Summary of Key Points from the Conference Call Company Overview - **Company**: 易实精密 (Yishi Precision) - **Year**: 2025 Core Industry and Company Insights - **Industry**: Automotive parts and precision metal processing - **Key Actions**: - Focus on both organic growth and external mergers and acquisitions to strengthen sales foundation [2][4] - First acquisition in the automotive parts sector to expand process technology [2][4] - Establishment of a joint venture in Slovenia with a total investment not exceeding €10 million, aimed at enhancing international competitiveness [2][6][13] Strategic Initiatives - **Acquisition**: Successfully acquired 通义合公司 (Tongyihe Company) to extend capabilities in the metal parts sector, integrating design, processing, and assembly services [4][10] - **Overseas Expansion**: - Slovenia chosen for its strategic advantages, including proximity to Austria and a skilled workforce [16] - Plans to enter the Indian market for machining and stamping operations, leveraging local partnerships [15][19] - U.S. market strategy led by Austrian partner Mark, avoiding Mexico due to instability [17] Technological Advancements - **High-Speed Stamping and Bending**: Utilizes Biller equipment, holding a significant market share domestically, and gradually expanding into Europe [7][8] - **Precision Stamping**: Differentiates from traditional stamping by handling thicker materials and achieving higher precision [9] Market Dynamics - **Metal Parts Industry Potential**: Recognized as essential across various sectors including automotive, robotics, and aerospace, with a focus on diversifying processing techniques [11] - **Emerging Industries**: Interest in humanoid robotics and semiconductor sectors, with ongoing research and development efforts [21][22] Financial and Operational Performance - **Production Capacity**: Expected to reach full production capacity by the end of 2025, with significant investments in new machinery [32][33] - **Client Base**: Major clients include Volkswagen and Bosch, with expectations of increased collaboration and project volume [36][37] Future Outlook - **Strategic Focus for 2025**: Emphasis on consolidating the precision metal processing sector, expanding product categories, and enhancing global competitiveness through both organic and external growth strategies [40] - **Investment Plans**: Potential investments in South Carolina or North Carolina, with a focus on local customer bases [18] Additional Considerations - **Surface Treatment Business**: New surface treatment facility established to improve quality control and cost efficiency [35] - **Technological Barriers**: Focus on maintaining competitive advantages through innovation and technology development in high-barrier sectors [24]