 2015-11-26 |
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Xinzhu Global (3171), a subsidiary of YC Group, has announced that it has received significant orders from major clients in China's wire and optoelectronics industries. Shipments for these orders are expected to begin in the first quarter of next year, which is anticipated to significantly boost both revenue and profitability.
Chairman Jiang Wenrong noted that this year, the company's performance in the Chinese market has been affected by inventory write-offs and bad debts, resulting in almost no profit contribution. However, sales in the Taiwan market have remained stable. The company's short-term goal is to focus on growth in the Chinese market. Currently, the revenue ratio between China and Taiwan is three to seven, but it is expected to equalize over the next year, highlighting the rapid growth of the Chinese market.
Regarding profitability, Xinzhu aims for a balanced contribution of 50% from each region within five years. On November 25, Xinzhu's stock price increased by NT$0.45, closing at NT$21.40.
Previously, Xinzhu's strategy in the Chinese market focused on expanding distribution channels to find customers. However, due to the varying sizes of customer businesses and an increase in bad debt risks, the company has decided to target major, high-profile clients. Although this shift might result in a slower growth rate in revenue, it has led to a substantial increase in profitability. |
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