立讯精密(002475) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides essential preliminary information, including the board's responsibility statement, a detailed table of contents, and definitions of key terms used throughout the report Important Notice The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions, and assume legal responsibility[3] - Company head Wang Laichun, chief accountant Wu Tiansong, and head of accounting department Chen Huiyong declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents The report's table of contents clearly lists nine main chapters and their starting page numbers, covering company profile, financial indicators, MD&A, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data - The report's table of contents includes nine main chapters, such as Company Profile, Management Discussion and Analysis, and Financial Report[6] Reference Documents Reference documents include financial statements signed by the company head and chief accountant, originals of all publicly disclosed company documents and announcements during the reporting period, and other relevant materials - Reference documents include financial statements signed and sealed by the company head and chief accountant[8] - Originals of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period[9] Definitions This section provides definitions for common terms used in the report, including full and abbreviated names of the company, major subsidiaries, and affiliated companies, ensuring accurate understanding of the report's content - "Company" or "Luxshare Precision" refers to Luxshare Precision Industry Co., Ltd[11] - Lists full and abbreviated names of multiple subsidiaries and affiliated companies, such as Luxshare Limited, Luxshare-ICT Co., Ltd., etc[11][13] Part II Company Profile and Key Financial Indicators This section outlines the company's fundamental information, contact details, and presents a comprehensive overview of its key accounting data and financial performance indicators Company Profile Introduces basic information such as the company's stock abbreviation, code, listing exchange, Chinese and English names, and legal representative - Stock Abbreviation: Luxshare Precision, Stock Code: 002475, Listing Exchange: Shenzhen Stock Exchange[15] - Company Legal Representative: Wang Laichun[15] Contact Persons and Information Provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email - Board Secretary: Xiao Yunxi, Securities Affairs Representative: Chen Weihang[16] - Contact Number: 0769-87892475, Email: Yui.Hsiao@luxshare-ict.com (Board Secretary)[16] Other Information No changes in the company's contact information, information disclosure, or document storage locations during the reporting period, referring to the 2024 annual report for details - No changes in the company's registered address, office address, website, or email during the reporting period[17] - No changes in information disclosure and document storage locations during the reporting period[18] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 20.18% year-on-year, and net profit attributable to shareholders increased by 23.13%, but net cash flow from operating activities decreased by 169.05%. Total assets and net assets attributable to shareholders both increased Key Accounting Data and Financial Indicators | Indicator | This Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 124,503,174,115.60 | 103,597,974,358.37 | 20.18% | | Net Profit Attributable to Shareholders | 6,644,272,049.46 | 5,396,162,858.61 | 23.13% | | Net Cash Flow from Operating Activities | -1,657,810,282.39 | 2,400,779,434.55 | -169.05% | | Basic Earnings Per Share | 0.92 | 0.75 | 22.67% | | Total Assets | 244,354,584,895.23 | 223,827,584,433.26 | 9.17% | | Net Assets Attributable to Shareholders | 74,722,987,506.85 | 69,327,010,925.99 | 7.78% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports prepared under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - No differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[21] - No differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[22] Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to RMB 1.045 billion, primarily from government subsidies, fair value changes in financial assets, and entrusted investment income, after deducting income tax and minority interest impacts Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Disposal gains and losses of non-current assets | -4,183,555.74 | | Government subsidies recognized in current profit or loss | 374,721,088.12 | | Gains and losses from changes in fair value of financial assets and liabilities and their disposal | 507,725,961.32 | | Gains and losses from entrusted investment or asset management | 795,612,151.60 | | Other non-operating income and expenses apart from the above | -10,907,054.04 | | Other non-recurring gains and losses as defined | -157,495,638.34 | | Less: Income tax impact | 200,799,631.83 | | Minority interest impact (after tax) | 259,834,771.20 | | Total | 1,044,838,549.89 | - Other non-recurring gains and losses primarily represent investment income recognized from early termination of financial assets[25] Part III Management Discussion and Analysis This section provides an in-depth analysis of the company's main business operations, core competencies, financial performance, asset and liability status, investment activities, and significant risks during the reporting period Main Businesses During the Reporting Period The company's main businesses remained unchanged, focusing on consumer electronics, communication and data centers, and automotive sectors, leveraging AI-driven