 2015-11-25 |
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After adjusting its strategies for handling bad debts and operations in China, Xinzhu Global (3171) is poised to boost its profitability. Chairman Jiang Wenrong stated that next year, Xinzhu will focus on developing the previously overlooked Hualien and Taitung regions in Taiwan. In China, the company plans to revise its business strategies, targeting major, high-profile clients, and will expand to new locations in Guangdong and Shandong. The company has already received significant orders from major clients in the wire and optoelectronics sectors, with shipments expected to begin in the first quarter of next year, enhancing operational momentum.
Xinzhu previously focused on expanding distribution channels in China to find customers. However, due to varying customer sizes and increased bad debt risks, the company has decided to target large, high-profile clients instead. In Taiwan, Xinzhu plans to increase added value and the proportion of processed products. For the first three quarters of the year, the company reported a profit of NT$0.75 billion, with EPS of NT$1.27 and a net asset value of NT$10.31 per share, successfully restoring its credit trading qualifications.
Jiang Wenrong noted that this year, the Chinese market’s performance has been hampered by inventory write-offs and bad debts, resulting in minimal profit contribution. In contrast, the Taiwan market's profit contribution is estimated to be around NT$1.50 per share. The short-term goal is to focus on growth in China, while the five-year goal is to achieve a balanced revenue contribution of 50% each from China and Taiwan. |
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