Some investors asked Shadowstone Innovation. The US midterm elections are over, and storage prices are expected to drop drastically. So, did you buy the memory chips that your company previously stocked at a high price or at what price? Do you use the x6 LUNA currently produced or the same chips you have stocked up before, and are there any plans to accrue depreciation? On November 11, the company answered on an interactive platform that the company's previous strategic preparation of memory chips was a forward-looking strategic procurement carried out by the company in the context of rising memory chip prices and fluctuations in supply and demand, which enabled the company to obtain stable memory chip supply and cost advantages. Currently, the core raw materials and preparations purchased by the company have good fluidity and are in line with the company's production and sales plans. At the same time, the company strictly complies with the requirements of the “Corporate Accounting Standards” and tests inventory impairment on each balance sheet date according to the lower of cost or net realizable value. Furthermore, the company has established a complete inventory dynamic management and monitoring mechanism to closely track raw material market price trends and terminal sales digestion progress, continuously optimize the inventory structure, and control the inventory turnover level. Please refer to the company announcement for specific business conditions.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.