In-depth Impact Analysis of Boya Precision's Supply Chain Partnership with Siemens

Boya Precision (Stock Code: 300971) is Xiangyang Boya Precision Equipment Co., Ltd., whose main business focuses on high-end equipment precision manufacturing, with product lines divided into two core segments:

: Mainly used in the manufacturing of high-end equipment and components for the steel and non-ferrous metallurgy industries, it has successfully replaced similar products from well-known manufacturers in Germany, Japan, and Italy, achieving “import substitution” and independent intellectual property rights in this field [1].

: Mainly key components and structural parts for special vehicles, the products are widely used in various types of special vehicles due to their excellent quality and high reliability, and have undergone inspections in multiple national-level major events [1].

According to the 2025 third quarterly report data, the company’s total operating revenue was 387 million yuan, a year-on-year increase of 47.27%, and the net profit attributable to parent company shareholders was 66.11 million yuan, a year-on-year increase of 82.87%, showing a strong growth momentum [1].

As a world-renowned supplier of industrial automation and electrical equipment, Siemens has extremely high supply chain access thresholds. Boya Precision’s ability to become a supply chain partner of Siemens is itself a strong endorsement of the company’s technical strength, product quality, and management system.

From Siemens China’s supply chain management practices, Siemens has established a strict supplier management system, including processes such as 100% supplier access and external audits for sustainable development [6]. Being able to enter Siemens’ supply chain system indicates that Boya Precision has reached an international first-class level in terms of technical standards, quality control, and delivery capabilities.

Siemens has established a complete localized R&D and innovation ecosystem in China, carrying out more than 800 R&D cooperation projects with over 90 universities and research institutions [6]. As a supply chain partner of Siemens, Boya Precision has the opportunity to:

• Access Advanced Technical Standards
  : Contact and learn Siemens’ advanced technical standards and management experience
• Participate in Joint R&D
  : Carry out technological collaboration in the fields of digital and intelligent manufacturing
• Improve Process Level
  : Force the improvement of its own manufacturing processes through Siemens’ technical requirements

Siemens’ “Zero Carbon Pioneer Program” promoted in China also means that supply chain partners need to meet higher environmental protection and sustainable development requirements [5], which will push Boya Precision to transform and upgrade towards green manufacturing.

After becoming a Siemens supplier, Boya Precision’s market influence will be significantly enhanced:

1. Industry Benchmark Effect
   : In industries such as steel and non-ferrous metallurgy, Siemens’ brand influence will help Boya Precision gain recognition from other high-end customers faster
2. Internationalization Path
   : Siemens’ global supply chain network provides Boya Precision with a channel to enter the international market
3. Customer Structure Optimization
   : Cooperation with Siemens helps optimize the customer structure and reduce the risk of dependence on a single customer

From Boya Precision’s business structure, the sales revenue of the precision equipment and key components for strip forming processing segment was 142.6932 million yuan in the first half of 2025, maintaining a stable business scale [1]. Cooperation with Siemens provides new growth momentum for this core business segment.

Boya Precision’s core competitiveness is reflected in the product attributes of “specialization, precision, and expertise”, and the company has achieved a high profit margin through technological innovation [8]. Cooperation with Siemens will further:

• Enhance Product Added Value
  : Products that meet higher technical requirements usually have higher premium capabilities
• Optimize Cost Structure
  : Large-scale production and technological collaboration help reduce manufacturing costs
• Enhance Bargaining Power
  : As a qualified supplier of Siemens, the company has a stronger bargaining position when negotiating with downstream customers

Boya Precision’s core competitiveness is concentrated in the product attributes of “specialization, precision, and expertise”. Through solid technical accumulation and continuous technical R&D, it has mastered multiple key technologies in this field [8]. Cooperation with Siemens will further strengthen these advantages:

1. Increased Technical Barriers
   : The technical threshold in the field of high-end equipment precision manufacturing is further raised
2. Enhanced Customer Stickiness
   : In-depth cooperation with world-class customers such as Siemens enhances customer stickiness
3. Scale Effect Emergence
   : Stable supply chain partnerships help achieve economies of scale

From the financial data, Boya Precision’s total operating revenue in the third quarter of 2025 was 159 million yuan, a year-on-year increase of 82.32%, and the net profit attributable to parent company shareholders in the third quarter was 21.7931 million yuan, a year-on-year increase of 151.37% [1], showing strong growth.

Cooperation with Siemens will bring the company:

• Sustained Growth in Orders
  : Stable supply chain partnerships provide a continuous source of business
• Business Diversification
  : Opportunities to expand into more Siemens-related application areas
• Risk Resistance Capability
  : Diversification of customer structure reduces operational risks

Boya Precision currently has a gross profit margin of 42.69% [1], which is at a high level in the manufacturing industry. Cooperation with Siemens is expected to:

• Valuation Premium
  : As a supply chain partner of a world-class enterprise, the company enjoys a certain valuation premium
• Growth Premium
  : Stable business growth supports a higher valuation level
• Certainty Premium
  : Cooperation with international enterprises such as Siemens enhances the certainty of business development

Although cooperation with Siemens brings many opportunities, there are also certain dependence risks:

1. Order Concentration
   : If the business proportion of Siemens is too high, it may bring customer concentration risk
2. Technical Dependence
   : Excessive reliance on Siemens’ technical standards may affect the motivation for independent innovation
3. Bargaining Power
   : As a relatively weak party in the supply chain, it may face certain bargaining pressure

After becoming a Siemens supplier, the company faces a more intense competitive environment:

• International Competition
  : Need to compete with world-class component suppliers
• Standard Upgrade
  : Siemens’ strict requirements mean higher quality and technical standards
• Cost Pressure
  : Cost control requirements from international customers may bring pressure

Based on the analysis of Boya Precision’s supply chain partnership with Siemens, I believe this cooperation has a

on the company’s business development and investment value, with the main basis as follows:

:

1. Technical Improvement
   : Through cooperation with Siemens, the company’s technical level and manufacturing capabilities will be significantly improved
2. Brand Endorsement
   : Siemens’ brand endorsement helps the company gain recognition in more high-end markets
3. Stable Growth
   : Supply chain cooperation provides a stable and continuous source of business for the company
4. Internationalization Path
   : Provides an important channel for the company’s international development

:

1. Cooperation Depth
   : Need to pay attention to the specific scale and proportion of cooperation with Siemens
2. Technical Independence
   : Need to maintain the autonomy of technological innovation in cooperation
3. Customer Diversification
   : Avoid excessive dependence on a single customer

Overall, Boya Precision’s supply chain partnership with Siemens is an important milestone in the company’s development history, which is conducive to enhancing the company’s technical strength, market position, and profitability, and creating long-term value for investors.

[1] Brief Analysis of Boya Precision’s 2025 Third Quarterly Report: Revenue and Net Profit Both Increased Year-on-Year - Securities Star
[2] 2025 Semi-Annual Report of Xiangyang Boya Precision Equipment Co., Ltd.
[3] Boya Precision Company Profile - Sohu Securities
[4] In-depth Research Report on Boya Precision - Eastmoney.com
[5] Siemens Sustainable Development in China: Based on “1.5.0”, Looking to the Future
[6] Siemens in China
[7] 2024 Annual Report of Boyue Precision Technology Co., Ltd.
[8] Analysis of Boya Precision’s Core Competitiveness - Company Annual Report