Lens(SZ:300433)2018-04-10 00:04Financial Performance - The company expects a net profit attributable to shareholders of approximately 88.23 million to 110.29 million CNY for Q1 2018, representing a decline of 50% to 60% compared to the same period last year, where the profit was 220.58 million CNY[3]. - Non-recurring gains and losses are estimated to impact the net profit by approximately 84.61 million CNY during the reporting period[8]. - The financial data in the earnings forecast has not been audited by registered accountants[4]. - The specific financial data will be disclosed in the company's Q1 2018 report on April 27, 2018[9]. Market Conditions - The smartphone shipment in China decreased by 27% year-on-year during January to March 2018, indicating a weak overall demand in the consumer electronics market[5]. - The company faced challenges due to a significant appreciation of the RMB against the USD, which eroded some profits[7]. Operational Challenges - Increased costs related to fixed asset depreciation and employee wages were noted due to rapid company expansion and a rise in frontline production staff[7]. - The company has made substantial investments in R&D for new products, technologies, and processes, preparing for a market shift from weak to strong demand[7]. Future Outlook - New product launches by major domestic brands like Huawei, OPPO, VIVO, and Xiaomi have created significant demand for the company's products, although the contribution to Q1 performance was limited due to late mass production[7]. - The company anticipates a significant improvement in operating performance in the first half of the year as new product yields improve and the consumer electronics industry enters a peak season[7].