Yucheng Secures 3-4 Months of Order Visibility as Volvo Mega-Order Enters Full Mass Production

Specialty fastener manufacturer Yucheng (7718-TW) announced that it currently has 3-4 months of order visibility, with the full mass production of a major waterproof bolt order for the Volvo EX60 battery assembly chassis set to begin in the second half of 2024, continuously boosting capacity utilization at its Xinji plant and contributing to revenue growth.

Yucheng's Q2 revenue reached NT$1.256 billion, up 3.67% year-on-year, with a gross margin of 20%, up 2.34 percentage points year-on-year. Operating margin hit 10.81%, the highest in nearly five years, up 3.34 percentage points year-on-year. Net profit after tax reached NT$116 million, surging 298.51% year-on-year, with earnings per share at NT$2.55.

In terms of Q2 revenue by market, North America accounted for 60%, maintaining its core market position, while Europe increased to 30%. Yucheng's July revenue reached NT$220 million, up 14.17% year-on-year, with cumulative revenue for the first seven months reaching NT$1.476 billion, up 5.11% year-on-year.

Yucheng has long focused on custom automotive component development, with over 80% of its in-house capabilities dedicated to custom design. The company holds globally recognized best-in-class anti-loosening technology, including the TEC WASHER double-tooth anti-loosening washer and the internationally patented MAThread product.

Yucheng, in collaboration with global industrial giant Stanley, has successfully entered the supply chain for the Volvo EX60—the first model on Volvo’s latest SPA3 platform—providing specialized 'M18/M20 internal-external thread waterproof bolts' for the battery assembly chassis. As the only Taiwanese supplier, full mass production is expected to begin in the second half of 2024, driving annual exports of at least 240 tons of high-margin fasteners.

Yucheng is optimistic about the vast demand in the U.S. industrial fastener market and is implementing a three-pronged strategy. First, shifting toward high-value products to move away from price competition in standard fasteners, with a focus on EV battery assembly core sealing components, multi-process special products, component products, and patent-licensed products.

Second, expanding sales to OEMs in Europe and North America and establishing overseas warehouse mechanisms. The company plans to collaborate with the top three Tier 1 system suppliers to create shared overseas shipping warehouses to reduce delivery lead time risks. Yucheng also intends to participate in the Phoenix Fastener Show in October 2026 and the European Fastener Expo in 2027.

Third, pursuing smart manufacturing and M&A strategies. The company will continue expanding its intelligent digital factories, refining mold and forming technologies, while actively evaluating overseas investment, acquisition, and strategic alliance targets to accelerate resource integration and channel operations.