Summary of Lixun Precision's Conference Call Company Overview - Lixun Precision has achieved comprehensive layout in copper connectivity, optical connectivity, thermal management, and power management through acquisitions of KOTON and Huiju Technology, particularly providing complete solutions in the data center sector [2][3]. Core Business Insights - In the first half of 2025, Lixun's communication business revenue reached 11.1 billion yuan, a year-on-year increase of nearly 50%, with an expected annual growth rate exceeding 60%, driven by the demand for high-speed connectors [2][5]. - Lixun is positioned in the top tier of the copper interconnect industry, having upgraded its high-speed connectors to 224G and is researching the 448G CPC solution to meet the growing bandwidth demands of applications like NVIDIA NVLink [2][6]. - The CPC technology, which integrates high-speed connectors directly onto chips, is expected to gradually ramp up production from 2026 to 2027, becoming a mainstream solution for short-distance interconnects [2][7]. Financial Performance - The communication business's significant revenue growth in 2022 was primarily due to the acquisition of Huiju Technology, with rapid growth observed in 2024 and the first half of 2025 [5]. Industry Trends and Developments - The liquid cooling market for data centers is rapidly growing, projected to reach 10 billion USD by 2026. Lixun has a complete set of server liquid cooling solutions and is focusing on advanced technologies like microchannel cooling, with mass production expected in 2026 [2][12]. - The optical interconnect industry is experiencing accelerated iterations in module speeds, with a shift from 400G in 2019 to 800G in 2023, and expected mainstream adoption of 800G and 1.6T by 2026 [9][10]. - New optical interconnect technologies such as LPO and CPO are emerging, with LPO reducing power consumption and latency, while CPO integrates silicon photonics with switching chips for improved performance [10]. Future Growth Drivers - Key factors expected to drive Lixun's growth in the coming years include advancements in the 448G solution, increased demand from North American customers, and the large-scale application of CPC technology [8]. - Lixun aims to be among the top three globally in copper, optical, thermal, and electrical sectors by 2030, with a market size projected to exceed 1 trillion yuan. Capturing 10%-20% market share could yield revenues of 100-200 billion yuan, equivalent to creating another Lixun Precision [3][14]. Additional Insights - Lixun has made significant advancements in thermal management and power management, with a full range of products expected to contribute to revenue growth starting in 2026 [12][13]. - The integration of Huiju Technology has expanded Lixun's capabilities in wire components and server assembly, with future growth driven by demand from major clients like Google [13].

Group 1: Interest Rate Adjustments - The three-year fixed deposit product with an interest rate of 2.2% was officially removed on January 5, with all deposit rates decreasing by 20 basis points [1] - Multiple small and medium-sized banks, including Wuding Xingfu Village Bank and Xuwen Rural Commercial Bank, have recently announced adjustments to their deposit rates, indicating a trend of flexible management based on individual bank conditions [1] Group 2: Currency and Asset Trends - The offshore RMB exchange rate against the USD rose again on January 6, remaining above the 7 yuan mark, continuing a trend of appreciation that has lasted nearly nine months [1] - Analysts believe that the strengthening of the RMB is beneficial for foreign capital inflow, improving liquidity and risk appetite in the A-share market, with three asset categories highlighted for investment: aviation, paper manufacturing, and high-growth sectors like computing and electronics [1] Group 3: Company Performance Forecasts - Eleven companies are expected to achieve their highest net profits in the past decade by 2025, with Zijin Mining and Luxshare Precision leading with lower limits of 51 billion yuan and over 16.5 billion yuan, respectively [2] - The performance of the non-ferrous metals sector is expected to be strong due to supply constraints and structural demand growth, with companies like China Uranium Industry also anticipated to reach peak profits [2] Group 4: Lithium Carbonate Price Surge - Lithium carbonate prices have surged significantly, with a 7.74% increase on January 5 and an 8.99% increase on January 6, reaching 137,900 yuan per ton, driven by tightening supply expectations and rising demand [3] - The price increase is linked to uncertainties in lithium supply and growing demand for energy storage, with market analysts suggesting limited downside potential for lithium prices [3] Group 5: Corporate Developments - Yunnan Metallurgical Group is publicly offering a 3.18% stake in Cheng Tai Insurance for a base price of 184 million yuan, marking the third attempt to transfer this stake [6] - Four companies, including Suzhou Shangshun Technology, have initiated listing counseling as of January 6, indicating ongoing activity in the capital markets [6] Group 6: Stock Market Movements - The three major U.S. stock indices closed higher, with the Dow Jones up 0.99%, driven by AI-related demand, while the S&P 500 and Dow reached historical highs [17] - Commodity prices, particularly metals, have seen significant increases, with copper and nickel reaching record highs, reflecting strong market conditions [17]

