Annual Report 2024 of Luxshare Precision Industry Co. Ltd.Luxshare Precision Industry Co. Ltd.Annual Report 2024
April 2025
1Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Annual Report 2024
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 CFOWU 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 Annual Report.The relevant risks facing the Company are set out in "Section III
Management’s Discussion and Analysis - XI. Prospects for future developmentof the Company”.According to the profit distribution proposal approved by the Board of
Directors the Company will distribute a cash dividend of RMB 2 (inclusive of
tax) per 10 shares to all shareholders on the basis of 7247395805 shares and
will not distribute any bonus shares or transfer any capital reserve to the share
capital for the reporting period.
2Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Table of Contents
Section I Important Note Table of Contents and Def... 2
Section II Company Profile and Key Financial Indic...11
I. Company Profile ..................................11
II. Contact Person and Contact Information ..........11
Iii. Media for Information Disclosure and Place fo...11
IV. Changes in Registration Particulars ............ 11
V. Other Related Information ........................12
VI. Key Accounting Data and Financial Indicators ... 12
VII. Differences in Accounting Data arising fromAdoption of Chinese and Foreign Accounting
Standards Concurrently ............................. 13
VIII. Key Quarterly Financial Indicators ............13
IX. Items and Amounts of Non-Recurring Gains or Lo.. 13
Section III Management’s Discussion and Analysis ... 15
I. Industry Landscape of the Company during the Re.. 15
II. Principal Businesses of the Company during the.. 16
III. Analysis of Core Competencies ..................18
IV. Analysis of Main Business .......................20
V.Analysis of Non-main Business .................... 55
VI. Analysis of Assets and Liabilities ............. 56
VII. Analysis of Investments ........................58
VIII. Sale of Material Assets and Equities ......... 61
IX. Analysis of Major Controlled and Investee Comp.. 62
X. Structured Entities Controlled by the Company ....66
XI. Prospects for Future Development of the Compan...66
XII. Research Communication Interview and Related Activities during the Reporting Period .. 68
XIII. Formulation and Implementation of Market Value Management System and Value
3Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Enhancement Plan ....................................69
XIV. Implementation of the Quality Return Double I...69
Section IV Corporate Governance .....................73
I. Overview of our Corporate Governance ............ 73
II. The Company’s Independence of its Controlling Shareholder and Actual Controller in Assets
Personnel Finance Organization and Business .........74
III. Horizontal Competition .........................75
IV. Annual and Extraordinary General Meetings of Shareholders Held during the Reporting
Period ..............................................75
V. Directors Supervisors and Executives .............77
VI. Performance of Duties by the Directors during .. 83
VII. Activities of the Committees of the Board of .. 86
VIII. Activities of the Board of Supervisors ........90
IX. Employees ...................................... 90
X. Profit Distribution and Transfer of Capital Res.. 91
XI. Implementation of Share Incentive Plans Employee Stock Ownership Plans and Other
Employee Incentives Granted by the Company ......... 93
XII. Establishment and Implementation of Internal Controls during the Reporting Period ......... 99
XIII. Management and Control of Subsidiaries durin...99
XIV. Self-assessment Report on Internal Controls or Auditor’s Report on Internal Controls .....100
XV. Rectification of Non-compliance Identified in the Special Self-examination of Corporate
Governance of the Listed Company .................. 101
Section V Environment and Social Responsibilities ..102
I. Significant Environmental Issues ............... 102
II. Description of Social Responsibilities .........121
III. Consolidation and Expansion of Poverty Allevi..122
Section VI Significant Matters .................... 123
I. Fulfillment of Commitments ......................123
4Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
II. Occupation of Funds of the Listed Company by the Controlling Shareholder and Other
Related Parties for Non-operating Purposes ........ 126
III. Illegal Provision of Guarantees for External ..127
IV. Explanation Made by the Board of Directors about the Modified Audit Opinion for the
Latest Period ..................................... 127
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 .................................. 127
VI. Explanation about Changes in Accounting Policies andAccounting Estimates or Correction
of Significant Accounting Errors When Compared wit..127
VII. Explanation about Changes in Consolidation Scope When Compared with the Previous
Financial Year .................................... 127
VIII. Appointment and Dismissal of Accounting Firm. 127
IX. Delisting Risks Faced after the Disclosure of ..128
X. Matters Relating to Bankruptcy and Reorganizati..128
XI. Material Litigation and Arbitration Proceeding. 128
XII. Penalty and Rectification .....................128
XIII. Integrity Status of the Company its Controlling Shareholder and Actual Controller ........ 128
XIV. Material Related-Party Transactions ...........129
XV. Significant Contracts and Their Performance ... 132
XVI. Other Significant Matters .....................139
XVII. Significant Events of Subsidiaries of the Co..140
Section VII Changes in Shareholdings and Particula. 141
I. Changes in Shares .............................. 141
II. Offering and Listing of Securities .............143
III. Shareholders and Actual Controllers ...........144
IV. Specific Implementation of Share Repurchases d..148
Section VIII Preference Shares .................... 149
Section IX Bonds ...................................149
5Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
I. Enterprise Bonds ................................149
II. Corporate Bonds ................................149
III. Non-Financial Corporate Debt Financing Instru..149
IV. Convertible Corporate Bonds ................... 155
V. The Loss in the Scope of Consolidated Statements of the Company during the Reporting
Period Exceeded 10% of the Net Assets at the End o..160
VI. Overdue Interest-Bearing Debts Other than Bonds at the End of the Reporting Period ....... 160
VII. There were Violations of Rules and Regulation..160
VIII. Main Accounting Data and Financial Indicators of the Company for Most Recent Two
Years as of the End of the Reporting Period ........160
Section X Financial Report .........................161
I. Auditor’s Report ............................... 161
II. Financial Statements .......................... 163
III. Basic Information ............................ 185
IV. Basis of Preparation of Financial Statements .. 185
V. Significant Accounting Policies andAccounting E..185
VI. Taxes ......................................... 217
VII. Notes to Items in Consolidated Financial Stat..225
VIII. R&F Expenditures ............................ 279
IX．Changes in Scope of Consolidation .............. 280
X. Equity in Other Entities ....................... 284
XI. Government Grants ............................. 301
XII. Risks Associated with Financial Instruments .. 302
XIII. Disclosure of Fair Value .....................306
XIV. Related Parties and Related-party Transaction. 307
XV. Share-based Payment ............................322
XVI. Commitments and Contingencies ................ 325
6Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
XVII. Events after the Balance Sheet Date ......... 325
XVIII. Other Significant Events ................... 327
XVIX. Notes to Key Items in Financial Statements o. 328
XX. Supplementary Information ..................... 344
7Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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.
8Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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.Shanxi Luxshare Precision Industry Co.Luxshare Shanxi means
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
Co. Ltd.Luxshare Precision Industry (Kunshan)
Luxshare Kunshan means
Co. Ltd.Luxshare Precision Industry (Baoding)
Luxshare Baoding means
Co. Ltd.Xuancheng Luxshare Precision Industry
Luxshare Xuancheng means
Co. Ltd.Luxshare Precision Industry (Yancheng)
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 Electronics Co. Ltd.Meite Suzhou means Merry Electronics (Suzhou) Co. Ltd.Huzhou Jiuding means Huzhou Jiuding Electronic Co. Ltd.Lanto Kunshan means Lanto Electronic Limited
Kunshan-Luxshare RF Technology Co.Kunshan RF means
Ltd.Liding Electronic Technology
Liding Dongguan means
(Dongguan) Co. Ltd.
Luxcase Precision Technology
Luxcase ICTYancheng means
(Yancheng) Co. Ltd.
9Annual Report 2024 of Luxshare Precision Industry 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 Luxshare-ICT Electronics Co.Xingning Electronics means
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.BCSAutomotive Interface Solutions
BCS Germany means
GmbH (Germany)
BCSAutomotive Interface Solutions US
BCS USA means
LLC (USA)
BCSAutomotive 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.
10Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
Registered address 2/F Block A Sanyang New Industrial Zone West Haoyi Shajing Street Baoan DistrictShenzhen
Postal code of registered
address 518104
History of changes in
registered address N/A
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 XIAO Yunxi CHENWeihang
Address No. 313 Beihuan Road Qingxi Town No. 313 Beihuan Road Qingxi TownDongguan Guangdong Dongguan Guangdong
Telephone 0769-87892475 0769-87892475
Fax 0769-87732475 0769-87732475
E-mail Yui.Hsiao@luxshare-ict.com Weihang.Chen@luxshare-ict.com
III. Media for Information Disclosure and Place for Keeping Annual Report
Website of the stock exchange disclosing the Company’s
annual report Shenzhen Stock Exchange (www.szse.cn)
Media and website disclosing the Company’s annual report The Securities Times the Shanghai Securities News andhttp://www.cninfo.com.cn
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
any) No
Changes in controlling shareholder (if any) No
11Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
V. Other Related Information
Accounting firm engaged by the Company
Name of accounting firm BDO China Shu Lun Pan Certified Public Accountants LLP
Office address of accounting firm Rooms 1 2 & 3 4/F No. 61 East Nanjing Road HuangpuDistrict Shanghai
Name of accountants signing this Annual Report QIANG Guiying ZHANG Yehua
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
The Company needs to retrospectively adjust or re-state any accounting data of prior accounting years
□Yes□No
2024 2023 Y/Y%Change 2022
Operating income (RMB) 268794737612.58 231905459829.83 15.91% 214028394291.44
Net profit attributable to shareholders
of the listed company (RMB) 13365651026.16 10952656702.16 22.03% 9163104849.54
Net profit attributable to shareholders
of the listed company after deduction of 11694305563.27 10185553553.99 14.81% 8442052945.85
non-recurring gain or loss (RMB)
Net cash flow from operating activities
(RMB) 27116908208.53 27605060411.16 -1.77% 12727610319.34
Basic earnings per share (RMB/share) 1.86 1.54 20.78% 1.29
Diluted earnings per share (RMB/share) 1.85 1.53 20.92% 1.28
Decrease
Weighted average ROE 21.34% 21.61% by 0.27percentage 23.00%
points
December 31 2024 December 31 2023 Y/Y%Change December 31 2022
Total assets (RMB) 223827584433.26 161992099595.65 38.17% 148384319074.71
Net assets attributable to shareholders
of the listed company (RMB) 69327010925.99 56310184510.60 23.12% 45342897318.53
The lower of the net profit before and after deducting of non-recurring gains or losses 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
The Company's audited total profit net profit and net profit after deducting non-recurring gains and losses for the most recent
accounting year whichever is lower is negative.□Yes□No
12Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
VII. Differences in Accounting Data arising fromAdoption 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 Financial Reporting Standards (IFRS) 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 Financial Reporting Standards (IFRS) 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. Key Quarterly Financial Indicators
In RMB
Q1 Q2 Q3 Q4
Operating income 52406775584.57 51191198773.80 73578910433.75 91617852820.46
Net profit attributable to
shareholders of the listed 2471024666.99 2925138191.62 3678791617.01 4290696550.54
company
Net profit attributable to
shareholders of the listed
company after deduction of non- 2183139364.86 2776419081.87 3157877780.29 3576869336.25
recurring profit or loss
Net cash flow from operating
activities -844429966.03 3245209400.58 4274233821.12 20441894952.86
There are significant differences 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
In RMB
Item 2024 2023 2022 Remark
Gains or losses from disposal of non-current
assets (including the write-offs for the 1583392.42 106350953.11 40397780.40
accrued impairment of assets)
Government grants recognized in profit or
loss (excluding government grants that are 933138071.97 791098788.52 602294263.90
closely related to the business of the
13Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Company in accordance with national policy
requirements 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 of financial assets and financial 1044148947.84 488375997.34 543762585.57
liabilities except for effective hedging
transactions related to the Company's
ordinary operating activities
Gain or loss on assets under entrusted
investment or management 906650515.66 189969851.82 50525057.66
Other non-operating income and expenses 1906501.58 41640366.02 11040674.64
Other non-operating income and expenses
except the above items -476778306.58 -601026495.49 -377143056.77
Investment income from disposal of joint
ventures 10018847.56 0.00 0.00
Less: Amount affected by the income tax 412248026.21 158749222.86 100226804.81
Amount affected by minority interests
(after tax) 337074481.35 90557090.29 49598596.90
Total 1671345462.89 767103148.17 721051903.69 --
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.
14Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Section III Management’s Discussion and Analysis
I. Industry Landscape of the Company 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 integration.(I) Consumer Electronics
During 2024 the consumer electronics industry managed to stage a strong recovery from previous setbacks despite ongoing
global economic instability with particularly encouraging progress in rebuilding profit margins. In the past two years the
application of AI technology in consumer electronics products has become increasingly profound. From the concentrated release
of AI phones and AI PCs to smart wearable products achieving more precise health detection through AI and various smart home
products integrating AI technology for application upgrades it is evident that AI is reshaping the user experience of consumer
electronics products. Simultaneously the continuous maturation of foldable screen technology has enabled product form
diversification slimming and price reduction driving rapid market growth. With the continuous implementation of new
technologies the consumer electronics industry in 2024 not only achieved quantitative growth but also initiated a new round of
innovation cycles accumulating momentum for explosive growth as AI technology reaches maturity and broader implementation
in the future.(II) Communication and Data Center
In the communication RF field in 2024 the deployment of 5G-A networks and the investment in 6G research and
development progressed simultaneously. Countries globally are accelerating the construction of computing infrastructure and
vigorously promoting the construction of new generation communication networks such as 5G and gigabit optical networks. The
data center industry focusing on "high bandwidth low latency and green" is entering a new stage of technological upgrades and
scale expansion driven by both the explosion of AI computing power and the acceleration of global digital infrastructure
construction. Continuous breakthroughs in technology and business in core areas of the Company's business such as copper
connection optical connection heat dissipation modules and power supply are driving the industry chain towards a more efficient
and greener direction.Copper-based Interconnection Technology remains a key solution for high-speed interconnection in data centers due to its
advantages in cost power consumption and heat dissipation efficiency in short-to-medium distance transmission scenarios. In the
field of optical connection the accelerated commercialization of silicon photonics and LPO (Linear Pluggable Optics) technology
is pushing the optical module market towards a 1.6T upgrade. In the coming years high-speed interconnection products are
expected to show a superimposed growth trend with the implementation of global computing infrastructure construction.With the dramatic increase in equipment heat generation due to increased computing power efficient heat dissipation has
become one of the key technologies for the iterative upgrade of AI terminal products. At the same time data centers require a large
amount of electrical energy support and as data volume continues to increase the demand and performance requirements for
electrical energy are also growing day by day. These factors bring huge growth space for the industry.(III) Automotive Electronics
In 2024 China's automotive industry driven by the dual engines of electrification and intelligence showed strong momentum
of vigorous development especially achieving remarkable results in the new energy vehicle sector.The smart cockpit has entered a new era driven by "large models" where multi-modal interaction methods supported by edge
artificial intelligence (AI) including voice gesture recognition and eye tracking technology are increasingly becoming standard
configurations in this field.
15Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The field of intelligent chassis is developing rapidly and the industry is entering a completely new stage. At the technological
level cutting-edge technologies such as wire-controlled braking and skateboard chassis continue to make breakthroughs pushing
automobiles to evolve into "intelligent life forms." From an industry perspective the pace of domestic substitution is accelerating
and core technology breakthroughs by local enterprises are reshaping the supply chain landscape. Simultaneously the dominance
of OEMs is strengthening deepening collaboration with suppliers to accelerate closed-loop product iteration and software
upgrades aligning with rapid market changes.The urban NOA (Navigation on Autopilot) function is accelerating its popularization in mainstream price segment vehicles
and L3 driving assistance technology is being implemented on open roads in pilot cities like Beijing Shanghai Guangzhou and
Shenzhen enabling rapid development and implementation of intelligent driving assistance technology.With technological advantages in new energy and intelligent connected vehicles Chinese automobiles are continuously
enhancing their competitiveness in the international market gradually opening up new global market patterns and becoming a
bright name card for Chinese manufacturing.(IV) Our Position in the Industry
During the reporting period the Company was awarded honorary titles such as "Fortune Global 500" and "Ranked 1st among
key enterprises in China's electronic components industry in 2024". Important subsidiaries of the Company were awarded honorary
titles such as "Top 500 Chinese Private Enterprises" and "Top 500 Chinese Manufacturing Private Enterprises".II. Principal Businesses of the Company during the Reporting Period
During the reporting period the Company was mainly engaged in the business of related components modules and system
integration in fields such as consumer electronics communications and data centers automotive and medical including but not
limited to the following sub-products:
(I) Consumer Electronics Business
1. Components: connectors wire harness assemblies speakers mics Wi-Fi modules Haptic (vibration motors) VCM (Voice
Coil Motors) variable apertures antennas Bluetooth modules Power components (power cords UPS inverters power strips
charging plugs wireless charging transceiver modules and chargers) magnetic components plastic molded parts metal structural
parts etc.
2. Modules: screen modules mini-LEDs SiP (System-in-Package) and other components.
3. System Integration:
Smart Terminals: laptops all-in-one computers etc.Acoustic Field: call headsets over-ear headphones TWS earphones bone conduction sports headphones AI conference
headsets conference speakers Soundbars etc.Smart Wearable Devices: AI glasses AR/VR/XR glasses smart bracelets smart watches etc.Smart Home: smart speakers smart home cameras smart switches smart doorbells smart door locks robot vacuums electric
toothbrushes facial cleansers beauty devices massagers etc.Outdoor Electronic Products: action cameras drones smart gimbals electric scooters outdoor portable power stations etc.Network Communication Products: Wi-Fi 6 / Wi-Fi 7 routers 5G CPE 5G millimeter wave CPE etc.Other Consumer System Products: electronic price tags ETC electronic thermometers and hygrometers mobile POS
machines home 2D/3D printers network conference cameras electronic styluses blood glucose monitoring terminals insulin
pumps hearing aids etc.(II) Communication and Data Center Business
1. Data Center Business
(1) Copper Cable High-Speed Interconnection Solutions:
16Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Intrepid high-speed backplane solutions CPC & NPC solutions high-speed external interconnection solutions
(DAC/ACC/Lite Active Cable and related connectors) high-speed internal interconnection solutions (including high-speed
internal cables SSIO Riser Cable) etc.
(2) Optical High-Speed Interconnection Solutions:
DPO optical modules and AOC LPO optical modules and AOC LRO optical modules and AOC supporting rates up to 1.6T.Form Factors include SFP QSFP QSFP-DD OSFP and SMF/MMF Fiber etc.
(3) Thermal Management Solutions:
Four major product series: active passive liquid cooling and temperature control systems including full-spec fan modules
Heat Sink Heat Pipe VC cold plate liquid cooling systems Manifold rack-mounted CDU cabinet CDU blind-mate quick
connectors immersion liquid cooling Tank etc.
(4) Data Center Power Solutions:
Power Shelf & Rectifier (AI cabinet power solutions) DC Busbar 70A-1000A 54V Busbar Clip up to 3200W 12V/54V
AC/DC CRPS up to 3200W 12V MCRPS as well as various Power Module/VRM/VPM (AI node module power solutions) etc.
2. Communication Business:
Base station antennas 4G multi-band filters 5G Sheet Metal Filters Nano 5G single-band filters 5G planar filters 5G
antenna filter modules 4G wireless RF units 5G wireless RF units SIAE outdoor RF units SIAE indoor RF units RCU antenna
remote control modules Lampsite antennas (indoor coverage antennas) BOOK antennas (macro station coverage enhancement
antennas) WLAN antennas WIFI antennas planar drive modules antenna reflectors antenna low-frequency phase shifters etc.(III) Automotive Business
1. Vehicle Harness
High-voltage harness Low-voltage harness USB harness ABS harness EPB harness Fakra harness HSD harness Ethernet
harness Charging gun etc.
2. Vehicle Connectors
High-voltage connector Low-voltage connector High-speed connector etc.
3. Electronic and Electrical Products
Vehicle USB module WPC (Wireless Charging Module) UWB Digital Key ACU (Airbag Control Unit) SJB (Smart
Junction Box) CMS (Camera Monitoring System / Electronic Rearview Mirror) Hidden Door Handle etc.
4. Smart Cockpit
C-HUD (Combined Head-Up Display System) W-HUD (Windshield Head-Up Display) AR-HUD (Augmented Reality
Head-Up Display System) TBOX (Telematics Box / Smart Connectivity Module) DMS (Driver Monitoring System) Vehicle
Display Module ZCU (Zone Control Unit) CCU (Central Control Unit) Qualcomm 8255 Platform Domain Controller DCU
(Door Control Unit) etc.
5. Intelligent Driving Assistance
ADAS (Advanced Driver Assistance Systems) Qualcomm 8797 Platform Domain Controller Horizon J6E Integrated
Driving and Parking Domain Controller Horizon J3 Forward-looking All-in-one Camera PDC (Parking Distance Control /
Ultrasonic Parking Sensor) etc.
6. Intelligent Chassis
PPK (Steering System Control Unit) ARS (Active Rear Steering System) LPS (Linear Position Sensor) EMB (Electro-
Mechanical Brake System / Brake-by-Wire) VMC (Vehicle Motion Control Domain Controller) etc.
7. Powertrain System
Automotive Multi-in-one Powertrain MCU (Motor Control Unit) PDU (Power Distribution Unit) DCDC (DC-DC
Converter) OBC (On-Board Charger) PNG (Power Isolation Module) BMS (Battery Management System) etc.
17Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(IV) Medical Business
1. Patient Monitoring
SpO2 Probe Cable / Pulse Oximetry Probe Cable ECG Cable Lead Wire Temperature Probe Fetal Heart Rate Monitoring
Cable etc.
2. Surgical
Ultrasonic Scalpel Cable Electrosurgical Pencil Cable Surgical Connectors etc.
3. Others
Defibrillation Cable Nebulizer Wearable Electrical Muscle Stimulation Device Wearable Activity Monitoring and
Rehabilitation Devices etc.III. Analysis of Core Competencies
(I) Intelligent Manufacturing and Digital Management Capability
Based on a deep understanding of the essence of precision manufacturing and continuous innovation and relying on its
independent development capabilities for the design manufacturing maintenance and iterative upgrades of automated factory
systems the Company has built a digital ecosystem with deep human-machine collaboration. It integrates industrial robots big
data collection and analysis AI algorithms and digital twin technology throughout the entire process of R&D design production
manufacturing supply chain management and quality control. Combined with our innovations in the automation and intelligence
of existing process technologies this realizes the deep integration and application of these technologies in the field of electronic
manufacturing enabling the accumulation of process parameters quality standards and operating procedures through databases
experience and talent thus laying a solid foundation for global capacity layout and rapid large-scale replication.In the advancement of smart factory construction the Company integrates and deeply mines data related to personnel
resources manufacturing and operations horizontally by deploying digital systems such as SAP PLM and MES establishing a
complete underlying database. Relying on digital twin technology for bidirectional mapping of physical production lines and
virtual models by simulating and verifying the design of new products and the planning of production processes in a virtual
environment the Company proactively identifies and solves potential problems thus shortening product R&D cycles and capacity
ramp-up time. Meanwhile the Company utilizes AI algorithms and AOI machine vision inspection to achieve precise control and
real-time correction of various parameters in the production process significantly improving production yield efficiency.In 2024 the Company actively promoted the upgrade to Smart Factory 2.0. Building on the original "algorithm + data" driven
foundation it deeply integrated IoT technology creating an intelligent closed-loop system for data self-collection self-analysis
self-decision and self-execution. With the strong support of this powerful system the Company first built a "Dark Factory"
demonstration model at its Suzhou Kunshan factory. Automated robotic arms on the production line operate flexibly and precisely
intelligent AGVs efficiently shuttle transporting materials and various advanced intelligent equipment coordinate seamlessly
without human intervention achieving unmanned and efficient production throughout the entire process. Verified by actual
operation compared to traditional production mode production efficiency is significantly improved product consistency is
notably enhanced and the yield rate is greatly increased. In the future the Company will fully roll out and replicate this successful
model across the group driving a leapfrog improvement in production efficiency at all factories.(II) Vertical Integration and Cross-Domain Technology Fusion and Innovation Capabilities
The Company through a development strategy driven by "organic growth and external expansion" twin engines has
established a complete capability framework in underlying technology areas such as acoustics optics electronics thermal
management magnetism radio frequency and structural parts and built a general technology platform for multi-scenario
applications. Through this it achieves dynamic combination and synergistic optimization of different technological elements
which can quickly respond to diverse customer needs and also proactively transfer mature technology solutions to emerging fields
18Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
and provide unique and leading value to customers through fusion and innovation. Furthermore based on systematic research into
basic materials process technologies and testing technologies the Company has achieved full-chain technology coverage from
core components to complex modules and system integration. On this basis the Company's in-house R&D team works closely
with global leading customers and jointly establish multiple R&D labs to quickly grasp the trends of cutting-edge technological
development and opportunities in related clean technology industries such as new energy vehicles photovoltaics and energy
storage fully leveraging the Company's deep understanding of precision manufacturing practices as well as comprehensive digital
and intelligent empowerment to achieve joint innovation in new materials new processes and new manufacturing methods and
rapidly implement the commercialization process of technological innovation achievements.As of December 31 2024 the Company and its subsidiaries cumulatively hold 7164 patents.(III) Global Leading Customer Resources and Global Capacity Layout
As a leading enterprise in the field of high-end precision manufacturing the Company always upholds the philosophy of
"Flying with the Phoenix" relying on a forward-looking global perspective forming a diversified matrix of leading customers
covering fields such as consumer electronics automotive communications and data centers. By deeply integrating into the supply
chain systems of international top brand customers in the process of continuously meeting customers' personalized needs the
Company has gradually built a comprehensive service advantage centered on forward-looking R&D rapid response and quality
control.In terms of global capacity layout the Company's manufacturing bases are widely distributed in countries including China
Vietnam Thailand Indonesia Malaysia Romania Morocco India Mexico and Germany.In China the Company has established manufacturing bases in Guangdong Jiangxi Fujian Hubei Jiangsu Zhejiang Anhui
Hebei Shaanxi Sichuan and other places. The Company effectively integrated complete local industry chain support resources
and high-quality talent reserves forming a technological highland for precision manufacturing.In Southeast Asia and East Asia the Company has operations in countries including Vietnam Thailand Indonesia Malaysia
and India leveraging the local relatively advantageous labor costs and preferential policies effectively reducing production costs
and enhancing product price competitiveness.In countries such as Mexico Germany Romania and Morocco the Company's capacity layout helps to be closer to local and
surrounding markets enabling quick response to customer needs shortening product delivery cycles enhancing market response
flexibility and simultaneously further expanding international market share and optimizing the global market layout.This "local innovation + global delivery" capacity configuration model enables the Company to flexibly allocate resources
provide customized solutions for different markets and different customer characteristics and also greatly reduces the risks
brought by current international political uncertainties becoming a highly capable and full-spectrum partner for leading customers
globally.(IV) Social Responsibility and Sustainable Development
The Company always regards sustainable development as a key part of its corporate development strategy establishes an
ESG management structure with the Board of Directors and Strategy Committee as the core decision-making layer and
systematically promotes sustainable development practices in four core areas: scientific governance green and low-carbon
harmonious health and responsible procurement. The Company spares no effort to build an efficient clean low-carbon and
circular green manufacturing system. As of the end of the reporting period 18 subsidiaries have cumulatively obtained national or
provincial/municipal green factory certification 14 subsidiaries have obtained UL2799 Zero Waste to Landfill certification and 6
subsidiaries have obtained International Water Stewardship Standard (AWS) certification effectively reducing emissions from
production and operation activities and improving resource utilization efficiency.In the process of innovation-driven green manufacturing the Company relies on the deep integration of digitalization and
automation technologies to systematically promote the innovation of manufacturing processes and significantly improves resource
19Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
utilization efficiency by introducing cutting-edge technologies and intelligent management systems. At the same time the
Company focuses on the widespread application of clean energy technologies such as energy storage and rooftop photovoltaics
integrates the green concept throughout the entire product life-cycle strictly adheres to green standards actively explores
breakthroughs in circular and recyclable materials and reduces waste generation at the source. During the reporting period the
proportion of clean energy used by the Company exceeded 70% correspondingly reducing greenhouse gas emissions by nearly
1.53 million tons of CO?e. For more details please refer to the "2024 Annual Sustainability Report" disclosed by the Company.
(V) Talent Strategy and Corporate Culture
The Company always regards talent as the core element driving innovation and development building core advantages
supporting sustainable development through systematic talent cultivation mechanisms and a comprehensive humanistic care
system. On the one hand through a sound talent echelon building system and reserve mechanism the Company widely attracts
outstanding talents who fit the Company's growth needs and identify with the corporate culture forming a diversified global talent
reserve network. On the other hand the Company continuously optimizes its talent cultivation system and selection and
appointment system as business development poses new requirements for talents stimulating them to break through the
boundaries of their capabilities and improve their comprehensive strength and management level.In 2024 the Company officially released its Corporate Culture 2.0 system establishing five core values: "Drive Client Value
Mission Must Be Accomplished Continuous Innovation Work Together Self-driven Growth". These concepts are not only deeply
rooted in the hearts of every Luxshare employee but also become the spiritual core of the Company's development. Specifically
under the guidance of "Drive Client Value" the Company always prioritizes technological innovation ahead of customer needs
thereby exceeding customer expectations time and again ensuring that products and services can create differentiated value for
customers. Meanwhile through the "Accomplish Mission" rapid response mechanism the Company conducts in-depth analysis
and element decomposition of customer needs spares no effort to solve customers' current pain points and difficulties thereby
ensuring the timeliness and quality of product delivery. On this basis the "Continuous Innovation" culture drives the Company to
continuously increase R&D investment especially in the upgrading and iteration of process technologies and the pioneering
innovation of underlying technologies and materials guiding actions with the goal of solving problems and creating value daring
to break thinking frameworks and ultimately finding optimal solutions in a larger scope shaping long-term continuous and stable
core competitiveness from technology to product and from product to commodity. In addition supported by the concept of "Work
Together" Luxshare employees face challenges and difficulties head-on achieving new leaps through team collaboration and
mutual support. Finally "Self-driven Growth" guides all Luxshare employees to maintain the humility of a beginner and an open
mindset actively embrace change and proactively seek progress and improvement ensuring that they maintain a relative
advantage in fierce competition. It is precisely relying on these five core values that the Company realizes the talent journey "from
being attracted and retained to becoming strong" while ensuring sufficient talent for traditional advantageous areas it also lays a
solid foundation for the development and sustainable growth of new fields and new businesses.IV. Analysis of Main Business
1. Overview
(1) Consumer Electronics Business
In the field of consumer electronics on the one hand the Company continues to consolidate and deepen its OEM business
building a full industry chain ecosystem from components and modules to system integration through a vertical integration
strategy. In multiple key product areas such as connectors wire harnesses speakers vibration motors voice coil motors large and
small precision structural parts RF antennas Bluetooth modules WIFI modules wireless charging modules acoustic modules
screen modules and SiP the Company provides customers with stable and continuous high-quality components by leveraging
cutting-edge material innovation advanced processes and manufacturing optimization. On this basis the Company fully leverages
20Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
the synergy between upstream and downstream links with high-standard quality control and precise cost control systems
combined with the intelligent application of AI technology and digital twin technology to dynamically simulate and optimize the
product design and production processes continuously providing high-value-added products and services to customers in the
module products and system integration links. This strategy not only effectively ensures product consistency but also significantly
improves production yield and reduces production costs further consolidating the Company's market position in the OEM business
area with international top-tier customers.On the other hand the Company is vigorously expanding its ODM business footprint. Relying on the high-precision
underlying technology experience accumulated through long-term service for international top-tier customers in OEM business
covering acoustics optics electronics thermal management magnetism radio frequency and structural parts the Company has
gained the ability for cross-disciplinary fusion applications. Combined with the advantages of vertical integrated industrial layout
it provides global well-known consumer electronics brands and innovative startup brands with tailor-made one-stop solutions
covering product design development mass production testing quality control cost control supply chain management and
logistics and warehousing bringing customers an unprecedented level of high-quality service experience. This not only expands
the customer matrix of the ODM business but also brings more abundant incremental business opportunities to the Company
strongly establishing the Company's leading position in the industry. Currently the Company's ODM business products cover
multiple popular categories such as smart AR/VR glasses smart acoustic products smart office equipment smart home products
and outdoor smart devices. The product matrix is continuously enriched and improved and market share is gradually expanding.
