Stock Code: 688400
2024
LUSTER LightTech Co. Ltd.Corporate Value and
Return Enhancement
Action PlanFocus on Primary Focus on Optimize Business Strengthen Business Technology Standardized Enhance the
Focus on
Shareholder
Development Improvement Management Operations Investment Value Returns
Contents P2 P4 P8
01-Focus on Primary 02-Focus on Technology 03-Optimize Business
Business Development Improvement Management
Build a Sustainable and Build a Competitive and Build a Steady Growth
High-value Company High-growth Company and High-quality
Company
P10 P12 P13
04-Strengthen 05-Enhance the 06-Focus on Shareholder
Standardized Operations Investment Value Returns
Build a Trustworthy and Build a Deeply Build a Profit-sharing
Highly Reputable Responsible and High- and High-growth
Company return Company Company
Continuously focus on improving quality and efficiency
Activate growth drivers and emphasize returns
www.lusterinc.com
Quality Efficiency and
Returns Improvement
Action PlanFocus on Primary Focus on
Business Technology Optimize Business
Strengthen
Standardized Enhance the
Focus on
Development Improvement Management Operations Investment Value
Shareholder
Returns
Preface
In response to the initiative of Shanghai Stock Exchange practice the "investors first" development concept of listed companies improve investor
returns safeguard the interests of all shareholders of LUSTER LightTech Co. Ltd. the Board of Directors has formulated the "2024 Quality
Efficiency and Returns Improvement Action Plan" based on confidence in the Company's future development prospects recognition of the
Company's value and practical fulfillment of social responsibilities. This Action Plan is intended to improve the management quality of the Company
through a series of specific measures promote the Company's high-quality sustainable development enhance investor returns and achieve a win-
win situation between the Company and investors.An aerial view of the "Industrial Artificial Intelligence Taihu Industrial Base" built by the Company in Wuzhong District Suzhou
www.lusterinc.comFocus on Primary Focus on Optimize Business Strengthen Focus on Business Technology Management Standardized
Enhance the Shareholder
Development Improvement Operations Investment Value Returns
I. Focus on Primary Business Development and Build a Sustainable and High-value Company
2024—Focus on "AI+Vision"
According to the "Guiding Opinions of Eight Ministries including the Ministry of
Industry and Information Technology on Accelerating the Transformation and
Upgrading of Traditional Manufacturing Industries" [Gong Xin Bu Lian Gui [2023]
No. 258] promoting the transformation and upgrading of traditional manufacturing
industries is a strategic choice to actively adapt to and lead a new round of
scientific and technological revolution and industrial change. It is related to the
overall establishment of a modern industrial system. China's emphasis on and
support for the transformation and upgrading of intelligent manufacturing will
inevitably further catalyze the demand for "AI+ vision" in the modern industrial
system.Grow after building the base. The high-quality sustainable
development of the Company's main business is the basis for
enhancing investor returns.In 2024 the Company will continue to focus on the business development of the main
channel consolidate the value investment foundation enhance its own investment
value and grow into a high-quality investment entity trusted by investors and a
sustainable and high-value company.www.lusterinc.comFocus on Primary Focus on
Business Technology Optimize Business
Strengthen Enhance the Focus on
Development Improvement Management
Standardized Shareholder
Operations Investment Value Returns
I. Focus on Primary Business Development and Build a Sustainable and High-value Company
In recent years the Company has continued to focus on the main channel of machine vision improved the revenue structure and
maintained a high-quality development momentum. With the gradual reduction of the demographic dividend the enterprises are faced
with an increasingly prominent pressure on labor costs and the global manufacturing industry is met with intensifying competition.Empowering traditional industries and realizing the transformation and upgrading of intelligent manufacturing with the help of artificial
intelligence machine vision automation and other technologies is the glorious mission given to us by the times.LUSTER Business Sales Revenue CAGR Machine Vision Revenue Revenue Share
LUSTER continues to focus on the development
of the "AI+ vision" main channel business to RMB 2.64 billion 16.6% RMB 1.88 billion 71%
help customers realize digital and intelligent
production. 2.75 2.64 1.83 1.88
2.44
1.51
In recent years the Company has overcome the
difficulties of the external environment adhered 1.76 1.05
1.43
to empowering intelligent manufacturing and 0.82
creative content production with "AI+ vision".The machine vision main channel business has
achieved sustained and steady growth; the
overall business structure has been further
