YDC(605555)2022-08-02 07:56Group 1: Company Overview - The company focuses on vacuum cleaners as its core business, with diversified small home appliances as a growth area and EPS motors as a strategic business [2] - The company aims to enhance manufacturing capabilities and engage in technological innovation to expand its product range in small home appliances [2] Group 2: Market and Financial Impact - The company exports products primarily using FOB trade terms, meaning customers bear the corresponding tariffs, which do not affect the company's gross profit margin [3] - The appreciation of the US dollar benefits the company as all sales are conducted in USD, positively impacting gross profit margins [3] Group 3: Raw Materials and Costs - Major raw materials include various types of plastic pellets (ABS, PP), power cords, hoses, and bearings, with prices influenced by commodities like oil and rubber [3] - Fluctuations in commodity prices directly impact the company's product gross profit margins [3] Group 4: Business Development and Strategy - The company plans to consider an equity incentive plan when conditions are favorable, reflecting its current development stage and talent motivation needs [3] - There are no current plans for developing proprietary brands in small home appliances, focusing instead on strengthening ODM/OEM business and expanding EPS motor and brake motor operations [3] Group 5: EPS Motor Production and Capacity - The current production capacity for EPS motors is 1.8 million units per year, with plans to increase to 4.8 million units per year by the end of 2023 as new projects come online [4] - The company has developed both general and specialized production lines for EPS motors, adapting to different customer requirements [4] Group 6: Industry Barriers and Competition - EPS motors are critical safety components in automotive steering, requiring extensive validation and certification processes that create significant industry barriers [4] - The complexity of brushless motor structures and strict precision requirements further hinder new competitors from entering the market [4]