(2) Communications and Data Center Business
With the explosive growth of AI applications globally the demand for computing power data transmission speed and quality
heat dissipation and energy management in AI data centers is experiencing exponential growth. In this context the Company
keenly observes industry trends and based on the modular design concept proactively lays out data center components and
innovatively created an overall solution of core components for AI integrated rack servers. This solution covers four major
modules: copper cable high-speed interconnection optical high-speed interconnection thermal management and power
management. Core products include Cable Cartridge high-speed backplane interconnection system Koolio co-packaged copper
interconnection architecture 1.6T OSFP DAC and AOC cold plate liquid cooling system 120kW liquid-to-liquid exchange CDU
27.5kW Power Shelf etc. In addition the Company also lays out communication RF products such as 4G/5G base stations
enhancing the product portfolio of the communication business.With breakthrough achievements in multiple key technologies the Company has become a core partner for leading domestic
and international communication operators and AI computing center customers providing them with customized solutions to
accurately match complex needs in different scenarios further enhancing market competitiveness. At the same time to
continuously improve technical strength and innovation capabilities the Company actively collaborates with international leading
chip companies integrating upstream and downstream resources across the value chain to achieve full-process innovation synergy
from chip design and manufacturing module assembly to system integration and is fully committed to building a "chip - module -
system" vertical integrated innovation chain effectively shortening product R&D cycles and improving product performance and
quality.Among them in the data center business field the main innovation highlights during the reporting period are as follows:
1) 224G KOOLIO CPC (Co-Packaged Copper Interconnection) as a cutting-edge interconnection solution breakthroughs in
directly integrating high-speed connectors with chip substrates specifically developed to address the challenges of ultra-high
density and ultra-high-speed data transmission. With its ultra-high-density design extremely low loss and crosstalk control and
low power consumption per port characteristics it systematically overcomes the technical bottlenecks of traditional PCB wiring
space density and signal transmission quality in the era of AI computing.
2) As a cutting-edge product in the field of high-speed interconnection Intrepid Cable Cartridge is specially designed for
ultra-large-scale AI computing cluster cabinet internal interconnection scenarios integrating three-way floating guidance
technology and customized tolerance compensation capabilities to solve the industry pain points of high-density and high-
21Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
reliability connections and has been successfully applied in the ETH-X computing platform providing efficient stable and
reliable interconnection assurance for the overall system.
3) The 1.6T OSFP DR8 optical module adopts an innovative silicon photonics hybrid integrated architecture equipped with
Marvell low-power DSP chips and independently developed thermal simulation system enabling the product's single-channel rate
to successfully exceed 200Gbps.
4) The 800G OSFP optical module relies on the Company's mature silicon photonics packaging process technology. The
mass-produced products show excellent and stable bit error rate performance achieving an orders-of-magnitude improvement over
industry standards. In 2024 this product successfully passed the test verification of a leading AI computing center customer and
has achieved mass production delivery to multiple international leading customers gaining high recognition from the market and
customers.
5) The 1.6T OSFP ACC active copper cable built based on the Company's self-developed Optmax bare wire technology
provides a high-bandwidth high-reliability high-speed copper interconnection solution for high-end data centers effectively
helping AI/ML (Artificial Intelligence Cluster/Machine Learning Cluster) rapid expansion and fully meeting the data transmission
needs of new AI applications and ultra-large-scale training models.
(3) Automotive Business
Currently the Company's automotive business layout is extensive specifically including automotive harness automotive
connectors automotive smart cockpit intelligent driving assistance intelligent chassis powertrain and other electronic and
electrical products. The Company’s customer base has successfully covered multiple leading domestic and international vehicle
manufacturers. Relying on the Company's strong intelligent manufacturing platform fully leveraging the rapid iteration capability
cost control capability global supply chain advantages and R&D innovation advantages accumulated through long-term deep
cultivation in the consumer electronics and communications and data center fields combined with a deep understanding of the
safety and reliability of automotive-grade products the Company quickly achieved cross-border empowerment for products related
to the automotive industry and product performance and quality have significant competitive advantages in the industry.In September 2024 the Company officially initiated the acquisition of Leoni Group a century-old German automotive
harness manufacturer. Through this acquisition the Company is expected to achieve deep resource sharing complementary
advantages and strategic synergy with Leoni in terms of product development market expansion customer access capacity layout
and material procurement. This will not only help the Company improve its operational efficiency and R&D innovation
capabilities but also quickly shape the Company's differentiated competitive advantages in the global automotive harness field
providing more convenient and efficient vertically integrated services for Chinese vehicle manufacturers going abroad and
traditional overseas vehicle manufacturers further driving the rapid growth of the automotive business scale and market share and
assisting the Company in achieving leapfrog development in the automotive industry.
2. Revenue and Cost
(1) Components of Operating Revenue
In RMB
20242023
% of % of Y/Y%
Amount operating Amount operating change
revenue revenue
Total operating revenue 268794737612.58 100% 231905459829.83 100% 15.91%
By segment
Computer interconnect products
and precision components 9002416983.24 3.35% 7492410071.11 3.23% 20.15%
Automotive interconnect 13757628639.98 5.12% 9252368552.09 3.99% 48.69%
22Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
products and precision
components
Communication interconnect
products and precision 18359940363.70 6.83% 14538256002.45 6.27% 26.29%
components
Consumer electronics 224093602936.54 83.37% 197183318387.02 85.03% 13.65%
Other connectors and other
business 3581148689.12 1.33% 3439106817.16 1.48% 4.13%
By product
Computer interconnect products
and precision components 9002416983.24 3.35% 7492410071.11 3.23% 20.15%
Automotive interconnect
products and precision 13757628639.98 5.12% 9252368552.09 3.99% 48.69%
components
Communication interconnect
products and precision 18359940363.70 6.83% 14538256002.45 6.27% 26.29%
components
Consumer electronics 224093602936.54 83.37% 197183318387.02 85.03% 13.65%
Other connectors and other
business 3581148689.12 1.33% 3439106817.16 1.48% 4.13%
By region
Domestic market 33327752492.71 12.40% 25149439369.07 10.84% 32.52%
Overseas market 235466985119.87 87.60% 206756020460.76 89.16% 13.89%
By sales mode
Direct sales 268794737612.58 100.00% 231905459829.83 100.00% 15.91%
(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%
Operating income Operating cost Gross Change in Change in Change inmargin operating operating gross
revenue cost margin
By segment
Communication
interconnect products
and precision 18359940363.70 15349226245.83 16.40% 26.29% 25.39% 0.60%
components
Consumer electronics 224093602936.54 203710583787.52 9.10% 13.65% 15.55% -1.50%
By product
Communication
interconnect products
and precision 18359940363.70 15349226245.83 16.40% 26.29% 25.39% 0.60%
components
Consumer electronics 224093602936.54 203710583787.52 9.10% 13.65% 15.55% -1.50%
By region
Domestic market 33327752492.71 28062113286.74 15.80% 32.52% 33.95% -0.90%
Overseas market 235466985119.87 212747304693.85 9.65% 13.89% 15.57% -1.31%
By sales mode
Direct sales 268794737612.58 240809417980.59 10.41% 15.91% 17.44% -1.17%
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
23Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) The Company’s Revenue from Sale of Tangible Goods is higher than the Revenue from Labor Service
□Yes □No
Segment Item Unit 2024 2023 Y/Y% change
Sales volume KPCS 324008 339436 -4.55%
Computer interconnect Output KPCS 365146 381866 -4.38%
products and precision
components Inventories KPCS 41137 42430 -3.05%
Sales volume 1000 sets 302174 289181 4.49%
Automotive interconnect Output 1000 sets 329753 315470 4.53%
products and precision
components Inventories 1000 sets 27579 26289 4.91%
Sales volume KPCS 446162 273342 63.22%
Communication Output KPCS 468716 287729 62.90%
interconnect products and
precision components Inventories KPCS 22554 14386 56.77%
Sales volume KPCS 7058477 3985052 77.12%
Output KPCS 7534942 4336890 73.74%
Consumer electronics
Inventories KPCS 476465 351838 35.42%
Sales volume KPCS 394252 358699 9.91%
Other connectors and other Output KPCS 423508 386291 9.63%
business Inventories KPCS 29256 27592 6.03%
Analysis of changes in the relevant data over 30% year on year
□Applicable □N/A
Note 1: The increase in sales volume of communication interconnection products and precision components is mainly
synchronized with the growth in performance.Note 2: The growth in sales volume of consumer electronics is significantly higher than the growth in performance mainly due to
the production and sales of wafer packaging and testing RF devices from the newly acquired company starting in 2024 which
have low unit prices but large quantities.
(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) Operating Cost Structure Segment
Segment
Segment
In RMB
Segment Item 2024 2023 Y/Y%
24Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
% of % of change
Amount operating Amount operating
cost cost
Computer interconnect
products and precision Cost ofsales 7301443716.52 3.03% 5936846692.39 2.90% 22.99%components
Automotive interconnect
products and precision Cost ofsales 11543083690.42 4.79% 7781748026.29 3.80% 48.34%components
Communication
interconnect products and Cost of 15349226245.83 6.37% 12241553918.40 5.97% 25.39%
precision components sales
Consumer electronics Cost ofsales 203710583787.52 84.59% 176289664722.15 85.98% 15.55%
Other connectors and other Cost of
business sales 2905080540.30 1.21% 2791487099.36 1.36% 4.07%
Remark
None.
(6) Change in the Scope of Consolidation during the Reporting Period
□Yes □No
For details please refer to Note IX.2 changes in the scope of consolidation due to other reasons
(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) 211023536407.92
Proportion of aggregate sales revenue from top 5 customers to
annual sales revenue 78.50%
Proportion of aggregate sales revenue from related parties
among top 5 customers to annual sales revenue 0.00%
Particulars of top 5 customers:
No. Name of customer Sales revenue (RMB) % Of annual sales revenue
1 Customer 1 190138937227.47 70.74%
2 Customer 2 6130651383.04 2.28%
3 Customer 3 5704571096.91 2.12%
4 Customer 4 5493570729.72 2.04%
5 Customer 5 3555805970.78 1.32%
Total -- 211023536407.92 78.50%
Other information of major customers
□Applicable □N/A
25Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Major suppliers of the Company
Aggregate purchase amount from top 5 suppliers (RMB) 131243688397.62
Proportion of aggregate purchase amount from top 5 suppliers
to annual purchase cost 62.29%
Proportion of aggregate purchase amount from related parties
among top 5 suppliers to annual purchase cost 0.00%
Particulars of top 5 suppliers
No. Name of supplier Purchase amount (RMB) % of annual purchase cost
1 Supplier 1 117903198859.53 55.97%
2 Supplier 2 7252151068.19 3.44%
3 Supplier 3 2621682623.83 1.24%
4 Supplier 4 2051313378.36 0.97%
5 Supplier 5 1415342467.71 0.67%
Total -- 131243688397.62 62.29%
Other information of major suppliers
□Applicable □N/A
3. Expenses
In RMB
2024 2023 Y/Y%change Reason of material change
Sales
expenses 1059676776.41 889024421.63 19.20%
The growth in personnel compensation and
benefits
Mainly due to the increase in personnel
Administrativ
e expenses 6352284566.88 5542856994.26 14.60%
salaries and welfare benefits and the increase
in depreciation and material consumption
expenses
Financial
expenses -503176648.23 482869327.02 -204.21%
Increase in interest expense and increase in
exchange gains
Mainly due to the increase in personnel
R&D 8555957431.46 8188767532.85 4.48% salaries and welfare benefits and the increaseexpenses in depreciation and material consumption
expenses
Increase in profit changes in deferred income
Income tax 1529694922.93 641829343.18 138.33% tax and the calculation of correspondingexpenses income tax in some countries implementing
Pillar Two starting from 2024
4. R&D Investments
□Applicable □N/A
Description of major Expected effect on the
R&D project Purpose Progress Objectives future development ofCompany
Dual-band JDM This project developed Utilizing the
5G+LTE Tri-band product optimizing a digital fiber repeater established JDM
Digital Fiber Repeater product signal quality RF remote module that development model to
RF Remote Unit and sensitivity can
Pilot stage supports both 4G improve the whole
distribute surplus LTE and 5G NR machine R&D
capacity from the technologies. The capability of base
26Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
existing network to product simultaneously stations thereby
areas with insufficient supports B3/1.8G further elevating
capacity by fiber pull- frequency band and 5G Luxshare's product
away while being NR n78/3.5G structure from filters
easier to control costs. frequency band antennas etc. to the
Enabling the operating effectively and R&D and production
system to run on the economically solving capability of whole
product increasing the problem of base station machines
scalability and unbalanced coverage and in this process
intelligence. between 4G & 5G establishing Luxshare's
NR existing networks own complete industry
including equipment chain and supplier
compatibility software system thus providing
compatibility key more choices for
component customers.breakthroughs and
performance
improvement.This project developed
a 5G Utilizing the
RF remote module established JDM
supporting both 5G NR development model to
technology LTE improve the whole
Dual-band JDM technology and their
machine R&D
product integrating the combination. The
capability of base
industry chain product simultaneously
stations thereby
realizing the docking supports B1/2.1G and
further elevating
New generation 5G between the demand B3/1.8G frequency
Luxshare's product
structure from filters
high-power RF remote and R&D end Pilot stage bands effectively and
module procurement end and economically solving
antennas etc. to the
R&D and production
production end the problem of 4G & capability of whole
improving business 5GNR coverage base station machinesresponse and resource
collaboration. including equipment
and in this process
compatibility software establishing Luxshare's
compatibility key own complete industry
component chain and supplier
breakthroughs and system thus providing
performance more choices for
improvement. customers.Luneburg lens antennas Luneburg lens
have very excellent antenna's ultra-light
performance compared This product adopts a characteristics have
to traditional antennas. cylindrical lens form potential development
In the large-scale with four arrays prospects in fields such
deployment of 5G forming 4 beams in as high-gain radar
networks and the different directions: aerospace aviation8-port Multi-beam horizontal offset -45° - astronomical radio
Luneburg Lens development of futurecommunication Pilot stage 15° +15° +45° observation and otherAntenna technologies like 6G making the antenna's wireless
8-port multi-beam important performance communication and
Luneburg lens antennas indicators meet the information technology
will help improve customer's construction areas. This
network coverage communication market project is expected to
capacity and demands. bring considerable
performance. revenue to theCompany.Integrate high- (1) 1. Successful R&D and
performance Flip-chip edge-to-flip- trial production of
Development of Ultra- millimeter-wave active chip edge spacing customer samples
High-Density devices based on newsemiconductor Completed trial
reduced from 70 QM77498.Packaging Technology production of new microns to 40 microns 2. Satisfied customer
for 5G Mid- and High- materials such asGalliumArsenide products
a reduction of 42%; packaging and testing
Frequency RF Products (2) 0201 component requirements.(GaAs) and Gallium short edge to 01005 3. Surface mount
Nitride (GaN) as well component short edge process yield is greater
as Radio Frequency spacing reduced from than 99.5%.
27Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(RF) and passive 110 microns to 45
devices and silicon- microns a reduction of
based circuit modules 59%;
(3) 01005 component
short edge to 01005
component short edge
spacing reduced from
105 microns to 45
microns a reduction of
57%;
(4) 008004 component
spacing reduced from
78 microns to 45
microns a reduction of
42%.
Developed highly
Solve the previous integrated 5G RF front-
problems of end module L-PAMiD The R&D of the highly
inconvenience in testing technology
carrying and chip completed the research By developing a highly
integrated 5G RF front-
scratching meet the and development of the integrated 5G RF front-
end module L-PAMiD
Development of Highly highly integrated 5G end module L-PAMiD testing solution was
Integrated 5G RF high standardrequirements of 5G RF front-end module testing solution
completed on schedule.Front-end Module L- communication L-PAMiD testing achieve standardization
Currently the main
PAMiD Testing tested products include
Technology technology improve
solution including new and large-scale testing
equipment of highly integrated 5G QM77052 QM77055production efficiency QM77058 and other
and reduce costs and introduction RF front-end module highly integrated 5G
promote technological equipment debugging L-PAMiD chips. RF front-end module
innovation and parameter designprocess improvement L-PAMiD chips.development. product verification
and large-scale testing.Completed the research
and development of the Develop advanced RF
WiFi7 high-frequency chip testing solutions
By redeveloping RF front-end testing to achieve WiFi7 high-
testing equipment and solution including new frequency RF front-end
The development of
chip testing mainly the WiFi7 high-test programs improve equipment frequency RF front-end
Introduction of WiFi7 equipment introduction applied in areas such asPower testing solution wasRF Front-end Testing performance equipment debugging completed on schedule.Technology parameters to meet the parameter design Amplifier/Filter/Switch
needs of WiFi7 high- process improvement covering the testing of
Currently the main
functions in frequency tested products includefrequency RF front-end product verification QM45500/QM45508
testing. and large-scale testing. bands such as WLAN
Completed batch LTE CDMA GSM
etc.testing of product WCDMA EDGE and
QM45500 Bluetooth.Establish a test Development
platform for the highly completed completed
integrated 5G RF front- the research and
Introduction of Highly end module L-PAMiD development of a new
Integrated chips produced by our test head for testing
Achieve stable testing The introduction of
2G/3G/4G/5G Multi- company thereby highly integrated multi-
of highly integrated highly integrated
Mode Modems 5G RF achieving standardized mode 5G RF front-end
2G/3G/4G/5G 2G/3G/4G/5G
Multi-Mode Modems Multi-Mode Modems
Front-end Module L- and large-scale testing modules including test
PAMiD Testing of highly integrated head design and
5G RF front-end 5G RF front-end
2G/3G/4G/5G manufacturing module L-PAMiD module L-PAMiDTechnology Multi-Mode Modems equipment debugging chips testing
5G RF front-end parameter design
module L-PAMiD product verification
chips. and large-scale testing.R&D of Multi-mode Upgrade the Hybrid Completed Develop a research and Achieve
Integrated RF Front- platform to become the equipment debugging development plan for standardization and
end L-PAMiD Module Hybrid-5G testing parameter design multi-mode integrated large-scale testing of
Testing Technology has platform thereby product verification RF front-end L-PAMiD highly integrated
been completed on achieving and large-scale testing module testing 2G/3G/4G/5G
schedule standardization and for the Hybrid platform technology by Multi-Mode Modems
28Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
large-scale testing of upgrade to the Hybrid- upgrading the Hybrid 5G RF front-end
highly integrated 5G testing platform. platform to the Hybrid- module L-PAMiD
2G/3G/4G/5G Multi- 5G testing platform chips.
Mode including the R&D
Modems 5G RF front- assembly of DWG-
end module L-PAMiD 013115 Blade for RF
chips Able to test front-end filter testing
highly integrated technical upgrades and
2G/3G/4G/5G Multi- innovations such as
Mode adding NF testing
Modems 5G RF front- function to the main
end module L-PAMiD hardware Input Box to
chips achieve standardization
and large-scale testing
of multi-mode
integrated RF front-end
L-PAMiD module
chips
The project intends to
develop new energy Realize the
battery pack main transformation of
control harness scientific and
Development of Main products establish technological
Control Harness New product supply relationships achievements. Related
Assembly Product for development Completed with leading domestic products will promote
New Energy Vehicle requirement new energy battery the Company's
Power Battery Pack pack companies and technological
expand the Company's development and bring
product coverage in the economic benefits to
new energy vehicle the Company.industry.Based on the electronic
price tag production
line project which Expand production
utilizes various scale achieve
automated equipment economic and social
successfully developed benefits promote talentcultivation and
Luxshare Electronic during preliminary achievement
Price Tag Intelligent trials integrate the
Manufacturing New product R&D achievements of
transformation and
development Completed intelligent equipment conduct production lineProduction Line and application
Application requirement such as demonstration.Demonstration ACF bondingpressing battery Promote the
welding NFC testing application of project
ultrasonic welding and products boosting the
laser carving into an development of smart
intelligent retail and the Internet
manufacturing of Things industry.production line.Automotive Automotive MCU
microcontroller unit is Achieve precise control microcontroller units
a core component of From 2023 to 2024 and management of the will bring significantmodern automobiles. completed the trial operation of various market opportunities
Automotive Its development aims automotive systems and technical
Microcontroller Unit to improve the overall
production and testing (such as powertrain innovation momentum
Product R&D performance safety
of the project and
simultaneously chassis body etc.) and to the Company andand intelligence level organized relevant ensure vehicle active will bring new micro-of vehicles while
meeting environmental technical data.safety (such as ESP control electronic
ABS) and passive technology market
protection and cost safety functions. opportunities to the
control requirements. Company.The most critical Market-oriented All product indicators With the optimization
Research on Smart aspects of smart demand-driven by met the requirements of smart wearable
Interactive Healthy glasses are wearing customers led by the and the product was experience and
Smart Audio Glasses experience and R&D department and successfully mass- intelligent interaction
intelligent interaction. implemented with the produced and launched the future research of
29Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Due to prolonged wear cooperation of for sale. At the same this project will
wearing comfort and engineering units time the complete set effectively solve the
intelligent interaction production units of drawings was pain points of similar
are particularly quality assurance units transferred to the data electronic products
important. In this procurement units center for distribution currently providing
context the mold and tool units serving as research positive design and
development of this and other departments. reference for concept references for
project's product based The project is subsequent project subsequent project
on the research of coordinated by the development. development.smart interactive factory manager and a
healthy smart audio team consisting of the
glasses caters to the main R&D engineer
needs of global market production supervisor
consumers. technical elites and
quality personnel is
appointed for the
project.This project aims to Solved the composite
design and implement ESD and RE problems
a comprehensive occurring in the signal Enhance product
A High-Fidelity Anti- solution to address the transmission of over- competitiveness
Interference Over-Ear ESD and RE issues Trial production/Mass ear Bluetooth reduce material and
Bluetooth Headphone present in the signal production headphones. labor costs and bring
transmission process of Significantly improved greater benefits to the
over-ear Bluetooth the EMC performance Company.headphones. of the project.Improving modeling
efficiency can shorten
product development By using the
cycles by over 30% technology and
reduce labor costs solutions developed inResearch on enhancing this project the current Enhance product
the modeling efficiency promote thedevelopment of Trial production/Mass simulation efficiency is
competitiveness
of structural significantly improved reduce material and
components in CAE intelligent production labor costs and bring
simulation manufacturing and
not only achieving
align with the strategic substantial cost savings
greater benefits to the
direction of "Digital but also being able to
Company.Design and respond more quickly
Manufacturing" in to customer needs."Made in China 2025".To meet the demand
for efficient heat
dissipation in modern
electronic products it
is urgent to develop
new heat dissipation
technologies break Designed a reinforcedworking fluid phase Mainly applied inthrough the defects of
heat pipes and vapor change composite 3D
fields such as 5G
vapor chamber which electronic technologyR&D of Reinforced chambers improve can enhance the and artificialWorking Fluid Phase heat dissipation
Change Composite 3D efficiency optimize Completed working fluid return
intelligence equipment
speed and evaporation meeting the heatVapor Chamber structural design
enhance temperature efficiency thereby
dissipation
uniformity ensure increasing heat transfer
requirements in high
stable operation of speed and improving
heat flux density
electronic components heat dissipation effect.environments.and contribute to the
performance
enhancement and
miniaturization of
electronic products.R&D of Wind-Liquid Heat exchange device Such products provide Economies of scale in
Heat Exchange High- and wind-liquid efficient green and procurement and
Efficiency Heat cooling heat dissipation Completed reliable liquid cooling professional division of
Dissipation Equipment equipment including systems for electronic labor continuouslythe heat exchange equipment in improve the
30Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
device. communication fields Company's cost control
such as data centers. capabilities.Continuous
improvement of
production processes
increasing automation
and gradual
improvement in
material application
further build the soft
power of the
Company's cost
control. The
Company's cost
advantage can help
customers reduce
product costs and
enhance the price
competitiveness of end
products.to provide independent The Company
cooling for each cooperates closely with
immersion cabinet core customers can
more directly and understand customer
achieve a more needs early cooperate
uniform and efficient with customers to
cooling effect a liquid- quickly develop and
to-liquid exchange launch products and
cabinet-type chilling meet the rapid update
distribution unit (CDU) requirements of
R&D of Liquid-Liquid Chilling distributionunit and chilling Completed was developed. It electronic equipmentExchange Chilling Unit control cabinet. includes pumps fluid thermal managementconnectors heat products. The
exchangers three-way Company's ability to
valves check valves solve problems
filters flow meters encountered in the
temperature and application of heat
pressure sensors dissipation products is
control devices a comprehensive
monitoring devices manifestation of the
power supplies Company's R&D
switches etc. advantages.The Company
cooperates closely with
core customers can
The innovative special understand customer
design of the TANK needs early cooperate
and CPU flow shroud with customers to
the efficient forced quickly develop and
convection heat launch products andmeet the rapid update
R&D of Gravity- transfer mode and the requirements of
Enhanced Heat Immersion Liquid complete machine
Dissipation Immersion Cooling Cabinet Completed liquid immersion break
electronic equipment
Liquid Cooling Cabinet through the technical
thermal management
bottleneck of current products. The
single-phase oil Company's ability to
immersion cooling solve problems
easily achieving encountered in the
kilowatt-level heat application of heat
dissipation. dissipation products isa comprehensive
manifestation of the
Company's R&D
advantages.R&D of Integrated By designing the The Company
Water Cooler AWater Cooler Completed arrangement of the cooperates closely withwater block the space core customers can
31Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
in the thickness understand customer
direction of the radiator needs early cooperate
fins is fully utilized to with customers to
arrange multiple quickly develop and
chambers reducing the launch products and
overall thickness of the meet the rapid update
water block and thus requirements of
reducing the overall electronic equipment
thickness of the water thermal management
cooler facilitating the products. The
installation of the water Company's ability to
cooler in a narrow solve problems
space and expanding encountered in the
the application range of application of heat
the water cooler. dissipation products is
a comprehensive
manifestation of the
Company's R&D
advantages.The Company
cooperates closely with
core customers can
understand customer
needs early cooperate
with customers to
quickly develop and
This type of product launch products and
provides technical meet the rapid update
R&D of Independent A heatsink clasp design for heatsink requirements of
Snap-on Floating structure shielding Completed clasp structure and electronic equipmentOptical Module Liquid cage component and related component thermal management
Cooling Device optical module device devices for optical products. The
modules in data Company's ability to
centers. solve problems
encountered in the
application of heat
dissipation products is
a comprehensive
manifestation of the
Company's R&D
advantages.The Company
cooperates closely with
core customers can
understand customer
needs early cooperate
with customers to
quickly develop and
This type of product launch products and
R&D of Electronic provides liquid cold
meet the rapid update
requirements of
Equipment Liquid Cold A heat dissipation plate heat dissipation
Plate Heat Dissipation device and electronic Completed technology for
electronic equipment
Technology equipment electronic equipment in
thermal management
communication fields products. The
such as data centers. Company's ability tosolve problems
encountered in the
application of heat
dissipation products is
a comprehensive
manifestation of the
Company's R&D
advantages.R&D of Optical A heat dissipation Such products provide The Company
Module Liquid Cooling device and electronic Completed efficient green and cooperates closely with
System equipment reliable liquid cooling core customers cansystems for electronic understand customer
32Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
equipment in needs early cooperate
communication fields with customers to
such as data centers. quickly develop and
launch products and
meet the rapid update
requirements of
electronic equipment
thermal management
products. The
Company's ability to
solve problems
encountered in the
application of heat
dissipation products is
a comprehensive
manifestation of the
Company's R&D
advantages.Intelligent
manufacturing will
fundamentally change
the Company's
production methods
business models and
market
According to customer competitiveness.demand establish a Successful companies
completely new 3C in the future will be
intelligent those that can quickly
manufacturing adapt to intelligent
production line to 1. Production OEE transformation and
improve the overall increased by 10% utilize data AI and
capacity and efficiency 2. Increased production automation technology
of the original line operational time by to optimize operations
reduce the workload of 40% innovate products and
Factory Ultra production technicians 3. Technical staff reshape the supply
Production Intelligent while also reducing the Completed reduced by 50% chain. Conversely
Manufacturing training time for 4. Technician training enterprises that fail to
production technicians time reduced by 60% keep up with the trend
allowing technicians to 5. OP operators may face the risk of
quickly be competent reduced by 70% inefficiency cost
for their current job 6. Production yield disadvantage or even
further reducing the increased by 2-10% being eliminated by the
use of production market. Therefore
operators and at the enterprises must
same time improving formulate a clear
the yield rate of the intelligent
original capacity. manufacturing strategy
and promote digital
transformation in
stages to gain an
advantageous position
in the future
manufacturing
landscape.With the increase in 1. Trace data station Through the full
factory production blockage application of OEE 3.0
scale to further 2. Product cleaning enterprise managers
improve production control can formulate more
efficiency equipment 3. Product plasma reasonable production
OEE 3.0+ Software utilization reduce Completed cleaning control plans and developmentDevelopment waste and production 4. Product ORT strategies based on
costs and solve material inquiry these data. The factory
process bottlenecks; 5. ORT automatic can efficiently and
reduce equipment machine lock stably meet increasing
failures and 6. Rework station production demands
maintenance costs control maintain competitive
33Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
strengthen equipment 7. OEE dashboard advantage and achieve
management and display sustainable
extend equipment development. At the
lifespan collect real- same time improve
time data and establish employee productivity
a workshop monitoring and production line
and management scalability. Stand out in
system; provide the continuously
objective and scientific developing automated
decision-making basis 3C industry market and
for enterprise planning. provide high-quality
products and services
to customers.
1. According to 1. Through
customer requirements technological
this project mainly innovation and
applies different colors sustainable
to specific areas on the development practices
surface of the same significant
workpiece through two achievements have
oxidations and dyeing been made in
which is a new environmental
technology for anodic protection energy
oxidation. Through the efficiency intelligence
comparison of two 1. Cutting-edge and economic benefitscolors it can better
reflect the high-end industry technologies
becoming an industry
and unique appearance new breakthrough
benchmark;
improve customer 2. Open up premiumof the product; space and emerging
Process Development 2. In the field of CNC satisfaction markets through green
of Full Synthetic (Computer Numerical 2. Green andCompleted environmentally innovation.Cutting Fluid and Two- Control) machining 3. Innovation
Color Anodizing using full synthetic friendly CNCprocessing achievements havecutting fluid and environment gone beyond singlebuilding a green 3. Reduce the risk of technologicalfactory are key poor aluminum improvement buildingmeasures to promote oxidation and corrosion a new industrialthe sustainable paradigm of
development of the environmental
manufacturing protection energy
industry. It can not efficiency and brand.only reduce In the future through
environmental continuous innovation
pollution and improve AI intelligence and
processing efficiency other cutting-edge
but also reduce technologies it is
operating costs and expected to further
enhance corporate break through industry
competitiveness. limits.
1. Greatly reduce the
use of nickel- 1. Significantly
containing sealing reduced the discharge
1. Meet the
agents and the of heavy metal-
requirements of
government and
discharge of nickel- containing wastewater customers for green
containing wastewater saved wastewater development.R&D and Introduction thereby reducing the
treatment costs and 2. Master leading
of HMFAnti- cost of wastewater
created green
treatment production lines.process technology
Fingerprint Nickel- Completed 2. Effectively solved reserves among peers
Free Sealing 2. Achieve the anti- enhancing the
Technology fingerprint effect on the
the risk of Company's
appearance that could oxidation/discoloration
not be achieved with caused by hand sweat
competitiveness.
3. Improved the
nickel-containing adhering to the product
sealing before greatly when people touch it.innovation capabilities
of the Company's
improving the pass rate 3. Color difference and
of product reliability reliability test results
relevant technical
personnel.testing are OK.
34Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Improve production This project focuses on
efficiency: Utilize the the development of
advantage of rapid titanium alloy watch
prototyping with 3D case 3D printing
printing technology to technology and CNC
significantly shorten machining aiming to
the production cycle of achieve the following
titanium alloy watch specific goals through Technical leading
cases while reducing technological advantage: The
the cumbersome innovation and process combination of
processes and long optimization: titanium alloy 3D
machining times in 1. Develop dedicated printing technology
traditional processing titanium alloy 3D and CNC machining
thereby improving printing process: represents cutting-edge
overall production Research and technology in the field
efficiency. determine the of high-end
Reduce manufacturing characteristics of manufacturing.costs: Traditional titanium alloy powder Through the
titanium alloy material suitable for implementation of this
processing has low watch case project the Company
material utilization and manufacturing will be the first in the
serious waste. 3D including particle size industry to master this
printing technology can distribution oxygen advanced technology
achieve near-net shape content fluidity etc. forming a unique
forming minimizing to ensure the stability technical barrier. This
material waste and thus of the printing process will not only enhance
reducing production and forming quality. the Company's
costs. In addition 2. Explore optimized competitiveness in the
combining CNC 3D printing high-end watch
machining to finish 3D parameters: such as manufacturing field but
printed parts can laser power scanning also lay a solid
Development of further improve the speed layer thickness technical foundation
TitaniumAlloy Watch precision and quality of powder spreading for the Company's
Case 3D Printing the parts avoiding cost Completed thickness etc. and expansion in other
Technology and CNC increases due to develop an efficient high-end consumer
Machining excessive processing. and high-precision 3D goods fields.Increase design printing process Continuous innovation
freedom: 3D printing suitable for titanium capability: The
technology is not alloy watch cases successful
limited by traditional achieving precise implementation of the
processing techniques forming of complex project will stimulate
and can easily structures. internal innovation
manufacture complex 3. Research the vitality within the
structures and formation mechanism Company encouraging
personalized designs. of possible defects the R&D team to
This will provide more during the 3D printing continuously explore
creative space for process (such as new materials
watch designers porosity cracks processes and
enabling them to deformation etc.) and technical applications.design more creative propose corresponding This continuous
and unique titanium control and innovation capability
alloy watch cases optimization methods will help the Company
meeting the needs of to ensure the internal maintain a leading
high-end consumers for quality of printed parts. position in future
personalized and 4. Improve CNC technological
customized products. machining process: competition attract
Ensure product quality: According to the more high-end talents
CNC machining has characteristics of 3D to join and further
significant advantages printed titanium alloy enhance the Company's
in terms of precision cases develop efficient R&D strength.and surface quality. By CNC machining
CNC finishing the 3D strategies including
printed titanium alloy tool selection cutting
case the dimensional parameter
accuracy surface optimization and
roughness and other processing path
quality indicators of planning to ensure the
35Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
the watch case can efficiency and stability
meet the strict of the machining
requirements of high- process.end watches
improving product
reliability and
durability.Promote industry
development: The
successful
implementation of this
project will provide a
new titanium alloy
watch case
manufacturing solution
for the high-end watch
manufacturing
industry and is
expected to lead
industry technology
changes promote the
innovation and
development of related
technologies improve
the overall technical
level and international
competitiveness of
China's high-end watch
manufacturing
industry and promote
the entire industry
towards high-end
intelligent and
personalized
development.The IPI fixture is a
fixed fixture in the
mobile phone screen
module production
process. It is involved
in processes such as 1. The IPI fixture is
frame clamping and composed of two parts
fixing dispensing the cover plate and the
positioning panel + base. By optimizing the
frame assembly structure of the fixture
baking pressure cover plate rapid
holding etc. The heating of the product
fixture is divided into temperature and curing The IPI Fixture Hollow
two parts: cover plate of the product are Speed OptimizationSolution has high
R&D of IPI Fixture and base. The existing achieved.Hollow Speed mobile phone panel Completed 2. Study the impact of
technical advancement
and has been applied to
Optimization Solution processing technology different temperaturecurrently has the zones of the baking multiple models in
following practical oven on product BU5 preparing to enter
problems. In the temperature and the mass production
process of using the flatness shorten stage.existing fixture due to product heating time
the presence of the and increase output.cover plate the heating 3. Optimize baking line
rate of the product in speed improve fixture
the fixture is slow and turnaround time and
the number of fixtures save costs.input in the production
line is large which
reduces the overall
production efficiency
poor production
36Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
continuity and thus
increasing
development costs.Aiming at the technical
defects such as low
heating efficiency of
the above fixtures
causing poor
appearance and
function combined
with actual process
requirements further
research and
development of this
process is of great
significance for
improving production
yield.In the mobile phone
screen module
production process the
frame needs to be
assembled and attached
to the phone's panel.The outer ring structure
of the frame generally
uses a structure formed
by traditional plastic
injection molding and
the frame is attached
after injection molding.The injection molded
frame due to structural 1. Develop bonding
limitations generally technology for
needs to sacrifice the composite materials:
area of the display used for the bonding of
screen LSR and substrate
preventing the product allowing for quick
from achieving the removal and recycling
maximum screen-to- of the substrate after The LSR Glass film
body ratio. and due to LSR is recycled. forming process2. Develop materials developed in this
R&D of LSR Glass the demand forinjection molding a Completed usable for bonding project possesses highFilm Forming Process large number of molds LSR and substrate: technical advancement
and molding equipment develop materials that and has been
are required can be attached to successfully applied to
consuming a large glass. The bonding the production line.amount of plastic daily strength between the
resulting in expensive material and LSR &
costs. glass must meet
The plastic consumed production
daily also causes a requirements and there
certain negative impact should be no severe
on the global residue after removal.environment. For this
project LSR (Liquid
Silicone Rubber)
combined with
LIPO (Low-Pressure
Injection Molding) was
developed to save high
mold costs and the
material used is more
environmentally
friendly than plastic.For LSR usage it
needs to be formed on
37Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
a glass substrate and
also needs to achieve
the requirement of
separating LSR from
glass for recycling.Therefore a Primer
combined with Solvent
was developed to
achieve this functional
requirement but the
cost of Primer &
Solvent is expensive
and the cyclic lifespan
of Solvent is low
(needs to be updated
and replaced every 3
days).As the number of
production lines
introduced due to
future project needs
continues to increase
the required costs are
growing daily. Against
the backdrop of this
production usage
demand further
development of a
cheaper method for
bonding LSR and glass
is needed to replace the
existing Primer &
Solvent.Through the
development of the test
software platform
achieve a modular
architecture for test
software and wide
compatibility with Achieve a simple and
various test hardware easy-to-use human-
Submit relevant design equipment. Meanwhile machine interface
R&D of Test Software Develop new processimprove production materials to customers it has good scalability
improve the work
Platform (Magic Box) for rationality and can be customized efficiency of operatorsefficiency evaluation and functionally and reduce labor costs.extended according to Improve the
customer needs. Add development efficiency
new test modules of teams like Ah Jian's.algorithms and tools to
adapt to constantly
changing test needs
and technological
developments.Innovatively adopt
built-in signal
enhancement antenna Promoted our
and expansion system company's progress in5G router technology
R&D of Portable Develop product Submit relevant design 360° scanner realizing
Outdoor Millimeter improve production materials to customers the advantages of real-
and also brought
Wave 5G Router efficiency for rationality time automatic 360-
greater market space
evaluation degree search for the and development
best signal and quick opportunities for our
tracking and company in the router
positioning of the best industry.signal.R&D of Processing Develop new process Submit relevant design Develop an automotive Develop more efficient
Device for Automotive improve production materials to customers harness production and and precise automotive
38Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Harness Production efficiency for rationality processing device with harness production and
evaluation independent processing devices
intellectual property which will help
rights improve the improve production
production efficiency efficiency and quality
and processing quality reduce the defective
of automotive rate and meet the large
harnesses through market demand for
technological automotive harnesses.innovation and process
optimization reduce
production costs and
contribute to the
sustainable
development of the
automotive industry.Develop a high-safety
new energy vehicle
harness connection
device improve the
electrical performance
mechanical
performance and heat
R&D of High-Safety Submit relevant design resistance of the Improve the safety
New Energy Vehicle Develop new processimprove production materials to customers
connection device
Harness Connection for rationality through technological
performance and
Device efficiency evaluation innovation and material
market competitiveness
optimization reduce of new energy vehicles.the failure rate and
safety hazards and
provide strong support
for the sustainable
development of the
new energy vehicle
industry.By developing new
harness wiring and
management devices Realize automated
R&D of Automotive Submit relevant design improve the wiringDevelop new process wiring of automotiveHarness Cable Cable improve production materials to customers
efficiency and
Configuration and for rationality management level of
harnesses improve
Management Device efficiency evaluation automotive harnesses
production efficiency
thereby enhancing the with broad market
reliability and safety of prospects.automotive electrical
systems.By developing a new
type of whole vehicle
low-voltage harness
system improve the
stability and safety of
automotive circuits;
optimize the design of
automotive low- Meet the increasinghigh-performance
R&D of Whole Vehicle Develop new process Submit relevant design
voltage harnesses
reduce harness weight demands of modern
Low-Voltage Harness improve production materials to customers and volume and automobiles on
System efficiency for rationality improve automotive electrical systems andevaluation space utilization; improve technical level
reduce electromagnetic and market
interference of competitiveness.automotive low-
voltage harnesses
improve automotive
driving safety; extend
the service life of
automotive low-
39Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
voltage harnesses and
reduce automotive
maintenance costs.Develop an efficient
R&D of New Energy Develop new process Submit relevant design intelligent new energymaterials to customers vehicle harness Improve productionVehicle Harness improve production for rationality detection device to efficiency reduce after-Detection Device efficiency evaluation achieve high-precision sales maintenance costs
harness detection
By optimizing the
design and connection
method of the harness
the anti-interference
ability and durability of
the harness can be
improved ensuring the
1. Lightweight normal operation of
R&D of Domain Develop new process 2. High efficiency 3. automotive electronic
Control Special improve production R&D Stage Cost optimization 4. systems in harsh
Transmission Harness efficiency Reliability environments. In
improvement addition the domaincontroller also has fault
diagnosis and self-
protection functions
which can timely
detect and deal with
harness faults
improving the overall
safety of the vehicle.Aiming at the common
technical pain points of
high-voltage harnesses R&D of bend-resistant
in new energy vehicles high-voltage
such as susceptibility connecting harness for
to bending damage new energy vehicles to
insufficient interface address the
stability and poor shortcomings in
maintenance existing technology.convenience This product improves
innovatively developed high-voltage stable
a new type of bend- connection and non-
resistant high-voltage destructive
harness. Integrating disassembly and
modular snap maintenance through a
mechanism linkage modular snap
locking components mechanism and linkage
R&D of Bend- Develop new process and threaded docking
threaded docking
Resistant High-Voltage system achieving fast system innovatively
Connecting Harness for improve production Testingefficiency and precise assembly
designed split wire
New Energy Vehicles through standardized structure and woven
interfaces multi- protective layer
dimensional balancing bend
mechanical locking resistance and signal
ensures high-voltage integrity integrated
transmission stability reinforced heat
and threaded dissipation and
connection structure pressure-resistant
supports non- insulation system
destructive adapting to complex
disassembly and working conditions
maintenance. Solved significantly improving
difficult problems such reliability durability
as the contradiction and assembly
between the flexibility efficiency. Will become
and pressure resistance the mainstream in the
of traditional future market.harnesses easy
40Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
loosening in vibration
scenarios and high
maintenance costs
significantly improving
connection reliability
durability and
maintenance.Solved the problems of
low space utilization
and vulnerability of the
shielding layer in new
energy vehicle high-
voltage harnesses and
proposed flexible
harness and stacked
snap connection
technology. Composite
metal/conductive film
shielding layer
combined with flexible
outer sheath achieving
high shielding and Industry data shows
flexibility. Bracket that the global new
self-locking buckle and energy vehicle high-voltage harness market
R&D of Soft Shielded buffer interface
High-Voltage New Develop new process integrated harness
size will exceed RMB
Energy Vehicle improve production Testing arranged in a circular
100 billion in 2025
Harness efficiency pattern non-
and the proportion of
penetrating ferrule and flexible shielded
rotating support ring products is expected to
adapt to multi-angle exceed 40% becoming
installation avoiding the mainstream
shielding damage. technical route.Vibration reduction
design disperses
vibration stress
ensures signal stability
in extreme working
conditions effectively
solves electromagnetic
interference and wire
core fatigue and
provides a compact and
reliable fixing solution
for high-voltage
systems.Aiming at the problems Against the backdrop
that the part of the of continuously rising
harness connected to new energy vehicle
the sensor connector is sales at home and
easily twisted under abroad automotive
stress and damaged manufacturers are
resulting in exposed constantly raising
wires; the complex technical requirements
structure of the car for components and
R&D of Automotive Develop new process bottom makes the the market demand for
Wheel Speed Sensor improve production Testing installation and fixing harness assemblies that
Harness Assembly efficiency of the harness difficult are adaptable durable
etc. an automotive and intelligent is
wheel speed sensor particularly prominent.harness assembly has Under the development
been developed. It can trend of integrated
flexibly adjust the wire three-electric systems
installation direction and centralized domain
according to needs and controllers in new
quickly lock the wire energy vehicles the
state after determining market demand and
41Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
the direction. The development space for
operation is simple and wheel speed sensors as
flexible and when used core sensing units for
with sleeves it can vehicle dynamic
create a stable signal control will also
transmission further expand.environment for the
wires.Aiming at the problems
that new energy vehicle
wheel speed harnesses In the current market
are prone to winding environment domestic
and falling off and the enterprises are
protective layer is accelerating the
prone to aging and process of domestic
cracking during long- substitution with
term use a high- technological
stability protective innovation and cost
automotive wheel advantages. Through
speed harness has been vertical integrated
developed. It uses layout and intelligent
composite sleeve production line
protection for internal upgrades enterpriseshave achieved
R&D of High-Stability Develop new process and external protection significant
Protective Automotive improve production Testing of the harness and
Wheel Speed Harness efficiency combines multiple
breakthroughs in key
harness slots to fix technical fields such as
multiple strands of high-voltage
wires while also connectors and high-
adding inspection speed signal
information slots transmission. With the
effectively solving continuous increase in
problems such as easy the penetration rate of
aging and cracking of new energy vehicles
single-layer PVC the market demand for
sleeves inconvenience wheel speed harnesses
in fixing multiple will continue to grow
harnesses poor becoming a high-
protection effect growth track in the
difficulty in subsequent automotive parts
inspection and low industry.maintenance efficiency.Through innovative
technologies such as
high-precision fall
detection algorithms
regional position
sensing technology
and integrated
wearable system
design developed a
R&D of Wearable Develop new process wearable position
Device Application in improve production sensing fall detection
Improve company
Position Sensing Fall efficiency and product Trial Production system based on
technological
Detection System performance ZigBee wireless sensor
innovation and product
network to monitor competitiveness.elderly fall events in
real-time and provide
accurate location
information shortening
rescue response time
possessing significant
technological
innovation and social
application value.R&D of Wearable Develop new process Through non-invasive Improve company
Non-invasive improve production Trial Production flexible high- technological
42Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Adjustable efficiency and product sensitivity EM sensors innovation and product
Electromagnetic Multi- performance solves the pain points competitiveness.sensing Blood Glucose of existing blood
Monitoring System glucose monitoring
technology achieving
continuous high-
precision blood glucose
monitoring possessing
significant
technological
innovation and market
application potential.This project combines
the pressure sensor of a
smartwatch to integrate
Henry's Law to
estimate gas solubility
in liquid and
R&D of Indirect supplements with
Detection of Body optical technology to
Nitrogen Content in Develop new process measure blood oxygen Improve company
Smart Wearable improve product Trial Production content calculating technological
Devices Combined performance blood oxygen innovation and product
with Integrated Diving saturation (SpO2) by competitiveness.Plan Planning analyzing theabsorption and
scattering of light in
blood so as to
relatively objectively
detect the total amount
of nitrogen in the user's
body underwater.The project designed a
wearable respiratory
sound acquisition
module embedding the
wireless respiratory
sound acquisition
module into the
R&D of Wearable wearable mechanical
Respiratory Sound Develop new process design which can Improve company
Monitoring System for improve product Trial Production acquire good technological
Real-time Wheeze performance respiratory sound innovation and product
Detection signal quality. After competitiveness.being acquired
amplified and
digitized by this
module the respiratory
sound is wirelessly
transmitted to the host
system.Provide an
unprecedented anti-
aging solution.Through the
combination of beauty
R&D of Brand New essence and activating
Generation RF Radio Develop new process device (beauty device) Improve company
Frequency Wave Skin improve product Has entered the mass it achieves a beauty technological
Purifying Beauty performance production stage. enhancement effect. innovation and product
Device The product's features competitiveness.are a beauty device
with two modes and a
dual-function beauty
essence providing
elasticity and
transparency to the
43Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
skin.Developed a new type
of smart wearable ring
and its manufacturing
technology
incorporating
components such as
PPG heart rate sensor
NFC wireless charging
R&D of Brand New BLE Bluetooth main
Generation Titanium Develop new process
Improve company
improve product Has entered the mass
control and battery
Alloy Vacuum Potting production stage. within a very small
technological
performance volume using glue to innovation and productSmart Ring cover components competitiveness.using the industry's
lightest titanium alloy
material innovatively
achieving product
miniaturization
placing it in a leading
position among similar
products.This project is a parent-
child intercom smart
cycling helmet that
integrates classic
Bluetooth + BLE +
2.4GHz functions
suitable for daily
commuting or cycling
with children which
Smart Revitalizing Eye can solve the problemDevelop new process of poor communication Improve companyBeauty Device Based
on EMS Microcurrent improve product
Has entered the mass caused by technological
Technology performance
production stage. environmental noise innovation and product
and cycling wind noise competitiveness.ensuring normal
communication
function during
cycling. Can ensure
close-range
communication
function in some
emergency situations
during cycling.This project is based on
the R&D of underlying
CV technology
integrating industrial
AI vision technology
with deep learning
intelligent industrial
vision platform
software for fusion
R&D of Ultra-
Precision Flex Develop new products
learning and training
applied to quality Improve company
Appearance Inspection improve production Trial Production inspection in intelligent product
AVI Equipment efficiency manufacturing solving competitiveness
problems such as
complex defect
localization detection
and classification and
can adapt to various
complex application
scenarios with strong
compatibility. As the
AI software continues
44Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
to run the defect
detection rate will
continuously improve.This project has
developed a total of 3
models of high-
frequency flexible RF
transmission cables
with a thickness of less
than 300um and a
length of about
180mm which have
the advantages of
lightweight thin
thickness bendability
and high flexibility
and can withstand 1
million dynamic bends
without damaging the
wire and ensuring
transmission
performance making
R&D of Two-in-One Develop new products functional electrical
RF Flexible improve production Trial Production connection possible in
Improve company
Transmission Cable efficiency a very small space and
product
allowing free competitiveness
movement or folding
within a limited
distance to obtain 3D
components. This
transmission cable
consists of two parts:
the bending area and
the non-bending area
(static area). The
bending area is located
inside the rotating shaft
of the folding device
while the static area is
located in the non-
rotating shaft part
(including the main
board battery
compartment and
screen area).Used for testing the
differential high-speed
transmission signal
(Insertion High-density micro-
R&D of Micro Camera loss/Return loss/TDR) pitch GSSGSSGSSG
Flex Differential High- Develop new products of micro camera circuit probe is specially
Speed Signal Test improve production Trial Production modules; The designed and
Probe efficiency GSSGSSGSSG developed for productsProbe can test 3 pairs with 3 differential
of differential signals pairs.simultaneously
resulting in high testing
efficiency.This project mainly
uses LTCC material for
UWB design. In
R&D of a Surface- Develop new products conventional material Improve company
Mount Miniaturized improve production Trial Production design the size of a product
UWBAntenna Design efficiency UWB antenna is competitiveness
generally around
8mm*10mm. However
using LTCC product
45Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
design this solution
can be reduced to
3mm*3mm shrinking
the antenna size to 1/8-
1/10 greatly reducing
the antenna design size.Meanwhile using
LTCC for standardized
design can greatly
improve the
convenience of use in
terminal products.From an industry
perspective it can
achieve standardized
design of UWB
antennas.This project involves
the internal wires for
the left and right ears
of VR headsets
including two signal
transmission lines and
one power transmission
line a total of three
types of wires. One
power transmission
line consists of 10
electronic wires welded
to curved connectors at
both ends; the two
signal transmission
R&D of High-Standard lines are composed of
VR Transmission Develop new productsimprove production Trial Production 12 electronic wires and
Improve company
Harness Manufacturing efficiency 2 coaxial cables
product
Process welded to Flex and competitiveness
Spine assembly at one
end and welded to
curved connectors at
the other end. Through
LCP molding process
black glue covering
solder joints process
and silicone surface
roughening/plasma
treatment process
downstream
application problems
are solved and the
overall yield of harness
assembly is improved.The main content of
this R&D project is the
application
development of high
vibration sense ultra-
precision sandwich
R&D of Ultra-High motor combined with
Thermal Conductivity Develop new products Improve company
Glue Application improve production Trial Production
ultra-high thermal
efficiency conductivity glue
product
Process overcoming the competitiveness
problem of high motor
heat generation and
inability to effectively
dissipate heat
improving product
yield and performance
46Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
and reducing the risk of
reliability test failure.The goal of this R&D
project is to realize the
product development
of high vibration sense
ultra-precision
sandwich motor
combined with the use
of ultra-high thermal
conductivity glue to
contribute to the
research application
and promotion of new
glue.The main content of
this R&D project is the
development design
and production of high
vibration sense ultra-
precision sandwich
structure linear motor
improving the previous
generation product's
weak vibration sense
slow start and
dragging sensation. In
terms of start-stop
R&D of High Vibration speed the new
Sense Ultra-Precision Develop new products generation sandwich Improve company
Sandwich Structure improve production Trial Production vibration sense motor product
Linear Motor efficiency uses NdFeB magnets. competitivenessThanks to the strong
magnetic field strength
and special magnetic
circuit design the core
driving force of the
motor is significantly
enhanced allowing for
ultra-fast start and stop.The vibration sense
when typing can
achieve an immediate
response to touch
vibrating where you
touch.This project is based on
the standard machine
evolution of camera
modules - Hexahedral
Inspection AOI
Equipment. The
equipment integrates
product scanning
R&D of Standard function appearance
Machine Evolution - Develop new products Has entered the mass defect detection Improve company
Hexahedral Inspection improve production production stage. function automatic product
AOI Equipment efficiency loading and unloading competitivenessfunction automatic
variable pitch function
finished product
sorting function MES
transmission function
and data statistics
function achieving
state monitoring of the
entire product
47Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
inspection process.This equipment
embodies the design
concept of automation
integration
modularization and
intelligent production
in modern equipment
manufacturing which
can largely replace
manual labor achieve
high efficiency high
precision and stable
and reliable operation.Compared with smart
trackers and similar
R&D of Smart Tracker Develop new products Has entered the mass intelligent Improve companyAssembly Automation improve production manufacturing product
Equipment efficiency production stage. technologies in other competitiveness
fields at home and
abroad our product can
achieve automatic
loading and unloading
by AGV requiring no
manual assistance for
processing and
assembly production
throughout the process.The main advantages
are high level of
product automation and
high level of
processing
visualization.Five-axis image
stabilization
technology is an
important
technological
breakthrough in high-
end camera modules
with high technical
barriers. Developing
this project can not
only fill the market gap
and demonstrate the
Company's leadership
in the fields of
R&D of Large-Angle precision machinery
Optical Five-Axis Develop new products and optical technology Improve company
Image Stabilization improve production Has entered the massproduction stage. but also further product(Module Tilt) Camera efficiency improve the level of competitiveness
Module manufacturing
automation and ensure
product quality and
consistency. In
addition this
technology can support
a larger compensation
angle providing users
with a more stable
shooting experience
thereby meeting the
needs of the high-end
consumer market and
promoting industry
technological
48Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
innovation.Sensor
Shift OIS technology is
a key component for
high-end models
which has higher
technical barriers.Developing this project
can not only showcase
the Company's
technical strength but
also improve the
automation level of the
R&D of High- production side.Precision Optical and Develop new products However the difficulty
Sensor Image improve production Has entered the mass of Sensor
Improve company
Stabilization (Sensor efficiency production stage. Shift OIS design and
product
Shift) Camera Motor production is higher
competitiveness
than that of traditional
OIS and currently
there are few
manufacturers with this
production capability.If the project is
successfully developed
it will establish a
technical leading
advantage in the
market and enhance
product
competitiveness.The demand for
photographic quality
and equipment
requirements for
current portable
communication devices
are increasing day by
day and will
eventually replace the
dependence of general
consumers on cameras
shifting to portable
R&D of Stepless communication
Variable Aperture for Develop new products devices. Currently
High-Precision Mobile improve production Has entered the mass aperture control
Improve company
product
Terminal Camera efficiency production stage. devices have not beenfully popularized as competitivenessModules standard
configurations. This
development and
research also has
certain significance in
jointly expanding
equipment updates and
upgrades with
customers and
improving the
Company's product
line diversification and
technical capabilities.R&D of Next- Being able to adapt to
Generation High- numerous usage
Sensitivity Linear Develop new products Has entered the mass scenarios while Improve company
Motor Based on improve productionefficiency production stage. ensuring the high
product
Capactive Noise performance of the competitiveness
Reduction motor is of great
49Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
significance for user
experience and the
market.Variable aperture
technology is a
technology that
changes the lens
aperture size through a
Key Technology mechanical device
Breakthrough in High- thereby achieving
Precision Blade Fitting Develop new products Has entered the mass control over the light Improve company
for High-Precision improve production production stage. entering the camera. Its product
Stepless Variable efficiency basic principle is to competitiveness
Aperture adjust the aperture sizethrough the opening
and closing of aperture
blades thereby
controlling the amount
of light entering the
camera.The construction of
this project is
beneficial for breaking
the technological
monopoly and
blockade of domestic Break the technological
companies improving monopoly and
the industrial level blockade of domestic
extending the industry companies improve
chain promoting the the industrial level
Development of Big adjustment of product Currently the project extend the industry
Data Model Cable structure and technical has entered the market chain promote the Improve company
Architecture Based on structure and promotion stage adjustment of product technological
4pxc & 8pxc 224G accelerating the optimizing products structure and technical innovation and product
Cable Solutions promotion of based on customer structure and fill the competitiveness.independent brands. needs. gap of self-developed
According to product backplane connection
R&D and after-sales interfaces in China.service needs the Solve the pain points of
Company will expand domestic customers in
its technical force and model selection.service team thereby
bringing more job
opportunities and more
professional services.Improving product
precision reducing
crosstalk between In the industry chain of
signals having a low Currently the project high-speed signal
CRE 6.0 Upgrade and small volume and has entered the market transmission and Improve company
PCIe6.0 Series the application of high- promotion stage communication the
Upgrade and speed copper cables optimizing products production of products
technological
innovation and product
Development and connectors with based on customer with a transmission
PCIe needs. rate of PCIe
competitiveness.
6.0 transmission rate 6.0 is in the upstream
will inevitably become of the industry chain.mainstream.The construction of Break the technological
this project is monopoly and
Research and beneficial for breaking Currently the project blockade of domestic
Development of Big the technological has entered the market companies improve Improve company
Data Model Cable monopoly and promotion stage the industrial level technological
Based on blockade of domestic optimizing products extend the industry innovation and product
CHIP2IOCHIP2BP companies improving based on customer chain promote the competitiveness.the industrial level needs. adjustment of product
extending the industry structure and technical
chain promoting the structure and fill the
50Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
adjustment of product gap of self-developed
structure and technical backplane connection
structure and interfaces in China.accelerating the Solve the pain points of
promotion of domestic customers in
independent brands. model selection.According to product
R&D and after-sales
service needs the
Company will expand
its technical force and
service team thereby
bringing more job
opportunities and more
professional services.
1.
Supports PCIe Gen 5/6
specifications.
2. Compliant with OIF
CEI-28GVSR and
IEEE 802.3 electrical
and optical interface
standards supports
pluggable applications.
3. Fully compliant with
the specifications for
400 Gbps modules
connectors and 1. Market
housings integrating 16 competitiveness:
TX/RX channels as Expand product line
defined by the Multi- seize market
Source Agreement opportunities.Development of CDFP Provide high-speed (MSA). 2. Technical
Based on PCIE5.0 & signal transmission Completed product 4. ESD meets 8KV innovation: Introduce
PCIE6.0 External cable components for development and small contact discharge and new technologies
Interconnection ultra-large data centers batch shipment 15KV air discharge. promote technical
Interface and 5G services. 5. Supports signal rates exchange and
up to 25Gbps per cooperation.channel enabling a 3. Customer
total data transfer relationship: Enhance
speed of 400 Gbps for customer satisfaction
this interface. deepen customer
6. Achieves 16-channel cooperation.
bidirectional data
communication in one
port with a terminal
pitch of 0.75mm.
7. Has good EMI
protection function
EMI spring can cover
the position from the
plug to the socket and
can shield external
interference.In recent years the
global connector
market demand has
maintained a stable
Development of PCIe Prioritize seizing growth trend and the
6.0 Internal New project Development market share enhance overall market size
Interconnection development seize completed entered our company's shows an upward trend.Interface Multi-Trak market share. mass production state. reputation in the The industry prospecttechnical field. is very broad. The
development of this
new project lays a good
foundation for the
Company to control the
51Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
leading new product
development in the
future.With the growing
demand for ultra-high-
speed interconnection
in data centers cloud
computing and high-
performance
computing the market
is accelerating its
evolution towards Standards compliance:
800G and even 1.6T Compliant with IEEE
optical modules. This 802.3 800G Ethernet
project aims to develop standards (such as
800G optical 800GBASE-DR4
transceiver modules FR4). Enhance technical
compliant with the Data rate: Adopts4x200G PAM4 scheme barriers strengthenQSFP packaging
standard to meet the to achieve 800Gbps
market
competitiveness enter
future network's transmission. the 800G/1.6T high-
demand for higher Packaging standard: speed optical
bandwidth low power Supports QSFP-DD / communication market
consumption and high OSFP packaging
reliability. Completed prototype ensuring compatibility
and hold a leading
development and with existing position in the industry.Meet the demand for
Research and The main objectives of sampling stage equipment.Development of 800G this project include: proceeding with Transmission distance:
ultra-high-speed
interconnection in
Optical Transceiver -Promoting the sample trial Supports short-distance ultra-large data centers
Module Based on Company's entry into production. (data center cloud computing and
Quad-Channel QSFP the 800G high-speed DVT: 2025/Q1 interconnection) toReliability testing: long-distance (telecom AI computing clusters.Form Factor optical communication 2025/Q2 backbone network) Lay the foundation formarket and seizing
industry opportunities. Mass production: applications.
224Gbd optical
-Addressing the 2025/Q3. Product
modules
112Gbd being an
demand for ultra-high competitiveness. important technical
bandwidth and high- Adopt DSP digital
density interconnection signal processing to
node. Combine with
improve signal new technologies suchin data centers and as silicon photonics to
network equipment. integrity.Adopt silicon lay out next-generation-Adopting advanced
optoelectronic photonics/silicon
optical communication
products.integration technology interposer integrates
to improve module EML lasers integrates
energy efficiency ratio driver circuits and laser
and optimize heat chips in on-chip
dissipation design. packaging reducing
-Enhancing the manufacturing costs.Company's
competitiveness in the
high-end optical
communication market
through independent
R&D of core optical
components.With the rise of AI big
data models the
demand for high-
throughput bandwidth
OSFP CHIP2IO Provide high-speed Proceed with small interconnection Improve company
Connector Component connector components batch verification increases. As the technological
Development for ultra-large data product series lowest cost and lowest innovation and productcenters. finalized. power consumption competitiveness.copper cable in data
centers it still has
cabinet application
scenarios. Some
52Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
customers have
completed the
preliminary design and
pre-research of 112G
and the demand for
224G series products
has begun to enter the
pre-research phase.Continuous
improvement of
production processes
increasing automation
1.6T and gradual
With the rapid Optical modules can improvement in
R&D of 1.6T Optical development of AI the Sample verification provide higher material application
Transceiver Module demand for high-speed providing small batch bandwidth ensuring further build the soft
Based on Octal- optical modules samples for verification that data in the training power of the
Channel OSFP Form continues to rise and in the customer and inference phases of Company's cost
Factor the demand for 1.6T is environment. artificial intelligence control. The
gradually emerging. systems can be Company's costtransmitted quickly and advantage can help
stably. customers reduce
product costs and
enhance the price
competitiveness of end
products.Promote technological
progress meet the
needs of cost reduction
and efficiency
This type of product improvement; promoteDevelopment of AI server demand industrial upgrading
PwrLink150/220 continues to rise mainly provides high- drive company
Power Connector power requirements Mass production current transmissioncomponents for ultra- performance growthModule increase large data centers. enhance brandinfluence expand
market share promote
green consumption
and support sustainable
development.Wireless network This type of product
Development of development requires provides high-speed Improve company
OSFP224G RAHigh- high-speed Product series finalized signal transmission technological
Speed Connector transmission cable components for innovation and product
components ultra-large data centers competitiveness.and 5G services.AEC technology
introduces Re-timer
chips on the basis of
DAC passive copper
Early entry enhance cables which can
competitiveness; amplify denoise etc.Development of 800G reduce energy Proceeding with small data signals thereby Improve company
& 1.6TAEC External consumption and delay batch verification extending the technological
Cables of data transmission product series finalized transmission distance. innovation and product
and processing in ultra- At the same time competitiveness.large data centers compared with theAOC scheme using
optical modules AEC
has lower power
consumption and better
price.Strengthen domestic
R&D of 224G Bare product technology
224G components Improve company
reserves; increase data Product series finalized provide low loss small technologicalWire transmission rate of size low power innovation and product
ultra-large data centers consumption bare wire. competitiveness.
53Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Particulars of R&D personnel
2024 2023 Y/Y% change
Number of R&D team
members (person) 22583 19063 18.47%
Proportion of R&D team
members in total head counts 8.12% 8.20% -0.08%
Education background of R&D personnel
Bachelor 8344 8947 -6.74%
Master 505 381 32.55%
Other 13734 9735 41.08%
Age structure of R&D team members
Aged below 30 7753 9005 -13.90%
Aged 30-40 11957 7533 58.73%
Particulars of R&D expenses
2024 2023 Y/Y% change
Amount of R&D expenses
(RMB) 8555957431.46 8188767532.85 4.48%
Proportion of R&D expenses
to operating revenue 3.18% 3.53% -0.35%
Amount of R&D expenses
capitalized (RMB) 0.00 0.00 0.00%
Proportion of capitalized
R&D expenses to total R&D 0.00% 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 2023
□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 2024 2023 Y/Y% change
Sub-total of cash inflows
from operating activities 274007921921.29 246049309173.22 11.36%
Sub-total of cash outflows
from operating activities 246891013712.76 218444248762.06 13.02%
Net cash flow from operating
activities 27116908208.53 27605060411.16 -1.77%
Sub-total of cash inflows
from investing activities 61257157625.69 17874274670.25 242.71%
Sub-total of cash outflows
from investing activities 96913229574.80 37434186876.09 158.89%
Net cash flows from investing -35656071949.11 -19559912205.84 -82.29%
54Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
activities
Sub-total of cash inflows
from financing activities 100873837691.61 93759639627.24 7.59%
Sub-total of cash outflows
from financing activities 74983395625.15 89689373974.63 -16.40%
Net cash flows from financing
activities 25890442066.46 4070265652.61 536.09%
Net increase in cash and cash
equivalents 17582950685.73 12371733891.14 42.12%
Analysis of main causes of material changes in the related data
□Applicable □N/A
1. Cash inflow and outflow from operating activities both synchronized with the increase in sales performance;
2. Cash inflow and outflow from investment activities both increased. Besides payments for acquiring subsidiaries the others were
mainly purchases and redemptions from wealth management operations;
3. Net cash flow from financing activities increased which was due to financing to balance increased performance and investment
needs;
Analysis of significant difference between net cash flows from operating activities during the reporting period and net profit in
current year
□Applicable □N/A
V.Analysis of Non-main Business
□Applicable □N/A
In RMB
Amount % of totalprofit Reason
Sustainabl
e or not
Investment income from the purchase of financial
Investment income 4546940655.44 28.23% assets income from wealth management productsand equity method investment income recognized No
from associated enterprises.Gain or loss on
changes in fair -63167333.15 -0.39% Investment income on financial assets at fair value
value through profit or loss
No
Impairment loss on
assets -1245468307.53 -7.73% Inventory and fixed asset impairment No
Non-operating 53603053.92 0.33% Mainly acquisition of default or compensationincome income No
Non-operating 86739225.98 0.54% Mainly payment of default or compensation assetexpenses scrapping losses and external donations. No
Gain on disposal of
assets 36626066.06 0.23% Disposal of production equipment No
Other gains 993203577.89 6.17% Government grants related to income No
Loss on credit -10087989.60 -0.06% Provision for losses and reversal of accountsimpairment receivable and other accounts receivable No
55Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
VI. Analysis of Assets and Liabilities
1. Material Changes in Components of Assets
In RMB
December 31 2024 January 1 2024
% of Y/Y% Reason of material
Amount total Amount % of total Change change
assets assets
Increase in cash
reserves for safety days
Cash and bank
balances 48359655992.93 21.61% 33619539457.51 20.75% 0.86%
and funding
requirements to support
operations and
investments
Accounts
receivable 32561098916.58 14.55% 23504481889.07 14.51% 0.04% Performance increase
Contract assets 0.00% 0.00% 0.00%
Performance increase
Inventories 31702675549.03 14.16% 29757930319.35 18.37% -4.21% and inventory turnover
optimization
Investment
properties 35664816.93 0.02% 23353936.24 0.01% 0.01% Rental income
Long-term Increase in investment
equity 7488295934.01 3.35% 4232941741.05 2.61% 0.74% income from joint
investments ventures recognizedunder the equity method
Expansion of business
Fixed assets 48231236929.70 21.55% 44560506279.62 27.51% -5.96% scale and newly
acquired subsidiaries
Unaccepted equipment
Construction in 5379186127.71 2.40% 2226217016.31 1.37% 1.03% and buildings (mainly inprogress Mexico Vietnam and
Changshu)
Right-of-use Mainly due to the
assets 858486974.92 0.38% 648963968.09 0.40% -0.02% increase in leasedbuildings
Short-term Supplementing working
borrowings 35313128924.26 15.78% 20514182240.47 12.66% 3.12% capital due to increasedscale
Contract 262507706.68 0.12% 243566923.42 0.15% -0.03% Goods paymentsliabilities received in advance
Long-term Supplementing funds
borrowings 19619741634.77 8.77% 12038771289.92 7.43% 1.34% required for expansionin scale
Mainly due to the
Lease liabilities 727982667.37 0.33% 552488888.66 0.34% -0.01% increase in leased
buildings
Financial assets Investments such as
held for trading 1403110810.03 0.63% 1720764175.32 1.06% -0.43% forward exchange andwealth management
Prepayments for
Prepayments 389200419.67 0.17% 486702941.36 0.30% -0.13% materials utilityexpenses and customs
deposits
Other Mainly due to the
receivables 916828350.56 0.41% 322407052.71 0.20% 0.21% increase in export taxrefund receivables
Mainly due to the
Other current increase in large-
assets 17557463274.05 7.84% 2920078401.07 1.80% 6.04% denomination time
deposits with maturity
56Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
within 1 year
Long-term
deferred 770001330.59 0.34% 590266003.15 0.36% -0.02% Factory and workshop
expenses renovation expenses
Deferred tax
assets 817693476.29 0.37% 872943835.40 0.54% -0.17%
No significant changes
occurred
Mainly due to the
Other non- increase in large-
current assets 16872400444.43 7.54% 9931644112.92 6.13% 1.41% denomination timedeposits with maturity
over 1 year
Increase in the
Notes payable 878335711.94 0.39% 492585900.03 0.30% 0.09% Company's bill payment
business
Accounts
payable 65087993138.64 29.08% 45908515295.43 28.34% 0.74% Performance increase
Increase in accrued
Other payables 502369570.62 0.22% 406677940.53 0.25% -0.03% expenses deposits and
dividends payable
Increase in short-term
Other current
liabilities 5168824236.48 2.31% 932701803.30 0.58% 1.73%
bonds payable and
discounted bills not
derecognized
Deferred
income 649108632.44 0.29% 595323601.05 0.37% -0.08%
Government grants
related to assets
Mainly due to
temporary differences
Deferred tax from accelerated
liabilities 955820917.13 0.43% 883924973.73 0.55% -0.12% depreciation of fixedassets and provision for
unrealized exchange
gains
Analysis of high proportion of overseas assets
□Applicable □N/A
2. Assets and Liabilities at Fair Value
□Applicable □N/A
In RMB
Gain or
loss on Aggregate Impairment Amount
Opening changes in changes in
loss acquired in Amount
Item balance fair value fair value
recognized sold in the Other Closing
in the recorded in in the
the
current reporting
reporting changes balance
reporting equity period period
period period
Financial assets
1. Financial
assets held
for trading -
(excluding 16282790 40139910. 49540900 52420010 13002280
derivative 35.31 67 00.00 25.24 99.40
financial
assets)
2.
Derivative 92485140. 10397570. 10288271
financial 01 62 0.63
assets
4. Other 24912225 - 5809170.9 46060612. 11276507
57Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
investment 1.32 90296567. 9 08 2.04
s in equity 20
instruments
5. Other
non-current 35700000. 3911504.5
financial 00 6 300000.00
39311504.
56
assets
Subtotal of
financial 20055864
-
116127405809170.9495409005288361615551873
assets 26.64 2.69 9 00.00 37.32 86.63
Accounts
receivable 58758500 51869918 11062841
financing 9.82 2.47 92.29
Total 25931714
-
116127405809170.94954090052883616518699182661471536.462.69900.0037.322.4778.92
Financial 11794242 - 15527891
liabilities 1.18 37336497.66 8.84
Other changes
Other changes under accounts receivable financing were due to the increase in the balance of bills pending discount.There are material changes 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
For details please refer to Note X.23 "Assets with Restrictions on Ownership or Use"
VII. Analysis of Investments
1. Overall Situation
□Applicable □N/A
Amount of investment in 2024 (RMB) Amount of investment in 2023 (RMB) Y/Y% Change
3231970417.15793376506.36307.37%
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
58Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
4. Investment in Financial Assets
(1) Securities Investment
□Applicable □N/A
In RMB
Opening Gain or loss on Aggregate Amount Amount sold Closing
Type of Security Initial changes in fair changes in acquired in Gain or loss in
security code Short name investment
Method of balance of
measurement carrying value in the fair value the
in the the reporting balance of Accounting Source of
cost amount reporting recorded in reporting
reporting period carrying item funding
period equity period period amount
Stock listed Investment
on domestic Tony - - in other Self-owned
or overseas 603595 Electronic 22500000.00 Fair value 172691671.36 131370033.80 28132910.98 0.00 46088917.00 127768068.92 41321637.56 equity capital
market instruments
Stock listed Investment
on domestic
or overseas 430755 SDMC 50000000.00 Fair value 28138181.82 -4458181.82
-
22372000.000.000.00-4458181.8223680000.00
in other Self-owned
equity capital
market instruments
Total 72500000.00 -- 200829853.18 - -135828215.62 5760910.98 0.00 46088917.00 132226250.74 65001637.56 -- --
59Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Investment in Derivatives
□Applicable □N/A
1) Investment in Derivatives for the Purpose of Hedging during the Reporting Period
□Applicable □N/A
In RMB 10000
% of
Gain or closing
loss on Aggregate Amount Amount balance to
Type of Initialinvestment Opening
changes in changes in acquired in the net
derivative balance fair value fair value the
sold in the Closing asset as at
cost in the recorded in reporting reporting amount the end of
reporting equity period period the
period reporting
period
Forward 216022.35 216022.35 45242.18 -2754.38 968338.58 1184360.93 0 0.00%
Option 343727.31 343727.31 58513.4 -3562.35 1233622.2 1419204.89 1 158144.8 2.28%
Total 559749.66 559749.66 103755.58 -6316.73 2201960.8 2603565.77 4 158144.8 2.28%
Whether there’s any material change in the
accounting policies and accounting principles for
hedge business in the reporting period as compared No material change
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
Actual gain or loss in the reporting period engaged in foreign exchange derivative transactions with an amount of
approximately RMB 1.0375558 billion 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
Description of hedging effects speculative or arbitrage transactions. All transactions are based on normalproduction 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 funding Self-owned capital
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
Analysis of risks associated with the derivatives information segregation measures internal risk controls information
held in the reporting period (including without disclosure and other issues relating to financial derivative transactions to
limitation market risk liquidity risk credit risk control the risks associated with such transactions.operational risk and legal risk) and related risk 3. We carefully examine the terms of contracts entered into with the
control measures relevant banks and strictly implement the risk management policy to
prevent legal risks.
4. We continuously follow up on the changes in the market price or fair
value of the relevant foreign exchange derivatives promptly assess the
changes in risk exposures of such foreign exchange derivatives report to
the management on a regular basis promptly report the abnormal situations
discovered call attention to the relevant risks and take the appropriate
60Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 the
derivatives held in the reporting period (in the The change in the fair value of a foreign exchange derivative is the
analysis of the fair value of derivatives the specific difference between its fair market price in the month in which the delivery
approaches assumptions and parameters used shall date determined by the Company falls and its contract price.be disclosed)
Whether or not involved in any litigation N/A
Disclosure date of the announcement of the Board
of Directors approving the investment in February 29 2024
derivatives (if any)
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
61Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 business Registeredcapital Total assets Net assets Operating income Operating profit Net profits
Luxshare Purchase and sale of electronic products data lines
Precision Limited Subsidiary connection lines connectors computers and USD 5 million 145532825042.71 14123315441.84 232833806269.13 2721715234.62 2484707197.03peripherals plastic and hardware products.Lanto Electronic Sales and services in respect of internal and external
(Suzhou) Limited Subsidiary connection lines for IT communication and consumer
USD
153290323 93806299129.31 7846070666.80 68210083543.16 2047228829.50 1696604245.16electronic applications and precision connectors.
Computer peripherals connection lines and
connectors; new-type electronic components
(electronic devices) instruments and accessories for
communication and IT purposes plastic rubber and
hardware products; research development
production and sale of special electronic equipment
testing instruments tools molds remote control
dynamic models and related supplies and
components; production and sale of power supply
units and wireless transmission products;
development of software; import and export of goods
and technology. Licensed items: production of Class
II medical devices; Class II value-added
Lanto Electronic telecommunications services. General items:
Limited Subsidiary manufacturing of automotive components and
RMB 29732954826.58 8019446268.88 27628025749.19 1003461609.86 940811022.93
accessories; research and development of automotive 2320000000
components; wholesale of automotive components
and accessories; sale of automotive components and
accessories; sale of mechanical components and spare
parts; manufacturing of opto-electronic components;
sale of opto-electronic components; research and
development of special electronic materials; research
and development of household appliances; research
and development of motorcycle components;
manufacturing of lighting equipment; manufacturing
of transformers rectifiers and inductors;
manufacturing of computer software hardware and
peripheral devices; manufacturing of power
transmission distribution and control equipment.
62Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Company Type Main business Registeredcapital Total assets Net assets Operating income Operating profit Net profits
Technology development technical consulting and
technical services in respect of computer accessories;
design R&D and production of precision stamping
molds (precision ≥ 0.02mm) precision cavity molds
(precision ≥ 0.05mm) metal product molds non-
metal product molds and standard parts for molds;
production of high-temperature resistant molded
insulating materials stamped hardware parts rivets
shafts mechanical components and other components
Luxcase Precision for 3C electronics products; industrial design product
Technology Subsidiary design (exterior design structural design circuit RMB(Yancheng) Co. design graphic design etc.); lease of own idle 6264312296 48667314521.04 16491749964.97 91031818462.24 1931592086.01 1547602865.91
Ltd. equipment; wholesale commission agency (except
auction) import export and supporting services in
respect of the aforesaid products and related
components. General items: Manufacturing of mobile
terminal devices; manufacturing of communication
equipment; manufacturing of electronic components;
manufacturing of forgings and powder metallurgy
products; manufacturing of computer software
hardware and peripheral devices; retail of computer
software hardware and auxiliary equipment.
63Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Subsidiaries acquired and disposed of during the reporting period
□Applicable □N/A
Method of
Company acquisition or Effect on the production operation and
disposal results of the Company taken as a whole
No significant effect on the production
Lisheng Intelligent Technology (Shanghai) Co. Ltd. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Lisheng Intelligent Technology (Chengdu) Co. Ltd. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Cosmo Corporation Cayman Limited Merged operation and results of the Company
taken as a whole
No significant effect on the production
Cosmo International Limited Merged operation and results of the Company
taken as a whole
No significant effect on the production
Cosmo Supply Ltd. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Cosmo Crew Ltd. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Cosmo Industrial (Dongguan) Co. Ltd. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Cosmo Manufacturing (Thailand) Co.Ltd. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Luxis Hongkong Co. Ltd Merged operation and results of the Company
taken as a whole
No significant effect on the production
Luxis Singapore Co. Ltd Merged operation and results of the Company
taken as a whole
No significant effect on the production
Luxis Beijing Co. Ltd Merged operation and results of the Company
taken as a whole
No significant effect on the production
Luxis Dezhou Co. Ltd Merged operation and results of the Company
taken as a whole
No significant effect on the production
Chuzhou Luxshare Technologies Co. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Luxcase Precision Co. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Luxshare Precision Industry (Lu'an) Co. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Luxshare Energy (Jiangxi) Co. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Stellar Prosperity LLC Newly established operation and results of the Company
taken as a whole
No significant effect on the production
LUXSHARE TECHNOLOGIES SINGAPORE PTE.LTD. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
LuxPC Union Co. Ltd. Newly established operation and results of the Company
taken as a whole
LuxPC Union (jiashan) Co. Ltd. Newly established No significant effect on the productionoperation and results of the Company
64Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
taken as a whole
No significant effect on the production
Lijing Precision Technology (Zhejiang) Co. Ltd. Newly established operation and results of the Company
taken as a whole
Xuancheng Luxshare Precision Industry Co. Ltd. Wuhan No significant effect on the production
Branch Newly established operation and results of the Companytaken as a whole
No significant effect on the production
Huiju Robotics Technology (Shanghai) Co. Ltd. Canceled operation and results of the Company
taken as a whole
No significant effect on the production
Huizhi Software Technology (Huizhou) Co. Ltd. Canceled operation and results of the Company
taken as a whole
No significant effect on the production
Luxshare Automotive Technology (Jiangsu) Co. Ltd. Newly established operation and results of the Company
taken as a whole
Luxshare Precision Industry (Baoding) Co. Ltd. Xiamen No significant effect on the production
Branch Newly established operation and results of the Companytaken as a whole
No significant effect on the production
Dongguan Luxshare Technology Co. Ltd. Beijing Branch Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Luxshare Precision Accessory (Suzhou) Ltd. Wuzhong Branch Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Luxcase Korea Co. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Time Interconnect America Inc Newly established operation and results of the Company
taken as a whole
No significant effect on the production
DA CHUANG PRECISION LIMITED Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Lide Technology (Vietnam) Co. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Time Interconnect Singapore Pte. Ltd. Newly established operation and results of the Company
taken as a whole
No significant effect on the production
TIME INTERCONNECT MEDTECH UK LIMITED Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Da Chuang Investment Limited Newly established operation and results of the Company
taken as a whole
No significant effect on the production
Cosmic M.E. Inc. Merged operation and results of the Company
taken as a whole
No significant effect on the production
Merry Electronics (Shanghai) Co. Ltd. Merger byabsorption operation and results of the Companytaken as a whole
Rugao Luxshare Enterprise Management Services Partnership No significant effect on the production
(Limited Partnership) Canceled operation and results of the Companytaken as a whole
No significant effect on the production
Lianxun Smart Equipment (Rugao) Co. Ltd. Canceled operation and results of the Company
taken as a whole
Particulars of significant controlled and investee companies
N/A
65Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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. Business Plan for the Next Year
Looking ahead to 2025 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.Currently the Company has built a diversified integrated and collaborative strategic blueprint in fields such as consumer
electronics automotive communications and data centers forming a pattern of synergistic development across three core business
segments. In the future the Company will focus on the "Three Five-Year" strategic plan continuing to exert efforts in deepening
global layout strengthening technical advantages and expanding into emerging fields building a one-stop solution capability
based on the precision manufacturing platform forging differentiated competitive barriers in the era of new quality productive
forces.At the level of globalization strategy implementation the Company will strengthen overseas capacity building through a
combination of organic growth and external expansion continuously optimizing the layout of global manufacturing bases and
R&D centers building a more agile and flexible capacity support system to meet the localized service needs of overseas customers.At the same time the Company will leverage years of accumulated international operation experience to provide comprehensive
synergistic support from production and manufacturing to supply chain management for excellent domestic brands going abroad
helping them build competitive advantages in the global market. This two-way empowerment globalization strategy not only
enhances resilience against fluctuations in the international trade environment but also enables the Company to deeply integrate
into the international industry chain division of labor system achieving significant improvements in resource allocation efficiency.In the consumer electronics business field the Company will leverage external M&A resources to focus on strengthening
ODM system integration capabilities relying on mature vertical integration advantages and intelligent manufacturing platform
continuously exploring the breadth and depth of customer cooperation. Facing the era of "Everything + AI" the Company will
deeply analyze customers' multi-dimensional demands for smart terminal products and through process analysis and technical
decomposition convert complex structures into multiple mature process flows combined with technological empowerment in
acoustics optics electronics magnetism thermal management etc. to help customers achieve delivery and experience that exceed
market expectations driving the consumer electronics business to deeply tap into growth potential in the existing market and open
up blue oceans in red ocean competition.For the communications and data center business the Company adheres to the concept of "applying a generation developing
a generation pre-researching a generation" co-building the next-generation technology standard ecosystem with global leading
customers and building full-stack technical reserves in core areas such as optoelectronic high-speed interconnection thermal
management and modular power supplies providing full life-cycle escort for customer products through high yield mass
production. In the future the Company will continue to follow the three-dimensional business expansion model of "old customers
new products" "old products new customers" and "new customers new products". Against the backdrop of the explosion of AI
computing power demand with forward-looking technology layout and flexible business cooperation models the Company will
continue to expand its leading advantages in strategic product areas such as electrical connection and optical connection and
66Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
proactively lay out products in the thermal management and power supply fields providing overall high-speed interconnection
solutions for AI computing power equipment.In the automotive business segment with the continuous increase in the penetration rate of new energy vehicles the large-
scale implementation of L2+/L3 intelligent driving assistance technology and the rapid penetration of smart cockpit systems into
mainstream vehicle models the Company leverages the precision manufacturing capabilities and rapid iteration experience
accumulated in the consumer electronics field forming a complete product matrix from vehicle harnesses and connectors to
intelligent driving assistance smart cockpit intelligent chassis and powertrain. By leveraging the Company's leading advantages
in automated production and lean management and the layout of synergistic global multi-capacity bases to serve vehicle
manufacturers nearby the Company continuously expands its product coverage among global leading vehicle manufacturer
customers. In the future the Company will focus on opening up software and hardware collaborative development capabilities
deeply participate in the vehicle intelligence process with a more open ecosystem cooperation model and gradually achieve
strategic breakthroughs in the global automotive Tier1 market.In terms of building the R&D innovation system the Company always regards underlying technology breakthroughs as the
foundation of development and continues to increase exploration and investment in frontier areas such as robotics AI server
whole machines industrial-grade 3D printing high-performance silicon carbide waveguides 6G technology and terahertz band
communication. By building cross-disciplinary integrated R&D teams and deeply exploring the synergistic effects of material
science process technology and digital technology the Company continuously builds differentiated competitive advantages and
forms an independent and controllable capability system in core areas such as active and passive components and artificial
intelligence algorithms providing strong support for customer iteration innovation and continuously broadening the Company's
capability boundaries in the process of forming new quality productive forces.
3. Capital Required for Future Development Strategy and Capital Utilization Plan
As of the end of 2024 the Company's asset-liability ratio was 62.16%. In 2025 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 for the expansion of new markets
and investments in 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 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.
4. 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 of our total operating revenue and our
overseas transactions are mainly settled in US Dollars. Our sales on the overseas market totaled RMB 193803646900 RMB
206756020500 and RMB 235466985100 in 2022 2023 and 2024 representing 90.55% 89.16% and 87.60% of our revenue
from main business respectively.
67Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Because China implements the managed floating rate system the foreign exchange rates fluctuate along with the changes in
the 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. 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. Research Communication Interview and Related Activities during the Reporting
Period
□Applicable □N/A
Date Place Method of Type of
Main topic of Particulars of the
communication guests Guests discussion and investigation and researchinformation provided activity available at
Company Refer to the Record of
meeting room Introduction about Investor Relations Activity
April 26 No. 313 Beihuan Communication Institution Institutional our operating status dated April 26 20242024 Road Qingxi by telephone Investors in 2023 and the Q1 published on
Town Dongguan of 2024 www.cninfo.com.cn on
Guangdong April 28 2024
Company Refer to the Record of
meeting room Investor Relations Activity
May 6 2024 No. 313 Beihuan
Network Our performance dated May 6 2024
Road Qingxi platform online Other Investor
Town Dongguan communication
briefings in 2023 published on
www.cninfo.com.cn on
Guangdong May 7 2024
Company Refer to the Record of
meeting room Communications at Investor Relations Activity
June 27 2024 No. 313 Beihuan
On-site our annual general dated June 27 2024
Road Qingxi investigation Other Investorand research meeting of published onTown Dongguan shareholders www.cninfo.com.cn on
Guangdong June 29 2024
Company Introduction about Refer to the Record of
August 24 meeting room Communication Institution Institutional our operating results Investor Relations Activity2024 No. 313 Beihuan by telephone Investors in the first half of dated August 24 2024
Road Qingxi 2024 and general published on
68Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Town Dongguan situation www.cninfo.com.cn on
Guangdong August 26 2024
Company
meeting room The Company
Refer to the Record of
Investor Relations Activity
September 15 No. 313 Beihuan Communication Institutional provides dated September 15 2024
2024 Road Qingxi by telephone Institution Investors explanationsregarding the Leoni published onTown Dongguan acquisition. www.cninfo.com.cn onGuangdong September 18 2024
Company Refer to the Record of
meeting room Introduction about Investor Relations Activity
October 28 No. 313 Beihuan Communication Institution Institutional our operating status dated October 28-29 20242024 Road Qingxi by telephone Investors for three quarters of published on
Town Dongguan 2024 www.cninfo.com.cn on
Guangdong October 29 2024
XIII. Formulation and Implementation of Market Value Management System and Value
Enhancement Plan
The Company has established a market value management system
□Yes □No
The company has disclosed a value enhancement plan
□Yes□No
To strengthen the market value management of Luxshare Precision Industry Co. Ltd. (hereinafter referred to as the
"Company") further standardize the Company's market value management behavior effectively safeguard the legitimate rights
and interests of the Company investors and other stakeholders establish the Company's integrity image improve the Company's
core competitiveness and actively respond to the call in "Regulatory Guidance No. 10 for Listed Companies - Market Value
Management" regarding encouraging listed companies to establish a market value management system in accordance with the
"Company Law of the People's Republic of China" "Securities Law of the People's Republic of China" "Rules Governing the
Listing of Stocks on Shenzhen Stock Exchange" "Self-Regulatory Guidelines No. 1 for Listed Companies on Shenzhen Stock
Exchange - Standardized Operation of Main Board Listed Companies" and other relevant laws and regulations the "Market Value
Management System" has been formulated. The "Market Value Management System" has been reviewed and approved by the
Seventh Meeting of the Sixth Board of Directors of the Company. The "Market Value Management System" can be found on the
Company's designated information disclosure website Juchao Information Network (http://www.cninfo.com.cn).XIV. Implementation of the Quality Return Double Improvement Action Plan
The company has 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
69Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
company products to create scenarios it aims to build ecosystems across various scenarios. In different ecosystems scenarios and
product combinations Lens 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 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 25.192 billion and currently holds 7164 patents.
3. Standardize Operations and Enhance Governance Levels
Continuously strengthening the Company's governance foundation enhancing internal control systems and promoting theaccountability 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
70Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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.
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 4.53 billion in dividends over the past three years and a total of RMB
7.652 billion in dividends since its listing.
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. During the
period from January 8 2024 to January 9 2024 Mr. Wang Laisheng one of the actual controllers and vice chairman of the
Company increased his shareholding in the Company by 3181037 shares through centralized bidding transactions on the
Shenzhen Stock Exchange with an increase amount of RMB 100.3883 million (excluding handling fees). See "Announcement on
the Expiration of the Share Increase Plan and Completion of Share Increase by One of the Actual Controllers and Vice Chairman
71Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
of the Company" (Announcement No.: 2024-032). On April 8 2025 based on the recognition of the Company's intrinsic value and
firm confidence in its future continuous and stable development and adhering to the social responsibility of jointly promoting the
stable and healthy development of the capital market Mr. Wang Laisheng intends to increase his shareholding in the Company
through the Shenzhen Stock Exchange system within 6 months from the date of the announcement with an increase amount of not
less than RMB 200 million and not more than RMB 300 million. For details see "Announcement on the Share Increase Plan by
One of the Actual Controllers and Vice Chairman of the Company" (Announcement No.: 2025-033).
72Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 (2024 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 online 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
purposes.(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 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 accordance 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
73Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 reporting period we
did not take advantage of any inside information to trade our shares. We have set up a 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.There is a 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 of
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 Status of Assets
74Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
remuneration from 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 independently manage our employees
including their remuneration social security and other related matters and have established sound personnel management policies
and systems.(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
Proportion
of
Session Type of meeting investors Date of Date ofattending meeting disclosure Resolution of the meeting
the
meeting
2023 Annual Annual general A total of 17 proposals including the
Meeting of meeting of 53.53% June 27 2024 June 28 2024 2023 Annual Board of Directors Work
Stockholders shareholders Report were approved by vote as
75Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
disclosed in our Announcement 2024-049
Reviewed and approved the "Proposal on
First Interim Interim the Proposed Registration and Issuance of
Shareholders' Shareholders' 55.26% October 9 October 10 Debt Financing Instruments for Non-
Meeting in 2024 Meeting 2024 2024 Financial Enterprises (DFI) in theInterbank Bond Market" as detailed in
company announcement 2024-081
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preferred Shareholders
with Resumed Voting Rights
□Applicable □N/A
76Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
V. Directors Supervisors and Executives
1. Particulars
Opening Number of Number of Changes in the
Name Gender Age Title Status Beginning date of End date of the balance of additional shares shares disposed number of
Closing Cause of increase or
the term of office term of office shares held acquired in the of in the shares held due
balance of decrease in the number
reporting period reporting period to other reasons shares held of shares held
WANG Female 58 Chairman and generalLaichun manager Incumbent February 22 2009 June 27 2027 0 0 0 0 0
WANG
Laisheng Male 61 Vice Chairman Incumbent February 22 2009 June 27 2027 12258610 3181037 0 0 15439647 Competitive Bidding
Additional shares
WANG Tao Male 40 Director Vice GeneralManager Departure May 18 2021 June 27 2024 1331283 801627 0 0 2132910
acquired as a result of
exercise of incentive
share options
Additional shares
LI Wei Male 45 Director Vice GeneralManager Departure May 18 2021 June 27 2024 1013978 875985 0 0 1889963
acquired as a result of
exercise of incentive
share options
Additional shares
QIAN Jiwen Male 50 Director Vice General Incumbent June 27 2024 June 27 2027 0 258000 0 0 258000 acquired as a result ofManager exercise of incentive
share options
HAO Jie Male 42 Director Vice GeneralManager Incumbent June 27 2024 June 27 2027 0 0 0 0 0
HOU Lingling Female 49 Independent Director Incumbent June 27 2024 June 27 2027 0 0 0 0 0
ZHANG Ying Female 62 Independent Director Departure May 18 2018 June 27 2024 0 0 0 0 0
LIU Zhonghua Male 60 Independent Director Incumbent May 18 2021 June 27 2027 0 0 0 0 0
SONGYuhong Female 54 Independent Director Incumbent May 18 2021 June 27 2027 0 0 0 0 0
XIAYanrong Female 44 Chairman of theSupervisory Board Incumbent May 22 2018 June 27 2027 0 0 0 0 0
MO Rongying Female 45 Supervisor Incumbent May 22 2018 June 27 2027 0 0 0 0 0
YI Peizan Female 40 Supervisor Incumbent February 22 2009 June 3 2027 0 0 0 0 0
Additional shares
HUANG Male 53 Board Secretary Vice acquired as a result ofDawei General Manager Departure January 8 2018 July 5 2024 878780 319695 0 0 1198475 exercise of incentive
share options
Xiao Yunxi Female 37 Board Secretary Incumbent July 5 2024 July 5 2027 0 0 0 0 0
Additional shares
WU Tiansong Male 55 Chief Financial Officer Incumbent April 15 2019 July 5 2024 982858 347015 0 0 1329873 acquired as a result ofexercise of incentive
share options
Total -- -- -- -- -- -- 16465509 5783359 0 0 22248868 --
77Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
78Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
There is a director or supervisor retired or an executive removed during the reporting period
□Yes□No
Changes in directors supervisors and executives
□Applicable □N/A
Name Position Held Type Date Reason
LI Wei Director Vice GeneralManager Expiration of term June 27 2024 Re-election
WANG Tao Director Vice GeneralManager Expiration of term June 27 2024 Re-election
HAO Jie Director Vice GeneralManager Appointment June 27 2024 Re-election
QIAN Jiwen Director Vice GeneralManager Appointment June 27 2024 Re-election
ZHANG Ying Independent Director Expiration of term May 18 2024 Re-election
HOU Lingling Independent Director Appointment June 27 2024 Re-election
HUANG Dawei Board Secretary ViceGeneral Manager Expiration of term July 5 2024 Job Transfer
Xiao Yunxi Board Secretary Appointment July 5 2024 Re-election
LI Ruihao Securities AffairsRepresentative Expiration of term July 5 2024 Job Transfer
CHENWeihang Securities AffairsRepresentative Appointment July 5 2024 Re-election
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 born in 1967 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.Mr. WANG Laisheng born in 1964 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 has been engaged in individual business since the 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. Qian Jiwen born in 1974 Chinese nationality holds a Hong Kong resident identity card without permanent residency
abroad Bachelor's degree from Southeast University. Mr. Qian Jiwen joined Luxshare Precision Industry Co. Ltd. in April 2016
and is currently the head of the Company's Terminal Antenna Business Unit responsible for the relevant management and
operation of the Terminal Antenna Business Unit. He has nearly 30 years of relevant work experience in the precision electronics
manufacturing industry.Mr. Hao Jie born in 1982 Chinese nationality without permanent residency abroad Master's degree in Management from
Renmin University of China. Mr. Hao Jie joined Luxshare Precision Industry Co. Ltd. in October 2017 and is currently the head
of the Company's Semiconductor Packaging and SMT Business Unit responsible for relevant operation and management work
possessing solid theoretical knowledge in operation management and rich experience in the consumer electronics industry.
79Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Ms. Hou Lingling born in 1975 Chinese nationality without permanent residency abroad. Doctor of Economics from
Hunan University Master of Economic Law from Zhongnan University of Economics and Law. She is currently a professor and
master's supervisor at Shenzhen University Law School and concurrently serves as an Executive Director of the China Social Law
Society a Director of the Guangdong Law Society and an arbitrator at the Shenzhen International Arbitration Court Dongguan
Arbitration Commission and Shenzhen-Shantou International Arbitration Court. Ms. Hou Lingling has obtained the qualification
for independent directors of the Shenzhen Stock Exchange.Mr. LIU Zhonghua born in 1965 Chinese nationality without foreign permanent residence. Master professor of accounting;
he 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 born in 1971 Chinese nationality; Master of Laws Wuhan University; Bachelor of Laws Southwest
University of Political Science & Law; MBA Grandes écoles de Commerce; She 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 and 6th Board of Directors.(II) Supervisors
Ms. XIA Yanrong born in 1981 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
5th and 6th Board of Supervisors.
Ms. MO Rongying born in 1980 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 5th and 6th Board of Supervisors.Ms. YI Peizan born in 1985 Chinese nationality joined our Finance Department in 2004 is now our supervisor. Ms. YI
Peizan is a member of our 1st through 6th Board of Supervisors.(III) Executives
Ms. WANG Laichun whose resume is set out in “Directors” above.Mr. HAO Jie whose resume is set out in “Directors” above.Mr. QIAN Jiwen whose resume is set out in “Directors” above.Ms. Xiao Yunxi born in 1987 Chinese nationality graduated from Shanghai University of International Business and
Economics with a Bachelor's degree in Economics. She joined Luxshare Precision Industry Co. Ltd. in 2009 and has served
successively as Strategic Procurement Specialist Product R&D PM Global Marketing Business Head Securities Affairs Director
and Investor Relations Manager.Mr. WU Tiansong born in 1970 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
80Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
Positions held in other entities
□Applicable □N/A
Whether or
End not receiveremuneratio
Name Entity Position Beginning date of date ofthe term of office the term n and
of office subsidiesfrom such
entity
WANG Laichun Luxsan Precision Technology (Jiangsu)Co. Ltd. Director November 25 2020 No
WANG Laichun Bisaisi Automotive Technology (Suzhou)Co. Ltd. Chairman July 18 2018 No
WANG Laichun Luxcase Precision Technology(Yancheng) Co. Ltd. Chairman February 3 2021 No
WANG Laichun Xiexun Electronic (Ji’an) Co. Ltd. ViceChairman November 12 2005 No
WANG Laichun Fujian JK Wiring Systems Co. Ltd.. Chairman June 18 2012 No
WANG Laichun TIME Interconnect Technology Limited Chairman April 19 2022 No
WANG Laichun Chery Automobile Co. Ltd. Director December 30 2024 No
WANG Laisheng Chery Holdings Group Co. Ltd. Director December 27 2024 No
WANG Laisheng Luxsan Precision Technology (Jiangsu)Co. Ltd. Chairman November 25 2020 No
WANG Laisheng Xunmu Information Technology General(Shanghai) Co. Ltd. Manager April 27 2021 No
WANG Laisheng Lishan Smart Manufacturing Technology
Managing
(Guangdong) Co. Ltd. Director & November 18 2020 NoManager
Managing
WANG Laisheng BCSAutomotive Interface Solutions Director &(Xi’an) Co. Ltd. General December 29 2018 No
Manager
WANG Laisheng Xiexun Electronic (Ji’an) Co. Ltd. Chairman November 12 2005 No
WANG Laisheng Lanto Electronic Limited ViceChairman May 12 2011 No
WANG Laisheng Luxshare Precision Industry (Kunshan) ViceCo. Ltd. Chairman October 25 2011 No
WANG Laisheng Dongguan Leader Precision IndustryCo. Ltd. Chairman August 16 2012 No
WANG Laisheng Luxshare Precision Industry (Kunshan) ViceCo. Ltd. Chairman October 25 2011 No
WANG Laisheng Suining Luxshare Precision Industry Co. ManagingLtd. Director January 11 2013 No
WANG Laisheng Luxshare Precision Industry (Chuzhou) ManagingCo. Ltd. Director March 24 2014 No
WANG Laisheng Fengshun Luxshare Precision Industry ManagingCo. Ltd. Director July 4 2014 No
WANG Laisheng Dongguan Luxshare Precision IndustryCo. Ltd. Chairman November 27 2015 No
WANG Laisheng Jiangxi Luxshare Intelligent ManufactureCo. Ltd. Director December 25 2015 No
WANG Laisheng Lishan Enterprise Management
Managing
(Zhejiang) Co. Ltd. Director & March 24 2021 NoManager
WANG Laisheng Luxshare Holdings (Guangdong) Co. ManagingLtd. Director & November 1 2021 No
81Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Manager
Managing
Director，HAO Jie Luxis Precision Intelligent
General
Manufacturing (Kunshan) Co. Ltd. Manager July 2 2021 No
and Legal
Representati
ve
Managing
Director，General
HAO Jie Luxis Technology (Kunshan) Co. Ltd. Manager May 26 2021 No
and Legal
Representati
ve
Managing
Director，HAO Jie Luxis Precision Intelligent ManagerManufacturing (Shantou) Co. Ltd. June 19 2023 Noand Legal
Representati
ve
Legal
Representati
HAO Jie Luxis Beijing Co. Ltd ve， Key May 28 2024 NoManagemen
t Personnel
HAO Jie Luxis Dezhou Co. Ltd ManagingDirector May 21 2024 No
LIU Zhonghua Guangzhou Yuexiu Financial Holding Independent
Septemb
Group Co. Ltd. Director July 19 2022 er 13 Yes2026
XIAYanrong Luxshare iTech (Zhejiang) Co. LTD. Supervisor April 8 2019 No
XIAYanrong Zhuhai Kinwong Flexible Circuit Co.Ltd. Supervisor December 3 2018 No
XIAYanrong Luxshare Precision Industry (Suzhou)Co. Ltd. Supervisor February 18 2019 No
XIAYanrong Luxshare Electronic (Shanghai) Co. Ltd. Supervisor December 2 2019 No
XIAYanrong Luxshare Precision Industry (Enshi) Co.Ltd. Supervisor October 24 2018 No
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
WU Tiansong Luxshare Electronic Technology(Kunshan) Co. Ltd. Supervisor March 17 2014 No
WU Tiansong Huzhou Jiuding Electronic Co. Ltd. Director December 15 2015 No
Explanation about
the posts held at N/A
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-term incentives and included the performance related to sustainable
development into assessment so as to realize our future development strategy and business objectives. The Remuneration
82Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 remuneration of our independent directors is determined pursuant to the Measures for the
Administration of Independent Directors of Listed Companies the AOA and other relevant regulations and with reference to the
overall economic environment and the remuneration offered by listed companies in the industry in which the Company operates
and is 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 10000
Total Whether or not
remuneration receiving
Name Gender Age Title Status received from remunerationthe Company from any
(inclusive of affiliate of the
tax) Company
WANG Chairman and general
Laichun Female 58 manager Incumbent 733.33 No
WANG
Laisheng Male 61 Vice Chairman Incumbent 550 No
WANG Tao Male 40 Director Vice GeneralManager Departure 141.12 No
LI Wei Male 45 Director Vice GeneralManager Departure 56.06 No
QIAN Jiwen Male 51 Director Vice GeneralManager Incumbent 116.67 No
HAO Jie Male 43 Director Vice GeneralManager Incumbent 52.8 No
HOU Lingling Female 50 Independent Director Incumbent 0 No
ZHANG Ying Female 62 Independent Director Departure 16 No
LIU Zhonghua Male 60 Independent Director Incumbent 16 No
SONGYuhong Female 54 Independent Director Incumbent 16 No
XIAYanrong Female 44 Supervisor Incumbent 100.63 No
MO Rongying Female 45 Supervisor Incumbent 80.13 No
YI Peizan Female 40 Supervisor Incumbent 16.29 No
HUANG Male 53 Board Secretary &Dawei Deputy General Manager Departure 92.29 No
Xiao Yunxi Female 38 Board Secretary Incumbent 16.61 No
WU Tiansong Male 55 Chief Financial Officer Incumbent 193.86 No
Total -- -- -- -- 2197.79 --
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 23rd meeting Refer to the Announcement on Resolutions of the 23rd
of the 5th Board February 28 2024 February 29 2024 meeting of the 5th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-008)
The 24th meeting
of the 5th Board April 24 2024 April 25 2024
Refer to the Announcement on Resolutions of the 24th
meeting of the 5th Board of Directors disclosed on
83Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
of Directors www.cninfo.com.cn the Securities Times and Shanghai
Securities News (Announcement No. 2024-022)
The 25th meeting Refer to the Announcement on Resolutions of the 25th
of the 5th Board June 3 2024 June 4 2024 meeting of the 5th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-033)
The 1st meeting Refer to the Announcement on Resolutions of the 1st
of the 6th Board July 5 2024 July 6 2024 meeting of the 6th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-056)
The 2nd meeting Refer to the Announcement on Resolutions of the 2nd
of the 6th Board August 23 2024 August 24 2024 meeting of the 6th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-065)
The 3rd meeting Refer to the Announcement on Resolutions of the 3rd
of the 6th Board September 13 2024 September 14 2024 meeting of the 6th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-073)
The 4th meeting Refer to the Announcement on Resolutions of the 4th
of the 6th Board October 25 2024 October 26 2024 meeting of the 6th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-083)
The 5th meeting Refer to the Announcement on Resolutions of the 5th
of the 6th Board December 20 2024 December 21 2024 meeting of the 6th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-096)
The 6th meeting Refer to the Announcement on Resolutions of the 6th
of the 6th Board December 30 2024 December 31 2024 meeting of the 6th Board of Directors disclosed on
of Directors www.cninfo.com.cn the Securities Times and ShanghaiSecurities News (Announcement No. 2024-104)
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
Number of Number of Whether or
board Number of board Number of not having Number of
meetings board meetings board Number ofboard been absent generalDirector attended meetings present by meetings meetings from two meetings ofduring the present in means of present by consecutive shareholders
reporting person communicati proxy absent from board attended
period on equipment meetings
WANG
Laichun 9 1 8 0 0 No 1
WANG
Laisheng 9 1 8 0 0 No 2
LI Wei 3 0 3 0 0 No 1
WANG Tao 3 1 2 0 0 No 1
QIAN Jiwen 6 1 5 0 0 No 1
HAO Jie 6 2 4 0 0 No 1
HOU
Lingling 6 1 5 0 0 No 1
ZHANG
Ying 3 1 2 0 0 No 1
LIU
Zhonghua 9 2 7 0 0 No 2
SONG
Yuhong 9 1 8 0 0 No 2
Explanation about absence from two consecutive meetings of the Board of Directors
N/A
84Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
3. Objections Raised by the Directors Regarding Matters of the Company
The 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
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 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;
took 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.
85Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
VII. Activities of the Committees of the Board of Directors during the Reporting Period
Number of Performance
Committee Members meetings Date of meeting Topics Important opinions and suggestions of other Objections (if
held duties any)
BDO China Shu Lun Pan Certified Public
Accountants introduced the 2023 annual audit plan
LIU Zhonghua and arrangements audit procedures and other
SONGYuhong Communication Meeting of issues with respect to the audit of the 2023 financialAudit Committee HOU Lingling 4 January 15 2024 Audit Committee on Annual report; and requested the colleagues of the
ZHANGYing Report Audit Work in 2023 accounting firm to pay special attention to relatedparty transactions pledged guarantees
capitalization and expensing of intangible assets
and other issues.Pursuant to the Company Law the Code of
Review the Proposal on the Corporate Governance for Listed Companies
2023Annual Report Proposal promulgated by the CSRC and the Work Rules of
on Re-appointing the theAudit Committee of the Board of Directors theLIU Zhonghua Accounting Firm Proposal on Audit Committee performed its duties diligently
Audit Committee SONGYuhongHOU Lingling 4 April 24 2024 the 2023Annual Internal Audit
supervised our internal audit policies and
implementation thereof reviewed our financial
ZHANGYing Department Work Report andProposal on the 2024 Q1 information guided the work of the Internal Audit
Internal Audit Department Department supervised and urged the audit
Work Report. conducted by the accounting firm and throughsufficient communication and discussions
unanimously approved all reports considered.Pursuant to the Company Law the Code of
Corporate Governance for Listed Companies
LIU Zhonghua promulgated by the CSRC and the Work Rules of
Audit Committee SONGYuhong 4 August 23 2024 Deliberating 2024 Interim theAudit Committee of the Board of Directors theHOU Lingling Report Audit Committee performed its duties diligently
ZHANGYing expressed opinions taking into account our actual
situation and through sufficient communication
and discussions unanimously approved the Report.Pursuant to the Company Law the Code of
Corporate Governance for Listed Companies
LIU Zhonghua promulgated by the CSRC and the Work Rules of
Audit Committee SONGYuhong theAudit Committee of the Board of Directors theHOU Lingling 4 October 25 2024 Deliberating 2024 Q3 Report Audit Committee performed its duties diligently
ZHANGYing expressed opinions taking into account our actual
situation and through sufficient communication
and discussions unanimously approved the Report.
86Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 Remuneration andAppraisal
Reviewed the implementation Committee of the Board of Directors the
of the performance appraisal Remuneration and Appraisal Committee reviewed
remuneration and incentive plan the remuneration of the directors supervisors and
for the directors and executives executives and determined that we are developing
Remuneration and LIU Zhonghua in the preceding year put and improving fair and effective performance
Appraisal SONGYuhong 4 January 15 2024 forward a reward proposal for appraisal criteria and incentive and restraint
Committee HOU Lingling the directors and executives mechanisms for executives and the remunerationZHANGYing taking into account our actual of our executives consists of basic monthly salaries
business situation and studied and year-end performance-based pay. On the basis
the remuneration and appraisal of such understanding and proposal we properly
plan for the next year. adjusted the basic monthly salaries of certaindirectors and executives in order to reflect and
produce the effect of incentive and fairness. The
remuneration of our directors supervisors and
executives during the reporting period is true and
conforms to our performance metrics.Review the Proposal on
Adjusting the Exercise Price of The Compensation and Nomination Committee in
the 2018 2019 2021 and 2022 accordance with the relevant provisions of the
Stock Option Incentive Plans "Company Law" the "Guidelines for theGovernance of Listed Companies" of the China
Remuneration and LIU Zhonghua and Canceling Part of the Stock
Appraisal SONGYuhong 4 July 5 2024 Options under the 2019 Stock
Securities Regulatory Commission and the
"Working Rules of the Board Compensation and
Committee HOU Lingling Option Incentive Plan and theZHANGYing Proposal on the Fulfillment of Nomination Committee" carried out its work
Exercise Conditions for the diligently and responsibly and proposed relevant
Fifth Exercise Period of the opinions based on the Company's actual situation.First Grant under the 2019 After full communication and discussion all
Stock Option Incentive Plan. proposals were unanimously approved.Review the Proposal on The Compensation and Nomination Committee in
Adjusting the Number of Stock accordance with the relevant provisions of the
Options under the 2021 Stock "Company Law" the "Guidelines for the
LIU Zhonghua Option Incentive Plan Reserve Governance of Listed Companies" of the ChinaRemuneration and SONGYuhong Grant and Canceling Part of the Securities Regulatory Commission and theAppraisal 4 October 25 2024 Stock Options and the Proposal "Working Rules of the Board Compensation and
Committee HOU LinglingZHANGYing on the Fulfillment of Exercise Nomination Committee" carried out its workConditions for the Second diligently and responsibly and proposed relevant
Exercise Period of the 2021 opinions based on the Company's actual situation.Stock Option Incentive Plan After full communication and discussion all
Reserve Grant. proposals were unanimously approved.Remuneration and LIU Zhonghua 4 December 20 2024 Review the Proposal on The Compensation and Nomination Committee in
87Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Appraisal SONGYuhong Adjusting the Number of Stock accordance with the relevant provisions of the
Committee HOU Lingling Options under the 2021 Stock "Company Law" the "Guidelines for the
ZHANGYing Option Incentive Plan First Governance of Listed Companies" of the China
Grant and Canceling Part of the Securities Regulatory Commission and the
Stock Options the Proposal on "Working Rules of the Board Compensation and
the Fulfillment of Exercise Nomination Committee" carried out its work
Conditions for the Third diligently and responsibly and proposed relevant
Exercise Period of the 2021 opinions based on the Company's actual situation.Stock Option Incentive Plan After full communication and discussion all
First Grant and the Proposal on proposals were unanimously approved.Canceling Unexercised Stock
Options of the Company's
Stock Option Incentive Plan
that Have Been Unlocked but
Expired.Proposal Title: "Proposal on the Identification and
Response Strategies of Risks and Opportunities
The Strategy Committee in Related to the Company's Sustainableaccordance with the relevant Development”
provisions of the "Company Proposal Content: Review the latest risk and
Law" "Guidelines for the opportunity identification results and response
Governance of Listed strategies including evaluating climate change
Companies" "Articles of related risks and opportunities the science-based
Association" "Working Rules carbon targets roadmap integrating clean
of the Board Strategy technology related businesses into the Company's
Committee" and other relevant strategic planning and other key matters; review
WANG Laichun regulations summarized and the progress of environmental targets such as
Strategy LIU Zhonghua reviewed the Company's major carbon emissions and water management and
Committee ZHANGYing 1 March 10 2024 matters in 2023; reviewed the review and approve the scheme linking executive
HOU Lingling "Proposal on the Identification compensation with medium and long-term science-
and Response Strategies of based carbon targets.Risks and Opportunities Pursuant to the Company Law the Code of
Related to the Company's Corporate Governance for Listed Companies
Sustainable Development"; promulgated by the CSRC and the Work Rules of
reported on the Company's the Strategy Committee of the Board of Directors
strategic development plan for the Strategy Committee thoroughly analyzed and
2024; and researched major studied the industry in which we operate and put
strategic matters in the forward reasonable suggestions on the planning for
Company's development. and implementation of the development strategies
in respect of business R&D and new products
which produced significant effect.Nomination LIU Zhonghua In conjunction with regulatory Reviewed the qualifications for appointment job
Committee SONGYuhong 1 May 27 2024 rules and company strategic competence and other relevant information ofHOU Lingling needs conducted a point-by- senior management nominated by the Company
88Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
ZHANGYing point evaluation of the including the General Manager Deputy General
professional background Managers Chief Financial Officer and Board
performance capabilities and Secretary; reviewed the qualifications for
compliance of candidates for appointment and independence and other relevant
directors of the Sixth Board of information of candidates for independent directors
Directors and the Company's of the Sixth Board of Directors; reviewed the
senior management ensuring qualifications for appointment and other relevant
that the nomination procedures information of candidates for non-independent
are legal and compliant and the directors of the Sixth Board of Directors.candidates' qualifications meet
corporate governance
requirements.
89Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
VIII. Activities of the Board of Supervisors
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. Employees
1. Number Structure of Profession and Education of Employees
Number of current employees of the parent at the end of the
reporting period (person) 658
Total number of current employees of the major subsidiaries at
the end of the reporting period (person) 277445
Total number of current employees at the end of the reporting
period (person) 278103
Total number of salaried employees during the reporting period
(person) 278103
Total number of retired employees to or for whom the parent
and the major subsidiaries are obligated to make payments 0
(person)
Structure of profession
Type of profession Number of employees (person)
Production staff 235233
Sales staff 4273
Technical staff 20877
Financial staff 491
Administrative staff 6015
Management staff 11214
Total 278103
Education
Degree of education Number of employees (person)
Undergraduate 24752
College 34623
Secondary specialized school senior middle school and below 218728
Total 278103
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 and
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
90Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 examplewith respect to senior middle and grassroots managers and key reserve talents with great potentialities we conduct the “StarCultivation 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” 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. OutsourcedWorkers
□Applicable □N/A
X. 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
The Company's General Meeting of Shareholders reviewed and approved the 2023 annual profit distribution plan: based on a
total share capital of 7178011313 shares distributed a cash dividend of RMB 3 (tax included) for every 10 shares to all
shareholders totaling RMB 2153403393.90 (tax included) in cash dividends. The remaining undistributed profit will be carried
forward for distribution in subsequent years. If the Company's total share capital changes during the period from the date of
disclosure of the pre-plan to the equity distribution registration date due to share repurchase exercise of equity incentives share
91Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
repurchase and cancellation from major asset restructuring etc. the Company will adjust the per-share distribution ratio
accordingly while keeping the total distribution amount unchanged.From the disclosure of the 2023 annual profit distribution pre-plan to the implementation period the Company's share capital
increased by a total of 25304331 shares due to the independent exercise of the stock option incentive plan and conversion of
convertible corporate bonds into shares. The Company's total share capital increased from 7178011313 shares at the time of pre-
plan disclosure to 7203315644 shares. In accordance with the principle of keeping the total distribution amount unchanged the
Company's 2023 annual profit distribution plan was adjusted to: based on the Company's current share capital of 7203315644
shares distribute RMB 2.989461 (tax included) for every 10 shares to all shareholders totaling RMB 2153403393.90 (tax
included) in cash dividends. The remaining undistributed profit will be carried forward for distribution in subsequent years.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
clear and definite Yes
Whether the relevant decision-making process and mechanism
are sound Yes
Whether the independent directors have performed their duties
and exercised their functions Yes
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 Yes
legitimate rights 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
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
tax) 2
Share capital based on which the distribution proposal was
made (share) 7247395805
Amount of cash dividends (RMB) (inclusive of tax) 1449479161.00
Amount of cash dividends distributed in other ways (such as
share repurchase) (RMB) 0.00
Total amount of cash dividends (including other ways) (RMB) 1449479161
Distributable profit (RMB) 8429793298.42
Proportion of total cash dividends (including other ways) to the
distributable profit 100%
Particulars of cash dividends distributed for the reporting period
Other
Particulars of the proposal of profit distribution or for transfer of capital reserve to share capital
Our 2024 Profit Distribution Proposal is as follows: to distribute to all shareholders a cash dividend of RMB2 (inclusive of tax)
per 10 shares on the basis of the total share capital of 7247395805 shares totaling RMB1449479161 (inclusive of tax) and to
92Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 shares 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.XI. Implementation of Share Incentive Plans Employee Stock Ownership Plans and Other
Employee Incentives Granted by the Company
□Applicable □N/A
1. Share Incentives
1. Share Incentives
(1) 2018 Stock Option Incentive Plan
On July 5 2024 the Company held the First Meeting of the Sixth Board of Directors and the First Meeting of the Sixth
Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan". In
accordance with the relevant provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the
Company's "2018 Stock Option Incentive Plan (Draft)" "2018 Stock Option Incentive Plan Implementation Assessment
Management Measures" and other relevant regulations and authorized by the Company's Second Interim Shareholders' Meeting
in 2018 it was agreed to adjust the exercise price of the 2018 stock option incentive plan due to the Company's implementation of
the 2023 annual equity distribution plan. After adjustment the exercise price of the unexercised stock options was adjusted from
RMB 9.93/share to RMB 9.63/share. For details see "Announcement on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan"
(Announcement No. 2024-056).
(2) 2019 Stock Option Incentive Plan
On February 28 2024 the Company held the Twenty-Third Meeting of the Fifth Board of Directors and the Twenty-Third
Meeting of the Fifth Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Number of Stock Options
under the 2019 Stock Option Incentive Plan Reserve Grant and Canceling Part of the Stock Options" and the "Proposal on the
Fulfillment of Exercise Conditions for the Fourth Exercise Period of the 2019 Stock Option Incentive Plan Reserve Grant". In
accordance with the relevant provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the
Company's "2019 Stock Option Incentive Plan (Draft)" "2019 Stock Option Incentive Plan Implementation Assessment
Management Measures" and other relevant regulations and authorized by the Company's First Interim Shareholders' Meeting in
2019 it was agreed to cancel some options from the 2019 stock option incentive plan reserve grant due to reasons such as
departure of incentive recipients or failure to meet assessment standards. After this cancellation the number of granted incentive
recipients was adjusted from 223 to 214 and the number of remaining stock options was adjusted from 7440476 to 7166074. At
the same time combining the Company's achieved performance in 2022 and the personal performance appraisal results of each
incentive recipient in 2022 the Board of Directors believes that the exercise conditions for the fourth exercise period of the 2019
stock option incentive plan reserve grant have been fulfilled and agrees that the 214 incentive recipients of the 2019 stock option
incentive plan reserve grant can exercise their options in the fourth exercise period through independent exercise. The number of
stock options expected to be exercised is 3578439 (the actual number of exercised shares is subject to the registration by China
Securities Depository and Clearing Corporation Limited Shenzhen Branch) and the exercise price is RMB 13.35/share. For details
see "Announcement on the Fulfillment of Exercise Conditions for the Fourth Exercise Period of the 2019 Stock Option Incentive
Plan Reserve Grant" (Announcement No. 2024-011).
93Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
On July 5 2024 the Company convened the First Meeting of the Sixth Board of Directors and the First Meeting of the Sixth
Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan" and the
"Proposal on the Fulfillment of Exercise Conditions for the Fifth Exercise Period of the First Grant under the 2019 Stock Option
Incentive Plan". In accordance with the relevant provisions of the "Administrative Measures for Equity Incentives for Listed
Companies" the Company's "2019 Stock Option Incentive Plan (Draft)" "2019 Stock Option Incentive Plan Implementation
Assessment Management Measures" and other relevant regulations authorized by the Company's First Interim Shareholders'
Meeting in 2019 it was agreed to adjust the exercise price of the 2019 stock option incentive plan and cancel some options due to
reasons such as the Company's implementation of the 2023 annual equity distribution plan departure of incentive recipients and
failure to meet incentive recipient assessment standards. After adjustment the number of incentive recipients for the first grant was
adjusted from 310 to 298 the number of stock options for the first grant was adjusted from 15605490 to 15238124 and the
exercise price of the stock options for the first grant and reserve grant was adjusted from RMB 13.35/share to RMB 13.05/share.At the same time combining the Company's achieved performance in 2023 and the personal performance appraisal results of each
incentive recipient in 2023 the Board of Directors believes that the exercise conditions for the fifth exercise period of the first
grant under the 2019 stock option incentive plan have been fulfilled and agrees that the 298 incentive recipients of the first grant
under the 2019 stock option incentive plan can exercise their options in the fifth exercise period through independent exercise. The
number of stock options expected to be exercised is 15238124 (the actual number of exercised shares is subject to the registration
by China Securities Depository and Clearing Corporation Limited Shenzhen Branch) and the exercise price is RMB 13.05/share.For details see "Announcement on Adjusting the Exercise Price of the 2018 2019 2021 and 2022 Stock Option Incentive Plans
and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan" (Announcement No. 2024-059) and
"Announcement on the Fulfillment of Exercise Conditions for the Fifth Exercise Period of the First Grant under the 2019 Stock
Option Incentive Plan" (Announcement No. 2024-060).On December 20 2024 the Company convened the Fifth Meeting of the Sixth Board of Directors and the Fifth Meeting of
the Sixth Supervisory Committee and reviewed and approved the "Proposal on Canceling Unexercised Stock Options of the
Company's Stock Option Incentive Plan that Have Been Unlocked but Expired". In accordance with the relevant provisions of the
"Administrative Measures for Equity Incentives for Listed Companies" the Company's "2019 Stock Option Incentive Plan
(Draft)" and other relevant regulations due to reasons such as incentive recipients not fully exercising their options within the
exercisable period the stock options under the 2019 stock option incentive plan reserve grant for the fourth exercise period that
expired unexercised are canceled. For details see "Announcement on Canceling Unexercised Stock Options of the Company's
Stock Option Incentive Plan that Have Been Unlocked but Expired" (Announcement No. 2024-101).
(3) 2021 Stock Option Incentive Plan
On July 5 2024 the Company held the First Meeting of the Sixth Board of Directors and the First Meeting of the Sixth
Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan". In
accordance with the relevant provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the
Company's "2021 Stock Option Incentive Plan (Draft)" "2021 Stock Option Incentive Plan Implementation Assessment
Management Measures" and other relevant regulations authorized by the Company's First Interim Shareholders' Meeting in 2021
it was agreed to adjust the exercise price of the 2021 stock option incentive plan due to the Company's implementation of the 2023
annual equity distribution plan. After adjustment the exercise price of the unexercised stock options was adjusted from RMB
35.63/share to RMB 35.33/share. For details see "Announcement on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan"
(Announcement No. 2024-059).