opt imized and the three st ra tegic t rack 2019年 2020年 2021年 202222年 202233年 201199年 20200年 2021年 200222年 2002233年businesses have obtained strategic outputs.www.lusterinc.comFocus on Primary Focus on Strengthen
Business Technology Optimize Business Enhance the
Focus on
Development Improvement Management
Standardized
Operations Investment Value
Shareholder
Returns
II. Focus on Technology Improvement and Build a Competitive and High-growth Company
Focus on technology R&D and product applications
Industrial Promotion by Quality
Understanding and assessing the current situation and developing
new quality productive forces are the new trend of modern economic Win by Intelligence
development the key focus of reshaping new competitive advantages
and the decisive force to stimulate new momentum in the new
development stage.The Company will continue to focus on "AI+ vision" business create
new industrialization forge new quality productivity and lead industrial
transformation and upgrading by empowering intelligent industrial
manufacturing and intelligent production of cultural metaverse content.The Company will continue to increase its strategic research and
development investment in the field of AI and vision and focus on
building sustainable technology product innovation capabilities and
talent t raining systems. Based on the four core under ly ing
technologies of advanced imaging intelligent algorithms intelligent
software and intelligent automation we will strengthen the abilities to
transform technology into product applications and continue to launch
new products that are deeply integrated with various industries.www.lusterinc.comFocus on Primary Focus on Strengthen Focus on
Business Technology Optimize Business Enhance the
Development Improvement Management
Standardized
Operations Investment Value
Shareholder
Returns
II. Focus on Technology Improvement and Build a Competitive and High-growth Company
Committed to growing into a global leader in
the field of visual artificial intelligence and
optoelectronic information
0102030405
Effective talent Continuously Actively promote
innovation Effective improved technologies Continuously maintain technological
Incentive and training R&D management Innovative results- adequate investment exchanges and
system based protection in R&D cooperationmechanisms mechanism in China and abroad
In 2024 the Company will take the above specific measures to further strengthen the technological leadership in advanced imaging intelligent algorithms
intelligent software and intelligent automation improve the speed accuracy and stability in various application scenarios enhance the intelligent analysis
function of industrial software improve the overall level of machine vision technology and expand the industrial scenarios that can be applied. According to
the needs of customers on the application side we will also increase the application technology research and development in consumer electronics new
energy cultural metaverse and other industries actively study the algorithms in complex scenarios human eye limit shallow defect detection all-round body
collection system and other industry problems. Moreover we will continue to provide customers with creative products and solutions with technological
innovation serve more production processes and production processes in various industries and China's intelligent manufacturing.www.lusterinc.comFocus on Primary Focus on Strengthen Focus on
Business Technology Optimize Business Standardized Enhance the
Development Improvement Management
Shareholder
Operations Investment Value Returns
II. Focus on Technology Improvement and Build a Competitive and High-growth Company
R&D Results R&D Investment
The Company continues to increase investment in research
As of December 31 2023 Major awards received in 2023 and development working for long-term strategic
Cumulative number of development.patent applications 2023 R&D Investment 460
1435 Science and Technology 376Progress Award of The Chinese
Institute of Electronics 281
Cumulative number of
patents awarded 2023 176154
709 Beijing Technology Invention Award
Cumulative number of national Conference on Computer Vision 20199年 2 2002200年 2 2002211年 2 200222年 2 2002233年industry and group standards and Pattern Recognition
issued by the Company (CVPR) 2023 Industrial Quality
19 R&D Investment CAGR Inspection Challenge
RMB 460 million 31%
R&D Team
R&D Expense Ratio Year-on-year
R&D Personnel Percentage in Corporate Percentage of Increase of the Ratio
Employees Postgraduates and Doctors
777 39% about 50% 16.3% 2.7PCT
www.lusterinc.comFocus on Primary Focus on
Business Technology Optimize Business
Strengthen Focus on
Standardized Enhance the Shareholder
Development Improvement Management Operations Investment Value Returns
II. Focus on Technology Improvement and Build a Competitive and High-growth Company
The Company is based on the four major underlying technologies realizing technological upgrades and new
product applications and effectively enhancing market competitiveness.Advanced Imaging Intelligent Algorithms
In 2023 the Company enhanced i ts product The Company has further advanced the capability
