Summary of Conference Call for Slinco Co., Ltd. and Ningbo Yinqiu Technology Company and Industry Overview - **Company**: Slinco Co., Ltd. (斯菱股份) - **Industry**: Precision Bearings and Robotics - **Key Partner**: Ningbo Yinqiu Technology (宁波银球科技) Key Points and Arguments Investment in Ningbo Yinqiu Technology - Slinco invested 392 million CNY to acquire 24.34% of Ningbo Yinqiu Technology, recognizing its leading position in precision bearings, particularly in micro and motor bearings [3][9] - Ningbo Yinqiu holds a 50% market share in the air conditioning motor bearing sector, with major clients including Gree and Midea, secured through supply contracts [2][3][7] Product Development and Market Position - Ningbo Yinqiu has made significant advancements in robotics, developing micro bearings for actuators and motors, with a strong demand for humanoid robots [2][5] - The company is the sole supplier of high-speed integrated bearings to Dyson, benefiting from patent protection and a dominant market position despite smaller domestic competitors [2][6] Strategic Direction and Synergies - Slinco aims to leverage its mechanical manufacturing background to create synergies with Ningbo Yinqiu, expanding its business footprint through resource sharing [2][9] - The company plans to gradually integrate resources with Ningbo Yinqiu to enhance operational efficiency [9] Production and Capacity Planning - Slinco's harmonic reducers have been validated by major North American clients, with mass production expected to start in Q1 2026 [4][12] - The company has established factories in Thailand and near Detroit, USA, to meet potential non-China production demands from clients like Tesla [4][14] Financial Projections - Ningbo Yinqiu is projected to achieve a profit of 145 million CNY and sales of 1.17 billion CNY in 2024, with stable growth expected through 2026 [4][18] - Slinco anticipates its robotics business revenue to reach tens of millions CNY in 2025-2026, contingent on market demand [4][17] Challenges and Competitive Landscape - The production of high-speed micro bearings faces challenges in consistency, longevity, and noise reduction, with key players including Minebea in the global market [8] - Slinco faces competition from various domestic manufacturers in harmonic reducers but has not encountered significant new entrants in the overseas market [11][20] Future Developments - Slinco plans to expand its precision component offerings, including cross roller bearings, in response to customer demand [15] - The company is preparing for increased production capacity, with plans for 300,000 sets of harmonic reducers by the end of the year [22] Customer Feedback and Market Trends - North American clients have provided positive feedback on Slinco's harmonic reducers, confirming its status as a qualified supplier for mass production [19] - The trend in reducer selection among domestic clients is shifting towards harmonic reducers, with planetary reducers also being utilized but less frequently [10] Additional Important Insights - Ningbo Yinqiu's dominance in the air conditioning motor bearing market is attributed to its high production capacity of 75 million sets per month, making it the largest single-category manufacturer globally [7] - The company’s micro bearings are critical for humanoid robots, with each robot requiring over 100 such components, highlighting the precision and durability required in this sector [5]