LUXSHARE-ICT(SZ:002475) Feng Huang Wang Cai Jing·2025-08-22 06:14Core Viewpoint - The article highlights the struggles of a small supplier, Dongguan Maruhon Electronics, in its partnership with Luxshare Precision, which has led to significant financial losses and operational challenges for the supplier [1][3]. Group 1: Contractual Issues - In 2020, Maruhon Electronics signed a procurement contract with Luxshare's subsidiary, Dongguan Lide Precision, with an initial order estimate of 20 million units per year, promising a net profit margin of 20% [4][5]. - Over four years, the actual order volume was only 1,786 million units, about 25% of the estimated demand, resulting in a loss of nearly 20 million [5][6]. - The contract allowed Luxshare to adjust order quantities and cancel orders without legal repercussions, which Maruhon claims is an unfair "霸王条款" (unreasonable clause) [8][9]. Group 2: Operational Challenges - Maruhon faced significant operational difficulties, including relocating production lines multiple times at Luxshare's request, which incurred high costs and logistical challenges [15][19]. - The company experienced a drastic reduction in workforce due to unstable order volumes, leading to a loss of skilled employees [29]. Group 3: Financial Strain - Maruhon had to take loans to sustain operations, leading to cash flow issues and increased debt, including interest payments on delayed invoices [26][28]. - The company entered a supply chain financing agreement with Luxshare, which extended payment terms and required Maruhon to pay interest on early payments, further straining finances [26][27]. Group 4: Legal Actions - In 2025, Maruhon decided to sue Luxshare and Lide Precision due to the financial and operational damages incurred, with the case currently in civil litigation [7][34]. - Maruhon claims that Luxshare's actions have severely impacted its business viability, leading to a sense of betrayal and confusion about the partnership [34][37].