Li Xin Wei: the order demand for detonator chips of relevant promotion policy companies in beneficiary countries increases.

On February 9, some investors asked Lixin about the company's market share in infrastructure detonator chips on the investor platform. At present, the construction detonator stocks represented by Poly United are growing satisfactorily, whether the company's order demand in this area has increased accordingly.

Force Core Micro said that the company is one of the mainstream suppliers of detonator chips. Thanks to the national policy on the promotion of digital detonators, the demand for orders has increased.

According to the 14th five-year Plan for the Safety Development of Civil explosive ZHA goods Industry issued by the Ministry of Industry and Information Technology, in June 2022, China completely banned the use of ordinary detonators and imposed the use of electronic detonators. As early as December 2021, the Ministry of Industry and Information Technology once again defined the time point for the full use of digital electronic detonators, that is, to stop production by the end of June and stop selling other industrial detonators except industrial digital electronic detonators by the end of August.

It is reported that the output of electronic detonators of Power Core Micro was 117 million in 2020, a substantial increase compared with 60 million in 2019, accounting for 12.24% of the total output of industrial detonators. With the national strategy of promoting the rise of the central region, the implementation of the western development strategy, and the continuous promotion of the rural revitalization strategy, the civil blasting products and blasting service industry is expected to continue to be driven. Therefore, in the future, the company's intelligent network delay management unit has more room for development in this field.

The company expects to achieve a net profit of about 160 million yuan belonging to the owner of the parent company in 2021, an increase of 93.0492 million yuan or about 138.98 percent compared with the same period last year, according to a performance forecast issued on January 20 this year.

With regard to the reasons for the performance changes, Lixin Micro said that during the reporting period, around the market and customer demand, the company continued to expand the R & D team, continue to strengthen R & D, actively promote the improvement and upgrading of the product line, increase product categories, and optimize product structure.