opportunities and strengthening vertical integration and smart manufacturing capabilities - The company's main businesses remained unchanged during the reporting period, as detailed in the "2024 Annual Report"[27] - The AI-centric technological revolution is reshaping the industry landscape, presenting structural development opportunities for high-end manufacturing enterprises[27] - The company continues to strengthen vertical integration and intelligent manufacturing capabilities, promoting balanced and healthy development across its three major business segments: consumer electronics, communication and data centers, and automotive[27] Consumer Electronics Business The consumer electronics industry is entering an AI-driven innovation cycle, with the company maintaining stable performance through deep cooperation with core clients, increased investment in new materials and technologies, and expanded collaboration in emerging areas like AR/VR and robotics - The consumer electronics industry is entering a new AI-driven innovation cycle, with accelerated adoption of AI PCs, AI phones, smart acoustics, and smart wearables[28] - The company continuously increases investment in the integrated development of new materials, technologies, processes, and manufacturing methods, possessing rapid mass production capabilities[28] - During the reporting period, the company's consumer electronics business performed steadily, successfully introducing multiple new product projects and deepening cooperation in emerging fields such as AR/VR, consumer 3D printing, and robotics[28] Communication and Data Center Business The explosive growth of AI applications is driving data center upgrades, and the company is capitalizing on AI computing infrastructure opportunities by offering integrated "copper, optical, electrical, and thermal" solutions, with high-speed, high-value-added products already in mass delivery and increasing market share - Artificial intelligence applications' explosive growth drives generational upgrades in global data center construction and network architecture, leading to a surge in AI computing demand[29] - The company provides integrated "copper, optical, electrical, and thermal" solutions, ranging from high-speed copper cable connections and high-speed backplane connectors to high-speed optical modules, server power supplies, and thermal management systems[29] - The company's share among global leading cloud service providers and AI server clients continues to increase, with multiple high-speed, high-value-added products already in mass delivery[29] Automotive Business As the global automotive industry deepens its electrification, intelligence, and connectivity, the company's automotive business focuses on core areas, developing vertical integration capabilities, continuously securing new project nominations from mainstream domestic and international automakers, and becoming a key driver for the company's second growth curve - The global automotive industry's electrification, intelligence, and connectivity processes continue to deepen, with software-defined vehicles driving E/E architecture evolution[30] - The company's automotive business focuses on core areas such as vehicle "vascular and nervous" systems, intelligent cockpit and driving assistance systems, intelligent chassis systems, and powertrain systems, forming vertical integration capabilities[30] - During the reporting period, the company's automotive Tier 1 business continued to secure new project nominations from multiple mainstream domestic and international automakers, serving as a key driver for the company's second growth curve[30] Analysis of Core Competencies The company's core competencies remained unchanged during the reporting period, with details available in the 2024 annual report - The company's core competencies remained unchanged during the reporting period, as detailed in the "2024 Annual Report"[31] Analysis of Main Business The company's main business revenue increased by 20.18% year-on-year, primarily due to business mergers and increased product shipments. Automotive interconnect products and precision components, and communication interconnect products and precision components businesses saw significant growth, while consumer electronics remained the primary revenue source Year-on-Year Changes in Key Financial Data | Indicator | This Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 124,503,174,115.60 | 103,597,974,358.37 | 20.18% | Increase due to business mergers and product shipments | | Operating Cost | 110,047,863,704.95 | 91,471,769,355.30 | 20.31% | Increase in shipments | | Selling Expenses | 563,980,503.79 | 438,835,653.56 | 28.52% | Increase in personnel salaries and benefits, and business expansion investments | | Administrative Expenses | 3,155,670,978.40 | 2,583,403,240.37 | 22.15% | Increase in personnel and salaries, office expenses, and material consumption | | Financial Expenses | -160,284,969.21 | -121,089,850.37 | -32.37% | Increase in exchange gains due to exchange rate fluctuations, partially offset by increased interest expenses | | Income Tax Expense | 841,924,446.73 | 399,166,917.03 | 110.92% | Increase in total profit and recognized deferred income tax expense | | R&D Investment | 4,593,537,528.74 | 4,219,509,106.10 | 8.86% | Increase in personnel and salaries, molds, material costs, and certification fees | | Net Cash Flow from Operating Activities | -1,657,810,282.39 | 2,400,779,434.55 | -169.05% | Primarily due to payments to suppliers for due invoices | | Net Cash Flow from Investing Activities | -15,832,056,511.79 | -17,265,928,518.63 | 8.30% | Primarily due to investment in wealth management products | | Net Cash Flow from Financing Activities | 26,161,616,069.88 | 22,533,990,010.87 | 16.10% | Primarily due to increased financing | | Net Increase in Cash and Cash Equivalents | 9,218,027,626.05 | 7,621,484,782.07 | 20.95% | Primarily due to increased financing activities, partially offset by operating expenditures | Operating Revenue Composition (by Industry/Product) | Industry/Product Segment | Amount This Period (RMB) | % of Operating Revenue | Amount Prior Year (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Computer Interconnect Products and Precision Components | 4,889,404,143.43 | 3.93% | 4,378,729,696.34 | 4.23% | 11.66% | | Automotive Interconnect Products and Precision Components | 8,658,405,441.06 | 6.96% | 4,755,589,128.13 | 4.59% | 82.07% | | Communication Interconnect Products and Precision Components | 11,097,738,351.52 | 8.91% | 7,465,480,875.24 | 7.21% | 48.65% | | Consumer Electronics | 97,798,777,919.92 | 78.55% | 85,547,840,770.73 | 82.57% | 14.32% | | Other Connectors and Other Businesses | 2,058,848,259.67 | 1.65% | 1,450,333,887.93 | 1.40% | 41.96% | - Consumer electronics business remains the company's primary revenue source, accounting for 78.55% of operating revenue, with a 14.32% year-on-year increase[34] - Automotive interconnect products and precision components business grew by 82.07% year-on-year, and communication interconnect products and precision components business grew by 48.65% year-on-year[34] Analysis of Non-Core Business During the reporting period, non-core businesses significantly contributed to total profit, with investment income accounting for 37.08%, mainly from financial asset investments and wealth management products. Fair value changes and asset impairment negatively impacted total profit Impact of Non-Core Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,017,958,132.60 | 37.08% | Investment income from financial assets measured at fair value and whose changes are recognized in current profit or loss, wealth management product income, share of profits from associates and joint ventures calculated based on shareholding, and gains from derecognition of financial assets | No | | Fair Value Change Gains/Losses | -641,461,754.44 | -7.88% | Unrealized gains and losses from financial assets measured at fair value and whose changes are recognized in current profit or loss | No | | Asset Impairment | -548,539,056.07 | -6.74% | Inventory write-downs and impairment of fixed assets | No | | Other Income | 420,689,958.43 | 5.17% | Government subsidies | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased. Cash and cash equivalents, short-term borrowings, and trading financial assets saw significant increases, while accounts payable and long-term borrowings decreased. Restricted assets primarily relate to deposits, mortgages, and pledged financing - Total assets at the end of the reporting period were RMB 244.35 billion, an increase of 9.17% from the end of the previous year[20] - Net assets attributable to shareholders were RMB 74.72 billion, an increase of 7.78% from the end of the previous year[20] Significant Changes in Asset Composition Cash and cash equivalents increased by 2.36% at period-end, mainly due to increased performance ensuring normal payments. Short-term borrowings significantly increased by 7.07% to supplement working capital. Accounts payable decreased by 8.53% due to business seasonality and payments to suppliers for due invoices Significant Changes in Asset Composition | Item | Amount at End of This Period (RMB) | % of Total Assets | Amount at End of Prior Year (RMB) | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 58,564,722,555.56 | 23.97% | 48,359,655,992.93 | 21.61% | 2.36% | Increased performance ensuring normal payments | | Accounts Receivable | 30,881,042,757.71 | 12.64% | 32,561,098,916.58 | 14.55% | -1.91% | Seasonal fluctuations and collection of due accounts | | Inventories | 34,137,067,620.91 | 13.97% | 31,702,675,549.03 | 14.16% | -0.19% | Increased performance | | Long-term Equity Investments | 8,955,737,250.99 | 3.67% | 7,488,295,934.01 | 3.35% | 0.32% | Primarily due to increased investment income recognized under equity method | | Short-term Borrowings | 55,844,304,206.80 | 22.85% | 35,313,128,924.26 | 15.78% | 7.07% | To supplement working capital needs | | Accounts Payable | 50,223,664,318.79 | 20.55% | 65,087,993,138.64 | 29.08% | -8.53% | Business seasonal fluctuations and payments to suppliers for due invoices | | Non-current Liabilities Due Within One Year | 11,717,003,483.42 | 4.80% | 2,256,471,507.26 | 1.01% | 3.79% | Long-term borrowings and lease liabilities due within one year | | Trading Financial Assets | 4,827,848,697.35 | 1.98% | 1,403,110,810.03 | 0.63% | 1.35% | Investments in forward foreign exchange and wealth management products | Major Overseas Assets The company had no major overseas assets requiring disclosure during the reporting period - The company had no major overseas assets during the reporting period[43] Assets and Liabilities Measured at Fair Value At the end of the reporting period, the company's financial assets measured at fair value totaled RMB 6.918 billion, with trading financial assets of RMB 4.758 billion primarily consisting of bank wealth management products. Financial liabilities totaled RMB 439 million, mainly derivative financial liabilities Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses This Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Subtotal of Financial Assets | 1,555,187,386.63 | -289,908,559.08 | 5,018,976,486.33 | | Accounts