Gelonghui, May 8, 丨 Dingxin Communications (603421.SH) announced that on May 7, 2024, the company received the “Notice of State Grid Hubei Electric Power Co., Ltd. on the Handling of Supplier Misconduct” issued by the State Grid Hubei Electric Power Co., Ltd., and the company was blacklisted by the State Grid Hubei Electric Power Co., Ltd. in the centralized bidding process in Hubei Province for 2 years from February 23, 2024 to February 22, 2026.
In 2022, the company won the bid amount of about 22.56 million yuan (tax included) in the State Grid Hubei Province, of which the amount of confirmed revenue in 2022 was about 3.04 million yuan, accounting for 0.10% of the company's 2022 revenue, and the confirmed revenue amount in 2023 was about 4.93 million yuan, accounting for 0.14% of the company's 2023 revenue. In 2023, the company won the bid amount of about 65.93 million yuan (tax included) in the State Grid Hubei Province, and the confirmed revenue amount in 2023 was about 17.5 million yuan, accounting for 0.48% of the company's 2023 revenue. Since the scope of this processing only includes Hubei Province, and the processing results of the State Grid have not yet been announced, the impact of this announcement on the company's national grid bid operation and performance is uncertain. Assuming that the State Grid's fusing period for the company is 1 year. According to estimates of the company's winning bid amount and confirmed revenue in the national grid system in the past two years, the “fusing mechanism” will cause the company's total revenue to drop by about 1.65 billion yuan in the next 3-4 years, reduce the company's revenue by about 550 million yuan in 2024, and reduce the company's revenue by about 870 million yuan in 2025.