GoerTek(SZ:002241)2023-04-21 12:12Group 1: Financial Performance - In Q1 2023, the company reported revenue exceeding 20 billion, but net profit declined due to weak demand in the consumer electronics sector and increased manufacturing costs [1] - The decline in profitability was attributed to lower order volumes for high-margin components and products, leading to reduced capacity utilization and erosion of gross margins [1] - Despite growth in gaming console revenue, it was insufficient to offset the decline in profitability from other projects, resulting in a situation of "increased revenue without increased profit" [1] Group 2: Market Conditions and Challenges - The global macroeconomic environment remains under pressure, impacting demand in the consumer electronics industry [1] - The significant appreciation of the RMB at the beginning of 2023 and the continued suspension of production for certain projects from Q4 2022 further affected Q1 performance [1] Group 3: Strategic Initiatives - The company is committed to enhancing business expansion and operational efficiency to restore profitability in the future [3] - Ongoing efforts in the VR/AR sector are aimed at solidifying core competitiveness, with no current plans to enter brand business [3] - The company is actively exploring opportunities in emerging smart hardware sectors, including VR, AR, and smart home devices [7] Group 4: Investor Relations and Communication - The company emphasizes fair treatment of all investors, particularly small investors, and is committed to maintaining long-term stable development [3] - There are ongoing discussions regarding the impact of major client order fluctuations and the company's response strategies [5] - The company plans to continue its investor communication activities to ensure transparency and address concerns regarding stock price volatility [6]