Receivable Financing | 1,106,284,192.29 | | 1,898,532,305.54 | | Total Above | 2,661,471,578.92 | -289,908,559.08 | 6,917,508,791.87 | | Financial Liabilities | 155,278,918.84 | -283,252,855.73 | 438,531,774.57 | - No significant changes occurred in the measurement attributes of the company's major assets during the reporting period[45] Asset Restrictions as of the End of the Reporting Period At the end of the reporting period, the company's restricted assets totaled RMB 21.278 billion, primarily including cash and cash equivalents, other current assets, and other non-current assets restricted for issuing bills and letters of credit, as well as fixed assets for mortgage financing and intangible assets for pledge financing Asset Restrictions as of the End of the Reporting Period | Item | Ending Book Value (RMB) | Type of Restriction | Description of Restriction | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,079,591,923.13 | Deposit | Restricted for issuing bills and letters of credit | | Fixed Assets | 2,865,505,662.54 | Mortgage | Fixed asset mortgage financing | | Intangible Assets | 605,831,508.94 | Pledge | Land use rights pledge financing | | Other Current Assets | 14,623,980,373.01 | Pledge | Restricted for issuing bills and letters of credit | | Other Non-current Assets | 1,103,566,997.83 | Pledge | Restricted for issuing bills and letters of credit | | Total | 21,278,476,465.45 | | | Analysis of Investment Status During the reporting period, the company's investment amount decreased by 32.54% year-on-year. Significant equity investments included the acquisition of shares in some WINGTECH Technology subsidiaries. Financial asset investments primarily comprised securities investments and derivatives for hedging purposes. The company had no use of raised funds - Investment amount during the reporting period was RMB 1.612 billion, a 32.54% decrease compared to the same period last year[46] - The company had no use of raised funds during the reporting period[56] Overall Situation During the reporting period, the company's investment amount was RMB 1.612 billion, a 32.54% decrease compared to the same period last year Overall Investment Situation | Indicator | Amount (RMB) | | :--- | :--- | | Investment Amount This Period | 1,612,226,801.50 | | Investment Amount Prior Year Period | 2,390,006,442.22 | | Change Percentage | -32.54% | Significant Equity Investments Acquired During the Reporting Period During the reporting period, the company acquired shares in a WINGTECH Technology subsidiary, with an investment amount of RMB 4.389 billion and a 100% shareholding, in the business type of consumer electronics system integration Significant Equity Investments Acquired During the Reporting Period | Investee Company Name | Business | Investment Method | Investment Amount (RMB) | Shareholding Ratio | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | WINGTECH Technology Subsidiary Shares | Consumer Electronics System Integration | Acquisition | 4,389,460,864.79 | 100.00% | Own Funds | Significant Non-Equity Investments in Progress During the Reporting Period The company had no significant non-equity investments in progress during the reporting period - The company had no significant non-equity investments in progress during the reporting period[49] Financial Asset Investments The company's financial asset investments include securities investments and derivative investments. Securities investments had a total book value of RMB 102 million at period-end. Derivative investments, primarily for hedging, had an investment amount of RMB 199 million at period-end, with a profit/loss of RMB 50.7726 million recognized during the reporting period Securities Investment Status | Type | Investment Cost (RMB) | Ending Book Value (RMB) | Ending Fair Value (RMB) | | :--- | :--- | :--- | :--- | | Domestic and Overseas Stocks | 94,420,138.94 | 65,001,637.56 | 66,036,823.37 | | Total | 94,420,138.94 | 65,001,637.56 | 66,036,823.37 | Derivative Investment Status (for Hedging Purposes) | Derivative Investment Type | Initial Investment Amount (RMB 10k) | Ending Investment Amount (RMB 10k) | Fair Value Change Gains/Losses This Period (RMB 10k) | % of Company's Net Assets at Period-End | | :--- | :--- | :--- | :--- | :--- | | Forward Contracts | 0 | 0 | 33,482.26 | 0.00% | | Options | 158,144.8 | 199,724.94 | 17,290.34 | 2.67% | | Total | 158,144.8 | 199,724.94 | 50,772.60 | 2.67% | - The company conducts foreign exchange derivative transactions following principles of legality, prudence, safety, and effectiveness, avoiding speculative or arbitrage trading, with overall controllable risks[53][54] - The company had no derivative investments for speculative purposes during the reporting period[55] Use of Raised Funds The company had no use of raised funds during the reporting period - The company had no use of raised funds during the reporting period[56] Significant Asset and Equity Sales The company did not sell any significant assets or equity during the reporting period - The company did not sell any significant assets during the reporting period[57] - The company did not sell any significant equity during the reporting period[58] Analysis of Major Holding and Participating Companies The company's major subsidiaries include Luxshare Precision Limited and Luxshare-ICT Co., Ltd., with businesses covering electronic product sales, cable assemblies, precision connector sales and services, and computer peripheral manufacturing. During the reporting period, the company established and acquired several new subsidiaries while deregistering two, but these had no significant impact