Luxshare Precision Industry Co. Ltd. Annual Report 2023

Luxshare Precision Industry Co. Ltd.Annual Report 2023

April 2024Luxshare Precision Industry Co. Ltd. Annual Report 2023

Annual Report 2023

Section I Important Note Table of Contents and Definitions

The Board of Directors the Board of Supervisors directors supervisors and

executives of the Company hereby warrant that the information contained in this

Annual Report is true accurate and complete and this Annual Report is free from

any misrepresentation misleading statement or material omission and agree to

assume joint and several liability for this Annual Report.WANG Laichun Principal of the Company CFO WU Tiansong and Chief

Accountant CHEN Huiyong hereby represent that the financial statements

contained in this Annual Report are true accurate and complete.All directors of the Company attended the meeting of the Board of Directors

reviewing this Report.The relevant risks facing the Company are set out in “Section IIIManagement’s Discussion and Analysis - XI. Prospects for future development ofthe Company”.According to the profit distribution proposal approved by the Board of

Directors the Company will distribute a cash dividend of RMB 3 (inclusive of tax)

per 10 shares to all shareholders on the basis of 7178011313 shares and will not

distribute any bonus shares or transfer any capital reserve to the share capital for

the reporting period.

2Luxshare Precision Industry Co. Ltd. Annual Report 2023

Table of Contents

Section I Important Note Table of Contents and Def....2

Section II Company Profile and Key Financial Indic....7

Section III Management’s Discussion and Analysis ... 11

Section IV Corporate Governance .................... 64

Section V Environment and Social Responsibilities .. 95

Section VI Significant Matters .................... 139

Section VII Changes in shares and shareholders .... 160

Section VIII Preference Shares .................... 169

Section IX Bonds .................................. 170

Section X Financial Report ........................ 185

3Luxshare Precision Industry Co. Ltd. Annual Report 2023

List of References

1. Financial statements signed and chopped by the principal CFO and Chief Accountant of the Company;

2. Original of the auditor’s report stamped with the seal of the accounting firm and signed and chopped by the

certified public accountants;

3. Originals of all documents of the Company publicly disclosed on the website for information disclosure

designated by the China Securities Regulatory Commission during the reporting period and related announcements;

and

4. Other references.

4Luxshare Precision Industry Co. Ltd. Annual Report 2023

Definitions

Terms means Definition

We/us the Company or Luxshare-ICT means Luxshare Precision Industry Co. Ltd.Luxshare Limited founder and

Luxshare Limited means

controlling shareholder of Luxshare-ICT.ICT-Lanto means ICT-Lanto Limited.LUXSHARE PRECISION means Luxshare Precision Limited.Luxshare Precision Industry (Jiangsu)

Luxshare Jiangsu means

Co. Ltd.Luxshare Precision Industry (Shanxi)

Luxshare Shanxi means

Co. Ltd.Dongguan Luxshare Precision Industry

Luxshare Dongguan means

Co. Ltd.Luxshare Precision Industry (Suzhou)

Luxshare Suzhou means

Co. Ltd.Luxshare Precision Industry (Chuzhou)

Luxshare Chuzhou means

Ltd.Kunshan Luxshare Precision Industry

Luxshare Kunshan means

Co. Ltd.Luxshare Precision Industry (Baoding)

Luxshare Baoding means

Co. Ltd.Xuancheng Luxshare Precision Industry

Luxshare Xuancheng means

Co. Ltd.Yancheng Luxshare Precision Industry

Luxshare Yancheng means

Co. Ltd.Luxshare Precision Industry (Enshi) Co.Luxshare Enshi means

Ltd.Luxshare Vietnam means Luxshare-ICT (Vietnam) Limited

Luxshare-ICT (Van Trung) Company

Luxshare Van Trung means

Limited

Luxshare Nghe An means Luxshare-ICT (Nghe An) Limited

Shenzhen Luxshare Acoustics

Luxshare Electroacoustic means

Technology Ltd.Luxshare Smart Manufacturing means Luxshare iTech (Zhejiang) Co. LTD.Guangdong Luxshare & Merry

Luxshare-Merry means

Electronics Co. Ltd.ASAP Jiangxi means ASAP Technology (Jiangxi) Co. Ltd.Xiexun Jiangxi means Xiexun Electronic (Ji’an) Co. Ltd.Jiangxi Luxshare Intelligent Manufacture

Smart Manufacturing Jiangxi means

Co. Ltd.Lanto Bozhou means Bozhou Lanto Electronic Limited

Xuntao Bozhou means Bozhou Xuntao Electronic Limited

Meite Suzhou means Merry Electronics (Suzhou) Co. Ltd.Huzhou Jiuding means Huzhou Jiuding Electronic Co. Ltd.Lanto Kunshan means Lanto Electronic Limited

Kunshan RF means Kunshan-Luxshare RF Technology Co.

5Luxshare Precision Industry Co. Ltd. Annual Report 2023

Ltd.Liding Electronic Technology

Liding Dongguan means

(Dongguan) Co. Ltd.

Luxcase Precision Technology

Luxcase ICT Yancheng means

(Yancheng) Co. Ltd.Xiexun Wan’an means Wan’an Xiexun Electronic Co. Ltd.Luxshare Intelligent Manufacture

Smart Manufacturing Changshu means

Technology (Changshu) Co. Ltd.Fujian JK means Fujian JK Wiring Systems Co. Ltd..Xingning Electronics means Xingning Luxshare Electronic Co. Ltd.Luxsan Kunshan means Luxsan Technology (Kunshan) Co. Ltd.Bisaisi Automotive Technology (Suzhou)

BCS Suzhou means

Co. Ltd.SpeedTech means SpeedTech Corp.Luxshare Automation Jiangsu means Luxshare Automation (Jiangsu) Ltd.Dongguan Luxshare Technology Co.Dongguan Luxshare Technology means

Ltd.Luxshare Electronic Technology

Luxshare Electronic Kunshan means

(Kunshan) Co. Ltd.Luxshare Electronic Technology (Enshi)

Luxshare Electronic Enshi means

Co. Ltd.TIME Interconnect Technology means TIME Interconnect Technology Limited

Huarong Technology means Shenzhen Huarong Technology Co. Ltd.BCS Automotive Interface Solutions

BCS Germany means

GmbH(Germany)

BCS Automotive Interface Solutions US

BCS USA means

LLC (USA)

BCS Automotive Interface Solutions

BCS Romania means

Romania s.r.l.(Romania)

Luxsan Hong Kong means LUXSAN TECHNOLOGY LIMITED

Luxsan Investment means Luxsan Investment (Jiangsu) Co. Ltd.Luxsan Intelligent Equipment (Kunshan)

Luxsan Equipment means

Co. Ltd.Wuhu Chery Auto Purchasing Parts Co.Chery Parts means

Ltd.Chery Commercial Vehicle (Anhui) Co.Chery Commercial Vehicle means

Ltd.Henan Chery means Henan Chery Auto Co. Ltd.Articles of Association of Luxshare

AOA means

Precision Industry Co. Ltd.

6Luxshare Precision Industry Co. Ltd. Annual Report 2023

Section II Company Profile and Key Financial Indicators

I. Company profile

Stock short name Luxshare-ICT Stock code 002475

Stock exchange Shenzhen Stock Exchange

Chinese name 立讯精密工业股份有限公司

Chinese short name 立讯精密

English name (if any) Luxshare Precision Industry Co. Ltd.English short name (if any) Luxshare-ICT

Legal representative WANG Laichun

2/F Block A Sanyang New Industrial Zone West Haoyi Shajing Street Baoan District

Registered address

Shenzhen

Postal code of registered address 518104

History of changes in registered

N/A

address

Office address No. 313 Beihuan Road Qingxi Town Dongguan Guangdong

Postal code of office address 523642

Company website https://www.luxshare-ict.com/

E-mail Public@luxshare-ict.com

II. Contact person and contact information

Board Secretary Securities Affairs Representative

Name HUANG Dawei LI Ruihao

No. 313 Beihuan Road Qingxi Town No. 313 Beihuan Road Qingxi Town

Address

Dongguan Guangdong Dongguan Guangdong

Telephone 0769-87892475 0769-87892475

Fax 0769-87732475 0769-87732475

E-mail David.Huang@luxshare-ict.com Ray.Li@luxshare-ict.com

III. Media for information disclosure and place for keeping annual report

Website of the stock exchange disclosing the

Shenzhen Stock Exchange (www.szse.cn)

Company’s annual report

Media and website disclosing the Company’s

The Securities Times the Shanghai Securities News and http://www.cninfo.com.cn

annual report

Place for keeping annual report Securities Affairs Office of the Company

IV. Changes in registration particulars

Unified social credit code 91440300760482233Q

Changes in main business since the listing of the Company (if No

7Luxshare Precision Industry Co. Ltd. Annual Report 2023

any)

Changes in controlling shareholder (if any) No

V. Other related information

Accounting firm engaged by the Company

Name of accounting firm BDO China Shu Lun Pan Certified Public Accountants LLP

Rooms 1 2 & 3 4/F No. 61 East Nanjing Road Huangpu

Office address of accounting firm

District Shanghai

Name of accountants signing this report LI Jing and DAN Jie

Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period:

□Applicable □N/A

Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting

period

□Applicable □N/A

VI. Key accounting data and financial indicators

Did the Company need to retrospectively adjust or re-state any accounting data of prior accounting years

□Yes □No

2023 2022 Y/Y % Change 2021

Operating income

231905459829.83214028394291.448.35%153946097790.40

(RMB)

Net profit attributable

to shareholders of the 10952656702.16 9163104849.54 19.53% 7070520386.57

listed company (RMB)

Net profit attributable

to shareholders of the

listed company after

10185553553.998442052945.8520.65%6015597220.13

deduction of non-

recurring gain or loss

(RMB)

Net cash flow from

operating activities 27605060411.16 12727610319.34 116.89% 7284766917.00

(RMB)

Basic earnings per

1.541.2919.38%1.01

share (RMB/share)

Diluted earnings per

1.531.2819.53%0.99

(RMB/share)

Weighted average Decrease by 1.39

21.61%23.00%22.35%

return on equity percentage points

December 31 2023 December 31 2022 Y/Y % Change December 31 2021

Total assets (RMB) 161992099595.65 148384319074.71 9.17% 120572098167.88

Net assets attributable

to shareholders of the 56310184510.60 45342897318.53 24.19% 35288554748.72

listed company (RMB)

8Luxshare Precision Industry Co. Ltd. Annual Report 2023

Whether the lower of the net profit before and after deduction of non-recurring gain or loss in the past three accounting years has been

negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern is uncertain

□Yes □No

Whether the lower of the net profit before and after deduction of non-recurring gain or loss is negative

□Yes □No

VII. Differences in accounting data arising from adoption of Chinese and foreign accounting

standards concurrently

1. Differences in net profit and net assets disclosed in the financial statements prepared according to the

international accounting standards and the Chinese accounting standards

□Applicable □N/A

There was no difference in net profit and net assets disclosed in the financial statements for the reporting period prepared according to

the international accounting standards and the Chinese accounting standards.

2. Differences in net profit and net assets disclosed in the financial statements prepared according to the

foreign accounting standards and the Chinese accounting standards

□Applicable □N/A

There was no difference in net profit and net assets disclosed in the financial statements for the reporting period prepared according to

the foreign accounting standards and the Chinese accounting standards.VIII. Main quarterly financial indicators

In RMB

First quarter Second quarter Third quarter Fourth quarter

Operating income 49942325179.17 48028855731.10 57903635250.06 76030643669.50

Net profit attributable

to shareholders of the 2017931635.56 2337794295.99 3018448573.21 3578482197.40

listed company

Net profit attributable

to shareholders of the

listed company after 1771547570.19 2382825838.93 2878274332.09 3152905812.78

deduction of non-

recurring profit or loss

Net cash flow from

3612281990.235201747161.89-1591995327.8820383026586.92

operating activities

Whether there’s any significant difference between the financial indicators set forth above or aggregate amounts thereof and the

corresponding financial indicators contained in any quarterly or semi-annual report already disclosed

□Yes □No

IX. Items and amounts of non-recurring gains or losses

□ Applicable □ N/A

9Luxshare Precision Industry Co. Ltd. Annual Report 2023

In RMB

Item 2023 2022 2021 Remark

Gain or loss on disposal of non-current assets

(including allowance for impairment of assets 106350953.11 40397780.40 -57241855.39

that has been written off)

Government grants recognized in profit or loss

(excluding government grants that are closely

related to the business of the Company in

accordance with national policy requirements 791098788.52 602294263.90 853542165.37

enjoyed according to specific criteria and

having a continuous impact on the Company’s

profit or loss)

Fair value changes in financial assets and

financial liabilities held by non-financial

enterprises and gains or losses from the disposal

488375997.34543762585.57602993325.33

of financial assets and financial liabilities

except for effective hedging transactions related

to the Company's ordinary operating activities

Gain or loss on assets under entrusted

189969851.8250525057.6695298693.93

investment or management

Interest in the fair value of the acquirees’

identifiable net assets at the date of acquisition

16559223.33

in excess of the investment cost of the relevant

subsidiaries associates and joint ventures

Gain or loss on assets under entrusted

41640366.0211040674.64-12600634.71

investment or management

Other non-operating income and expenses -601026495.49 -377143056.77 -170939666.46

Less: Effect of income tax 158749222.86 100226804.81 211043425.20

Effect of minority interest (after tax) 90557090.29 49598596.90 61644659.76

Total 767103148.17 721051903.69 1054923166.44 --

Other items of gain or loss within the meaning of non-recurring gains or losses:

□Applicable □N/A

Mainly for investment income recognized for advance termination of financial assets.If the Company classifies any item of non-recurring gain or loss defined by or listed in the Explanatory Announcement No. 1 on

Information Disclosure for Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss please

explain the reason.□Applicable □N/A

We have not classified any item of non-recurring gain or loss defined by or listed in the Explanatory Announcement No. 1 on

Information Disclosure for Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss in the

reporting period.

10Luxshare Precision Industry Co. Ltd. Annual Report 2023

Section III Management’s Discussion and Analysis

I. Situations of our industry during the reporting period

During the reporting period we are engaged in the research and development (R&D) manufacturing and sale

of products in the fields of consumer electronics communication and data center automotive electronics and

healthcare among others. Our products and businesses are diversified and vertically integrated and cover

components modules and system assembly.(I) Consumer electronics

Since 2023 despite the impact of factors such as the global economic downturn and geopolitics the consumer

electronics industry has been relatively sluggish overall. However with the release of a series of new products by

major terminal brands in the second half of the year and the accelerated application of new technologies terminal

demand has shown signs of recovery and the industry chain has transitioned from actively destocking to passively

destocking. According to the "China Wearable Device Market Quarterly Tracking Report" released by the globally

renowned data research firm IDC the shipment volume of wearable devices in China in the third quarter of 2023

was 34.7 million units a year-on-year increase of 7.5%. Among them the shipment volume of smartwatches was

11.4 million units a year-on-year increase of 5.5% and the shipment volume of TWS earphones was 15.1 million

units a year-on-year increase of 10.6%. A research report from Canalys a market research institution pointed out

that in the fourth quarter of 2023 global smartphone shipments increased by 8% year-on-year reaching 319 million

units ending nine consecutive quarters of sluggishness. This indicates that the overall market is entering a stable

recovery phase. Meanwhile technological innovation and application are important factors driving the continued

growth of the consumer electronics industry. With the continuous emergence of emerging technologies such as AI

(Artificial Intelligence) and XR (Extended Reality) new development momentum has been brought to the consumer

electronics industry especially the popularization and application of AI technology in smartphones personal

computers wearable electronic products and other fields in the future expanding the industry's growth space.(II) Communication and data center

In 2023 the telecommunications industry welcomed new development opportunities in the wave of global

digitization transformation. Significant growth trends were observed in areas such as copper connections optical

connections heat dissipation modules servers and communication radio frequency (RF) all of which became

important drivers for industry development.Copper connection products have consistently played a crucial role in high-speed interconnection products in

data centers particularly in short-distance transmission scenarios within servers where copper connections offer

significant advantages in heat dissipation efficiency signal transmission and cost-effectiveness. Thus copper

interconnection remains the most cost-effective solution in many current and future applications. According to a

11Luxshare Precision Industry Co. Ltd. Annual Report 2023

report on high-speed cables LPO and CPO published by the market research firm LightCounting the market size

of high-speed cables is expected to grow exponentially in the next five years. With breakthrough optical

technologies being introduced and developed optical connection products enable networks to achieve higher

bandwidth and longer transmission distances with the market size expanding as data centers transition to higher

computational power in the future. LightCounting predicts that the global optical module market will experience a

compound annual growth rate of 11% over the next five years (2024-2028).As computational power technologies advance rapidly the demand and requirements for heat dissipation

technology at terminals also increase accordingly. Liquid cooling technology is gradually becoming a new solution

for data center cooling especially cold plate and immersion liquid cooling technologies which significantly

improve heat dissipation efficiency by efficiently exchanging heat with servers through liquid. In the future as the

demand for efficient and environmentally friendly cooling solutions in data centers increases the application of

liquid cooling technology will further expand.Servers as the core carriers of computational power are experiencing a sharp growth trend in market demand

as AI technologies are increasingly applied. According to data from TrendForce AI server shipments reached 1.2

million units in 2023 accounting for nearly 9% of total server shipments with a year-on-year growth rate of 38.4%.In the future the development of AI applications such as large language models will further drive the overall demand

for servers.In terms of communication radio frequency major economies around the world are increasing investment in

network infrastructure construction with many countries accelerating the layout of computational power

infrastructure. According to the "World Internet Development Report 2023" blue book the United States and China

still lead in internet development while countries such as Singapore the Netherlands South Korea Finland and

Sweden rank relatively high. European countries generally have strong internet development capabilities while

Central Asia and Africa still have considerable room for improvement in internet development. Therefore the base

station RF industry is expected to show strong growth momentum in the coming years.(III) Automotive electronics

In 2023 the Chinese new energy vehicle (NEV) market continued its strong growth momentum both

production and sales volumes as well as market penetration rate have achieved significant improvements.According to statistics from the China Association of Automobile Manufacturers China's total automobile sales

reached 30.09 million units in 2023 a year-on-year increase of 12% marking a growth rate surpassing 10% for the

first time in six years. Among them the production and sales volumes of NEVs in China reached 9.587 million units

and 9.495 million units respectively with year-on-year increases of 35.8% and 37.9% demonstrating the strong

momentum of NEVs in the Chinese market. Additionally thanks to continuous efforts by Chinese automakers in

product quality technological innovation brand building and strong support from national policies China's total

automobile exports reached 4.91 million units in 2023 a year-on-year increase of 57.9%. Among them NEV exports

12Luxshare Precision Industry Co. Ltd. Annual Report 2023

reached 1.203 million units a year-on-year increase of 77.6%.NEVs represent an important direction for the transformation and upgrading of China's automobile industry.With the continuous improvement of electrification technology and the gradual reduction of manufacturing costs

for vehicles NEVs have received strong support from national policies and high recognition from the market in

recent years significantly enhancing their market competitiveness.In terms of smart cabins with the emergence of more user-friendly and intelligent designs including features

such as high-definition touch screens voice interaction systems and personalized settings the driving and riding

experience has been greatly enhanced. Through artificial intelligence technology smart cabins can automatically

adjust seat positions air conditioning temperatures and even detect the driver's fatigue status through facial

recognition technology issuing timely reminders. Furthermore with the popularization of 5G technology the

connection between vehicles and external information has become closer. Smart cabins can receive and process

various information from the cloud in real-time providing drivers with richer and more convenient services.In terms of autonomous driving many current models are equipped with Level 2 or even higher-level

autonomous driving systems capable of achieving partial autonomous driving functions on highways urban roads

and other environments such as automatic following lane changing and parking. These systems collect

surrounding environmental information quickly through advanced millimeter-wave radar cameras LiDAR and

other high-precision sensors combined with advanced algorithms and big data analysis to achieve precise control

of vehicle driving status. To ensure safety autonomous driving systems are also equipped with multiple safety

monitoring mechanisms to deal with possible emergencies.In this context the global automotive market has reached a new breakthrough.(IV) Our position in the industry

During the reporting period the Company was honored with titles such as "Fortune Global 500" "Top 500

Chinese Private Enterprises" "Top 500 Chinese Manufacturing Private Enterprises" "Top 100 Private Enterprises

in Guangdong Province" "Top 100 Manufacturing Private Enterprises in Guangdong Province" and ranked first

among the backbone enterprises in the Chinese electronic components industry in 2023.II. Our main business during the reporting period

As a leading enterprise in the precision manufacturing field the company is always dedicated to focusing on

industries such as consumer electronics automotive and telecommunications. With keen insights into industry

trends and a profound understanding of customer needs the company has continuously driven product innovation

technological breakthroughs and process optimization and continuously created values for customers acting as a

"middleman" earning high praise and long-term trust from top global clients and laying a solid foundation for the

company's high-quality growth.The company's products mainly cover areas such as consumer electronics automotive telecommunications

13Luxshare Precision Industry Co. Ltd. Annual Report 2023

industrial and medical industries. It is committed to providing customers with one-stop multi-category core

components modules and system-level products including:

(1) Consumer Electronics Business

消费电子 Consumer electronics 室内应用场景 Indoor application scenarios

办公室应用场景案例 Office application scenarios

智能显示器 Smart display TV 盒子 TV box 会议系统 Conference system

MR 智能音箱 Smart speaker 转换坞 Conversion dock

控制器 Controller 平板电脑 Tablet 智能手写笔 Smart stylus

智能手机 Smartphone 笔记本电脑 Laptop 蓝牙鼠标 Bluetooth mouse

摄像头 Camera 无线充电 Wireless charging 蓝牙键盘 Bluetooth keyboard

家庭应用场景案例 Home application scenarios

吸尘器 Vacuum cleaner 扫地机器人 Robotic vacuum cleaner 游戏手柄 Game controller

智能转接头 Smart adapter 充电宝 Power bank 电子烟 E-cigarette

智能插座 Smart socket 移动电源 Portable charger 路由器 Router

智能锁 Smart lock 智能音箱 Smart speaker 电子书 E-reader

美容仪 Beauty device 追踪器 Tracker VR

14Luxshare Precision Industry Co. Ltd. Annual Report 2023

消费电子 Consumer electronics 户外应用场景 Outdoor application scenarios

1、户外电源 Outdoor power source 7、AR 眼镜 AR glasses

2、平衡车 Balance car 8、骨传导耳机 Bone conduction headphone

3、电动车 Electric scooter 9、蓝牙耳机 Bluetooth headphone

4、智能车锁 Smart lock 10、智能指环 Smart ring

5、电动车充电器 Electric vehicle charger 11、智能手环 Smart wristband

6、智能头盔 Smart helmet 12、智能手表 Smart watch

(2) Communication and Data Center Business

15Luxshare Precision Industry Co. Ltd. Annual Report 2023

通讯 Communication 无线基站应用场景 Wireless base station application scenarios

无线基站室外部分（天线、塔放、射频拉远单元等）Outdoor components of base station (antennas tower amplifiers remote

radio units etc.)

1、基站天线 Base station antenna 2、塔放/合路器 Tower amplifier/combiner

3、射频拉远单元 Remote ratio unit 4、直放站 Repeater

5、AAU 6、RRU

无线基站室内部分（ 室分天线、室内线端、电源系统） Indoor components of wireless base station (Distributed antenna indoor

cabling power supply system)

7、室分天线 Distributed antenna 8CPE 9、电源系统 power supply system

16Luxshare Precision Industry Co. Ltd. Annual Report 2023

企业 Enterprise 数据中心应用场景 Date center application scenarios

电连接（ 连接器及连接器模组，线缆及线缆模组） Electrical connectivity (connectors and connector modules cables and cablemodules)

1、ACC/DAC 2、SSIO 8、挂耳 Earhook

3、HSIO 7、线缆模组 Cable module

光连接（AOC、光模块、光跳线）Optical connectivity (AOC optical modules optical patch cords)

4、AOC 5、Transceiver 6、光跳线 Optical patch cords

热管理（ 散热器、风扇、液冷板及温控） Thermal management (heat sinks fans liquid cooling plates and temperature control)

11、散热器 Heat sink 10、风扇 Fans

9、水冷板 Liquid cooling plates 12、温控解决方案 Temperature control solution

电源模块与电源系统（服务器电源模块、电源柜）Power module and power system (server power module power cabinet)

13、服务器电源模块 Server power module 14、电源系统 Power supply system

(3) Automotive Business

17Luxshare Precision Industry Co. Ltd. Annual Report 2023

汽车 Vehicle 应用场景 Application scenarios

1、电气化-低压/高压线束 Electrification - Low-voltage/High-voltage wiring harness

车内线束 Vehicle interior wiring harness 特种线束 Specialized wiring harness 充电枪 Charging gun

2、连接器-高压/低压/高速连接器 Connectors - High-voltage/Low-voltage/High-speed connectors

高 / 低 压 连 接 器 High/Low voltage BMS Busbar 高速连接器 High-speed connectors

connectors

3、智能座舱 Smart cockpit

驾 驶 员 / 乘 客 监 控 系 统 信息娱乐系统 Infotainment system AR-HUD

Driver/Passenger monitoring system

4、车身控制/智能进入 Body control/Smart entry

ZCU ECU ETC 传感器 Sensor

UWB/NFC/BLE key 触摸开关 Touch switch

5、电源管理 Power management

CCS PDU BDU 逆变器 Inverter WPC 整 车 无 线 充 电

Vehicle wireless

charging

6、磁性器件模组-电厂&滤波器 Magnetic device module - inductors & filters

Choke 电感 Inductor EMI 滤波器 EMI filter

(4) Medical Business

18Luxshare Precision Industry Co. Ltd. Annual Report 2023

医疗 Medical 应用场景 Application scenarios

1、监护类 Monitoring

血氧线 Oxygen saturation Cable 心电线 ECG lead 温度线 Temperature probe cable

2、手术类 Surgery

吻合器线 Cable used for anastomosis 电刀线 Cable for electric knife 吻合器连接器 Anastomosis connector

3、除颤类 Defibrillation

体 外 除 颤 线 体 腔 除 颤 线 Body-controlled External defibrillation 除颤器零件 Defibrillator components

defibrillation Cable

Cable

4、设备内部类 Internal equipment 5、影像类（超声） Imaging (ultrasound) 6、影像类（MR） Imaging (MR)

各类医疗设备机内线 Various types of 超声换能器线 Ultrasound transducer 磁共振成像线圈线缆 MRI imaging coil

medical device internal wiring cable cable

III. Analysis of core competencies

(I) Smart Manufacturing: Deep Integration of Digitalization and Automation

Given the continuous deep integration of the next generation of information technology and manufacturing we

have always insisted on intelligent manufacturing as the underlying logic and devoted great energy to promoting

automated processes and digital applications to empower the process development personnel organization and

production modes.

19Luxshare Precision Industry Co. Ltd. Annual Report 2023

For the digital applications we have introduced systems such as SAP PLM MES and WMS to further optimize

the management processes and production processes throughout the entire lifecycle from design R&D production

to marketing procurement warehousing and after sales conduct precise scientific and intelligent customer-oriented

management and constantly strive to improve our production efficiency and product yield.In terms of automated processes we actively leverage the significant advantages of machine vision in precision

speed repeatability reliability and information aggregation to achieve precise positioning and error detection of

precision electronic components in process active coordination and positioning of parts and fixtures in assembly

and machine AI-assisted inspection of component product appearance. By relying on real-time feedback of

measurement data from machine vision we enhance the deep self-learning ability of automated equipment and

create a closed-loop control for automated processes.(II) Strategic Layout: Forward-looking Planning to Create a Second Growth Curve

Under the guidance of our “three five-year” strategy we always grasp the market dynamics respond to industry

growth trend take coordinated development as our fundamental purpose make forward-looking layouts around the

main business and are dedicated to providing the market with a perfect and integrated solution of industrial chains.On the one hand capitalizing on our comprehensive capabilities deeply accumulated and continuously optimized

in the consumer electronics field we have built “process + underlying technology” structure to continuously explore

the mass market of new and old products for core customers and other consumer electronics customers. In addition

we conduct horizontal expansion to empower automotive and communication sectors which highlights our

differentiated advantages in relevant sectors and effectively supports the implementation of commercial plans

thereby achieving our diversified product layout. On the other hand with many years of efforts in market segments

we have proprietary key process capabilities including design and processing of molds/jigs bare copper wire

drawing plastic particle molding stamping/press forging precision implant molding surface treatment SMT SiP

and system-level assembly testing. We make continuous efforts to explore product value by way of vertically

integrating components modules and system-level assembly in a forward or reverse direction.In the era of the internationalization of industrial chains our globalization layout is developing in depth. In

addition to Guangdong Jiangxi Jiangsu Zhejiang Anhui and other provinces in China we have established mature

production capacity bases and R&D centers in such countries and regions as Vietnam India Mexico and German.While serving customers nearby and enhancing product cost advantages these bases and centers have gathered

overseas sophisticated talents and offered strong support for the team to explore high-end markets and provide high-

quality services to customers.(III) Research and Development Innovation: Driving Technological Innovation and Product Iteration

Since inception our company has consistently regarded research and development (R&D) innovation as a

crucial engine for enterprise development. We has increased R&D investment continuously promoted the

innovation of traditional manufacturing processes enhanced the level of automation in production and modularized

20Luxshare Precision Industry Co. Ltd. Annual Report 2023

various precision manufacturing processes. The company attaches great importance to the research and development

of underlying materials and process technology. Our in-house R&D team collaborates closely with top global clients

to establish multiple R&D laboratories enabling the rapid grasp of cutting-edge technological trends. Leveraging

its deep understanding of precision manufacturing practices and comprehensive digitization and intelligence the

company achieves joint innovation in new materials processes and techniques accelerating the commercialization

of its technological innovations.In terms of R&D investment the company adopts a targeted strategy dividing R&D resources into two main

areas: investment in cutting-edge technology and investment in product iteration. Approximately 30% of the overall

R&D expenditure is allocated to investment in cutting-edge technology focusing on innovative research and

development in areas such as underlying materials processes and techniques. This investment aims to support the

company's medium- to long-term product and business planning ensuring that its products maintain a leading

position in the global industry over the next 20 years. Investment in product iteration focuses on the development

of process innovation for product iteration and upgrade from the conceptualization of new products to new product

introduction (NPI) verification and mass production. This approach enables the company to not only maintain the

competitiveness of existing products but also seize opportunities in emerging technologies and markets laying a

solid foundation for the company's long-term development and the cultivation of new quality productivity.Over the years the company's R&D investment and achievements have shown a steady upward trend. In terms

of R&D investment the company has cumulatively invested RMB 23.278 billion in R&D in the past three years

including RMB 8.189 billion during the reporting period. In terms of R&D achievements the company added 1527

new patents in 2023 bringing its total to 6202 patents.(IV) Green Development: Achieving Sustainable Development and Environmental Protection

The company is committed to integrating the concept of sustainable development into its core business strategy

seizing the transformative trends of sustainable development in the new era. We focus on addressing the challenges

and opportunities of climate change safeguarding employee rights implementing responsible supply chain

management and upholding business ethics. Internally we continuously monitor the latest trends in sustainable

development learn from advanced experiences within the industry and strive to enhance our level of sustainable

development management. Through ongoing internal training and process optimization we ensure that the concept

of sustainable development is understood and supported internally and efficiently implemented in daily operations.Externally we have established regular communication mechanisms to maintain close interaction with various

stakeholders promptly understand and respond to their needs and expectations. Through open and transparent

communication we enhance mutual understanding and trust with investors customers and suppliers jointly

promoting the company's continuous development towards a sustainable future.Based on the decarbonization goals of the SBTi 1.5°C pathway the company steadily promotes carbon

footprinting emission reduction and carbon neutrality action plans according to the climate action planning

21Luxshare Precision Industry Co. Ltd. Annual Report 2023

roadmap. We regularly review and adjust climate change strategies based on actual business operations. Through

measures such as rooftop photovoltaics direct purchases of green electricity investments in green energy funds

and procurement of green certificates we increase the proportion of clean energy use and reduce CO2 emissions

from electricity consumption.During the reporting period the company's proportion of clean energy use increased to 63% exceeding the

target of achieving a clean energy use proportion of 50% by 2025. Furthermore through energy-saving

transformations we significantly reduced energy consumption and greenhouse gas emissions resulting in a total

reduction of 1100057.45 tCO2e in greenhouse gas emissions. As of the end of the reporting period a total of 54

factories have obtained ISO 14001 environmental management system certification 10 factories have obtained ISO

50001 energy management system certification and 14 factories have been recognized as national or provincial-

level green factories. Additionally 14 subsidiaries have achieved UL 2799 waste landfill-free certification at the

platinum level.(V) Talent Strategy: Building an Innovative and Development-Oriented Talent Team

Talent is the foundation of innovation and the driving force behind nurturing new quality productivity.Innovation is essentially driven by talent. Especially "highly skilled" original research and development talents in

craft materials and technology as well as management talents with rich practical experience and industry insight

are crucial elements in propelling Luxshare towards the high end of the industry and value chain. Since its

establishment Luxshare has always adhered to the solid foundation of talent resources relying on talent for

development and growth. Currently Luxshare boasts a research and development team of nearly 20000 people.This passionate and creative team brings together elites from different fields countries and regions serving as the

backbone of Luxshare's various technological breakthroughs and innovative achievements. Regarding talent

selection cultivation and retention the company adheres to the principle of "achieving success for everyone in

their careers". The rapid development of the company has provided many growth platforms for employees and

cadres. New products new businesses and new opportunities drive employees to demand higher levels and

standards from themselves fully inspiring team potential sense of mission and sense of honor. Furthermore the

company incentivizes everyone financially by providing competitive compensation and benefits as well as equity

incentive plans significantly enhancing the sense of achievement for employees and cadres and effectively

improving their quality of life. A sound and effective talent incentive mechanism strongly promotes the company's

talent "attraction development and retention" laying the foundation for the exploration and sustainable

development of new fields and new businesses while ensuring an abundant talent pool for traditional advantageous

areas. Lastly Luxshare aims to emotionally connect with each individual by strengthening employee care actively

listening to the voices of employees and cadres at all levels and genuinely caring about their personal needs and

family happiness. Through this emotional interaction the company builds and enhances employees' sense of

belonging and identification with the company.

22Luxshare Precision Industry Co. Ltd. Annual Report 2023

IV. Analysis of main business

1. Overview

(1) Consumer electronics business

In 2023 the company remained steadfast in its customer-oriented approach leveraging its advantages in vertical

integration and cost control. As a result its operational performance saw steady improvement during the reporting

period. With the release of a series of new products by major terminal brands and the accelerated application of new

technologies in the latter half of the year the consumer electronics market showed clear signs of recovery

particularly in major categories such as smartphones smart wearable devices and personal computers which

gradually reversed their sluggish state. In areas such as smart mobile terminals health wearables acoustic wearables

smart offices and smart homes the company achieved breakthroughs in both quantity and quality during the

reporting period. This success was attributed to its solid product development capabilities leading automation

process development efficient lean manufacturing capabilities and the sincere cooperation of its team members.Products were delivered with high quality as scheduled earning high praise and recognition from core customers.Furthermore during the reporting period the company achieved substantial breakthroughs in enhancing its core

capabilities and expanding its business scale through vertical integration and horizontal mergers and acquisitions.Leveraging its deep experience and technological reserves in areas such as Surface Mount Technology (SMT) and

System in Package (SiP) the company acquired all assets of Qorvo a leading RF front-end chip manufacturer in

the United States located in Beijing and Dezhou Shandong Province. This acquisition further nurtured the

company's precision manufacturing capabilities in RF front-end modules strengthened its vertical integration

service advantages and propelled the company to achieve a leapfrog development from system packaging to module

packaging. Moreover through joint ventures and high-quality mergers and acquisitions the company expanded its

existing business scale achieving better resource allocation higher production efficiency and stronger market

competitiveness. Leveraging efficient collaborative advantages with its joint venture partners upstream and

downstream in the industry chain the company created more room for incremental development in core components

and precision module businesses in the consumer electronics sector. This strategy also facilitated the expansion of

"old customers with new products" creating more possibilities for growth.

(2) Communication and Data Center Business

Since entering the telecommunications and data center industries the company has continuously deepened its

expertise in electrical connections optical connections air-cooled/liquid-cooled cooling power management RF

and other products. With "application generation development generation pre-research generation" as the core

product strategy and technological innovation as a crucial driving force the company has built its unique

capabilities sandbox in various technical fields. Through extensive patent layouts and deep involvement in industry

standard formulation the company has gradually established strong technological barriers and market

23Luxshare Precision Industry Co. Ltd. Annual Report 2023

competitiveness. Especially in the field of high-speed interconnection in data centers the company has cooperated

proactively with leading chip manufacturers to jointly develop next-generation high-speed connection standards

such as 800G and 1.6T for global mainstream data centers and cloud service providers. Some products in specific

segments such as external high-speed copper cables cables and connector components backplane connectors and

backplane cables HSIO SSIO etc. have won recognition from customers with leading technology cost advantages

and excellent product performance. Based on this foundation the company has comprehensively promoted further

cooperation with leading customers in optical connections cooling power modules and other products. During the

reporting period the company has made breakthrough progress under this strategic guidance.

(3) Auto Business

In 2023 leveraging our robust smart manufacturing platform and drawing on our years of experience in rapid

iteration cost control global supply chain advantages and research and development innovation in the consumer

electronics and telecommunications sectors we rapidly empowered ourselves to enter the automotive industry with

a range of products. With a deep understanding of automotive-grade product safety and reliability we quickly

enabled our offerings to meet the requirements of the automotive industry. Building on deep strategic partnerships

with leading domestic and international OEMs and automotive brands we successfully opened up vast market space

for our automotive-related products including high/low-voltage wiring harnesses high-speed wiring harnesses

charging guns automotive connectors intelligent cockpit domain controllers LCD instrument panels three-in-one

motor systems AR HUD DMS and more. During the reporting period each product line experienced strong market

demand resulting in high-speed growth in performance.

