Gigadevice (ASX: 03986) has issued an announcement regarding abnormal fluctuations in its A-share stock trading.

The company's stock price has seen a cumulative deviation of over 20% in closing prices across three consecutive trading days. According to the relevant regulations of the Shanghai Stock Exchange, this constitutes an abnormal trading situation.

Following an internal review and written inquiries to its controlling shareholder and actual controller, the company confirms that, as of the date of this announcement, there are no significant events affecting the abnormal stock price fluctuations. Furthermore, there are no other major undisclosed matters that should have been announced.

The company's current production and operations are proceeding normally without any significant changes.

The company operates in the memory chip sector, which is currently experiencing an upward cycle. A supply shortage has led to substantial price increases, thereby boosting the company's operating performance.

However, the memory industry has historically exhibited significant cyclical volatility, and supply and demand are expected to eventually rebalance. Subsequently, changes in multiple factors such as the macroeconomic environment, industry cycles, and market supply-demand dynamics may lead product prices to return to a more sustainable and reasonable level.

This potential price adjustment could impact the selling prices, gross margins, and overall profitability of the company's memory business. Investors are advised to fully consider the inherent cyclical volatility of the memory industry and its potential impact on the company's future operating performance, exercising prudent judgment and rational investment.