on overall operations or performance Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Registered Capital | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luxshare Precision Limited | Subsidiary | USD 5 million | 178,810,598,916.99 | 16,087,383,977.97 | 114,633,812,371.81 | 1,928,417,792.99 | | Luxshare-ICT Co., Ltd. | Subsidiary | USD 153.2903 million | 114,463,792,402.23 | 8,094,860,213.68 | 34,192,788,809.73 | 542,399,873.88 | | Kunshan Luxshare-ICT Co., Ltd. | Subsidiary | RMB 2.32 billion | 35,258,329,754.81 | 8,312,498,788.05 | 11,548,579,186.02 | 306,538,394.33 | | Luxshare-ICT Precision Technology (Yancheng) Co., Ltd. | Subsidiary | RMB 6.264312296 billion | 49,026,952,545.58 | 17,401,943,313.78 | 34,475,941,780.37 | 806,761,341.69 | | Dongguan Luxshare Technology Co., Ltd. | Subsidiary | RMB 613.4058 million | 16,596,640,435.37 | 5,478,371,517.66 | 6,545,666,822.74 | 824,583,776.59 | - During the reporting period, the company established 10 new subsidiaries, acquired 7 subsidiaries, and deregistered 2 subsidiaries, but these had no significant impact on overall operations or performance[60] Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[63] Risks Faced by the Company and Countermeasures The risks faced by the company and its countermeasures remained unchanged during the reporting period, as detailed in the 2024 annual report - The risks faced by the company and its countermeasures remained unchanged during the reporting period, as detailed in the "2024 Annual Report"[63] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has formulated and approved a "Market Value Management System" by the Board of Directors to regulate market value management, protect investor interests, and enhance core competitiveness. The company has not disclosed a valuation enhancement plan - The company has formulated the "Market Value Management System," which was approved by the 7th meeting of the 6th Board of Directors[64] - The "Market Value Management System" aims to regulate market value management, protect the legitimate rights and interests of investors, establish the company's integrity image, and enhance core competitiveness[64] - The company has not disclosed a valuation enhancement plan[64] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has disclosed its "Dual Improvement in Quality and Returns" action plan, which includes five major initiatives: focusing on core business, continuous innovation, standardized operations, enhanced information disclosure, and shared achievements, aiming to improve operational quality and shareholder returns. Controlling shareholder Mr. Wang Laisheng continues to increase his shareholding, demonstrating confidence in the company's future development - The company disclosed the "Announcement on the 'Dual Improvement in Quality and Returns' Action Plan" on February 18, 2024[65] - The action plan includes five major initiatives: focusing on core business, continuous innovation, standardized operations, enhanced information disclosure, and shared achievements[65][67][68] - The company's cumulative R&D investment over the past three years totaled RMB 25.192 billion, holding 7,164 invention patents[67] - The company's cumulative dividends over the past three years totaled RMB 4.53 billion, with cumulative dividends since listing reaching RMB 7.652 billion[69] - Mr. Wang Laisheng, one of the company's actual controllers and Vice Chairman, plans to increase his shareholding in the company within 6 months from April 8, 2025, with an amount not less than RMB 200 million and not exceeding RMB 300 million[70] Part IV Corporate Governance, Environment, and Society This section details changes in the company's governance structure, profit distribution plans, employee incentive programs, environmental information disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period, with details available in the 2024 annual report - No changes occurred in the company's directors, supervisors, and senior management during the reporting period[72] Profit Distribution and Capital Reserve Conversion to Share Capital During This Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[73] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company continued to implement multiple stock option incentive plans (2019, 2021, 2022, and 2025), exercising or granting options to eligible grantees to motivate employees - The fifth exercise period for the 2019 stock option incentive plan's reserved grant became exercisable, with 207 grantees expected to exercise 3,249,094 stock options at an exercise price of RMB 13.05 per share[74] - The second exercise period for the 2021 stock option incentive plan's reserved grant became exercisable, with 303 grantees eligible to exercise 2,089,224 stock options at an exercise price of RMB 35.33 per share[75] - The second exercise period for the 2022 stock option incentive plan became exercisable, with 3,076 grantees expected to exercise 30,117,800 stock options at an exercise price of RMB 29.92 per share[77] - The 2025 stock option incentive plan initially granted 176.63174 million stock options to 3,106 grantees at an exercise price of RMB 25.35 per option[77][78] Environmental Information Disclosure The company and 10 of its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with provided inquiry indexes for each subsidiary's environmental information disclosure report - The company and 10 of its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[79] - Inquiry indexes for the environmental information disclosure reports of each listed enterprise are provided[79][80] Social Responsibility The company disclosed