2. Revenue and cost

(1) Components of operating revenue

In RMB

20232022

Y/Y %

% of operating % of operating

Amount Amount change

revenue revenue

Total operating revenue 231905459829.83 100% 214028394291.44 100% 8.35%

By segment

Computer interconnect products

7492410071.113.23%11279925261.075.27%-33.58%

and precision components

Automotive interconnect products

9252368552.093.99%6149359869.132.87%50.46%

and precision components

Communication interconnect

products and precision 14538256002.45 6.27% 12834368214.51 6.00% 13.28%

components

Consumer electronics 197183318387.02 85.03% 179666857997.07 83.95% 9.75%

Other connectors and other

3439106817.161.48%4097882949.661.91%-16.08%

business

24Luxshare Precision Industry Co. Ltd. Annual Report 2023

By product

-

Computer interconnect products

7492410071.113.23%11279925261.075.27%33.58

and precision components

%

Automotive interconnect products

9252368552.093.99%6149359869.132.87%50.46%

and precision components

Communication interconnect

products and precision 14538256002.45 6.27% 12834368214.51 6.00% 13.28%

components

Consumer electronics 197183318387.02 85.03% 179666857997.07 83.95% 9.75%

Other connectors and other

3439106817.161.48%4097882949.661.91%-16.08%

business

By region

Domestic market 25149439369.07 10.84% 20224747347.20 9.45% 24.35%

Overseas market 206756020460.76 89.16% 193803646944.24 90.55% 6.68%

By sales mode

Direct sales 231905459829.83 100.00% 214028394291.44 100.00% 8.35%

(2) Segments products regions or sales models representing more than 10% of operating revenue or profit

□Applicable □N/A

In RMB

Y/Y % Y/Y % Y/Y %

Gross Change in Change in Change in

Operating income Operating cost

margin operating operating gross

revenue cost margin

By segment

Consumer

197183318387.02176289664722.1510.60%9.75%10.83%-0.87%

electronics

By product

Consumer

197183318387.02176289664722.1510.60%9.75%10.83%-0.87%

electronics

By region

Domestic sales 25149439369.07 20949932693.12 16.70% 24.35% 23.49% 0.58%

Export sales 206756020460.76 184091367765.47 10.96% 6.68% 7.68% -0.82%

By sales mode

Direct sales 231905459829.83 205041300458.59 11.58% 8.35% 9.11% -0.61%

In case of any adjustment to the statistic scale for main business data the main business data of the most recent reporting period as

adjusted according to the statistic scale applied at the end of the current reporting period

□Applicable □N/A

(3) Whether the Company’s revenue from sale of tangible goods is higher than the revenue from labor service

□Yes □No

Segment Item Unit 2023 2022 Y/Y % change

25Luxshare Precision Industry Co. Ltd. Annual Report 2023

Computer Sales volume KPCS 339436 651927 -47.93%

interconnect Output KPCS 381866 691581 -44.78%

products and

precision Inventories KPCS 42430 39654 7.00%

components

Automotive Sales volume 1000 sets 289181 323444 -10.59%

interconnect Output 1000 sets 315470 352333 -10.46%

products and

precision Inventories 1000 sets 26289 28889 -9.00%

components

Communication Sales volume KPCS 273342 484370 -43.57%

interconnect Output KPCS 287729 522561 -44.94%

products and

precision Inventories KPCS 14386 38191 -62.33%

components

Sales volume KPCS 3985052 3727774 6.90%

Consumer Output KPCS 4336890 4233740 2.44%

electronics Inventories KPCS 351838 505965 -30.46%

Sales volume KPCS 358699 385129 -6.86%

Other connectors Output KPCS 386291 416004 -7.14%

and other business Inventories KPCS 27592 30874 -10.63%

Analysis of changes in the relevant data over 30% year on year

□Applicable □N/A

1. The decrease in computer interconnect quantity is due to both the decline in shipment volume itself and

higher unit prices resulting from internal vertical integration;

2. Revenue from communication interconnects increased but production and shipment volumes decreased

primarily due to changes in product structure and higher integration levels in shipments;

3. The decrease in end-of-period inventory for consumer electronics is attributed to the realization of sales from

strategic stocking at the end of 2022 which was carried out for sales in 2023;

(4) Performance of material sales contracts and material purchase contracts by the Company as of the end of the reporting

period

□Applicable □N/A

(5) Components of operating cost

Segment

Segment

In RMB

Segment Item 2023 2022 Y/Y %

26Luxshare Precision Industry Co. Ltd. Annual Report 2023

% of % of change

Amount operating Amount operating

cost cost

Computer interconnect

Cost of

products and precision 5936846692.39 2.90% 8991105125.09 4.78% -33.97%

sales

components

Automotive interconnect

Cost of

products and precision 7781748026.29 3.80% 5159940778.89 2.75% 50.81%

sales

components

Communication

Cost of

interconnect products and 12241553918.40 5.97% 11405956391.67 6.07% 7.33%

sales

precision components

Cost of

Consumer electronics 176289664722.15 85.98% 159057762186.53 84.64% 10.83%

sales

Other connectors and other Cost of

2791487099.361.36%3314115803.201.76%-15.77%

business sales

Remark

None.

(6) Change in the scope of consolidation during the reporting period

□Yes □No

In 2023 the establishment of new subsidiary companies by the company led to changes in the scope of consolidation as follows:

Company Name Establishment Date

Luxshare Precision Industry (Huzhou) Ltd. 2023/1/1

TIME Interconnect Technology Limited 2023/1/10

Kunshan TIME Interconnect Technology Limited 2023/1/19

Luxshare Technologies International Inc. 2023/3/24

Linkz Cables Mexico S.DE R.L. DE C.W. 2023/4/14

ICT Legend S. DE R.L. DE C.V. 2023/5/8

Luxshare Precision Industry (Shantou) Co. Ltd. 2023/6/19

Luxshare Precision Industry (Anhui) Co. Ltd. 2023/7/21

Luxshare Technologies Mexico S. de. R.L.de c.v. 2023/8/14

Luxshare Technologies (Vietnam)Co. ltd 2023/8/29

Dongguan Luxshare Holdings Co. Ltd. 2023/9/5

Luxcase Precision Technology (Vietnam)Co. Ltd. 2023/11/10

27Luxshare Precision Industry Co. Ltd. Annual Report 2023

In 2023 the deregistration of subsidiary companies by the company resulted in changes in the scope of

consolidation as follows:

Company Name Establishment Date

Kunshan Luxshare Precision Mould Co. Ltd. 2023/2/6

Henan Leader Precision Industry Co. Ltd. 2023/6/21

Other changes in the scope of consolidation include the absorption merger of Taiwan Qiao Investment Co. Ltd.by SpeedTech Co. Ltd. SpeedTech Co. Ltd. assumed its debts and liabilities while Taiqiao Investment Co. Ltd.was deregistered.

(7) Material changes or adjustments in respect of business products or services of the Company during the reporting period

□Applicable □N/A

(8) Major customers and suppliers

Major customers of the Company:

Aggregate sales revenue from top 5 customers (RMB) 191203704609.15

Proportion of aggregate sales revenue from top 5 customers to

82.44%

annual sales revenue

Proportion of aggregate sales revenue from related parties

0.00%

among top 5 customers to annual sales revenue

Particulars of top 5 customers:

No. Name of customer Sales revenue (RMB) % of annual sales revenue

1 Customer 1 174489981736.18 75.24%

2 Customer 2 6031671165.64 2.60%

3 Customer 3 4877559242.24 2.10%

4 Customer 4 3219651965.78 1.39%

5 Customer 5 2584840499.31 1.11%

Total -- 191203704609.15 82.44%

Other information of major customers:

□Applicable □N/A

Major suppliers of the Company:

Aggregate purchase amount from top 5 suppliers (RMB) 115275781375.25

Proportion of aggregate purchase amount from top 5 suppliers to

65.16%

annual purchase cost

Proportion of aggregate purchase amount from related parties

0.00%

among top 5 suppliers to annual purchase cost

Particulars of top 5 suppliers:

No. Name of supplier Purchase amount (RMB) % of annual purchase cost

1 Supplier 1 109487264912.33 61.89%

2 Supplier 2 1506823978.96 0.85%

3 Supplier 3 1463571008.07 0.83%

28Luxshare Precision Industry Co. Ltd. Annual Report 2023

4 Supplier 4 1438333951.40 0.81%

5 Supplier 5 1379787524.49 0.78%

Total -- 115275781375.25 65.16%

Other information of major suppliers:

□Applicable □N/A

3. Expenses

In RMB

Y/Y %

2023 2022 Reason of material change

change

The growth in personnel compensation

Sales expenses 889024421.63 831398139.60 6.93%

and benefits

Continuing to adhere to the principle of

conservatism some of the research and

development expenses not directly

attributable are transferred to general

General expenses 5542856994.26 5075668085.35 9.20% and administrative expenses. This is

mainly due to increases in personnel

compensation and benefits as well as

increases in depreciation expenses and

material consumption costs.The increase in interest income and

Financial

482869327.02 882721138.77 -45.30% expenses as well as the impact of

expenses

exchange rate fluctuations.Continuing to adhere to the principle of

conservatism some of the research and

development expenses not directly

attributable are transferred to general

R&D expenses 8188767532.85 8447038946.21 -3.06% and administrative expenses. This is

mainly due to increases in personnel

compensation and benefits as well as

increases in depreciation expenses and

material consumption costs.The accelerated depreciation of fixed

assets and provisions for asset

Income tax

641829343.18 667318205.34 -3.82% impairment along with changes in tax

expenses

loss carryforwards have led to changes

in deferred income taxes.

4. R&D investments

□Applicable □N/A

Expected effect on the

Description of major

Purpose Progress Objectives future development of

R&D project

Company

29Luxshare Precision Industry Co. Ltd. Annual Report 2023

Ensure stable power

Achieve effective

supply and signal

connection of battery

XC2C New Energy transmission inside the

modules and accurate Enhanced

Battery Pack Harness Mass production battery pack through

transmission of signals technological

Assembly delivered the improvement of

to support the innovation capabilities

Development Project R&D process

development and expanded market share

technology for new

popularization of new

energy battery pack

energy vehicles

wiring harnesses

Broadened smart

driving product

Development of ADAS Achieve product

Achieve production categories enriched

and Autonomous development based on

Prototype in trial manufacturing of data new energy product

Driving Domain high-computing power

production fusion intelligent lines to accumulate

Controllers based on autonomous driving

driving products technology for

TDA4VM Chip chips

achieving L3 assisted

driving

In response to the

current development

Insulation

trend develop core

performance: 500VDC

products for the new

voltage insulation

energy vehicle industry

resistance ≥ 100MΩ;

increase the market

Reduce temperature at withstand voltage

share of domestically

cable and connector performance: 2000VAC

produced charging

Research and junctions to enhance voltage leakage current

guns promote

development of liquid operational safety; ≤ 5mA; charging gun

technological

cooling system for new adding overheat self- Pilot testing phase protection level: IP55

advancement in the

energy vehicle charging power-off function to Operating environment

industry with an annual

gun improve charging temperature T: -20℃≤ T

demand of

efficiency and mitigate ≤ 60℃; leakage short

approximately 20

charging risks circuit and protection

million sets and an

ground loss control

annual output value of

box protection time t: t

approximately 300

< 100 ms; charging

million yuan achieving

current: up to 500A

a profit and tax of over

50 million yuan

Obtain CCCor gaming

console video data

Broaden the

Research and through in-car

Achieve full product classification of smart

development of NBOX infotainment system Sample debugging in

functionality driving products and

based on Rockchip enhancing with 2D/3D progress

development expand the business

RK3588 chip rendering and

scope

outputting video data to

VR/AR glasses

800G optical module a 1. Master independent 1. The company

crucial component in intellectual property collaborates closely

the communication rights structural with core customers

Research and

industry has long been design PCB paddle enabling early

development of low-

dominated by major Completion of card design understanding of

power hot-swappable

companies from Europe optimized sample optomechanical design; customer needs

optical module based

and America such as production 2. The product supports cooperating with

on eight-channel OSFP

Coherent Intel a signal rate of 53Gbd customers for rapid

form factor

Broadcom etc. in PAM4 simultaneously research and

terms of interface downward compatible development and

formulation and with 25.78125Gbps launching products to

30Luxshare Precision Industry Co. Ltd. Annual Report 2023

protocol development. NRZ meet the demand for

After years of signal/26.5625GBd rapid updates of

development various PAM4 signal; 3. The electronic products.interfaces such as SFP product supports The company's ability

QSFP DSFP QSFP- Independent PLL to solve problems in

DD OSFP SFP-DD function with PAM4 connector applications

etc. have been and NRZ data is a comprehensive

established to meet transmission functions manifestation of the

different application which can be used for company's research and

scenarios. By bridging and FEC development

developing this hot- truncation of advantages. 2. The

swappable optical PAM4/NRZ systems; 4. layout of complete

module based on the CDB function can optical transmission

eight-channel OSFP update product products allows the

form factor we can firmware on the device company to provide

grasp key technologies and optimize customers with one-

major technical parameters remotely in stop procurement

pointers develop unattended equipment simplifying the

independent rooms; 5. Compatible customer procurement

intellectual property with existing optical process and supplier

rights design and modules easy to switch management. 3. Enter

monitor market trends the AI market supply

chain

Through this project

1. Support the company has

IEEE802.3DJ developed the latest

Research and develop specification; 2. generation of self-

Research and the next-generation Comply with OSFP developed interfaces in

development of OSFP high-speed Optimized sample MSA association servers switches high-

224G interconnect interconnect solution production completed standards; 3. Support performance

solution for data centers to single-channel 224G computing etc.enhance signal PAM4 rate level; 4. enhancing the

transmission rates ESD meets contact company's position in

discharge 8KV air the industry and

discharge 15KV meeting widespread

customer demands

PCIe 6.0 is the future

Research and

Develop customized trend for connectors

development of PCIe Development Product SI testing

products according to and this project will

6.0 CEM connector completed requirements meet

specific customer become one of the

cable assembly PCIe 6.0

requirements important products to

unlock future markets

The development of the

first domestic 224G

Collaborate with Preliminary SI test data

Research and Explore the SI high-speed connector

customers to develop for samples completed

development of OSFP performance limits of enhances confidence

prototypes for next- currently optimizing

224G connector 224G connectors with among customers and

generation high-speed details

customers competitive advantage

I/O connectors

against top companies

in the industry.Research and 1. As a representative

Compliant with SFF-

development of Connector products product of the current

Address the market TA-1016 standard SI

connectors for liquid- have been sampled and PCIe 6.0 standard this

demand for MCIO PCIe testing standards meet

cooled environments are undergoing project not only

6.0 connectors PCIe 6.0 specification

based on PCIe 6.0 reliability testing improves performance

requirements

transmission rates but also meets the

31Luxshare Precision Industry Co. Ltd. Annual Report 2023

requirements of liquid

cooling technology

gaining a market

advantage and

accumulating technical

expertise. 2. The

project's products have

undergone

comprehensive and

rigorous testing by

customers and have

been successfully

trialed on new products

laying a solid technical

and market foundation

for future market

promotion

The developed 140kW

hydrogen fuel cell stack Enter a new field and

Develop hydrogen fuel

Development of can be used in expand into new

cell stacks suitable for

140kW high-power fuel Sample stage transportation product forms this

use in 18-ton heavy

cell stack (commercial vehicles) project serves as a pre-

trucks

and energy storage research project

fields

Due to its low power

consumption

advantages it holds

great appeal at the

client end. Currently it

Develop LPO series Achieve the research primarily awaits market

products targeting Validation has been and development goal demand to increase. As

Ultra-low-power 800G

customer's ultra-low conducted on of halving power the first team to develop

LPO optical transceiver

power application equipment from several consumption compared LPO products we have

module based on the

needs aiming to major customers and to DSP BASED an early advantage in

eight-channel OSFP

replace DSP BASED preliminary test data products while meeting the subsequent market

form factor

products for short- shows good results product transmission increment stage.range applications performance. Additionally

leveraging LPO

products can serve as a

new product

introduction point at

target customers

Through the design of a From January 2023 to 1. High efficiency and

single-phase immersion June 2023: This project energy-saving: Liquid

liquid cooling cabinet has developed a new directly contacting with These aspects are

technical product "metal server components crucial for the

Research and transformation of the product" water-cooling enables fast heat company's strategic

development of existing liquid cooling plate model: transfer saving over layout and

efficient and cabinet inlet and outlet 277176.417T=17AL60 95% energy. 2. Simple competitiveness in the

environmentally arrangement and flow 63-T5 and the core equipment: Supports a liquid cooling field

friendly single-phase channel design is technical solution of maximum server expected to provide

immersion liquid conducted to solve the this project has been operating power of significant support for

cooling technology problem of uneven applied for and 8000W. 3. No the company's revenue

temperature authorized patent by ultrasound: Minimal and benefits in the

distribution inside the Luxshare Thermal fan noise during coming years

existing liquid cooling Technology (Huizhou) operation. 4. Space-

cabinet resulting in Co. Ltd. Patent name: saving: Enables high-

32Luxshare Precision Industry Co. Ltd. Annual Report 2023

high local temperatures Liquid Cooling Device density integration of

of some electronic Patent number: ZL servers saving over

components which 2023 2 0381854.3 80% space. 5. No loss

affects their normal of coolant and water:

operation and service Coolant and cooling

life water circulate within

the system.

1. The structure is

simple facilitating self-

assembly and reducing

costs. The device

comprises a

temperature-sensing

chip module and a

202302-202307: This

water flow module. The This technology

project resulted in a

water flow module belongs to the critical

new product the

includes slots for chip technology in the field

Design a fluid-passing "Metallic Product"

placement used to fix of temperature

and temperature- water-cooling plate

the chip in position detection and control

sensing pipeline device model:

ensuring a tight fit for liquid cooling. It

to address the 217.4*192*13.7mm.between the holds significant

unreliable fixation of The core technical

Research and temperature-sensing importance for the

temperature-sensitive solution of this project

development of chip and the slot of the company's strategic

chips commonly used has been applied for

temperature-sensitive water flow module.2. layout and

which can lead to and authorized as a

pipeline technology for The temperature enhancement of

loosening or patent by Luxshare

liquid cooling systems measurement effect is competitiveness in

detachment resulting Heat Transmission

good with high liquid cooling products.in poor contact and Technology (Huizhou)

efficiency and rapid It is anticipated to

inaccurate temperature Co. Ltd. Patent title: A

response. After provide important

monitoring as well as fluid-passing and

fixation colloids are support for the

high costs temperature-sensing

used to isolate the chip company's revenue and

pipeline device Patent

from the air allowing profitability in the

number: CN

the temperature- coming years

219453680 U

sensing chip to only

conduct temperature

changes received from

the water flow module

without being affected

by surrounding

materials or air.

202302-2023010: This 1. Excellent heat This technology

project has led to the dissipation belongs to the critical

development of a new performance: Based on technology in the field

Design a two-phase

product the "Metallic the size specifications of liquid cooling

immersion cooling

Product" water-cooling of the chassis the heat particularly in the realm

device for mining

plate with model generation of the of immersion phase-

machines to address the

Research and number equipment and the change heat dissipation.poor air-cooling effect

development of heat 182*18.5*313mm. selection of fans this It holds significant

of the air-cooling

exchangers with Additionally the core design maximizes the importance for the

module in existing two-

excellent heat transfer technical solution of arrangement of 5 fans company's strategic

phase immersion

efficiency this project has been to provide sufficient layout and

cooling devices which

applied for and airflow effectively enhancement of

fails to effectively

authorized as a patent removing heat in a competitiveness in

dissipate heat from

by Luxshare Heat timely manner and liquid cooling products.phase-change media

Transmission meeting the heat It is anticipated to

Technology (Huizhou) dissipation provide important

Co. Ltd. Patent title: requirements of the support for the

33Luxshare Precision Industry Co. Ltd. Annual Report 2023

Heat dissipation device equipment.2. Minimal company's revenue and

and mining machine loss of air pressure and profitability in the

Patent number: CN airflow: Specially coming years

219592965 U designed forced-flow

guiding ducts with

smooth transitions at

bends are implemented.The design of the ducts

forms a closed channel

with the heat sink

reducing losses in air

pressure and airflow.

202302-2023012: This

project has resulted in

the development of a

new product the This technology

Design a centrifugal "Computer Peripheral belongs to the field of

1. The centrifugal

drum fan to address Product" heat fan technology and

blower distributes the

issues with existing dissipation fan with holds significant

velocity field more

centrifugal drum fans model number 2B importance for

uniformly at the outlet.including the speed 12038-6000rpm. improving the

Research and 2. The centrifugal

field biased towards the Additionally the core performance and

development of blower provides higher

upper side of the air technical solution of competitiveness of the

centrifugal drum fan airflow and air

outlet hindering heat this project has been company's fan

cooling technology pressure leading to

dissipation and exhaust applied for and products. It is expected

superior gas flow

along the path as well authorized as a patent to provide important

performance and

as uneven speed fields by Luxshare Heat support for the

effectively enhancing

low air volume and low Transmission company's revenue and

its overall performance.air pressure Technology (Huizhou) profitability in the

Co. Ltd. Patent title: coming years

Centrifugal blower

Patent number:

202322468561.1

1. Excellent heat

dissipation

202303-202309: This

performance: The This technology

project has led to the

liquid cooling plate is belongs to the critical

development of a new

positioned on the area of liquid cooling

product the "Power

surface of multiple particularly in the key

Electronic Component"

Design a heat optical modules technology of cooling

optical module with

dissipation-enhanced arranged in parallel plate heat dissipation. It

model number 0707-

electrical connector allowing the cooling holds significant

EP01-5C025.component and liquid liquid circulating importance for the

Application in the Additionally the core

cooling plate to address through the internal company's strategic

research and technical solution of

the weak heat channels of the cooling layout and

development of heat this project has been

dissipation capability of plate to dissipate heat enhancement of

sinks for electrical applied for and

conventional air-cooled from the optical competitiveness in the

connectors. authorized as a patent

electrical connectors modules. field of liquid-cooled

by Luxshare Heat

thereby meeting the 2. Low flow resistance: optical module Transmission

high-power heat products. It is

Technology (Huizhou) By employing parallel

dissipation demands.Co. Ltd. Patent title: and series channels

anticipated to provide

important support for

Electrical connector where the first and

component Patent second main channels

the company's revenue

act as parallel channels and profitability in the number:

coming years

202310693538.4 and each main channel

is predominantly

arranged in a serpentine

34Luxshare Precision Industry Co. Ltd. Annual Report 2023

series internal

bidirectional flow

channels are utilized to

significantly reduce

fluid flow resistance.

1. High efficiency and

energy saving: Direct

contact between the

liquid and server

202303-202312: This components facilitates

project has resulted in rapid heat transfer

the development of a achieving energy

This technology

new product the savings of over 95%. 2.belongs to the critical

"Metallic Product" Excellent heat

domain of immersion

Design a liquid liquid separator with dissipation uniformity:

liquid cooling holding

separator and liquid model number Utilizing multiple inlet

Research and significant importance

cooling device to 86.5*47.3*30mm. pipes connected to the

development of for the company's

address issues in Additionally the core liquid cooling chamber

immersion-cooled strategic positioning

current immersion- technical solution of enhances the coolant

server cabinets and competitiveness in

cooled liquid cooling this project has been inflow rate by

designed for easy the server liquid

systems including applied for and approximately 50%

disassembly cooling product sector.limited inlet pipe authorized as a patent thereby improving

maintenance and It is anticipated to

numbers low coolant by Luxshare Heat cooling efficiency. 3.reassembly. provide important

flow rates and uneven Transmission Extremely low on-site

support for the

heat dissipation. Technology (Huizhou) failure rate and

company's revenue and

Co. Ltd. Patent title: A simplified

profitability in the

liquid separator and maintenance:

coming years

liquid cooling device Maintenance tasks are

Patent number: significantly reduced

2023232842370 leading to a substantial

decrease in on-site

maintenance costs

compared to air

cooling.

1. Enhanced load-

Provide a liquid cooling

202305-202312: This bearing capacity: The

plate and liquid cooling

project has resulted in water-cooling plate

cabinet to enhance the

the development of a consists of plate This technology

structural stability and

new product the components and belongs to the critical

load-bearing capacity

"Metallic Product" partition plates all domain of liquid

of the liquid cooling

water-cooling plate made of extruded cooling for energy

plate. This addresses

with model number aluminum. The load- storage batteries

the challenge of

253.97*192*23.4mm. bearing capacity is holding significant

increased pressure on

Research and Additionally the core increased by 30%. 2. importance for the

the liquid cooling plate

development of liquid technical solution of Space-saving: Suitable company's strategic

due to the higher energy

cooling heat dissipation this project has been for high-density positioning and

density and increased

technology for energy applied for and integration of battery competitiveness in

number of battery cells

storage batteries. authorized as a patent energy and cell liquid cooling products.in energy storage

by Luxshare Heat quantity saving over It is anticipated to

batteries. Such pressure

Transmission 50% of space. 3. No provide important

often leads to

Technology (Huizhou) coolant or water loss: support for the

deformation rupture of

Co. Ltd. Patent title: A Both the coolant and company's revenue and

the liquid cooling

liquid cooling plate and cooling water circulate profitability in the

plate's casing coolant

liquid cooling cabinet within the system coming years.leakage and potential

Patent number: eliminating loss. 4.failures in the cooling

202322594625.2 Cabinet-coupled fire

circulation system

hydrants: Low failure

35Luxshare Precision Industry Co. Ltd. Annual Report 2023

rate and easy

maintenance.Reduce thermal

resistance and enhance

heat conduction

202306-202312: This efficiency the internal This technology

project has led to the cavity of the isothermal belongs to the critical

development of a new plate is interconnected domain of 3D

product the "Metallic with the internal cavity isothermal plates

Product" VC thermal of the pipe body holding significant

Design a 3D isothermal plate with model forming a unified importance for the

plate capable of number XQGP- structure. The metal company's

handling higher power 301016730. powder or metal technological

Research and dissipation and Additionally the core braided mesh capillary development

development of 3D achieving lower technical solution of structures on the inner optimization market

isothermal plate heat thermal resistance this project has been surface of the pipe body expansion and

dissipation technology. values to address the applied for and are connected to the enhancement of

increasing heat flux authorized as a patent metal powder or metal competitiveness in 3D

density of electronic by Luxshare Heat braided mesh capillary isothermal plate

components Transmission structures on the products. It is

Technology (Huizhou) condensation surface anticipated to provide

Co. Ltd. Patent title: panel of the isothermal important support for

3D isothermal plate plate. This facilitates the company's revenue

Patent number: the reflux of the and profitability in the

202322553002.0 working fluid (pure coming years.

water or other

substances) within the

cavity

Develop diffractive

waveguide + Increase product

Providing customers

MicroLED ultra- competitiveness by

Research and with competitive AR

lightweight and thin reducing material and

development of ultra- Trial production/mass glasses products to

smart AR glasses to labor costs thereby

lightweight and thin production enhance the company's

meet the current market bringing greater

smart AR glasses core competitiveness in

demand for profitability to the

the AR industry.monochrome AR enterprise.glasses.Develop the world's

Based on Micro OLED

lightest and thinnest

+ Pancake optical

PC.scheme the binocular

VR standalone unit Enhance product

Research and resolution can reach

utilizing advanced competitiveness by

development of 5120x2560 supporting

graphics processing Trial production/mass reducing material and

interactive ultra- two refresh rate modes

technology capable of production labor costs to bring

lightweight smart VR of 75Hz and 90Hz;

providing users with greater profitability to

headset supports 6DoF and

high-definition low- the enterprise

SteamVR tracking

latency virtual reality

providing a horizontal

experience with a 5K-

field of view of 102°.level headset

Improve the quality and

Research and

Enhance product Enhance product market value of the

development of

functionality and functionality and company's products to

wearable GPS-based Completed

improve product improve product increase

safety metronome for

performance performance competitiveness and

night running

market share

36Luxshare Precision Industry Co. Ltd. Annual Report 2023

Improve the quality and

Research and

Enhance product Enhance product market value of the

development of UWB

functionality and functionality and company's products to

technology application Completed

improve product improve product increase

in car digital keys for

performance performance competitiveness and

wearable devices

market share

Research and Improve the quality and

development of Enhance product Enhance product market value of the

combined wearable functionality and functionality and company's products to

Completed

device for gaze tracking improve product improve product increase

and eye movement performance performance competitiveness and

analysis market share

Research and Improve the quality and

development of Enhance product Enhance product market value of the

acoustic sensor-based functionality and functionality and company's products to

Completed

wearable device for improve product improve product increase

wrist-based heart rate performance performance competitiveness and

monitoring market share

Improve the quality and

Research and

Enhance product Enhance product market value of the

development of

functionality and functionality and company's products to

wearable device Completed

improve product improve product increase

application for safe

performance performance competitiveness and

driving monitoring

market share

Research and Improve the quality and

development of Enhance product Enhance product market value of the

wearable device using functionality and functionality and company's products to

Completed

sensors and machine improve product improve product increase

learning for epilepsy performance performance competitiveness and

detection market share

Improve the quality and

Research and

Enhance product Enhance product market value of the

development of

functionality and functionality and company's products to

wearable sensor device Completed

improve product improve product increase

combined with gait

performance performance competitiveness and

analysis system

market share

Research and Improve the quality and

development of Enhance product Enhance product market value of the

wearable device functionality and functionality and company's products to

Completed

application for people improve product improve product increase

with hearing performance performance competitiveness and

impairments market share

Improve the quality and

Research and

Enhance product Enhance product market value of the

development of non-

functionality and functionality and company's products to

contact blood glucose Completed

improve product improve product increase

detection applied to

performance performance competitiveness and

wearable devices

market share

Improve the quality and

Research and

Enhance product Enhance product market value of the

development of camera

functionality and functionality and company's products to

application for 3D Completed

improve product improve product increase

modeling in wearable

performance performance competitiveness and

devices

market share

37Luxshare Precision Industry Co. Ltd. Annual Report 2023

Research and

Improve the quality and

development of

Enhance product Enhance product market value of the

wearable physiological

functionality and functionality and company's products to

signal measurement Completed

improve product improve product increase

system for detecting

performance performance competitiveness and

emotional responses in

market share

the elderly

Research and Improve the quality and

development of low- Enhance product Enhance product market value of the

power multi-node functionality and functionality and company's products to

Incomplete

wearable motion improve product improve product increase

monitoring system with performance performance competitiveness and

virtual reality market share

After adding an RF

antenna the wireless

charging case can now

establish a Bluetooth

connection with

devices such as

smartphones enabling

the display of

information such as the

battery levels of the With successful product

After the headphones

charging case and development and

are removed from the

Research and headphones on the obtaining a patent the

charging case users can Delivery has been

development of phone. Technical company can enhance

activate the automatic completed and the

wireless charging case specifications: UWB its competitiveness in

wake-up function to patent application is in

with automatic wake- communication has the Bluetooth earphone

obtain information such progress

up functionality been implemented market aiming to

as the charging case's

bringing along the secure more orders and

battery level

feature of locating the drive company profits

charging case. The

UWB positioning

accuracy is less than 0.1

meters with a data

transmission rate of 1

Gbit/s. The pulse

duration is short

between 0.2 and 1.5

nanoseconds

1. Solar Charging

Reminder: In some

situations where there's

insufficient light for

solar-powered The product has been

Research and Meet the demand for

earphones to charge a successfully put into

development of more convenient and

Delivery has been low battery alert is production enhancing

wireless Bluetooth intelligent charging

completed and the automatically triggered the company's

earphones based on solutions for Bluetooth

patent application is in to prevent damage or competitiveness in the

photovoltaic charging earphones thus

progress malfunction due to Bluetooth earphone

and display of battery enhancing user

prolonged low battery market and bringing

level experience

operation. 2. Solar substantial profits.Charging Doesn't

Require Power Supply:

Solar charging devices

operate solely on solar

38Luxshare Precision Industry Co. Ltd. Annual Report 2023

energy eliminating the

need for electrical

power supply and

conserving a significant

amount of energy. 3.Efficient and

Convenient Charging:

Solar charging provides

an efficient and

convenient charging

method with stable

charging possible for

extended periods in

ample sunlight thus

extending battery life.Utilizing AI

technology the product

offers features such as

call recording on-site

recording voice-to-text

transcription multi-

language translation

With the successful

and VIAIMAI

development of the

generative conference

The factory has product it has elevated

assistant. These

deployed three competitiveness in the

functionalities greatly

production lines Bluetooth earphone

assist in recording

aiming for an annual market achieving a

important content

output of 2 million significant leap in both

Research and swiftly organizing

Meet the needs of office units. During the sound quality and

development of meeting minutes and

professionals the office production validation practicality. This

Bluetooth earphones overcoming

headphones offer and testing phases no advancement aims to

capable of recording communication barriers

features tailored for oversights or errors secure more orders for

writing translating posed by various

business use were encountered. The the company thereby

listening and speaking languages and dialects

product meets usage boosting profits.during frequent

requirements boasting Moreover it lays a solid

business trips thereby

international advanced foundation of

significantly improving

levels and reliable technology and market

work efficiency.performance presence for subsequent

Moreover while

market promotion

emphasizing its

efforts

conference office

attributes the product

also seamlessly

integrates all features of

traditional TWS

wireless Bluetooth

earphones

Particulars of R&D personnel

2023 2022 Y/Y % change

Number of R&D personnel

19063184213.49%

(person)

Proportion of R&D personnel

8.20%7.77%0.43%

to total number of employees

39Luxshare Precision Industry Co. Ltd. Annual Report 2023

Education background of R&D personnel

Undergraduate 8947 8327 7.45%

Master 381 332 14.76%

Other 9735 9762 -0.28%

Age of R&D personnel

Below 30 9005 9417 -4.38%

30-4075337706-2.25%

Particulars of R&D expenses:

2023 2022 Y/Y % change

Amount of R&D expenses

8188767532.858447038946.21-3.06%

(RMB)

Proportion of R&D expenses

3.53%3.95%-0.42%

to operating revenue

Amount of R&D expenses

0.000.00

capitalized (RMB)

Proportion of capitalized R&D

expenses to total R&D 0.00% 0.00%

expenses

Analysis of the cause and effect of significant change in the composition of R&D personnel:

□Applicable □N/A

Analysis of significant change in the proportion of R&D expenses to operating revenue compared with 2022:

□Applicable □N/A

Analysis and reasonableness of significant change in the proportion of R&D expenses capitalized:

□Applicable □N/A

5. Cash flows

In RMB

Item 2023 2022 Y/Y % change

Sub-total of cash inflows from

246049309173.22243587978384.021.01%

operating activities

Sub-total of cash outflows from

218444248762.06230860368064.68-5.38%

operating activities

Net cash flow from operating

27605060411.1612727610319.34116.89%

activities

Sub-total of cash inflows from

17874274670.2510037921670.4178.07%

investing activities

Sub-total of cash outflows from

37434186876.0923364287513.5260.22%

investing activities

Net cash flows from investing

-19559912205.84-13326365843.1146.78%

activities

Sub-total of cash inflows from

93759639627.2476864295489.6921.98%

financing activities

Sub-total of cash outflows from

89689373974.6368708047308.2430.54%

financing activities

40Luxshare Precision Industry Co. Ltd. Annual Report 2023

Net cash flows from financing

4070265652.618156248181.45-50.10%

activities

Net increase in cash and cash

12371733891.148390881701.4347.44%

equivalents

Analysis of main causes of material changes in the related data

□Applicable □N/A

1. The increase in net cash flows generated from operating activities is attributed to accelerated customer

payments and sales realization with receipts due to the initial strategic stocking in this period;

2. The increase in both inflows and outflows of cash flows from investing activities is due to financial operations

involving purchases and redemptions;

Analysis of significant difference between net cash flows from operating activities during the reporting period and net profit in current

year

□Applicable □N/A

The difference between the cash flow from operating activities and the profit for the current period

mainly arises from accelerated customer payments sales realization of inventory stocked as part of

the initial strategy at the beginning of the period and a higher amount of long-term asset

amortization absorbed within the net profit;

V. Analysis of non-main business

□Applicable □N/A

In RMB

Whether

% of total or not

Amount Reason

profit sustainabl

e

Investment income from the purchase of financial

assets income from wealth management products

Investment income 1771282791.44 13.75% No

and equity method investment income recognized

from associated enterprises.Gain or loss on changes Investment income on financial assets at fair value

210346832.18 1.63% No

in fair value through profit or loss

Impairment loss on

-1318867316.40 -10.24% Inventory and fixed asset impairment No

assets

Mainly acquisition of default or compensation

Non-operating income 93459027.40 0.73% No

income

Non-operating Mainly payment of default or compensation asset

68334885.79 0.53% No

expenses scrapping losses external donations

Gain on disposal of

122867177.52 0.95% Disposal of production equipment No

assets

Other gains 825189115.07 6.40% Government grants related to income No

Loss on credit 23273879.47 0.18% Mainly payment of default or compensation asset No

41Luxshare Precision Industry Co. Ltd. Annual Report 2023

impairment scrapping losses external donations

VI. Analysis of assets and liabilities

1. Material changes in components of assets

In RMB

December 31 2023 January 1 2023

% of % of

Y/Y %

Reason of material change

Amount total Amount total Change

assets assets

Increase in cash reserves for

Cash and bank safety days and funding

33619539457.5120.75%19367209441.4113.05%7.70%

balances requirements to support

operations and investments

Accounts Optimization of customer

23504481889.0714.51%26043354859.1917.55%-3.04%

receivable payments

Contract assets 0.00% 0.00% 0.00%

Expansion of business scale

realization of sales from initial

Inventories 29757930319.35 18.37% 37363329476.66 25.18% -6.81%

stocking of inventory at the

beginning of the period

Investment Recovery of house rental for

23353936.240.01%92782410.060.06%-0.05%

properties self-use

Recognition of investment

Long-term equity income from associated

4232941741.052.61%2000007642.661.35%1.26%

investments enterprises under the equity

method

Fixed assets 44560506279.62 27.51% 44026022703.69 29.67% -2.16% Expansion of business scale

Construction in Unaccepted equipment and

2226217016.311.37%2695377794.321.82%-0.45%

progress building structures

Right-of-use Mainly leased building

648963968.090.40%941749814.660.63%-0.23%

assets structures

Supplementing working

Bank borrowings 20514182240.47 12.66% 14911899668.93 10.05% 2.61%

capital due to scale increase

Contract liabilities 243566923.42 0.15% 501765453.24 0.34% -0.19% Advance payments for goods

Long-term Supplementing funds required

12038771289.927.43%9205313060.946.20%1.23%

borrowings for expansion in scale

Deducting unreceived

Lease liabilities 552488888.66 0.34% 800739041.51 0.54% -0.20% financing expenses from lease

payments for factories

Investments in foreign

Trade payables 1720764175.32 1.06% 1353266499.91 0.91% 0.15% exchange and wealth

management etc.Advance payments for

Cash and bank

486702941.36 0.30% 586577865.23 0.40% -0.10% materials water and electricity

balances

fees and customs deposits.