Market Overview - Major indices showed positive performance with the STAR Market 50 up by 1.84%, the Northern Exchange 50 up by 1.82%, the Shanghai Composite Index up by 1.50%, the Shenzhen Component Index up by 1.40%, and the ChiNext Index up by 0.75% [1] - The TMT sector led the gains, with the SW Panel sector increasing by 5.21%, SW Semiconductor Materials by 4.41%, and SW Vertical Application Software by 3.86% [1] - Conversely, the TMT sector also saw declines, with SW Communication Network Equipment and Devices down by 1.70%, SW Communication Cables and Supporting down by 0.68%, and SW Printed Circuit Boards down by 0.60% [1] Domestic News - Luxshare Precision is set to add a new VR glasses production line with an annual capacity of 9 million units, alongside an increase in the production capacity of VR glasses charging cases by 4.5 million units [2] - A semiconductor equipment R&D and production base project in Suzhou has been signed with a total investment of 1.05 billion yuan, expected to achieve an annual output value of over 1 billion yuan upon full production [2] - Deep Tianma has signed a long-term OLED materials supply and licensing agreement with UDC to support its OLED display production [2] - The new factory of Jinglong Technology for high-end semiconductor testing has been put into operation with a total investment of 4 billion yuan, covering AI, automotive-grade, and industrial-grade chip testing [2] Overseas News - Appfigures data indicates that the Manus mobile app is projected to reach approximately 4.5 million downloads by 2025, primarily from emerging markets like Brazil, Egypt, and India, with an estimated in-app revenue of 13 million USD for the year [3] - AMD has launched the Helios platform, boasting an AI computing capability of 2.9 exaflops and equipped with 31TB of HBM4 memory [3] - Texas Instruments has introduced the TDA5 chip for autonomous vehicles, utilizing a 5nm process and enhancing computation speed from 100 trillion operations per second to up to 1.2 quadrillion [3] - METI plans to increase its overall budget by approximately 50% to around 3.07 trillion yen, with significant funding directed towards the semiconductor and AI sectors [3] AI News - NVIDIA has officially launched the "Vera Rubin" platform, featuring the Vera CPU with 88 customized Olympus cores and the Rubin GPU capable of 50 quintillion floating-point operations per second [4] - WeChat has initiated the "AI Mini Program Growth Plan," committing resources to support developers and aiming for a significant increase in AI applications by 2026 [4] - The National Radio and Television Administration announced a month-long special governance initiative starting January 1, 2026, targeting the misuse of AI tools in altering classic content [4] Industry Tracking - Brain-computer interface startup Strong Brain Technology has completed approximately 2 billion yuan in financing, producing products that assist disabled individuals in controlling prosthetic limbs [5] - New Times has released the first "industrial-grade" embodied intelligent robot, SYNDA R1, designed for various operational tasks [5] - Dongfang Boiler has successfully completed a key phase of a national key R&D project related to stable and clean combustion technology [5] - Beijing has announced an action plan for building an AI innovation hub, aiming to achieve a core industry scale exceeding 1 trillion yuan within two years [5]

中泰证券研报指出，立讯精密AI通讯业务深度-全面布局铜光热电，深度受益AI浪潮。公司铜光热电领 域全面布局，客户导入进展顺利，通讯业务有望成为核心增长引擎。选取消费电子整机&模组生产商工 业富联、歌尔股份、蓝思科技、领益智造作为可比公司，平均PE分别为36/24/19倍。公司估值低于行业 平均，且考虑到公司通讯业务成长空间&潜力大，汽车业务利润增长确定性高，消费电子业务有望受益 端侧AI发展，维持"买入"投资评级。 ...