capabilities of 3D structured light imaging multi- of deep learning modules through its intelligent
spectral imaging infrared imaging and other China Leading High-performance Autonomous algorithm software platform VisionWARE and
technologies in advanced imaging technology and Underlying Algorithm Framework establishes the deep learning algorithm platform
Visible Clear Intelligible launched a series of self-developed cameras as F.Rain for the industrial field. It builds large visual
breakthrough solutions to the detection problems of models on the basis of millions of industrial data
High Resolution High-speed Spectral Stereoimagi High Sensitivity multi-pixel imaging 3D imaging and internal defect
Imaging Imaging Imaging ng Imaging sets and fills the gap of large visual models in the imaging. Widely used in consumer electronics Detecti Recogn Positio Color Measur Basics
on ition ning ement indust r ia l f ie ld . Through the AIGC defect
semiconductors new energy automobiles and other
scenarios these products have further improved the MR: Model Recognition DL: F. Brain KE: Cognitive generation model the problem of small samples Inference
self-developed supply ratio of cameras. of industrial defect detection is solved.Intelligent Software Intelligent Automation
In the face of different downstream processes In terms of intelligent automation capabilities the
and management processes o f indust r ia l Company relies on the addition of vision and AI
Cloud Edge Coordination Supports Rapid manufacturing the Company has established a 5- algorithms breaking through the difficulties of
Growth of Intelligent Manufacturing layer software technology architecture for the Precision force control and Hand-Eye- flexible manufacturing small and precise internal
Factory GMQM KG structure and high precision requirements and Whole Line/Whole Factory F.Brain end edge and cloud respectively and has Force Coordination
Cloud Quality Closed-loop Deep Learning Knowledge Mapping
Provide Integrated Intelligent Equipment f i rs t achieved a 99% success rate of wire
Production PrintingPlus
combined production data and industry expertise
Integrated Multi-station SuperTrain HyperTrain
Line Edge multi-detection Station Cockpit Cockpit with knowledge graph and intelligent analysis. A Solutions fastening and micro screw locking in the industry
Machine Image Intelligent Visual System closed loop of big data quality management is solving the "bottleneck" problem of the traditional
End Processing Card Camera
thus realized further improving the ability of data automation industry and achieving a high degree
analysis and management. of coordination of hand eye force and brain.www.lusterinc.comFocus on Primary Focus on Optimize Business Strengthen Focus on Business Technology Standardized Enhance the
Development Improvement Management Operations Investment Value
Shareholder
Returns
III. Optimize Business Management and Build a Steady Growth and High-quality Company
We will optimize management in terms of operational efficiency talent incentives corporate
culture and managerial responsibility.Improve operational efficiency management Strengthen corporate management culture
I n 2024 the Company w i l l co n t i n u e t o d eep en t h e I PD Core Values: Promote the development of the industry as the
transformation effectively integrate the IPD process with its responsibility and work hard together. Turn knowledge into
various business scenarios and form an IPD process and wealth and attribute wealth to its true creators.integrated management system that matches its business model
and current development stage. The Company will also further In 2024 the Company will continue to implement the core values
p r o m o t e t h e u p g r a d i n g o f i n f o r m a t i o n t e c h n o l o g y so that employees can gain a deeper understanding of its long-
comprehensively upgrade information technology on the financial term vis ion st imulate the internal power of corporate
FSSC fee control system marketing CRM system optimization development and help the team make efficient decisions. This
supply chain SRM system human attendance management system will also enhance the overall image of the Company attract more
and business organization performance management and customers and partners and bring more market opportunities
constantly improve internal operating efficiency. and higher operating efficiency to the Company.Optimize talent incentive mechanism Strengthen the responsibilities of critical minority
The Company will continue to vigorously advance the existing The Company has put in place an incentive and restraint mechanism
employee training plan deepen the establishment of talent in line with the requirements of modern enterprise management
management system and establ ish specia l t ra in ing and system clarified the responsibilities of the management team
development channels for core talents. included business performance and compliance management into
the scope of compensation performance assessment and
In the future the Company will continue to implement restricted encouraged them to perform their duties efficiently. The Company
