SINOMACH Precision: Increased government subsidies boost wind power bearing business development

SINOMACH recently released a record of its communication with investors, which mentioned that non-recurring income mainly consists of two parts: one is the fair value adjustment caused by the fluctuation of SUMEC's stock price; the other is the government subsidies. In particular, the amount of government subsidies received in 2023 is higher than in previous years, but it is expected that the amount of subsidies will decrease this year.

Regarding the valuation of its diamond enterprises, SINOMACH stated that it used a revenue-based approach to value Sanmo and Xinya, while for China Machinery International Cooperation Co., Ltd., it was evaluated based on its asset value. Diamond materials have attracted much attention due to their superior performance and wide application prospects. Even if the price has dropped, due to the advancement of production technology and the reduction of production costs, this does not mean a reduction in profits.

SINOMACH's main business is concentrated in the field of wind power generation and the precision bearings required for the manufacture of high-end machine tools. At present, the wind power bearing business is showing a good development trend, and the company has no plans to split this business segment. In the past, the localization level of core components in wind turbines, such as main shaft bearings and gearbox bearings, was low, but in the past two years, through continuous technological research and development, the localization rate of these important components has been steadily increasing.