Group 1 - The core point of the article is that Luxshare Precision (002475) has received preliminary approval for an environmental impact assessment for its subsidiary's consumer electronics component production line upgrade project, with a total investment of 280 million yuan [1]. - The "A-share Green Report" project aims to enhance transparency in environmental information of listed companies, utilizing authoritative environmental regulatory data from 31 provinces and 337 cities [1]. - The project involves monitoring the environmental performance of listed companies and their subsidiaries, providing professional data analysis and insights, and regularly updating environmental risk rankings [1]. Group 2 - The previous issue of the A-share Green Weekly Report indicated that four listed companies recently exposed environmental risks [3].

天眼查资料显示，立讯精密工业（盐城）有限公司，成立于2021年，位于盐城市，是一家以从事其他制 造业为主的企业。企业注册资本5000万人民币。通过天眼查大数据分析，立讯精密工业（盐城）有限公 司参与招投标项目17次，专利信息41条，此外企业还拥有行政许可10个。 声明：市场有风险，投资需谨慎。本文为AI基于第三方数据生成，仅供参考，不构成个人投资建议。 国家知识产权局信息显示，立讯精密工业（盐城）有限公司申请一项名为"一种汽车线束固定架的调节 方法"的专利，公开号CN121256959A，申请日期为2025年11月。 专利摘要显示，本发明涉及汽车线束技术领域，公开了一种汽车线束固定架的调节方法。该方法包括采 集汽车线束和固定架的位置数据、张力数据及环境因素数据，生成实时状态数据集；接着对实时状态数 据集进行多维度交互分析，结合上下文信息理解固定架与线束的关联，识别交互模式和潜在偏差模式， 生成带优先级的调节标记数据集；随后基于实时状态数据集和调节标记数据集建立动态基准模型，利用 交互分析结果调整模型参数；再将实时状态数据与动态基准模型比对，识别位置或张力偏离行为并标记 调节需求，反馈至线束布局日志获取调节背景 ...

Group 1 - The core theme of the 2026 CES is edge AI, with terminal manufacturers in smartphones, PCs, and smart cars launching new products equipped with AI capabilities, accelerating the migration of AI from the cloud to devices [2] - The consumption electronics ETF closely tracks the CSI Consumer Electronics Theme Index, which selects 50 listed companies involved in component production and brand design to reflect the overall performance of the sector [2] - As of December 31, 2025, the top ten weighted stocks in the CSI Consumer Electronics Theme Index account for 54.35% of the index, including companies like Luxshare Precision, Cambricon, and BOE Technology Group [2] Group 2 - The CES event features significant presentations from industry leaders, including AMD's CEO Lisa Su and Lenovo's Chairman Yang Yuanqing, showcasing advancements in mixed AI technology [1] - NVIDIA will demonstrate its solutions driving innovation in various fields such as automotive, gaming, content creation, AI agents, physical AI, and robotics during CES [1]

