Taiwan-based company Yuqing recently held an investor conference, where the chairman announced the new year's development strategy, declaring the formal establishment of a home door lock business group and planning to launch a sheet metal processing business group in the second half of the year. Meanwhile, a new production base in Surabaya, Indonesia will begin production within the year, laying the foundation for a return to growth. Regarding the new business layout, the home door lock business will be produced in leased factories in the Minxiong Industrial Zone of Chiayi, Taiwan. The products have obtained patents in Taiwan and Mainland China, feature a tool-free installation design, and focus on convenience. Initial sales channels will target Amazon and Walmart in the U.S., with revenue contributions expected to gradually begin from the second quarter.
In terms of capacity layout, the Surabaya factory in Indonesia, built with an investment of USD 2.8 million, has entered the material preparation stage. It is expected that on April 7, clients will visit for final certification, after which formal production can commence. This base is designed with an annual production capacity that can generate an output value of NT$1 billion, and it will also serve as the production site for the sheet metal processing business group. The sheet metal business will focus on orders for products related to energy-saving systems and food waste processors, and is expected to begin contributing revenue in the fourth quarter of 2026.
Since sheet metal processing shares a 85% process overlap with the company's existing display rack manufacturing, existing production lines and technologies can be directly reused, which is conducive to improving equipment utilization rates and capital efficiency. Looking ahead to 2026 operating performance, Yuqing estimates that full-year revenue will continue the trend of quarter-over-quarter growth, with first-quarter revenue expected to be the lowest of the year. The chairman stated that driven by the gradual ramp-up of new businesses and the commissioning of new production capacity in Indonesia, the company's revenue and profit in 2026 are expected to return to a growth trajectory.
Taiwan-based company Yuqing recently held an investor conference, where the chairman announced the new year's development strategy, declaring the formal establishment of a home door lock business group and planning to launch a sheet metal processing business group in the second half of the year. Meanwhile, a new production base in Surabaya, Indonesia will begin production within the year, laying the foundation for a return to growth. Regarding the new business layout, the home door lock business will be produced in leased factories in the Minxiong Industrial Zone of Chiayi, Taiwan. The products have obtained patents in Taiwan and Mainland China, feature a tool-free installation design, and focus on convenience. Initial sales channels will target Amazon and Walmart in the U.S., with revenue contributions expected to gradually begin from the second quarter.
In terms of capacity layout, the Surabaya factory in Indonesia, built with an investment of USD 2.8 million, has entered the material preparation stage. It is expected that on April 7, clients will visit for final certification, after which formal production can commence. This base is designed with an annual production capacity that can generate an output value of NT$1 billion, and it will also serve as the production site for the sheet metal processing business group. The sheet metal business will focus on orders for products related to energy-saving systems and food waste processors, and is expected to begin contributing revenue in the fourth quarter of 2026.
Since sheet metal processing shares a 85% process overlap with the company's existing display rack manufacturing, existing production lines and technologies can be directly reused, which is conducive to improving equipment utilization rates and capital efficiency. Looking ahead to 2026 operating performance, Yuqing estimates that full-year revenue will continue the trend of quarter-over-quarter growth, with first-quarter revenue expected to be the lowest of the year. The chairman stated that driven by the gradual ramp-up of new businesses and the commissioning of new production capacity in Indonesia, the company's revenue and profit in 2026 are expected to return to a growth trajectory.