stock incentive plans or employee stock ownership plans. This will will also further strengthen close communication with the "critical
fully motivate the core backbones and produce corresponding minority" personnel track the implementation of the commitments
constraints unify the interests of employees the Company and of relevant parties constantly improve their risk awareness and
shareholders and thus inject strong impetus into the long-term and compliance awareness and effectively promote high-quality
steady development of the Company. corporate development.www.lusterinc.comFocus on Primary Focus on Strengthen Focus on
Business Technology Optimize Business Standardized Enhance the
Development Improvement Management Operations Investment Value
Shareholder
Returns
III. Optimize Business Management and Build a Steady Growth and High-quality Company
We will give play to the leading role of key minority personnel and independent directors."Critical Minority" Effectively Give Play to the
DIn eremspoonnses ttor athtee le "adCinrgi taincda bla cAkbcotnieo rnolse "of the "key minority" ThPel tuhrreae ilnidsetpiecnd Eenft fdeireccttoivrse apnpeoisntsed obyf the Company are all senior professionals in
personnel in the Company the Company will take the following measures various fields. With their profound professional knowledge they help the Company make more
in 2024: scienItinficd aendp setannddarediznedt dDeciirsieoncst oanrds pl ay an important role in participating in decision-
making supervising and balancing and providing professional consultation and give full play
1-Regularized training to ensure compliance in execution of duties to the role of independent directors in guaranteeing the interests of minority shareholders.
The Company will strengthen the compliance training for the directors supervisors and
executives provide regular and long-term training and urge directors supervisors and
executives to participate in the special training organized by CSRC Shanghai Stock Ms. Wang Kun Accounting Professional
Exchange China Association for Public Companies Beijing Association for Public
Companies law firms and continuous supervision institutions. Such training is to ensure that Tenured Associate Professor at the School of Economics and Management Tsinghua University with more
the directors supervisors and executives can effectively identify and manage potential than 20 years of teaching experience a doctorate degree and associate professor qualification
compliance risks while leading the development of the Company and provide a solid Provide professional advice for the Company's financial strategic planning internal control investment decision-
guarantee for sustainable corporate development. making cost control and revenue analysis and help the Company optimize its financial management and improve
the efficiency and quality of auditing.
2-Clarified responsibilities and powers to improve the quality of decision-
making Mr. Xi Xiaohong Legal Professional
The Company has further clarified the individual functions and responsibilities of the
management established an internal system that connects and constrains each other and Senior Consultant of DOCVIT Law Firm Master of Law from Cambridge University concurrently serving as
put in place a well-defined accountability mechanism to track and evaluate the results of Director and Supervisor for multiple companies.decisions ensure that the directors supervisors and executives take responsibility for their Provide professional advice on risk assessment and review in corporate governance compliance management
decisions and encourage them to make high-quality decisions. intellectual property protection making major decisions etc.
3—Coupling compensation with performance for efficient decision-making Mr. Sun Fuchun Artificial Intelligence Professional
The Company has introduced a compensation policy that is closely linked with performance
assessment and annual business performance to encourage the "key minority" personnel to Professor at the Department of Computer Science and Technology Tsinghua University with more than 20
actively improve the corporate performance and pay attention to the shareholders' returns. years of teaching experience a doctorate degree and professor qualification
This is conducive to promoting their efficient decision-making realizing the risk sharing and Guide LUSTER on the direction of AI technology and product development and provide professional advice and
benefit sharing between the "key minority" personnel and the Company and shareholders recommendations regarding technology investment product development and market expansion of the Company.and contributing to efficient corporate development.www.lusterinc.comFocus on Primary Focus on Optimize Business Strengthen Enhance the Focus on Business Technology
Development Improvement Management
Standardized Shareholder
Operations Investment Value Returns
IV. Strengthen Standardized Operations and Build a Trustworthy and Highly Reputable Company
We will adopt multiple measures to strengthen the normative operation capacity.
