 2015-11-25 |
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Xinzhu Global (3171) is actively changing its strategy for the Chinese market to increase its share and enhance profitability. Chairman Jiang Wenrong stated in an interview today that Xinzhu will enter a phase of rapid expansion in China next year, significantly increasing its profit contribution from the region. The company aims to focus on the optoelectronics industry and expects to scale up its shipments next year.
Jiang Wenrong noted that this year, Xinzhu’s profitability in China was impacted by inventory clearance actions, leading to potential losses of 1 to 2 million RMB. Looking ahead to next year, Jiang is optimistic about the company's performance, stating that without internal disruptions, Xinzhu can expect substantial growth in both revenue and profitability, potentially increasing by 20-30%. However, he emphasized that the primary focus remains on profitability.
Currently, Xinzhu's profit contribution from Taiwan versus China is approximately 8:2 due to the weak market conditions in China this year. Next year, the company hopes to adjust this ratio to 6:4. Xinzhu plans to acquire new customers while also increasing contributions from existing ones, aiming to build a more stable operational structure.
Jiang emphasized that Xinzhu’s market strategy in China will leverage targeted customer marketing to mitigate market risks and reduce bad debt rates. The company is also focusing on market trends, actively entering the optoelectronics sector, and is in the certification process. The goal is to significantly increase shipments next year, contributing positively to profitability and gross margin.
YC (4306), Xinzhu’s parent company, currently holds approximately 65% of Xinzhu’s shares. |
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