Core Viewpoint - Wentech Technology plans to divest its product integration business to focus solely on its semiconductor operations, with a cash transaction valued at 4.389 billion yuan [2][7]. Group 1: Asset Sale Details - Wentech Technology intends to transfer 100% equity of several subsidiaries and business assets to Luxshare Precision and Luxshare Communications for 4.389 billion yuan [2]. - The company previously signed an agreement to transfer shares of three companies to Luxshare Communications for a total of approximately 1.7 billion yuan [2]. - The divestiture will significantly alter Wentech's business structure, making semiconductor operations its sole focus [2]. Group 2: Financial Performance - In 2024, Wentech's total revenue was 73.598 billion yuan, a year-on-year increase of 20.23%, but it reported a net loss of 2.833 billion yuan, a decline of 339.83% [4]. - The product integration business generated revenues of 58.431 billion yuan in 2024, but with a low gross margin of 2.73% [4]. - The company expects that the divestiture will enhance profitability and reduce total liabilities by 8.545 billion yuan, improving its debt-to-asset ratio and cash flow [7]. Group 3: Future Prospects in Semiconductors - Post-divestiture, Wentech's future growth will rely heavily on its semiconductor business, which has a gross margin of 37.52% but generated only 14.715 billion yuan in revenue [8]. - The semiconductor sector is projected to grow significantly, with the power semiconductor market expected to reach nearly 10 billion USD by 2029 [8]. - Wentech's management anticipates growth in the semiconductor business in the second quarter of 2025, driven by strong orders and near-full production capacity [8]. Group 4: Challenges and Risks - The semiconductor industry is facing intense competition, with major players holding over 60% market share in high-end automotive chips [9]. - Geopolitical factors and supply chain instability pose ongoing challenges for Wentech, necessitating flexible market responses [9]. - The company is also addressing compliance issues in India, which may result in potential fines [9].

Core Viewpoint - The company is focusing on its semiconductor business, planning to divest its product integration assets to enhance its competitive position in the global power semiconductor industry [28][29]. Meeting Arrangements - The annual shareholder meeting will be held on May 16, 2024, at the Wentai Garden Hotel in Huangshi, Hubei Province, combining on-site and online voting [1][3]. - Shareholders will have the right to vote, speak, and inquire during the meeting, with specific guidelines to maintain order and efficiency [2][4]. Business Performance - The company reported a revenue of 73.598 billion yuan in 2024, representing a year-on-year growth of 20.23% [10]. - The semiconductor business achieved a revenue of 14.715 billion yuan with a gross margin of 37.47%, indicating a solid profitability trend [12]. Strategic Focus - The company plans to concentrate resources on its semiconductor business, aiming to enhance profitability and maintain its leading position in the industry [28][30]. - The semiconductor business is expected to benefit from the growing demand in the automotive sector, particularly in electric vehicles, where semiconductor content is significantly higher compared to traditional vehicles [14][17]. Product Development - The company is actively expanding its product line, focusing on high-power discrete devices and analog ICs, with significant investments in research and development [21][23]. - New products launched include advanced power MOSFETs, logic ICs, and energy management solutions, aimed at meeting the increasing market demand for high-performance semiconductor devices [22][24]. Market Opportunities - The semiconductor market is projected to grow, driven by trends in AI, electric vehicles, and industrial automation, providing ample opportunities for the company to expand its market share [18][19]. - The company is establishing strategic partnerships to enhance its product offerings and meet the stringent requirements of automotive applications [26].