42Luxshare Precision Industry Co. Ltd. Annual Report 2023

Proceeds from equity transfer

Accounts export tax rebates and

322407052.710.20%431123451.910.29%-0.09%

receivable deposits and insurance

compensation

Deferred input tax credits

prepaid income taxes to be

Contract assets 2920078401.07 1.80% 2197204594.09 1.48% 0.32% refunded and high-value

certificates of deposit with a

term not exceeding 1 year

Factory and workshop

Inventories 590266003.15 0.36% 810913529.72 0.55% -0.19%

renovation expenses

Mainly arising from equity

payments unrealized profits

from internal asset

Investment

872943835.40 0.54% 1208582281.01 0.81% -0.27% transactions government

properties

subsidies and tax-deductible

losses etc. temporal

differences

Advance payments for

equipment project payments

Long-term equity

9931644112.92 6.13% 1676259912.33 1.13% 5.00% land payments and

investments

certificates of deposit with a

term exceeding 1 year

Company note payment

Fixed assets 492585900.03 0.30% 515054217.52 0.35% -0.05%

transactions

Construction in Impact of initial inventory

45908515295.4328.34%49786483552.5433.55%-5.21%

progress stocking strategy

Right-of-use Accrued expenses and

406677940.530.25%472880196.480.32%-0.07%

assets deposits

Short-term payable bonds and

Bank borrowings 932701803.30 0.58% 3957037125.24 2.67% -2.09% inter-company fund

transactions

Government subsidies related

Contract liabilities 595323601.05 0.37% 665910095.66 0.45% -0.08%

to assets

Mainly temporary differences

resulting from accelerated

Long-term depreciation of fixed assets

883924973.730.55%1606645177.001.08%-0.53%

borrowings and evaluation of appreciation

from non-controlling interests

in business combinations

Analysis of high proportion of overseas assets:

□Applicable □N/A

2. Assets and liabilities at fair value

□Applicable □N/A

In RMB

Gain or Aggregate Impairment Amount Amount

Opening Other Closing

Item loss on changes in loss acquired in sold in the

balance changes balance

changes in fair value recognized the reporting

43Luxshare Precision Industry Co. Ltd. Annual Report 2023

fair value recorded in in the reporting period

in the equity current period

reporting period

period

Financial assets

1. Financial

assets held

for trading

1326226821856687162288421614535616282790

(excluding

50.467.30058.88751.3335.31

derivative

financial

assets)

2.

Derivative 27039649. 65445490. 92485140.financial 45 56 01

assets

4. Other

-

investment 44010699 13442451 25000000. 41184747. 24912225

17479999

s in equity 2.66 3.54 00 36 1.32

3.98

instruments

5. Other

non-current 35700000. 35700000.financial 00 00

assets

Subtotal of

182907341092123713442451162538421618654120055864

financial 0.00 0.00

92.573.883.54058.88498.6926.64

assets

Investment

5875850058758500

in equity

9.829.82

instruments

18290734109212371344245116253842161865415875850025931714

Total

92.573.883.54058.88498.699.8236.46

-

Financial 44318321. 11794242

73665535.-41436.00

liabilities 50 1.18

68

Other changes

Accounts receivable financing represents the balance of 6+9 bank acceptance drafts not yet discounted and discontinued for recognition.According to the standards these balances are reclassified from the accounts receivable bills category to the accounts receivable

financing category.Whether there’s any material change in the measurement properties of main assets of the Company during the reporting period

□Yes □No

3. Encumbrances on assets as of the end of the reporting period

In RMB

44Luxshare Precision Industry Co. Ltd. Annual Report 2023

Item Ending period

Book balance Book value Restricted Restriction

(CNY) (CNY) type status

Restricted due

Cash and cash

3935387136.86 3935387136.86 Margin to issuance of bills

equivalents

letters of credit

Notes Pledged

receivable/Accounts 164567477.58 164567477.58 Pledge financing for notes

receivable financing receivable

Accounts

receivable

Equity

investments

Mortgaged

Fixed assets 635803443.15 635803443.15 Mortgage financing for fixed

assets

Financing

Intangible assets 401674060.39 401674060.39 Pledge through the pledge

of land use rights

Trading

financial assets

Restricted due

Other non-

2874097749.98 2874097749.98 Pledge to issuance of bills

current assets

letters of credit

Total 8011529867.96 8011529867.96

VII. Analysis of investments

1. Overall situation

□Applicable □N/A

Amount of investment in 2023 (RMB) Amount of investment in 2022 (RMB) Y/Y % Change

793376506.361166241440.00-31.97%

45Luxshare Precision Industry Co. Ltd. Annual Report 2023

2. Major equity investments acquired in the reporting period

□Applicable □N/A

3. Major non-equity investment that have not yet been completed in the reporting period

□Applicable □N/A

4. Investment in financial assets

(1) Securities investment

□Applicable □N/A

In RMB

Gain or

loss on Aggregate

Amount

Method Opening changes changes Amount Gain or Closing

Initial acquired Source

Type of Security Short of balance of in fair in fair sold in the loss in the balance of Accounting

investm in the of

security code name measur carrying value in value reporting reporting carrying item

ent cost reporting funds

ement amount the recorded period period amount

period

reporting in equity

period

Stock

listed

on Investment

Tony 2250 - - Self-

domesti Fair 342379 133216 412129 172691 in other

603595 Elect 0000. 169687 0.00 133906 owned

c or value 257.92 878.48 95.00 671.36 equity

ronic 00 586.56 489.63 funds

oversea instruments

s

market

Stock

listed

on Investment

5000 - - - Self-

domesti SDM Fair 724800 281381 in other

430755 0000. 443418 185825 0.00 0.00 443418 owned

c or C value 00.00 81.82 equity

00 18.18 45.45 18.18 funds

oversea instruments

s

market

7250--

414859114634412129200829

Total 0000. -- 214029 0.00 178248 -- --

257.92333.0395.00853.18

00404.74307.81

(2) Investment in derivatives

□Applicable □N/A

1) Investment in derivatives for the purpose of hedging during the reporting period

□Applicable □N/A

46Luxshare Precision Industry Co. Ltd. Annual Report 2023

In RMB 10000

Gain or loss

Aggregate Amount

on changes in Amount End-Term

Initial changes in sold in

Type of Opening fair value acquired in Closing Investment

investment fair value the

derivative balance during the the reporting amount / Net Assets

cost recorded in reporting

reporting period Ratio

equity period

period

1018470

Forward 55577.51 55577.51 16825.61 8068.71 1178915.16 216022.35 3.84%.32

2098021

Option 21590.26 21590.26 32143.23 12965.98 2420158.59 343727.31 6.10%.54

3116491

Total 77167.77 77167.77 48968.84 21034.68 3599073.75 559749.66 9.94%.85

Whether there’s any material change in the

accounting policies and accounting

principles for hedge business in the No material change

reporting period as compared with the

preceding reporting period

Explanation of the actual profit and loss situation for the reporting period: During the

reporting period (January 1st to December 31st) the company engaged in foreign exchange

Actual gain or loss in the reporting period

derivative transactions with an amount of approximately CNY489.6884 million included in

the current period's profit and loss.Explanation of the hedging effect: The company conducts foreign exchange derivative

transactions in accordance with the principles of legality prudence safety and effectiveness

without engaging in speculative or arbitrage transactions. All transactions are based on

Description of hedging effects normal production and operation aiming to lock in target exchange rates and prevent adverse

effects from significant fluctuations in exchange rates. The company strictly conducts

hedging transactions based on its foreign currency holdings with overall risk being

controllable.Source of funds Self-owned funds

1. We conduct foreign exchange derivative transactions for the purpose of fixing costs and

avoiding and preventing foreign exchange and interest rate risks and prohibit any

speculation.

2. We have established strict business management policy regarding financial derivative

transactions which contain explicit provisions on the principle of operation approving

power internal operating process information segregation measures internal risk controls

information disclosure and other issues relating to financial derivative transactions to control

the risks associated with such transactions.Analysis of risks associated with the

3. We carefully examine the terms of contracts entered into with the relevant banks and

derivatives held in the reporting period

strictly implement the risk management policy to prevent legal risks.(including without limitation market risk

4. We continuously follow up on the changes in the market price or fair value of the relevant

liquidity risk credit risk operational risk

foreign exchange derivatives promptly assesses the changes in risk exposures of such foreign

and legal risk) and related risk control

exchange derivatives reports to the management on a regular basis promptly reports the

measures

abnormal situations discovered calls attention to the relevant risks and takes the appropriate

emergency measures.

5. In order to prevent any delay in the delivery of forward exchange contracts we attach great

importance to the management of accounts receivable and have established safety

management measures to prevent any delay in the payment of accounts receivable.

6. Our Internal Audit Department is responsible for supervising and auditing the decision-

making management execution and other issues in respect of foreign exchange derivative

transactions.Changes in the market price or fair value of Change in the fair value of a foreign exchange derivative is the difference between its fair

the derivatives held in the reporting period market price in the month in which the delivery date determined by the Company falls and

47Luxshare Precision Industry Co. Ltd. Annual Report 2023

(in the analysis of the fair value of its contract price.derivatives the specific approaches

assumptions and parameters used shall be

disclosed)

Whether or not involved in any litigation N/A

Disclosure date of the announcement of the

Board of Directors approving the February 22 2023

investment in derivatives (if any)

The Company conducts foreign exchange derivative transactions for the purpose of avoiding

foreign exchange risk arising from fluctuations in the foreign exchange rates of RMB and

effectively controlling the uncertainties of costs caused by foreign exchange risk. The

Special opinion issued by the independent Company has established the Business Management Policy Regarding Financial Derivative

directors regarding the Company’s Transactions to enhance risk management and control over foreign exchange derivative

investment in derivatives and related risk transactions. In addition the Company only provides self-owned funds rather than any

control measures offering proceeds as deposit for derivative transactions. The review voting and other

procedures relating to such transactions have complied with the Company Law the AOA and

other applicable regulations. We all agree to the company engaging in the aforementioned

business.

2) Investment in derivatives for the purpose of speculation during the reporting period

□Applicable □N/A

No investment in derivatives for the purpose of speculation existed during the reporting period.

5. Use of offering proceeds

□Applicable □N/A

None of proceeds has been used during the reporting period

VIII. Sale of material assets and equities

1. Sale of material assets

□Applicable □N/A

No material asset has been sold during the reporting period.

2. Sale of material equities

□Applicable □N/A

IX. Analysis of major controlled and investee companies

□Applicable □N/A

Major subsidiaries and investee companies representing more than 10% of the net profit of the Company

In RMB

Company Type Main Registered Total assets Net assets Operating Operating Net profits

48Luxshare Precision Industry Co. Ltd. Annual Report 2023

business capital income profit

Purchase

and sale of

electronic

products

data lines

connection

Luxshare

lines USD 5 84503050 11550791 19058778 34084727 32637109

Precision Subsidiary

connectors million 646.45 180.98 9169.69 00.36 94.65

Limited

computer

and

peripherals

plastic and

hardware

products.Sales and

services in

respect of

internal and

external

connection

USD

lines for IT

ICT-Lanto 15329032 58617385 62495296 58155505 12401802 11147065

Subsidiary communica

Limited 3 650.65 61.19 976.54 41.06 21.54

tion and

consumer

electronic

application

s and

precision

connectors.Computer

peripherals

connection

lines and

connectors;

new-type

electronic

component

s

(electronic

devices)

instruments CNY

Lanto and 23200000 22231655 75782555 22931796 52448491 56984621

Electronic Subsidiary accessories 00 308.24 07.27 475.81 4.22 3.47

Limited for

communica

tion and IT

purpose

plastic

rubber and

hardware

products;

research

developme

nt

production

and sale of

49Luxshare Precision Industry Co. Ltd. Annual Report 2023

special

electronic

equipment

testing

instruments

tools

molds

remote

control

dynamic

models and

related

supplies

and

component

s;

production

and sale of

power

supply

units and

wireless

transmissio

n products;

developme

nt of

software;

import and

export of

goods and

technology.Licensed

items:

production

of Class II

medical

devices;

Class II

value-

added

telecommu

nications

services.General

items:

manufactur

ing of

automotive

component

s and

accessories

; research

and

developme

nt of

automotive

component

s;

50Luxshare Precision Industry Co. Ltd. Annual Report 2023

wholesale

of

automotive

component

s and

accessories

; sale of

automotive

component

s and

accessories

; sale of

mechanical

component

s and spare

parts;

manufactur

ing of opto-

electronic

component

s; sale of

opto-

electronic

component

s; research

and

developme

nt of

special

electronic

materials;

research

and

developme

nt of

household

appliances;

research

and

developme

nt of

motorcycle

component

s;

manufactur

ing of

lighting

equipment;

manufactur

ing of

transformer

s rectifiers

and

inductors;

manufactur

ing of

computer

software

51Luxshare Precision Industry Co. Ltd. Annual Report 2023

hardware

and

peripheral

devices;

manufactur

ing of

power

transmissio

n

distribution

and control

equipment.Technology

developme

nt

technical

consulting

and

technical

services in

respect of

computer

accessories

; design

R&D and

production

of precision

stamping

molds

(precision ≥

0.02mm)

precision

Luxcase cavity

Precision molds CNY

3539469614807257790791132117124120051775

Technology Subsidiary (precision ≥ 62643129

727.13564.66772.1552.4924.24

(Yancheng) 0.05mm) 60

Co. Ltd. metal

product

molds non-

metal

product

molds and

standard

parts for

molds;

production

of high-

temperatur

e resistant

molded

insulating

materials

stamped

hardware

parts

rivets

shafts

52Luxshare Precision Industry Co. Ltd. Annual Report 2023

mechanical

component

s and other

component

s for 3C

electronics

products;

industrial

design

product

design

(exterior

design

structural

design

circuit

design

graphic

design

etc.); lease

of own idle

equipment;

wholesale

commissio

n agency

(except

auction)

import

export and

supporting

services in

respect of

the

aforesaid

products

and related

component

s. General

items:

Manufactur

ing of

mobile

terminal

devices;

manufactur

ing of

communica

tion

equipment;

manufactur

ing of

electronic

component

s;

manufactur

ing of

forgings

and powder

53Luxshare Precision Industry Co. Ltd. Annual Report 2023

metallurgy

products;

manufactur

ing of

computer

software

hardware

and

peripheral

devices;

retail of

computer

software

hardware

and

auxiliary

equipment.Subsidiaries acquired and disposed of during the reporting period

□Applicable □N/A

Effect on the production operation

Company name Method of acquisition or disposal and results of the Company taken as

a whole

No significant effect on the

Luxshare Precision Industry (Huzhou) Ltd. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Kunshan-Luxshare RF Technology Co. Ltd.Canceled production operation and results of

Wuzhong Branch

the Company taken as a whole

No significant effect on the

TIME Interconnect Technology Limited Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Dongguan Leader Precision Industry Co. Ltd.Newly established production operation and results of

Dongkeng Branch

the Company taken as a whole

No significant effect on the

Kunshan TIME Interconnect Technology Limited Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Kunshan Luxshare Precision Mould Co. Ltd. Canceled production operation and results of

the Company taken as a whole

No significant effect on the

Luxshare Technologies InternationalInc. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Linkz Cables Mexico S.de R.L.de C.V. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

ICT Legend S.DE R.L.DE C.V. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Luxshare Precision Technology (Shantou) Co. Ltd. Newly established

production operation and results of

54Luxshare Precision Industry Co. Ltd. Annual Report 2023

the Company taken as a whole

No significant effect on the

Taiqiao Investment Co. Ltd. Merged production operation and results of

the Company taken as a whole

No significant effect on the

Henan Leader Precision Industry Co. Ltd. Canceled production operation and results of

the Company taken as a whole

No significant effect on the

Luxshare Precision Industry (Anhui) Co. Ltd. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Dongguan Luxshare Holdings Co. Ltd. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Luxshare Technologies (Vietnam) Co. LTD Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Luxshare Technologies Mexico S. de.R.L.de C.V. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Luxcase Precision Technology (Vietnam) Co. Ltd. Newly established production operation and results of

the Company taken as a whole

No significant effect on the

Dongguan Luxshare Technologies Co. Ltd. Dalian

Newly established production operation and results of

Branch

the Company taken as a whole

No significant effect on the

Xuancheng Luxshare Precision Industry Co. Ltd.Newly established production operation and results of

Kunshan Branch

the Company taken as a whole

Particulars of significant controlled and investee companies

N/A

X. Structured entities controlled by the Company

□Applicable □N/A

XI. Prospects for future development of the Company

1. Situations of the industry

Refer to I. Situations of our industry in the reporting period under Section III Management’s Discussion and

Analysis.

2. Future growth strategy

Currently the company has established a diversified integrated and synergistic strategic framework in the

fields of consumer electronics automotive telecommunications and others. The three core business segments are

advancing together laying a solid foundation for the company's long-term sustainable development. In the future

55Luxshare Precision Industry Co. Ltd. Annual Report 2023

facing new environments markets and customers the company will continue to implement the "three five-year"

development plan. While consolidating the foundation of the consumer electronics business it will respond to the

rapid development trends in the telecommunications market and the new energy vehicle market. It will dynamically

allocate internal and external resources to fully support the high-quality growth of telecommunications/data center

and automotive businesses. In terms of research and development innovation the company will continue to build a

top-notch R&D talent team and deeply focus on the composite development of underlying technologies emerging

materials and process technologies. Combining accurate understanding of the evolution trends of cutting-edge

technologies with in-depth analysis of customer product pain points the company will proactively invest more R&D

resources with the starting point of "thinking beyond customers' imagination." This aims to conduct sufficient pre-

research and technical reserves for customers' next-generation products broaden the company's capability

boundaries and thereby create the company's differentiating competitive advantages. In smart manufacturing the

company will fully leverage digital applications and AI artificial intelligence to empower the production

manufacturing end innovating comprehensively in product design research and development mass production

and testing. This will help customers achieve more efficient high-quality and cost-effective product implementation.

3. Business plan for the next year

Looking ahead to 2024 the complex and ever-changing external environment will continue to present certain

challenges for the industry in which the company operates. However in the face of new trends and patterns in

economic and social development these challenges often conceal enormous development opportunities. Based on

this understanding the company will persistently adhere to its core business pinpoint its role in the industry chain

leverage its unique strengths and act as a "ferryman" to create more value for both customers and the industry's

development.Viewed from the perspective of industry development cycles each boom cycle in the consumer electronics

sector is primarily driven by new demand sparked by technological advancements. Whether it's smartphones smart

wearables smart homes or virtual reality the company will continue to deepen its vertical integration capabilities

from core components and modules to complete system assembly. It will optimize the company's development

capabilities in underlying technologies and processes. Leveraging years of manufacturing experience and market

influence accumulated in the consumer electronics industry coupled with the extension into various niche fields

through the integration of "AI+" the company aims to continuously empower and differentiate its products creating

richer ecosystem combinations for specific scenarios.In the telecommunications field the company will continue to drive technological innovations in products such

as optical/electrical connections liquid cooling power supplies and RF communications. Guided by industry

technological advancements through comprehensive preliminary research and scenario simulations it will deeply

grasp the core value of the industry chain and build core competitiveness with moat advantages. In terms of

expanding business opportunities the rapid iteration of AI technology is driving rapid growth in computing power

56Luxshare Precision Industry Co. Ltd. Annual Report 2023

demand while also imposing higher requirements on hardware performance such as transmission and cooling.Facing new markets and opportunities the company will accurately position top cloud service customers

domestically and abroad swiftly forming differentiated competitive advantages focusing on forging the ability to

provide high-value-added products and services for leading global customers thus creating more growth momentum

for the company's second growth curve.In the automotive product field with more and more traditional OEMs and consumer electronics terminal brand

manufacturers swiftly entering the new energy vehicle ranks the previously relatively closed supply chain pattern

is undergoing significant changes. Against this backdrop manufacturers with experience in both consumer

electronics and automotive industry R&D and manufacturing will be better positioned to adapt to the future

automotive industry's efficient responsive development models and rhythms. Currently the company's team has

accumulated over a decade of experience in the automotive field forming four major segmented business sectors:

automotive wiring harnesses/connectors intelligent cabins vehicle electronics and power management. Based on

this it has created a complete product matrix and vertically integrated service system. In the future the company

will continue to consolidate its existing capabilities continuously improve the coverage of its superior products

among diverse customers at home and abroad and leverage platform advantages and the outbound resources of

deep strategic cooperation. This will enable the company's Tier 1 products to continuously refine and enhance their

competitiveness through real-world practice laying a solid foundation for achieving the medium- to long-term goal

of becoming a global automotive Tier 1 leader in the next fifteen years.Looking back on the past year the achievements we have made embody the wisdom and sweat of all colleagues

as well as our unremitting pursuit of high quality and sustainable development and our firm determination and

belief in building a "century-old shop". Looking ahead we will adhere to our original aspiration maintain strategic

stability continuously enhance our ability to seize opportunities respond to challenges turn crises into opportunities

and foster opportunities. Through continuous improvement of internal operational management capabilities and

tapping into internal potential we will strive for perfection in various platform operation mechanisms operational

efficiency and operational quality with a "craftsman spirit" ensuring adaptation to the development needs of various

industrial modules. We are committed to realizing the grand blueprint of the "three five-year" strategic plan in an

era full of opportunities and challenges.

4. Capital required for future development strategy and capital utilization plan

As of the end of 2023 the company's asset-liability ratio was 56.61%. In 2024 we will continue to promote the

high-quality development of our business in a solid and orderly manner and we still have a need for funds in the

expansion of new markets and investments of new projects. Along with the improvement of our position in the

industry and stabilization of our relationship with customers we have obtained certain competitive advantages. We

will continue to strictly control capital expenditures in each project regularly analyze and review the return on

investment in each capital expenditure project and continue to improve our management of accounts receivable

57Luxshare Precision Industry Co. Ltd. Annual Report 2023

inventories and other areas to maximize the efficiency of capital utilization. We will fully consider the effective use

of financing instruments at different periods according to the requirements of our development strategy and

reasonably adjust our asset and liability structure so as to create more value for our shareholders.

5. Future risks

(1) Risk of fluctuation of macro economy

The current global macroeconomic environment is characterized by significant uncertainty influenced by

multiple challenges such as high US dollar interest rates geopolitical tensions weak international trade and

increasing climate disasters. As a result the overall global economic recovery is sluggish. If the uncertainties of the

macro environment continue for a long time the industry and the Company will be impacted and face certain

challenges.

(2) Exchange rate risk

At present our revenue from the overseas market constitutes a large proportion in our total operating revenue

and our overseas transactions are mainly settled in US Dollars. Our sales on the overseas market totaled

RMB143452850200 and RMB193803646900 and RMB 206756020500 in 2021 2022 and 2023 representing

93.18% 90.55% and 89.16% of our revenue from main business respectively. Because China implements the

managed floating rate system the foreign exchange rates fluctuate along with the changes in domestic and foreign

political and economic environment. If the foreign exchange rates fluctuate greatly the exchange gains or losses

may affect our operating results. In order to reduce the uncertainties caused by fluctuations of foreign exchange

rates on our operating results we will strive to keep abreast of the movement of foreign exchange rates strictly

control the proportion of foreign currency denominated assets in our net assets and through foreign exchange

derivative transactions reduce the effect of the fluctuation of foreign exchange rates.

(3) Management risk

We are committed to promoting the high-quality growth of our business and continuously strengthen the

horizontal expansion and vertical integration in consumer electronics communication automotive and other fields.We have a great number of operating entities which are relatively decentralized. Due to the impact of geopolitics

trade frictions between China and the United States and other factors our major customers will put forward

increasingly high requirements for the international deployment of our production capacity which will in turn put

forward higher requirements for our operation and management capabilities and pool of outstanding talents. If our

management level cannot satisfy the requirements of the rapid growth of scale of our operations we may face certain

management risks.

(4) Risk of relative concentration of customers

We attach great importance to maintaining long-term and stable cooperation relationships with our major

customers. At present our customers are relatively concentrated most of whom are engaged in consumer electronics.

58Luxshare Precision Industry Co. Ltd. Annual Report 2023

Though they are first-class customers in the industry have strong and leading competencies on the market and have

maintained years of stable cooperation relationship with us if any major customer falls into serious difficulties in

its operation we may face certain operating risks. We will further diversify customers products and business. With

a focus on process + underlying technologies as the supporting point we will continue to carry out horizontal

expansion and trans-sector empowerment and strive to explore new markets and new business.XII. Investigation research communication interview and other activities

□Applicable □N/A

Particulars of the

Method of Main topic of

Type of investigation and

Date Place communica Guests discussion and

guests research activity

tion information provided

available at

No. 313

Refer to the Record of

Beihuan

Introduction about Investor Relations

Road On-site

Strategic Cooperation Activity dated

Qingxi investigatio Instituti Institutional

February 24 2023 Framework Agreement February 24 2023

Town n and on investors

signed between us and published on

Dongguan research

Chery Group www.cninfo.com.cn

Guangdon

on February 26 2023

g

Company

meeting

room at

Refer to the Record of

No. 313

Introduction about our Investor Relations

Beihuan Communic

Instituti Institutional operating status in 2022 Activity dated April

April 28 2023 Road ation by

on investors and the first quarter of 28 2023 published on

Qingxi telephone

2023 www.cninfo.com.cn

Town

on May 3 2023

Dongguan

Guangdon

g

Company

meeting

room at

Refer to the Record of

No. 313 Network

Investor Relations

Beihuan platform

Our performance Activity dated May 4

May 4 2023 Road online Other Investor

briefings in 2022 2023 published on

Qingxi communica

www.cninfo.com.cn

Town tion

on May 5 2023

Dongguan

Guangdon

g

Company

meeting Refer to the Record of

room at On-site Investor Relations

Communications at our

No. 313 investigatio Activity dated May

May 22 2023 Other Investor annual general meeting

Beihuan n and 22 2023 published on

of shareholders

Road research www.cninfo.com.cn

Qingxi on May 24 2023

Town

59Luxshare Precision Industry Co. Ltd. Annual Report 2023

Dongguan

Guangdon

g

Company

meeting

room at

Refer to the Record of

No. 313

Introduction about our Investor Relations

Beihuan Communic

Instituti Institutional operating results in the Activity dated August

August 29 2023 Road ation by

on investors first half of 2023 and 29 2023 published on

Qingxi telephone

general situation www.cninfo.com.cn

Town

on August 30 2023

Dongguan

Guangdon

g

Company

meeting

room at Refer to the Record of

No. 313 Investor Relations

Beihuan Communic Introduction about our Activity dated

Instituti Institutional

October 22 2023 Road ation by operating status for three October 22 2023

on investors

Qingxi telephone quarters of 2023 published on

Town www.cninfo.com.cn

Dongguan on October 22 2023

Guangdon

g

XIII. Implementation of the Quality Return Double Improvement Action Plan

Has the company disclosed the Quality Return Double Improvement action plan

□Yes □No

The company disclosed the Announcement on the Quality Return Double Improvement Action Plan on

February 18 2024. The specific contents and the company's specific measures to implement the action plan are as

follows:

1. Deepen Core Business and Focus on Digital Empowerment

Founded in Shenzhen in 2004 and listed on the Shenzhen Stock Exchange in 2010 the company is a precision

intelligent manufacturing enterprise. Its main products cover various fields such as consumer electronics

automotive telecommunications industrial and medical. It primarily serves leading brands both domestically and

internationally providing them with a one-stop solution including core components module products and system

solutions across multiple product categories. In the field of consumer electronics the company focuses on the

composite development of underlying technologies and processes enabling and differentiating products such as

smartphones smart wearables and mixed reality devices. By stacking company products to create scenarios it aims

to build ecosystems across various scenarios. In different ecosystems scenarios and product combinations Lens

60Luxshare Precision Industry Co. Ltd. Annual Report 2023

Technology is committed to becoming the most complete solution provider. In the field of telecommunications the

company has long been committed to high-speed interconnection products. Leveraging mature process development

and precision manufacturing capabilities it starts from core components such as electrical connections optical

connections base station RF cooling and power supplies extending widely to module and system-level products

forming a vertically integrated service capability in the field of communications. In the automotive field with the

continuous evolution of the global automotive market towards electrification intelligence connectivity and sharing

the company fully leverages its accumulated capabilities in basic technologies such as sound light electricity heat

magnetic and radio frequency as well as process development experience in the fields of consumer electronics and

telecommunications over the years. It applies these to automotive wiring harnesses automotive connectors

intelligent cabins and intelligent driving products achieving cross-domain applications. Meanwhile under the

guidance of the "three five-year" strategic plan the company's management constantly monitors market dynamics

adapts to industry trends and focuses on forward-looking layouts around its main business with the fundamental

goal of coordinated development. It is committed to providing the market with comprehensive and ultimate solutions

for the entire industry chain.Since its establishment the company has always adhered to rooting in the real economy cultivating its main

business and refining its expertise to nurture core competitiveness. It emphasizes both staying true to its roots and

innovation. By fully leveraging the synergies within its industries the company has strengthened its main business

and nurtured forward-looking industries with a steady foundation. With the continuous deep integration of new-

generation information technology and manufacturing the company remains closely aligned with the underlying

logic of precision intelligent manufacturing. It vigorously promotes the empowerment of intelligent and digital

technologies across various key stages of product development design mass production and testing facilitating

the company's transformation and upgrading towards digitalization and ensuring high-quality development. Based

on this foundation the company adheres to prudent investment practices to prevent reckless expansion. It

strengthens the management of the use of raised funds strictly controls investments in specific sensitive industries

or purposes subject to regulations or policy restrictions and avoids shifting focus away from tangible assets towards

speculative ventures.

2. Uphold Innovation and Stimulate New Growth Drivers

Since its listing the company has consistently placed research and development (R&D) innovation at the

forefront of its corporate development. It has continuously invested significantly in R&D technology striving to

innovate traditional manufacturing processes continuously improve automation production levels and modularize

various precision manufacturing process platforms. In addition the company attaches great importance to long-term

cultivation in underlying materials and innovative production technologies. Its R&D team consistently delves into

the forefront of technology exploring advanced precision manufacturing processes and product applications. It

collaborates with core customers to establish advanced technology development laboratories and jointly develop

61Luxshare Precision Industry Co. Ltd. Annual Report 2023

cutting-edge technologies.The company's R&D investment is mainly divided into investment in frontier technology and investment in

product iteration. Investment in frontier technology mainly revolves around the company's medium and long-term

product and business planning layout allocating about 30% of the total R&D expenses to innovative research and

development in areas such as underlying materials processes and processes aiming to propel the company's

products into global industry leaders within the next 20 years. Product iteration investment focuses on R&D

investment in the process from new concepts to NPI (New Product Introduction) for new solutions and products.Over the years the company's R&D investment and achievements have steadily increased. In the past three years

it has accumulated R&D investment of RMB 23.278 billion and currently holds 6202 patents.

3. Standardize Operations and Enhance Governance Levels

Continuously strengthening the company's governance foundation enhancing internal control systems and

promoting the accountability of the "three meetings and one layer." Standardizing the rights and obligations of the

company and shareholders to prevent the abuse of shareholder rights and the exploitation of the management's

dominant position to the detriment of the rights of small and medium-sized investors. Strengthening investor

relations management expanding channels for institutional investors to participate in corporate governance guiding

small and medium-sized investors to actively participate in shareholders' meetings facilitating various investor

entities' participation in decision-making on major matters and enhancing investors' right to speak and sense of

achievement.The company will continue to improve its corporate governance structure and internal control system conduct

governance activities in depth enhance its corporate governance level and provide strong guarantees for the

protection of shareholders' legitimate rights and interests. The company's management will further enhance its

operational management level continuously improve the company's core competitiveness profitability and

comprehensive risk management capabilities aiming for sustainable development and returning value to investors.

4. Strengthen Disclosure and Efficiently Convey Value

Emphasizing the importance and relevance of information disclosure actively disclosing useful information for

investors' investment decisions strengthening key information disclosure such as industry competition company

business and risk factors while reducing redundant information disclosure. Ensuring that information disclosure is

true accurate complete timely fair concise clear and easy to understand. Conducting regular performance

briefings. Preventing speculative concepts and riding on hot topics and guarding against stock speculation risks.The company will actively establish open fair transparent and multidimensional communication channels with

investors continuing to communicate with investors through various forms such as the "Interactive Easy" platform

investor email investor hotline performance briefings etc. Deepening investors' understanding of the company's

production and operation better conveying the company's investment value enhancing investors' identification with

the company and building market confidence

62Luxshare Precision Industry Co. Ltd. Annual Report 2023

5. Share Achievements and Actively Rewarding Investors

The company adheres to a people-centered value orientation insists on investor-centric principles and

remembers the contributions of hundreds of millions of small and medium-sized investors to the development of

China's capital market over more than 30 years. It firmly establishes a shareholder return consciousness ensuring

that investors receive returns and a sense of accomplishment. It strengthens corporate culture construction fosters

a distinctive development vision a positive set of values honest and trustworthy management principles fulfills

social responsibilities and promotes an enterprising and innovative corporate spirit. Adhering to legal compliance

and upholding the public nature of public companies it actively rewards investors stabilizes the market and boosts

confidence. To improve and perfect the company's shareholder return mechanism increase the transparency and

operability of profit distribution policy decisions and actively reward investors the company has formulated

multiple shareholder return plans in accordance with the Company Law of the People's Republic of China the

Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies (Revised in 2023) and

other laws regulations normative documents as well as the provisions of the Articles of Association. Since its

listing the company has implemented several "Future Three-Year Shareholder Return Plans". The company has

distributed a total of RMB 2.48 billion in dividends over the past three years with an annual dividend ratio of no

less than 10%. The cumulative dividend payout over three years accounts for 31.71% (the proportion of profits

distributed in cash dividends over the past three years to the average distributable profits realized over the past three

years).Meanwhile based on confidence in the company's future development prospects recognition of the company's long-term value and a

shared responsibility to promote the stable and healthy development of the capital market Mr. Wang Laisheng one of the company's

actual controllers and vice-chairman increased his holdings of the company's shares through centralized bidding trading on the

Shenzhen Stock Exchange from May 9 2022 to May 10 2022. He acquired 7030910 shares at a total amount of RMB 200.041

million (excluding fees). Please refer to the "Announcement on the Completion of the Term of the Share Increase Plan by One of the

Company's Actual Controllers and Vice Chairmen" (Announcement No.: 2022-085) for details. On October 27 2023 the company

disclosed the "Announcement on the Share Increase Plan by One of the Company's Actual Controllers and Vice Chairmen"

(Announcement No.: 2023-066). Mr. Wang Laisheng intends to increase his holdings of the company's shares through the Shenzhen

Stock Exchange system within six months from October 26 2023. The amount of the increase is not less than RMB 100 million and

not more than 200 million yuan. In this current increase plan as of now Mr. Wang Laisheng has acquired 3181037 shares of the

company through centralized bidding trading on the Shenzhen Stock Exchange with a total amount of RMB 100.3883 million

(excluding fees). Please refer to the "Progress Announcement on the Mid-term of the Share Increase Plan by One of the Company's

Actual Controllers and Vice Chairmen" (Announcement No.: 2024-006) for details.

63Luxshare Precision Industry Co. Ltd. Annual Report 2023

Section IV Corporate Governance

I. Overview of our corporate governance

We have always been committed to promoting the establishment and improvement of a modern corporate

system regulating the operation of the listed company and improving the corporate governance structure. During

the reporting period we kept on improving our corporate governance structure established and improved rules and

regulations regulated corporate operations strengthened information disclosure actively conducted investor

relations management and improved corporate governance level in strict accordance with the requirements of the

Company Law the Securities Law the Rules Governing the Listing of Shares on Shenzhen Stock Exchange (2023

Revision) the Guidelines for Articles of Association of Listed Companies the Code of Corporate Governance for

Listed Companies the Guide on Self-regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange

No. 1 – Code of Operations for Companies Listed on the Main Board and other applicable laws regulations and

normative documents.(I) Shareholders and general meeting of shareholders We perform the procedures for convening holding and

voting at shareholders’ meetings in strict accordance with the Company Law the AOA the Rules of Procedure of

the Shareholders’ Meeting and other relevant provisions and requirements and treat all shareholders fairly. We

permit shareholders to elect to vote in person or on line at our shareholders’ meetings so as to enable minority

shareholders to fully exercise their voting rights. When a general meeting of shareholders considers any related-

party transaction we require the interested shareholders to abstain from voting and ensure that such related-party

transaction is conducted on an arm’s length basis without prejudice to the interests of shareholders. When a general

meeting of shareholders considers any material matter that affects the interests of minority shareholders the votes

cast by them are counted separately. All general meetings of shareholders are convened and held by our Board of

Directors in the presence of lawyers.(II) Relationship with the controlling shareholder We are independent of our controlling shareholder in

operation assets personnel organization and finance and each of our Board of Directors Board of Supervisors

and other internal bodies operates independently. Our controlling shareholder is strict with itself and has not directly

or indirectly interfered with our decision-making and business activities without the authorization of the

shareholders’ meeting or occupied our funds for non-operating purpose.(III) Directors and Board of Directors: We elect directors and engage independent directors in strict accordance

with the relevant procedures set forth in the Company Law and the AOA. We now have seven directors including

three independent directors who are experts in law accounting and other areas. The number of members and

composition of our Board of Directors comply with the requirements of the applicable laws and regulations and the

AOA. Our Board of Directors has four committees including Audit Committee Strategy Committee Nomination

64Luxshare Precision Industry Co. Ltd. Annual Report 2023

Committee and Remuneration and Appraisal Committee each of which has a reasonable member structure and

provides scientific and professional opinions and references for the decision-making of the Board of Directors. Our

Board of Directors has convened and held meetings and implemented the resolutions of the shareholders’ meeting

in strict accordance with the AOA and the Rules of Procedure of the Board of Directors. All directors have performed

their duties diligently and seriously attended the meetings of the Board of Directors and shareholders and

safeguarded the legitimate rights and interests of the Company and the shareholders.(IV) Supervisors and the Board of Supervisors: Our Board of Supervisors has elected supervisors in strict

accordance with the relevant procedures set forth in the Company Law and the AOA. We now have three supervisors

including one chairman. The number of members and composition of our Board of Supervisors comply with the

requirements of the applicable laws and regulations and the AOA. Our Board of Supervisors has convened and held

meetings in strict with the AOA and the Rules of Procedure of the Board of Supervisors. All supervisors have

seriously performed their duties effectively supervised and expressed independent opinions on our financial affairs

and the legality and regulatory compliance of the performance of duties by our directors and executives in good

faith and diligently and safeguarded the legitimate rights and interests of the Company and the shareholders.(V) Performance appraisal and incentive and restraint mechanisms: In order to establish sound incentive

mechanisms and enhance the concept of joint sustainable development of the Company and the management and

key employees we have implemented the share incentive plans to enhance the benefit sharing and restrain

mechanisms between shareholders and key business personnel maintain the stability of the management team and

key business personnel ensure the achievement of our development strategy and business objectives and seek long-

term stable development. The appointment of our executives is open and transparent and complies with the

applicable laws and regulations.(VI) Stakeholders: We fully respect the legitimate rights and interests of stakeholders and strive to coordinate

and balance the interests of society shareholders the Company employees and other stakeholders and jointly

promote our sustained and steady development.(VII) Information disclosure and transparency: We have performed our information disclosure obligations

truthfully accurately timely and completely in strict accordance with the applicable laws and regulations and our

Information Disclosure Management Measures and designated the Securities Times the Shanghai Securities News

and www.cninfo.com.cn as the media for us to disclose information. We have kept non-public information in strict

confidence seriously registered and reported the insiders pursuant to our Insider Management Policy established

the filing policy for insiders and timely submitted the same to the competent regulatory authorities for the record

in accordance with the relevant provisions. We also strictly regulate the reporting of our information to external

information users. When receiving specific visitors we receive them in strict accordance with the relevant

requirements require each of them to sign a Letter of Commitment and timely disclose the relevant record of

investigation and research activity on the e-interaction platform of the Shenzhen Stock Exchange. During the

65Luxshare Precision Industry Co. Ltd. Annual Report 2023

reporting period we did not take advantage of any inside information to trade our shares. We have set up hotline

for investors and investor relations management section and designated special persons responsible for timely

communication with investors. In addition we take the initiative to timely contact and communicate with and report

relevant matters to the competent regulatory authorities in order to accurately understand the relevant regulatory

requirements for information disclosure and further improve the transparency and quality of our information

disclosure. We have disclosed information in a true accurate complete and timely manner in strict accordance with

the requirements for substance and form to ensure that all shareholders have access to our information through

different channels.Is there any significant difference between the actual circumstance of corporate governance of the Company and the requirements of

the applicable laws administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies

□Yes □No

There is no significant difference between the actual circumstance of our corporate governance and the applicable laws administrative

regulations and the provisions of the CSRC regarding corporate governance of the listed companies.II. The Company’s independence of its controlling shareholder and actual controller in assets

personnel finance organization and business

During the reporting period we operated in strict compliance with the Company Law and the AOA gradually

improved our corporate governance structure were independent of our controlling shareholder in assets personnel

finance organization and operation had our own independent and complete business were independent in

management and had independent R&D production and sales systems. During the reporting period our production

and operation were stable and we had sound internal bodies and were able to operate independently in compliance

with the applicable regulations.(I) Integrity of assets

We are a company limited by shares established through an overall change in organization form according to

the law and have our own independent and complete assets. We have performed the relevant procedures for changes

in assets and shareholding according to the law. We have not provided any guarantee for the obligations of

shareholders on the security of our assets or credit or lent any loan or credit line granted to us to any shareholder.We have full control over all of our assets and none of our assets or funds is occupied by our controlling shareholder

to the detriment of our interest.(II) Independence in personnel

Our directors supervisors and executives have been legally appointed in accordance with the Company Law

the AOA and other applicable laws rules and regulations. All of our executives (except independent directors)

exclusively work in and receive remunerations form the Company and do not hold any post (other than director and

supervisor) concurrently in any affiliate of shareholders or any entity engaging in any business same as or similar

to our business. We are independent in employees manage their remunerations social security and other affairs

independently and have sound personnel management policies and system in place.

