On March 31st, Hongquan Technology issued a statement addressing the unusual fluctuations observed in its stock trading activities. The company's core operations revolve around delivering intelligent connected vehicle solutions, smart cockpit systems, as well as a range of in-vehicle terminal products and services tailored for both commercial and passenger vehicles. Beyond this, Hongquan Technology also ventures into the two-wheeler market, supplying customers with terminals like smart meters, intelligent connectivity systems, and controllers, complemented by connected management services such as data management platforms and mobile applications.

Nevertheless, it's important to note that the sales revenue generated from this particular business sector currently represents a relatively small fraction of the company's overall earnings and exerts a limited influence on its operational performance. The two-wheeler industry is presently characterized by fierce competition and swift technological progress. Furthermore, original equipment manufacturers (OEMs) are highly cost-conscious when it comes to component procurement. The industry is also susceptible to various risks, including rapid technological evolution, escalating market rivalry, annual reductions in product pricing, and fluctuations in supply and demand dynamics.