Summary of the Conference Call for 易实精密 Company Overview - **Company**: 易实精密 (Yishi Precision) - **Acquisition**: Acquired 51% stake in 无锡通益和 (Wuxi Tongyihe) to enter the precision stamping field [2][4] Key Points and Arguments Financial Performance - **Profit Margins**: - Tongyihe's mold gross margin is approximately 40% - Precision stamping product gross margin is around 30% - **Net Profit Projections**: - Expected net profit for 2024 is 23 million RMB - Expected net profit for 2025 is 28 million RMB [2][14] Strategic Partnerships and Expansion - **Global Factory**: - A factory in Slovenia established with an Austrian partner, expected to start production in September 2025, focusing on traditional fuel vehicle parts [2][5] - **New Ventures**: - Established 马克表面处理科技有限公司 (Mark Surface Treatment Technology Co., Ltd.) to enhance supply chain and reduce costs [2][8] Technology and Product Development - **Precision Stamping Technology**: - Precision stamping allows for high-precision processing of materials between 4mm to 12mm thick, with production speed and cost advantages [6][22] - **Robotics Connector Development**: - Expansion into humanoid robot connectors, with Tyco as a key partner, expected to generate sales in 2025 [17][26] Market Demand and Customer Base - **Customer Relationships**: - Existing customers like Bosch and Continental show strong demand for products, facilitating mutual business empowerment post-acquisition [2][12] - **New Orders**: - Tongyihe has secured new projects with major clients like Mercedes-Benz, expected to contribute 18 million RMB in 2025 [14][30] Production Capacity and Future Growth - **Production Capacity**: - The wood project completed construction acceptance in October 2023, with production expected to ramp up in the second half of 2024 [23] - **Revenue Growth Targets**: - Overall revenue and profit are projected to grow by 18% to 20% in 2025 compared to 2024 [23][24] Acquisition Details - **Acquisition Progress**: - Due diligence and audits for the acquisition of Tongyihe are expected to be completed by July 2025, with a potential completion date for the acquisition by August 2025 [4][36] - **Strategic Rationale**: - The acquisition is aimed at leveraging existing customer relationships and enhancing product offerings through shared technology and capabilities [11][12] Additional Important Information - **Market Position**: - Precision stamping technology has high market entry barriers, with limited global suppliers [7] - **Financial Health**: - The company maintains a strong order visibility, with some orders extending up to three years, aiding in operational stability [35] - **Product Line Contributions**: - The suspension product line is expected to contribute the most to revenue growth in 2025, driven by new customer orders [29] This summary encapsulates the key insights from the conference call, highlighting the strategic direction, financial outlook, and operational developments of 易实精密.