Report Summary of Tonglian Precision Analyst Meeting 1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The company adheres to a diversified development strategy, focusing on precision manufacturing and responding to market trends. With the development of new intelligent terminal products and the release of new business orders, the company's overall profitability is expected to improve. The expansion of downstream application areas also provides long - term development impetus [23]. - The non - MIM business of the company has grown rapidly in recent years, driven by its ability to match customer customization needs, output differentiated technical solutions, and rely on multi - process collaboration capabilities [25]. 3. Summary by Relevant Catalogs 3.1. Research Basic Information - Research object: Tonglian Precision [16] - Industry: Electronic components [16] - Reception time: January 19, 2026 [16] - Reception personnel: Board Secretary Huang Rongfang, Securities Affairs Representative Tang Lei, and Securities Affairs Specialist Lü Yibo [16] 3.2. Detailed Research Institutions | Research Institution | Institution Type | Related Personnel | | --- | --- | --- | | Zhaohui Zhixing Private Fund | Others | Li Heng [17] | Dachron Capital | Others | Dong Yi [17] | Changjiang Securities | Securities Company | Wang Zihao [17] | Minsheng Jiayin Fund | Fund Management Company | Dong Shixuan [17] 3.3. Company Introduction - The company specializes in R & D, design, production, and sales of precision components. It is building a comprehensive technical solution platform for precision components, with diverse manufacturing capabilities such as MIM, high - precision wire - cutting, and high - precision CNC machining. It is also making technical reserves and capacity layout in new materials and technologies [21]. - The company's products are mainly customized and are widely used in automotive, consumer electronics, medical, and other fields. In terms of revenue sources, they are mainly used in new consumer electronics, including folding - screen phones, tablets, and smart wearables [21]. 3.4. Q&A Summary - **Future performance expectations**: Based on current business plans and the industry environment, with the development of new business and the release of scale effects, the company's profitability is expected to improve. However, future performance may be affected by various factors [23]. - **Smart glasses business**: The company's products can be used in hinges, frames, etc. of smart glasses, and can adapt to multiple processes. The company has established cooperation intentions with some well - known customers, and the mass - production rhythm depends on customer needs [23][24]. - **Capacity expansion cycle**: The company obtains production sites through self - built industrial parks, leased factories, or asset acquisitions. It generally prepares relevant production capacity two to three months before the mass production of new business, aiming to achieve "capacity landing and immediate efficiency creation" [24]. - **Growth drivers of non - MIM business**: The company can quickly match customer customization needs, output differentiated technical solutions, and rely on multi - process collaboration capabilities, which drive the rapid growth of non - MIM business [25]. - **Revenue proportion of MIM and non - MIM business**: In the first three quarters of 2025, MIM revenue accounted for about 30% of total revenue, and non - MIM revenue accounted for about 60% [25]. - **Advantages of MIM process**: Compared with other precision metal processing technologies, MIM has obvious comprehensive cost advantages for high - precision, high - complexity, and high - metal - performance precision components that require mass production [25]. - **Applicability of existing product lines to new business**: For new business products that match existing processes and production capacity, the current production lines can meet production needs. For new processes such as semi - solid die - casting and 3D printing, corresponding production capacity will be added according to customer orders and market demand [26]. - **Leading advantage of MIM process**: The leading advantage of the company's MIM process mainly comes from the differentiated process route design, which shortens the process and improves efficiency [26][27]. - **Precision components for drones**: The company provides precision components such as shaft brackets and gimbal counterweights for drones, mainly produced by the MIM process [27]. - **Stock - based payment expenses**: The stock - based payment expenses in 2025 are expected to be basically the same as in 2024. In 2026, the overall stock - based payment expenses will decrease due to the completion of the vesting period of the 2022 restricted stock incentive plan [27]. - **Overseas business and capacity deployment**: The company has established an overseas production base in Vietnam to reduce the impact of geopolitics. Some new overseas customers require overseas production and delivery capabilities, which the Vietnamese production base can meet [27][28]

Core Insights - The company Tonglian Precision has passed audits from some target customers for its factories in Changsha, Hunan, and Vietnam, and is gradually purchasing equipment based on customer needs for production [3] Group 1: Company Overview - Tonglian Precision's products are primarily used in the new consumer electronics sector, including foldable smartphones, tablets, laptops, desktop computers, smart touch capacitive pens, smart wearable devices, aerial drones, and action cameras [3][4] Group 2: Product Applications - The specific product types include: 1. Foldable smartphones: precision components related to hinges such as support parts, movable rods, positioning blocks, and axis covers [4] 2. Tablets and laptops: precision components like power support parts, volume support parts, camera brackets, and power interface components [4] 3. Smart touch capacitive pens: precision components including sleeves, plugs, long tubes, and decorative rings [4] 4. Smart wearable devices: TWS earphones and smart glasses, with components such as earphone and charging case shells, hinge mechanisms, frames, and light guide columns [4] 5. Drones: precision components like gimbal counterweights and axis brackets [4]