its "2024 Annual Sustainable Development Report" on April 26, 2025, detailing its fulfillment of social responsibilities - The company's "2024 Annual Sustainable Development Report" was published on Juchao Information Network on April 26, 2025[81] Part V Significant Matters This section covers critical events and disclosures, including commitments, related party transactions, litigation, and other material issues impacting the company during the reporting period Commitments During the reporting period, there were no unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were overdue at the end of the reporting period - No unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were overdue at the end of the reporting period[83] Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties During the reporting period, there were no non-operating funds occupied by controlling shareholders and other related parties from the listed company - No non-operating funds occupied by controlling shareholders and other related parties from the listed company during the reporting period[84] Illegal External Guarantees The company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[85] Appointment and Dismissal of Accounting Firms The company's semi-annual report was unaudited - The company's semi-annual report was unaudited[86] Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for This Period There was no non-standard audit report for the company during the reporting period - No non-standard audit report for the company during the reporting period[87] Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year There was no non-standard audit report for the company during the reporting period - No non-standard audit report for the company during the reporting period[87] Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[87] Litigation Matters The company had no significant litigation or arbitration matters during the reporting period. Other litigation and arbitration matters involved a total amount of RMB 66.9654 million, some of which have been concluded or are in progress, not expected to have a significant impact on the company - The company had no significant litigation or arbitration matters during this reporting period[88] - Other litigation (arbitration) matters involved a total amount of RMB 66.9654 million, some of which have been concluded or are in progress, not expected to have a significant impact on the company[89] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[90] Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers The company, its controlling shareholder, and actual controllers maintain good integrity, with no unfulfilled effective court judgments or large overdue debts - The company, its controlling shareholder, and actual controllers maintain good integrity, with no unfulfilled effective court judgments or large overdue debts[91] Significant Related Party Transactions During the reporting period, the company engaged in related party transactions related to ordinary operations, primarily involving the purchase of goods and services from, and sale of products to, related parties, with transaction prices adhering to market principles. The company had no other significant related party transactions such as asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships Related Party Transactions Related to Ordinary Operations (Purchases) | Related Party | Related Transaction Content | Amount This Period (RMB 10k) | % of Similar Transactions | Approved Transaction Limit (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | | Suzhou Luxshare | Purchase of goods, services | 113.76 | 0.00% | 1,000 | | BCS Romania | Purchase of goods, services | 2,193.93 | 0.02% | 7,000 | | BCS USA | Purchase of goods, services | 483.6 | 0.00% | 1,000 | | Dongguan Cowell | Purchase of goods, services | 770.39 | 0.01% | 3,500 | | Luxshare Investment | Purchase of fixed assets, lease fees, utilities | 1,131.89 | 0.01% | 8,000 | | Hong Kong Luxshare | Purchase of goods, services | 28,760.58 | 0.30% | 150,000 | Related Party Transactions Related to Ordinary Operations (Sales) | Related Party | Related Transaction Content | Amount This Period (RMB 10k) | % of Similar Transactions | Approved Transaction Limit (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | | Suzhou Luxshare | Sale of goods, services | 14,227.78 | 0.11% | 60,000 | | BCS USA | Sale of goods, services | 2,694.42 | 0.02% | 6,000 | | BCS Romania | Sale of goods, services | 166.82 | 0.00% | 1,000 | | Luxshare Investment | Sale of fixed assets, services | 25.71 | 0.00% | 1,000 | | Hong Kong Luxshare | Sale of goods, services | 74,285.37 | 0.60% | 150,000 | | Luxshare Equipment | Sale of goods, materials, fixed assets, services | 4,065.02 | 0.03% | 30,000 | | Chery New Energy | Sale of goods, services | 3,161.24 | 0.03% | 40,000 | | Anhui Ruijing | Sale of goods, services | 85,674.33 | 0.69% | 400,000 | | Hong Kong Cowell | Sale of goods, services | 50,217.43 | 0.40% | 280,000 | | Dongguan Cowell | Sale of fixed assets, services | 2,261.92 | 0.02% | 15,000 | - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[95] - The company had no related party transactions involving joint external investments during the reporting period[96] - The company had no related party creditor-debtor relationships during the reporting period[97] Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters. The company provided guarantees for its subsidiaries, with an actual guarantee balance totaling RMB 70.8701 million. Entrusted wealth management products had an ending balance of RMB 476 million, with no overdue unrecovered amounts - The company had no entrustment, contracting, or leasing situations during the reporting period[101][102][103] Significant Guarantees At the end of the reporting period, the company's actual guarantee balance for its subsidiaries totaled RMB 70.8701 million, primarily for joint liability guarantees to LUXSHARE PRECISION LIMITED. The total guarantee amount accounted for 0.00% of the company's net assets Company Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (RMB 10k) | Actual Guarantee Amount (RMB 10k) | Guarantee Type | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | LUXSHARE PRECISION LIMITED | 70,870.14 | 70,870.14 | Joint Liability Guarantee | Five years | No | Yes | - At the end of the reporting period, the total approved guarantee limit for subsidiaries was RMB 830.3302 million, with an actual guarantee balance of RMB 0.7809 million[107] - The total actual guarantee amount accounted for 0.00% of the company's net assets[107] Entrusted Wealth Management During the reporting period, the company's entrusted wealth management amount and outstanding balance were both RMB 476 million, primarily bank wealth management products, with no overdue unrecovered amounts Entrusted Wealth Management Status | Specific Type | Amount of Entrusted Wealth Management (RMB 10k) | Outstanding Balance (RMB 10k) | Overdue Unrecovered Amount (RMB 10k) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | 475,806.28 | 475,806.28 | 0 | | Total | 475,806.28 | 475,806.28 | 0 | Other Significant Contracts The company had no other significant contracts during the reporting period - The company had no other significant contracts during the reporting period[109] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[110] Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters[111] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and shareholdings of directors, supervisors, and senior management Share Change Status During the reporting period, the company's total shares increased by 13,580,200 shares, mainly due to 13,579,867 new shares from stock option exercise and 333 shares from convertible bond conversion. Restricted shares decreased, while unrestricted shares increased Share Change Status | Share Category | Number Before This Change (shares) | Increase/Decrease in This Change (shares) | Number After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 17,991,987 | -4,847,557 | 13,144,430 | | II. Unrestricted Shares | 7,219,824,257 | 18,427,757 | 7,238,252,014 | | III. Total Shares | 7,237,816,244 | 13,580,200 | 7,251,396,444 | - During the reporting period, the company's shares increased by 13,579,867 shares due to independent exercise of stock options by grantees under the stock option incentive plan[114] - During the convertible bond conversion period, the cumulative number of converted shares was 333 shares[115] Changes in Restricted Shares During the reporting period, the company's total restricted shares decreased by 5,221,348 shares, mainly due to the release of restrictions on some senior management shares Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released This Period (shares) | Restricted Shares Increased This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Qian Jiwen | 193,500 | 0 | 253,494 | 446,994 | Senior Management Restricted Shares | | Wang Laisheng | 11,579,735 | 0 | 0 | 11,579,735 | Senior Management Restricted Shares | | Li Wei | 1,889,963 | 1,889,963 | 0 | 0 | Senior Management Restricted Shares | | Wang Tao | 2,132,910 | 2,132,910 | 0 | 0 | Senior Management Restricted Shares | | Huang Dawei | 1,198,475 | 1,198,475 | 0 | 0 | Senior Management Restricted Shares | | Total | 17,991,987.00 | 5,221,348.00 | 373,791.00 | 13,144,430.00 | | Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[121] Number of Shareholders and Shareholding Status At the end of the reporting period, the total number of ordinary shareholders was 399,568. The controlling shareholder, Luxshare Limited, held 37.67% of shares, with some shares pledged. Hong Kong Securities Clearing Company Limited was the second largest shareholder, holding 4.73% - The total number of ordinary shareholders at the end of the reporting period was 399,568[122] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Luxshare Limited | Overseas Legal Person | 37.67% | 2,731,537,636 | Pledged 1,046,300,000 shares | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 4.73% | 343,116,366 | Not applicable | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | Other | 1.24% | 90,104,524 | Not applicable | | China Securities Finance Corporation Limited | Domestic Non-State-Owned Legal Person | 1.16% | 84,428,888 | Not applicable | | China Construction Bank Corporation - E Fund CSI 300 ETF Initiated Fund | Other | 0.89% | 64,422,297 | Not applicable | | Central Huijin Asset Management Co., Ltd. | State-Owned Legal Person | 0.80% | 58,041,012 | Not applicable | | Industrial and Commercial Bank of China Co., Ltd. - ChinaAMC CSI 300 ETF | Other | 0.65% | 47,242,344 | Not applicable | | Bank of China Limited - Harvest CSI 300 ETF | Other | 0.56% | 40,715,285 | Not applicable | | E Fund Management - Agricultural Bank of China - E Fund China Securities Financial Asset Management Plan | Other | 0.53% | 38,656,343 | Not applicable | | ChinaAMC - Agricultural Bank of China - ChinaAMC China Securities Financial Asset Management Plan | Other | 0.53% | 38,576,831 | Not applicable | - Luxshare Limited is the controlling shareholder of the company[123] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, some directors and senior management increased their shareholdings, including Vice General Managers Hao