01020304
Standardize internal Strengthen internal Strengthen risk control Optimize quality of
systems training Realize sound information disclosure
Improve corporate Enhance compliance operation Enhance investor
governance awareness relations management
The Company w i l l f u r t he r re f i ne and LUSTER will strengthen the training T h e C o m p a n y w i l l f u r t h e r LUSTER wi l l s t r i c t l y fo l low the
implement the relevant requirements in its of directors supervisors executives s t r e n g t h e n i n t e r n a l r i s k requirements of laws and regulations
i n t e rna l gove rnance mechan i sm and
s t a n d a r d i z e i t s i n t e r n a l s y s t e m s i n and business leaders implement its m a n a g e m e n t n o r m a l i z e t h e put the interests of investors in a
combination with the latest regulations on information disclosure responsibility inspection and supervision at the more prominent position on the basis
independent directors and shareholders' matrix enhance the risk awareness business process level strict ly o f compl iance wi th in format ion
returns in the higher-level laws. and compl iance awareness of i n v e s t i g a t e t h e p r o b l e m s o f disclosure and investment conduct
The Company attaches great importance to
t h e i m p o r t a n t r o l e o f E S G w o r k f o r department heads involved in dereliction of duty violation of rules more adequate multi-directional and
enterp r i ses ac t i ve l y assumes soc ia l information disclosure and risk and d isc ip l ine promote more m u l t i - d i m e n s i o n a l t w o - w a y
responsibility incorporates ESG requirements m a t t e r s a n d e n s u r e t h e standardized and efficient business communication with investors and
into its medium and long-term development s t a n d a r d i z e d a n d c o m p l i a n t operation and effectively improve better achieve value transmission of
strategic goals and continuously improves operation of internal processes. the level of corporate governance. the Company.the corporate governance system centered on
sustainable development.www.lusterinc.comFocus on Primary Focus on
Business Technology Optimize Business
Strengthen Enhance the Focus on
Development Improvement Management
Standardized
Operations Investment Value
Shareholder
Returns
IV. Strengthen Standardized Operations and Build a Trustworthy and Highly Reputable Company
We will prioritize strengthening the management of information disclosure and investor
relations management and improving the standard operation level.Optimize quality of information Enhance investor relations management
disclosure In 2024 LUSTER will continue to enrich the means of investor communication broaden the channels of communication with
In 2024 the Company will complete the disclosure of investors improve corporate transparency and enhance the
information with higher quality standards to enhance recognition of the value of the Company in the capital market by
investors' trust in LUSTER and better realize our value the following measures:
transmission. Measures are as follows: 1- Actively carry out investor exchange activities. In addition to
1 - Adhere to orientation to investor needs highlight the the per formance presentat ion held dur ing the regular
importance and relevance of information disclosure performance disclosure the Company will also establish two-way
disclose information that is useful for investors to make and effective communication with investors through multiple
value decisions and pay part icular attention to the means and channels such as on-site visits Comein Finance
disclosure of key information such as the Company's Shanghai E interaction investor hotline and investor public
business development the situation of the industry in which mailbox.it operates and risk factors. 2- Continuously optimize the communication strategy promptly and accurately convey the phrased results of business operation
2 - Adhere to a starting point from investor needs enhance and research and development to investors achieve a deeper
the visualization of information disclosure and improve the level of understanding and trust and regularly report to the Board
readability and effectiveness of information disclosure with of Directors and management of the capital market consultation
the help of charts and other forms of key information thus and feedback information to ensure that the Board of Directors
help investors gain a more intuitive and vivid understanding and management promptly understand the market changes and
of the Company's operating results financial status and concerns improve the scientificity and rationality of management
development strategy. decisions.www.lusterinc.comFocus on Primary Focus on Optimize Business Strengthen Focus on Business Technology Enhance the Management Standardized Shareholder Development Improvement Operations Investment Value Returns
V. Enhance the Investment Value and Build a Deeply Responsible and High-return Company
We will coordinate endogenous and exogenousdevelopment. “ The Company will comply with laws and regulations fully utilize various tools of the capital market and practice the developmentThe Company continues to actively expand the Chinese and overseas strategy of combining business and capital. Through strategic
