Core Viewpoint - Luxshare Precision Industry Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities, Goldman Sachs, and CICC as joint sponsors [1] Company Overview - Luxshare Precision is a leading global precision manufacturing technology company, providing integrated development and manufacturing solutions across various fields, including consumer electronics, automotive electronics, and data centers [3] - The company has a unique full-stack development and manufacturing platform, deeply involved in product design, R&D, production, and after-sales service, serving over 100 Fortune Global 500 clients [3] Market Position - According to Frost & Sullivan, Luxshare ranks fourth globally and first in mainland China in the precision manufacturing solutions (PIMS) industry by revenue in 2024 [3] - The company has the most comprehensive and diversified product portfolio among global precision manufacturing solution providers [3] Market Growth - The global precision manufacturing solutions market is expected to grow from RMB 9.47 trillion in 2025 to RMB 12.18 trillion in 2029, with a compound annual growth rate (CAGR) of 6.5% [4] - Growth is driven by increasing demand for high-precision products in end markets such as automotive electronics and data centers, as well as advancements in technologies like AI and robotics [4] Financial Performance - Revenue for Luxshare in 2022, 2023, and 2024 is projected to be RMB 214.03 billion, RMB 231.91 billion, and RMB 268.79 billion, respectively [5] - The company has shown rapid revenue growth in automotive electronics and data center segments, with CAGRs of 49.6% and 19.6%, respectively [5] - Net profits for the same years are estimated at RMB 10.49 billion, RMB 12.24 billion, and RMB 14.58 billion [5]

Core Viewpoint - Lixun Precision is a leading global precision manufacturing technology company with a diversified business model covering consumer electronics, automotive electronics, and communication and data centers, providing integrated development and manufacturing solutions [1] Business Operations and Model - The company operates across multiple sectors, offering over 500 product categories and more than 260 manufacturing processes [1] - Key product examples include audio and video transmission harnesses and connectors in consumer electronics, complete vehicle harnesses and connectors in automotive electronics, and high-frequency computing transmission harnesses in communication and data centers [1] Revenue and Growth - Lixun Precision's revenue is projected to grow steadily from RMB 214 billion in 2022 to RMB 268.8 billion in 2024 [2][3] - The automotive electronics segment is expected to experience a compound annual growth rate (CAGR) of 49.6% from 2022 to 2024, while the communication and data center segment is projected to grow at a CAGR of 19.6% during the same period [3] Profitability - Net profit is anticipated to rise from RMB 10.5 billion in 2022 to RMB 14.6 billion in 2024, indicating a consistent upward trend [4][5] - The growth in net profit aligns closely with revenue growth, reflecting effective cost control and enhanced profitability during business expansion [5] Margin Stability - Gross margin has remained relatively stable from 2022 to 2024, indicating a solid operational performance within the industry [6] - Net margin is also on an upward trajectory, increasing from approximately 4.91% in 2022 to about 5.43% in 2024 [8] Business Line Structure - The consumer electronics segment currently holds a significant share of revenue, but the rapid growth of automotive electronics and communication and data center segments may alter this distribution [9] Competitive Position - Lixun Precision ranks fourth globally and first in mainland China in the precision manufacturing solutions (PIMS) industry as of 2024, maintaining a leading position across major business lines [13] - The company benefits from a comprehensive and diversified product portfolio and a globally advanced intelligent development and manufacturing system [13] Customer Base - The company serves over 4,000 clients, including more than 100 Fortune Global 500 companies, covering leading brands in consumer electronics, automotive electronics, and communication and data centers [14] Supply Chain Considerations - While specific supplier information is not disclosed, the stability of raw material supply is crucial for production operations [17] Management Team - The core management team possesses extensive industry experience, which is vital for navigating challenges and seizing growth opportunities [19]