Swax_Projection

The situation that SWAX is facing now is demand over supply, which has limited the total revenue and profit. Fixed capacity now has been improved to 75 in Q5, SWAX assume that all the products produced can be sold out, therefore, the total revenue will be 3 times more than Q4, which is around 12 million. Due to the increment of production, the cost per unit will be decreased, the prediction of production cost will be 4 million. R&D investments will cost SWAX 3 million and another 3 million will be spent on fixed capacity expansion. Therefore, SWAX’s cash balance will be around 2.6 million. In Q6, the fixed capacity will be 225, assuming SWAX remain the good market performance, the total revenue will be more than 30 million. R&D investment will cost over 8.5 million in order to support the production for ‘Mercedes’. And SWAX will invest in improvement of fix capacity for another 3 million. After deduct other expenses, the cash balance in the beginning of Q7 will be around 2 million. In Q7, ‘Mercedes’ will be SWAX new product, and it will be a huge increase in revenue. From SWAX’s prediction, the total revenue will be more than 55 million, and there will be only two investment activities, changeover improvement and fixed capacity expansion (another 3 million). After subtract the production cost and other expenses, the cash balance will be more than 15 million. According to these predictions, SWAX’s total assets in Q5 will be more than 7.2 million. And in Q6, the total assets will be increased to 21 million. And in Q7, the total assets could be over 50 million.