Xin Technology News (Text/Li Taihong) Acoustic component manufacturer Kangkong was affected by poor sales of mobile phone customer products in 2018. In the fourth quarter, its single-quarter revenue fell 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 begin to significantly contribute to revenue in the second half of the year, and the full-year revenue is still moving in the direction of positive growth.
Kangkong held a financial report meeting on the 3rd, and also explained that last year’s fourth quarter financial report was not as good as market expectations. Kangkong admitted frankly that the main reason was poor customer sales, which also affected revenue and profits. Fortunately, the gross profit margin remained at a certain level.
Kangkong also revealed that in the fourth quarter of last year, the production capacity was at full capacity before the first half of November. However, production did not start in December and the inventory was eliminated until the Lunar New Year. Therefore, production was not restarted until after the New Year, and the inventory was almost eliminated.
Regarding the order status of mobile phone customers this year, Kangkong said that the orders are still under negotiation, and there has not been much change in terms of price. Although customers have requested price reductions, the range should still be able to maintain a certain gross profit. In principle, the company will take into account the rights and interests of shareholders for the price customers want. As for the quantity part, it is estimated that it will not be clearer until April or May.
As for the progress of automotive products, Kangkong expressed optimism that the main products include sensor components and steering gear modules, etc., which are related to the company's core technologies, such as plastic stamping, silicone injection, etc. There will be good growth starting this year, which should be able to slightly dilute the gap in the off-peak seasons of previous years. In principle, the revenue share in the second half of the year will increase, and growth will continue next year.
In addition, in terms of automotive lenses, Kangkong also admitted that the previous product had some problems, so it was re-sampled to customers and is expected to be shipped in the second quarter. Automotive lighting should also be shipped in the second half of the year, mainly to customers of Continental car manufacturers. (Proofreading/Tuantuan)
