ZOWEE(SZ:002369)2025-03-09 13:40Summary of Conference Call Notes Company and Industry Overview - The conference call primarily discusses 卓翼科技 (Zhuoyue Technology) and its operations in the integrated machine (一体机) sector, particularly in collaboration with 华为 (Huawei) [1][5]. Key Points and Arguments 1. Current Business Situation in Integrated Machines: - 卓翼科技's business volume in the integrated machine sector is currently low, focusing mainly on communication devices like optical modems and routers. The collaboration with Huawei is primarily around these devices, with no large-scale cooperation in integrated machines yet, although 卓翼 has entered Huawei's supplier database [1]. 2. R&D Team Size: - The current R&D team consists of approximately 20 to 30 members, a reduction from over 100 previously. This reduction has created some shortcomings in front-end R&D, but卓翼's robust back-end manufacturing system remains a significant competitive advantage [2]. 3. Profitability of OEM/ODM Business: - The gross margin and net profit margin of 卓翼's OEM/ODM business align with the general conditions of the manufacturing industry. The company focuses on efficiency improvements and team collaboration to maintain competitiveness, achieving a capacity utilization and delivery capability of 90 out of 100 [3]. 4. Assembly Costs and Market Expectations: - The assembly cost for an integrated machine ranges from 150 to 300 yuan, with expectations that integrated machines will be a future trend [4]. 5. Market Share and Competitive Advantages: - 卓翼科技 anticipates capturing 50% of Huawei's integrated machine supply chain. Competitive advantages include a long-standing partnership with Huawei, a supply chain built to Huawei's standards, and recognized production capabilities [5]. 6. Challenges in Production Standards: - Huawei's integrated machine design emphasizes automation and semi-automation, requiring significant investment in equipment upgrades. This high standard poses challenges for suppliers in terms of capital investment and technological upgrades [7]. 7. Order Timeline and Current Progress: - Orders are expected to materialize in early Q2, with ongoing preparations. Initial order targets are between 10,000 to 15,000 units, starting with a gradual increase in delivery scale [8]. 8. Rationale for New Project Introduction Amid Losses: - Despite overall losses, particularly in the digital division, the Huawei division remains profitable. The decision to introduce the integrated machine project was based on a detailed assessment of labor costs and equipment return on investment [9]. 9. Production Process and Key Technologies: - The integrated machine utilizes the DeepSeek model, with production processes similar to optical modems. Key technology focuses on testing and aging systems, with an emphasis on automation throughout the production process [10]. 10. Investment and Risk Assessment for Automation: - Establishing an automated production line requires an investment of approximately 20 million yuan. However, if the standards are not met, the investment return could be uncertain [11]. Additional Important Information - The call highlights the importance of maintaining high standards and efficiency in production to meet Huawei's stringent requirements, which could significantly impact 卓翼科技's future growth and profitability in the integrated machine market [6].