The stock price of hanvon soared for a period of time after Listed on the market, which broke down the forecast of fund managers, and contrary to the prediction of many investors. At that time Hanvon facing a unique opportunity, Apple did not launch the product although with iPad development strategy, and Amazon's Kindle has not entered the domestic market, which made Hanvon to grasp the first concept of e-book reader. In fact, however, this concept has been over-spread. But now Apple has launched iPad2, Performance of Hanvon began to fall, stock prices began to fall, the market correction began their journey.
with the news release of Apple iPad tablet, hanvon suffered stock price down brought by Apple iPad2. Recently, Hanvon announced that first quarter of 2011, estimated net loss of 4000-5000 million yuan compared with profit of 41.8745 million yuan a year earlier. Hanvon listed the reasons as follows: firstly, E-book industry, influenced by the iPad tablet PCs and other related products, the company's sales and prices of electric paper products decreased, Secondly, in the reporting period , the increasing of company payroll and R&D cost resulted in a larger increase in management fees. After the announcement, stock prices began to fall more than 10% last week.
E-book is the core technology products of hanvon with sales revenue of 930 million yuan in 2010 , summed up to 75.22% of total revenue and gross profit margin of only 36.99%,which decreased 9.9% over 2009, in domestic market share from 95% in 2009 to 70%. In fact, besides Apple's iPad competition in the electricity paper books, Hanvon is also facing a lot of competitors such as Bambook, OPPO, Patriot, Teclast and other brand.
Chairman Liu Yingjian of Hanvon Technology said, it would be hard to do bookstore business, but sometimes it can not do a good job desperately.