Delta Electronics held a legal briefing. Haidian Haidian, chairman of Delta Electronics, said that the second quarter will be a little better than the first quarter. The gross margin may have the opportunity to return to the past 27% to 28%.
Looking forward to the second quarter, Zheng Ping said that the first quarter of the operation was not as expected due to the poor product mix, while another 1% was the impact of rising raw material costs. The performance of PC and mobile-related products was relatively weak. In the second quarter, handsets are expected to be weak. Other product lines grow steadily.
Zheng Ping said Delta Electronics is very stable in the automation business, slowly building on its own brands, and maintaining growth at 15% per year. In the process part, under the automation efforts, labor costs are controlled, and the cost rate estimate can be controlled at 7.5. % is quite standard.
In response to the slowdown in growth momentum of the Group, Zheng Ping stated that Delta’s past strong growth in the PC industry has seen rapid growth in its operations. However, it has not been able to reach the smartphones for a long period of time. The entire group has only Kun’s participation and face the future. Including Internet of Things IOT, intelligent and electric vehicles and other megatrend industries, Delta Electronics has done a good job layout.
Concerning the market’s concern about the impact of ZTE’s ban on US sales and Huawei's follow-up investigations, Hai Handsome stated that the ZTE incident has occurred, and Delta’s actual understanding of the impact is very small. Due to poor payment terms, Delta’s electricity exchanges are less; and Huawei’s The order was bigger, but it wasn't that big. It was mainly to supply Huawei communications room fans.