That’s true. A business doesn’t go to the expense of adding 40 additional machines (at a cost of approximately $400,000 each = $16 million) unless they know there is enough new business coming to justify the expense.
HOWEVER, there is no way to know what new business Lugee is expecting. The increased capacity might be entirely for Eontec. How do we know that any of the new machines are earmarked to fill LQMT contracts? We don’t.
There have been a lot of posts that assume that the increased manufacturing capacity is for LQMT customer orders. That is one heck of an assumption. A part of Yihao’s increased capacity may be used to fill LQMT orders. But how many of the new machines will be used to turn out parts for LQMT customers? At this point in time, it’s all speculative.