refined operations in the use of funds from the convertible bonds, channel management, and inventory control to enhance its anti-cyclical capabilities [4]. - The inquiry response has clarified market concerns regarding gross margin differences in sales models and distributor stability, but ongoing observation of industry conditions and order fulfillment is necessary for assessing operational performance [4].