Of the main costs of ODM manufacturers, which essentially determines that this is an industry with small profits but quick turnover. No matter how strong the management capabilities are, if the downstream industry is in recession or the upstream raw materials prices increase, the only thing left is to grit the teeth and persevere.
In order to find new growth space, Wingtech has expanded its OEM business into laptop computers, automotive electronics, home appliances and other products. In order to quickly increase sales, the expansion of these lowprofit, highinvestment R&D new projects is actually a drag on profits.
Moreover, as lowend manufacturing begins to shift to Southeast Asia, mobile morocco phone number list phone manufacturers have also begun to integrate their supply chains in emerging markets, where labor costs are relatively more advantageous.
Relying on the support of the semiconductor business, although the company's cash flow outflows were . billion yuan and . billion yuan in and respectively, the cash and financial assets on the company's account are still no less than billion yuan.
It's not as serious as saying that he had to cut off his arm to survive.
But Wingtech may no longer be able to turn a difficult business from loss to profit in just one or two years.
More importantly, the presale product integration business accounted for . of Wingtech's revenue, but its profit contribution was negative, which was a real drag on the company's overall valuation.