Core Insights - The global Precision Intelligent Manufacturing Solutions (PIMS) market is experiencing continuous growth driven by high-tech and innovation in sectors such as consumer electronics, automotive electronics, communication and data centers, aerospace, and advanced equipment [1][3] - By 2025, the global PIMS market is projected to reach 9.47 trillion yuan, with system integration accounting for 4.92 trillion yuan (51.91%) and components and modules for 4.55 trillion yuan (48.09%) [1][4] - The market is expected to surpass 10 trillion yuan by 2026, with system integration growing to approximately 5.24 trillion yuan (52.26%) and components and modules to about 4.79 trillion yuan (47.74%) [1][4] Industry Definition and Classification - PIMS is a customer-centric, technology-driven manufacturing service that integrates advanced processing technologies, rapid prototyping, automation control, and intelligent systems to provide high-precision components, functional modules, and system integration [2][3] - The industry is characterized by deep customization, aiming to transform breakthrough product concepts into mass-producible products that meet high technical standards [2] Current Industry Status - The PIMS market is broad, with significant growth attributed to the increasing demand for refined manufacturing processes in emerging fields such as artificial intelligence and advanced medical equipment [3][4] - From 2019 to 2025, the PIMS market is expected to grow from 6.95 trillion yuan to 9.47 trillion yuan, indicating a robust upward trend [3][4] Industry Value Chain - The upstream of the PIMS industry includes basic raw materials such as metals, ceramics, and plastics, as well as production equipment like CNC machines and die-cutting machines [4][5] - The midstream processes various raw materials into specific functional components and integrates systems, while the downstream applications span consumer electronics, automotive, communication, data centers, energy, construction technology, medical, and renewable energy sectors [4][5] Competitive Landscape - The Chinese PIMS market features both comprehensive giants and niche "hidden champions," with leading companies like Luxshare Precision, GoerTek, and others dominating various segments [5][6] - Luxshare Precision ranks fourth globally and first in mainland China within the PIMS industry, excelling across major business lines in consumer electronics, automotive electronics, and communication and data centers [5][6] Industry Development Trends - The PIMS industry is characterized by high precision, efficiency, automation, and flexible customization, driven by rising consumer demands for product functionality, portability, and aesthetics [9][10] - The shift towards ultra-high precision, high performance, and high value-added manufacturing is being propelled by leading manufacturers adopting advanced equipment and materials [10] - Future developments will focus on smart, flexible, and sustainable manufacturing, integrating industrial internet, digital twins, artificial intelligence, and robotics to enhance manufacturing systems [10]

Group 1 - The company issued a clarification regarding recent rumors that have caused market confusion, stating that its core business is progressing as planned without any abnormal situations affecting operations [2] - Reports indicated that OpenAI's first AI hardware product, initially planned to be manufactured by the company, has been shifted to Foxconn due to production location considerations, raising concerns about the company's competitiveness in the AI hardware sector [3] - The company emphasized its capabilities in high-end consumer electronics and smart terminal fields, highlighting its vertical integration of multiple component categories and a global production layout to provide stable and high-quality manufacturing support [4] Group 2 - The company has completed the acquisition of German company Leoni, aiming to enhance its global production capacity and target a position among the top ten global automotive parts suppliers [4] - The automotive segment focuses on core components such as wiring harnesses and connectors, with plans to expand into system-level products like smart cockpits and smart chassis [4] - The company reserves the right to pursue legal action against any individuals or entities spreading false information or damaging its reputation [4]

Core Viewpoint - The announcement details the conversion of the company's convertible bonds and the adjustment of the conversion price, reflecting changes in the company's share capital due to stock option exercises and bond conversions [2][4][6]. Group 1: Convertible Bond Issuance and Listing - The company issued 30 million convertible bonds with a total value of RMB 300 million, approved by the China Securities Regulatory Commission [2]. - The bonds were listed on the Shenzhen Stock Exchange on December 2, 2020, under the name "立讯转债" and code "128136" [3]. Group 2: Conversion Price Adjustment - The initial conversion price was set at RMB 58.62 per share, which was adjusted to RMB 56.14 per share as of December 31, 2025, due to stock option exercises and bond conversions [4]. - The conversion price was further adjusted to RMB 56.13 per share, effective from January 6, 2026 [12][19]. Group 3: Conversion Period and Share Changes - The conversion period for the bonds started on May 10, 2021, and will end on November 2, 2026 [5]. - In the fourth quarter of 2025, the bonds were converted, resulting in a reduction of RMB 137,200 (1,372 bonds) and an increase of 2,434 shares in the company's total share capital [6]. Group 4: Stock Option Plan Impact - The company has multiple stock option plans, with various exercise periods and prices, which have influenced the conversion price adjustments [16][17]. - The total shares exercised under these plans from September 30, 2025, to December 31, 2025, amounted to 1,543,252 shares, representing 0.0212% of the total share capital [17].