66Luxshare Precision Industry Co. Ltd. Annual Report 2023

(III) Independence in finance

We have independent financial accounting department and internal audit department and independent

accounting system and financial management policies in place that comply with the applicable regulations and

make financial decisions independently. Since our establishment we have opened separate bank accounts filed tax

returns and paid taxes independently according to the law and executed external contracts independently and had

not shared any bank account or paid any tax in combination with any shareholder.(IV) Independence in organization

We have established a sound governance structure composed of the shareholders’ meeting the Board of

Directors and the Board of Supervisors and independent and complete operation and management bodies that meet

our development requirements and conform to our actual situations each of which performs its powers and functions

independently in accordance with the AOA and our internal management system. Since our establishment our

production operation and offices have been totally independent of our shareholders.(V) Independence in operation

We have complete corporate property rights and independent R&D production and sales systems carry out

business independently keep separate accounts and make decisions and assume liabilities and risks independently

and do not rely on any shareholder or other affiliate in our production and operation activities.III. Horizontal competition

□Applicable □N/A

IV. Annual and extraordinary general meetings of shareholders held during the reporting

period

1. General meetings of shareholders held during the reporting period

Parentage of

Date of

Session Type of meeting investors attending Date of meeting Resolution of the meeting

disclosure

the meeting

A total of 2 proposals including

the Proposal on the Forecast of the

First extraordinary Extraordinary Company's Daily Connected Party

March 10

general meeting of general meeting of 54.17% March 09 2023 Transactions in 2023 were

2023

shareholders in 2023 shareholders approved by vote as disclosed in

our Announcement 2023-019.

67Luxshare Precision Industry Co. Ltd. Annual Report 2023

A total of 9 proposals including

20221 Work Report of the Board

Annual general

Annual general meeting May 23 2023 of Directors were approved by

meeting of 46.02% May 22 2023

of shareholders in 2022 vote as disclosed in our

shareholders

Announcement No. 2023-038.

2. Extraordinary general meetings of shareholders convened at the request of preferred shareholders with

resumed voting rights

□Applicable □N/A

V. Directors supervisors and executives

1. Particulars

Changes Cause of

No. of

No. of in the increase

Opening additional Closing

End End date shares number or

balance shares balance

date of of the disposed of decrease

Name Gender Age Title Status of acquired of

the term term of of in the shares in the

shares in the shares

of office office reportin held due number of

held reporting held

g period to other shares

period

reasons held

Chairman

WANG and February May 18

Female 57 Incumbent

Laichun general 22 2009 2024

manager

WANG Vice February May 18 122586 122586

Male 60 Incumbent

Laisheng Chairman 22 2009 2024 10 10

Additional

shares

Director acquired as

WANG Vice May 21 May 18 133128 a result of

Male 39 Incumbent 729656 601627

Tao General 2021 2024 3 exercise of

Manager incentive

share

options

Additional

shares

Director acquired as

Vice May 21 May 18 101397 a result of

LI Wei Male 44 Incumbent 506989 506989

General 2021 2024 8 exercise of

Manager incentive

share

options

Independ

ZHANG May 22 May 18

Female 61 ent Incumbent

Ying 2018 2024

Director

LIU Male 59 Independ Incumbent May 18 May 18

68Luxshare Precision Industry Co. Ltd. Annual Report 2023

Zhonghu ent 2021 2024

a Director

Independ

SONG May 18 May 18

Female 53 ent Incumbent

Yuhong 2021 2024

Director

Chairman

of the

XIA Decembe May 18

Female 43 Supervis Incumbent

Yanrong r 19 2017 2024

ory

Board

MO Supervis May 22 May 18

Female 44 Incumbent

Rongying or 2018 2024

Supervis February May 18

YI Peizan Female 39 Incumbent

or 22 2009 2024

Additional

shares

Board

acquired as

Secretary

HUANG May 25 May 21 a result of

Male 52 Vice Incumbent 659085 219695 878780

Dawei 2018 2024 exercise of

General

incentive

Manager

share

options

Additional

shares

acquired as

Chief

WU April 15 May 21 a result of

Male 54 Financial Incumbent 750843 232015 982858

Tiansong 2019 2024 exercise of

Officer

incentive

share

options

149051164655

Total -- -- -- -- -- -- 1560326 0 0 --

8309

Whether any director or supervisor retired or any executive was removed during the reporting period

□Yes □No

Changes in directors supervisors and executives:

□Applicable □N/A

2. Positions held

Professional background and main work experience of our current directors supervisors and executives and main positions held by

them in the Company

(I) Directors

Ms. WANG Laichun 57 years old resident of Hong Kong China; EMBA Shenzhen Graduate School of

Tsinghua University; a member of the 14th National Committee of the CPPCC; Vice President of the National

Federation of Industry and Commerce Women Entrepreneurs Association; Vice Chairman of Guangdong Federation

of Industry & Commerce; 2022 Guangdong 3.8 Red Flag Bearer; Invited Vice Chairman of China Association of

Women Entrepreneurs; The founder and controlling shareholder of Luxshare Precision Industry Co. Ltd. serving

as Chairman and General Manager.

69Luxshare Precision Industry Co. Ltd. Annual Report 2023

Mr. WANG Laisheng 60 years old resident of Hong Kong China; Member of the 14th Dongguan Municipal

Committee of the Chinese People's Political Consultative Conference (CPPCC) is now our Vice Chairman of the

Board of Directors; former Executive Director of the Shenzhen Quality Association and Director of the Guangdong

Laboratory Federation. Mr. WANG Laisheng was engaged in individual business since mid-1980s. Mr. WANG

Laisheng and Ms. WANG Laichun jointly purchased the shares of Luxshare Limited in 1999 and founded Luxshare

Precision Industry (Shenzhen) Co. Ltd. in 2004 and has worked as the Vice Chairman of our Board of Directors

until now.Mr. LI Wei 44 years old Chinese nationality undergraduate; is now chief of our Precision Component Business

Unit. Mr. LI Wei has nearly 20 years’ experience in precision manufacturing and has been engaged in product design

validation and quality management in many precision manufacturing companies. He joined Luxshare-ICT in July

2019 responsible for the operation and management of the Corporate Business Division.

Mr. WANG Tao 39 years old Chinese nationality undergraduate; is now chief of our Precision Component

Business Unit. Mr. WANG Tao has rich experience in precision manufacturing of components. He joined Luxshare-

ICT in April 2009 responsible for product development and management.Ms. ZHANG Ying 61 years old Chinese nationality; Doctor of Laws Wuhan University; postdoctoral

fellowship in law Chinese Academy of Social Sciences; Current researcher at the Compliance Research Institute of

Shenzhen University. Ms. ZHANG Ying joined the China University of Geosciences in 1984 as a lecturer and the

Institute of Political Science and Law Wuhan Academy of Social Sciences in 1994 as an assistant researcher Began

working at the Law School of Shenzhen University in 2000. Ms. ZHANG Ying has obtained the qualification as an

independent director from the Shenzhen Stock Exchange and is an Independent Director of our 4th and 5th Board

of Directors.Mr. LIU Zhonghua 59 years old Chinese nationality without foreign permanent residence master professor

of accounting; is now professor and tutor of postgraduates of the Guangdong University of Foreign Studies School

of Accounting Director of the Accounting Society of China Vice Chairman of the Accounting Society for Foreign

Economic Relations & Trade of China Executive Vice Chairman of the Guangdong Association of Management

Accountants and Executive Director of the Accounting Society of Guangdong. Mr. LIU Zhonghua has obtained the

qualification as an independent director from the Shenzhen Stock Exchange and is an Independent Director of

Guangdong Provincial Expressway Development Co. Ltd. GEM Co. Ltd. and Guangzhou Yuexiu Capital

Holdings Group Co. Ltd.Ms. SONG Yuhong 53 years old Chinese nationality; Master of Laws Wuhan University; Bachelor of Laws

Southwest University of Political Science & Law; MBA Grandes écoles de Commerce; is now senior partner of

DeHeng Law Offices (Shenzhen) and mediator of the International Commercial Mediation Center for Belt and

Road Initiative – Luohu Court of Shenzhen Mediation Center. Ms. SONG Yuhong has obtained the qualification as

an independent director from the Shenzhen Stock Exchange and is an Independent Director of our 5th Board of

70Luxshare Precision Industry Co. Ltd. Annual Report 2023

Directors.(II) Supervisors

Ms. XIA Yanrong 43 years old Chinese nationality undergraduate majoring in financial management is now

our supervisor. Ms. XIA Yanrong worked at the Finance Department of 3CEMS Group Prime Technology

(Guangzhou) Co. Ltd. from January 2003 to April 2006 and the Finance Department of Dachang Electronic

Technology (Suzhou) Co. Ltd. a subsidiary of P-TWO from April 2006 to April 2009 and joined us since April

2009 and served as chief of the Finance Department at Kunshan Lanto and chief of the Finance Department and

chief of the Credit Management Department at Luxshare-ICT and is now Director of our Central Finance

Department and Credit Management Department. Ms. XIA Yanrong is a member of our 4th and 5th Board of

Supervisors.Ms. MO Rongying 44 years old Chinese nationality majoring in business administration is now our supervisor.She was chief of the Planning Department at Thomson Multimedia (Dongguan) Co. Ltd. before joining us in June

2007 as chief of the Central Customs Affairs Department. Ms. MO Rongying is a member of our 4th and 5th Board

of Supervisors.Ms. YI Peizan 39 years old Chinese nationality joined our Finance Department in 2004 is now our supervisor.Ms. YI Peizan is a member of our 1st through 5th Board of Supervisors.(III) Executives

Ms. WANG Laichun whose resume is set out in “Directors” above.Mr. WANG Tao whose resume is set out in “Directors” above.Mr. LI Wei whose resume is set out in “Directors” above.Mr. HUANG Dawei 52 years old citizen of Chinese Taiwan graduated from the National Tsing Hua University

Institute of Industrial Engineering Master of Industrial Engineering is now our Deputy General Manager and Board

Secretary. Mr. HUANG Dawei worked in a Fortune 500 company responsible for market development and

operation management before joining Luxshare Electronic Kunshan as the legal representative director and

General Manager in June 2013. Mr. HUANG obtained a Qualification Certificate for Board Secretary from the

Shenzhen Stock Exchange in October 2017 and meets the qualifications required in the Rules Governing the Listing

of Shares on Shenzhen Stock Exchange (2023 Revision) and other applicable laws and regulations and the AOA.Mr. WU Tiansong 54 years old citizen of Chinese Taiwan received a bachelor’s degree from the National

Taiwan University of Science and Technology is now the CFO of Luxshare-ICT. Mr. WU Tiansong served as a

senior auditor at the Audit Department of Deloitte Touche Tohmatsu Limited from August 1996 to August 1999

and worked in the Underwriting Department of Taiwan Yuanda Securities Corp. and served as the chief of the

Accounting Director at Taiwan P-TWO Industries Inc. and Uniwill Computer Corp. and chief of the Finance

Department at Zhongshan Ichia Electronics Co. Ltd. from September 1999 to March 2009. He joined us in 2011.Positions held in shareholders

□Applicable □N/A

71Luxshare Precision Industry Co. Ltd. Annual Report 2023

Positions held in other entities

□Applicable □N/A

End Whether or not

date of receive

Beginning date of term

Name Entity Position the term remunerations

of office

of and subsidies

office from such entity

WANG Luxsan Precision Technology (Jiangsu)

Director November 25 2020 No

Laichun Co. Ltd.WANG Bisaisi Automotive Technology (Suzhou)

Chairman July 18 2018 No

Laichun Co. Ltd.WANG

LaichunL

uxcase

Precision

Technolo

gy

Vice Chairman of

(Yanchen

Xiexun Electronic (Ji’an) Co. Ltd. the Board of November 12 2005 No

g) Co.Directors

Ltd.Chair

manFebr

uary 3

2021No

WANG

Laichun

WANG Luxsan Precision Technology (Jiangsu)

Director November 25 2020 No

Laichun Co. Ltd.WANG

Fujian JK Wiring Systems Co. Ltd. Chairman June 18 2012 No

Laichun

WANG

TIME Interconnect Technology Limited Chairman April 19 2022 No

Laichun

WANG

Chery Holdings Group Co. Ltd. Director June 21 2023 No

Laichun

WANG Luxsan Precision Technology (Jiangsu)

Chairman November 25 2020 No

Laisheng Co. Ltd.WANG Xunmu Information Technology

General Manager April 27 2021 No

Laisheng (Shanghai) Co. Ltd.WANG Lishan Smart Manufacturing Technology Managing Director

November 18 2020 No

Laisheng (Guangdong) Co. Ltd. & Manager

Managing Director

WANG BCS Automotive Interface Solutions

& General December 29 2018 No

Laisheng (Xi’an) Co. Ltd.Manager

WANG

Xiexun Electronic (Ji’an) Co. Ltd. Chairman November 12 2005 No

Laisheng

Vice Chairman of

WANG

Lanto Electronic Limited the Board of May 12 2011 No

Laisheng

Directors

WANG Kunshan Luxshare Precision Industry Co.Director October 25 2011 No

Laisheng Ltd.WANG Dongguan Leader Precision Industry Co.Chairman August 16 2012 No

Laisheng Ltd.

72Luxshare Precision Industry Co. Ltd. Annual Report 2023

Vice Chairman of

WANG Kunshan Luxshare Precision Industry Co.the Board of October 25 2011 No

Laisheng Ltd.Directors

WANG Suining Luxshare Precision Industry Co.Managing Director January 11 2013 No

Laisheng Ltd.WANG Luxshare Precision Industry (Chuzhou)

Managing Director March 24 2014 No

Laisheng Co. Ltd.WANG Fengshun Luxshare Precision Industry Co.Managing Director July 4 2014 No

Laisheng Ltd.WANG Dongguan Luxshare Precision Industry

Chairman November 27 2015 No

Laisheng Co. Ltd.WANG Jiangxi Luxshare Intelligent Manufacture

Director December 25 2015 No

Laisheng Co. Ltd.WANG

Chery Automobile Co. Ltd. Director April 29 2022 No

Laisheng

Managing Director

WANG Lishan Enterprise Management (Zhejiang)

& General March 24 2021 No

Laisheng Co. Ltd.Manager

WANG Guangdong Luxshare & Merry Electronics

Director December 7 2017 No

Laisheng Co. Ltd.Managing Director

WANG

Luxshare Holdings (Guangdong) Co. Ltd. & General November 1 2021 No

Laisheng

Manager

LIU Septem

Guangdong Provincial Expressway Independent

Zhonghu December 4 2017 ber 20 Yes

Development Co. Ltd. director

a 2025

LIU March

Independent

Zhonghu GEM Co. Ltd. March 20 2019 12 Yes

director

a 2025

LIU Septem

Guangzhou Yuexiu Financial Holding Independent

Zhonghu July 19 2022 ber 17 Yes

Group Co. Ltd. Director

a 2023

Managing Director

Luxshare Intelligent Manufacture

LI Wei & General August 16 2021 No

Technology (Changshu) Co. Ltd.Manager

Managing Director

Luxshare Intelligent Equipment (Kunshan)

LI Wei & General December 29 2020 No

Co. Ltd.Manager

Kunshan Luxshare Enterprise Management

LI Wei Managing Director November 4 2020 No

Development Co. Ltd.WANG

Lanto Electronic Limited Chairman November 20 2019 No

Tao

Managing Director

WANG Luxshare Precision Technology (Nanjing)

& General October 19 2021 No

Tao Co. Ltd.Manager

XIA

Luxshare iTech (Zhejiang) Co. LTD. Supervisor April 8 2019 No

Yanrong

XIA

Zhuhai Kinwong Flexible Circuit Co. Ltd. Supervisor December 3 2018 No

Yanrong

XIA Luxshare Precision Industry (Suzhou) Co. Supervisor February 18 2019 No

73Luxshare Precision Industry Co. Ltd. Annual Report 2023

Yanrong Ltd.XIA

Luxshare Electronic (Shanghai) Co. Ltd. Supervisor December 2 2019 No

Yanrong

XIA Luxshare Precision Industry (Enshi) Co.Supervisor October 24 2018 No

Yanrong Ltd.YI Peizan Xiexun Electronic (Ji’an) Co. Ltd. Supervisor August 28 2017 No

YI Peizan Dongguan Luxshare Holdings Co. Ltd. Supervisor September 5 2023 No

HUANG Luxshare Electronic Technology (Kunshan) Director & General

March 17 2014 No

Dawei Co. Ltd. Manager

WU Luxshare Electronic Technology (Kunshan)

Supervisor March 17 2014 No

Tiansong Co. Ltd.WU

Huzhou Jiuding Electronic Co. Ltd. Supervisor December 15 2015 No.Tiansong

Explanati

on about

the posts

N/A

held at

other

entities

Punishments imposed by the securities regulatory authorities in the past three years on the directors supervisors and executives of the

Company currently in office or leaving office during the reporting period

□Applicable □N/A

3. Remunerations of directors supervisors and executives

Decision-making process criteria for determination and actual amount in respect of remunerations of directors supervisors and

executives

During the reporting period directors supervisors and executives were subject to performance appraisal and

their annual income consisted of basic annual salaries and long-terms incentives and include the performance

related to the sustainable development into assessment so as to realize our future development strategy and business

objectives. The Remuneration Committee under the Board of Directors discusses and reviews the remuneration-

related issues on an annual basis. The meetings of the Remuneration Committee shall be divided into regular

meetings and interim meetings and each of such meetings shall be held at least once every year. The remunerations

of our independent directors are determined pursuant to the Independent Director Rules for Listed Companies of

the China Securities Regulatory Commission the AOA and other relevant regulations and with reference to the

overall economic environment and the remunerations offered by listed companies in the industry in which the

Company operates and are then implemented after being reviewed and approved by the Board of Directors and the

general meeting of shareholders. At present our independent directors receive RMB160000 per year plus

reimbursement of travel office and other expenses from us.Compensations of directors supervisors and executives paid in the reporting period:

In RMB 0’000

74Luxshare Precision Industry Co. Ltd. Annual Report 2023

Total Whether or not

remuneration receiving

received from remunerations

Name Gender Age Title Status

the Company from any

(inclusive of affiliate of the

tax) Company

Chairman of the

WANG

Female 57 Board of Directors Incumbent 200 No

Laichun

& General Manager

Vice Chairman of

WANG

Male 60 the Board of Incumbent 150 No

Laisheng

Directors

Director & Deputy

WANG Tao Male 39 Incumbent 144.61 No

General Manager

Director & Deputy

LI Wei Male 44 Incumbent 116.47 No

General Manager

Independent

ZHANG Ying Female 61 Incumbent 16 No

Director

Independent

LIU Zhonghua Male 59 Incumbent 16 No

Director

Independent

SONG Yuhong Female 53 Incumbent 16 No

Director

XIA Yanrong Female 43 Supervisor Incumbent 74.1 No

MO Rongying Female 44 Supervisor Incumbent 80.13 No

YI Peizan Female 39 Supervisor Incumbent 12.92 No

Board Secretary &

HUANG Dawei Male 52 Deputy General Incumbent 136.28 No

Manager

WU Tiansong Male 54 CFO Incumbent 193.79 No

Total -- -- -- -- 1156.3 --

Other descriptions

□Applicable □N/A

VI. Performance of duties by the directors during the reporting period

1. Meetings of the Board of Directors held during the reporting period

Session Date of meeting Date of disclosure Resolution of the meeting

The 15th Refer to the Announcement on Resolutions of the 15th meeting of

meeting of the the 5th Board of Directors disclosed on www.cninfo.com.cn and the

February 21 2023 February 22 2023

5th Board of Securities Times (Announcement No. 2023-005)

Directors

The 16th

Refer to the Announcement on Resolutions of the 16th meeting of

meeting of the

April 27 2023 April 28 2023 the 5th Board of Directors disclosed on www.cninfo.com.cn and the

5th Board of

Securities Times (Announcement No. 2023-023)

Directors

75Luxshare Precision Industry Co. Ltd. Annual Report 2023

The 17th Refer to the Announcement on Resolutions of the 17th meeting of

meeting of the the 5th Board of Directors disclosed on www.cninfo.com.cn and the

June 21 2023 June 22 2023

5th Board of Securities Times (Announcement No. 2023-043)

Directors

The 18th Refer to the Announcement on Resolutions of the 18th meeting of

meeting of the the 5th Board of Directors disclosed on www.cninfo.com.cn and the

August 28 2023 August 29 2023

5th Board of Securities Times (Announcement No. 2023-052)

Directors

The 19th Refer to the Announcement on Resolutions of the 19th meeting of

meeting of the the 5th Board of Directors disclosed on www.cninfo.com.cn and the

October 20 2023 October 21 2023

5th Board of Securities Times (Announcement No. 2023-059)

Directors

The 20th Refer to the Announcement on Resolutions of the 20th meeting of

meeting of the the 5th Board of Directors disclosed on www.cninfo.com.cn and the

November 27 2023 November 28 2023

5th Board of Securities Times (Announcement No. 2023-069)

Directors

The 21st Refer to the Announcement on Resolutions of the 15th meeting of

meeting of the the 21st Board of Directors disclosed on www.cninfo.com.cn and the

December 1 2023 December 2 2023

5th Board of Securities Times (Announcement No. 2023-074)

Directors

The 22nd Refer to the Announcement on Resolutions of the 15th meeting of

meeting of the the 22nd Board of Directors disclosed on www.cninfo.com.cn and

December 29 2023 December 30 2023

5th Board of the Securities Times (Announcement No. 2023-079)

Directors

2. Attendance of the directors at meetings of the Board of Directors and shareholders

Attendance of the directors at meetings of the Board of Directors and general meetings of shareholders

No. of board No. of board

Whether or not No. of

meetings No. of board meetings No. of board

No. of board having been general

attended meetings present by meetings

Director meetings absent from two meetings of

during the present in means of present by

absent from consecutive shareholders

reporting person communicati proxy

board meetings attended

period on equipment

WANG

8 1 7 0 0 No 1

Laichun

WANG

8 2 6 0 0 No 2

Laisheng

LI Wei 8 0 8 0 0 No 2

WANG Tao 8 1 7 0 0 No 2

ZHANG

8 1 7 0 0 No 2

Ying

LIU

8 0 8 0 0 No 2

Zhonghua

SONG

8 1 7 0 0 No 2

Yuhong

76Luxshare Precision Industry Co. Ltd. Annual Report 2023

Explanation about absence from two consecutive meetings of the Board of Directors

N/A

3. Objections raised by the directors regarding matters of the Company

Whether any director has raised any objection regarding matters of the Company

□Yes □No

No director has raised any objection regarding matters of the Company during the reporting period.

4. Other information regarding the performance of duties by the directors

Whether the suggestions put forward by the directors have been adopted by the Company

□Yes □No

Explanation about the adoption or non-adoption by the Company of the suggestions put forward by the directors

During the reporting period all of our directors have performed their duties diligently in strict accordance with

the Company Law the Securities Law the Code of Corporate Governance for Listed Companies the AOA the

Rules of Procedure of the Board of Directors and other relevant provisions and requirements actively attended

meetings of the Board of Directors and shareholders; taken the initiative to ask for information about our operation

management financial position and material events had deep discussions about all resolutions submitted to the

Board of Directors for consideration expressed opinions on our material corporate governance issues and business

decisions and through sufficient communication and discussions reached a consensus to ensure the scientificity

timeliness and effectiveness of decisions and supervised and urged the implementation of resolutions of the Board

of Directors; actively implemented resolutions of the general meeting of shareholders and the Board of Directors

and safeguarded the legitimate rights and interests of the Company and all shareholders. We will continue to improve

our corporate governance structure further enhance the scientific decision-making level of the Board of Directors

and its committees give full play to the role of independent directors in our corporate governance and promote our

operational compliance and continued healthy development.VII. Activities of the committees of the Board of Directors during the reporting period

No. of Performance

Date of Objections

Committee Members meetings Topics Important opinions and suggestions of other

meeting (if any)

held duties

77Luxshare Precision Industry Co. Ltd. Annual Report 2023

BDO China Shu Lun Pan Certified

LIU Public Accountants introduced the

Zhonghua 2022 annual audit plan and

ZHANG Communication arrangements audit procedures and

Ying SONG Meeting of Audit other issues with respect to the audit

Audit Yuhong and January Committee on of 2022 financial report; and

4

Committee BDO China 10 2023 Annual Report requested the colleagues of the

Shu Lun Pan Audit Work in accounting firm to pay special

Certified 2022 attention to related party transactions

Public pledged guarantees capitalization

Accountants and expensing of intangible assets

and other issues.Deliberating Pursuant to the Company Law the

proposals Code of Corporate Governance for

regarding the Listed Companies promulgated by the

2022 annual CSRC and the Work Rules of the

report the Audit Committee of the Board of

reappointment of Directors the Audit Committee

LIU

the accounting performed its duties diligently

Zhonghua

firm the work supervised our internal audit policies

Audit ZHANG April 21

4 report of the and implementation thereof reviewed

Committee Ying and 2023

internal audit our financial information guided the

SONG

department for the work of the Internal Audit

Yuhong

year 2022 and the Department supervised and urged the

work report of the audit conducted by the accounting

internal audit firm and through sufficient

department for the communication and discussions

first quarter of unanimously approved all reports

2023 considered.

Pursuant to the Company Law the

Code of Corporate Governance for

Listed Companies promulgated by the

LIU CSRC and the Work Rules of the

Zhonghua Audit Committee of the Board of

Audit ZHANG August Deliberating 2023 Directors the Audit Committee

4

Committee Ying and 21 2023 Interim Report performed its duties diligently

SONG expressed opinions taking into

Yuhong account our actual situation and

through sufficient communication

and discussions unanimously

approved the Report.

78Luxshare Precision Industry Co. Ltd. Annual Report 2023

Pursuant to the Company Law the

Code of Corporate Governance for

Listed Companies promulgated by the

LIU CSRC and the Work Rules of the

Zhonghua Audit Committee of the Board of

Deliberating 2023

Audit ZHANG October Directors the Audit Committee

4 Third Quarter

Committee Ying and 18 2023 performed its duties diligently

Report

SONG expressed opinions taking into

Yuhong account our actual situation and

through sufficient communication

and discussions unanimously

approved the Report.Pursuant to the relevant provisions of

the Company Law the Code of

Corporate Governance for Listed

Companies promulgated by the

CSRC and the Work Rules of the

Reviewed the

Remuneration and Appraisal

implementation of

Committee of the Board of Directors

the performance

the Remuneration and Appraisal

appraisal

Committee reviewed the

remuneration and

remuneration of the directors

incentive plan for

supervisors and executives and

the directors and

determined that we are developing

executives in the

ZHANG and improving fair and effective

Remunerat preceding year

Ying LIU performance appraisal criteria and

ion and January put forward a

Zhonghua 1 incentive and restraint mechanisms

Appraisal 10 2023 reward proposal

and SONG for executives and the remuneration

Committee for the directors

Yuhong of our executives consists of basic

and executives

monthly salaries and year-end

taking into

performance-based pay. On the basis

account our actual

of such understanding and proposal

business situation

we properly adjusted the basic

and studied the

monthly salaries of certain directors

remuneration and

and executives in order to reflect and

appraisal plan for

produce the effect of incentive and

the next year.fairness. The remuneration of our

directors supervisors and executives

during the reporting period are true

and conform to our performance

metrics.

79Luxshare Precision Industry Co. Ltd. Annual Report 2023

Pursuant to the

Company Law

the Code of

Corporate

Governance for

Listed Companies

promulgated by

the CSRC the

Work Rules of the

Strategy

Committee of the Pursuant to the Company Law the

Board of Directors Code of Corporate Governance for

and other relevant Listed Companies promulgated by the

provisions the CSRC and the Work Rules of the

WANG Strategy Strategy Committee of the Board of

Laichun Committee Directors the Strategy Committee

Strategy ZHANG March 10 reviewed the thoroughly analyzed and studied the

1

Committee Ying and 2023 material events industry in which we operate and put

LIU occurred in 2022 forward reasonable suggestions on

Zhonghua reported our 2023 the planning for and implementation

strategic of the development strategies in

development plan respect of business R&D and new

considered the products which produced significant

Proposal on effect.Identification of

Climate Risks and

Opportunities and

Response

Strategies; and

studied the

significant

strategic issues in

connection with

our development.VIII. Activities of the Board of Supervisors

Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the reporting

period

□Yes □No

The Board of Supervisors has not raised any objection to the supervisory matters during the reporting period.IX. The performance of the duties by the supervisors during the reporting period

(I) Situation of the Board of Supervisors during the Reporting Period

During the reporting period the company's Board of Supervisors convened a total of eight meetings. The

convening and voting procedures of the meetings complied with the provisions of the Company Law the Company's

Articles of Association and other laws regulations and normative documents. The specific details are as follows:

Session Date of meeting Date of disclosure Resolution of the meeting

The 15th meeting of February 21 2023 February 22 2023 Refer to the Announcement on Resolutions of the 15th meeting

80Luxshare Precision Industry Co. Ltd. Annual Report 2023

the 5th Board of of the 5th Board of Directors disclosed on www.cninfo.com.cn

Directors and the Securities Times (Announcement No. 2023-006)

Refer to the Announcement on Resolutions of the 16th meeting

The 16th meeting of of the 5th Board of Directors disclosed on www.cninfo.com.cn

the 5th Board of April 27 2023 April 28 2023 and the Securities Times (Announcement No. 2023-024)

Directors

Refer to the Announcement on Resolutions of the 17th meeting

The 17th meeting of of the 5th Board of Directors disclosed on www.cninfo.com.cn

the 5th Board of June 21 2023 June 22 2023 and the Securities Times (Announcement No. 2023-044)

Directors

Refer to the Announcement on Resolutions of the 18th meeting

The 18th meeting of of the 5th Board of Directors disclosed on www.cninfo.com.cn

the 5th Board of August 28 2023 August 29 2023 and the Securities Times (Announcement No. 2023-053)

Directors

Refer to the Announcement on Resolutions of the 19th meeting

The 19th meeting of of the 5th Board of Directors disclosed on www.cninfo.com.cn

the 5th Board of October 20 2023 October 21 2023 and the Securities Times (Announcement No. 2023-060)

Directors

Refer to the Announcement on Resolutions of the 20th meeting

The 20th meeting of

November 27 November 28 of the 5th Board of Directors disclosed on www.cninfo.com.cn

the 5th Board of

2023 2023 and the Securities Times (Announcement No. 2023-070)

Directors

Refer to the Announcement on Resolutions of the 15th meeting

The 21st meeting of of the 21st Board of Directors disclosed on www.cninfo.com.cn

the 5th Board of December 1 2023 December 2 2023 and the Securities Times (Announcement No. 2023-075)

Directors

Refer to the Announcement on Resolutions of the 15th meeting

The 22nd meeting

December 29 December 30 of the 22nd Board of Directors disclosed on www.cninfo.com.cn

of the 5th Board of

2023 2023 and the Securities Times (Announcement No. 2023-080)

Directors

(II) Fulfillment of Relevant Duties by the Board of Supervisors

1. Compliance with Company Operations

During the reporting period members of the Board of Supervisors attended all meetings of the Board of

Directors and shareholders' meetings and supervised the company's operations. The company strictly adhered to the

requirements of the Company Law the Securities Law the Shenzhen Stock Exchange Listing Rules (Revised in

2023) the Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange Main Board

(Guideline No. 1) and the Company's Articles of Association to ensure compliance with regulations. The decision-

making procedures of the Board of Directors and shareholders' meetings were lawful and effective. Additionally

the company continued to improve its internal control system. During the reporting period there were no instances

of directors or senior management violating laws regulations or the Company's Articles of Association in the

81Luxshare Precision Industry Co. Ltd. Annual Report 2023

execution of their duties.

2. Examination of Company Financial Situation

During the reporting period the Board of Supervisors conducted a meticulous and thorough examination of the

company's financial system and financial condition. It was concluded that the company's financial management was

standardized and orderly. The financial reports for the reporting period objectively and truthfully reflected the

company's financial condition and operating results. The audit report issued by Lixin Certified Public Accountants

(Special General Partnership) for the company which contained an unqualified opinion was objective and impartial.There were no false records misleading statements or significant omissions in the audit report.

3. Related Party Transactions

During the reporting period the Board of Supervisors supervised the related party transactions of the company.The Board of Supervisors believed that the related party transactions occurred by the company during the reporting

period complied with relevant provisions of the Company Law the Securities Law the Shenzhen Stock Exchange

Listing Rules (Revised in 2023) and the Company's Articles of Association. The decision-making procedures were

legal and effective. All related party transactions conducted by the company followed market principles and were

objective fair and impartial. There were no situations that harmed the interests of the company or its shareholders.

4. Storage and Use of Raised Funds

During the reporting period the company did not utilize any raised funds.

5. Establishment and Implementation of Insider Information Management System

The company has formulated an "Insider Information Management System" in accordance with the "Regulatory

Guidelines No. 5 for Listed Companies - Management System for Insider Information Participants of Listed

Companies" and relevant rules. In the year 2023 the company's management registration and reporting of insiders

complied with relevant regulations. There were no instances during the reporting period of listed companies or

related individuals engaging in insider trading using insider information.

6. Internal Control Self-Assessment Report

The Board of Supervisors reviewed the company's self-assessment report on internal controls for the year 2023

as well as the construction and operation of the internal control system. The Board believes that: the company has

established a relatively sound internal control system based on its actual situation and the requirements of laws

regulations and normative documents and it is effectively implemented. The internal control system complies with

relevant laws regulations and normative documents as well as the actual needs of the company playing a good role

in risk prevention and control in the company's management. The 2023 Self-Assessment Report on Internal Controls

truthfully and objectively reflects the construction and operation of the company's internal control.

7. Company Disclosure Situation

During the reporting period the Board of Supervisors supervised the company's fulfillment of its disclosure

obligations and conducted periodic checks on the implementation of the information disclosure management system.

82Luxshare Precision Industry Co. Ltd. Annual Report 2023

The Board believes that during the reporting period the information disclosed by the company was true accurate

timely and complete complying with the relevant laws and regulations as well as the requirements of regulatory

authorities such as the China Securities Regulatory Commission and the Shenzhen Stock Exchange.(III) Work plan of the Supervisory Board for 2024

In 2024 the Board of Supervisors of the company will continue to strictly adhere to the requirements of national

laws regulations and normative documents effectively fulfill the supervisory responsibilities conferred by the

company's articles of association and the Rules of Procedure for the Supervisory Board supervise the company's

standardized operations and improve corporate governance. The Board of Supervisors will continue to target the

standardized development of the company strictly fulfill its supervisory duties on relevant matters provide

reasonable improvement suggestions further enhance the level of corporate governance standardization and

promote the company's sustainable development.X. Employees

1. Number structure of profession and education of employees

Number of current employees of the parent at the end of the

523

reporting period (person)

Total number of current employees of the major subsidiaries at

232062

the end of the reporting period (person)

Total number of current employees at the end of the reporting

232585

period (person)

Total number of salaried employees during the reporting period

232585

(person)

Total number of retired employees to or for whom the parent and

0

the major subsidiaries are obligated to make payments (person)

Structure of profession

Type of profession Number of employees (person)

Production staff 193856

Sales staff 2806

Technical staff 19063

Financial staff 451

Administrative staff 5729

Management staff 10680

Total 232585

Education

Degree of education Number of employees (person)

Undergraduate 17260

College 23522

Secondary specialized school senior middle school and below 191803

Total 232585

83Luxshare Precision Industry Co. Ltd. Annual Report 2023

2. Remuneration policies

We have established the administrative measures for the salaries performance-based pay year-end bonus and

other remuneration of employees of the Group provided employees with competitive and guaranteed remuneration

in a scientific an reasonable manner developed sound remuneration management policies paid contributions to the

social insurance packages and housing provident fund for and salaries to the employees on time in strict accordance

with the applicable laws and regulations and resolutely rejected any bonded labor. In order to help employees better

understand the match between their job responsibilities and capabilities we have developed a multi-dimensional

performance appraisal system including self-assessment and supervisor’s assessment in order to objectively and

comprehensively reflect employees’ annual performance. We conduct annual employee performance

communication activities to ensure that each employee receives sufficient support and resources for his/her career

development in Luxshare-ICT and to enhance and optimize the work experience of each employee. The

remuneration packages provided by us to employees consist of year-end bonuses project bonuses share incentives

for key officers and bonuses for outstanding employees among others. During the reporting period we further

optimized performance appraisal fully appraised the performance of teams and individuals and effectively

improved the execution ability and awareness of responsibility of employees which will help us retain and attract

outstanding talents and human resources required for our development.

