On January 29, Dongshan Precision (002384) announced its performance forecast for 2017. The company reported that its net profit attributable to shareholders of listed companies is expected to range between 51.19 million and 55.52 million yuan, representing a year-on-year increase of 255% to 285%. This significant growth highlights the company's strong performance in the previous year.
Despite this impressive growth, the actual results fell slightly short of the earlier performance expectations. According to the company, two main factors contributed to this deviation: first, delays in business operations and product deliveries during the fourth quarter of 2017, and second, increased costs due to the initiation of new projects. These challenges impacted the overall profitability of the company during the reporting period.
Dongshan Precision operates in two key sectors: precision metal manufacturing and precision electronics manufacturing. Its metal manufacturing segment includes precision sheet metal, casting products, and integrated solutions, primarily serving industries such as mobile communications and automotive. The electronics division focuses on LED devices, touch modules, FPC products, and other components used in consumer electronics and new energy vehicles.
Over the years, the company has developed an integrated structure covering R&D, design, production, and sales. It has also built a strong portfolio of core products, including base station antennas, filters, LED packages, LCMs, TP, and FPC. These strategic developments have significantly strengthened the company’s competitive edge in the market.
Meanwhile, Netac Intelligence also released its performance forecast for 2017, expecting a net profit increase of 1% to 15% year-on-year. The company projected net profit for the year to be between 770 million and 881 million yuan. This growth is attributed to improved operational efficiency, increased R&D investment, and better product optimization. However, rising operating and management costs somewhat offset the gains.
In contrast, Tongfang Co., Ltd. reported a sharp decline in net profit for 2017. The company estimated that its net profit would decrease by between 3.652 billion and 3.952 billion yuan, reflecting a year-on-year drop of 85% to 92%. According to the report, the primary reason for the decline was the recognition of non-recurring income from the disposal of certain equity stakes in Ziguang Guoxin and Longjiang Environmental Group. However, these asset disposals did not occur in 2017, leading to a one-time impact on the financial results.
Tongfang’s business spans various fields, including commercial and consumer electronics, CNKI knowledge data products, security inspection equipment, military systems, industrial and building energy conservation, smart city solutions, and lighting products. The company continues to diversify its operations across multiple industries.
Overall, the performance updates from these three companies highlight the varying trends in the Chinese market, with some firms experiencing strong growth while others face challenges due to shifting business conditions and strategic decisions.
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