Jie and Qian Jiwen, and Chief Financial Officer Wu Tiansong. Chairman Wang Laichun and Vice Chairman Wang Laisheng's shareholdings remained unchanged Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Increased This Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Wang Laichun | Chairman | 0 | 0 | 0 | | Wang Laisheng | Vice Chairman | 15,439,647 | 0 | 15,439,647 | | Hao Jie | Director, Vice General Manager | 0 | 135,197 | 135,197 | | Qian Jiwen | Director, Vice General Manager | 258,000 | 337,992 | 595,992 | | Wu Tiansong | Chief Financial Officer | 1,329,873 | 25,197 | 1,355,070 | | Total | | 17,027,520 | 498,386 | 17,525,906 | Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - No changes in the company's controlling shareholder during the reporting period[126] - No changes in the company's actual controller during the reporting period[126] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[127] Part VII Bond-Related Information This section provides comprehensive details on the company's outstanding debt instruments, including non-financial enterprise debt financing tools and convertible corporate bonds, along with relevant financial indicators Enterprise Bonds The company had no enterprise bonds during the reporting period - The company had no enterprise bonds during the reporting period[129] Corporate Bonds The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[130] Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company issued multiple tranches of short-term financing bills and medium-term notes, with a total outstanding balance of RMB 520 million, interest rates ranging from 1.65% to 2.2%, traded on the interbank market clearing house. The company had no overdue unpaid bonds Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (RMB 10k) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luxshare Precision Industry Co., Ltd. 2025 First Tranche Sci-Tech Innovation Bond | 25 Luxshare Precision SCP001 (Sci-Tech Bond) | 012581124 | May 05, 2025 | December 02, 2026 | 100,000 | 0.0171 | | Luxshare Precision Industry Co., Ltd. 2025 Second Tranche Sci-Tech Innovation Bond | 25 Luxshare Precision SCP002 (Sci-Tech Bond) | 012581299 | June 06, 2025 | December 06, 2025 | 120,000 | 0.0165 | | Luxshare Precision Industry Co., Ltd. 2025 First Tranche Medium-Term Note | Luxshare 25 Precision MTN001 | 102580164 | January 09, 2025 | January 13, 2028 | 150,000 | 0.0209 | | Luxshare Precision Industry Co., Ltd. 2025 Second Tranche Medium-Term Note | Luxshare 25 Precision MTN002 | 102580624 | February 17, 2025 | February 19, 2028 | 150,000 | 0.022 | - The company had no overdue unpaid bonds[132] Convertible Corporate Bonds The company issued RMB 3 billion convertible corporate bonds (Luxshare Convertible Bonds) in 2020, with a conversion period from May 10, 2021, to November 2, 2026. During the reporting period, the cumulative number of converted shares was 333, and the conversion price was adjusted multiple times, standing at RMB 56.47 per share at the end of the reporting period. The company's long-term credit rating is AA+, with a stable outlook - The company publicly issued RMB 3 billion convertible corporate bonds on November 3, 2020, with the bond abbreviation "Luxshare Convertible Bonds" and bond code "128136"[133] - The conversion period for "Luxshare Convertible Bonds" is from May 10, 2021, to November 2, 2026[134] - As of June 30, 2024, the company's convertible bond conversion price was RMB 56.47 per share, with a cumulative conversion of 333 shares during the reporting period[134][139] Convertible Bond Changes During the Reporting Period | Convertible Corporate Bond Name | Amount Before This Change (RMB) | Increase/Decrease in This Change (RMB) | Amount After This Change (RMB) | | :--- | :--- | :--- | :--- | | Luxshare Convertible Bonds | 2,998,986,600.00 | -19,000.00 | 2,998,966,500.00 | - According to the rating by Lianhe Credit Rating Co., Ltd., the company's long-term credit rating is AA+, and the convertible bond credit rating is AA+, with a stable outlook[143] Consolidated Statement Scope Loss Exceeding 10% of Net Assets at End of Prior Year During the reporting period, the company's consolidated statement scope loss did not exceed 10% of net assets at the end of the prior year - The company's consolidated statement scope loss did not exceed 10% of net assets at the end of the prior year during the reporting period[144] Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period At the end of the reporting period, the company's current ratio and quick ratio slightly improved, while the asset-liability ratio slightly increased. Net profit after deducting non-recurring gains and losses increased by 12.90% year-on-year, and both interest coverage ratio and EBITDA interest coverage ratio improved Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period | Item | End of This Reporting Period | End of Prior Year | % Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Current Ratio | 1.2223 | 1.2166 | 0.47% | | Asset-Liability Ratio | 62.87% | 62.16% | 0.71% | | Quick Ratio | 0.9545 | 0.9382 | 1.74% | | Net Profit After Deducting Non-Recurring Gains and Losses | RMB 5,599.4335 million | RMB 4,959.5584 million | 12.90% | | Interest Coverage Ratio | 10.57 | 9.23 | 14.52% | | Cash Interest Coverage Ratio | 1.20 | 6.26 | -80.83% | | EBITDA Interest Coverage Ratio | 17.80 | 16.53 | 7.68% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | Part VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and detailed notes on significant accounting policies, taxation, and financial statement items Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[147](in