3. Training programs

We attach great importance to the career development plans of employees concentrate our efforts on the training

of personnel and have established a sound personnel training system to attract and motivate more excellent talents

and promote common growth of employees and the Group. We have built an integrated online and offline learning

platform providing multi-dimensional specialty training for different types of employees and new projects. The

platform provides all employees with hierarchical targeted training of different categories that target different groups

of people and satisfy different needs. For example with respect to senior middle and grassroots managers and key

reserve talents with great potentialities we conduct the “Star Cultivation Series” training in order to build an

efficient and dynamic team; and with respect to the personnel in manufacturing R&D technology marketing supply

chain and other critical fields we conduct the “Juneng Series” training in order to continuously improve the

professional capabilities of employees on different posts. In addition we carry out school-enterprise cooperation

projects and encourage the employees to obtain certification of professional qualifications from the Company and

society in order to enhance our production level and social recognition of us as a whole. We have also built the

“Jushi Series” “Luxshare Classroom” “Senior Management Forum” and other learning and communication

platforms in order to provide excellent Luxshare employees with stages to demonstrate themselves create a sound

learning environment and promote the integration and communications among all employees. In addition with a

view to promoting the implementation of important strategies and changes we have conducted the “Jubian Series”

84Luxshare Precision Industry Co. Ltd. Annual Report 2023

training according to business needs. In order to regulate the employee training we have established and periodically

updated the Administrative Measures for Education and training the Operating Procedures for Education and

training and Administrative Measures for Internal Lecturers which define the training system covering all stages

from induction orientation on-the-job transfer to promotion and each factory has established the Operating

Procedures for Education and training and relevant administrative measures by reference to the Group’s

management standards and annual training plans for the factory and its departments according to its annual

development plan to effectively enhance the core competencies of employees and the Company improve the

employees’ professional capabilities and promote the sustainable growth of the Company.

4. Outsourced workers

□Applicable □N/A

XI. Profit distribution and transfer of capital reserve to the share capital

Adoption implementation or adjustment of the profit distribution policy in particular cash dividend policy during the reporting period

□Applicable □N/A

Pursuant to the resolutions adopted by the 16th meeting of the 5th Board of Directors and the 2022 annual

general meeting of shareholders we proposed to distribute to all shareholders a cash dividend of RMB1.3 (inclusive

of tax) per 10 shares on the basis of the total share capital of 7130392419 shares totaling RMB926951014.47.In case of any change in our total share capital due to any share repurchase exercise of share incentives material

asset restructuring cancellation of repurchased share or otherwise prior to the record date for the relevant equity

distribution we would adjust the distribution payable per share accordingly on the principle that the total amount

distributable should remain the same.During the period from the disclosure of such profit distribution proposal to the implementation thereof our

total share capital increased by 1858932shares from 7130392419 shares at the time of disclosure of the proposal

to 7132251351 shares as a result of exercise of stock option incentive plan by the relevant grantees at their sole

discretion and conversion of the convertible bonds to shares. On the principle that the total amount distributable

should remain the same our profit distribution proposal for 2022 was adjusted as follows: to distribute to all

shareholders a cash dividend of RMB1.299661 (inclusive of tax) per 10 shares on the basis of the total share capital

of 7132251351 shares totaling RMB926950892.30 (inclusive of tax).Special explanation about the cash dividend policy

Whether to comply with the provisions of the AOA or

requirements of resolutions of the general meeting of Yes

shareholders of the Company

Whether the standard and ratio of cash dividend distribution are

Yes

clear and definite

Whether the relevant decision-making process and mechanism

85Luxshare Precision Industry Co. Ltd. Annual Report 2023

are sound Yes

Whether the independent directors have performed their duties

Yes

and exercised their functions

If the company has not conducted cash dividends it should

disclose the specific reasons for this decision and outline the N/A

measures it plans to take next to enhance investor returns.Whether the minority shareholders have sufficient opportunities

to express their opinions and requests and their legitimate rights Yes

and interests are fully protected

Whether the conditions and procedures in respect of any

adjustment or amendment of the cash dividend policy comply Yes

with the applicable regulations and are transparent

Whether the Company has made a profit in the reporting period and the parent has profits available for distribution to the shareholders

but the Company does not propose to distribute cash dividends

□Applicable □N/A

Particulars of profit distribution and transfer of capital reserve to the share capital for the reporting period:

□Applicable □N/A

Number of bonus shares per 10 shares (share) 0

Amount of cash dividends per 10 shares (RMB) (inclusive of

3

tax)

Share capital based on which the distribution proposal was made

7178011313

(share)

Amount of cash dividends (RMB) (inclusive of tax) 2153403393.90

Amount of cash dividends distributed in other ways (such as

0.00

share repurchase) (RMB)

Total amount of cash dividends (including other ways) (RMB) 2153403393.90

Distributable profit (RMB) 8981176754.23

Proportion of total cash dividends (including other ways) to the

100%

distributable profit

Particulars of cash dividends distributed for the reporting period

Others

Particulars of the proposal of profit distribution or for transfer of capital reserve to share capital

Our 2023 Profit Distribution Proposal is as follows: to distribute to all shareholders a cash dividend of RMB3 (inclusive of tax) per

10 shares on the basis of the total share capital of 7178011313 shares totaling RMB2153403393.90 (inclusive of tax) and to

carry forward the retained profits for distribution in subsequent years.In case of any change in our total share capital due to any share repurchase exercise of share incentives material asset restructuring

cancellation of repurchased share or otherwise from the disclosure date of this announcement to the record date for the relevant

equity distribution we would adjust the distribution payable per share accordingly on the principle that the total amount distributable

should remain the same.

86Luxshare Precision Industry Co. Ltd. Annual Report 2023

XII. Implementation of share incentive plans employee stock ownership plans and other

employee incentives granted by the Company

□Applicable □N/A

1. Share incentives

(1) 2018 stock option incentive plan

On December 5 2022 we held the 14th meeting of the fifth Board of Directors and the 14th meeting of the

fifth Board of Supervisors deliberating and approving the Proposal on Achievement of Vesting Conditions for the

Third Vesting Period under 2018 Stock Option Incentive Plan. The grantees meeting these vesting conditions may

exercise options in the third vesting period at their sole discretion and the actual exercisable period is from

December 13 2022 to September 22 2023. For details please refer to the Suggestive Announcement (Revised) on

Exercise at Their Sole Discretion in the Third Vesting Period under 2018 Stock Option Incentive Plan

(Announcement No. 2022-110). During the reporting period the grantees exercised their options to purchase

1573156 shares in total within the second vesting period in initial grant under the 2019 Stock Option Incentive

Plan.On June 21 2023 due to the implementation of the equity distribution for the year 2022 the company adjusted

the exercise price of the stock options incentive plan issued in 2018. The exercise price for the unexercised stock

options was adjusted from RMB 10.06 per share to RMB 9.93 per share. For further details please refer to

Announcement No. 2023-045 titled Announcement on Adjusting the Exercise Prices of Stock Options Incentive

Plans Issued in 2018 2019 2021 and 2022 and Cancelling Part of the Stock Options under the 2019 Stock Options

Incentive Plan.On November 27 2023 the company held the 20th meetings of the Fifth Board of Directors and the Fifth Board

of Supervisors. The following resolutions were approved: "Proposal on Adjusting the Exercise Quantity and

Cancelling Part of the Stock Option Incentive Plan for 2018" and "Proposal on Achieving the Conditions for the

Fifth Exercise Period of the Stock Option Incentive Plan for 2018." Due to reasons such as the departure of incentive

recipients and failure to meet assessment criteria the company adjusted the exercise quantity of the stock option

incentive plan for 2018 cancelling 1314426 unexercised stock options out of 29883882 originally granted. The

number of incentive recipients was adjusted from 1607 to 1553. For those meeting the exercise conditions they

have the option to independently exercise their rights during the fifth exercise period with the actual exercise period

running from December 6 2023 to September 24 2024. For further details please refer to the announcements with

the reference numbers 2023-071 and 2023-077 respectively.

(2) 2019 stock option incentive plan

On July 6 2022 we held the 9th meeting of the fifth Board of Directors and the 9th meeting of the fifth Board

of Supervisors deliberating and approving the Proposal on Achievement of Vesting Conditions for the Second

87Luxshare Precision Industry Co. Ltd. Annual Report 2023

Vesting Period of the Initial Grant under 2019 Stock Option Incentive Plan. The grantees meeting these vesting

conditions may exercise options in the second vesting period at their sole discretion and the actual exercisable

period is from July 22 2022 to April 21 2023. For details please see the Suggestive Announcement on Exercise at

Their Sole Discretion in the Second Vesting Period in Initial Grant under 2019 Stock Option Incentive Plan

(Announcement No. 2022-060).

On February 21 2023 the company convened the 15th meetings of the Fifth Board of Directors and the Fifth

Board of Supervisors. The following resolutions were approved Proposal on Adjusting the Reserved Granting and

Exercising Quantity of Stock Option Incentive Plan for 2019 and Cancelling Part of the Stock Option Incentive Plan

and Proposal on Achieving the Conditions for the Third Exercise Period of the Stock Option Incentive Plan for 2019.Due to reasons such as the departure of incentive recipients and failure to meet assessment criteria the company

adjusted the exercising quantity of the reserved granting of the stock option incentive plan for 2019 cancelling

847851 unexercised stock options out of 11992940 originally granted. The number of incentive recipients was

adjusted from 239 to 223. For those meeting the exercise conditions they have the option to independently exercise

their rights during the third exercise period with the actual exercise period running from March 1 2023 to

November 24 2023. For further details please refer to the announcements with the reference numbers 2023-007

and 2023-017 respectively.On June 21 2023 the company held the 17th meetings of the Fifth Board of Directors and the Fifth Board of

Supervisors. The resolutions approved included the "Proposal on Achieving the Conditions for the Fourth Exercise

Period of the Stock Option Incentive Plan for 2019." For those meeting the exercise conditions they have the option

to independently exercise their rights during the fourth exercise period with the actual exercise period running from

July 4 2023 to April 21 2024. For further details please refer to the announcement with the reference number

2023-048.

(3) 2021 stock option incentive plan

On February 21 2023 the company convened the 15th meeting of the Fifth Board of Directors and the 15th

meeting of the Fifth Board of Supervisors. During the meeting the resolution regarding the achievement of the

exercise conditions for the first exercise period of the 2021 Stock Option Incentive Plan was approved. In

accordance with this resolution the incentive recipients who meet the exercise conditions are permitted to exercise

their options independently during the first exercise period with the actual exercise period spanning from March

13 2023 to December 1 2023. For further details please refer to the informational announcement titled Notice on

the Adoption of Independent Exercise Mode for the First Exercise Period of the 2021 Stock Option Incentive Plan

(Announcement Number 2023-020).

On June 21 2023 due to the implementation of the 2022 equity distribution the company adjusted the exercise

price of the 2021 stock option incentive plan accordingly. The exercise price of the unexercised stock options under

88Luxshare Precision Industry Co. Ltd. Annual Report 2023

the plan was revised from RMB 35.76 per share to RMB 35.63 per share. For further details please refer to the

announcement titled Notice of Adjustment of Exercise Prices for the Stock Option Incentive Plans of 2018 2019

2021 and 2022 and Partial Cancellation of Stock Options under the 2019 Stock Option Incentive Plan

(Announcement Number 2023-045).

On October 20 2023 the company convened the 19th meetings of the Fifth Board of Directors and the Fifth

Board of Supervisors. The meetings approved the Proposal on Achieving the Conditions for the First Exercise Period

Reservation of the 2021 Stock Option Incentive Plan. In accordance with this proposal the eligible incentive

recipients can voluntarily exercise their rights during the first exercise period which is effective from November 3

2023 to October 18 2024. For more details please refer to the Notice Regarding the Use of Voluntary Exercise

Mode for the First Exercise Period Reservation of the 2021 Stock Option Incentive Plan (Announcement Number

2023-067).

(4) 2022 stock option incentive plan

With the approval of the 13th meeting of the 5th Board of Directors the 13th meeting of the 5th Board of

Supervisors and the 3rd extraordinary general meeting of shareholders in 2022 we introduced the 2022 stock option

incentive plan.On December 5 2022 we held the 14th meeting of the fifth Board of Directors and the 14th meeting of the

fifth Board of Supervisors deliberating and approving the Proposal on Granting Stock Options to Grantees under

the 2022 Stock Option Incentive Plan of Luxshare Precision Industry Co. Ltd. whereby it was determined that the

grant date of stock options would be December 15 2022 and 172.021 million stock options would be granted to

3759 eligible grantees. For details please refer to the Announcement on Granting Stock Options to Grantees under

the 2022 Stock Option Incentive Plan (Announcement No. 2022-106).On January 19 2023 we completed the registration of grant under our 2022 Stock Option Incentive Plan and

granted 168.513 million registered stock options representing 2.3671% of our total share capital. There are 3505

grantees the abbreviation and code of stock options are JLC5 and 037325 respectively. For details please refer to

the Announcement on Completion of Registration of Grant under the 2022 Stock Option Incentive Plan

(Announcement No. 2023-004).

(5) Exercise of options during the reporting period

During the reporting period the grantees exercised their options at their sole discretion to purchase 45356811

shares in total under the relevant stock option incentive plans.Share incentives granted to directors and executives

□Applicable □N/A

Unit: shares

Openin No No. of No. of Exercise Closing Market Open No. No. of Grant Closi

g . of shares shares price of balance of price at ing of addition price of ng

Name Title

balance ad exercisabl exercised shares stock the end balan share al restricte balan

of stock diti e during during the exercised options of the ce of s restricte d shares ce of

89Luxshare Precision Industry Co. Ltd. Annual Report 2023

options on the reporting during the held reportin restri veste d shares (RMB restri

held al reporting period reporting g cted d granted per cted

sto period period period share durin during share) share

ck (RMB per (RMB s g the the s

opt share) per held repor reportin held

ion share) ting g

s perio period

gra d

nte

d

dur

ing

the

rep

orti

ng

per

iod

Director &

WANG Deputy 5069

016899616899613.4833799333.1400000

Tao General 89

Manager

Director &

WANG Deputy 8652

043263125263110.0643263033.1400000

Tao General 61

Manager

Director &

WANG Deputy

01800009.9333.1400000

Tao General

Manager

Director &

WANG Deputy 1000 100000

030.2233.1400000

Tao General 000 0

Manager

Director &

Deputy 5069

LI Wei 0 337993 168996 13.48 337993 33.14 0 0 0 0 0

General 89

Manager

Director &

Deputy 6759

LI Wei 0 675985 337993 10.06 337992 33.14 0 0 0 0 0

General 85

Manager

Director &

Deputy 1000 100000

LI Wei 0 30.22 33.14 0 0 0 0 0

General 000 0

Manager

Board

Secretary &

HUANG 4393

Deputy 0 439390 219695 10.06 219695 33.14 0 0 0 0 0

Dawei 90

General

Manager

Board

HUANG 5000

Secretary & 0 30.22 500000 33.14 0 0 0 0 0

Dawei 00

Deputy

90Luxshare Precision Industry Co. Ltd. Annual Report 2023

General

Manager

WU 2636

CFO 0 131817 10000 10.06 33.14 0 0 0 0 0

Tiansong 34

131817

WU

CFO 0 121817 9.93 33.14 0 0 0 0 0

Tiansong

WU 3205

CFO 0 135198 50198 13.48 33.14 0 0 0 0 0

Tiansong 93

220395

WU

CFO 0 50000 13.35 33.14 0 0 0 0 0

Tiansong

WU 4000

CFO 0 30.35 400000 33.14 0 0 0 0 0

Tiansong 00

6478232201156032491851

Total -- 0 -- -- 0 0 0 -- 0

841065

Remark (if any) N/A

Performance appraisal and incentives in respect of executives

All of our executives were appointed by the Board of Directors fairly and transparently in compliance with the

applicable laws and regulations. Our executives report to the Board of Directors and are responsible for achieving

the operating targets set by the Board of Directors. We have established effective incentive and constraint

mechanisms in order to stimulate the executives to perform their duties diligently and improve our level of

operation and management and operating results. The performance of our executives is directly linked to their

income and assessed by comparing the goals set by us with their actual accomplishment of tasks. The Remuneration

and Appraisal Committee of the Board of Directors is responsible for year-end assessment of the achievement of

goals working ability and performance of duties in respect of our directors supervisors and executives and

developing the remuneration and performance appraisal proposals and submitting the same to the Board of Directors

for approval. During the reporting period our remuneration and performance appraisal policies for the executives

have been implemented effectively.

2. Implementation of employee stock ownership plan

□Applicable □N/A

3. Other employee incentives

□Applicable □N/A

91Luxshare Precision Industry Co. Ltd. Annual Report 2023

XIII. Establishment and implementation of internal controls during the reporting period

1. Establishment and implementation of internal controls

We have established a relatively sound internal control system that has run effectively in strict accordance with

the Company Law the Securities Law the Basic Internal Control Standards for Enterprises the Application Guide

for Internal Controls of Enterprises and other applicable laws regulations and normative documents taking into

account the characteristics of our industry and our actual business situation. From the perspective of corporate

management technology R&D and business processes we have established effective internal controls and

improved our corporate governance level and efficiency of decision-making which guarantees the legal and

regulatory compliance of our operation and management security of our assets and the truthfulness and

completeness of our financial reports and other information and effectively promote the steady implementation of

our strategies.Our internal control system has a reasonable structure can satisfy the requirements of our management and

development and runs effectively. Our internal controls over financial reporting non-financial reporting and other

material matters are effective achieve the objectives and protect the interests of the Company and all shareholders.

2. Material weakness in internal control identified during the reporting period

□Yes □No

XIV. Management and control of subsidiaries during the reporting period

Problems

Progress of encountered Solutions Progress of Subsequent

Company Integration plan

integration during adopted solution solution

integration

-------

XV. Self-assessment report on internal controls or auditor’s report on internal controls

1. Self-assessment report on internal controls

Date of disclose of the self-assessment

April 25 2024

report on internal controls in its entirety

Disclosure reference of the self-

Internal Control Certification Report 2023 of Luxshare Precision Industry Co. Ltd.assessment report on internal controls in

published on www.cninfo.com.cn

its entirety

Ratio of total assets of the entities covered

by the assessment to total assets recorded

67.09%

in the consolidated financial statements of

the Company

Ratio of total operating revenue of the

80.27%

entities covered by the assessment to total

92Luxshare Precision Industry Co. Ltd. Annual Report 2023

operating revenue recorded in the

consolidated financial statements of the

Company

Criteria for determination of deficiencies

Category Financial reporting Non-financial reporting

1. The material weaknesses in internal control over 1. The material weaknesses in internal control

financial reporting include: (A) fraud on the part of over non-financial reporting include: (A) any

directors supervisors and executives; (B) failure to serious violation of the significant national

correct any material weakness in internal control within laws and regulations; (B) great outflow of

a reasonable time after the same was identified and management and technical personnel on key

reported to the management; (C) ineffective control posts; (C) absence of or ineffective control

environment; (D) any material misstatement in the system for important business relating to the

financial report for the current period that is identified production and operation of the Company; (D)

by external auditor but fails to be identified through ineffective internal control over information

internal control; (E) any serious violation of the laws and disclosure resulting in any public

regulations; (F) the Company running at a loss for condemnation of the Company by any

consecutive years due to any reason other than policy- regulatory authority; and (E) failure to correct

related loss which might threaten the Company’s ability any problem in particular any material

to continue as a going concern; and (G) ineffective weakness or significant deficiency identified

supervision by the management and related functional in any assessment of internal controls. 2. The

Qualitative criteria

departments over the internal control. 2. The significant significant deficiencies in internal control over

deficiencies in internal control over financial reporting non-financial reporting include: (A) defects in

include: (A) failure to select and apply accounting important business policies or system or

policies pursuant to the generally accepted accounting unsound internal control system; and (B)

principles; (B) failure to establish anti-fraud procedures failure to review any information disclosed

and controls; (C) absence of or ineffective control externally and untruthfulness of any

system for important business; (D) lack of internal information disclosed. 3. General deficiencies

controls in and disorderly management of subsidiaries; in internal control over financial reporting

and (E) great outflow of or frequent changes in senior include deficiencies in control other than

officers (especially those in charge of internal control material weakness and significant deficiency.financial and human resources departments) or great

outflow of personnel on the relevant posts. 3. General

deficiencies in internal control over financial reporting

include deficiencies in control other than material

weakness and significant deficiency.

1. Material weakness: (1) amount of misstated operating 1. Material weakness: resulting in a direct loss

revenue ≥ 0.5% of total operating revenue; (2) amount of more than RMB12 million and having a

of misstated profit ≥ 5% of total profit; (3) amount of material adverse effect on the Company. 2.misstated assets ≥ 0.5% of total assets; (4) amount of Significant deficiency: resulting in a direct

misstated owners’ equity ≥ 0.5% of total owners’ equity. loss of more than RMB3 million and not more

2. Significant deficiency: (1) 0.2% of total operating than RMB12 million and any penalty imposed

revenue ≤ amount of misstated operating revenue < 0.5% by any competent government authority of the

of total operating revenue; (2) 2% of total profit ≤ country but not having an adverse effect on

Quantitative criteria amount of misstated profit < 5% of total profit; (3) 0.2% the Company. 3. General deficiency: resulting

of total assets ≤ amount of misstated assets < 0.5% of in a direct loss of not more than RMB3

total assets; (4) 0.2% of total owners’ equity ≤ amount of million and any penalty imposed by any

misstated owners’ equity < 0.5% of total owners’ equity. competent government authority at the

3. General deficiency: (1) amount of misstated operating provincial level or below but not having an

revenue < 0.2% of total operating revenue; (2) amount adverse effect on the Company.of misstated profit < 2% of total profit; (3) amount of

misstated assets < 0.2% of total assets; (4) amount of

misstated owners’ equity < 0.2% of total owners’ equity.Number of material weaknesses in

0

financial reporting

Number of material weaknesses in non- 0

93Luxshare Precision Industry Co. Ltd. Annual Report 2023

financial reporting

Number of significant deficiencies in

0

financial reporting

Number of significant deficiencies in

0

non-financial reporting

2. Auditor’s report on internal controls

□Applicable □N/A

Opinion issued in the internal control audit report

Pursuant to the Basic Internal Control Standards for Enterprises promulgated by the Ministry of Finance and other relevant

provisions the Company has maintained effective internal controls in all material respects as of December 31 2023.Disclosure of the internal control audit report Disclosed

Date of disclose of the audit report on internal controls in its

April 25 2024

entirety

Disclosure reference of the audit report on internal controls in its Internal Control Audit Report 2023 of Luxshare Precision

entirety Industry Co. Ltd. published on www.cninfo.com.cn

Type of opinion issued in the internal control audit report Standard unqualified opinion

Whether there’s any material weakness in non-financial

No

reporting

Whether the accounting firm issued a modified internal control certification report

□Yes □No

Whether the internal control audit report issued by the accounting firm conforms to the opinion issued by the self-assessment report of

the Board of Directors

□Yes □No

XVI. Rectification of non-compliance identified in the special self-examination of corporate

governance of the listed company

Our self-examination showed that we operated in compliance with the applicable regulations and was governed

well during the reporting period and did not identify any material non-compliance in our corporate governance. We

will continue to improve our level of corporate governance and further promote our high-quality development.

94Luxshare Precision Industry Co. Ltd. Annual Report 2022

Section V Environment and Social Responsibilities

I. Major environmental issues

Whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection authority

□Yes □No

Policies and industry standards related to environmental protection

I. Luxcase Precision Technology (Yancheng) Co. Ltd.

1. Emission standards of air pollutants

The sulfuric acid mist nitric acid mist (measured in NOX) and unit product benchmark exhaust volume

generated by our anodic oxidation line comply with the standards provided in Tables 5 and 6 of Discharge Standard

of Electroplating Pollutants (GB21900-2008); Section 3.9 of the Technical Specification for Application and

Issuance of Pollutant Discharge Permit - Electronics Industry (HJ1031-2019) provides that this standard uses non-

methane hydrocarbons as a comprehensive control indicator for VOC emissions; after the release and

implementation of the Discharge Standard of Pollutants for Electronic Industry such Standard shall apply. In this

project the particulate matter generated from machining sulfuric acid mist from aluminum solution concentration

non-methane hydrocarbon from dispensing gluing and printing and nitric acid mist from cleaning process

(measured in NOX) comply with Level 2 provided in the Integrated Emission Standard of Air Pollutants

(DB32/4041-2021); the concentration limit for unorganized waste gas monitoring points comply with the standards

provided in Table 2 of the Integrated Emission Standard of Air Pollutants (DB32/4041-2021); the SO2 and NOX

generated by the combustion of natural gas boilers comply with the special emission limits for air pollutants

provided in the Table 3 of the Emission Standards of Boiler Air Pollutants (DB32-4385-2022).

2. Discharge standards of water pollutants

The comprehensive wastewater generated by the said company is discharged to Yancheng Tongqi Water Co.Ltd. and the takeover standard is implemented according to the management agreement. The heavy metal

wastewater reuse index in the anodizing surface treatment process complies with the Discharge Standard of

Electroplating Pollutants (GB21900-2008).

3. Emission standards of noise pollution

During the operation of its plant it complies with Table 3 of the Standards on Noise Emissions at the Boundaries

of Industrial Enterprises (GB12348-2008).

4. Discharge standards of solid wastes

The solid wastes of the said company mainly consist of general solid wastes and hazardous wastes. For storage

of general solid wastes it refers to the environmental protection requirements on anti-seepage anti-rain and anti-

dust of the General Industrial Solid Waste Storage and Landfill Pollution Control Standards (GB 18599-2020). For

95Luxshare Precision Industry Co. Ltd. Annual Report 2022

collection storage and transportation of hazardous wastes it complies with the requirements of the Technical

Specifications for the Collection Storage and Transportation of Hazardous Wastes (HJ2025-2012) the Pollution

Control Standards for the Storage of Hazardous Wastes (GB 18597-2001) and the Amendment (Announcement No.

36 of 2013 of the Ministry of Environmental Protection).

II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.

1. Emission standards of air pollutants

The oil mist generated by the CNC machines particulate matter generated from machining and non-methane

hydrocarbon from dispensing and coating processes comply with the corresponding standards provided in Table 3

of Integrated Emission Standard of Air Pollutants (DB31_933-2015); the odor generated in the wastewater

biochemical process complies with the corresponding standards in provided in Table 3 of Emission Standard of

Odor Pollutants (DB311025-2016); the concentration limits at unorganized exhaust monitoring points in the plant

comply with the corresponding standards provided in Appendix A of Control Standard for Unorganized Emissions

of Volatile Organic Compounds (GB37822-2019); the non-methane hydrocarbons and particulate matter

concentrations at unorganized exhaust monitoring points at the plant boundary comply with the special emission

limits for air pollutants provided in Table 3 of Integrated Emission Standard of Air Pollutants (DB31_933-2015);

the odor complies with the corresponding standards provided in Table 3 of Emission Standard of Odor Pollutants

(DB311025-2016).

2. Discharge standards of water pollutants

The production wastewater of the said company is discharged to Jinshan Sea Outfall Engineering Co. Ltd. and

the discharge of the sewage treatment plant complies with Level 3 provided in Table 2 of the Integrated Standard of

Wastewater Discharge (DB31-199-2018).

3. Emission standards of noise pollution

During the operation of its plant it complies with Table 3 of the Standards on Noise Emissions at the Boundaries

of Industrial Enterprises (GB12348-2008).

4. Discharge standards of solid wastes

The solid wastes of the said company mainly consist of general solid wastes and hazardous wastes. For storage

of general solid wastes it refers to the environmental protection requirements on anti-seepage anti-rain and anti-

dust of the General Industrial Solid Waste Storage and Landfill Pollution Control Standards (GB18599-2020). For

collection storage and transportation of hazardous wastes it complies with the requirements of the Technical

Specifications for the Collection Storage and Transportation of Hazardous Wastes (HJ2025-2012) the Pollution

Control Standards for the Storage of Hazardous Wastes (GB 18597-2001) and the Amendment (Announcement No.

36 of 2013 of the Ministry of Environmental Protection).

III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.

1. Emission standards of air pollutants

96Luxshare Precision Industry Co. Ltd. Annual Report 2022

The emission concentrations of nitrogen oxides and sulfuric acid mist produced by our anode line comply with

the emission limits of air pollutants for new enterprises provided in Table 5 of the Discharge Standard of

Electroplating Pollutants (GB21900-2008) and the benchmark exhaust of the project complies with Table 6. The

emission concentrations of non-methane hydrocarbons from injection molding process complies with the special

emission limits provided in Table 5 of the Emission Standard of Pollutants from Synthetic Resin Industry

(GB31572-2015) and the particulate matter non-methane hydrocarbons xylene benzene series chromium and its

compounds nickel and its compounds from other processes comply with the emission limits of atmospheric

pollutants from organized emissions provided in Table 1 of the Integrated Emission Standard of Air Pollutants

(DB32/4041-2021). The emission concentrations of particulate matter sulfuric acid mist nitrogen oxides non-

methane hydrocarbons xylene benzene series and its compounds chromium and its compounds and nickel and its

compounds from unorganized emissions comply with the concentration limits of air pollutant emission monitoring

at the boundaries of enterprises provided in Table 3 of the Integrated Emission Standard of Air Pollutants

(DB32/4041-2021). The concentrations of unorganized emission of ammonia hydrogen sulfide and odor comply

with Level 2 standards on new renovation and expansion provided in Table 1 of and the organized emission

concentrations thereof comply with Table 2 of the Emission Standard of Odorous Pollutants (GB14554-93). The

concentrations of unorganized emission of non-methane hydrocarbons in the plant comply with Table 2 of the

Integrated Emission Standard of Air Pollutants (DB32/4041-2021). Alkali mist and phosphoric acid mist refer to

the standards provided in Table 1 of Integrated Emission Standard of Air Pollutants (DB31/933-2015). In accordance

with the Notice of the Nantong Municipal Government Office on Issuing the 2020 Air Pollution Prevention and

Control Work Plan (Tong Zheng Ban Fa [2020] No. 34) the low-nitrogen transformation task of gas-fired boilers

has been fully completed with the emission concentrations of nitrogen oxides not exceeding 50 milligrams per

cubic meter. The concentrations of SO2 and particulate matter emitted from the exhaust gas of natural gas

combustion in gas-fired boilers comply with the atmospheric pollutant emission concentration limits provided in

Table 3 of the Emission Standard of Boiler Air Pollutants (GB13271-2014).

2. Discharge standards of water pollutants

After the nickel-containing wastewater and chromium-containing wastewater in this project are treated by the

wastewater pretreatment equipment in the plant the total chromium and total nickel in wastewater pretreatment

plant outlet comply with the standard limits provided in Table 3 of the Discharge Standard of Electroplating

Pollutants (GB21900-2008); Rugao Fugang Water Treatment Co. Ltd. as the sewage treatment plant in the park

complies with Level 3 provided in Table 4 of Integrated Standards of Wastewater Discharge (GB8979-1996) for

water quality management. The ammonia nitrogen total nitrogen and total phosphorus comply with the

management requirements of Rugao Fugang Water Treatment Co. Ltd. and the total aluminum complies with the

standards provided in Table 3 of the Discharge Standard of Electroplating Pollutants (GB21900-2008); the

benchmark drainage of unit products complies with the requirements in Table 2 of the Discharge Standard of

97Luxshare Precision Industry Co. Ltd. Annual Report 2022

Electroplating Pollutants. The tail water from the sewage treatment plant in the park is discharged into the central

river after reaching the Level 1A standards provided in the Pollutant Discharge Standards for Municipal Wastewater

Treatment Plants (GB18918-2002). The pollutants in the recycled water in the plant are managed in accordance

with standard values of “open circulating cooling water system makeup water and washing water” provided in Table

1 of the Water Quality for Urban Sewage Recycling and Industrial Use (GB/T19923-2005).

3. Emission standards for noise pollution

It complies with Class 3 provided in the Standards on Noise Emissions at the Boundaries of Industrial

Enterprises (GB12348-2008) during the operation of our plant and the Class 2 provided in the Noise Emissions at

the Boundaries of Industrial Enterprises (GB12348-2008) during the day and night in Dongwei Village.

4. Discharge standards of solid wastes

The solid wastes of the said company mainly consist of general solid wastes and hazardous wastes. The storage

of general solid wastes in the plant are strictly set up and managed in accordance with the requirements of the

General Industrial Solid Waste Storage and Landfill Pollution Control Standards (GB 18599-2020) and its

Amendment. The hazardous waste in the plant is strictly managed in accordance with the Pollution Control

Standards for the Storage of Hazardous Wastes (GB18597-2001) and its Amendment the Technical Specifications

for the Collection Storage and Transportation of Hazardous Wastes (HJ2025-2012) and other documents.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.

1. Emission standards of air pollutants

The sulfuric acid mist nitric acid mist (measured in NOX) and unit product benchmark exhaust volume

generated by our anodic oxidation line comply with the standards provided in Tables 5 and 6 of Discharge Standard

of Electroplating Pollutants (GB21900-2008); Particulate matter generated from machining and the non-methane

hydrocarbons from dispensing and baking comply with the Level 2 provided in the Integrated Emission Standard

of Air Pollutants (GB16297-1996); the particulate matter generated from sandblasting processes and non-methane

hydrocarbons from injection molding processes comply with the standard limits provided in Table 5 of the Emission

Standard of Pollutants from Synthetic Resin Industry (GB31572-2015); the non-methane hydrocarbons in

unorganized exhaust gas at the plant boundary complies with the Emission Standard of Pollutants from Synthetic

Resin Industry (GB 31572-2015) and the Control Standards on Unorganized Emissions of Volatile Organic

Compounds (GB37822-2019). Nitrogen oxides particulate matter and sulfuric acid mist comply with the Integrated

Emission Standard of Air Pollutants (GB16297-1996); and the odor concentrations comply with the Emission

Standard of Odorous Pollutants (GB 14554-93).

2. Discharge standards of water pollutants

The comprehensive wastewater of the said company is collected and managed by Jiashan County Dadi

Wastewater Treatment Engineering Co. Ltd. and the discharge of such sewage treatment plant comply with

Pollutants Discharge Standards for Electronic Industry (GB 39731-2020). The heavy metal wastewater reuse index

98Luxshare Precision Industry Co. Ltd. Annual Report 2022

in the anodizing surface treatment process complies with the Discharge Standard of Electroplating Pollutants

(DB33/2260-2020).

3. Emission standards of noise pollution

W comply with Class 3 provided in the Standards on Noise Emissions at the Boundaries of Industrial Enterprises

(GB12348-2008) at the east and south boundaries of the plant and the Class 4 provided in the Noise Emissions at

the Boundaries of Industrial Enterprises (GB12348-2008) at the west and north boundaries of the plant.

4. Discharge standards of solid wastes

The solid wastes of the said company mainly consist of general solid wastes and hazardous wastes. For storage

of general solid wastes it refers to the environmental protection requirements on anti-seepage anti-rain and anti-

dust of the General Industrial Solid Waste Storage and Landfill Pollution Control Standards (GB18599-2020). For

collection storage and transportation of hazardous wastes it complies with the requirements of the Technical

Specifications for the Collection Storage and Transportation of Hazardous Wastes (HJ2025-2012) the Pollution

Control Standards for the Storage of Hazardous Wastes (GB 18597-2023).Environmental protection administrative permits

I. Luxcase Precision Technology (Yancheng) Co. Ltd.Environmental Impact Assessment Report (Table):

1. Computer component production project (phase I);

2. Computer component production project (phase II);

3. 3C precision mechanical parts production expansion project.

