On October 25th, Caixin reporter Lu Tingting reported that the once high-flying stock dongguan chitwing technology (002855.SZ) failed to reverse its performance decline when releasing its third-quarter report today. The company's net income has been in losses for multiple consecutive quarters, and the losses in the third quarter of this year have widened compared to the same period last year.

According to the financial report, dongguan chitwing technology achieved revenue of 0.983 billion yuan in the first three quarters, a decrease of 28.75% year-on-year; the net income attributable to the parent company was -0.177 billion yuan, compared to -53.6033 million yuan in the same period last year. In Q3, revenue was 0.426 billion yuan, a 1.46% decrease year-on-year; the net loss was 50.1045 million yuan, compared to a net loss of 6.7148 million yuan in the same period last year, experiencing consecutive and widening losses.

dongguan chitwing technology did not explain the specific reasons for the losses in the third-quarter report, but for the decrease of 57.26% in cash / money market funds since the beginning of the year, a 40.05% decrease in purchases of commodities and cash paid for services from the same period last year, and a decrease of 25.4388 million yuan in receivables financing since the beginning of the year, the company attributed these changes to 'revenue fluctuations'.

dongguan chitwing technology is a professional precision structural component manufacturing enterprise in the domestic mobile phone structure components industry with a large production and revenue scale. Its main products include precision molds, precision structural components, and hardware components with high appearance requirements, such as precision structural components for products including but not limited to smart phones and smart watches.

In 2023, due to involvement in the 'huawei concept' (the proportion of related income from Huawei in 2022 and the first half of 2023 was less than 4%), dongguan chitwing technology's stock price surged more than fourfold in just one month. As of today's closing, the company's stock price closed at 22.80 yuan/share, a drop of over 56% from the high of 52.36 yuan/share.

However, the company's performance over the past three years has been far from optimistic, with revenue decreasing from 3.092 billion yuan in 2021 to 1.767 billion yuan in 2023; the net income attributable to the parent company for the years 2021 to 2023 was -0.245 billion yuan, -0.126 billion yuan, and -0.119 billion yuan respectively, marking three consecutive years of losses.

dongguan chitwing technology has also attempted to adjust its business strategy by aggressively expanding into non-mobile phone precision structural component business areas such as smart home, smart clothing, and tablet computers, as well as developing new energy business, in an effort to improve its operating situation, but results seem minimal.

Dongguan Chitwing Technology had previously signed the "New Energy Project Strategic Cooperation Framework Agreement" with China Energy Construction New Energy, and its subsidiary intends to sign a leasing contract for the construction of its distributed photovoltaic power generation project, but as of the first half of the year, no new energy business revenue has been generated.

Dongguan Chitwing Technology stated in this year's semi-annual report that due to significant investment in new energy business and continuous adjustments in industry-related policies, the company has been continuously optimizing its technology, products, projects, and business models, prudently developing new energy business.

For questions regarding the reasons for the third-quarter net profit loss and whether the new energy business has contributed to performance so far, Caixin reporter has sent interview outlines to Dongguan Chitwing Technology, but has not received a response as of the time of publication.