Core Technology News (text/Li Taihong), the acoustic component factory Kangkong was hit by the poor sales of mobile phone customer products in 2018. In the fourth quarter, the single-quarter revenue decreased by 33%, which also made the original financial forecast inaccurate and inapplicable. Looking forward to 2019, Kangkong said that the automotive products that have been deployed for a long time will start to contribute significantly to revenue in the second half of the year, and the annual revenue is still moving in the direction of positive growth.
Kangkong held a financial report meeting on the 3rd, and also explained that the financial report for the fourth quarter of last year was not as good as the market expected. Kangkong said frankly that the main reason is that the sales of customers are not good, and the revenue and profit are affected. Fortunately, the gross profit margin is still at a certain level.
Kangkong also revealed that in the fourth quarter of last year, the production capacity was fully loaded before the first half of November, but there was no start-up of production since December, and they were all destocking until the Lunar New Year, so they restarted production after the New Year. , The inventory is almost gone.
Regarding the order status of mobile phone customers this year, Kangkong said that the order is still under negotiation, and the price has not changed much. Although the customer has requested a price reduction, the margin should still be able to maintain a certain gross profit. In principle, the price that the customer wants , the company will take into account the interests of shareholders; as for the quantity part, it is estimated that it will not be clear until April or May.
As for the progress of automotive products, Kangkong is optimistic. The main products include sensor components, steering gear, modules, etc., which are related to the company’s core technologies, such as plastic stamping, silicone, injection, etc., which will start this year There will be good growth, and it should be able to slightly dilute the gap between the off-season and peak season in previous years. In principle, the proportion of revenue in the second half of the year will increase, and it will continue to grow next year.
In addition, in the part of the car lens, Kangkong did not deny that the previous product had some problems, so it re-prototyped to the customer, and it is expected to be shipped in the second quarter. The car lighting should also be shipped in the second half of the year. Ship to land-based car factory customers. (proofreading/group)