Luxshare Precision Industry Co., Ltd.

Company Profile

(I) Digital application stimulates new potential of intelligent manufacturing For the digital applications, we have introduced systems such as SAP, PLM, MES and WMS to further optimize the management processes and production processes throughout the entire lifecycle from design, R&D, production to marketing, procurement, warehousing and after sales, conduct precise, scientific and intelligent customer-oriented management, and constantly strive to improve our production efficiency and product yield. In terms of automated processes, we actively leverage the significant advantages of machine vision in precision, speed, repeatability, reliability, and information aggregation to achieve precise positioning and error detection of precision electronic components in process, active coordination and positioning of parts and fixtures in assembly, and machine AI-assisted inspection of component product appearance. By relying on real-time feedback of measurement data from machine vision, we enhance the deep self-learning ability of automated equipment and create a closed-loop control for automated processes. (II) Forward-looking layout opens up a new growth curve Under the guidance of our “three five-year” strategy, we always grasp the market dynamics, respond to industry growth trend, take coordinated development as our fundamental purpose, make forward-looking layouts around the main business, and are dedicated to providing the market with a perfect and integrated solution of industrial chains. On the one hand, capitalizing on our comprehensive capabilities deeply accumulated and continuously optimized in the consumer electronics field, we have built “process + underlying technology” structure to continuously explore the mass market of new and old products for core customers and other consumer electronics customers. In addition, we conduct horizontal expansion to empower automotive and communication sectors, which highlights our differentiated advantages in relevant sectors, and effectively supports the implementation of commercial plans, thereby achieving our diversified product layout. On the other hand, with many years of efforts in market segments, we have proprietary key process capabilities, including design and processing of molds/jigs, bare copper wire drawing, plastic particle molding, stamping/press forging, precision implant molding, surface treatment, SMT, SiP and system-level assembly testing. We make continuous efforts to explore product value by way of vertically integrating components, modules, and system-level assembly in a forward or reverse direction. In the era of the internationalization of industrial chains, our globalization layout is developing in depth. In addition to Guangdong, Jiangxi, Jiangsu, Zhejiang, Anhui and other provinces in China, we have established mature production capacity bases and R&D centers in such countries and regions as Vietnam, India and Mexico. While serving customers nearby and enhancing product cost advantages, these bases and centers have gathered overseas sophisticated talents and offered strong support for the team to explore high-end markets and provide high-quality services to customers. (III) Scientific research innovation creates new momentum for growth Since our listing, we have placed R&D and innovation on an important position in our development, made continuous investments in technology R&D, vigorously upgraded traditional manufacturing processes, continuously improved the level of automatic production, and realized platformization of all precision manufacturing processes. We also attach great importance to the long-term development of underlying materials and innovative production technologies. Our R&D team has continuously learned and explored advanced precision manufacturing technologies and product applications in the countries and regions mastering frontier technologies, and established a number of advanced technology development labs with certain core customers, to jointly develop frontier technologies. Our R&D expenses are mainly divided into investment in cutting-edge technology and in product iteration. Our investment in cutting-edge technology mainly focuses on our medium- and long-term product and business planning layout. About 30% of the overall R&D expenses are invested in innovative research and development in cutting-edge technology areas such as underlying materials, processes, and production procedures, which contributes to enabling 30% of our products to enter the “unpopulated area” of the global industry in the next 20 years. Our investment in product iteration focuses on R&D investment from concept to NPI (New Product Introduction) of new solutions and products. (IV) The “dual carbon” concept generates new green vitality To achieve the “dual carbon” goal in our production and operation, we actively practice the concept of green and low-carbon development, and adhere to the strategy of “energy conservation and emission reduction and use of renewable energy as the main method and carbon offset as a supplement” to gradually achieve the organic combination of carbon neutrality in our own operation, industrial chain and value chain. As of the end of the reporting period, a total of our 43 plants passed ISO14001 environmental management system certification in 2008, 9 plants passed ISO 50001 energy management system certification, 11 plants were rated as national or provincial-level green factories, and 12 subsidiaries obtained UL 2799 zero waste to landfill certification with a platinum rating. (V) Building hubs for talents The core competencies of a company will be ultimately reflected in the soft power arising from in-depth integration and mutual nourishment of talents and corporate culture. Core talents are the basis for the sustainable development of a company and the cornerstone for cultivating the talents required by a company. We have adhered to the strategy of invigorating the business through talents, and continuously improved our talent echelon building system and talent pool mechanism. On the one hand, we vigorously recruit outstanding talents required in our development who recognize and conform to the distinctive characteristics of our corporate culture, to continuously augment our team of core talents. On the other hand, we continuously improve our talent training system and talent selection system. Along with the growth of our business, we continuously put forward new and reasonable requirements for our employees, encourage them to make self-breakthrough in the boundary of their capabilities, and continuously improve their personal competencies and management capabilities, to contribute new energy to our development. Under the nurture of our corporate culture of being pragmatic and enterprising, constantly striving for perfection, and fulfilling the missions, we provide the key employees with a vast space to exercise their talents, and effectively stimulate their sense of mission, sense of achievement and sense of collective honor. At present, we have recruited outstanding talents in materials, automation, electronic information, molds, business management and other fields throughout the world, to create a talent pool for our sustainable development. We clearly know how to attract and retain talents. To develop a virtuous circle of people creating the environment and the environment creating people through in-depth integration of talents and corporate culture is our strongest core competency. Through effective talent mechanisms, we have sufficient talents in our traditional superior fields, and have laid the foundation for our rapid development in new areas and businesses.