(Yicai Global) April 26 -- Shares of Universal Scientific Industrial plunged to a nine-month low after the Chinese designer and manufacturer of electronic products reported an annual drop in First-quarter profit and revenue.

USI [SHA: 601231] ended nearly 10 percent down in Shanghai today at CNY14.46 (USD2.09) a share, the lowest closing price since July 14, 2022.

Net profit shrank 37 percent to CNY277 million (USD40 million) in the three months ended March 31 from a year earlier, mainly because of lower revenue and asset and credit impairment provisions, the Shanghai-based firm announced late yesterday. Revenue fell 6.9 percent to CNY13 billion (USD1.9 billion).

USI has six categories of electronic products. Only the automotive electronics and industrial electronics businesses achieved year-on-year growth in the first quarter.

Its auto electronics business was the best performer, with revenue rising 30 percent. The worst was the communication electronics business, which accounts for the highest share of the total, with a 17.5 percent decline. Revenue from cloud and storage products, consumer electronics, and medical electronics also fell by various degrees.

Last year, USI’s net profit soared nearly 65 percent to CNY3.1 billion (USD448 million), and its revenue jumped 24 percent to CNY68.5 billion from the year before.

The firm expects second-quarter revenue to grow by as much as 10 percent on the first quarter, it added in yesterday’s earnings report.

USI designs, makes, and miniaturizes industrial hardware and software solutions and provides material procurement, logistics, and maintenance services for well-known brands, according to its website. The company has production plants in 10 countries and regions worldwide to provide customers with personalized solutions.

In another statement released yesterday, USI said it plans to invest USD67.5 million to build a second plant in Tonala, Mexico. The firm has bought the land and signed a building contract.

The new plant can enable USI to better meet the needs of customers in North America and enhance its operating scale and productivity in the region, the firm noted, without providing any further details.

Editor: Futura Costaglione