On October 25 2024 the Company convened the Fourth Meeting of the Sixth Board of Directors and the Fourth Meeting of
the Sixth Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Number of Stock Options under the
94Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2021 Stock Option Incentive Plan Reserve Grant and Canceling Part of the Stock Options" and the "Proposal on the Fulfillment of
Exercise Conditions for the Second Exercise Period of the 2021 Stock Option Incentive Plan Reserve Grant". In accordance with
the relevant provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the Company's "2021 Stock
Option Incentive Plan (Draft)" "2021 Stock Option Incentive Plan Implementation Assessment Management Measures" and other
relevant regulations authorized by the Company's First Interim Shareholders' Meeting in 2021 it was agreed to cancel some
options from the 2021 stock option incentive plan reserve grant due to reasons such as departure of incentive recipients or failure
to meet assessment standards. After this cancellation the number of granted incentive recipients was adjusted from 329 to 303 and
the number of exercisable options for this period was adjusted from 2312700 to 2089224. At the same time combining the
Company's achieved performance in 2022 and the personal performance appraisal results of each incentive recipient in 2022 the
Board of Directors believes that the exercise conditions for the second exercise period of the 2021 stock option incentive plan
reserve grant have been fulfilled and agrees that the 303 incentive recipients of the 2021 stock option incentive plan reserve grant
can exercise their options in the second exercise period through independent exercise. The number of stock options expected to be
exercised is 2089224 (the actual number of exercised shares is subject to the registration by China Securities Depository and
Clearing Corporation Limited Shenzhen Branch) and the exercise price is RMB 35.33/share. For details see "Announcement on
Adjusting the Number of Stock Options under the 2021 Stock Option Incentive Plan Reserve Grant and Canceling Part of the
Stock Options" (Announcement No.: 2024-087) and "Announcement on the Fulfillment of Exercise Conditions for the Second
Exercise Period of the 2021 Stock Option Incentive Plan Reserve Grant" (Announcement No.: 2024-088).On December 20 2024 the Company convened the Fifth Meeting of the Sixth Board of Directors and the Fifth Meeting of
the Sixth Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Number of Stock Options under the
2021 Stock Option Incentive Plan First Grant and Canceling Part of the Stock Options" the "Proposal on the Fulfillment of
Exercise Conditions for the Third Exercise Period of the 2021 Stock Option Incentive Plan First Grant" and the "Proposal on
Canceling Unexercised Stock Options of the Company's Stock Option Incentive Plan that Have Been Unlocked but Expired". In
accordance with the relevant provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the
Company's "2021 Stock Option Incentive Plan (Draft)" "2021 Stock Option Incentive Plan Implementation Assessment
Management Measures" and other relevant regulations authorized by the Company's First Interim Shareholders' Meeting in 2021
it was agreed to cancel some options from the 2021 stock option incentive plan first grant due to reasons such as departure of
incentive recipients or failure to meet assessment standards and to cancel all expired unexercised options from the three phases of
the incentive plan due to reasons such as incentive recipients not fully exercising their options within the exercisable period. After
this cancellation the number of incentive recipients for the first grant under the 2021 stock option incentive plan was adjusted
from 899 to 849 and the number of exercisable options for this period was adjusted from 8855826 to 8214326. For details see
"Announcement on Canceling Unexercised Stock Options of the Company's Stock Option Incentive Plan that Have Been
Unlocked but Expired" (Announcement No. 2024-099).At the same time combining the Company's achieved performance in 2023 and the personal performance appraisal results of
each incentive recipient in 2023 the Board of Directors believes that the exercise conditions for the third exercise period of the
first grant under the 2021 stock option incentive plan have been fulfilled and agrees that the 845 incentive recipients of the first
grant under the 2021 stock option incentive plan can exercise their options in the third exercise period through independent
exercise. The number of stock options expected to be exercised is 8214326 (the actual number of exercised shares is subject to
the registration by China Securities Depository and Clearing Corporation Limited Shenzhen Branch) and the exercise price is
RMB 35.33/share. For details see "Announcement on the Fulfillment of Exercise Conditions for the Third Exercise Period of the
2021 Stock Option Incentive Plan First Grant" (Announcement No. 2024-100).
(4) 2022 Stock Option Incentive Plan
On June 3 2024 the Company convened the Twenty-Fifth Meeting of the Fifth Board of Directors and the Twenty-Fifth
Meeting of the Fifth Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Number of Stock Options
under the 2022 Stock Option Incentive Plan and Canceling Part of the Stock Options" and the "Proposal on the Fulfillment of
95Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Exercise Conditions for the First Exercise Period of the 2022 Stock Option Incentive Plan". In accordance with the relevant
provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the Company's "2022 Stock Option
Incentive Plan (Draft)" "2022 Stock Option Incentive Plan Implementation Assessment Management Measures" and other
relevant regulations authorized by the Company's Third Interim Shareholders' Meeting in 2022 it was agreed to cancel some
options from the 2022 stock option incentive plan due to reasons such as departure of incentive recipients or failure to meet
assessment standards. After this cancellation the number of granted incentive recipients was adjusted from 3505 to 3220 and the
number of stock options unlocked in the first period was adjusted from 33702600 to 31288960. For details see "Announcement
on the Fulfillment of Exercise Conditions for the First Exercise Period of the 2022 Stock Option Incentive Plan" (Announcement
No. 2024-037).At the same time combining the Company's achieved performance in 2023 and the personal performance appraisal results of
each incentive recipient in 2023 the Board of Directors believes that the exercise conditions for the first exercise period of the
2022 stock option incentive plan have been fulfilled and agrees that the 3216 incentive recipients of the 2022 stock option
incentive plan can exercise their options in the first exercise period through independent exercise. The number of stock options
expected to be exercised is 31288960 (the actual number of exercised shares is subject to the registration by China Securities
Depository and Clearing Corporation Limited Shenzhen Branch) and the exercise price is RMB 30.22/share. For details see
"Announcement on Adjusting the Number of Stock Options under the 2022 Stock Option Incentive Plan and Canceling Part of the
Stock Options" (Announcement No. 2024-036).On July 5 2024 the Company held the First Meeting of the Sixth Board of Directors and the First Meeting of the Sixth
Supervisory Committee and reviewed and approved the "Proposal on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan". In
accordance with the relevant provisions of the "Administrative Measures for Equity Incentives for Listed Companies" the
Company's "2022 Stock Option Incentive Plan (Draft)" "2022 Stock Option Incentive Plan Implementation Assessment
Management Measures" and other relevant regulations authorized by the Company's Third Interim Shareholders' Meeting in 2022
it was agreed to adjust the exercise price of the 2022 stock option incentive plan due to the Company's implementation of the 2023
annual equity distribution plan. After adjustment the exercise price of the unexercised stock options was adjusted from RMB
30.22/share to RMB 29.92/share. For details see "Announcement on Adjusting the Exercise Price of the 2018 2019 2021 and
2022 Stock Option Incentive Plans and Canceling Part of the Stock Options under the 2019 Stock Option Incentive Plan"
(Announcement No. 2024-059).
96Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Share incentives granted to directors and executives
□Applicable □N/A
Unit: shares
Number of Exercise Market Number of
Opening additional Number of Number of
price of
shares Closing price at Opening Number of additional Grant
balance of stock shares shares exercised balance of the end of balance of shares restricted price of
Closing
Name Title stock options exercisable exercised the vested shares restricted
balance of
options granted during the during the
during the stock reporting restricted during the granted shares restricted
held during the reporting reporting
reporting options period shares reporting during the (RMB per shares
reporting period period period held (RMB per held(RMB per period reporting share)
held
period share) share) period
Director
WANG Vice
Tao General 1000000 0 200000 200000 29.92 800000 40.76 0 0 0 0 0
Manager
Director
WANG Vice
Tao General 337993 0 168997 168997 13.35 168996 40.76 0 0 0 0 0
Manager
Director
WANG Vice
Tao General 432630 0 432630 432630 9.63 0 40.76 0 0 0 0 0
Manager
Deputy
LI Wei General 337992 0 337992 337992 9.93 0 40.76 0 0 0 0 0
Manager
Deputy
LI Wei General 168996 0 168996 168996 13.05 0 40.76 0 0 0 0 0
Manager
Deputy
LI Wei General 168997 0 168997 168997 13.35 0 40.76 0 0 0 0 0
Manager
Deputy
LI Wei General 1000000 0 200000 200000 29.92 800000 40.76 0 0 0 0 0
Manager
Director
QIAN Vice
Jiwen General 712150 0 712150 712150 9.63 0 40.76 0 0 0 0 0
Manager
97Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Director
QIAN Vice
Jiwen General 675985 0 675985 337993 13.35 337992 40.76 0 0 0 0 0
Manager
Director
QIAN Vice
Jiwen General 1290000 0 258000 258000 29.92 1032000 40.76 0 0 0 0 0
Manager
WU Chief
Tiansong Financial 131817 0 131817 131817 9.93 0 40.76 0 0 0 0 0Officer
WU Chief
Tiansong Financial 85198 0 85198 85198 13.35 0 40.76 0 0 0 0 0Officer
WU Chief
Tiansong Financial 135197 0 135197 110000 13.05 25197 40.76 0 0 0 0 0Officer
WU Chief
Tiansong Financial 400000 0 80000 20000 29.92 380000 40.76 0 0 0 0 0Officer
HUANG Deputy
Dawei General 219695 0 219695 219695 9.93 0 40.76 0 0 0 0 0Manager
HUANG Deputy
Dawei General 500000 0 100000 100000 29.92 400000 40.76 0 0 0 0 0Manager
Xiao Board
Yunxi Secretary 8169 0 8169 8169 9.93 0 40.76 0 0 0 0 0
Xiao Board
Yunxi Secretary 100000 0 20000 20000 30.22 80000 40.76 0 0 0 0 0
Total -- 7704819 0 4103823 3680634 -- 4024185 -- 0 0 0 -- 0
98Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
XII. 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
XIII. Management and Control of Subsidiaries during the Reporting Period
Problems
Company Integration plan Progress of Solutions Progress of Subsequentintegration encountered adopted solution solution
during
99Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
integration
-------
XIV. Self-assessment Report on Internal Controls or Auditor’s Report on Internal Controls
1. Self-assessment Report on Internal Controls
Date of disclosure of the self-assessment report on internal controls in
its entirety April 26 2025
Disclosure reference of the self-assessment report on internal controls Internal Control Certification Report 2024 of Luxshare
in its entirety Precision Industry Co. Ltd. published onwww.cninfo.com.cn
Ratio of total assets of the entities covered by the assessment to total
assets recorded in the consolidated financial statements of the 78.90%
Company
Ratio of total operating revenue of the entities covered by the
assessment to total operating revenue recorded in the consolidated 83.23%
financial statements of the Company
Criteria for determination of deficiencies
Category Financial reporting Non-financial reporting
1. The material weaknesses in internal control over financial
reporting include: (A) fraud on the part of directors
supervisors and executives; (B) failure to correct any material
weakness in internal control within a reasonable time after the 1. The material weaknesses in internal control over
same was identified and reported to the management; (C) non-financial reporting include: (A) any serious
ineffective control environment; (D) any material misstatement violation of the significant national laws and
in the financial report for the current period that is identified regulations; (B) great outflow of management and
by the external auditor but fails to be identified through technical personnel on key posts; (C) absence of or
internal control; (E) any serious violation of the laws and ineffective control system for important business
regulations; (F) the Company running at a loss for consecutive relating to the production and operation of the
years due to any reason other than policy-related loss which Company; (D) ineffective internal control over
might threaten the Company’s ability to continue as a going information disclosure resulting in any public
Qualit concern; and (G) ineffective supervision by the management condemnation of the Company by any regulatory
ative and related functional departments over the internal control. 2. authority; and (E) failure to correct any problem in
criteria The significant deficiencies in internal control over financial particular any material weakness or significant
reporting include: (A) failure to select and apply accounting deficiency identified in any assessment of internal
policies pursuant to the generally accepted accounting controls. 2. The significant deficiencies in internal
principles; (B) failure to establish anti-fraud procedures and control over non-financial reporting include: (A)
controls; (C) absence of or ineffective control system for defects in important business policies or system or
important business; (D) lack of internal controls in and unsound internal control system; and (B) failure to
disorderly management of subsidiaries; and (E) great outflow review any information disclosed externally and
of or frequent changes in senior officers (especially those in untruthfulness of any information disclosed. 3.charge of internal control financial and human resources General deficiencies in internal control over financial
departments) or great outflow of personnel on the relevant reporting include deficiencies in control other than
posts. 3. General deficiencies in internal control over financial material weakness and significant deficiency.reporting include deficiencies in control other than material
weakness and significant deficiency.
1. Material weakness: (1) amount of misstated operating
revenue ≥ 0.5% of total operating revenue; (2) amount of 1. Material weakness: resulting in a direct loss of
misstated profit ≥ 5% of total profit; (3) amount of misstated more than RMB12 million and having a material
assets ≥ 0.5% of total assets; (4) amount of misstated owners’ adverse effect on the Company. 2. Significant
equity ≥ 0.5% of total owners’ equity. 2. Significant deficiency: deficiency: resulting in a direct loss of more than
(1) 0.2% of total operating revenue ≤ amount of misstated RMB3 million and not more than RMB12 million
Quanti operating revenue < 0.5% of total operating revenue; (2) 2% of and any penalty imposed by any competent
tative total profit ≤ amount of misstated profit < 5% of total profit; government authority of the country but not having
criteria (3) 0.2% of total assets ≤ amount of misstated assets < 0.5% of an adverse effect on the Company. 3. General
total assets; (4) 0.2% of total owners’ equity ≤ amount of deficiency: resulting in a direct loss of not more than
misstated owners’ equity < 0.5% of total owners’ equity. 3. RMB3 million and any penalty imposed by any
General deficiency: (1) amount of misstated operating revenue competent government authority at the provincial
< 0.2% of total operating revenue; (2) amount of misstated level or below but not having an adverse effect on
profit < 2% of total profit; (3) amount of misstated assets < the Company.
0.2% of total assets; (4) amount of misstated owners’ equity <
100Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
0.2% of total owners’ equity.
Number of material weaknesses in
financial reporting 0
Number of material weaknesses in non-
financial reporting 0
Number of significant deficiencies in
financial reporting 0
Number of significant deficiencies in
non-financial reporting 0
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 2024.Disclosure of the internal control audit report Disclosed
Date of disclosure of the audit report on internal controls in its
entirety April 26 2025
Disclosure reference of the audit report on internal controls in Internal Control Audit Report 2024 of Luxshare Precision
its 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
reporting No
The accounting firm issued a modified internal control certification report
□Yes□No
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
XV. 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 were 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.
101Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Section V Environment and Social Responsibilities
I. Significant Environmental Issues
The listed company and its subsidiaries are the key pollutant discharge units published by the environmental protection
departments
□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 CNC 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. Effluent Discharge Standards for 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. Pollution Control Standards for Solid Waste
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 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);
102Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The odor generated in the wastewater biochemical process complies with the corresponding standards 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. Effluent Discharge Standards for 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. Pollution Control Standards for Solid Waste
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 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
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). The emission concentrations of
SO2 particulate matter NOx and smoke blackness from the flue gas generated by natural gas combustion in gas boilers shall
comply with the emission standards for gas boilers in Table 1 of the "Emission Standard of Air Pollutants for Boilers"
(DB32/4385-2022).
2. Effluent Discharge Standards for Water Pollutants
103Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The Company's nickel-containing and chromium-containing wastewater is reused after being treated by the wastewater
pretreatment facility in the factory area. The total chromium and total nickel in the discharge outlet of the wastewater pretreatment
facility comply with the standard values for production workshop facility discharge outlets in Table 3 of the "Emission Standard of
Pollutants from Electroplating" (GB21900-2008). The receiving water quality of the industrial park's sewage treatment plant
Rugao Fugang Water Treatment Co. Ltd. complies with the Level 3 standard in Table 4 of the "Integrated Wastewater Discharge
Standard" (GB8978-1996). Ammonia nitrogen total nitrogen and total phosphorus comply with the receiving requirements of
Rugao Fugang Water Treatment Co. Ltd. Total aluminum complies with the standard in Table 3 of the "Emission Standard of
Pollutants from Electroplating" (GB21900-2008). The benchmark wastewater discharge per unit product complies with the
requirements in Table 2 of the "Emission Standard of Pollutants from Electroplating" (GB21900-2008). The tailwater of the
industrial park's sewage treatment plant is discharged into the central river after reaching the Level 1 A standard in the "Discharge
Standard of Pollutants for Municipal Wastewater Treatment Plants" (GB18918-2002). The pollutants in the recycled water in the
factory area are referred to and comply with the standard values for "supplementary water for open circulating cooling water
systems washing water" in Table 1 of the "Water Quality Standards for Industrial Water from Reclaimed Urban Wastewater"
(GB/T19923-2005). Wastewater containing Class I metals is not discharged externally; heavy metals such as chromium and nickel
should not be detected in general wastewater oily wastewater organic wastewater phosphorus-containing wastewater and other
production wastewater; the discharge of rainwater etc. should comply with the local management requirements of Nantong City
and heavy metals such as chromium and nickel should not be detected.
3. Emission Standards of Noise Pollution
The noise emissions at the boundaries of each factory during the Company's operation period comply with the Class 3
standard in the "Emission Standard for Industrial Enterprise Boundary Environment Noise" (GB12348-2008).
4. Pollution Control Standards for Solid Waste
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 Accessories (Jia Shan) 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. Effluent Discharge Standards for 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 complies with Pollutants Discharge Standards
104Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
for Electronic Industry (GB 39731-2020). The heavy metal wastewater reuse index in the anodizing surface treatment process
complies with the Discharge Standard of Electroplating Pollutants (DB33/2260-2020).
3. Emission Standards of Noise Pollution
We 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. Pollution Control Standards for Solid Waste
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).V. Luxcase Precision Technology (Kunshan) Co. Ltd.
1. Exhaust Gas Emission Standards
The non-methane total hydrocarbons tin and its compounds and particulate matter at the factory boundary comply with the
standards in Table 3 of the "Integrated Emission Standard of Atmospheric Pollutants" (DB32/4041-2021) of Jiangsu Province; the
non-methane total hydrocarbons within the factory area comply with the standards in Table 2 of the "Integrated Emission Standard
of Atmospheric Pollutants" (DB32/4041-2021) of Jiangsu Province. All atmospheric pollutants can be discharged up to standard.
2. Wastewater Emission Standards
The main pollutants in the wastewater of this project are COD SS ammonia nitrogen and total phosphorus which are
discharged into the municipal sewage pipeline for treatment at Kunshan Development Zone Kuncheng Precision Water
Purification Co. Ltd.
3. Noise Emission Standards
The factory boundary noise can reach the Class 3 standard in the "Emission Standard for Industrial Enterprise Boundary
Environment Noise" (GB12348-2008).
4. Solid Waste Emission Standards
* In daily operation a solid waste management plan should be formulated and the generation storage utilization and
disposal of solid waste should be included in production records and a solid waste management ledger and an internal hazardous
waste handover system between the enterprise and collecting and storage departments should be established. Management of
hazardous waste packaging and storage should be strengthened and the hazardous waste transfer manifest system should be
strictly enforced. The transportation of hazardous waste should comply with the technical regulations for preventing pollution from
hazardous waste transportation in this city. It is prohibited to provide or entrust hazardous waste to units without a hazardous waste
operation permit for collection storage utilization disposal and other business activities.* The construction unit should declare and register hazardous waste through the "Jiangsu Province Hazardous Waste
Dynamic Management Information System" (Jiangsu Provincial Department of Ecology and Environment website).* The enterprise is the responsible party for the prevention and control of solid waste pollution and should establish a risk
management and emergency response system implement the environmental monitoring plan transfer manifest management
system and relevant national and provincial regulations on transfer management safe operation procedures for disposal processes
personnel training and assessment system archives management system entire disposal process management system etc.Environmental protection administrative permits
I. Luxcase Precision Technology (Yancheng) Co. Ltd.Environmental Impact Assessment Report (Table):
1. Computer component production project (phase I);
105Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 [2021] No. 02001;
5. Yan Huan Shen [2022] No. 02003;
6. Yan Huan Shen [2022] 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;
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.
Pollutant Discharge Permit :
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;
6. Environmental Impact Report Form for Precision Parts Renovation and Expansion 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;
6. Jin Huan Xu [2025] No. 26;
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.
106Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Pollutant Discharge Permit :
Pollution Permit No.:91310000572654085A001V Valid period: from January 30 2022 to January 29 2027
III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.
1. Approval and Reply of Environmental Assessment:
Approval of the Environmental Impact Report for Rugao Rida Intelligent Manufacturing Technology Co. Ltd.'s Intelligent
Terminal Precision Module Project by the Changjiang Town People's Government (JZHSF [2022] No. 2)
2. Discharge Permit:
Completed the application for the discharge permit on October 24 2023 permit number: 91320682MA22R08P5J001W
valid from October 24 2023 to October 23 2028;
Completed the change of the discharge permit on November 22 2024 permit number: 91320682MA22R08P5J001W valid
from October 24 2023 to October 23 2028.IV. Ri Shan Computer Accessories (Jia Shan) Co. Ltd.Discharge permit number validity period (91330421336400470U001Z): from November 22 2024 to November 21 2029.V. Luxcase Precision Technology (Kunshan) Co. Ltd.Discharge permit number validity period (91330583MAC1YPEC08001X): from January 18 2025 to January 17 2030.Industry standards and discharge of pollutants involved in production and business activities
Category of Name of
Name of the main main Number
Company or pollutants pollutants Discharge of Distribution Emission Pollutant discharge Total Total Excessive
its and and method discharge of discharge concentration/ standardsoutlets intensity implemented emissions
approved
emissions emissionssubsidiaries characteristic characteristic outlets
pollutants pollutants
The emission
standards for
electroplating
Luxcase pollutants are
Precision Treatment 36 specified in GB
Technology Air Nitrogen standards Area B C 21900-2008 while 10.905 12.975037
(Yancheng) pollutants oxide high-altitude
11 A G F and I Mg/standardcubic meter the emission tons tons
/
Co. Ltd. emissions standards foratmospheric
pollutants from
boilers are outlined
in DB32-4385-2022.Atmospheric
Pollutant
Luxcase Comprehensive
Precision Treatment 1.125 Mg/ Emission Standard
Technology Air Sulfur standards 11 Area B C standard (DB32/4041-2021) 0.149 / /
(Yancheng) pollutants dioxide high-altitude A G F and I cubic meter and Boiler tons
Co. Ltd. emissions AtmosphericPollutant Emission
Standard (DB32-
4385-2022)
Luxcase Atmospheric
Precision Treatment
Technology Air
Total non- Area B C 2.05 Mg/ Pollutant
pollutants methane
standards 36.047
(Yancheng) hydrocarbons high-altitude
69 A G F H standard Comprehensive / /
and I cubic meter Emission Standard tons
Co. Ltd. emissions (DB32/4041-2021)
Atmospheric
Pollutant
Luxcase Comprehensive
Precision Treatment Area B E C 2.5 Mg/ Emission Standard
Technology Air Particulate standards 68 A G F H standard (DB32/4041-2021) 11.101
(Yancheng) pollutants matter high-altitude and I cubic meter and Boiler tons
//
Co. Ltd. emissions AtmosphericPollutant Emission
Standard (DB32-
4385-2022)
Luxcase Atmospheric
Precision Treatment Area B C 0.24Mg/ Pollutant
Technology Air Sulfuric acid standardspollutants fog high-altitude 38 A G F H standard Comprehensive
1.853
tons / /(Yancheng)
Co. Ltd. emissions
and I cubic meter Emission Standard
(DB32/4041-2021)
Luxcase Air Nitric acid Treatment Area B C 4.42 Mg/ Atmospheric 25.625
Precision pollutants fog standards 34 A G F H standard Pollutant tons / /
107Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Technology high-altitude and I cubic meter Comprehensive
(Yancheng) emissions Emission Standard
Co. Ltd. (DB32/4041-2021)
Luxcase
Precision Water Suspended Controlled Sewage
Sewage
Technology pollutants matter emission 1 station main 23.67 mg/l
Comprehensive 130.037 / /
(Yancheng) outlet Emission Standard tons
Co. Ltd. GB8978-1996
Luxcase
Precision
Technology Water Ammonia Controlled
Sewage
1 station main 4.02 mg/l / 23.844 151.3535 /
(Yancheng) pollutants nitrogen emission outlet tons tons
Co. Ltd.Luxcase
Precision Sewage Sewage
Technology Water Petroleum Controlled 1 station main 0.17 mg/l Comprehensive 3.475 / /
(Yancheng) pollutants emission outlet Emission Standard tons
Co. Ltd. GB8978-1996
Luxcase
Precision Sewage
Technology Water Anionic Controlled
Sewage Comprehensive 0.189
(Yancheng) pollutants surfactant emission
1 station main 0.065 mg/l
outlet Emission Standard tons
//
Co. Ltd. GB8978-1996
Luxcase
Precision Sewage Sewage
Technology Water Controlled Comprehensive 5.442
(Yancheng) pollutants
Fluoride emission 1 station main 0.87 mg/loutlet Emission Standard tons
//
Co. Ltd. GB8978-1996
Luxcase
Precision Sewage Sewage
Technology Water Controlled Comprehensive
(Yancheng) pollutants
PH value emission 1 station main 7.7outlet Emission Standard
///
Co. Ltd. GB8978-1996
Luxcase
Precision Chemical Sewage
Technology Water oxygen Controlled
Sewage
pollutants emission 1 station main 101.67 mg/l
Comprehensive 548.399 1618.584
(Yancheng) demand outlet Emission Standard tons tons
/
Co. Ltd. GB8978-1996
Luxcase
Precision Sewage
Technology Water Total Controlled 2.826 39.770550
(Yancheng) pollutants phosphorus emission
1 station main 0.34 mg/l / tons tons /outlet
Co. Ltd.Luxcase
Precision Sewage
Technology Water Total Controlled 81.404 290.2025
(Yancheng) pollutants nitrogen emission
1 station main 6.89 mg/l /
outlet tons tons
/
Co. Ltd.Luxcase
Precision Heavy metal Recycled Electroplating
Technology wastewater Total nickel and not 4 Not 0 Pollutant Emission
(Yancheng) recycled discharged discharged Standard GB 21900-
0//
Co. Ltd. 2008
Luxcase
Precision Heavy metal Recycled Electroplating
Technology wastewater Total copper and not 4 Not 0 Pollutant Emission 0 / /
(Yancheng) recycled discharged discharged Standard GB 21900-
Co. Ltd. 2008
Luxcase
Precision Heavy metal Recycled Electroplating
Technology wastewater Total and not 4 Not 0 Pollutant Emission 0 / /
(Yancheng) recycled chromium discharged discharged Standard GB 21900-
Co. Ltd. 2008
Luxcase
Precision Heavy metal Recycled Electroplating
Technology wastewater Hexavalent and not 4 Not 0 Pollutant Emission 0 / /
(Yancheng) recycled chromium discharged discharged Standard GB 21900-
Co. Ltd. 2008
Ri Ming Atmospheric
Computer Treatment Pollutant
Accessory Air Oil mist standards
(Shanghai) pollutants high-altitude
63 Building roof 0.2 Comprehensive 0.213 / /
emissions Emission StandardCo. Ltd. (DB31_933-2015)
Ri Ming Treatment AtmosphericComputer
Accessory Air Particulate standards
Pollutant
(Shanghai) pollutants matter high-altitude
6 Building roof 2.7 Comprehensive 0.845 / /
Co. Ltd. emissions
Emission Standard
(DB31_933-2015)
Ri Ming Air Treatment Atmospheric
Computer pollutants VOC standards 3 Building roof 3.7 Pollutant 0.037 / /
108Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Accessory high-altitude Comprehensive
(Shanghai) emissions Emission Standard
Co. Ltd. (DB31_933-2015)
Ri Ming Treatment AtmosphericComputer Air PollutantAccessory pollutants Lampblack
standards
high-altitude 1 Building roof 0.6 Comprehensive 0.004 / /(Shanghai) emissions Emission StandardCo. Ltd. (DB31_933-2015)
Ri Ming
Computer Sewage Sewage
Accessory Water PH value Controlled 1 station main 7.4 Comprehensive
(Shanghai) pollutants emission outlet Emission Standard
///
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage Sewage
Accessory Water Suspended Controlled Comprehensive
(Shanghai) pollutants matter emission
1 station main 15 Emission Standard 5.895 / /outlet
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Water Controlled Sewage
Sewage
Accessory pollutants Petroleum emission 1 station main 0.54
Comprehensive
(Shanghai) outlet Emission Standard
0.124//
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage
Accessory Water COD Controlled
Sewage
pollutants emission 1 station main 49
Comprehensive
(Shanghai) outlet Emission Standard
18.6933.842/
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage
Accessory Water Ammonia Controlled
Sewage Comprehensive
pollutants nitrogen emission 1 station main 2.13 Emission Standard 0.233 1.0527 /(Shanghai) outlet
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage
Accessory Water Anionic Controlled
Sewage
pollutants surfactant emission 1 station main 0.07
Comprehensive
(Shanghai) outlet Emission Standard
0.009//
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage
Accessory Water Total Controlled
Sewage Comprehensive
(Shanghai) pollutants phosphorus emission
1 station main 0.42 0.14 / /
outlet Emission Standard
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage
Accessory Water Total Controlled
Sewage Comprehensive
(Shanghai) pollutants nitrogen emission
1 station main 3.1 Emission Standard 1.358 5.25 /outlet
Co. Ltd. (DB31-199-2018)
Ri Ming
Computer Sewage Sewage
Accessory Water Controlled Comprehensivepollutants BOD5 emission 1 station main 31.6 Emission Standard 5.772 / /(Shanghai) outlet
Co. Ltd. (DB31-199-2018)
Boiler Atmospheric
Rida Pollutant Emission
Intelligent Treatment A2/A14， 19.25 StandardManufacture Air Nitrogen standards
Technology pollutants oxide high-altitude 7 Sewage Mg/standard
DB32/4385-2022
Electroplating 1.57 tons 5.54 tons /
(Rugao) emissions station cubic meter Pollutant Emission
Co. Ltd. Standard GB 21900-
2008
Boiler Atmospheric
Pollutant Emission
Standard
DB32/4385-2022
Synthetic Resin
A2 A3 A14 Industry PollutantRida Emission Standard
Intelligent Treatment A15 A16 GB 31572-2015
Manufacture Air Particulate standards Wastewater 0.86
Technology pollutants matter high-altitude 22 Station Mg/standard
Industrial Coating 1.07 tons / /
(Rugao) emissions Hazardous cubic meter
Process Atmospheric
Waste Pollutant EmissionCo. Ltd. Warehouse StandardDB32/4439-2022
Integrated Emission
Standard of
Atmospheric
Pollutants
DB32/4041-2021
Rida Air Sulfur Treatment 3 A2/A14， 0.66 Boiler Atmospheric 0.02 tons / /
109Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Intelligent pollutants dioxide standards Sewage Mg/standard Pollutant Emission
Manufacture high-altitude station cubic meter Standard (DB32-
Technology emissions 4385-2022)
(Rugao)
Co. Ltd.Rida
Intelligent Treatment Boiler Atmospheric
Manufacture Air Smoke standards A2/A14， Pollutant Emission
Technology pollutants blackness high-altitude 3 Sewage / Standard (DB32- / / /
(Rugao) emissions station 4385-2022)
Co. Ltd.Rida
Intelligent Treatment A14/A2， 2.48 Mg/ ElectroplatingManufacture Air Sulfuric acid standards Pollutant Emission
Technology pollutants fog high-altitude 4 Sewage standard Standard GB 21900- 1.69 tons / /
(Rugao) emissions station cubic meter 2008
Co. Ltd.Rida
Intelligent Treatment Integrated Emission
Manufacture Air Chromium standards 0.012 Mg/ Standard of 0.0014
Technology pollutants and its high-altitude 2 A2 A14 standard Atmospheric tons // /
(Rugao) compounds emissions cubic meter Pollutants
Co. Ltd. DB32/4041-2021
Rida
Intelligent Treatment Integrated Emission
Manufacture Air Nickel and 0.0016 Mg/ Standard ofits standards 2 A2 A14 standard Atmospheric 0.0002Technology pollutants / /
(Rugao) compounds
high-altitude
emissions cubic meter Pollutants
tons
Co. Ltd. DB32/4041-2021
Rida
Intelligent Treatment Integrated Emission
Manufacture Air Benzene standards 0.078 Mg/ Standard of
Technology pollutants homologs high-altitude 3 A1 A14 standard Atmospheric
0.105//
(Rugao) emissions cubic meter Pollutants
tons
Co. Ltd. DB32/4041-2021
Rida
Intelligent Treatment Integrated Emission
Manufacture Air Xylene standards
0.024 Mg/ Standard of
Technology pollutants high-altitude 3 A1 A14 standard Atmospheric
0.028
tons / /
(Rugao) emissions cubic meter Pollutants
Co. Ltd. DB32/4041-2021
Synthetic Resin
Industry Pollutant
Emission Standard
A1 A2 A3 GB 31572-2015
Rida A14 A15 Industrial Coating
Intelligent Total non- Treatment A16 Process AtmosphericManufacture Air standards Wastewater 1.41 Mg/ Pollutant Emission 5.389
Technology pollutants methane 19 standard / /
(Rugao) hydrocarbons
high-altitude Station
emissions Hazardous cubic meter
Standard tons
DB32/4439-2022
Co. Ltd. Waste Integrated Emission
Warehouse Standard of
Atmospheric
Pollutants
DB32/4041-2021
Rida Refer to the
Intelligent Treatment Integrated Emission
Manufacture Air Alkali mist standards
A14 0.43 Mg/
2 Wastewater standard Standard of 0.064Technology pollutants high-altitude / /
(Rugao) emissions Station cubic meter
Atmospheric tons
Pollutants
Co. Ltd. DB31/933-2015
Rida Refer to the
Intelligent Treatment Integrated Emission
Manufacture Air Phosphoric standards 0 Mg/ Standard of
Technology pollutants acid mist high-altitude 3 A2 A14 standardcubic meter Atmospheric
0 tons / /
(Rugao) emissions Pollutants
Co. Ltd. DB31/933-2015
Rida
Intelligent Treatment Wastewater
Manufacture Air Hydrogen standards Station 0.21 Mg/ Odor Pollutant
Technology pollutants sulfide high-altitude 2 Hazardous standard Emission Standard
0.026//
(Rugao) emissions Waste cubic meter GB 14554-93
tons
Co. Ltd. Warehouse
Rida
Intelligent Treatment Wastewater
Manufacture Air Ammonia standards Station 3.02 Mg/ Odor Pollutant 0.564
Technology pollutants (Ammonia high-altitude 2 Hazardous standard Emission Standard tons / /
(Rugao) gas) emissions Waste cubic meter GB 14554-93
Co. Ltd. Warehouse
Rida Water Suspended Controlled 1 Production 21.39 mg/L Sewage 8.906 / /
110Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Intelligent pollutants matter emission wastewater Comprehensive tons
Manufacture outlet Emission Standard
Technology GB8978-1996
(Rugao)
Co. Ltd.Rida
Intelligent Five-day
Manufacture Water biochemical Controlled Production
Sewage
Technology pollutants oxygen emission 1 wastewater 39.27 mg/L
Comprehensive 20.994
Emission Standard tons / /
(Rugao) demand outlet GB8978-1996
Co. Ltd.Rida
Intelligent Sewage
Manufacture Water Chemical Controlled Production Comprehensive 45.764
Technology pollutants oxygen emission 1 wastewater 77.67 mg/Ldemand outlet Emission Standard tons
48.697 tons /
(Rugao) GB8978-1996
Co. Ltd.Rida
Intelligent Sewage
Manufacture Water Anionic Controlled Production Comprehensive 0.067
Technology pollutants surfactant emission 1 wastewater 0.19 mg/L / /
(Rugao) outlet
Emission Standard tons
GB8978-1996
Co. Ltd.Rida
Intelligent Production ElectroplatingManufacture Water
Technology pollutants Total copper
Controlled
emission 1 wastewater 0.016 mg/L
Pollutant Emission 0.002
Standard GB 21900- tons 0.0193 tons /
(Rugao) outlet 2008
Co. Ltd.Rida
Intelligent Receiving
Manufacture Water Total Production
Technology pollutants Nitrogen (as
Controlled
emission 1 wastewater 15.64 mg/L
requirements of 7.886
Rugao Fugang Water tons 13.974 tons /
(Rugao) N) outlet Treatment Co. Ltd.Co. Ltd.Rida
Intelligent Ammonia Production ReceivingManufacture Water
Technology pollutants Nitrogen
Controlled requirements of 0.501
(NH -N) emission
1 wastewater 1.06 mg/L
outlet Rugao Fugang Water tons
4.751 tons /
(Rugao) 3 Treatment Co. Ltd.Co. Ltd.Rida
Intelligent Receiving
Manufacture Water Total Production
Technology pollutants Phosphorus
Controlled requirements of 0.276
(as P) emission
1 wastewater 0.83 mg/L
outlet Rugao Fugang Water tons
0.632 tons /
(Rugao) Treatment Co. Ltd.Co. Ltd.Rida
Intelligent Production SewageManufacture Water Controlled Comprehensive 0.007
Technology pollutants Sulfide emission 1 wastewater 0.074 mg/Loutlet Emission Standard tons
//
(Rugao) GB8978-1996
Co. Ltd.Rida
Intelligent
Manufacture Water Controlled Production
Sewage
Comprehensive
Technology pollutants Petroleum emission 1 wastewater 0 mg/Loutlet Emission Standard
0 tons / /
(Rugao) GB8978-1996
Co. Ltd.Rida
Intelligent Production ElectroplatingManufacture Water Total Controlled
Technology pollutants Aluminum emission 1 wastewater 1.11 mg/L
Pollutant Emission 0.122
outlet Standard GB 21900- tons
//
(Rugao) 2008
Co. Ltd.Rida
Intelligent Electroplating
Manufacture Heavy metal Recycled
Technology wastewater
Total Not
chromium and not / discharged 0 mg/L
Pollutant Emission
recycled discharged Standard GB 21900-
0 tons / /
(Rugao) 2008
Co. Ltd.Rida
Intelligent Electroplating
Manufacture Heavy metal Recycled
Technology wastewater Total nickel and not /
Not Pollutant Emission
recycled discharged discharged
0 mg/L Standard GB 21900- 0 tons / /
(Rugao) 2008
Co. Ltd.Ri Shan
Computer Industrial Emission Controlled
Northwest
Accessories Wastewater Amount emission
1 corner of the / / 1832112 2243339.29 /
factory
111Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(Jia Shan)
Co. Ltd.Ri Shan
Computer
Accessories Industrial COD Controlled
Northwest Emission Standard of
Wastewater emission 1 corner of the 56.02 Water Pollutants for 101.186 112.172 /(Jia Shan) factory Electronics Industry
Co. Ltd.Ri Shan
Computer
Accessories Industrial
Northwest Emission Standard of
Wastewater Total nickel
Controlled
emission 1 corner of the 0.02 Water Pollutants for 0.005 0.02 /(Jia Shan) factory Electronics Industry
Co. Ltd.Ri Shan
Computer Industrial Total Controlled Northwest Emission Standard ofAccessories Wastewater chromium emission 1 corner of the 0.03 Water Pollutants for 0.008 0.026 /(Jia Shan) factory Electronics Industry
Co. Ltd.Ri Shan
Computer Industrial Ammonia Controlled Northwest Emission Standard ofAccessories Wastewater nitrogen emission 1 corner of the 0.68 Water Pollutants for 1.88 11.217 /(Jia Shan) factory Electronics Industry
Co. Ltd.F1 factory 3
F2 factory 2 Integrated Emission
F3 factory 7 Standard of
Ri Shan F4 factory 1 Atmospheric
Computer Total non- Pollutants GB16297-
Accessories Industrial methane Indirect
F5 factory 2 1996
(Jia Shan) Wastewater hydrocarbons Discharge
24 F6 factory 1 2.23
F7 factory 1 Emission Standard of
6.4208714.639/
Co. Ltd. F9 factory 2 Pollutants for
F10 factory Synthetic Resin
4 F11 Industry GB 31572-
factory 5 2015
Ri Shan
Computer Electroplating
Accessories / Nitrogen F5 factory 7 Pollutant Emission
(Jia Shan) oxide
/ 8 F7 factory 1 1.1 Standard GB 21900- 0.856 0.91 /
Co. Ltd. 2008
Integrated Emission
Standard of
Ri Shan F3 factory 1 Atmospheric
Computer Particulate F5 factory 3
Pollutants GB16297-
Accessories / 1996
(Jia Shan) matter
/ 11 F5 factory 1 6.26
F6 factory 6 Emission Standard of
4.9710.596/
Co. Ltd. F9 factory 1 Pollutants forSynthetic Resin
Industry GB 31572-
2015
Adsorbed
and treated
by activated
Luxcase carbon F10 and F11
Precision Total non- Total non- adsorption are both four
Technology methane methane device and 9 standby and 2.94 60mg/m3 1.0379 1.0449 t/a /
(Kunshan) hydrocarbons hydrocarbons then four in use mg/m3 3kg/h t/a
Co. Ltd. discharged F9 has 1
through
exhaust
stack
Adsorbed
and treated
by activated
Luxcase carbon
Precision Tin and its Tin and its adsorptionTechnology device and 1 F9 has 1 ND 5mg/m3compounds compounds 0.22kg/h ND 0.00017 t/a /(Kunshan) then
Co. Ltd. discharged
through
exhaust
stack
Luxcase
Precision Particulate TotalTechnology matter Suspended Unorganized / / / 0.5mg/m3 ND 0.02442 t/a /(Kunshan) Particulate
