We believe that Corson's current growth inflection point is clear, firmly optimistic about the company's growth space. The offline office of the epidemic drives the demand for laptops and tablets, and the company's Q1 is still profitable under the influence of the epidemic in 2020, and its 2020Q2 performance is expected to continue to exceed expectations as it gradually climbs downhill with production capacity in the second quarter. For the whole year, after exceeding the break-even point, the profit margin climbs and the profitability improves with strong certainty.
Looking back at the history-the company's "domestic and foreign difficulties" in the past few years, the decline in capacity utilization is a drag on performance: on the one hand, after listing, the company invested substantial capital expenditure to expand production capacity, the new fixed assets reached 5.9 and 710 million in 2017-2018, depreciation increased in 2018-2019, and the rate of management expenses increased significantly. At the same time, the past few years coincided with the slowdown in the growth of the 3C industry, the increase in the proportion of non-metallic materials, and the substantial intensive production of metal processing capacity in the industry. With the superposition of internal and external factors, the growth rate of the company's fixed asset investment is higher than the income growth rate, and the decline in capacity utilization is a drag on the performance; at the same time, the company deducted 50.38 million of the inventory impairment in 19 years, clearing the burden.
Good quality-medical devices start to verify their strength, bind to the development and growth of major customers in North America, and continue to grow into laptops: Corson has trial-produced minimally invasive surgical instrument structure products for Kehui under Medtronic PLC since 2008. At present, it is one of Medtronic PLC's seven strategic suppliers in the world. In 2013, the company entered the supply chain of Company A through Jepp, and gradually gained recognition, gradually increasing and growing in the category of products involved in Company A. According to the 2019 annual report, the company entered the domestic notebook computer major customer supply system in 2019, and the growth space is expected to be further opened in the future.
Downstream multi-point flowering, online epidemic pull notebook demand, the company fully benefited: with the development of Corson customers and multi-category development, the company's performance inflection point signal is clear in 2020. On the mobile phone side, the pre-sale of A's new mobile phone is better than expected, and 2020 will still be a deterministic year for Company A. in addition, the offline office demand of the epidemic will drive the sales of laptops and tablet computers, and the laptop business is expected to exceed expectations and contribute pure increment. The company benefits with strong certainty.
The new management is in place and the equity incentive is on the ground, demonstrating the company's confidence in change: at the end of 2019, the new management is in place, and the new general manager is from Herbie International, a supplier of Apple Inc. At the same time, the company's equity incentive landed in the first quarter, and the core management and technical personnel were in place. The company's operation and management capacity and market development are expected to accelerate, and the inflection point of profit margin is highly deterministic. Throughout the year, we believe that the company's revenue inflection point is clear, at the same time, the improvement of capacity utilization and the improvement of management level lead to strong certainty of profit margin repair.
Risk tips: downstream demand fluctuation risk; company performance risk that fluctuates with the upgrading of downstream products; customer concentration risk; trade war and other risks affecting the global layout of the industry chain 3