44. Precision component manufacturing project in Zone A;

5. Precision component manufacturing projects in Zones F G and H;

6. Precision component manufacturing project in Zone I.

Approval and reply of environmental assessment:

1. Ting Huan Biao Fu [2017] No. 123;

2. Ting Huan Ping Shu [2019] No. 2;

3. Yan Huan Shen [2021] No. 02003;

4. Yan Huan Shen [2022] No. 02003;

5. Yan Huan Shen [2022] No. 02001;

6. Yan Huan Shen [2021] No. 02001.

Acceptance report:

1. Acceptance report of computer component production project (phase I);

2. Acceptance report of computer component production project (phase II);

3. Acceptance report of 3C precision mechanical parts production expansion project.

99Luxshare Precision Industry Co. Ltd. Annual Report 2022

4. Acceptance report for precision component manufacturing project in Zone A;

5. Acceptance report for precision component manufacturing project in Zone F;

6. Acceptance report for precision component manufacturing project in Zone G;

7. Acceptance report for precision component manufacturing project in Zone H;

8. Acceptance report for precision component manufacturing project in Zone I. Pollution Permit No.:

Pollution Permit No.: 91320900MA1R8A0N2B001V Valid period: From April 25 2023 to April 24 2028.II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.Environmental impact assessment table:

1. Precision electronic component adjustment project (Phase I);

2. Precision electronic component adjustment project (Phase II);

3. Precision electronic component project (Phase III);

4. Precision electronic component technical renovation project;

5. Environmental impact assessment report of Ri Ming watch project.

Approval and reply of environmental assessment:

1. Jin Huan Xu [2014] No. 479;

2. Jin Huan Xu [2015] No. 323;

3. Jin Huan Xu [2018] No. 170;

4. Jin Huan Xu [2019] No. 254;

5. Jin Huan Xu [2020] No. 27;

Acceptance report:

1. Completion acceptance report of precision electronic component adjustment project (phase I);

2. Completion acceptance report of precision electronic component adjustment project (phase II);

3. Completion acceptance report of precision electronic component project (phase III);

4. Completion acceptance report of precision electronic component technical renovation project;

5. Completion acceptance report of Ri Ming watch project.

Pollution Permit No.:

Pollution Permit No.:91310000572654085A001V Valid period: from January 30 2022 to January 29 2027

III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.Approval and reply of environmental assessment:

Smart terminal precision module project: Jiang Zheng Huan Shu Fu [2022] No. 2.Pollution discharge permit: October 24 2023 to October 23 2028.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.Environmental Impact Assessment Report (Table):

100Luxshare Precision Industry Co. Ltd. Annual Report 2022

1. Production project for new 75 million pieces of precision electronic components (Phase I);

2. Production project for new 75 million pieces of precision electronic components (Phase II);

3. 3C product display screen project for new 25 million pieces/set;

4. 3C product display screen project for expanded 47 million pieces/set;

5. Technical renovation project for the original scale (annual production of 25 million units/sets of 3C product

displays).Approval and reply of environmental assessment:

1. Shan Huan Han [2016] No. 91;

2. Shan Huan Han [2018] No. 91;

3. Deng Ji Biao Bei [2020] No. 088;

4. Deng Ji Biao Bei [2022] No. 007;

5. Jia Huan (Shan) Jian Bei [2024] No. 11.

Acceptance report:

1. Acceptance report of production project for new 75 million pieces of precision electronic components (phase

I);

2. Acceptance report of production project for the stage 1 of new 75 million pieces of precision electronic

components (phase II);

3. Acceptance report of production project for the stage 2 of new 75 million pieces of precision electronic

components (phase II);

4. Acceptance report of 3C product display screen project for new 25 million pieces/set;

5. 3C product display screen project for expanded 47 million pieces/set;

Pollution Permit No.:

Pollution Permit No.: 91330421336400470U001Z Valid period: From March 14 2023 to March 13 2028.V. Luxcase Precision Technology (Kunshan) Co. Ltd.Pollution Discharge Permit:

Pollution Discharge Permit Number (91330583MAC1YPEC08001X) is valid from July 7 2023 to July 6 2028.Industry standards and discharge of pollutants involved in production and business activities

Category Name of

Name of

of main main Pollutant

the Distributio Emission

pollutants pollutants Number of discharge Total

Company Discharge n of concentrat Total Excessive

and and discharge standards approved

or its method discharge ion/intensi emissions emissions

characteris characteris outlets implement emissions

subsidiarie outlets ty

tic tic ed

s

pollutants pollutants

Luxcase Air Nitrogen Treatme 11 Area B 19 The 6.27005 12.9750 /

101Luxshare Precision Industry Co. Ltd. Annual Report 2022

Precisio pollutant oxide nt C A G Mg/stan emission 8 tons 37 tons

n s standard F AND I dard standard

Technol s high- cubic s for

ogy altitude meter electropl

(Yanche emission ating

ng) Co. s pollutant

Ltd. s are

specified

in GB

21900-

2008

while the

emission

standard

s for

atmosph

eric

pollutant

s from

boilers

are

outlined

in

DB32-

4385-

2022.

Atmosp

heric

Pollutant

Compre

hensive

Emissio

n

Luxcase Standard

Treatme

Precisio (DB32/4

nt 2.05

n 041-

Air standard Area B Mg/stan

Technol Sulfur 2021) 0.29858

pollutant s high- 11 C A G dard / /

ogy dioxide and 3 tons

s altitude F AND I cubic

(Yanche Boiler

emission meter

ng) Co. Atmosp

s

Ltd. heric

Pollutant

Emissio

n

Standard

(DB32-

4385-

2022)

Atmosp

Luxcase

Treatme heric

Precisio

Total nt 0.67 Pollutant

n AREA

Air non- standard Mg/stan Compre

Technol B C A 28.3169

pollutant methane s high- 69 dard hensive / /

ogy G F H 1 tons

s hydrocar altitude cubic Emissio

(Yanche AND I

bons emission meter n

ng) Co.s Standard

Ltd.

(DB32/4

102Luxshare Precision Industry Co. Ltd. Annual Report 2022

041-

2021)

Atmosp

heric

Pollutant

Compre

hensive

Emissio

n

Luxcase Standard

Treatme

Precisio (DB32/4

nt 1.85

n Area B 041-

Air standard Mg/stan 18.1477

Technol Particula E C A 2021)

pollutant s high- 68 dard 5346 / /

ogy te matter G F H and

s altitude cubic tons

(Yanche and I Boiler

emission meter

ng) Co. Atmosp

s

Ltd. heric

Pollutant

Emissio

n

Standard

(DB32-

4385-

2022)

Atmosp

heric

Luxcase

Treatme Pollutant

Precisio

nt Compre

n Area B 0.60Mg/

Air standard hensive

Technol Sulfuric C A G standard 2.79799

pollutant s high- 38 Emissio / /

ogy acid fog F H and cubic tons

s altitude n

(Yanche I meter

emission Standard

ng) Co.

s (DB32/4

Ltd.

041-

2021)

Atmosp

heric

Luxcase

Treatme Pollutant

Precisio

nt 4.93 Compre

n Area B

Air standard Mg/stan hensive

Technol Nitric C A G 34.3280

pollutant s high- 34 dard Emissio / /

ogy acid fog F H and 35 tons

s altitude cubic n

(Yanche I

emission meter Standard

ng) Co.

s (DB32/4

Ltd.

041-

2021)

Luxcase Sewage

Precisio Compre

n Sewage hensive

Water Suspend Controll

Technol station 20.5 Emissio 64.1814

pollutant ed ed 1 / /

ogy main mg/l n 45 tons

s matter emission

(Yanche outlet Standard

ng) Co. GB8978

Ltd. -1996

Luxcase Water Ammoni Controll Sewage 2.44 11.6097 151.353

1//

Precisio pollutant a ed station mg/l 86 tons 5 tons

103Luxshare Precision Industry Co. Ltd. Annual Report 2022

n s nitrogen emission main

Technol outlet

ogy

(Yanche

ng) Co.Ltd.Luxcase Sewage

Precisio Compre

n Sewage hensive

Water Controll

Technol Petroleu station 0.47 Emissio 1.31637

pollutant ed 1 / /

ogy m main mg/l n 8 tons

s emission

(Yanche outlet Standard

ng) Co. GB8978

Ltd. -1996

Luxcase Sewage

Precisio Compre

n Sewage hensive

Water Anionic Controll

Technol station 0.02 Emissio 0.04973

pollutant surfactan ed 1 / /

ogy main mg/l n 8 tons

s t emission

(Yanche outlet Standard

ng) Co. GB8978

Ltd. -1996

Luxcase Sewage

Precisio Compre

n Sewage hensive

Water Controll

Technol station 1.02 Emissio 3.97405

pollutant Fluoride ed 1 / /

ogy main mg/l n 4 tons

s emission

(Yanche outlet Standard

ng) Co. GB8978

Ltd. -1996

Luxcase Sewage

Precisio Compre

n Sewage hensive

Water Controll

Technol station Emissio

pollutant PH value ed 1 7.55 / / /

ogy main n

s emission

(Yanche outlet Standard

ng) Co. GB8978

Ltd. -1996

Luxcase Sewage

Precisio Compre

n Sewage hensive

Water Chemica Controll

Technol station 25.67 Emissio 98.1984 1618.58

pollutant l oxygen ed 1 /

ogy main mg/l n 01 tons 4 tons

s demand emission

(Yanche outlet Standard

ng) Co. GB8978

Ltd. -1996

Luxcase

Precisio

n Sewage

Water Total Controll

Technol station 0.29 1.06482 39.7705

pollutant phospho ed 1 / /

ogy main mg/l 4 tons 50 tons

s rus emission

(Yanche outlet

ng) Co.Ltd.Luxcase Water Total Controll 1 Sewage 21.53 / 76.3771 290.202 /

104Luxshare Precision Industry Co. Ltd. Annual Report 2022

Precisio pollutant nitrogen ed station mg/l 22 tons 5 tons

n s emission main

Technol outlet

ogy

(Yanche

ng) Co.Ltd.Electropl

Luxcase

ating

Precisio

Heavy Pollutant

n Recycle

metal Not Emissio

Technol Total d and not

wastewa 4 discharg 0 n 0 / /

ogy nickel discharg

ter ed Standard

(Yanche ed

recycled GB

ng) Co.

21900-

Ltd.

2008

Electropl

Luxcase

ating

Precisio

Heavy Pollutant

n Recycle

metal Not Emissio

Technol Total d and not

wastewa 4 discharg 0 n 0 / /

ogy copper discharg

ter ed Standard

(Yanche ed

recycled GB

ng) Co.

21900-

Ltd.

2008

Electropl

Luxcase

ating

Precisio

Heavy Pollutant

n Recycle

metal Total Not Emissio

Technol d and not

wastewa chromiu 4 discharg 0 n 0 / /

ogy discharg

ter m ed Standard

(Yanche ed

recycled GB

ng) Co.

21900-

Ltd.

2008

Electropl

Luxcase

ating

Precisio

Heavy Pollutant

n Hexaval Recycle

metal Not Emissio

Technol ent d and not

wastewa 4 discharg 0 n 0 / /

ogy chromiu discharg

ter ed Standard

(Yanche m ed

recycled GB

ng) Co.

21900-

Ltd.

2008

Atmosp

heric

Ri Ming

Treatme Pollutant

Compute

nt Compre

r

Air standard hensive

Accessor Building

pollutant Oil mist s high- 63 0.2 Emissio 0.213 / /

y roof

s altitude n

(Shangh

emission Standard

ai) Co.

s (DB31_

Ltd.

933-

2015)

Ri Ming Air Treatme Atmosp

Particula 6 Building 2.7 0.845 / /

Compute pollutant nt heric

105Luxshare Precision Industry Co. Ltd. Annual Report 2022

r s te matter standard roof Pollutant

Accessor s high- Compre

y altitude hensive

(Shangh emission Emissio

ai) Co. s n

Ltd. Standard

(DB31_

933-

2015)

Atmosp

heric

Ri Ming

Treatme Pollutant

Compute

nt Compre

r

Air standard hensive

Accessor Building

pollutant VOC s high- 3 3.7 Emissio 0.037 / /

y roof

s altitude n

(Shangh

emission Standard

ai) Co.

s (DB31_

Ltd.

933-

2015)

Atmosp

heric

Ri Ming

Treatme Pollutant

Compute

nt Compre

r

Air standard hensive

Accessor Lampbla Building

pollutant s high- 1 0.6 Emissio 0.004 / /

y ck roof

s altitude n

(Shangh

emission Standard

ai) Co.

s (DB31_

Ltd.

933-

2015)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Controll Emissio

Accessor station

pollutant PH value ed 1 7.4 n / / /

y main

s emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Suspend Controll Emissio

Accessor station

pollutant ed ed 1 15 n 5.895 / /

y main

s matter emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Ri Ming Sewage

Compute Compre

Sewage

r Water Controll hensive

Petroleu station

Accessor pollutant ed 1 0.54 Emissio 0.124 / /

m main

y s emission n

outlet

(Shangh Standard

ai) Co. (DB31-

106Luxshare Precision Industry Co. Ltd. Annual Report 2022

Ltd. 199-

2018)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Controll Emissio

Accessor station

pollutant COD ed 1 49 n 18.69 33.842 /

y main

s emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Ammoni Controll Emissio

Accessor station

pollutant a ed 1 2.13 n 0.233 1.0527 /

y main

s nitrogen emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Anionic Controll Emissio

Accessor station

pollutant surfactan ed 1 0.07 n 0.009 / /

y main

s t emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Total Controll Emissio

Accessor station

pollutant phospho ed 1 0.42 n 0.14 / /

y main

s rus emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Sewage

Ri Ming

Compre

Compute

hensive

r Sewage

Water Controll Emissio

Accessor Total station

pollutant ed 1 3.1 n 1.358 5.25 /

y nitrogen main

s emission Standard

(Shangh outlet

(DB31-

ai) Co.

199-

Ltd.

2018)

Ri Ming Sewage

Compute Compre

r Sewage hensive

Water Controll

Accessor station Emissio

pollutant BOD5 ed 1 31.6 5.772 / /

y main n

s emission

(Shangh outlet Standard

ai) Co. (DB31-

Ltd. 199-

107Luxshare Precision Industry Co. Ltd. Annual Report 2022

2018)

Rida

Electropl

Intellige Treatme

ating

nt nt

Pollutant

Manufac Air standard

NOx Emissio

ture pollutant s high- 2 A2/A14 0 0 11.987 /

(anode) n

Technol s altitude

Standard

ogy emission

(GB219

(Rugao) s

00-2008)

Co. Ltd.Rida

Intellige Treatme

(Tong

nt nt

A2/A14/ Zheng

Manufac Air standard

NOx Waste Ban)

ture pollutant s high- 3 26 1.838 11.987 /

(Boiler) treatmen {2020

Technol s altitude

t station } No.ogy emission

34号

(Rugao) s

Co. Ltd.Boiler

Rida

Atmosp

Intellige Treatme

heric

nt nt

A2/A14 Pollutant

Manufac Air Particula standard

/Waste Emissio

ture pollutant te matter s high- 3 1.9 0.147 8.698 /

treatmen n

Technol s (boiler) altitude

t station Standard

ogy emission

(GB132

(Rugao) s

71-2014)

Co. Ltd.Table 3

Boiler

Rida

Atmosp

Intellige Treatme

heric

nt nt

A2/A14/ Pollutant

Manufac Air standard

SO2(Boi Waste Emissio

ture pollutant s high- 1 0 0 4.854 /

ler) treatmen n

Technol s altitude

t station Standard

ogy emission

(GB132

(Rugao) s

71-2014)

Co. Ltd.Table 3

A2/A3/

Atmosp

Rida A14/A1

heric

Intellige Treatme 5/A16/A

Pollutant

nt nt 17/Wast

Compre

Manufac Air standard e

Particula hensive

ture pollutant s high- 22 treatmen 2.1 4.78 8.698 /

te matter Emissio

Technol s altitude t station

n

ogy emission and

Standard

(Rugao) s hazardou

(GB315

Co. Ltd. s waste

72-2015)

bin

Rida Treatme A1/A2/ Atmosp

Total

Intellige nt A3/A14/ heric

Air non-

nt standard A16/A1 Pollutant

pollutant methane 18 1.11 5.58 8.948 /

Manufac s high- 7/Waste Compre

s hydrocar

ture altitude treatmen hensive

bons

Technol emission t station Emissio

108Luxshare Precision Industry Co. Ltd. Annual Report 2022

ogy s and n

(Rugao) hazardou Standard

Co. Ltd. s waste (GB315

bin 72-2015)

Rida

Intellige Treatme Odor

Waste

nt nt Pollutant

treatmen

Manufac Air standard Emissio

Ammoni t station/

ture pollutant s high- 2 0.27 n 0.25 0.388 /

a hazardou

Technol s altitude Standard

s waste

ogy emission (GB145

bin

(Rugao) s 54-93)

Co. Ltd.Rida

Atmosp

Intellige Treatme

heric

nt nt

Pollutant

Manufac Air standard Waste

Caustic Emissio

ture pollutant s high- 1 treatmen 0.6 0.067 0.099 /

fog n

Technol s altitude t station

Standard

ogy emission

(DB31/9

(Rugao) s

33-2015)

Co. Ltd.Rida

Electropl

Intellige Treatme A2/A14/

ating

nt nt Waste

Pollutant

Manufac Air standard treatmen

Sulfuric Emissio

ture pollutant s high- 4 t station/ 0.25 0.331 0.508 /

acid fog n

Technol s altitude hazardou

Standard

ogy emission s waste

(GB219

(Rugao) s bin

00-2008)

Co. Ltd.Rida

Air

Intellige Treatme

pollutant

nt nt

Nickel s

Manufac Air standard

and its Emissio

ture pollutant s high- 2 A2/A14 0.006 0.002 0.00463 /

compou n

Technol s altitude

nds Standard

ogy emission

(GB315

(Rugao) s

72-2015)

Co. Ltd.Atmosp

Rida

heric

Intellige Treatme

Pollutant

nt nt

Compre

Manufac Air standard

Benzene hensive

ture pollutant s high- 2 A1 0.068 0.003 0.034 /

series Emissio

Technol s altitude

n

ogy emission

Standard

(Rugao) s

(GB315

Co. Ltd.

72-2015)

Rida Treatme Atmosp

Intellige nt heric

Air Phospho

nt standard Pollutant

pollutant ric acid 2 A2/A14 0 0 / /

Manufac s high- Compre

s fog

ture altitude hensive

Technol emission Emissio

109Luxshare Precision Industry Co. Ltd. Annual Report 2022

ogy s n

(Rugao) Standard

Co. Ltd. (DB31/9

33-2015)

Electropl

ating

Pollutant

Emissio

n

Standard

(GB219

00-2008)

Table 3

Standard

Sewage

Compre

hensive

Emissio

n

Standard

GB8978

Rida -1996

Intellige Table 4

nt Level

Sewage

Manufac Water Controll Three

station

ture pollutant PH ed 1 7.1 Standard / / /

main

Technol s emission

outlet

ogy Require

(Rugao) ments

Co. Ltd. for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

Standard

GB2190

Table 3

Standard

Electropl

Rida

ating

Intellige

Pollutant

nt

Sewage Emissio

Manufac Water Suspend Controll

station n

ture pollutant ed ed 1 16 4.659 19.791 /

main Standard

Technol s matter emission

outlet (GB219

ogy

00-2008)

(Rugao)

Table 3

Co. Ltd.Standard

110Luxshare Precision Industry Co. Ltd. Annual Report 2022

Sewage

Compre

hensive

Emissio

n

Standard

GB8978

-1996

Table 4

Level

Three

Standard

Require

ments

for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

Standard

GB2190

Table 3

Standard

Electropl

ating

Pollutant

Emissio

n

Standard

(GB219

00-2008)

Rida

Table 3

Intellige

Standard

nt

Sewage Sewage

Manufac Water Chemica Controll

station Compre

ture pollutant l oxygen ed 1 47 7.598 98.956 /

main hensive

Technol s demand emission

outlet Emissio

ogy

n

(Rugao)

Standard

Co. Ltd.GB8978

-1996

Table 4

Level

Three

Standard

Require

111Luxshare Precision Industry Co. Ltd. Annual Report 2022

ments

for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

Standard

GB2190

Table 3

Standard

Electropl

ating

Pollutant

Emissio

n

Standard

(GB219

00-2008)

Table 3

Standard

Sewage

Compre

hensive

Emissio

n

Rida

Standard

Intellige

GB8978

nt

Sewage -1996

Manufac Water Ammoni Controll

station Table 4

ture pollutant a ed 1 0.503 0.790 9.896 /

main Level

Technol s nitrogen emission

outlet Three

ogy

Standard

(Rugao)

Co. Ltd.Require

ments

for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

112Luxshare Precision Industry Co. Ltd. Annual Report 2022

Standard

GB2190

Table 3

Standard

Electropl

ating

Pollutant

Emissio

n

Standard

(GB219

00-2008)

Table 3

Standard

Sewage

Compre

hensive

Emissio

n

Standard

GB8978

Rida -1996

Intellige Table 4

nt Level

Sewage

Manufac Water Total Controll Three

station

ture pollutant phospho ed 1 0.53 Standard 0.156 0.990 /

main

Technol s rus emission

outlet

ogy Require

(Rugao) ments

Co. Ltd. for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

Standard

GB2190

Table 3

Standard

Rida Electropl

Intellige ating

nt Pollutant

Sewage

Manufac Water Controll Emissio

Total station

ture pollutant ed 1 27.6 n 7.573 29.687 /

nitrogen main

Technol s emission Standard

outlet

ogy (GB219

(Rugao) 00-2008)

Co. Ltd. Table 3

113Luxshare Precision Industry Co. Ltd. Annual Report 2022

Standard

Sewage

Compre

hensive

Emissio

n

Standard

GB8978

-1996

Table 4

Level

Three

Standard

Require

ments

for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

Standard

GB2190

Table 3

Standard

Electropl

ating

Pollutant

Emissio

n

Standard

(GB219

Rida 00-2008)

Intellige Table 3

nt Standard

Biochem Sewage

Manufac Water Controll Sewage

ical station

ture pollutant ed 1 15 Compre 1.961 19.791 /

oxygen main

Technol s emission hensive

demand outlet

ogy Emissio

(Rugao) n

Co. Ltd. Standard

GB8978

-1996

Table 4

Level

Three

Standard

114Luxshare Precision Industry Co. Ltd. Annual Report 2022

Require

ments

for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

n

Standard

GB2190

Table 3

Standard

Electropl

ating

Pollutant

Emissio

n

Standard

(GB219

00-2008)

Table 3

Standard

Sewage

Compre

hensive

Emissio

Rida n

Intellige Standard

nt GB8978

Sewage

Manufac Water Total Controll -1996

station

ture pollutant aluminu ed 1 1.25 Table 4 0.161 0.297 /

main

Technol s m emission Level

outlet

ogy Three

(Rugao) Standard

Co. Ltd.Require

ments

for

Takeove

r by

Fugang

Water

Treatme

nt Co.Ltd.Electropl

ating

Pollutant

Emissio

115Luxshare Precision Industry Co. Ltd. Annual Report 2022

n

Standard

GB2190

Table 3

Standard

Atmosp

heric

Ri Shan Treatme Pollutant

Compute nt Compre

r Air standard hensive

Sulfuric Building

Accessor pollutant s high- 8 1.09 Emissio 2.1764 / /

acid fog roof

y s altitude n

(Jiashan) emission Standard

Co. Ltd. s (DB32/4

041-

2021)

Electropl

Ri Shan Treatme

ating

Compute nt

Pollutant

r Air standard

Building Emissio

Accessor pollutant NOx s high- 8 0.164 0.8186 0.903 /

roof n

y s altitude

Standard

(Jiashan) emission

(GB219

Co. Ltd. s

00-2008)

Atmosp

heric

Pollutant

Compre

hensive

Emissio

n

Ri Shan Treatme Standard

Compute nt (DB32/4

r Air standard 041-

Particula Building

Accessor pollutant s high- 9 12.8 2021) 5.00661 10.595 /

te matter roof

y s altitude Syntheti

(Jiashan) emission c Resin

Co. Ltd. s Industry

Pollutant

Emissio

n

Standard

(GB

31572-

2015)

Atmosp

heric

Ri Shan Treatme

Pollutant

Compute nt

Compre

r Air standard

Building hensive

Accessor pollutant VOCs s high- 21 2.54 3.28968 14.5972 /

roof Emissio

y s altitude

n

(Jiashan) emission

Standard

Co. Ltd. s

(DB32/4

041-

116Luxshare Precision Industry Co. Ltd. Annual Report 2022

2021)

Syntheti

c Resin

Industry

Pollutant

Emissio

n

Standard

(GB

31572-

2015)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Ammoni Controll Pollutant

station

Accessor pollutant a ed 1 0.506 Emissio 2.896 49.04 /

main

y s nitrogen emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Total Controll Pollutant

station

Accessor pollutant phospho ed 1 0.105 Emissio 0.89 / /

main

y s rus emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Controll Pollutant

Total station

Accessor pollutant ed 1 35.567 Emissio 34.421 / /

nitrogen main

y s emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Anionic Controll Pollutant

station

Accessor pollutant surfactan ed 1 0.4988 Emissio 0.18 / /

main

y s t emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Ri Shan Water Chemica Controll 1 Sewage 28 Electroni 49.717 112.172 /

117Luxshare Precision Industry Co. Ltd. Annual Report 2022

Compute pollutant l oxygen ed station c

r s demand emission main Industry

Accessor outlet Water

y Pollutant

(Jiashan) Emissio

Co. Ltd. n

Standard

(GB

39731-

2020)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Controll Pollutant

station

Accessor pollutant PH value ed 1 7.4 Emissio / / /

main

y s emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Suspend Controll Pollutant

station

Accessor pollutant ed ed 1 15.5 Emissio 18.953 / /

main

y s matter emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Electroni

c

Ri Shan Industry

Compute Water

Sewage

r Water Controll Pollutant

Petroleu station

Accessor pollutant ed 1 0.39 Emissio 0.775 / /

m main

y s emission n

outlet

(Jiashan) Standard

Co. Ltd. (GB

39731-

2020)

Electropl

Ri Shan ating

Compute Pollutant

Heavy Hexaval Sewage

r Controll Emissio

metal ent station

Accessor ed 1 0.011 n 0.0041 / /

wastewa chromiu main

y emission Standard

ter m outlet

(Jiashan) GB

Co. Ltd. 21900-

2008

Ri Shan Heavy Sewage Electropl

Controll

Compute metal Total station ating

ed 1 0.025 0.001 0.02 /

r wastewa nickel main Pollutant

emission

Accessor ter outlet Emissio

118Luxshare Precision Industry Co. Ltd. Annual Report 2022

y n

(Jiashan) Standard

Co. Ltd. GB

21900-

2008

Electropl

Ri Shan ating

Compute Pollutant

Heavy Sewage

r Total Controll Emissio

metal station

Accessor chromiu ed 1 0.037 n 0.005 0.026 /

wastewa main

y m emission Standard

ter outlet

(Jiashan) GB

Co. Ltd. 21900-

2008

Luxcase

Precisio Centraliz Factory Urban

n ed F8/9 - 1 Sewage

Technol Domesti disposal unit Treatme

Sewage 2 / 5688t/a 25753t/a /

ogy c sewage of Factory nt Plant

(Kunsha emission F10/11 - Pollutant

n) Co. s 1 unit Standard

Ltd.Tin paste

printing

cleaning

reflow

Luxcase solderin

Precisio g 1 unit in

Collect

n dispensi Factory

dispose DB/32/4

Technol Waste ng F9 and 4 0.2736t/ 0.30042t

and then 9 / 041- /

ogy gas curing units in a /a

discharg 2021

(Kunsha maintena Factory

e

n) Co. nce F10/11

Ltd. cleaning

laser

engravin

g

cutting

Luxcase

Dispensi

Precisio

ng Sound

n

machine insulatio

Technol GB1234

Nose laser n shock / / / / / /

ogy 8-2008

engravin absorpti

(Kunsha

g on

n) Co.machine

Ltd.Packagin

Luxcase g raw The

Precisio material collectio

n packagin n is

Technol Solid g entrusted GB1859

/ / / 51.5t/a / /

ogy waste cleaning to a 7-2023

(Kunsha sanitatio qualified

n) Co. n tin unit for

Ltd. paste disposal

printing

119Luxshare Precision Industry Co. Ltd. Annual Report 2022

dispensi

ng

cutting

testing

exhaust

gas

treatmen

t staff

domestic

waste

Treatment of pollutants

I. Luxcase Precision Technology (Yancheng) Co. Ltd.

1. Prevention measures for exhaust gas pollution:

Exhaust gas from CNC machining is treated by oil mist scrubber through oil mist absorption; exhaust gas from

glue coating dispensing and printing is treated through secondary activated carbon adsorption. According to routine

monitoring reports of existing projects the removal rate of CNC machining exhaust gas after treatment by oil mist

scrubber can reach over 85%.According to the secondary adsorption activated carbon manual with respect to the adsorption capacity of

activated carbon for various organic substances in the printing and dispensing exhaust gas the removal efficiency

of organic substances is 70% for primary activated carbon particle adsorption and 90% for secondary activated

carbon particle adsorption which can meet the relevant requirements of Level 2 of non-methane hydrocarbons in

the Integrated Emission Standard of Air Pollutants (DB32/4041-2021);

Dust generated from sandblasting drilling and laser engraving is treated by wet dust collector after collection.The emission concentration and emission rate of dust generated from sandblasting drilling and laser engraving can

meet the corresponding limits provided in the Integrated Emission Standard of Air Pollutants (DB32/4041-2021).According to the Industrial Source Coefficient Handbook for the Second National Pollution Source Census as the

mechanical industry coefficient handbook - pre-treatment - dry pre-treatment - shot blasting dust can be removed

by the single tube (multi-tube parallel) cyclone device with a removal efficiency of 60%. Then after wet dust

collector treatment the removal efficiency can reach over 90%. Based on the actual operation of the project the

removal efficiency of sandblasting dust after treatment by its own dust collector and then by wet dust collector can

reach over 90% and the removal efficiency of drilling and laser engraving dust is around 85%. Therefore the said

company’s dust after treatment by wet dust collector can be discharged in steady compliance with standards.Natural gas boilers use domestically advanced low-nitrogen combustion technology which is a feasible

technology for the Technical Specification for Application and Issuance of Pollutant Discharge Permits - Boilers.According to routine monitoring data of existing projects and low-nitrogen combustion retrofitting and

commissioning reports the SO2 NOx and particulate matter in boiler flue gas can meet the corresponding limits

120Luxshare Precision Industry Co. Ltd. Annual Report 2022

of the Emission Standard of Boiler Air Pollutants (DB32/4385-2022).

2. Prevention measures for wastewater pollution:The said company implements the principle of “separation of rainwater and sewage and separation of cleanwater and polluted water”. Different kinds of wastewater enter the corresponding sewage pool through different

pipes. The pipes are overhead and pasted with signs of flow direction. The completeness of the pipes is checked

regularly and any abnormality if found will be handled immediately. All pools and floors of the sewage station are

paved and hardened for anti seepage and anti corrosion. Domestic wastewater is treated using a two-stage septic

tank system. The two-stage septic tank is composed of two interconnected sealed septic tanks. Feces enter the first

tank through an inlet pipe and flow downstream to the second tank where suspended organic matter in domestic

wastewater is removed by sedimentation and anaerobic fermentation. This treatment facility is a primary transitional

domestic treatment structure. Comprehensive wastewater is degraded in the A/O biochemical system to remove

organic pollutants such as COD nitrogen and phosphorus. The system’s denitrification capacity is strengthened

through a two-stage biochemical system and the treated wastewater is discharged to the sewage treatment plant.According to existing testing reports the quality of the said company’s effluent meets the relevant standards for thesewage station. Heavy metal wastewater is treated and reused through a process of “sterilization + membranetreatment + evaporation and crystallization + ion exchange." The main process remains unchanged. The

concentrated water of low-concentration wastewater is subject to ultrafiltration sand filtration and reverse osmosis

while high-concentration wastewater is subject to sedimentation and pressure filtration before entering PFET

evaporation and then the purified water is reused in the anodizing process.

3. Measures for noise pollution prevention:

The outdoor equipment equipment near the plant boundary and cooling towers are environmentally friendly.In the layout plan of the plant the main workshop with concentrated noise is located in the center of the plant as

much as possible. Other noise sources are located as far away from the plant boundary as possible to reduce their

impact on the external environment. Soundproof windows (or double-layer soundproof windows) and soundproof

doors are installed on the side of the workshop adjacent to the plant boundary to reduce the impact of workshop

noise on the external environment by enhancing sound insulation and reducing the strength of the noise source.Vertical greening belts are planted within the plant area to effectively provide certain sound insulation and noise

reduction.

4. Prevention measures for hazardous waste pollution:

Hazardous waste warehouses domestic waste rooms and solid waste garbage rooms are set up in the plant to

comprehensively manage solid waste from various aspects such as generation collection storage transportation

and disposal. Effective measures are taken to prevent the loss of solid waste in the process of generation collection

storage and transportation and the “three defenses” are implemented. Effective disposal methods and technologiesare adopted and by focusing on the reuse of useful materials to “turn waste into treasure’ we recycle a part of the

121Luxshare Precision Industry Co. Ltd. Annual Report 2022

resources and reduce the disposal burden. For those waste materials that cannot be recycled yet we effectively

dispose of them in light of the principle of “harmlessness”.II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.

1. Prevention measures for exhaust gas pollution:

(1) A closed operation room is set up for the CNC machining process. All oil mist generated therefrom is treated

through a cyclone tower oil mist washing tower and discharged through a 17-meter-high exhaust duct. The oil mist

in the discharged exhaust gas meets the emission limits for air pollutants provided in the Integrated Emission

Standard of Air Pollutants (DB31/933-2015); according to routine monitoring reports of existing projects the

removal rate of CNC machining exhaust gas after treatment by oil mist scrubber can reach over 85%.

(2) A closed operation room is set up for the laser engraving process. All dust generated therefrom is treated

through a wet dust collector and then discharged through a 22-meter-high exhaust duct. The removal efficiency can

reach more than 75% and the particulate matter in the discharged waste gas meets the emission limits for air

pollutants provided in the Integrated Emission Standard of Air Pollutants (DB31/933-2015);

(3) All waste gas generated in the dispensing and coating process is collected and treated through an activated

carbon purification box and then discharged through a 17-meter-high exhaust duct. The removal efficiency can

reach more than 90% and the pollutants in the discharged waste gas meet the emission limits for air pollutants in

the Integrated Emission Standard of Air Pollutants (DB31/933-2015).

2. Prevention measures for wastewater pollution:The said company implements the principle of “separation of rainwater and sewage and separation of cleanwater and polluted water”. Different kinds of wastewater enter the corresponding sewage pool through different

pipes. The pipes are overhead and pasted with signs of flow direction. The completeness of the pipes is checked

regularly and any abnormality if found will be handled immediately. All pools and floors of the sewage station are

paved and hardened for anti seepage and anti corrosion. After comprehensive wastewater is treated through

emulsion breaking precipitation and biochemical treatment it is discharged through the same pipeline as the tail-

water from pure water preparation and domestic wastewater. Some tail-water from pure water preparation is reused

as domestic facility water and the intermediate water after treated in the sewage treatment station is reused in the

wet polishing process. The wastewater discharge outlet is equipped with online monitoring equipment and

connected to the Environmental Protection Bureau and Water Affairs Bureau. According to existing testing reports

the quality of the said company’s effluent meets the relevant standards for the sewage station.

3. Measures for noise pollution prevention:

The outdoor equipment equipment near the plant boundary and cooling towers are environmentally friendly.In the layout plan of the plant the main workshop with concentrated noise is located in the center of the plant as

much as possible. Other noise sources are located as far away from the plant boundary as possible to reduce their

impact on the external environment. Soundproof windows (or double-layer soundproof windows) and soundproof

122Luxshare Precision Industry Co. Ltd. Annual Report 2022

doors are installed on the side of the workshop adjacent to the plant boundary to reduce the impact of workshop

noise on the external environment by enhancing sound insulation and reducing the strength of the noise source.Vertical greening belts are planted within the plant area to effectively provide certain sound insulation and noise

reduction.

4. Prevention measures for hazardous waste pollution:

Hazardous waste warehouses domestic waste rooms and solid waste garbage rooms are set up within the plant

area to comprehensively manage solid waste from various aspects such as generation collection storage

transportation and disposal. Effective measures are taken to prevent the loss of solid waste in the process of

generation collection storage and transportation and the “three defenses” are implemented. Effective disposalmethods and technologies are adopted and by focusing on the reuse of useful materials to “turn waste into treasure’we recycle a part of the resources and reduce the disposal burden. For those waste materials that cannot be recycled

yet we effectively dispose of them in light of the principle of “harmlessness”.III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.

1. Prevention measures for exhaust gas pollution:

I For the cutting fluid evaporates organic gases (measured in non-methane hydrocarbons) due to high-

temperature cutting in the CNC machining process of this project the organic waste gas is collected by the overall

workshop negative pressure system after being treated by an oil mist separator that is equipped with the equipment

and treated through filtration and absorption by activated carbon and is then discharged in an organized manner

through an exhaust pipe. The removal rate of non-methane hydrocarbons is conservatively estimated to be 75%. For

the non-methane hydrocarbons generated in processes such as injection molding gluing and drying this projectadopts a treatment measure of “filtration + activated carbon adsorption." For organic waste gases (measured as non-methane hydrocarbons) generated in gluing and drying processes they are planned to be collected by a gas-

collecting hood and then treated by the “filtration + activated carbon adsorption” process before being discharged

in an organized manner. For organic waste gases (measured as particulate matter) generated in spraying and dryingprocesses they are planned to be collected by a gas-collecting hood and then treated by the “filtration + activatedcarbon adsorption” process before being discharged in an organized manner. Particulate matter is mainly generated

in the sandblasting process and a two-stage wet dust removal treatment measure is adopted. Through the wet dust

removal technology the dust particles are removed by being condensed into large particles through strong collision

with water mist or being captured by inertia and centrifugal force. By taking two-stage wet dust removal measure

in this project a removal efficiency of particulate matter is about 80%. Two-stage alkaline spraying is used for acid

and alkali waste gas in this project. According to the provided waste gas treatment design plan this system has a

removal efficiency of about 95% for sulfuric acid mist and phosphoric acid mist and an 85% removal efficiency

for nitrogen oxides and ensures that the waste gas meets the emission standards. The sewage station waste gas in

this project includes particulate matter ammonia hydrogen sulfide non-methane hydrocarbons produced in sewage

123Luxshare Precision Industry Co. Ltd. Annual Report 2022

treatment as well as sulfuric acid mist alkaline mist and non-methane hydrocarbons produced in the tank storagearea. After being collected the waste gas from the storage tank and sewage treatment is treated by “alkali washing+ water washing + defogging + microwave UV catalysis” before being discharged together with the drying dust

generated by the “bag filter” treatment. In accordance with the Notice of the Nantong Municipal Government Office

on Issuing the 2020 Air Pollution Prevention and Control Work Plan (Tong Zheng Ban Fa [2020] No. 34) the low-

nitrogen transformation task of gas-fired boilers has been fully completed with the emission concentrations of

nitrogen oxides not exceeding 50 milligrams per cubic meter. Based on the monitoring data of the boiler running at

about 80% load inside the plant the nitrogen oxide emissions can meet the requirements of the Document (Tong

Zheng Ban Fa) [2020] No. 34 with an emission concentration not exceeding 50 milligrams/cubic meter.

2. Prevention measures for wastewater pollution:

The wastewater generated by this project include process wastewater wastewater from waste gas treatment

wastewater from workshop and plant floor washing concentrated wastewater and backwash wastewater emissions

from gas-fired boilers wastewater from circulating cooling systems initial rainwater and domestic wastewater. The

system at the wastewater treatment station is mainly divided into five categories: chromium-containing wastewater

treatment system nickel-containing wastewater treatment system phosphorus-containing wastewater treatment

system organic wastewater treatment system and general wastewater treatment system.The condensate from chromium-containing wastewater after undergoing “reduced pressure evaporation”treatment is treated with the chromium-containing wastewater through “chemical precipitation + sand and charcoalfiltration + ultrafiltration + ion exchange + two-stage reverse osmosis (RO)” before being reused. The condensate

from nickel-containing wastewater after undergoing “reduced pressure evaporation” treatment is treated with thenickel-containing wastewater through “chemical precipitation + sand and charcoal filtration + ultrafiltration + ionexchange + two-stage RO” before being reused. The condensate from phosphorus-containing wastewater after

undergoing “two-stage coagulation and sedimentation + pressure filtration” treatment is treated with phosphorus-containing wastewater and wastewater from phosphorus-containing air pollution control through “two-stagereaction and precipitation” treatment before being discharged into the receiving pool. Wastewater containing oil and

compressor wastewater are pre-treated with “acidification breaking emulsion and oil-water separation” and thentogether with acidic wastewater and other wastewater from exhaust gas treatment undergo “acidification breakingemulsion flotation Fenton oxidation and coagulation and sedimentation” treatment. Then together with organic

wastewater/liquid they undergo “coagulation and sedimentation + catalytic oxidation” treatment and finally

together with alkaline wastewater/liquid that has been pre-treated with “coagulation and sedimentation” plant floorwashing wastewater and initial rainwater they undergo “hydrolysis acidification precipitation + anaerobic andaerobic treatment + two-stage sedimentation tank” treatment before being discharged into the receiving pool.General cleaning wastewater grinding wastewater and wastewater from pure water preparation are treated with

“coagulation and sedimentation + sand and charcoal filtration + ultrafiltration” before being reused.

