1. What are your predictions for the future development of the die-casting industry?
Answer: Die-casting is a basic supporting industry with strong demand from downstream sectors. At present, large-scale consolidation in the industry is not prominent, but some smaller and less competitive production capacities are already exiting the market. Industry insiders predict that by 2030, production capacity will gradually be concentrated and the industry competition pattern will improve.
2. What are the company's future domestic and overseas production capacity plans?
Answer: Overseas, currently, a production base for interior and exterior accessories is under construction in Thailand. The die-casting business will also promote the construction of overseas production capacity in the future. Through the implementation of overseas production capacity layout and market expansion for the two business segments, we aim to make the scale of overseas business reach 25-30 billion.
Domestically, in recent years, we have promoted the construction of new production capacity in South China, Central China, and North China. In the coming years, we expect the production capacity to remain at the current planning level. The focus is on promoting the ramp-up and benefit release of the new production capacity, and also planning to appropriately increase production capacity in joint module components, aircraft-related products, and high-margin products from European brands.
3. What is the progress of the company's magnesium alloy business and its future profit forecast?
Answer: The company is accelerating the construction of the magnesium alloy project, with a planned capacity of approximately 500 million yuan. The order acquisition situation is currently good, and there are projects from multiple automotive original equipment manufacturers and well-known two-wheeled electric vehicle customers. Regarding the profit level, it depends on the capacity ramp-up after production starts. The quality rate has a significant impact on the profit (currently, the qualified rate of peers is relatively low), and the company has a profound technical accumulation in the aluminum alloy die-casting field, so it is expected to have certain advantages.
4. How is the company's other new business layout?
Answer: The company is actively promoting business layout in the joint module and low-altitude aircraft-related fields. In the joint module field, it will adopt self-production line and joint cooperation methods to undertake the production of aluminum alloy parts. Some business will extend to assembly and final assembly delivery. It is expected to enter the production stage next year. In the low-altitude aircraft business field, recently, we have also achieved good order breakthroughs in well-known unmanned aerial vehicle platform products projects. The company is also discussing cooperation and implementation plans for aircraft base station products with local governments.
