 2015-11-25 |
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"Xinzhu Global Expands into Guangdong and Shandong; Major Orders to Start Shipping in Q1 Next Year; China Profits Expected to Double"
November 25, 2015, 15:55
YC Group's packaging subsidiary Xinzhu Global (3171-TW) Chairman Jiang Wenrong announced today (25th) that the company is shifting its strategy in the Chinese market to target large, key clients and is expanding its presence to Guangdong and Shandong provinces. The company has already received large orders from wire and optoelectronics industries and plans to begin shipments in the first quarter of next year. This is expected to result in significant revenue and profit growth in the Chinese market.
Jiang Wenrong made these remarks during a media briefing this afternoon.
In the past, Xinzhu expanded its channels in China to find customers. However, due to the varying sizes of clients, growth in China stagnated and the risk of bad debts increased. Consequently, Xinzhu decided to target key, large customers to improve profitability.
Looking ahead, Jiang Wenrong emphasized that Xinzhu Global will have clear growth momentum.
He stated that in Taiwan, the company plans to develop the previously overlooked Hualien and Taitung regions to maintain a higher market share. In China, besides refining its business strategy and targeting large, key customers, Xinzhu will also expand into Guangdong and Shandong.
Jiang revealed that Xinzhu has already secured large orders from wire and optoelectronics clients and expects to start shipments in the first quarter of next year. This will likely lead to substantial revenue and profit growth in the Chinese market.
He noted that the short-term goal is to focus on growth in China. This year, due to inventory clearance and bad debts, the Chinese market contributed almost no profit. With these bad debts resolved and new customer contributions in the first quarter, profits in the Chinese market are expected to potentially double. |
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