124Luxshare Precision Industry Co. Ltd. Annual Report 2022

3. Measures for noise pollution prevention:

When purchasing equipment it selects equipment with small power and low noise as much as possible; use

vibration reduction mounts to weaken the vibration generated when the fan rotates; sets the sound source indoors

as much as possible to achieve sound insulation and noise reduction. It uses double-layer soundproof windows for

lighting windows in workshops with high noise equipment; arrange the main noise sources in the overall layout in

the middle of the workshop away from the plant boundary and add soundproof covers to equipment such as fans;

equip the high-power equipment with special vibration reduction and noise reduction equipment when purchasing

it; and strengthen the greening of the factory area and establish a green isolation belt. In addition it plants trees and

shrubs to create a green noise barrier around the factory boundary absorbing sound and reducing noise.

4. Prevention measures for hazardous waste pollution:

It sets up a hazardous waste warehouse within the plant; establish a hazardous waste ledger management system

to track and record the entire process of hazardous waste circulation within the said company combine it with

production records to establish a hazardous waste ledger; set up hazardous waste identification signs for the

containers and packaging of hazardous waste as well as for the facilities and places for collecting storing

transporting and disposing of hazardous waste; it is forbidden to collect store transport or dispose of hazardous

waste mixed with incompatible substances that have not been disposed of safely and it is forbidden to mix hazardous

waste into non-hazardous waste for storage and disposal.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.

1. Prevention measures for exhaust gas pollution:

It uses the electrostatic oil removal to absorb and treat oil mist of the exhaust gas from CNC machining and

uses secondary activated carbon adsorption to treat exhaust gas from dispensing and injection molding. According

to routine monitoring reports of existing projects the removal efficiency of electrostatic oil removal equipment for

CNC machining can reach more than 85%; sulfuric acid mist and nitric acid mist are treated with an alkali spray

tower after being collected and are only discharged after meeting the emission standards.According to the secondary adsorption activated carbon manual with respect to the adsorption capacity of

activated carbon for various organic substances in the dispensing exhaust gas the removal efficiency of organic

substances is 70% for primary activated carbon particle adsorption and 90% for secondary activated carbon particle

adsorption which can meet the relevant requirements of Level 2 of non-methane hydrocarbons in the Integrated

Emission Standard of Air Pollutants (GB16297-1996);

The exhaust gases from sandblasting and grinding machines are collected and treated using wet scrubbers. The

emission concentrations and rates of particulate matter from sandblasting and grinding dust meet the corresponding

standard limits specified in Table 2 of the Comprehensive Emission Standards for Air Pollutants (GB16297-1996)

and the relevant standards for particulate matter specified in Table 5 of the Emission Standards for Pollutants in

Synthetic Resin Industry (GB31572-2015).

125Luxshare Precision Industry Co. Ltd. Annual Report 2022

2. Prevention measures for wastewater pollution:The said company implements the principle of “separation of rainwater and sewage and separation of cleanwater and polluted water”. Different kinds of wastewater enter the corresponding sewage pool through different

pipes. The pipes are overhead and pasted with signs of flow direction. The completeness of the pipes is checked

regularly and any abnormality if found will be handled immediately. All pools and floors of the sewage station are

paved and hardened for anti seepage and anti corrosion. Domestic wastewater is treated using a two-stage septic

tank system. The two-stage septic tank is composed of two interconnected sealed septic tanks. Feces enter the first

tank through an inlet pipe and flow downstream to the second tank where suspended organic matter in domestic

wastewater is removed by sedimentation and anaerobic fermentation. This treatment facility is a primary transitional

domestic treatment structure. Comprehensive wastewater is degraded in the A/O biochemical system to remove

organic pollutants such as COD nitrogen and phosphorus. The system’s denitrification capacity is strengthened

through a two-stage biochemical system and the treated wastewater is discharged to the sewage treatment plant.According to existing testing reports the quality of the said company’s effluent meets the relevant standards for thesewage station. Heavy metal wastewater is treated and reused through a process of “sterilization + membranetreatment + evaporation and crystallization + ion exchange." The main process remains unchanged. The

concentrated water of low-concentration wastewater is subject to ultrafiltration sand filtration and reverse osmosis

while high-concentration wastewater is subject to sedimentation and pressure filtration before entering PFET

evaporation and then the purified water is reused in the anodizing process.

3. Measures for noise pollution prevention:

The outdoor equipment equipment near the plant boundary and cooling towers are environmentally friendly.In the layout plan of the plant the main workshop with concentrated noise is located in the center of the plant area

as much as possible. Other noise sources are located as far away from the plant boundary as possible to reduce their

impact on the external environment. Soundproof windows (or double-layer soundproof windows) and soundproof

doors are installed on the side of the workshop adjacent to the plant boundary to reduce the impact of workshop

noise on the external environment by enhancing sound insulation and reducing the strength of the noise source.Vertical greening belts are planted within the plant area to effectively provide certain sound insulation and noise

reduction.

4. Prevention measures for hazardous waste pollution:

Hazardous waste warehouses domestic waste rooms and solid waste garbage rooms are set up within the plant

area to comprehensively manage solid waste from various aspects such as generation collection storage

transportation and disposal. Effective measures are taken to prevent the loss of solid waste during the process of

generation collection storage and transportation and the “three defenses” are implemented. Effective disposalmethods and technologies are adopted and by focusing on the recycling of useful materials to “turn waste intotreasure’ it recycles a part of the resources and reduce the disposal burden. For those waste materials that cannot

126Luxshare Precision Industry Co. Ltd. Annual Report 2022

be recycled yet it effectively disposes of them in light of the principle of “harmlessness”.V. Luxcase Precision Technology (Kunshan) Co. Ltd.

1. Waste water pollution control measures: Discharge into the municipal sewage pipe network for treatment at

Kunsheng Precision Water Purification Co. Ltd. in Kunshan Development Zone.

2. Noise pollution control measures: Use low-noise equipment and adopt measures such as sound insulation

vibration reduction and greening of the factory area to achieve sound insulation and noise reduction.

3. Air pollution control measures: According to the secondary adsorption activated carbon manual the

adsorption capacity of activated carbon for various organic substances the removal efficiency of organic matter by

first-stage activated carbon particles is 70% and the adsorption efficiency of two-stage activated carbon particles is

90% both of which can meet the relevant requirements of the Secondary Standard for Non-Methane Total

Hydrocarbons in the Comprehensive Emission Standard for Air Pollutants (GB16297-1996).

4. Hazardous waste pollution control measures: Set up hazardous waste warehouses domestic waste rooms

and solid waste garbage rooms in the factory area comprehensively manage solid waste from generation collection

storage transportation and disposal take effective measures to prevent the loss of solid waste during the generation

collection storage and transportation process implement "three defenses" adopt effective disposal schemes and

technologies focus on recycling useful materials from waste "turning waste into treasure" recover some resources

while reducing the disposal burden and for those that cannot be recycled at present effective disposal should be

carried out following the principle of "harmlessness."

Environmental self-monitoring program

I. Luxcase Precision Technology (Yancheng) Co. Ltd.It updates and prepares the self-monitoring plan for next year at the end of each year according to the pollution

discharge permit and environmental impact assessment requirements tests the organized exhaust gas at the emission

outlet once every half a year generally the unorganized exhaust gas once every half a year wastewater discharge

outlets once every quarter and noise once every six months with the relevant test reports as data compliance support.II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.It updates and prepares the self-monitoring plan for next year at the end of each year according to the pollution

discharge permit and environmental impact assessment requirements tests the organized exhaust gas at the emission

outlet once every half a year generally the unorganized exhaust gas once every half a year wastewater discharge

outlets once every month and noise once every half quarter with the relevant test reports as data compliance support.III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.It updates and prepares the self-monitoring plan for next year at the end of each year according to the

environmental impact assessment requirements tests the organized exhaust gas at the emission outlet once every

quarter VOC waste gas once every half a year the unorganized exhaust gas once every half a year wastewater

discharge outlets once every month and noise once every quarter with the relevant test reports as data compliance

127Luxshare Precision Industry Co. Ltd. Annual Report 2022

support.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.It updates and prepares the self-monitoring plan for next year at the end of each year according to the pollution

discharge permit and environmental impact assessment requirements tests the organized exhaust gas at the emission

outlet once every half a year the unorganized exhaust gas once every half a year wastewater discharge outlets once

every quarter noise once every quarter and rain outlets once every six months with the relevant test reports as data

compliance support.V. Luxcase Precision Technology (Kunshan) Co. Ltd.Sewage

S/N Cate Monitori Monitorin Conventio Executive standard

gory ng content g position nal monitoring

frequency

1 Do COD Main Once/year Comprehensive Sewage Discharge

mestic SS NH3-N discharge Standard

sewage TP outlet of the GB8978-1996 Table 4 Tertiary

factory Standards

Water Quality Standard for Sewage

Discharged into Urban Sewers

GB-T31962-2015 Table Class 1B

Standard

Noise:

Cate Monitori Monitoring Conventional Executive standard

gory ng content position monitoring frequency

Noi Equivale 1 meter Once/quarter Emission Standard for Industrial

se nt continuous outside the Enterprise Noise at Boundary

A sound level boundary GB12348-2008 Class 3 standard

Waste gas:

Category Monitoring Monitoring Conventional Executive

128Luxshare Precision Industry Co. Ltd. Annual Report 2022

location factor monitoring frequency standard

Waste gas Exhaust funnel Non-methane Once/year Jiangsu

DA009 hydrocarbon tin Integrated

and its compounds Emission

Standard of Air

Pollutants

（ DB32/4041-

2021) Table 1

standards

Enterprise Non-methane Once/year Jiangsu

boundary hydrocarbon tin Integrated

and its compounds Emission

and particulate Standard of Air

matter Pollutants

（ DB32/4041-

2021) Table 3

standards

Within the Non-methane Once/year Jiangsu

factory hydrocarbon Integrated

Emission

Standard of Air

Pollutants

（ DB32/4041-

2021) Table 2

standards

Emergency plan for abrupt environmental pollution accidents

I. Luxcase Precision Technology (Yancheng) Co. Ltd.Luxcase Plant has prepared the Emergency Plan for Abrupt Environmental Pollution Accidents (3rd Edition) in

2022 and has completed the formalities for expert review and filing with the filing No.: 320902-2022-003-H.

II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.Ri Ming Plant has prepared the Emergency Plan for Abrupt Environmental Pollution Accidents (3rd Edition) in

2022 and has completed the formalities for expert review and filing with the filing No.: 02-310116-2022-060-L.

III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.

129Luxshare Precision Industry Co. Ltd. Annual Report 2022

Completed in June 2021 with the filing No.: 320682-2021-065-M.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.Ri Shan Plant has prepared the Emergency Plan for Abrupt Environmental Pollution Accidents (3rd Edition) in

2021 and has completed the formalities for expert review and filing with the filing No.: 320421-2021-105-M.

Investment in environment governance and protection and payment of environmental protection taxes

I. Luxcase Precision Technology (Yancheng) Co. Ltd.In 2023 approximately CNY 14.8 million was invested in the operation maintenance and upkeep of

environmental protection equipment. Additionally the total amount of environmental protection tax paid on a

quarterly basis averaging CNY 19.98 million per month was reported.II. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.In 2023 approximately CNY 8 million was invested in environmental protection and the environmental

protection tax paid amounted to CNY 16167.34.III. Ri Shan Computer Accessory (Jiashan) Co. Ltd.In 2023 approximately CNY 30 million was invested in environmental protection equipment and the total

amount of environmental protection tax paid for quarterly declarations averaged CNY 0.878 million per month.IV. Luxcase Precision Technology (Kunshan) Co. Ltd.In 2023 approximately CNY 1 million was invested in environmental management and protection for new

projects and about CNY 500000 was invested for expansion projects.Measures taken to reduce carbon emissions during the reporting period and their effects

□Applicable □N/A

I. Luxcase Precision Technology (Yancheng) Co. Ltd.Reduction in

Improvement Electricity

Program Carbon Emissions

project Saved (kWh)

(tCO2e)

Photovoltaic Power Constructing a photovoltaic station on the 6261091 3898.16

Generation rooftop to generate electricity

Variable Frequency Installing frequency converters to convert 5136667 3198.09

Conversion Retrofit for the operation of original fixed-frequency fans to

Air Conditioning Fans variable frequency

Boiler Pipeline Lowering the boiler pipeline pressure from 10683867 6651.78

Pressure Reduction and 0.75MPa to 0.65MPa

Improvement

II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.

130Luxshare Precision Industry Co. Ltd. Annual Report 2022

Improvement Investment Income Improvement

Program

project (RMB0’000) (0’000 kwh) project

Compressed air

Compressed air leakage

leakage 0 25.2 30

improvement

improvement

CNC machine Independent small

centralized pressure transformer of CNC replaced by 24 28.0 35.0

conversion centralized pressure conversion

Conventional adsorption

Replacement of

dryers replaced by zero-loss 0 54.4 68

air compressors

suction dryers

Replacement

Ordinary lamps replaced by

by energy saving 0 3.3 4.1

high-efficiency LED lamps

lamps

III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.Annual Annual

Improvement Investment

Program power savings cost savings

project (RMB0’000)

(kwh) (RMB)

Photovoltaic 1: Photovoltaic electricity Contract 13252500 10071900

Revenue generation discount revenue with a energy

15% discount compared to the market management

electricity price:

2: Revenue Method: Long-term

revenue

3: Photovoltaic Phase 1 starts

generating revenue in February of the

23rd year; Phase 2 starts generating

revenue in April; Phase 3 starts

generating revenue in June.Variable 1: The frequency of the cooling

Frequency water circulation pump for mechanical

0285120216691

Installation seals at the wastewater station is

Improves Water adjusted to run at 50Hz through

131Luxshare Precision Industry Co. Ltd. Annual Report 2022

Pump variable frequency control. The

circulation water volume far exceeds

the minimum water usage for on-site

mechanical seal cooling resulting in

surplus supply and wastage. By

adjusting the frequency converter the

operating frequency of the mechanical

seal cooling water circulation pump is

reduced to 35Hz meeting the minimum

demand standard for on-site

mechanical seal cooling and reducing

waste.

2: Revenue Method: Long-term

revenue (10 months can be saved over

23 years)

1: Principle: Based on the unique

geographical conditions of Rugao the

cold plate exchange system can be

enhanced to utilize outdoor low-

temperature air for cooling water

Import of

towers to provide refrigeration for dust-

Cold Plates for

free workshops thereby saving energy 13.3 565488 429771

Air Conditioning

consumption of air conditioning chiller

in Building A17

units.

2: Revenue Method: Long-term

revenue saving 3 months annually

(from late November to early February

the following year)

1: At the wastewater station the

Installation

cooling water tower fan for mechanical

of Temperature

seals is manually operated (unable to

Control for 0.0 48180 36617

automatically start and stop based on

Cooling Water

external temperature changes).Tower

Continuous operation for extended

132Luxshare Precision Industry Co. Ltd. Annual Report 2022

periods leads to energy wastage. After

evaluation it is feasible to install a

temperature control device. A

temperature-controlled automatic start-

stop controller will be added to the

control loop of the cooling water tower

fan for mechanical seals. It will be set

to start when the water temperature

exceeds 28°C and stop when it falls

below 24°C aiming to achieve energy

savings. It is estimated that energy

consumption can be reduced for 6

months per year.Building A2's anode exhaust tower

currently operates at 50Hz. By

Reduced

verifying that this adjustment doesn't

Frequency

affect production it's proposed to lower

Operation of 0.0 2308800 1754688

the frequency to 35Hz to reduce energy

Anode Exhaust

consumption costs. This sustainable

Tower

adjustment can yield benefits

throughout the year.Building A7's BGA warehouse is

currently maintained as a constant

temperature and humidity warehouse

(control standards: temperature ≤ 12°C

Energy & ≥ 25°C humidity ≤ 32% & ≥ 69%).Management for Based on testing it's proposed to adjust

Dust-free the warehouse temperature and 0.0 3783996 2875837

Warehouse in humidity control standards from

Building A7 constant to ordinary (room temperature

management) as it won't impact

product quality. According to the

analysis of the energy consumption

supplied by the constant temperature

133Luxshare Precision Industry Co. Ltd. Annual Report 2022

and humidity air conditioning system in

Building A7 it's estimated that energy

consumption costs for air conditioning

can be saved for 9 months annually

(considering three months of summer

when the warehouse staff require a

comfortable working environment so

the air conditioning will be

operational). This yields an annual

revenue for 9 months.

1: By conducting regular weekly

inspections of energy waste phenomena

in the perimeter and workshops of the

factory timely identification and

rectification of energy waste can be

achieved reducing the energy waste

rate and lowering energy consumption

Energy

costs.Waste

2: Based on the audit anomalies 0.0 422606 482153

Investigation and

from May to November of the 22nd

Reduction

year the average monthly energy

savings are calculated using the

"Leakage Volume Calculation and

Leakage Cost Calculation Tool."

3: Revenue Method: Energy

management and control for long-term

benefits.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.Improvement Investment Income Improvement

Program

project (RMB0’000) (0’000 kwh) project

Photovoltaic Utilization of the parking lot near

079519.3

Project Gate 1 and idle rooftops in the Rishan

134Luxshare Precision Industry Co. Ltd. Annual Report 2022

factory area for the construction of

solar photovoltaic power generation.The project is funded by the

manufacturer which also includes

the provision of photovoltaic carports

and charging piles.Optimization

Rational distribution of vacuum

of Compressed Air

systems according to production 36.4 179.35 219.3

and Vacuum

arrangements.Systems

Installation of throttle valves to

Improvement

control air volume in the gas pipeline

in Compressed Air 0.4 2.96 3.65

resulting in monthly energy savings

Supply

of 218 kWh per unit.Energy Implementation of intelligent Energy

Efficiency in frequency conversion control for Management 64.04 426.19

Chiller Units chiller unit systems. Contract

Actual operating energy

Replacement consumption current of vacuum

of Vacuum Pumps pumps for CNC numerically

1321.5413.44

with Permanent controlled lathes: the three-phase

Magnet Motors average current has decreased from

206A to 171A.

Conversion of

Screw Air

Compressors from Conversion of 4 fixed-frequency

6047.1664.15

Fixed Frequency air compressors to variable frequency

to Variable

Frequency

Connection of pipelines for

Rectification cooling water towers on the rooftops

of Cooling Water of F11 and F3 buildings saving the 120 44.57 60.4

Tower Pipelines number of water pump startups

enabling mutual support between

135Luxshare Precision Industry Co. Ltd. Annual Report 2022

multiple devices

Conversion of For the original automated

old piping in the assembly lines on floors F10 to 1F

cleanroom to new each of the 6 lines has 58 vacuum

Lipo piping generators per line. During the Lipo

35.19149.87203.87

(conversion from transformation all vacuum suction

compressed air to devices will be replaced with

direct vacuum centralized negative pressure

suction) machines to reduce energy waste.The original cooling lines for

fixtures used compressed air

Energy-saving

resulting in high air consumption and

transformation of

energy consumption. After

cooling fixtures Energy

improvement each cooling module

for IPI fixtures in Management 20.94 29.12

set will be equipped with 2 air-cooled

the cleanroom to Contract

cooling units and 1 blowing module

reduce

to rapidly cool down the fixtures

temperature

thereby reducing energy

consumption.Administrative penalties imposed due to environmental issues during the reporting period

Effects on the

Name of the Rectification

Reasons for listed company’s

Company or its Violations Penalty results measures of the

penalties production and

subsidiaries Company

operation

None None None None None None

Other environmental information to be disclosed

I. Luxcase Precision Technology (Yancheng) Co. Ltd.The said company takes the initiative to make PRTR information disclosure at the platform of the Institute of

Public and Environmental Affairs (IPE) to the public disclosing the emissions of wastewater and exhaust gas and

related implementation standards every year; and fills out and reports the annual environmental information in the

pollution resource management system “One Enterprise and One File” of Jiangsu Province (column of disclosure

of enterprise environmental information according to the law).II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.The said company takes the initiative to make PRTR information disclosure at the platform of the Institute of

136Luxshare Precision Industry Co. Ltd. Annual Report 2022

Public and Environmental Affairs (IPE) to disclose to the public the emissions of wastewater and exhaust gas and

related implementation standards every year; and fills out and reports the annual environmental information in the

system of disclosure of the enterprise environmental information according to the law (Shanghai) and make to the

public the wastewater exhaust gas noise and other pollution emission factors on the national pollution source

information disclosure platform every month.III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.The said company takes the initiative to make PRTR information disclosure at the platform of the Institute of

Public and Environmental Affairs (IPE) to the public disclosing the emissions of wastewater and exhaust gas and

related implementation standards every year.IV. Ri Shan Computer Accessory (Jiashan) Co. Ltd.The said company takes the initiative to make PRTR information disclosure at the platform of the Institute of

Public and Environmental Affairs (IPE) to the public disclosing the emissions of wastewater and exhaust gas and

related implementation standards every year; and fills out and reports the annual environmental information in the

system of the disclosure of enterprise environmental information according to the law (Zhejiang).Other environmental information

Luxshare-ICT attaches great importance to possible impact of climate changes on the Company and has

established a carbon neutral working group led by the Board of Directors coordinated by the sustainable

development center and participated in by all plants to respond to issues related to climate changes in a

comprehensive manner. Based on our actual business and with reference to the external standards it identifies the

applicable climate risks and opportunities rank them according to the increasing probability of occurrence and

degree of impact and then submit them to the Strategy Committee of the Board of Directors for deliberation and

approval. When necessary our risk management departments prepare or add the countermeasures for risks and

opportunities of higher importance and urgency. In addition it works out a claim change action plant and implement

a low-carbon energy transition plan and is committed to achieving carbon neutrality by 2025. During the reporting

period we actively used clean energy and reduced greenhouse gas emissions by 1037334.21 tons of carbon dioxide

equivalent through rooftop photovoltaic green procurement direct purchase of green power and green energy fund

investment or otherwise. Meanwhile we promoted 266 energy-saving renovation projects for five major energy-

using modules including production electricity gas supply system central air conditioning workshop fan and living

office thereby reducing greenhouse gas emissions by a total of 89691.80 tons of carbon dioxide equivalent.II. Description of social responsibilities

The Company’s 2023 Sustainable Development Report has been published at Cninfo (www.cninfo.com.cn) the

information disclosure website designated by the Company together with this report on the same day.

137Luxshare Precision Industry Co. Ltd. Annual Report 2022

III. Consolidation and expansion of poverty alleviation and rural revitalization

The Company actively participated in and contributed to the community development and building and

conducted colorful activities to care for special groups and give back to society and made contribution to a

harmonious society. The Company did not carry out the work on poverty alleviation and rural revitalization during

the reporting period or have subsequent relevant plans.

138Luxshare Precision Industry Co. Ltd. Annual Report 2022

Section VI Significant Matters

I. Fulfillment of commitments

1. Complete and incomplete commitments of the Company and its actual controller shareholders related

parties acquirers and other related parties for the commitments by the end of the reporting period.□Applicable □ N/A

Committe Commitment Commitment Commitment Fulfillment of

Commitments Commitment details

d by Type date period commitments

In order to seriously protect the legitimate rights

and interests of the Company and all of its

shareholders each of all directors and executives

of the Company hereby makes commitments as

follows:

1. I promise not to damage the Company’s

interest by transferring benefits to any other

entity or individual free of charge or under unfair

conditions or otherwise;

2. I promise to restrain the duty-related

consumption of directors and executives;

3. I promise not to use the Issuer’s assets to

engage in investment and consumption

HUANG

irrelevant to their performance of powers and

Dawei; LI

duties;

Wei; LIU

Zhonghua 4. I promise to link the remuneration rules

; SONG developed by the Board of Directors or the

Commitments

Yuhong; Remuneration Committee and the

relating to any

WANG implementation of the Issuer’s remedial

initial public Other February 21

Laichun; measures for diluted earnings; Long-term Ongoing

offering or commitments 2022

WANG 5. I promise to link the conditions for the

subsequent

Laisheng; exercise of the Issuer’s stock option incentives

fund raising

WANG to be issued and the implementation of the

Tao; WU Issuer’s remedial measures for diluted earnings;

Tiansong; and

ZHANG 6. I promise to strictly fulfill the aforesaid

Ying commitments to ensure that the Issuer’s remedial

measures for diluted earnings can be fulfilled

effectively. If I breach or refuse to fulfill any

commitments set forth above I will make

explanations and apologies and perform other

obligations required by the applicable

regulations and agree to accept any punishment

or regulatory action that may be imposed on or

taken against me by the CSRC the Shenzhen

Stock Exchange or any other competent

securities regulatory authority in accordance

with the applicable rules and regulations

established or promulgated by such regulatory

authorities and indemnify the Issuer or its

139Luxshare Precision Industry Co. Ltd. Annual Report 2022

shareholders for the losses (if any) arising

therefrom according to the law.

7. From the date of issuing this Letter of

Commitment until the completion of this non-

public offering of stocks by the Issuer if the

CSRC has issued other new provisions on

measures to compensate for diluted returns and

commitments and the aforesaid commitments

fail to meet such new regulatory provisions

issued by the CSRC I undertake to give

supplementary commitments in accordance with

the latest provisions of the CSRC.In order to seriously protect the legitimate rights

and interests of the Company and all of its

shareholders each of the controlling shareholder

and actual controllers of the Company hereby

makes commitments as follows:

1. We/I will not interfere with management and

operation of the Company beyond our/my

powers or infringe on the interest of the

Company.

2. We/I promise to strictly fulfill the aforesaid

commitments to ensure that the Issuer’s remedial

measures for diluted earnings can be fulfilled

effectively. If we/I breach or refuse to fulfill any

commitment set forth above I will make

explanations and apologies and perform other

Commitments Luxshare obligations required by the applicable

relating to any Limited; regulations and agree to accept any punishment

initial public WANG Other or regulatory action that may be imposed on or February 21

Long-term Ongoing

offering or Laichun; commitments taken against me by the CSRC the Shenzhen 2022

subsequent WANG Stock Exchange or any other competent

fund raising Laisheng securities regulatory authority in accordance

with the applicable rules and regulations

established or promulgated by such regulatory

authorities and indemnify the Issuer or its

shareholders for the losses (if any) arising

therefrom according to the law.

3. From the date of issuing this Letter of

Commitment until the completion of this non-

public offering of stocks by the Company if the

CSRC has issued other new provisions on

measures to compensate for diluted returns and

commitments and the aforesaid commitments

fail to meet such new regulatory provisions

issued by the CSRC we/I undertake to give

supplementary commitments in accordance with

the latest provisions of the CSRC.Commitments After the completion of the transactions

Commitments relating to contemplated by the announcement on external

relating to any horizontal investment and related-party transactions

initial public Luxshare competition disclosed by the Company on November 13 November 13

Long-term Ongoing

offering or Limited related-party 2020 we and our affiliates will not engage in any 2022

subsequent transactions business that is the same as or substantially in

fund raising and competition with the business of the Company

occupation of or any entity controlled by the Company in any

140Luxshare Precision Industry Co. Ltd. Annual Report 2022

funds manner.In accordance with the applicable regulations of

the CSRC in order to ensure the effective

implementation of the Company’s remedial

measures for diluted earnings each of the

directors and executives of the Company hereby

makes commitments as follows:

1. I will not transfer benefits to any other entity

or individual without compensation or on unfair

terms or otherwise damage the interest of the

Company.

2. I will exercise self-discipline in consumption

in performing my duties.HUANG 3. I will not use the assets of the Company to

Dawei; LI engage in any investment or consumption

Bin; LIN activity not in connection with my duties.Yifei; 4. I will within my powers procure the linkage

WANG between the remuneration system adopted by the

Laichun; Board of Directors or the Remuneration and

WANG

Commitments Appraisal Committee and the implementation of

Laisheng;

relating to any the Company’s remedial measures for diluted

WU earnings.initial public Other

Tiansong;

offering or commitments 5. I will within my powers procure the linkage

July 11 2019 Long-term Ongoing

XIONG

subsequent between the vesting conditions in respect of any

Tengfang;

fund raising share incentives granted by the Company and the

XU implementation of the Company’s remedial

Huaibin measures for diluted earnings.XUE

6. I promise to strictly fulfill the aforesaid

Haigao;

commitments to ensure that the Company’s

YE Yiling;

remedial measures for diluted earnings can be

ZHANG

fulfilled effectively. If I breach or refuse to fulfill

Ying

any commitment set forth above I will make

explanations and apologies and perform other

obligations required by the applicable

regulations and agree to accept any punishment

or regulatory action that may be imposed on or

taken against me by the CSRC the Shenzhen

Stock Exchange or any other competent

securities regulatory authority pursuant to the

applicable rules and regulations established or

promulgated by such regulatory authorities and

indemnify the Company or its shareholders for

the losses (if any) arising therefrom according to

the law.In order to seriously protect the legitimate rights

and interests of the Company and all of its

shareholders each of the controlling shareholder

Commitments Luxshare and actual controllers of the Company hereby

relating to any Limited; commitments as follows:

initial public WANG Other 1. We/I will not interfere with management and

July 11 2019 Long-term Ongoing

offering or Laichun; commitments operation of the Company beyond our/my

subsequent WANG powers or infringe on the interest of the

fund raising Laisheng Company.

2. We/I promise to effectively implement the

remedial measures for diluted earnings

formulated by the Company and fulfill our/my

141Luxshare Precision Industry Co. Ltd. Annual Report 2022

corresponding commitments on the remedial

measures for diluted earnings. If we/I breach or

fail to perform the commitments set forth above

we/I agree to accept any punishment or

regulatory action that may be imposed on or

taken against us/me by the CSRC the Shenzhen

Stock Exchange or any other competent

securities regulatory authority pursuant to the

applicable rules and regulations established or

promulgated by such regulatory authorities. If

we/I breach or fail to fulfill the commitments set

forth above resulting in losses to the Company

or the investors we/I are/am willing to

compensate for such losses according to the law.

3. From the date of this commitment till the date

of completion of this offering if the CSRC or

any other competent securities regulatory

authority adopts any new regulation regarding

the remedial measures for diluted earnings and

commitments in connection therewith and the

commitments set forth above do not satisfy the

requirements of such new regulation we/I will

make supplementary commitments pursuant to

the new regulation.Each of all directors and executives of the

Company hereby commitments as follows:

BAI (1) I will not transfer benefits to any other entity

Rujing; or individual without compensation or on unfair

CHEN terms or otherwise damage the interest of the

Chaofei; Company;

DONG (2) I will exercise self-discipline in consumption

Jianhai; LI in performing my duties;

Bin; LI (3) I will not use the assets of the Company to

Commitments Jing; LI engage in any investment or consumption

relating to any Xiongwei; activity not in connection with my duties;

initial public LIN Yifei; Other (4) I will procure the linkage between the March 11 Long-term Ongoing

offering or WANG Ji; commitments remuneration system adopted by the Board of 2016

subsequent WANG Directors or the Remuneration and Appraisal

fund raising Laichun; Committee and the implementation of the

WANG Company’s remedial measures for diluted

Laisheng; earnings;

XU

(5) If the Company establishes any share

Huaibin;

incentive plan in the future I will procure the

YE Yiling;

linkage between the vesting conditions in

ZHANG

respect of any share incentives granted by the

Lihua

Company and the implementation of the

Company’s remedial measures for diluted

earnings.Luxshare Limited as the controlling shareholder

Commitments Luxshare of the Company and WANG Laichun and

relating to any Limited; WANG Laisheng as the actual controllers of the

initial public WANG Other Company hereby make commitments as March 11

Long-term Ongoing

offering or Laichun; commitments follows: 2016

subsequent WANG 1. We Luxshare Limited as the controlling

fund raising Laisheng shareholder of the Company undertake not to

interfere with management and operation of the

142Luxshare Precision Industry Co. Ltd. Annual Report 2022

Company beyond our powers or infringe on the

interest of the Company.

2. I WANG Laichun as the actual controller

Chairman and General Manager of the

Company undertake to perform my duties in

accordance with the applicable laws and

regulations and the articles of association of the

Company and not to interfere with management

and operation of the Company beyond my

powers or infringe on the interest of the

Company.

3. I WANG Laisheng as the actual controller

and Vice Chairman of the Company undertake

to perform my duties in accordance with the

applicable laws and regulations and the articles

of association of the Company and not to

interfere with management and operation of the

Company beyond my powers or infringe on the

interest of the Company.The commitments relating to horizontal

competition related-party transactions and

occupation of funds are as follows: 1. We and

other entities controlled by us will reduce

related-party transactions with the Company to

the maximum extent practicable. 2. With respect

to any related-party transaction between us or

any other entity controlled by us and the

Company that is unavoidable or exists

reasonably we will carry out such transaction on

Commitments an arm’s length basis and customary commercial

relating to terms ensure the fairness of the transaction

Commitments

horizontal price perform the relevant decision-making

relating to any

competition process according to the law and guarantee that

initial public Luxshare October 15

related-party the legitimate rights and interests of the Long-term Ongoing

offering or Limited 2014

transactions Company and its shareholders will not be

subsequent

and damaged as a result of such transaction. 3. We or

fund raising

occupation of any other entity controlled by us will not request

funds the Company to offer any terms more favorable

than the terms that may be offered by any third

party in an arm’s length transaction or accept

any such terms offered by the Company. 4. For

so long as we remain the controlling shareholder

of Luxshare-ICT the commitments set forth

above shall be unconditional and irrevocable. If

we breach any commitment set forth above we

will jointly and severally fully timely and

adequately indemnify the losses of the Company

arising therefrom.The commitments relating to horizontal

Commitments

competition related-party transactions and

Commitments relating to

occupation of funds are as follows: 1. We and all

relating to any horizontal

other entities controlled by us at present or in the

initial public Luxshare competition October 15

future will not directly or indirectly engage in Long-term Ongoing

offering or Limited related-party 2014

any business or activity that competes might

subsequent transactions

compete or potentially competes with the main

fund raising and

business of the Company. 2. If any amendment

occupation of

of any applicable law or change in any

143Luxshare Precision Industry Co. Ltd. Annual Report 2022

funds applicable policy of the country results in any

actual or potential horizontal competition

between us or any other entity controlled by us

and the Company in any business the Company

shall have the preemptive right on the same

terms in respect of any entrusted management

(or management under contract or lease) or

acquisition in connection with such business. 3.For so long as we remain the controlling

shareholder of Luxshare-ICT the commitments

set forth above shall be unconditional and

irrevocable. If we breach any commitment set

forth above we will jointly and severally fully

timely and adequately indemnify the losses of

the Company arising therefrom.The commitments relating to horizontal

competition related-party transactions and

occupation of funds are as follows: we/I will not

take advantage of our/my position as the

controlling shareholder actual controller or

shareholder (as applicable) and our/my

affiliation with the Issuer to engage in any act to

the detriment of the interest of the Issuer or its

Luxshare

Commitments other shareholders. With respect to any related-

Limited;

relating to party transaction between us/me or any other

Commitments Shenzhen

horizontal entity controlled by us/me and the Issuer we/I

relating to any Zixin

competition will carry out such transaction on an arm’s length

initial public Investmen

related-party basis and customary commercial terms and will July 30 2010 Long-term Ongoing

offering or t Co. Ltd.;

transactions not request the Issuer to offer any terms more

subsequent WANG

and favorable than the terms that may be offered by

fund raising Laichun;

occupation of any third party in an arm’s length transaction or

WANG

funds accept any such terms offered by the Issuer. We/I

Laisheng

will strictly perform all related-party transaction

agreements (if any) entered into with the Issuer

in good faith and will not seek any interest or

benefit in contravention of the commitments set

forth above. If we/I breach any commitment set

forth above we/I agree to indemnify the Issuer

and its minority shareholders for all losses

arising therefrom.The commitments relating to horizontal

competition related-party transactions and

occupation of funds are as follows: We are not

engaged in any business that is the same as or

Commitments similar to the business of the Issuer or any entity

relating to controlled by the Issuer. For so long as we retain

Commitments Luxshare

horizontal control over the Issuer directly or indirectly we

relating to any Limited;

competition will strictly comply with the applicable laws

initial public Shenzhen

related-party regulations and codes of the country and will July 30 2010 Long-term Ongoing

offering or Zixin

transactions not directly or indirectly engage in any business

subsequent Investmen

and that is the same as similar to or substantially in

fund raising t Co. Ltd.occupation of competition with the business of the Issuer or

funds any entity controlled by the Issuer or have

substantial or relative control over any other

company organization or economic entity

engaging in any business that is the same as

similar to or substantially in competition with

144Luxshare Precision Industry Co. Ltd. Annual Report 2022

the business of the Issuer or any entity controlled

by the Issuer in or outside China. We will use our

control over the other entities controlled by us to

cause such entities to fulfill the commitments set

forth above in the same manner. If we breach any

commitment set forth above we agree to assume

the relevant legal liabilities including without

limitation to indemnify the Issuer and its

minority shareholders for all losses arising

therefrom.The commitments relating to horizontal

competition related-party transactions and

occupation of funds are as follows: I and other

entities controlled by me are not engaged in any

business that is the same as or similar to the

business of the Issuer or any entity controlled by

the Issuer. For so long as I retain control over the

Issuer directly or indirectly I will strictly comply

with the applicable laws regulations and codes

Commitments of the country and will not directly or indirectly

relating to engage in any business that is the same as

Commitments

horizontal similar to or substantially in competition with

relating to any WANG

competition the business of the Issuer or any entity controlled

initial public Laichun;

related-party by the Issuer or have substantial or relative July 30 2010 Long-term Ongoing

offering or WANG

transactions control over any other company organization or

subsequent Laisheng

and economic entity engaging in any business that is

fund raising

occupation of the same as similar to or substantially in

funds competition with the business of the Issuer or

any entity controlled by the Issuer in or outside

China. I will use my control over the other

entities controlled by me to cause such entities

to fulfill the commitments set forth above in the

same manner. If I breach any commitment set

forth above I agree to assume the relevant legal

liabilities including without limitation to

indemnify the Issuer and its minority

shareholders for all losses arising therefrom.

