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  • News of Wingtech

    Where there is dream,there is future —— New Year& #39;s Address by WINGTECH Chairman in 2019

    2019-02-04

    Dear all,


    The pace of time never stops, and we are standing at a good moment to say goodbye to the old and welcome the new. Time flies fast and we don’t even have enough time to sum up. Review 2018, there are so many domestic and international issues happened in the industry. Various factors such as trade disputes,exchange rate fluctuation, capital market deleveraging and industry market adjustment have led to the frequent occurrence of black swans. Suddenly, our familiar plans and expectations were broken and we have to face an uncertain era.


    2018 is an impressive and significant year. Many things have happened in this year. WINGTECH is mainly reflected in two aspects. One is the ODM business, the other is the acquisition of Nexperia Semiconductor business.


    As far as the main business of WINGTECH is concerned, in 2018, competition in mobile phone industry intensified, brand concentration increased, brands became fewer and fewer, and sales of each machine increased, which resulted in deficient resources to satisfy the needs of everyone. Pressure on ODM supply chain.


    Increasing the number of clients: Facing such challenges, WINGTECH choose to take the initiative to make adjustments, we invest lots of resources to develop new clients, especially international clients. As we knew, WINGTECH has been using domestic supply chain to serve domestic clients for the past 12 years. Together with supply chain partners, WINGTECH has the privilege of serving domestic brand clients and along with many domestic brands to become an international first-class brand. Facing trade war, we have begun to develop international clients, only in this way can we survive in the new situation. Under this strategic policy, we have invested tremendous resources to develop new clients. Fortunately, our efforts have been recognized by clients. Our business began to reverse under the new clients' support. Revenue of 3rd quarter exceeded 5.58 billion yuan, exceeding the total revenue in 1H it created the highest revenue in a single quarter. Revenue of the 4th quarter refreshed the highest record again, making the revenue of the second half year and the whole year's a new record, and lay a solid foundation for the future performance.


    Increasing product types: From the business perspective, we used to rely on mobile ODM business, rarely involved in other product areas. As known, for ODM, clients are pipelines; In the past, mobile phones were the only pipeline, if we increase other product types, profits and cooperation will be increased and risks will be reduced. In 2018, WINGTECH began to make layout in the fields of smart hardware, automotive electronics and notebook computers. At the same time, new products such as smart speakers, translators, smart C-Car and new generation ARM Windows notebook computers were well accepted in the market, which laid a solid foundation for the company's multi-product strategy and proved that these products have great potential in the market.


    Increase investment on R&D: WINGTECH always regards R&D and innovation as the foundation of the company's life. In the early days, we put innovation in the first place; over the past 12 years, we have been increasing R&D investment year by year, and introduced innovative products to the market, so that consumers can enjoy the innovation and convenience brought by science and technology. In 2018, we submitted dozens of patents related to folding screen mobile phones. Before the great revolution of 5G , WINGTECH took the lead in the research and development of 5G products. As strategic partner of Qualcomm in ODM and a key partner of 5G Alpha Plan, WINGTECH invested huge resources in 5G research and development in 2018 to ensure that 5G intelligent terminal products based on Qualcomm Snapdragon 855 chip platform can be released globally in 2019.


    Facing the changes, we adjusted actively and responded bravely. Although we paid a huge price and even suffered a big loss in the first two quarters, we still implemented the strategic adjustment; the effect of the adjustments began to show in the third quarter. We achieved rapid growth in the third quarter, and continued to maintain a rapid growth in the fourth quarter. As our performance noticed in advance, we achieved profitability in this year.


    At a listed company, the most important work in 2018 is the acquisition of Nexperia, which is another industry transformation of WINGTECH after it transformed from IDH to ODM. Through the acquisition to establish the technical core fortress and improves the innovation ability of the industry. Nexperia, formerly a standard business department of NXP, Netherlands, which is the world's leading manufacturer of standard semiconductor products with a global market share of 13.4% and an annual production of 100 billion chips. In 2018, the cooperation negotiations have been initially completed. With the strong support from strategic investors, intermediaries and relevant departments, the whole major asset reorganization is progressing orderly. We are confident that the reorganization of this project will be successfully completed in 2019.


    2019 will be an extraordinary year for WINGTECH. The competition in the future will be more cruel and fierce. We should make adequate preparations:


    Enriching product lines, increasing R&D investment and broadening the top. The next 5-10 years will be the golden period for the development of 5G and AI. WINGTECH will not only launch 5G products in China, but also in North America. In addition to mobile terminals, automotive electronics, communication/IoT modules, notebook computers are also of billions market level. WINGTECH has already had a initiatory product layout and technology accumulation. In 2019, we will do a solid job on products, clients and markets, and grow steadily in these areas. 


    Globalization, localization strategy and internationalization is the only way for WINGTECH's global development. Faced with the increasingly complex international environment, only internationalization can minimize the risks brought by trade war and regional imbalances. WINGTECH’s future is globalization, and globalization depends on localization.


    WINGTECH will accelerating the acquisition of Nexperia. In 2019, we will complete the acquisition of Nexperia and begin to enter the 100 billion-grade production fast lane.


    WINGTECH's achievement today is the result of hard work from staff . We are very glad that we have survived and talking about our dreams and future. I always believe that as long as our dream is to promote the industry and drive the world to the right path, there will be countless supporters for us !


    Finally, on behalf of all the management of WINGTECH, I wish you and your family a happy, healthy New Year.




    Wing

    Chairman of WINGTECH 

    2019.02.04













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