Chun Yu held a conference on September 20, where General Manager Zhou said this year is when Taiwan fastener industry encounters such a prolonged downturn for the first time. He said that Chun Yu's business may encounter recession, but that's as worst as it can get. Next year will turn out better than this year. Customers' stockpile is going down, so there is a chance of minor recovery for Chun Yu next year. The European and U.S. market demand dropped, and in the first 7 months of 2023, Taiwan's fastener export weight declined. However, in early August there has been a slight growth. The market next year will not be worse than 2023.
In H1 2023, Chun Yu's revenue declined mainly due to the poor market demand, but recently the revenue and incoming orders have begun to stabilize. Indonesia is less affected by the recession, and with the continuous launch of local infrastructure projects, the outlook for the second half of the year is expected to be promising. Chun Yu's Indonesian plant has been always a strong financial momentum for Chun Yu's overseas investment,. Zhou pointed out that Indonesia will become a market of greater opportunities for Chun Yu. The Indonesia plant will receive new investments backed by related expenditure in the future.