markets to match customer needs and has set up 21 global branches in investment mergers and acquisitions and other diversified means we
major provinces and cities across China the United States Vietnam India will focus on the core links and technical fields of the industrial chain
and other overseas markets. Since its listing the Company has actively make precise investments effectively promote the quality and
allocated upstream and downstream investment in the industrial chain efficiency of the primary business and inject new impetus and growth
improved the integration ability of the industrial chain and achieved high- potential for sustainable corporate development.quality collaborative development of various business sectors. As of the date
of disclosure of this Report the Company has made equity investments in 14
companies.In 2024 the Company will continue to pay attention to potential market ”
opportunities carry out investment work around the established strategic
development plan develop intensively and steadily actively explore the
integration and improvement of industrial layout through capitalization
operation mode and steadily improve its innovation ability comprehensive
competitiveness and long-term growth potential.www.lusterinc.comFocus on Primary Focus on
Business Technology Optimize Business
Strengthen Enhance the Focus on Standardized
Development Improvement Management Operations Investment Value
Shareholder
Returns
VI. Focus on Shareholder Returns and Build a Profit-sharing and High-return Company
Cash dividends
In 2024 the Company will firmly establish a sense of return
The Company has always attached great importance to investor returns and has continued to pay to shareholders assume the entity responsibil i ty of
cash dividends since its listing. The proportion of cash dividends has exceeded 30% and the enhancing its own investment value effectively return
Company has substantially returned investors with practical actions. investors and grow into a profit-sharing high-return
In 2024 the Company will continue to establish a scientific continuous and stable returns planning company. Measures are as follows:
and mechanism for investors support the guiding spirit of "active capital market" and evaluate 1- Attach great importance to improving the Company's own
ways to return investors such as medium-term dividends and dividends before the Spring Festival investment value consolidate the ability of scientific and
to enhance investors' sense of gain. technological innovation pay attention to the market's
reflection of the Company's value that is the health of the
Stock repurchase market value conduct in-depth analysis of the reasons for
The Company initiated two stock repurchase programs in October 2023 and in February 2024 abnormal fluctuations in the market value promptly adopt
respectively. stable measures such as buyback not reducing holdings or actively increasing holdings to maintain the Company's
As a basic institutional arrangement of the capital market stock repurchase is a good way for the market value.Company to reward investors. In the future the Company will take multiple measures to enrich the
means of investor returns uphold the sense of responsibility of the public companies share profits 2- Establish an internal long-term mechanism to maintain
with investors and actively return investors. investment value. The Company carries out market value management centered on the theme of "Building a
respected high market value and growth company
Cumulative repurchase through market value management and taking value as
amount of the above Cumulative repurchase Cash Dividend Amount Proposed Cash Dividend the main line". While ensuring the high-quality and
repurchase plan volume for the Year 2022 Amount for the Year 2023 As of March 31 2024 sustainable development of the primary business the As of March 31 2024 Company is determined to pursue sound and sustained
high market value growth.RMB87.0million 3.86 million Shares RMB57.9million RMB50.4million
Note: The profit distribution plan for the proposed cash dividend amount for the year 2023 still needs to be reviewed and approved by the
sharehwoldwewrs'. mluesettiengr ionf c20.2c3o bmefo re it can be implemented.Focus on Primary Focus on
Business Technology Optimize Business
Strengthen Enhance the Focus on
Development Improvement Management
Standardized Shareholder
Operations Investment Value Returns
Continuously focus on improvingquality and efficiency “T he Company will continue to evaluate the specific measures of the "Quality Efficiency activate growth drivers and and Returns Improvement" Action Plan and fulfill its disclosure obligation in a timelyemphasize returns manner. In the future LUSTER will continue to focus on its primary business and enhance
its core competitiveness profitability and risk management capabilities. Through good
performance and standardized corporate governance we will actively return investors
earnestly fulfill the responsibilities and obligations of listed companies return investors'
trust and maintain a good market image of the Company.The Company's planning development strategy and other forward-looking statements
involved in this Report are not fait accompli and do not constitute a substantial
commitment of the Company to investors.The Board of Directors LUSTER LightTech Co. Ltd.April 30 2024www.lusterinc.com ”