(1) For this shareholding increase plan and

subsequent share management I will not

conduct insider trading or short-term trading or

purchase or sell shares during the sensitive

Commitments period in strict accordance with the relevant

Other WANG on provisions of applicable laws regulations and October 26 Completed as

April 27 2024

commitments Laisheng Shareholding normative documents. (2) I will not reduce 2023 scheduled

Increase shares of the Company during the period of the

shareholding increase and within the statutory

period and will complete this shareholding

increase plan during the aforesaid period of

implementation.Whether the

commitments

have been Yes

fulfilled on

time

If any

N/A

commitment

145Luxshare Precision Industry Co. Ltd. Annual Report 2022

is overdue

explain

specific

reasons for the

incomplete

performance

and detailed

plan of next

steps

2. If the Company has made any profit forecast on its assets or project and the reporting period falls within

the period of such profit forecast explanation about whether the goal has been achieved and the relevant

reasons

□ Applicable □N/A

II. Occupation of funds of the listed company by the controlling shareholder and other related

parties for non-operating purposes

□ Applicable □N/A

During the reporting period no controlling shareholder or its related party used capital of the listed company for non-operating purposes.III. Illegal provision of guarantees for external parties

□ Applicable □N/A

We have not provided any external guarantee in contravention of the applicable regulations during the reporting period.IV. Explanation made by the Board of Directors about the modified audit opinion for the latest

period

□ Applicable □N/A

V. Explanation by the Board of Directors the Board of Supervisors and the independent

directors (if any) about the modified auditor’s report issued by the accounting firm for the

reporting period

□ Applicable □N/A

VI. Explanation about changes in accounting policies and accounting estimates or correction of

significant accounting errors when compared to the previous financial year

□Applicable □N/A

On December 31 2021 the Ministry of Finance issued the Notice on Issuing the Interpretation No. 15 of

Enterprise Accounting Standards (Cai Kuai [2021] No. 35) hereinafter referred to as Interpretation No. 15

interpreting contents related to Reporting on Centralized Fund Management etc.

146Luxshare Precision Industry Co. Ltd. Annual Report 2022

On December 13 2022 the Ministry of Finance issued the Notice on Issuing the Interpretation No. 16 of

Enterprise Accounting Standards (Cai Kuai [2022] No. 31) hereinafter referred to as Interpretation No. 16

interpreting contents related to Accounting Treatment of Deferred Income Tax not Exempted from Initial

Recognition for Assets and Liabilities arising from Single Transactions Accounting Treatment of Income Tax

Effects of Dividends Related to Financial Instruments Classified as Equity Instruments by the Issuer Accounting

Treatment of Changing Share Payments Settled in Cash by Enterprises to Share Payments Settled in Equity etc.In accordance with the above notifications the company will make corresponding changes to its current

accounting policies and implement them from the specified effective date.VII. Explanation about changes in consolidation scope when compared to the previous financial

year

□Applicable □N/A

Refer to “Section X Financial Report” - “IX. Changes in scope of consolidation”.VIII. Appointment and dismissal of accounting firms

Accounting firm currently engaged:

Name of domestic accounting firm BDO China Shu Lun Pan Certified Public Accountants LLP

Remuneration of domestic accounting firm (in RMB0’000) 246.33

Consecutive years in which the domestic accounting firm has

16

provided auditing service

Certified public accountant of the domestic accounting firm LI Jing and DANJie

Consecutive years in which the certified public accountant of the

5

domestic accounting firm has provided auditing service

Whether a new accounting firm was engaged during the reporting period

□ Yes □No

Engagement of accounting firm for auditing internal controls financial advisor or sponsor:

□ Applicable □N/A

During the reporting period the company engaged BDO China Shu Lun Pan Certified Public Accountants LLP (Special General

Partnership) as the auditor and internal control auditor for the year 2023. The total audit fees paid to RSM China Certified Public

Accountants LLP (Special General Partnership) during the reporting period amounted to RMB 2.4633 million.IX. Possibility of listing suspension and termination after disclosure of the annual report

□ Applicable □N/A

147Luxshare Precision Industry Co. Ltd. Annual Report 2022

X. Matters relating to bankruptcy and reorganization

□ Applicable □N/A

We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.XI. Material litigation and arbitration proceedings

□Applicable □ N/A

Amount Whether a Enforcement of Information

Date of

Background claimed provision is Status Result and effect judgment/ disclosure

disclosure

(RMB0’000) recognized award available at

The case has been

settled/ closed by

Other litigation mediation or

Already

during the reporting 7375.29 No Closed judgment and N/A

enforced

period (arbitration) does not have a

material effect on

us.The case is

Other litigation pending and will

during the reporting 5562.66 No Pending not have a Pending N/A

period (arbitration) material effect on

us.XII. Penalty and rectification

□ Applicable □N/A

We have not been subject to any punishment or required to make any rectification during the reporting period.XIII. Integrity of the Company its controlling shareholder and actual controller

□Applicable □N/A

There wasn’t any outstanding court judgment or overdue debt of a large amount involving us or our controlling shareholder or actual

controllers during the reporting period.XIV. Material related-party transactions

1. Related-party transactions relating to day-to-day operation

□Applicable □ N/A

Related Amo % of Approve Wheth Method Market Inform

Transac Date of

Counterpart Relations -party Pricing unt the d limit er or of price ation

Type tion disclos

y hip transact principle (in total of not settlem availab disclos

price ure

ions RM amount transacti excee ent le for ure

148Luxshare Precision Industry Co. Ltd. Annual Report 2022

B0 of the on d the the availab， same amount appro same le at

000) type of (in ved type of

transact RMB0 limit transact

ions ，000) ionsAnno

Purchasi Febru unce

Associat Purch Fair Bank Fair

Suzhou ng goods Market 187 ary ment

ed legal asing marke 0.01% 4500 No transf marke

Lisheng from pricing 0.07 22 No.:2

person goods t price er t price

affiliates 2023 023-

013

Anno

Purchasi Febru unce

Associat Purch Fair Bank Fair

BCS ng goods Market 365 ary ment

ed legal asing marke 0.02% 7000 No transf marke

Germany from pricing 9.58 22 No.:2

person goods t price er t price

affiliates 2023 023-

013

Anno

Purchasi Febru unce

Hong Associat Purch Fair 119 Bank Fair

ng goods Market 12000 ary ment

Kong ed legal asing marke 061. 0.67% No transf marke

from pricing 0 22 No.:2

Luxsan person goods t price 78 er t price

affiliates 2023 023-

013

Anno

Purchasi Febru unce

Luxsan Associat Purch Fair Bank Fair

ng goods Market 369 ary ment

Investmen ed legal asing marke 0.02% 13000 No transf marke

from pricing 9.9 22 No.:2

t person goods t price er t price

affiliates 2023 023-

013

Anno

Purchasi Febru unce

BCS Associat Purch Fair Bank Fair

ng goods Market ary ment

United ed legal asing marke 9.29 0.00% 10000 No transf marke

from pricing 22 No.:2

States person goods t price er t price

affiliates 2023 023-

013

Anno

Selling Febru unce

Associat Sellin Fair 396 Bank Fair

Suzhou goods Market ary ment

ed legal g marke 98.3 0.17% 85000 No transf marke

Lisheng from pricing 22 No.:2

person goods t price 8 er t price

affiliates 2023 023-

013

Sellin Anno

Selling g Febru unce

Hong Associat Fair Bank Fair

goods goods Market 855. 18000 ary ment

Kong ed legal marke 0.00% No transf marke

from /provi pricing 05 0 22 No.:2

Luxsan person t price er t price

affiliates ding 2023 023-

labor 013

Anno

Selling Febru unce

Hong Associat Sellin Fair Bank Fair

goods Market 474 ary ment

Kong ed legal g marke 0.02% 36000 No transf marke

from pricing 8.38 22 No.:2

Gaowei person goods t price er t price

affiliates 2023 023-

013

Luxsan Associat Selling Sellin Market Fair 230 0.10% 35000 No Bank Fair Febru Anno

149Luxshare Precision Industry Co. Ltd. Annual Report 2022

Equipmen ed legal goods g pricing marke 41.7 transf marke ary unce

t person from goods t price 7 er t price 22 ment

affiliates 2023 No.:2

023-

013

Anno

Selling Febru unce

Luxsan Associat Sellin Fair Bank Fair

goods Market 504. ary ment

Investmen ed legal g marke 0.00% 5500 No transf marke

from pricing 74 22 No.:2

t person goods t price er t price

affiliates 2023 023-

013

Anno

Selling Febru unce

BCS Associat Sellin Fair Bank Fair

goods Market 242 ary ment

United ed legal g marke 0.01% 4000 No transf marke

from pricing 2.68 22 No.:2

States person goods t price er t price

affiliates 2023 023-

013

199

50000

Total -- -- 571. -- -- -- -- -- --

0

62

Particulars of huge-amount sales returns N/A

When expecting the annual daily related party transactions the Company conducts the appraisal and calculation

If the total amount of daily related-party transactions of possible related party transactions according to the market situation but the actually accrued amount is

that are expected to occur during the reporting period determined based on market situation the two parties’ business development actual demands and specific

is estimated by type the actual transactions occurred implementation progress resulting in certain differences between actually accrued amount and expected amount.during the reporting period (if any) The foregoing belongs to the acts of normal business and will not have a significant impact on daily operation

and performance of the Company.Reason of any great difference between transaction

N/A

price and reference market price (if applicable)

2 Related-party transactions involving acquisition or sales of assets or equities

□ Applicable □N/A

We have not conducted any related-party transaction involving acquisition or sales of assets or equities during the reporting period.

3. Related-party transactions involving joint external investment

□ Applicable □N/A

The Company had no related-party transactions on joint investments during the reporting period.

4. Accounts receivable from and payable to related parties

□ Applicable □N/A

We did not have any accounts receivable from or payable to any related party during the reporting period.

5. Financial business with its related financial companies

□ Applicable □N/A

There are no deposits loans credits or other financial transactions between the Company its related financial companies and related

150Luxshare Precision Industry Co. Ltd. Annual Report 2022

parties.

6. Financial business between the financial companies controlled by the Company and related parties

□ Applicable □N/A

There are no deposits loans credits or other financial transactions between the financial companies controlled by the Company and

related parties.

7. Other significant related-party transactions

□ Applicable □N/A

We have not conducted any other material related-party transaction during the reporting period.XV. Significant contracts and performance thereof

1. Trusteeship contracting and leases

(1) Trusteeship

□ Applicable □N/A

No such case during the reporting period.

(2) Contracting

□ Applicable □N/A

No such case during the reporting period.

(3) Leases

□ Applicable □N/A

No such case during the reporting period.

2. Material guarantees

□Applicable □ N/A

In RMB0000

External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries)

Whether

Disclosur

Amount of or not

e date of Actual Counter Fully

Guarante guaranteed Actual date Type of Collateral Term of provided

quota guarantee guarantee executed

e party quota of occurrence guarantee (if any) guarantee for a

announce amount (if any) or not

approved related

ment

party

Guarantees provided by the Company for its subsidiaries

Guarante Disclosur Amount of Actual date Actual Type of Collateral Counter Term of Fully Whether

151Luxshare Precision Industry Co. Ltd. Annual Report 2022

e party e date of guaranteed of occurrence guarantee guarantee (if any) guarantee guarantee executed or not

quota quota amount (if any) or not provided

announce approved for a

ment related

party

LUXS Joint

April

HARE July 28 liability Five

20 70118.73 0 No Yes

PRECI 2021 guarant years

2022

SION y

Total amount of

guarantee approved to Total actual guarantee

be provided for balance for subsidiaries at

70118.73

subsidiaries as at the the end of the reporting

end of the reporting period (B4)

period (B3)

The situation of guarantees provided by subsidiary companies to other subsidiary companies.Whether

Disclosur

Amount of or not

e date of Actual Counter Fully

Guarante guaranteed Actual date Type of Collateral Term of provided

quota guarantee guarantee executed

e party quota of occurrence guarantee (if any) guarantee for a

announce amount (if any)

approved related

ment

party

TIME

Six

Interco

months

nnect

Joint and from the

Server June 21

168.37 168.37 several expiratio No Yes

Technol 2022

guarantee n date of

ogy

main

Co.debts

Ltd.Dachua

ng Six

Precisio months

n from

Joint

Intellig the

December liability

ent 58.9 58.9 maturit No Yes

19 2022 guarant

Manufa y date

y

cture of the

(Kunsh main

an) Co. debt

Ltd.Dachua

ng

Precisio

n

Joint

Intellig

April 11 liability 2025/4/

ent 11771.95 11771.95 No Yes

2023 guarant 10

Manufa

y

cture

(Kunsh

an) Co.Ltd.Linkz Joint Continu

September

Internat 9062.2 0 liability ing No Yes

42020

ional guarant guarant

152Luxshare Precision Industry Co. Ltd. Annual Report 2022

Limited y ee

and

TIME

Interco

nnect

Industri

al Co.Ltd.Linkz Joint Continu

Internat December liability ing

5890.43 0 No Yes

ional 14 2020 guarant guarant

Limited y ee

TIME

Interco Joint Continu

nnect June 27 liability ing

3171.77 0 No Yes

Industri 2017 guarant guarant

al Co. y ee

Ltd.Linkz

Internat

ional

Limited

TIME

Interco

nnect

Industri

al Co.Ltd.TIME

Interco Joint Continu

nnect September liability ing

15405.74 0 No Yes

Wiring 5 2022 guarant guarant

Technol y ee

ogy

Co.Ltd. and

TIME

Interco

nnect

Server

Technol

ogy

Co.Ltd.TIME

Interco Joint Continu

nnect June 25 liability ing

2743.67 0 No Yes

Industri 2021 guarant guarant

al Co. y ee

Ltd.Linkz

Joint Continu

Internat

March 21 liability ing

ional 10421.53 0 No Yes

2023 guarant guarant

Limited

y ee

TIME

153Luxshare Precision Industry Co. Ltd. Annual Report 2022

Interco

nnect

Industri

al Co.Ltd. and

TIME

Interco

nnect

Server

Technol

ogy

Co.Ltd.Linkz

Internat

ional

Limited

TIME

Interco

nnect

Industri Joint Continu

al Co. February liability ing

16765.07 0 No Yes

Ltd. and 27 2023 guarant guarant

TIME y ee

Interco

nnect

Server

Technol

ogy

Co.Ltd.Linkz

Internat

ional

Limited

Joint Continu

and

October 9 liability ing

TIME 7249.76 0 No Yes

2020 guarant guarant

Interco

y ee

nnect

Industri

al Co.Ltd.Linkz

Internat

ional

Limited

Joint Continu

and

September liability ing

TIME 815.6 0 No Yes

27 2021 guarant guarant

Interco

y ee

nnect

Industri

al Co.Ltd.Linkz Joint Continu

September

Internat 1274.89 0 liability ing No Yes

272021

ional guarant guarant

154Luxshare Precision Industry Co. Ltd. Annual Report 2022

Limited y ee

and

TIME

Interco

nnect

Industri

al Co.Ltd.TIME

Interco

nnect Joint Continu

Server October liability ing

7249.76 0 No Yes

Technol 18 2023 guarant guarant

ogy y ee

Co.Ltd.TIME

Interco

nnect Joint Continu

Server October liability ing

815.6 0 No Yes

Technol 18 2023 guarant guarant

ogy y ee

Co.Ltd.TIME

Interco

nnect Joint Continu

Server October liability ing

1274.89 0 No Yes

Technol 18 2023 guarant guarant

ogy y ee

Co.Ltd.TIME

Interco Joint Continu

nnect November liability ing

6343.54 2945.22 No Yes

Technol 15 2021 guarant guarant

ogy y ee

Limited

TIME

Interco

nnect Joint Continu

Technol April 27 liability ing

5000 168.54 No Yes

ogy 2020 guarant guarant

(Huizho y ee

u)

Limited

TIME

Interco

nnect Joint

Technol January 1 liability 2023/12

6000 1000 No Yes

ogy 2018 guarant /31

(Huizho y

u)

Limited

TIME 10800 January 24 0 Joint 2025/1/ No Yes

155Luxshare Precision Industry Co. Ltd. Annual Report 2022

Interco 2022 liability 23

nnect guarant

Technol y

ogy

(Huizho

u)

Limited

Expired

on the

TIME debt

Interco repaym

nnect Joint ent

Technol June 1 liability deadlin

10000 2920 No Yes

ogy 2022 guarant e there

(Huizho y is a

u) grace

Limited period

of three

years

Huaxun

Industri Joint

al July 1 liability 2024/6/

5000 2000 No Yes

(Suzho 2021 guarant 30

u) Co. y

Ltd.Expired

on the

debt

Huaxun repaym

Industri Joint ent

al January 12 liability deadlin

11000 6579.74 No Yes

(Suzho 2022 guarant e there

u) Co. y is a

Ltd. grace

period

of three

years

TIME

Interco

nnect Joint

Technol May 12 liability 2024/12

8000 1000 No Yes

ogy 2023 guarant /31

(Huizho y

u)

Limited

TIME

Interco

nnect Joint Continu

Technol April 17 liability ing

10000 0 No Yes

ogy 2023 guarant guarant

(Huizho y ee

u)

Limited

TIME June 16 Joint 2028/3/

6000 186.13 No Yes

Interco 2023 liability 9

156Luxshare Precision Industry Co. Ltd. Annual Report 2022

nnect guarant

Technol y

ogy

(Huizho

u)

Limited

TIME

Interco Joint Continu

nnect June 28 liability ing

13593.3 9062.2 No Yes

Industri 2023 guarant guarant

al Co. y ee

Ltd.Total guarantee quota Total actual amount of

approved for guarantees for subsidiaries

22020.28

subsidiaries within the within the reporting period

reporting period (C1) (C2)

Total guarantee quota

Total actual guarantee

approved for the

balance for subsidiaries at

subsidiaries at the end 185876.96 37861.04

the end of the reporting

of the reporting period

period (C4)

(C3)

Total amount of guarantee provided by the Company (the sum of the above three items)

Total amount of Total actual amount of

guarantee approved guarantees within the

22020.28

during the reporting reporting period (i.e.period (A1+B1+C1) A2+B2+C2)

Total amount of

Total actual guarantee

guarantee approved as

balance at the end of the

at the end of the 255995.69 37861.04

reporting period

reporting period

(A4+B4+C4)

(A3+B3+C3)

Ratio of total amount of guarantee actually provided

0.67%

(A4+B4+C4) to the net assets of the Company

Among which

Amount of guarantee for shareholders de facto controller

0

and their related parties (D)

Amount of debt guarantee provided for guaranteed party

whose asset-liability ratio is not less than 70% directly or 0

indirectly (E)

Amount of total guarantee over 50% of net assets (F) 0

Total amount guaranteed (D+E+F) 0

Particulars of the guarantees provided using complex method:

N/A

3. Entrusted management of cash assets

(1) Entrusted wealth management

□Applicable □ N/A

Entrusted wealth management during the reporting period:

157Luxshare Precision Industry Co. Ltd. Annual Report 2022

In RMB0’000

Impairment

amount made for

Outstanding overdue

Type Source of funds Total amount Overdue amount

amount uncollected wealth

management

products

Bank wealth

management Self-owned funds 306041.78 162827.9 0 0

amount

Bank wealth

management Fund raising 0 0 0 0

amount

Total 306041.78 162827.9 0 0

Details of entrusted wealth management with individually significant amount or low safety poor liquidity high risk

□ Applicable □N/A

Entrusted wealth management products the principal of which may be unrecoverable or which may otherwise be impaired:

□ Applicable □N/A

(2) Entrusted loans

□Applicable □ N/A

Entrusted loans during the reporting period:

In RMB0’000

Total amount Source of funds Outstanding amount Overdue amount

4381506.13 Self-owned funds 4381506.13 0

Details of entrusted loans with individually significant amount or low safety poor liquidity high risk

□ Applicable □N/A

Entrusted loans the principal of which may be unrecoverable or which may otherwise be impaired:

□ Applicable □N/A

4. Other significant contracts

□ Applicable □N/A

We have not entered into any other material contract during the reporting period.XVI. Other significant matters

□ Applicable □N/A

The Company has no other significant matters to be explained during the reporting period.

158Luxshare Precision Industry Co. Ltd. Annual Report 2022

XVII. Significant events of subsidiaries of the Company

□ Applicable □N/A

159Luxshare Precision Industry Co. Ltd. Annual Report 2022

Section VII Changes in shares and shareholders

I. Changes in shares

1. Changes in shares

Unit: Share

Before the change ＋－ After the change

Shares

New Stock converted

Number Proportion shares divide Other Subtotal Number Proportion

from capital

issued nd

reserve

I. Restricted Shares 11178887 0.16% 1170244 1170244 12349131 0.17%

1. Shares held by the

State

2. Shares held by State-

owned corporations

3. Shares held by other

9274840.01%83146283146217589460.02%

domestic investors

Incl.: Shares

held by domestic non-

State-owned corporations

Shares held by

9274840.01%83146283146217589460.02%

domestic natural persons

4. Shares held by

102514030.14%338782338782105901850.15%

foreign investors

Incl.: Shares held by

foreign corporations

Shares held by

102514030.14%338782338782105901850.15%

foreign natural persons

II. Tradable shares 7104305121 99.84% 44027946 44027946 7148333067 99.83%

1. RMB-denominated

710430512199.84%4402794644027946714833306799.83%

ordinary shares

2. Foreign currency-

denominated shares listed

domestically

3. Foreign currency-

denominated shares listed

overseas

4. Others

100.00100.00

III. Total shares 7115484008 45198190 45198190 7160682198

%%

Reasons of changes in shares:

160Luxshare Precision Industry Co. Ltd. Annual Report 2022

□Applicable □ N/A

1. During the reporting period the Company issued 45356811 shares to the grantees under the stock option

incentive plan exercising their options at their sole discretion the details of which are shown in “Section IV” - “XI.Implementation of share incentive plans employee stock ownership plans and other employee incentives grantedby the Company”.

2. The Company publicly offered 30 million convertible corporate bonds (abbreviation: Luxshare Convertible

Bonds; bond code: 128136) on November 3 2020 and the period for which the convertible corporate bonds can be

converted into shares is from May 10 2021 to November 2 2026. During the reporting period the number of shares

converted into by bonds was 3010.Approval of changes in shares:

□Applicable □ N/A

1. Deliberation and approval by the 9th meeting of the fifth Board of Directors and the 9th meeting of the fifth

Board of Supervisors of the Company on July 6 2022.

2. Deliberation and approval by the 14th meeting of the fifth Board of Directors and the 14th meeting of the

fifth Board of Supervisors of the Company on December 5 2022.

3. Deliberation and approval by the 15th meeting of the fifth Board of Directors and the 15th meeting of the

fifth Board of Supervisors of the Company on February 21 2023.

4. Deliberation and approval by the 17th meeting of the fifth Board of Directors and the 17th meeting of the

fifth Board of Supervisors of the Company on July 21 2023.

5. Deliberation and approval by the 19th meeting of the fifth Board of Directors and the 19th meeting of the

fifth Board of Supervisors of the Company on October 20 2023.

6. Deliberation and approval by the 20th meeting of the fifth Board of Directors and the 20th meeting of the

fifth Board of Supervisors of the Company on November 27 2023

Transfer of share ownership:

□Applicable □ N/A

1. Period in which the stock options vested in the second vesting period of the initial grant under the 2019 stock

option incentive plan may be exercised by the relevant grantees: From July 22 2022 to April 21 2023.

2. Period in which the stock options vested in the third vesting period under the 2018 stock option incentive

plan may be exercised by the relevant grantees: From December 13 2022 to September 22 2023.

3. Period in which the stock options vested in the third vesting period in reserved grant under the 2019 stock

option incentive plan may be exercised by the relevant grantees: From March 1 2023 to November 24 2023.

4. Period in which the stock options vested in the third vesting period in initial grant under the 2021 stock option

incentive plan may be exercised by the relevant grantees: From March 13 2023 to December 1 2023.

5. Period in which the stock options vested in the fourth vesting period in initial grant under the 2021 stock

option incentive plan may be exercised by the relevant grantees: From July 4 2023 to April 21 2024.

161Luxshare Precision Industry Co. Ltd. Annual Report 2022

6. Period in which the stock options vested in the first vesting period in reserved grant under the 2021 stock

option incentive plan may be exercised by the relevant grantees: From November 3 2023 to October 18 2024.

7. Period in which the stock options vested in the fifth vesting period under the 2018 stock option incentive

plan may be exercised by the relevant grantees: From December 6 2023 to September 24 2024.Effect of changes in shares on the basic earnings per share diluted earnings per share net assets per share attributable to ordinary

shareholders and other financial indicators of the Company in the preceding year and the most recent reporting period:

□ Applicable □N/A

Other information disclosed as the Company deems necessary or required by the securities regulatory authorities:

□ Applicable □N/A

2. Changes in non-tradable shares

□Applicable □ N/A

II. Offering and listing of securities

1. Offering of securities (other than preferred shares) during the reporting period

□ Applicable □N/A

2. Changes in total number of shares shareholding structure and structure of assets and liabilities of the

Company

□Applicable □ N/A

1. Upon review and approval by the 9th meeting of the fifth Board of Directors the 14th meeting of the fifth Board of Directors

the 15th meeting of the fifth Board of Directors the 17th meeting of the fifth Board of Directors the 19th meeting of the fifth Board

of Directors and the 20th meeting of the fifth Board of Directors of the Company the vesting conditions for the third vesting period

in initial grant under 2019 stock option incentive plan the fourth vesting period under 2018 stock option incentive plan the third

vesting period in reserved grant under 2019 stock option incentive plan the first vesting period in initial grant under 2021 stock option

incentive plan the fourth vesting period under 2019 stock option incentive plan the first vesting period in reserved grant under 2021

stock option incentive plan and the fifth vesting period under 2018 stock option incentive plan were satisfied and the Company agreed

that the relevant stock option grantees of the Company exercise options at their sole discretion and a total of additional 45356811

shares were issued to the grantees exercising options at their sole discretion during the reporting period.

2. The Company publicly offered 30 million convertible corporate bonds (abbreviation: Luxshare Convertible Bonds; bond code:

128136) on November 3 2020 and the period for which the convertible corporate bonds can be converted into shares is from May 10

2021 to November 2 2026. During the reporting period the number of shares converted into by bonds was 3010.

3. Outstanding employee shares

□ Applicable □N/A

162Luxshare Precision Industry Co. Ltd. Annual Report 2022

III. Shareholders and actual controllers

1. Number of shareholders and shareholding structure of the Company

Unit: Share

Total ordinary Total number of preferred

Total number of

Total number of shareholders as stockholders with voting

preferred shareholders

ordinary of the end of the rights restored at the end of

with voting rights

shareholders at 238772 month prior to 319082 0 last month before the 0

restored at the end of

the end of the the disclosure disclosure date of the

the reporting period (if

reporting period date of annual annual report (if any) (see

any) (see note 8)

report note 8)

Shareholders holding more than 5% of shares or shares of the top 10 shareholders (excluding shares lent through refinancing)

Number Pledge mark or freeze

Number of No. of non-

Increase or decrease of

Name of Type of Shareholding shares held at tradable Status

of shares within the restricted

shareholders shareholder percentage the end of the ordinary shares of Qty

reporting period shares

reporting period held

shares held

Luxshare

Foreign legal 27315376 27315376 Pled

Co. Ltd. 38.15% 0 0 1075610000.00

person 36 36 ge

Hong Kong

Central

Foreign legal 40659146 40659146

Clearing 5.68% -155210803 0 N/A 0

person 5 5

Company

Limited

China Domestic

Securities non-state-

Finance owned 1.18% 84428888 0 0 84428888 N/A 0

Corporatio legal

n Limited person

Central

Huijin

State-

Asset

owned

Manageme 0.81% 58041012 0 0 58041012 N/A 0

legal

nt Limited

person

Liability

Company

Domestic

Changshuo

non-state-

Technology

owned 0.56% 39845105 0 0 39845105 N/A 0

(Shanghai)

legal

Co. Ltd.person

E Fund -

Agricultura

Domestic

l Bank - E

non-state-

Fund CSI

owned 0.54% 38656343 0 0 38656343 N/A 0

Financial

legal

Asset

person

Manageme

nt Plan

Huaxia Domestic 0.54% 38576831 0 0 38576831 N/A 0

163Luxshare Precision Industry Co. Ltd. Annual Report 2022

Fund - non-state-

Agricultura owned

l Bank - legal

Huaxia CSI person

Financial

Asset

Manageme

nt Plan

CITIC-

Prudential

Fund -

Agricultura

Domestic

l Bank -

non-state-

CITIC-

owned 0.54% 38557184 0 0 38557184 N/A 0

Prudential

legal

CSI

person

Financial

Asset

Manageme

nt Plan

CITIC-

Prudential

Fund -

Agricultura

Domestic

l Bank -

non-state-

CITIC-

owned 0.54% 38508814 0 0 38508814 N/A 0

Prudential

legal

CSI

person

Financial

Asset

Manageme

nt Plan

Shenwan State-

Hongyuan owned

0.52% 37322698 33510673 0 37322698 N/A 0

Securities legal

Co. Ltd person

Strategic investor or general legal person becomes the top 10 shareholders due to the placement of new

N/A

shares (if any) (See Note 3)

1. Luxshare Limited is the controlling shareholder of the Company;

Affiliates or concert parties among the shareholders listed above 2. The Company is not aware of whether there are affiliates or persons

acting in concert among the shareholders listed above.Delegation or waiver of voting rights or ownership of voting rights as a proxy in respect of the

N/A

shareholders listed above

Description (if any) of special repurchase shareholders among top 10 shareholders (refer to Note 10) N/A

Shareholdings of top 10 unrestricted shareholders

Number of unrestricted shares Type

Name of shareholders held at the end of the reporting

Type Qty period

Luxshare Limited 2731537636 RMB ordinary shares 2731537636

Hong Kong Securities Clearing Company Limited 406591465 RMB ordinary shares 406591465

China Securities Finance Corporation Limited 84428888 RMB ordinary shares 84428888

Central Huijin Investment Ltd. 58041012 RMB ordinary shares 58041012

Changshuo Technology (Shanghai) Co. Ltd. 39845105 RMB ordinary shares 39845105

164Luxshare Precision Industry Co. Ltd. Annual Report 2022

E Fund Management Co. Ltd. - Agricultural Bank of China -

38656343 RMB ordinary shares 38656343

E Fund CSI Financial Asset Management Plan

Huaxia Fund Management Co. Ltd. - Agricultural Bank of

38576831 RMB ordinary shares 38576831

China - Huaxia CSI Financial Asset Management Plan

China Europe Fund Management Co. Ltd. - Agricultural Bank

of China - China Europe CSI Financial Asset Management 38557184 RMB ordinary shares 38557184

Plan

Yinhua Fund Management Co. Ltd. - Agricultural Bank of

38508814 RMB ordinary shares 38508814

China - Yinhua CSI Financial Asset Management Plan

Shenwan Hongyuan Securities Co. Ltd 37322698 RMB ordinary shares 37322698

Affiliates or concert parties among top 10 holders of tradable ordinary shares and among

N/A

top 10 holders of tradable ordinary shares and top 10 ordinary shareholders

Engagement by top 10 ordinary shareholders in margin trading (if any) (Note 4) N/A

Top ten shareholders participating in securities lending business for the reporting period:

? Applicable □ N/A

Changes in the top ten shareholders compared to the previous period:

? Applicable □ N/A

Did any top 10 ordinary shareholder or top 10 holder of tradable ordinary shares conduct any transaction under repurchase agreement

during the reporting period

□ Yes □No

No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under repurchase agreement

during the reporting period

2. Controlling shareholder of the Company

Nature of controlling shareholder: Controlled by foreign investor

Type of controlling shareholder: Corporation

Name of controlling Legal representative/ Change in organization

Date of establishment Main business

shareholder principal code

WANG Laichun Investment and share

Luxshare Limited August 27 1999 686629

WANG Laisheng holding

Shares held by the controlling

shareholder in other

companies listed on domestic None

or foreign stock exchanges

during the reporting period

Change in the controlling shareholder during the reporting period:

□ Applicable □N/A

Our controlling shareholder has remained unchanged during the reporting period.

165Luxshare Precision Industry Co. Ltd. Annual Report 2022

3. Actual controllers of the Company and their concerted parties

Nature of actual controllers: Natural person

Type of actual controllers: Natural person

Relationship with the Whether or not hold a residence permit in any

Name of actual controller Nationality

actual controller other country or region

WANG Laichun Herself Hong Kong No

WANG Laisheng Himself Hong Kong No

Ms. WANG Laichun is the Chairman of the Board of Directors & General Manager of the

Company. In 1999 Ms. WANG Laichun and Mr. WANG Laisheng jointly purchased the shares

of Luxshare Limited. In 2004 she founded Luxshare Precision Industry (Shenzhen) Co. Ltd.(now known as “Luxshare Precision Industry Co. Ltd.”) through Luxshare Limited and acted

as its Chairman of the Board of Directors.Main occupations and titles Mr. WANG Laisheng serves as the Vice Chairman of the Board of Directors of the Company.Mr. WANG Laisheng and Ms. WANG Laichun jointly purchased the shares of Luxshare

Limited in 1999 and in 2004 Mr. WANG Laisheng and Ms. WANG Laisheng jointly

established founded Luxshare Precision Industry (Shenzhen) Co. Ltd. (now known as

“Luxshare Precision Industry Co. Ltd.”).Whether or not control any other

company listed on a domestic or

None

foreign stock exchange in the past

ten years

Change in the actual controllers during the reporting period:

□ Applicable □N/A

Our actual controllers have remained unchanged during the reporting period.Diagram of ownership and control relationship between the Company and its actual controllers:

166Luxshare Precision Industry Co. Ltd. Annual Report 2022

Whether the actual controllers control the CompanWyA tNhrGo uLgaihch aunny trust or other WwAayNsG o Lfa aisshseentg m anagement

□ Applicable □N/A

4. The Company’s controlling shareholder or top 1 shareholder and its persons acting in concert pledged

account for 80% in total of the Company’s sharesL huxesldha rbey L tihmeitmed

□ Applicable □N/A

Luxshare-ICT

5. Other institutional shareholders owning over 10% of shares

□ Applicable □N/A

6. Restrictions on shareholding reduction of the controlling shareholder actual controller restructuring

parties and other commitment subjects

□ Applicable □N/A

IV. Specific implementation of share repurchases during the reporting period

Progress of share repurchase:

□ Applicable □N/A

Progress of sales of repurchased shares through call auction:

167Luxshare Precision Industry Co. Ltd. Annual Report 2022

□ Applicable □N/A

168Luxshare Precision Industry Co. Ltd. Annual Report 2022

Section VIII Preference Shares

□ Applicable □N/A

We did not have any preferred share during the reporting period.

169Luxshare Precision Industry Co. Ltd. Annual Report 2022

Section IX Bonds

□Applicable □ N/A

I. Enterprise bonds

□ Applicable □N/A

The Company had no enterprise bonds during the reporting period.II. Corporate bonds

□ Applicable □N/A

The Company had no corporate bonds during the reporting period.III. Non-financial corporate debt financing instruments

□Applicable □ N/A

1. Basic information of non-financial corporate debt financing instruments

In RMB 10000

Principal

and

Bond Bond Issue Maturity Bond Interest Trading

Bond name Start date interest

abbreviation code date date balance rate venue

payment

method

Phase IV A lump

ultra-short- sum

term financing payment

Interbank

bonds in 2022 22 Luxshare- 0122821 June 15 June 17 March of

100000 2.40% bond

of Luxshare ICT SCP004 52 2022 2022 14 2023 principal

market

Precision and

Industry Co. interest at

Ltd maturity

Phase VI A lump

ultra-short- sum

term financing payment

Interbank

bonds in 2022 22 Luxshare- 0122824 July 14 July 15 April 11 of

120000 2.20% bond

of Luxshare ICT SCP006 91 2022 2022 2023 principal

market

Precision and

Industry Co. interest at

Ltd maturity

Phase VII A lump

ultra-short- sum Interbank

22 Luxshare- 0122825 July 21 July 22 April 18

term financing 80000 2.15% payment bond

ICT SCP007 85 2022 2022 2023

bonds in 2022 of market

of Luxshare principal

170Luxshare Precision Industry Co. Ltd. Annual Report 2022

Precision and

Industry Co. interest at

Ltd maturity

Phase VIII A lump

ultra-short- sum

term financing payment

Interbank

bonds in 2022 22 Luxshare- 0122826 July 28 July 29 April 25 of

80000 2.15% bond

of Luxshare ICT SCP008 74 2022 2022 2023 principal

market

Precision and

Industry Co. interest at

Ltd maturity

Phase I ultra- A lump

short-term sum

financing payment

Interbank

bonds in 2023 23 Luxshare- 0123816 April 21 April 21 July 20 of

120000 2.77% bond

of Luxshare ICT SCP001 57 2023 2023 2023 principal

market

Precision and

Industry Co. interest at

Ltd. maturity

Phase II ultra- A lump

short-term sum

financing payment

Novembe Interbank

bonds in 2023 23 Luxshare- 0123819 May 23 May 23 of

r 17 80000 2.42% bond

of Luxshare ICT SCP002 30 2023 2023 principal

2023 market

Precision and

Industry Co. interest at

Ltd. maturity

Phase III ultra- A lump

short-term sum

financing payment

Novembe Novembe Interbank

bonds in 2023 23 Luxshare- 0123841 May 10 of

r 14 r 15 80000 2.70% bond

of Luxshare ICT SCP003 22 2024 principal

2023 2023 market

Precision and

Industry Co. interest at

Ltd. maturity

Institutional investors on the national interbank bond market (except for purchasers

Investors’ appropriate arrangements (if any)

prohibited by laws and regulations of China)

Applicable trading mechanism Public trading

Whether there is the risk of termination of

No

listing (if any) and countermeasures

Bonds overdue but not yet repaid

□ Applicable □N/A

2. Trigger and implementation of the issuer or investor option provisions or investor protection provisions

□ Applicable □N/A

171Luxshare Precision Industry Co. Ltd. Annual Report 2022

3. Intermediaries

Name of

Name of accountants Contact person

Name of bond project Office address Phone

intermediary signing this of Intermediary

report

No. 22

Phase IV ultra-short-term

Jianguomennei

financing bonds in 2022 of Huaxia Bank

Avenue None LI Bailu 010-85237515

Luxshare Precision Industry Co. Co. Ltd.Dongcheng

Ltd.District Beijing