The view of management manager

During yesterday's teleconference proceedings, management shared with us the performance of the conference and its views on future development. The key points are as follows:

Statistics for the year 2016: the overall business of the management department is flat in the year 2016, and the situation of each branch is as follows:

Communication products: a high number of units is expected to decline, mainly due to the decline in wired telephone traffic, which recorded a decline of about 8% to 10%. However, the number of business calls increased.

Electronics products: there is expected to be a decline in the number of units, mainly due to the external effect of falling yuan and pound.

Contract production services: single-digit to multi-digit growth is expected, mainly due to the growth of North America and Asia, as well as the existing demand for customers and new customers.

Combined with the above, it is estimated that the gross profit margin will be flat this year, but the gross profit margin will be dragged down by the external effect of falling yen and pound.

Strategies for the future of related business:

Despite the stifling growth caused by the drag of foreign companies in 2016, there have been short-term exchanges for foreign workers for three to six months, and they have not made longer-term exchanges like airlines. I just hope that they can continue to concentrate on doing a good job.

As for communication products, as the market for home telephones has been predicted to decline earlier, five to six years ago, we began to increase the sales of commercial telephones and other communication products to companies, and the results were satisfactory. In the near future, we will continue to develop in this direction. It is hoped that there will be an annual growth rate of 50% to offset the retrogression in the part of home telephones.

In terms of electronics products, the market income in Guangzhou is slightly higher than that in North America, and it is expected that the market will continue to be dragged down by the decline in the yuan and the pound, and the range of medium income affected by this will be about 15%.

In addition, the production land is mainly in rural areas, while the increase in labor costs in the mainland is one of the reasons for affecting the gross profit margin. However, there are no tests on production and housing relocation, mainly because it is close to Hong Kong, which is not easy to manage, and the logistics facilities are also ideal.

Our views.

Despite the expected year 2016, stifling business growth is mainly due to external drag, that is, there should have been a good growth in business, which has already been explained in the current situation in the ball market. Of course, from now on, the time to strengthen the US dollar will continue, and it will still have a negative impact on the market economy, but if the dollar and the pound do not fall sharply, after this year has been digested, it may increase again in the coming year.

In terms of various business divisions, the contracted production service is still growing, while it is estimated that the economic environment for electrical engineering products is poor, and the parents' investment in children should not be too large, so they are not too worried. On the contrary, due to the fact that the market for home telephones has been replaced by mobile phones, it is doubtful whether the growth of commercial telephones can be sustained and that there is a retrogression in household telephones.

In any case, marketing is always healthy and dividends are stable. It is believed that some of the doubts in a branch business may not be too big for the overall impact, so they are still good candidates. However, the stock market is flat, and it is believed that the rise and fall of the stock market may not be too large. If investors want to pay higher interest rates, they will correspondingly improve their skills of entering the market at the bottom of the stock market.