Yulong: US Plant Plan to Be Clear by Year-End, Targeting Reducers for Humanoid Robots

(CNA) Reporter Chung, Yu-feng, Taipei, July 2nd) Yulong General Manager Cai Ming-dong stated today that the company's plan to establish a plant in the United States by the end of this year will become clear. The company is preparing to produce products such as reducers for humanoid robots. Yulong's performance in UQD, a key component for AI server liquid cooling, is expected to grow quarter by quarter this year, with UQD revenue aiming to account for 10% of total revenue.

Yulong held an investor conference call this afternoon to explain how its major shareholder, Shen Xing, has fully authorized the management team to transition into new businesses such as reducers for humanoid robots and AI liquid cooling.

In response to tariff and geopolitical uncertainties, Yulong indicated that North American clients strongly requested a shift from the original plan of establishing a plant in Mexico to a strategic layout in the United States. Cai Ming-dong revealed that the US plant plan is expected to be finalized as early as the end of this year, pending board approval, with plans to produce reducers for humanoid robots.

Regarding its humanoid robot application strategy, Cai Ming-dong mentioned that Yulong has passed sample certifications with several key humanoid robot clients. Yulong explained that currently, there are 5 planetary gear projects with 5 samples sent, 8 planetary reducer projects with 6 samples sent, 5 harmonic reducer projects with 5 samples sent, and 6 electromechanical modules integrating reducers and motors have been sampled. Additionally, 26 harmonic new product development projects are underway, with small-batch production and delivery planned to commence as early as the end of this year.

By application, Yulong stated that automotive currently accounts for over 70% of its revenue, and steady, slight growth is anticipated for automotive product revenue this year. Industrial applications account for about 9%, and the company remains optimistic about the growth of industrial applications, including reducers, with a future target of exceeding its core business.

Looking ahead at gross margin trends, Yulong expects gross margin in the second quarter to significantly improve compared to the first quarter, and gross margin in the third quarter to be better than the second quarter. Reducer products are expected to contribute positively to gross margin performance. (Editor: Yang Kai-hsiang) 1150702

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