What is the proportion of material cost to total production cost for trailer suspension?
The figure is around 1/5 to 1/3 of the total. This mainly depends on the production technology. It is notable that Shandong Fuhua Axle Co., Ltd has been decreasing the proportion regarding the cost of material to the total figure. When the business was just founded, the proportion was much larger. This is because at that time, the technology in the whole industry was backward. Having developed for so many years, our technology is mature and we can control the cost of trailer suspension well. We also import advanced production equipment to increase the output while reducing the input. This also makes results. We are sure that the cost would be further reduced in the near future, in the context that the industry is developing rapidly and our company is leading the industry development.
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