2025-06-09-深交所-立讯精密_2024年年度报告（英文版）_345页_2mb

Luxshare Precision Industry Co., Ltd. 2024 Annual Report Summary

Core Content Overview

Luxshare Precision Industry Co., Ltd. (Luxshare-ICT), listed on the Shenzhen Stock Exchange with the stock code 002475, is a diversified and vertically integrated company operating in consumer electronics, communication and data center, automotive electronics, and healthcare sectors. The report outlines the company's financial performance, strategic initiatives, corporate governance, and social responsibilities for the 2024 fiscal year.

Key Financial Indicators

The company's total assets increased significantly to RMB 223.8 billion as of December 31, 2024, up 38.17% from 2023, while net assets attributable to shareholders rose by 23.12% to RMB 69.3 billion. However, the report notes that the lower of the net profit before and after non-recurring gains/losses in the past three years was negative, indicating potential uncertainty about the company's going concern status.

Main Business Analysis

(I) Consumer Electronics

• The consumer electronics industry showed a strong recovery in 2024, with improved profit margins.
• AI technology is increasingly integrated into products, including AI phones, AI PCs, and smart wearables, enhancing user experience.
• Foldable screen technology matured, enabling product diversification and price reduction, which drove market growth.
• The industry is entering a new innovation cycle, with AI expected to bring broader implementation and explosive growth in the future.

(II) Communication and Data Center

• 5G-A and 6G R&D progressed in parallel, with a focus on high-bandwidth, low-latency, and green technologies.
• Copper-based interconnection remains a key solution for data centers due to cost, power consumption, and heat dissipation efficiency.
• Silicon photonics and LPO (Linear Pluggable Optics) are accelerating the optical module market's transition to 1.6T.
• Efficient heat dissipation and increased energy demands are key drivers for the industry's growth.

(III) Automotive Electronics

• China's automotive industry, driven by electrification and intelligence, showed strong development momentum, especially in the new energy vehicle sector.
• Smart cockpits are evolving with edge AI, incorporating voice, gesture, and eye tracking technologies.
• Intelligent chassis technologies, including wire-controlled braking and skateboard chassis, are advancing rapidly.
• Domestic substitution is accelerating, with local enterprises reshaping the supply chain landscape.
• L3 driving assistance is being tested in pilot cities, and urban NOA (Navigation on Autopilot) is gaining traction in mainstream vehicles.
• Chinese automotive brands are enhancing international competitiveness through technological innovation in connected and new energy vehicles.

Non-recurring Gains/Losses

The company reported non-recurring gains/losses in 2024 totaling RMB 1.67 billion, including:

• Gains from disposal of non-current assets: RMB 1.58 billion
• Government grants: RMB 933 million
• Fair value changes in financial assets: RMB 1.04 billion
• Gain on entrusted investment: RMB 906 million
• Other non-operating income and expenses: RMB 1.9 million and RMB -476 million

The company did not reclassify any non-recurring gains/losses as recurring during the reporting period.

Strategic Initiatives

• The company implemented a Market Value Management System and Value Enhancement Plan to improve its financial performance and market standing.
• The Quality Return Double Improvement Action Plan was also executed to enhance returns and quality.
• Luxshare-ICT received several industry accolades, including being ranked 1st among key enterprises in China's electronic components industry in 2024 and being awarded Fortune Global 500 recognition.

Corporate Governance

• The company's corporate governance is well-established, with all directors attending the board meetings reviewing the annual report.
• Internal controls were established and implemented, and the company conducted self-assessment and rectified non-compliance issues.
• The Board of Directors, Board of Supervisors, and executives are responsible for ensuring the accuracy and completeness of the report.
• The auditor for the company is BDO China Shu Lun Pan Certified Public Accountants LLP, with the report signed by QIANG Guiying and ZHANG Yehua.

Social Responsibility and Environmental Commitments

• The company emphasized environmental and social responsibilities, including efforts in poverty alleviation and rural revitalization.
• It outlined its environmental policies and social responsibility initiatives, contributing to sustainable development.

Significant Matters

• The company did not distribute bonus shares or transfer capital reserves to the share capital.
• No significant related-party transactions, illegal guarantees, or accounting policy changes were reported.
• No delisting risks or bankruptcy/reorganization matters were disclosed.
• The company ensured compliance with all regulations and maintained integrity in its operations.

Shareholding and Securities

• There were no changes in the company's main business or controlling shareholder.
• The company did not engage in securities offerings during the reporting period.
• The share repurchase program was implemented, though details are limited.

Conclusion

Luxshare Precision Industry Co., Ltd. demonstrated strong growth in 2024, driven by advancements in AI, communication, and automotive technologies. Despite some financial uncertainties, the company maintained a robust financial position and implemented strategic initiatives to enhance value and market competitiveness. The report also highlights the company's commitment to corporate governance, social responsibility, and compliance with regulatory standards.