Overall competitive landscape of the industry

In the precision structural component industry, the competition pattern of downstream manufacturers will directly affect the competition pattern of precision structural component manufacturers. The main reason is that the degree of marketization of precision structural components is high, and it is closely related to downstream application industries. Products are mainly customer-oriented, and downstream customers' choices in product quality standards, technical paths, and other aspects are closely related to the development of the precision structural component industry; And the business situation and development strategy of downstream customers will have a direct impact on the development of precision structural component manufacturers they cooperate with

Overall, there is a high demand for smartphones and related components in the market. Industry leading enterprises have a relatively high production demand for single model products, and the delivery cycle is short. Enterprises with smaller production scales cannot meet their supply needs, and require a considerable number of precision structural component manufacturers to provide supporting products and services. If the manufacturers of precision structural parts can be recognized by leading customers in the industry in terms of R&D and design capability, product quality, product manufacturing capability, production response speed, etc. and become their core suppliers, they can generally benefit from the development of downstream high-quality customers to obtain relatively stable growth orders, and tend to show a relatively high concentration ratio of high-quality major customers

In addition, due to the wide range of terminal applications for precision structural components and significant differences in downstream customer demands, precision structural components have the characteristics of customized production, making it difficult for the same enterprise to simultaneously meet the diverse product needs of many downstream manufacturers. Therefore, there are relatively more enterprises engaged in the production of precision structural components in China, but there are relatively few high-tech enterprises with strong independent research and development design and production manufacturing capabilities, mainly focusing on precision, complex, and high-quality products