1. According to the information disclosed in the prospectus, Deye Technology has obvious risk of internal control failure. The equity of Ningbo Deye is highly concentrated, and the actual controller regards the company as an "ATM" and borrows a lot of illegal funds. The borrowed funds are used by the actual controller's family for personal consumption and house purchase, and even flow into the stock market continuously.
2. Ningbo Deye expects its operating income to mainly come from the United States, accounting for 70% of the total sales. However, while income depends heavily on beauty, the production of Ningbo Deye is also inseparable from beauty. If Midea reduces the demand for its products due to its own reasons or major adverse changes in the macroeconomic environment, the company will not be able to expand new customers in time, which will lead to the risk of a decline in operating performance.