Union Precision(SH:688210)2023-11-09 01:40Group 1: Company Overview - The company specializes in the R&D, design, production, and sales of high-precision, high-density, and complex-shaped precision components, aiming to become a world-leading MIM product manufacturer and comprehensive solution provider for precision components [3] - The company's products are primarily used in new consumer electronics such as foldable smartphones, tablets, laptops, and drones, serving well-known brands like Apple, Honor, and Amazon [3][7] Group 2: Financial Performance - The raw material cost for MIM precision components accounts for approximately 15-20% of total production costs, with the majority of costs attributed to manufacturing expenses [4] - The company anticipates an increase in gross margin for its foldable smartphone hinge business as production processes stabilize and cost-reduction measures are implemented [8] Group 3: Market Expansion and Client Base - The market penetration rate for foldable smartphones is increasing, with the company targeting both domestic and international high-quality foldable smartphone brands as potential clients [5] - The company aims to diversify its client base by providing comprehensive technical solutions, focusing on clients with high-quality and technical requirements [7] Group 4: Technological Innovation - The company maintains its technological advantage through continuous process innovation, striving to stay slightly ahead in technology [7] - MIM technology is seen as having a cost advantage over 3D printing for mass production, although both technologies can complement each other for different product requirements [8] Group 5: Future Investments - The total investment for the company's MIM production base in Changsha is approximately 600 million yuan, covering factory construction and equipment procurement [9]