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Riqiya Electromechanical CNC products have been widely used in cameras, copiers, notebooks and other products. So far, the penetration rate of Samsung’s smartphones with metal cases is relatively low, at 7.4%. This is mainly due to the fact that all phones using metal cases use the unique Bada system, such as the S8600, while none of the highest-selling Android phones have Section application. But the Bada system is Samsung’s own development system, and its configuration has always been the vane of Samsung’s smartphones. We believe that Samsung is likely to start applying metal cases to Android phones at the end of this year or early next year. The penetration rate is expected in 2013. Increase to 15%, and the penetration rate is expected to increase to 25% in 2014.
The company currently has about 300 CNCs, and it is expected to reach 500 by the end of 2012, and 1,000 in 2013, of which 500 will be occupied by the original business, and the new 500 CNC production capacity for metal casings may be tight. We believe that the release of orders for metal casings by old customers to the company is a high probability event, which will drive the company's CNC business revenue to grow rapidly.
