Core Viewpoint - Luxshare Precision is advancing its acquisition of a portion of the equity and assets of subsidiaries from Wingtech Technology, with all preconditions for the transaction being met and the transfer procedures progressing smoothly [1] Group 1: Business Expansion and Profitability - Luxshare Precision's rapid development of new projects in the consumer electronics sector, alongside its strong profitability, is a critical growth direction beyond its major clients in consumer electronics, automotive, and communications [1] - The acquisition strategy of "internal growth + external mergers" is key to Luxshare's continuous expansion and vertical integration in the consumer electronics sector, enhancing its overall competitiveness [2] - The acquired companies possess mature R&D and manufacturing systems in the ODM and OEM fields for mobile phones, tablets, laptops, and small appliances, which will complement Luxshare's existing precision manufacturing capabilities [2] Group 2: Competitive Advantage and Market Position - The acquisition will significantly enhance Luxshare's ODM scale and competitiveness, as Wingtech holds over 20% market share in the global mobile ODM market, serving major brands like Samsung and Xiaomi [3] - Luxshare aims to leverage this acquisition to provide integrated ODM services to well-known clients, increasing customer loyalty and opening new markets for its electronic components and modules [3] - The company has diversified its product offerings across various categories, including AI-driven products, positioning itself to benefit from the upcoming wave of product innovation driven by generative AI [3] Group 3: Global Strategy and Operational Efficiency - Luxshare's acquisition of Wingtech's assets in India marks a significant step in its global strategy, with operations fully taken over as of July 2, 2025 [4] - The company aims to build a "manufacturing + technology" dual-driven global industrial ecosystem over the next three to five years, focusing on deep collaboration with global tech leaders and international cooperation on technology and standards [4] - Luxshare has established a global closed-loop system for "design-manufacturing-service," enhancing its capacity and supply chain resilience, which supports its expansion in consumer electronics and automotive sectors [5] Group 4: Risk Management and Resilience - The company has developed a robust global capacity layout, with established production bases and R&D centers in countries like Vietnam, India, Mexico, and Germany, enhancing its risk management capabilities [5] - Luxshare's strong risk resilience and optimized global capacity layout position it to benefit from the trend of concentration in the supply chain, allowing it to flexibly meet customer market demands [5] - The company is creating a more resilient business model that not only serves existing clients well but also opens up new customer opportunities, thereby creating new growth avenues [5]

Core Viewpoint - Despite facing challenges such as international geopolitical conflicts and global economic downturns, Luxshare Precision (立讯精密) has achieved impressive financial results in 2024, with significant growth in revenue and net profit [2][4]. Financial Performance - In 2024, Luxshare Precision reported total revenue of 268.8 billion yuan, a year-on-year increase of 15.91%, and a net profit attributable to shareholders of 13.37 billion yuan, up 22.03% [2]. - For Q1 2025, the company continued its growth trajectory, achieving revenue of 61.79 billion yuan, a 17.9% increase year-on-year, and a net profit of 3.04 billion yuan, up 23.17% [2]. Business Segments - The consumer electronics segment remains the core business, generating 224.09 billion yuan in revenue in 2024, reflecting a 13.65% increase, solidifying the company's leading position in the industry [4]. - Luxshare's ODM (Original Design Manufacturer) business has expanded significantly, covering popular product categories such as smart AR/VR glasses, smart acoustic products, and smart home devices [3][6]. Strategic Initiatives - The company is enhancing its ODM capabilities through acquisitions, including a recent agreement with Wistron Technology to acquire certain assets related to system integration, aiming to strengthen its position beyond Apple-related products [4][6]. - Luxshare is also diversifying its product offerings into automotive electronics, with revenue from this segment reaching 13.76 billion yuan in 2024, a 48.69% increase [9]. Market Trends and Future Outlook - The automotive electronics sector is viewed as a key growth area, with Luxshare focusing on components such as wiring harnesses and smart cockpit systems, capitalizing on the trends of electrification and connectivity in the automotive industry [9][10]. - The company has initiated a strategic acquisition of Leoni Group, a century-old automotive wiring harness manufacturer, to enhance its competitive edge in the global automotive market [10]. - Looking ahead to 2025, Luxshare aims to maintain its core business focus while leveraging its unique advantages to create more value for customers and the industry [11].