Co. Ltd.Treatment of pollutants
I. Luxcase Precision Technology (Yancheng) Co. Ltd.
112Annual Report 2024 of Luxshare Precision Industry 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 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 clean water andpolluted 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 the sewage station. Heavy metalwastewater is treated and reused through a process of “sterilization + membrane treatment + evaporation and crystallization + ionexchange." 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. Prevention Measures for Noise Pollution:
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
113Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 Solid Waste:
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 technologies are adopted and by focusing on the reuseof useful materials to “turn waste into treasure’ we recycle a part of the resources and reduce the disposal burden. For those wastematerials 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:
* 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%.* 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);
* 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 clean water andpolluted 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. Prevention Measures for Noise Pollution:
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:
114Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 technologies are adopted and by focusing on the reuseof useful materials to “turn waste into treasure’ we recycle a part of the resources and reduce the disposal burden. For those wastematerials 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:
Boilers (to be dismantled after centralized heating conditions are met) use natural gas as fuel and adopt low-NOx combustion
technology; waste gas from laser welding and laser carving is collected by pipelines and treated by a water washing device; waste
gas from dispensing baking injection molding coloring and spraying is collected by exhaust hoods and treated by filtration +
activated carbon adsorption device; degreasing waste gas and penetration waste gas from Workshop 14# are collected by side
suction + top suction at the tank edge and treated by mist removal + activated carbon adsorption device; CNC machining waste gas
(DDG grinding waste gas) from Workshop 16# Workshop 1# Workshop 2# Workshop 3# Workshop 4# and Workshop 6# is
collected under negative pressure and treated by oil mist separator + filtration + activated carbon adsorption device; sandblasting
waste gas is collected by pipelines and treated by two-stage wet dust removal device; CNC machining waste gas from Workshop
14# is collected by pipelines and treated by electrostatic oil removal + water washing device; waste gas from anode NE line (NPI
line) in Workshop 14# anodic oxidation line in Workshop 2# and anodic oxidation line in Workshop 5# is collected by side
suction + top suction at the tank edge and treated by two-stage alkali spraying device; penetration waste gas from Workshop 5# is
collected by pipelines and treated by activated carbon adsorption device; CNC machining waste gas from Workshop 15# is
collected by pipelines and waste gas from milling machines wet grinding and electrical discharge machining is collected by
exhaust hoods and treated by filtration + activated carbon adsorption device; dry grinding waste gas is collected by exhaust hoods
and treated by bag dust collector; tank waste gas and wastewater treatment station waste gas (covered) are collected by pipelines
and treated by alkali washing + water washing + mist removal + microwave UV catalytic device; hazardous waste warehouse
waste gas is collected under negative pressure and treated by filtration + activated carbon adsorption device.
2. Prevention Measures for Wastewater Pollution:
The wastewater generated by this project includes 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 istreated with the chromium-containing wastewater through “chemical precipitation + sand and charcoal filtration + 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 the nickel-containing wastewater through “chemicalprecipitation + sand and charcoal filtration + ultrafiltration + ion exchange + 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-stage reaction 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 then togetherwith acidic wastewater and other wastewater from exhaust gas treatment undergo “acidification breaking emulsion flotationFenton 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
115Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
pre-treated with “coagulation and sedimentation” plant floor washing wastewater and initial rainwater they undergo “hydrolysisacidification precipitation + anaerobic and aerobic 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.
3. Prevention Measures for Noise Pollution:
The main noise pollution prevention and control measures taken in production are:
* When purchasing equipment select equipment with small power and low noise as much as possible;
* Use vibration damping bases to reduce the vibration generated during fan rotation;
* Sound sources are set indoors as much as possible to achieve sound insulation and noise reduction. Double-layer sound
insulation windows are used for the lighting windows of workshops with high-noise equipment;
* In the general layout major noise sources are arranged in the middle of the workshop far from the factory boundary and
soundproof covers are installed on equipment such as fans;
* For high sound power equipment special vibration damping and silencing equipment is purchased with the equipment;
* Strengthen factory greening and establish green isolation belts. In addition trees and shrubs are planted around the
factory boundary to form a green fence which has a sound absorption and noise reduction effect.
4. Prevention Measures for Solid Waste:
Unqualified products waste scraps waste polishing stones waste molds waste grinding wheels sandblasting waste
injection molding waste pure water preparation waste and waste metal slag generated by the Company are entrusted to qualified
units for disposal as general industrial solid waste; waste packaging waste ion exchange resin waste membrane cores waste filter
bags waste tank slag waste activated carbon other wastewater treatment sludge waste grinding liquid waste organic solvents
waste labor protection supplies waste chromium slag waste nickel slag waste catalysts waste lamp tubes waste filter cotton
waste fabric bags waste cutting fluid/oil waste rubber hoses waste paint slag waste spark oil waste hydraulic oil and waste oil
from air compressors generated are entrusted to qualified units for disposal as hazardous waste; phosphorus-containing sludge is
identified as general industrial solid waste after identification and is entrusted to external parties for disposal; domestic garbage is
entrusted to sanitation departments for transportation.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 Accessories (Jia Shan) Co. Ltd.
1. Prevention Measures for Exhaust Gas Pollution:
Collected and treated by the exhaust gas treatment facility to meet standards and then discharged.
2. Prevention Measures for Wastewater Pollution:
Discharged into the municipal sewage pipeline to Jiashan County Dadi Wastewater Treatment Plant Eastern Water
Purification Plant for treatment.
3. Prevention Measures for Noise Pollution:
Low-noise equipment is selected and measures such as sound insulation vibration reduction and factory greening are taken
simultaneously to achieve sound insulation and noise reduction.
4. Prevention Measures for Solid Waste:
* Waste packaging materials: Collected and sold for external treatment.* Solid hazardous waste: Collected and entrusted to qualified units for treatment.* Domestic garbage: Collected and entrusted to sanitation departments for transportation.
116Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
* Hazardous waste: Collected and entrusted to units with hazardous waste operation permits for treatment.V. Luxcase Precision Technology (Kunshan) Co. Ltd.
1. Prevention Measures for Exhaust Gas Pollution
The organic waste gas generated by this project belongs to low-concentration VOCs waste gas and none of the waste gas has
recycling value. Therefore this project uses adsorption method to absorb organic waste gas. The adsorption method utilizes porous
solids (adsorbents) to accumulate or condense one or more components of a gas mixture on the adsorbent surface achieving
separation purposes which is suitable for situations where the organic waste gas concentration is low. Considering the existing site
and overall cost activated carbon adsorption device is planned to treat organic waste gas.
2. Prevention Measures for Wastewater Pollution
* Wastewater pipeline connection: The wastewater pipeline in the factory area where this project is located has been laid
and domestic wastewater has been connected. Therefore the domestic wastewater of this project can be connected to the existing
wastewater pipeline and enter the wastewater treatment plant for treatment.* Analysis of connected water volume: Kunshan Development Zone Kuncheng Precision Water Purification Co. Ltd. is
located on the west side of Meigui Road south of Wusong River. The total scale already built is 25000 t/d adopting the modified
A2/O and oxidation ditch biological nitrogen and phosphorus removal process. The tailwater discharge reaches the Suzhou special
discharge limits in Annex 1 of the "Implementation Opinions on High-Quality Promotion of Urban and Rural Domestic
Wastewater Treatment Three-Year Action Plan" (Su Wei Ban Fa [2018] No. 77) and the Class C standard in Table 1 of the
"Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants" before being discharged into the Wusong River.Currently Kunshan Development Zone Kuncheng Precision Water Purification Co. Ltd. still has a treatment capacity of 8000
m3/d remaining. The proportion of wastewater from this project (waste) water in the remaining treatment capacity of Kunshan
Development Zone Kuncheng Precision Water Purification Co. Ltd. is 0.237% which is very small. Kunshan Development Zone
Kuncheng Precision Water Purification Co. Ltd. has enough capacity to accept the domestic wastewater from this project.* Water quality: This project mainly involves the connection of domestic wastewater and the water quality meets the
receiving standards of Kunshan Development Zone Kuncheng Precision Water Purification Co. Ltd.
3. Prevention Measures for Noise Pollution
* When purchasing equipment enterprises should purchase low-noise equipment that meets the national standards for
various mechanical noises to ensure compliance with the noise health standards for industrial enterprise workshops during
operation and at the same time ensure that the factory boundary noise control values are met.* For equipment with high noise pollution such as fans vibration reduction devices soundproof covers or mufflers should
be installed.* Measures should be taken to control noise propagation paths strengthening the building envelope of noise source
workshops mainly by enclosing them and simultaneously implementing greening outside the workshops and at the factory
boundary utilizing buildings and trees to block the transmission of sound.* The noise pollution prevention and control work of the project implements the "three simultaneous" system. Noise
reduction equipment such as anti-vibration pads sound insulation sound absorption and mufflers should be regularly inspected
and maintained and those that do not meet the requirements should be replaced in a timely manner to prevent the increase of
mechanical noise.* Strengthen equipment repair and maintenance to keep the equipment in optimal working condition.
4. Prevention Measures for Solid Waste Pollution
Strengthen the management of solid waste generation collection and storage at each stage. All types of solid waste should
be stored according to category to prevent the loss and leakage of solid waste within the factory area achieving harmlessness
ensuring that all types of solid waste are effectively disposed of and avoiding secondary pollution.Environmental self-monitoring program
I. Luxcase Precision Technology (Yancheng) Co. Ltd.
117Annual Report 2024 of Luxshare Precision Industry 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.At the end of each year the self-monitoring plan for the following year is updated and compiled according to the discharge
permit and environmental impact assessment requirements. For organized exhaust gas from main exhaust gas outlets nitrogen
oxides are monitored once a month and other pollutant indicators are monitored once a quarter; for organized exhaust gas from
general exhaust gas outlets non-methane total hydrocarbons phosphoric acid mist and alkali mist are monitored once every six
months and other pollutant indicators are monitored once a quarter; unorganized exhaust gas is monitored once a year; industrial
wastewater discharge outlets and domestic sewage discharge outlets are monitored once a month; rainwater discharge outlets are
monitored once every six months; surface water in the inner river on the north side of the factory area and groundwater at the
wastewater treatment station are monitored once a quarter; bottom sediment at the rainwater discharge outlet of the factory area is
monitored once every 3 years; noise is monitored once a quarter; relevant test reports are available as data compliance support for
all the above.IV. Ri Shan Computer Accessories (Jia Shan) Co. Ltd.At the end of each year the self-monitoring plan for the following year is updated and compiled according to the discharge
permit and environmental impact assessment requirements. Organized exhaust gas from general exhaust gas outlets is monitored
once every six months; unorganized exhaust gas is monitored once every six months; wastewater discharge outlets are monitored
once a quarter; noise is monitored once a quarter; rainwater discharge outlets are monitored once every six months and relevant
test reports are available as data compliance support for all.V. Luxcase Precision Technology (Kunshan) Co. Ltd.After the project is put into operation the construction unit should regularly entrust a qualified environmental monitoring
unit to monitor the project's exhaust gas. According to the "Technical Guidelines for Self-Monitoring of Pollutant Discharging
Units - General Principles" (HJ 819-2017) this enterprise is not a key pollutant discharging unit. The environmental monitoring
plan for the operation period is shown in Table 4-8.Exhaust Gas:
Category Monitoring Monitoring Factors Routine Execution Standard
Points Monitoring
Frequency
Non-methane total Jiangsu Province "Integrated Emission
Exhaust Stack hydrocarbons tin and its 1 time/year Standard of Atmospheric Pollutants"
compounds (DB32/4041-2021) Table 1 Standard
Non-methane total
Exhaust Gas Enterprise hydrocarbons tin and its
Jiangsu Province "Integrated Emission
Boundary compounds particulate 1 time/year Standard of Atmospheric Pollutants"
matter (DB32/4041-2021) Table 3 Standard
Within the Total non-methane Jiangsu Province "Integrated Emission
factory area hydrocarbons 1 time/year Standard of Atmospheric Pollutants"(DB32/4041-2021) Table 2 Standard
Wastewater:
Category Monitoring
Routine
Content Monitoring Location Monitoring Execution StandardFrequency
118Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
"Integrated Wastewater Discharge
Standard" (GB8978-1996) Table 4 Level 3
3
Domestic Sewage COD SS NH - Total discharge outlet of 1 time/year Standard "Water Quality Standard forN TP the factory area Wastewater Discharged into Urban
Sewers" (GB-T31962-2015) Table 1 Grade
B
Noise:
Category Monitoring Monitoring Location Routine Execution Standard
Content Monitoring
Frequency
Equivalent
Continuous A- 1 meter outside the "Emission Standard for IndustrialNoise weighted Sound factory boundary 1 time/quarter Enterprise Boundary Environment Noise"
Pressure Level (GB12348-2008) Class 3 Standard
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 (4th Edition) in 2023 and
has completed the formalities for expert review and filing with the filing No.: 320902-2024-066-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.Rida factory area was registered in May 2024 registration number: 320682-2024-072-M.IV. Ri Shan Computer Accessories (Jia Shan) Co. Ltd.Rishan factory area was registered in November 2024 registration number: 330421-2024-72-M.V. Luxcase Precision Technology (Kunshan) Co. Ltd.The environmental emergency response plan (First Edition) was prepared in 2024 and the expert review and registration
procedures have been completed registration document number 320583-2024-2547-L.Investment in environment governance and protection and payment of environmental protection taxes
I. Luxcase Precision Technology (Yancheng) Co. Ltd.In 2024 approximately RMB 13.2 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 RMB
49000 per month was reported.
II. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.In 2024 approximately RMB 13 million was invested in environmental protection and the environmental protection tax paid
amounted to RMB 9757.66.III. Ri Shan Computer Accessories (Jia Shan) Co. Ltd.Total investment in environmental treatment and protection for the 2024 expansion project is RMB 5 million.IV. Luxcase Precision Technology (Kunshan) Co. Ltd.Total investment in environmental treatment and protection for the 2024 expansion project is RMB 300000.Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable □N/A
I. Luxcase Precision Technology (Yancheng) Co. Ltd.
119Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
1. In February 2024 the second phase of photovoltaic power generation was put into operation at the Yancheng factory with
an installed capacity of 16MW saving 25151138 kWh (25151.138 MWh) of electricity annually and reducing carbon emissions
by 45169.95 tons per year;
2. In 2024 frequency converters were installed on motors at the Yancheng factory flow meters were installed on inlet and
outlet water pipelines etc. to adjust motor frequency and reduce power consumption. Improved 1344 motors saving 16370000
kWh (16370 MWh) of electricity annually and reducing carbon emissions by 9115 tons per year;
3. In 2024 clean room FFUs at the Yancheng factory were replaced and AC motors in FFUs were replaced with DC motors
reducing power consumption. Replaced 546 FFUs saving 120000 kWh (120 MWh) of electricity annually and reducing carbon
emissions by 67 tons per year.II. Ri Ming Computer Accessory (Shanghai) Co. Ltd.Improvement InvestmentScheme (RMB ten Benefit (RMB ten Benefit (ten thousandProject thousand) thousand) Kwh)
Project Energy
Storage Contract Energy Management 0 13.8 17.6
Energy Audit Completed 1 audit cycle for theentire factory each month. 24 14.8 18.5
Gas to Vacuum Replacing vacuum generators
(M6/1F/2F) with vacuum pumps for direct 0 11.38 14.23supply
III. Rida Intelligent Manufacture Technology (Rugao) Co. Ltd.Investment Annual
Company Item Improvement Content (RMB ten Electricity Annual Cost
thousand) Savings Savings (RMB)(kWh)
Rida Intelligent Replacing traditional LED lights with
Manufacture Lighting high-efficiency and energy-saving
Technology Improvement LED lights in workshops such as 10.36 588700 457420
(Rugao) Co. LTD A17 warehouse and EMP
Rida Intelligent
Manufacture Street Light Replacing traditional LED street
Technology Improvement lights with high-efficiency LED street 5.395 91000 70707
(Rugao) Co. LTD lights
Rida Intelligent
Manufacture FFU Fan Replacing AC FFU fans with DC
Technology Improvement FFU fans in Building A17 28.8 136000 105672
(Rugao) Co. LTD
Rida Intelligent
Manufacture DryerInsulation Adding insulation to the adsorptionTechnology Improvement cylinder of the adsorption dryer
129200071484
(Rugao) Co. LTD
Rida Intelligent
Manufacture DryerControl Changing adsorption dryer timeTechnology Improvement control to dew point control
0580000450660
(Rugao) Co. LTD
Administrative penalties imposed due to environmental issues during the reporting period
Name of the Effects on the
Company or its Reasons for Violations Penalty results listed company’s
Rectification
subsidiaries penalties production and
measures of the
operation Company
------
Other environmental information to be disclosed
I. Luxcase Precision Technology (Yancheng) Co. Ltd.
120Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The said company takes the initiative to make PRTR information disclosure on 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 on the platform of the Institute of 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 publish 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 on 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 Accessories (Jia Shan) Co. Ltd.The said company takes the initiative to make PRTR information disclosure on 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).V. Luxcase Precision Technology (Kunshan) Co. Ltd.The said company takes the initiative to make PRTR information disclosure on 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.Other environmental information
Luxshare-ICT attaches great importance to the 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 ranks them according to the
increasing probability of occurrence and degree of impact and then submits 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 plan and implements
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 1427672 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 349 energy-saving renovation projects for five major energy-using modules including production electricity air
compression system central air conditioning workshop fan and living office thereby reducing greenhouse gas emissions by a total
of 125363 tons of carbon dioxide equivalent.II. Description of Social Responsibilities
The Company always regards sustainable development as a key part of its corporate development strategy establishes an
ESG management structure with the Board of Directors and Strategy Committee as the core decision-making layer and
systematically promotes sustainable development practices in four core areas: scientific governance green and low-carbon
121Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
harmonious health and responsible procurement. The Company spares no effort to build an efficient clean low-carbon and
circular green manufacturing system. As of the end of the reporting period a cumulative of 18 subsidiaries have obtained national
or provincial/municipal green factory certification 14 subsidiaries have obtained UL2799 Zero Waste to Landfill certification and
6 subsidiaries have obtained International Water Stewardship Standard (AWS) certification effectively reducing emissions from
production and operation activities and improving resource utilization efficiency.In the process of innovation-driven green manufacturing the Company relies on the deep integration of digitalization and
automation technologies to systematically promote the innovation of manufacturing processes and significantly improves resource
utilization efficiency by introducing cutting-edge technologies and intelligent management systems. At the same time the
Company focuses on the widespread application of clean energy technologies such as energy storage and rooftop photovoltaics
integrates the green concept throughout the entire product life-cycle strictly adheres to green standards actively explores
breakthroughs in circular and recyclable materials and reduces waste generation at the source. During the reporting period the
proportion of clean energy used by the Company exceeded 70% correspondingly reducing greenhouse gas emissions by nearly
1.53 million tons of Co?e.
The Company’s 2024 Sustainable Development Report has been published on Cninfo (www.cninfo.com.cn) the information
disclosure website designated by the Company together with this Annual Report on the same day.III. Consolidation and Expansion of Poverty Alleviation and Rural Revitalization
The Company always cares about society and actively organizes charitable assistance to agriculture supports local rural
culture and education improves rural living environments and promotes the development of characteristic rural industries jointly
painting a picture of rural revitalization. During the reporting year the Company actively responded to the national "Ten Thousand
Enterprises Revitalizing Ten Thousand Villages" initiative and carried out various activities such as local agricultural product
procurement donation of beds to rural primary schools and revitalization of intangible cultural heritage.
122Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
Commitme Committed Commitment Commitment details Commitme
Commit
nts by Type nt date ment
Fulfillment of
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 interests 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 irrelevant to their performance of powers and duties;
HUANG
Dawei; LI 4. I promise to link the remuneration rules developed by the Board of
Wei; LIU Directors or the Remuneration Committee and the implementation of the
Commitme Zhonghua; Issuer’s remedial measures for diluted earnings;
nts relating SONG
to any Yuhong; 5. I promise to link the conditions for the exercise of the Issuer’s stock
initial WANG Other option incentives to be issued and the implementation of the Issuer’sLaichun; remedial measures for diluted earnings; February Long-public commitments 21 2022 term Ongoing
offering or WANG
subsequent Laisheng; 6. I promise to strictly fulfill the aforesaid commitments to ensure that
fund raising WANG the Issuer’s remedial measures for diluted earnings can be fulfilledTao; WU effectively. If I breach or refuse to fulfill any commitments set forth
Tiansong; above I will make explanations and apologies and perform other
ZHANG obligations required by the applicable regulations and agree to accept
Ying 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 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:
Commitme 1. We/I will not interfere with management and operation of the
nts relating Luxshare Company beyond our/my powers or infringe on the interest of the
to any Limited; Company.initial WANG Other
public Laichun; commitments 2. We/I promise to strictly fulfill the aforesaid commitments to ensure
February Long- Ongoing
offering or WANG that the Issuer’s remedial measures for diluted earnings can be fulfilled
21 2022 term
subsequent Laisheng effectively. If we/I breach or refuse to fulfill any commitment set forth
fund raising above I will make explanations and apologies and perform otherobligations 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 shareholders for
123Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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.Commitme Commitments
nts relating relating to After the completion of the transactions contemplated by the
to any horizontal announcement on external investment and related-party transactions
initial Luxshare competition disclosed by the Company on November 13 2020 we and our affiliates November Long-
public Limited related-party will not engage in any business that is the same as or substantially in 13 2022 term Ongoing
offering or transactions and competition with the business of the Company or any entity controlled
subsequent occupation of by the Company in any manner.fund raising funds
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.HUANG
Dawei; LI 2. I will exercise self-discipline in consumption in performing my duties.Bin; LIN
Yifei; 3. I will not use the assets of the Company to engage in any investment
WANG or consumption activity not in connection with my duties.Commitme Laichun;
nts relating WANG 4. I will within my powers procure the linkage between the
to any Laisheng; remuneration system adopted by the Board of Directors or the
initial WU Other Remuneration and Appraisal Committee and the implementation of the
public Tiansong; commitments Company’s remedial measures for diluted earnings.July 11 Long-
2019 term Ongoing
offering or XIONG
subsequent Tengfang; 5. I will within my powers procure the linkage between the vesting
fund raising XU conditions in respect of any share incentives granted by the CompanyHuaibin and the implementation of the Company’s remedial measures for diluted
XUE earnings.Haigao; YE
Yiling; 6. I promise to strictly fulfill the aforesaid commitments to ensure that
ZHANG the Company’s remedial measures for diluted earnings can be fulfilled
Ying effectively. If I breach or refuse to fulfill 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
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 effectively implement the remedial measures for
Commitme diluted earnings formulated by the Company and fulfill our/my
nts relating Luxshare corresponding commitments on the remedial measures for diluted
to any Limited; earnings. If we/I breach or fail to perform the commitments set forth
initial WANG Other above we/I agree to accept any punishment or regulatory action that July 11 Long-
public Laichun; commitments may be imposed on or taken against us/me by the CSRC the Shenzhen 2019 term Ongoing
offering or WANG Stock Exchange or any other competent securities regulatory authority
subsequent Laisheng pursuant to the applicable rules and regulations established or
fund raising 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
124Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
the new regulation.Each of all directors and executives of the Company hereby commits as
BAI follows:
Rujing;
CHEN (1) I will not transfer benefits to any other entity or individual without
Chaofei; compensation or on unfair terms or otherwise damage the interest of the
DONG Company;
Jianhai; LI
Commitme Bin; LI (2) I will exercise self-discipline in consumption in performing my
nts relating Jing; LI duties;
to any Xiongwei;
initial LIN Yifei; Other (3) I will not use the assets of the Company to engage in any investment March 11 Long-
public WANG Ji; commitments or consumption activity not in connection with my duties; 2016 term Ongoing
offering or WANG
subsequent Laichun; (4) I will procure the linkage between the remuneration system adopted
fund raising WANG by the Board of Directors or the Remuneration and Appraisal Committee
Laisheng; and the implementation of the Company’s remedial measures for diluted
XU earnings;
Huaibin;
YE Yiling; (5) If the Company establishes any share incentive plan in the future I
ZHANG will procure the linkage between the vesting conditions in respect of any
Lihua share incentives granted by the Company and the implementation of the
Company’s remedial measures for diluted earnings.Luxshare Limited as the controlling shareholder of the Company and
WANG Laichun and WANG Laisheng as the actual controllers of the
Company hereby make commitments as follows:
1. We Luxshare Limited as the controlling shareholder of the Company
undertake not to interfere with management and operation of the
Company beyond our powers or infringe on the interest of the
Commitme Company.nts relating Luxshare
to any Limited; 2. I WANG Laichun as the actual controller Chairman and General
initial WANG Other Manager of the Company undertake to perform my duties in accordance March 11 Long-
public Laichun; commitments with the applicable laws and regulations and the articles of association of 2016 term Ongoing
offering or WANG the Company and not to interfere with management and operation of the
subsequent Laisheng Company beyond my powers or infringe on the interest of the
fund raising 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
Commitme Commitments and the Company that is unavoidable or exists reasonably we will carry
nts relating relating to out such transaction on an arm’s length basis and customary commercial
to any horizontal terms ensure the fairness of the transaction price perform the relevant
initial Luxshare competition decision-making process according to the law and guarantee that the October 15 Long-
public Limited related-party legitimate rights and interests of the Company and its shareholders will Ongoing
offering or transactions and not be damaged as a result of such transaction. 3. We or any other entity
2014 term
subsequent occupation of controlled by us will not request the Company to offer any terms more
fund raising funds favorable than the terms that may be offered by any third party in anarm’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 competition related-party
transactions and occupation of funds are as follows: 1. We and all other
entities controlled by us at present or in the future will not directly or
indirectly engage in any business or activity that competes might
Commitme Commitments compete or potentially competes with the main business of the
nts relating relating to Company. 2. If any amendment of any applicable law or change in any
to any horizontal applicable policy of the country results in any actual or potential
initial Luxshare competition horizontal competition between us or any other entity controlled by us October 15 Long-
public Limited related-party and the Company in any business the Company shall have the 2014 term Ongoing
offering or transactions and preemptive right on the same terms in respect of any entrusted
subsequent occupation of management (or management under contract or lease) or acquisition in
fund raising funds 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.
125Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
Luxshare controller or shareholder (as applicable) and our/my affiliation with the
Commitme Limited; Commitments Issuer to engage in any act to the detriment of the interest of the Issuer or
nts relating Shenzhen relating to its other shareholders. With respect to any related-party transaction
to any Zixin horizontal between us/me or any other entity controlled by us/me and the Issuer
initial Investment competition we/I will carry out such transaction on an arm’s length basis and
public Co. Ltd.; related-party customary commercial terms and will not request the Issuer to offer any
July 30 Long-
terms more favorable than the terms that may be offered by any third 2010 term
Ongoing
offering or WANG transactions and
subsequent Laichun; occupation of party in an arm’s length transaction or accept any such terms offered by
fund raising WANG funds the Issuer. We/I will strictly perform all related-party transaction
Laisheng agreements (if any) entered into with the Issuer in good faith and willnot 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 similar to the business of the Issuer
or any entity controlled by the Issuer. For so long as we retain control
over the Issuer directly or indirectly we will strictly comply with the
Commitme Commitments applicable laws regulations and codes of the country and will not
nts relating Luxshare relating to directly or indirectly engage in any business that is the same as similar
to any Limited; horizontal to or substantially in competition with the business of the Issuer or any
initial Shenzhen competition entity controlled by the Issuer or have substantial or relative control July 30 Long-
public Zixin related-party over any other company organization or economic entity engaging in 2010 term Ongoing
offering or Investment transactions and any business that is the same as similar to or substantially in
subsequent Co. Ltd. occupation of competition with the business of the Issuer or any entity controlled by
fund raising funds 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
Commitme Commitments strictly comply with the applicable laws regulations and codes of the
nts relating relating to country and will not directly or indirectly engage in any business that
to any WANG horizontal is the same as similar to or substantially in competition with the
initial Laichun; competition business of the Issuer or any entity controlled by the Issuer or have July 30 Long-
public WANG related-party substantial or relative control over any other company organization or 2010 term Ongoing
offering or Laisheng transactions and economic entity engaging in any business that is the same as similar to
subsequent occupation of or substantially in competition with the business of the Issuer or any
fund raising funds 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.Whether the commitments have been fulfilled on time Yes
If any commitment is overdue explain specific reasons for the incomplete performance and detailed plan of next
steps N/A
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
126Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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 with the Previous Financial
Year
□Applicable □N/A
During the reporting period there was no change in accounting policies accounting estimates or significant accounting error
corrections
VII. Explanation about Changes in Consolidation Scope When Compared with 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 RMB 10000) 270.6
Consecutive years in which the domestic accounting firm has
provided auditing service 17
Certified public accountant of the domestic accounting firm QIANG Guiying ZHANG Yehua
Consecutive years in which the certified public accountant of
the domestic accounting firm has provided auditing service 1
A new accounting firm was engaged during the reporting period
□Yes□No
Engagement of accounting firm for auditing internal controls financial advisor or sponsor
127Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
□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 2024. The total audit fees paid to RSM China Certified
Public Accountants LLP (Special General Partnership) during the reporting period amounted to RMB 2.706 million.IX. Delisting Risks Faced after the Disclosure of the Annual Report
□Applicable □N/A
X. Matters Relating to Bankruptcy and Reorganization
□Applicable □N/A
There were no bankruptcy or restructuring related events during the reporting period
XI. Material Litigation andArbitration Proceedings
□Applicable □N/A
Basic Amount Whether a LitigationInformation of Involved Litigation (Arbitration) Trial Enforcement Disclos
Litigation (RMB provision is (Arbitration) of judgment/
Date of ure
recognized Results and Impacts disclosure
(Arbitration) 10000) Progress
award Index
Other litigation The case has been settled/
during the 529.11 No Closed closed by mediation or Alreadyreporting period judgment and does not have enforced N/A
(arbitration) a material effect on us.Other litigation
during the The case is pending and will
reporting period 4387.12 No Pending not have a material effect on Pending N/A
(arbitration) us.XII. Penalty and Rectification
□Applicable □N/A
There was no punishment or rectification involving the Company during the reporting period.XIII. Integrity Status 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.
128Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
XIV. Material Related-Party Transactions
1. Related-Party Transactions Relating to Day-to-Day Operation
□Applicable □N/A
Approved
% of the total
Amount (in limit of Whether or
Market price
Counterparty Relationship Type Related-party Pricing Transaction
amount of
RMB0 transaction， the same type not exceed Method ofavailable for Date of Information
transactions principle price amount (in the approved settlement the same type disclosure disclosure
000) of of available at
transactions RMB0， limit transactions
000)
Affiliated Purchasing
Purchasing
BCS Suzhou goods from goods fixed Market Fair marketlegal person assets pricing price 513.54 0.00% 3000 No Bank transfer
Fair market February 29 Announcement
affiliates price 2024 No.:2024-014services etc.BCS Affiliated Purchasing Purchasing Market Fair market Fair market February 29 Announcement
Germany legal person goods from goods 351.14 0.00% 12000 No Bank transferaffiliates services etc. pricing price price 2024 No.:2024-014
Purchase of
goods
Luxsan Affiliated Purchasing materials Market Fair market
Investment legal person goods from fixed assets pricing price 4584.43 0.02% 10000 No Bank transfer
Fair market February 29 Announcement
affiliates rental fees price 2024 No.:2024-014
utility fees
etc.Luxsan Hong Affiliated Purchasing Purchasing Market Fair market Fair market February 29 Announcement
Kong legal person goods from goods 124380.52 0.59% 170000 No Bank transfer No.: 2024-affiliates services etc. pricing price price 2024 014/2024-076
BCS Affiliated Purchasing Purchasinggoods from goods Market Fair marketRomania legal person pricing price 2895.43 0.01% 5000 No Bank transfer
Fair market September Announcement
affiliates services etc. price 14 2024 No.:2024-076
Purchasing
Dongguan Affiliated Purchasing
Cowell legal person goods from
goods fixed Market Fair market
assets pricing price 875.55 0.00% 2500 No Bank transfer
Fair market December Announcement
affiliates price 21 2024 No.:2024-098services etc.Affiliated Selling goods SellingBCS Suzhou Market Fair market Fair market February 29 Announcementlegal person from goods pricing price 38063.14 0.14% 70000 No Bank transferaffiliates services etc. price 2024 No.:2024-014
BCS Affiliated Selling goods Sellingfrom goods Market Fair marketGermany legal person pricing price 37.69 0.00% 6000 No Bank transfer
Fair market February 29 Announcement
affiliates services etc. price 2024 No.:2024-014
Affiliated Selling goods SellingBCS USA from goods Market Fair marketlegal person pricing price 3681.15 0.01% 4000 No Bank transfer
Fair market February 29 Announcement
affiliates services etc. price 2024 No.:2024-014
129Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
BCS Affiliated Selling goods Selling Market Fair market
Romania legal person from goods pricing price 284.9 0.00% 4000 No Bank transfer
Fair market February 29 Announcement
affiliates services etc. price 2024 No.:2024-014
Selling
Luxsan Affiliated Selling goods goods Announcement
Investment legal person from materials
Market Fair market
pricing price 199.71 0.00% 7000 No Bank transfer
Fair market February 29
affiliates fixed assets price 2024
No.: 2024-
014/2024-076
services etc.Selling
Luxsan Hong Affiliated Selling goods goodsfrom materials Market Fair market 115553.8 0.43% 150000 No Bank transfer Fair market February 29
Announcement
Kong legal person No.: 2024-affiliates fixed assets pricing price price 2024 014/2024-076
services etc.Selling
Luxsan Affiliated Selling goods goods Market Fair market Fair market February 29 Announcement
Equipment legal person from materials pricing price 19362.39 0.07% 30000 No Bank transferaffiliates fixed assets price 2024 No.:2024-014
services etc.Selling goods Selling
Chery Parts Affiliated from goods Market Fair market 36552.26 0.14% 150000 No Bank transfer Fair market February 29 Announcementlegal person affiliates services etc. pricing price price 2024 No.:2024-014
Chery Selling goods Selling
Commercial Affiliated Market Fair market Fair market February 29 Announcement
Vehicle legal person
from goods
affiliates services etc. pricing price
1346.51 0.01% 60000 No Bank transfer price 2024 No.:2024-014
Henan Chery Affiliated
Selling goods Selling
from goods Market Fair market 90.35 0.00% 2000 No Bank transfer Fair market February 29 Announcementlegal person affiliates services etc. pricing price price 2024 No.:2024-014
Hong Kong Affiliated Selling goods Sellingfrom goods Market Fair market Fair market September AnnouncementCowell legal person affiliates services etc. pricing price
159258.29 0.59% 200000 No Bank transfer price 14 2024 No.:2024-076
Anhui Affiliated Selling goods Selling Market Fair market
Ruijing legal person from goods pricing price 109686.74 0.41% 180000 No Bank transfer
Fair market October 26 Announcement
affiliates services etc. price 2024 No.:2024-086
Selling
Chery New Affiliated Selling goods goods Market Fair market
Energy legal person from services pricing price 18787.05 0.07% 25000 No Bank transfer
Fair market December Announcement
affiliates fixed price 21 2024 No.:2024-098
assets etc.Selling
Dongguan Affiliated Selling goods goods Market Fair market Fair market December Announcement
Cowell legal person from services 12722.86 0.05% 15000 No Bank transferaffiliates fixed pricing price price 21 2024 No.:2024-098
assets etc.Total -- -- 649227.45 -- 1105500 -- -- -- -- --
Particulars of huge-amount sales returns N/A
If the total amount of daily related-party transactions that When expecting the annual daily related party transactions the Company conducts the appraisal and calculation of possible related party transactions
are expected to occur during the reporting period is according to the market situation but the actually accrued amount is determined based on market situation the two parties’ business development actual
estimated by type the actual transactions occurred during demands and specific implementation progress resulting in certain differences between actually accrued amount and expected amount. The foregoing
130Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
the reporting period (if any) belongs to the acts of normal business and will not have a significant impact on the daily operation and performance of the Company.Reason of any great difference between transaction price
and reference market price (if applicable) N/A
131Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2 Related-Party Transactions Involving Acquisition or Sales of Assets or Equities
□Applicable □N/A
There were no related party transactions arising from acquisition or sale of assets or equity during the reporting period.
3. Related-Party Transactions Involving Joint External Investment
□Applicable □N/A
There were no related party transactions regarding joint investments in third parties during the reporting period.
4. Accounts Receivable from and Payable to Related Parties
□Applicable □N/A
There were no amounts due to and from related parties during the reporting period.
5. Financial Business with its Related Financial Companies
□Applicable □N/A
There were no deposits loans credits or other financial transactions between the Company its related financial companies and
related 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 transactions during the reporting period.XV. Significant Contracts and Their Performance
1. Entrustment Contracting and Leases
(1)Entrustment
□Applicable □N/A
There were no entrustment events of the Company during the reporting period.
132Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Contracting
□Applicable □N/A
There were no contracting events of the Company during the reporting period.
133Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Leases
□Applicable □N/A
There were no leases of the Company during the reporting period.
2. Material Guarantees
□Applicable □N/A
In RMB 10000
External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries)
Disclosure date Amount of
Guarantee party of quota guaranteed Actual date of
Actual
guarantee Type of Collateral (if
Counter
guarantee (if Term of Fully executed
Whether or not
occurrence guarantee any) guarantee or not provided for aannouncement quota approved amount any) related party
Guarantees provided by the Company for its subsidiaries
Disclosure date Amount of
Guarantee party of quota guaranteed Actual date of
Actual
guarantee Type of Collateral (if
Counter Term of Fully executed Whether or not
announcement quota approved occurrence amount guarantee any)
guarantee (if provided for a
any) guarantee or not related party
LUXSHARE
PRECISION April 20 2021 71165.16 July 28 2021 0 Five years No Yes
Total guarantee quota approved for subsidiaries Total actual amount of guarantees for
within the reporting period (B1) subsidiaries within the reporting period (B2) 0
Total amount of guarantee approved to be provided
for subsidiaries as at the end of the reporting period 71165.16 Total actual guarantee balance for subsidiaries at
(B3) the end of the reporting period (B4)
0
The situation of guarantees provided by subsidiary companies to other subsidiary companies.Disclosure date Amount of
Guarantee party of quota guaranteed Actual date of
Actual Counter
guarantee Type of Collateral (if guarantee (if Term of Fully executed
Whether or not
announcement quota approved occurrence amount guarantee any) any) guarantee or not
provided for a
related party
Dachuang
Precision Six months
Intelligent
Manufacture 16.54 June 17 2022 16.54
Joint liability from the
guaranty maturity date of No Yes
(Dongguan) Co. the main debt
Ltd.
134Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Dachuang
Precision Six months
Intelligent 278.36 December 19 Joint liability from theManufacture 2022 278.36 guaranty maturity date of No Yes
(Kunshan) Co. the main debt
Ltd.Dachuang
Precision
Intelligent
Manufacture 8960.53 April 11 2023 8960.53
Joint liability
guaranty April 10 2025 No Yes
(Kunshan) Co.Ltd.Linkz
International 6019.26 December 14 Joint liability Continuing
Limited 2020
0 guaranty guarantee No Yes
TIME
Interconnect
Industrial Co. 3241.14 June 27 2017 0
Joint liability Continuing
guaranty guarantee No Yes
Ltd.Linkz
International
Limited TIME
Interconnect
Industrial Co.Ltd. TIME
Interconnect 15742.68 September 5 0 Joint liability ContinuingWiring 2022 guaranty guarantee No Yes
Technology Co.Ltd. and TIME
Interconnect
Server
Technology Co.Ltd.TIME
Interconnect
Industrial Co. 2803.68 June 25 2021 0
Joint liability Continuing
guaranty guarantee No Yes
Ltd.Linkz
International 351.71 November 20 0 Joint liability Continuing
Limited 2024 guaranty guarantee
No Yes
Linkz
International 93449.2 November 20 6009.5 Joint liability Continuing No Yes
Limited 2024 guaranty guarantee
Linkz 7408.32 October 9 0 Joint liability Continuing No Yes
135Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
International 2020 guaranty guarantee
Limited and
TIME
Interconnect
Industrial Co.Ltd.Linkz
International
Limited and
TIME 833.44 September 27 0 Joint liability Continuing
Interconnect 2021 guaranty guarantee
No Yes
Industrial Co.Ltd.Linkz
International
Limited and
TIME 1293.91 September 27 0 Joint liability Continuing
Interconnect 2021 guaranty guarantee
No Yes
Industrial Co.Ltd.Linkz
International
Limited and
TIME 7408.32 October 9 0 Joint liability Continuing No Yes
Interconnect 2020 guaranty guarantee
Industrial Co.Ltd.Linkz
International
Limited and
TIME 833.44 September 27 0 Joint liability Continuing No Yes
Interconnect 2021 guaranty guarantee
Industrial Co.Ltd.Linkz
International
Limited and
TIME 1293.91 September 27 0 Joint liability Continuing No Yes
Interconnect 2021 guaranty guarantee
Industrial Co.Ltd.TIME
Interconnect 7408.32 October 18 0 Joint liability Continuing No Yes
Server 2023 guaranty guarantee
136Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Technology Co.Ltd.TIME
Interconnect
Server 833.44 October 18 0 Joint liability Continuing
Technology Co. 2023 guaranty guarantee
No Yes
Ltd.TIME
Interconnect
Server 1293.91 October 18 0 Joint liability Continuing
Technology Co. 2023 guaranty guarantee
No Yes
Ltd.TIME
Interconnect 13890.6 June 28 2023 0 Joint liability ContinuingIndustrial Co. guaranty guarantee No Yes
Ltd.TIME
Interconnect
Technology 10000 April 17 2023 0 Joint liability Continuing No Yes
(Huizhou) guaranty guarantee
Limited
Total guarantee quota approved for Total actual amount of guarantees for
subsidiaries within the reporting period (C1) subsidiaries within the reporting period 6009.5(C2)
Total amount of guarantee approved to be Total actual guarantee balance for
provided for subsidiaries as at the end of the 183360.7 subsidiaries at the end of the reporting 15264.93
reporting period (C3) period (C4)
Total amount of guarantee provided by the Company (the sum of the above three items)
Total amount of guarantee approved during Total actual amount of guarantees within
the reporting period (A1+B1+C1) the reporting period (i.e. A2+B2+C2) 6009.5
Total amount of guarantee approved as at the Total actual guarantee balance at the end
end of the reporting period (A3+B3+C3) 254525.86 of the reporting period (A4+B4+C4) 15264.93
Ratio of total amount of guarantee actually provided (A4+B4+C4) to the net assets of
the Company 0.22%
Among which
Amount of guarantee for shareholders actual controller and their related parties (D) 0
Amount of debt guarantee provided for guaranteed party whose asset-liability ratio is not less than 70% directly or
indirectly (E) 0
Amount of total guarantee over 50% of net assets (F) 0
137Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Total amount guaranteed (D+E+F) 0
Explanations on the specific situation of guarantees provided by composite methods
N/A
138Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
3. Entrusted Management of Cash Assets
(1) Entrusted Wealth Management
□Applicable □N/A
Entrusted wealth management during the reporting period
In RMB 10000
Provision for
Type Source of funding Total amount Undue amount Unrecovered impairment onoverdue amount unrecovered
overdue amount
Bank wealth
management Self-owned capital 360626.15 130022.81 0 0
products
Total 360626.15 130022.81 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 RMB 10000
Total amount Source of funding Undue amount Unrecovered overdue amount
4220370 Self-owned capital 4220370 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
There were no other significant contracts of the Company 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
139Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
XVII. Significant Events of Subsidiaries of the Company
□Applicable □N/A
140Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Section VII Changes in Shareholdings and Particulars about
Shareholders
I. Changes in Shares
1. Changes in Shares
Unit: shares
Before the change ＋－ After the change
Shares
New Stock convertedQuantity Proportion shares dividend from Other Subtotal Quantity Proportionissued capital
reserve
I. Restricted Shares 12349131 0.17% 564285 5642856 6 17991987 0.25%
1. Shares held by the State
2. Shares held by State-owned
corporations
3. Shares held by other 1758946 0.02% 245742 245742domestic investors 7 7 4216373 0.06%
Incl.: Shares held by
domestic non-State-owned
corporations
Shares held by domestic 245742 245742
natural persons 1758946 0.02% 7 7 4216373 0.06%
4. Shares held by foreign 10590185 0.15% 318542 318542investors 9 9 13775614 0.19%
Incl.: Shares held by foreign
corporations
Shares held by foreign 10590185 0.15% 318542 318542natural persons 9 9 13775614 0.19%
II. Tradable shares 714833306 99.83% 714911 714911 72198247 90 90 257 99.75%
1. RMB-denominated ordinary 714833306 99.83% 714911 714911 7219824shares 7 90 90 257 99.75%
2. Foreign currency-
denominated shares listed
domestically
3. Foreign currency-
denominated shares listed
overseas
4. Others
III. Total shares 716068219 100.00% 771340 771340 72378168 46 46 244 100.00%
Reasons for changes in shares
□Applicable □N/A
1. During the reporting period the Company issued 77132256 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 shareincentive plans employee stock ownership plans and other employee incentives granted by 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
141Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
from May 10 2021 to November 2 2026. During the reporting period the number of shares issued upon bond conversion was
1790.
Approval of changes in shares
□Applicable □N/A
1. 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 June 21 2023.
2. 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.
3. 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.
4. Deliberation and approval by the 22nd meeting of the fifth Board of Directors and the 22nd meeting of the fifth Board of
Supervisors of the Company on December 29 2023.
5. Deliberation and approval by the 23rd meeting of the fifth Board of Directors and the 23rd meeting of the fifth Board of
Supervisors of the Company on February 28 2024.
6. Deliberation and approval by the 25th meeting of the fifth Board of Directors and the 25th meeting of the fifth Board of
Supervisors of the Company on June 3 2024.
7. Deliberation and approval by the 1st meeting of the sixth Board of Directors and the 1st meeting of the sixth Board of
Supervisors of the Company on July 5 2024.
8. Deliberation and approval by the 4th meeting of the sixth Board of Directors and the 4th meeting of the sixth Board of
Supervisors of the Company on October 25 2024.Transfer of share ownership
□Applicable □N/A
1. Period in which the stock options vested in the fifth vesting period of the initial grant under the 2018 stock option
incentive plan may be exercised by the relevant grantees: From December 6 2023 to September 24 2024.
2. Period in which the stock options vested in the fourth vesting period in initial grant under the 2019 stock option incentive
plan may be exercised by the relevant grantees: From July 4 2023 to April 21 2024.
3. Period in which the stock options vested in the fourth vesting period in reserved grant under the 2019 stock option
incentive plan may be exercised by the relevant grantees: From March 12 2024 to November 26 2024.
4. Period in which the stock options vested in the fifth vesting period in initial grant under the 2019 stock option incentive
plan may be exercised by the relevant grantees: From July 18 2024 to April 21 2025.
5. 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.
6. Period in which the stock options vested in the second vesting period in initial grant under the 2019 stock option incentive
plan may be exercised by the relevant grantees: From January 11 2024 to December 3 2024.
7. Period in which the stock options vested in the first vesting period in reserved grant under the 2019 stock option incentive
plan may be exercised by the relevant grantees: From June 17 2024 to December 5 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
142Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2. Changes in Non-tradable Shares
□Applicable □N/A
Unit: shares
Number of Number
Number of restricted of Number of
Name of restricted shares shares restricted restricted Reason for
shareholders at the beginning increased shares shares at theunlocked end of the restriction
Date of unlocking
of the period during the
period during the periodperiod
Restricted
shares of According to the conditionsWANG Tao 998462 1134448 0 2132910 senior for unlocking restricted shares
management of senior management
Restricted
WANG shares of According to the conditions
Laisheng 9193957 2385778 0 11579735 senior for unlocking restricted shares
management of senior management
Restricted According to the conditions
QIAN Jiwen 0 193500 0 193500 shares ofsenior for unlocking restricted shares
management of senior management
Restricted
shares of According to the conditionsLI Wei 760484 1129479 0 1889963 senior for unlocking restricted shares
management of senior management
Restricted
HUANG shares of According to the conditions
Dawei 659085 539390 0 1198475 senior for unlocking restricted shares
management of senior management
Restricted
WU shares of According to the conditions
Tiansong 737143 260261 0 997404 senior for unlocking restricted shares
management of senior management
Total 12349131 5642856 0 17991987 -- --
II. Offering and Listing of Securities
1. Offering of Securities (Preferred Shares Excluded) 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. Approved by the 17th 19th 20th 22nd 23rd and 25th meetings of the 5th session of the Board of Directors and the 1st
and 4th meetings of the 6th session of the Board of Directors the exercise conditions have been met for the fifth exercise period of
the Company's 2018 Stock Option Incentive Plan the fourth exercise period of the initial grant under the 2019 Stock Option
Incentive Plan the fourth exercise period of the reserved grant under the 2019 Stock Option Incentive Plan the fifth exercise
period of the initial grant under the 2019 Stock Option Incentive Plan the first exercise period of the reserved grant under the 2021
Stock Option Incentive Plan the second exercise period of the initial grant under the 2921 Stock Option Incentive Plan the second
exercise period of the reserved grant under the 2021 Stock Option Incentive Plan and the first exercise period under the 2022
143Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Stock Option Incentive Plan. The relevant stock option incentive participants were approved to exercise their options through self-
initiated exercise. During the reporting period a total of 77132256 shares were issued through self-initiated exercise by incentive
participants.
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 bonds was 1790.
3. Outstanding Employee Shares
□Applicable □N/A
III. Shareholders and Actual Controllers
1. Number of Shareholders and Shareholding Structure of the Company
Unit: shares
Total
number of
Total preferredshareholders Total number of preferred
Total number ordinaryshareholders with voting stockholders with votingof ordinary as of the end rights rights restored at the end ofshareholders 278535 of the month 274349 restored at last month before theat the end of prior to the the end of
0 disclosure date of the 0
the reporting disclosure the reporting annual report (if any) (Forperiod date of period (if details please refer to Note
annual report any) (For 8)details
please refer
to Note 8)
Shareholders holding more than 5% of shares or shares of the top 10 shareholders (excluding shares lent through refinancing)
Number of Increase ordecrease of Number Number of
Pledge mark or
freeze
Name of shareholders Nature of
Shareho shares held at of non-
shareholder lding the end of the
shares
within the restricted tradable Statusratio reporting reporting shares ordinary of Numberperiod period held shares held shares
Foreign
Luxshare Limited legal 37.74% 2731537636 0 0 2731537636 Pledge
8963000
person 00
Hong Kong Central Clearing Foreign 45430068
Company Limited legal 6.28% 454300681 47709216 0 N/A 0person 1
Industrial and Commercial Bank
of China Limited - Huatai-
PineBridge CSI 300 Exchange Other 1.21% 87304224 49996887 0 87304224 N/A 0
Traded Open-ended Index
Securities Investment Fund
Domestic
China Securities Finance Non-State-
Corporation Limited owned 1.17% 84428888 0 0 84428888 N/A 0Legal
Person
China Construction Bank
Corporation - E Fund CSI 300
Exchange Traded Open-ended Other 0.83% 60235497 46280800 0 60235497 N/A 0
Index Initiated Securities
144Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Investment Fund
State-
Central Huijin Investment Ltd. ownedLegal 0.80% 58041012 0 0 58041012 N/A 0
Person
China Merchants Bank Co. Ltd.- Excelsior Everbright Herun
Mixed Securities Investment Other 0.56% 40784573 34128027 0 40784573 N/A 0
Fund
Industrial and Commercial Bank
of China Limited - ChinaAMC
CSI 300 Exchange Traded Open- Other 0.55% 40039344 29767343 0 40039344 N/A 0
ended Index Securities
Investment Fund
E Fund Management Co. Ltd. -
Agricultural Bank of China - E
Fund CSI Financial Asset Other 0.53% 38656343 0 0 38656343 N/A 0
Management Plan
Huaxia Fund Management Co.Ltd. - Agricultural Bank of China
- Huaxia CSI Financial Asset Other 0.53% 38576831 0 0 38576831 N/A 0
Management Plan
Strategic investor or general legal person becomes the top 10
shareholders due to the placement of new shares (if any) (For details N/A
please refer to 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 shareholders listed above N/A
Description (if any) of special repurchase shareholders among top 10
shareholders (refer to Note 10) N/A
Shareholdings of top 10 unrestricted shareholders (Excluding shares lent via securities relending and senior executive restricted
shares)
Type
Name of shareholders Number of unrestricted shares held at the endof the reporting period Type Quantity
RMB
Luxshare Limited 2731537636 ordinary 273153763
shares 6
RMB
Hong Kong Central Clearing Company Limited 454300681 ordinary 454300681
shares
Industrial and Commercial Bank of China Limited - RMB
Huatai-PineBridge CSI 300 Exchange Traded Open- 87304224 ordinary 87304224
ended Index Securities Investment Fund shares
RMB
China Securities Finance Corporation Limited 84428888 ordinary 84428888
shares
China Construction Bank Corporation - E Fund CSI RMB
300 Exchange Traded Open-ended Index Initiated 60235497 ordinary 60235497
Securities Investment Fund shares
RMB
Central Huijin Investment Ltd. 58041012 ordinary 58041012
shares
China Merchants Bank Co. Ltd. - Excelsior RMB
Everbright Herun Mixed Securities Investment Fund 40784573 ordinary 40784573shares
Industrial and Commercial Bank of China Limited - RMB
ChinaAMC CSI 300 Exchange Traded Open-ended 40039344 ordinary 40039344
Index Securities Investment Fund shares
E Fund Management Co. Ltd. - Agricultural Bank of RMB
China - E Fund CSI Financial Asset Management Plan 38656343 ordinary 38656343
145Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
shares
Huaxia Fund Management Co. Ltd. - Agricultural RMB
Bank of China - Huaxia CSI Financial Asset 38576831 ordinary 38576831
Management Plan shares
Affiliates or concert parties among top 10 holders of tradable ordinary shares and among top 10 holders
of tradable ordinary shares and top 10 ordinary shareholders N/A
Engagement by top 10 ordinary shareholders in margin trading (if any) (Note 4) N/A
Information on Share Lending by Shareholders Holding 5% or More Top 10 Shareholders and Top 10 Holders of Unlimited
Outstanding Shares Participating in Securities Relending Business
□Applicable □N/A
Changes in Top 10 Shareholders and Top 10 Holders of Unlimited Outstanding Shares Compared to the Previous Period Due to
Securities Relending (Lending/Returning)
□Applicable □N/A
Top 10 ordinary shareholders or top 10 holders of tradable ordinary shares have conducted 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/
shareholder principal Date of establishment
Change in organization
code Main business
Luxshare Limited WANG LaichunWANG Laisheng August 27 1999 686629
Investment and share
holding
Shares held by the controlling shareholder in other companies listed on
domestic or foreign stock exchanges during the reporting period None
Change in the controlling shareholder during the reporting period
□Applicable □N/A
Our controlling shareholder has remained unchanged during the reporting period
3. Actual Controllers of the Company and their Concerted Parties
Nature of actual controllers: Natural person
Type of actual controllers: Foreign natural person
Whether or not hold a
Name of actual controller Relationship with the actualcontroller Nationality residence permit in any othercountry or region
WANG Laichun Herself Hong Kong No
WANG Laisheng Herself Hong Kong No
Ms. WANG Laichun is the Chairman of the Board of Directors & General Manager of the
Main occupations and titles 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.
146Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(now known as “Luxshare Precision Industry Co. Ltd.”) through Luxshare Limited and acted as
its Chairman of the Board of Directors.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 establishedfounded Luxshare Precision Industry (Shenzhen) Co. Ltd. (now known as “Luxshare PrecisionIndustry Co. Ltd.”).Whether or not control any
other company listed on a
domestic or foreign stock None
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:
王来春 Laichun Wang
王来胜 Laisheng Wang
立讯有限公司 Luxshare Limited
立讯精密 Luxshare-ICT
The actual controllers have controlled the Company through any trust or other ways of asset management
□Applicable □N/A
4. The Company’s Controlling Shareholder or Largest Shareholder and its Persons Acting in Concert
Pledged Account for 80% in Total of the Company’s Shares Held by them
□Applicable □N/A
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
147Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
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
□Applicable □N/A
148Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Section VIII Preference Shares
□Applicable □N/A
There were no preference shares in the Company during the reporting period
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
Bond Maturity Bond Interest andBond name Tradingabbreviation Bond code Issue date Start date date balance rate interestpayment venue
method
Phase III ultra- A lump
short-term sum
financing bonds payment
in 2023 of 23 Luxshare- 012384122 November November May 10 of
Interba
Luxshare ICT SCP003 14 2023 15 2023 2024 80000 2.70% principal nk bond
Precision and market
Industry Co. interest at
Ltd. maturity
Phase I ultra- A lump
short-term sum
financing bonds payment
in 2024 of 24 Luxshare- March 6 March 7 September of Interba
Luxshare ICT SCP001 012480746 2024 2024 3 2024 80000 2.33% principal nk bond
Precision and market
Industry Co. interest at
Ltd. maturity
Luxshare 24 Luxshare 012481272 April 11 April 12 October 9 A lump InterbaPrecision Precision 2024 2024 2024 50000 2.16% sum nk bond
149Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Industry Co. SCP002 (Sci- payment market
Ltd. 2024 Tech of
Second Tranche Innovation principal
Ultra-Short- Bond) and
Term Financing interest at
Bond (Sci-Tech maturity
Innovation
Bond)
Phase III ultra- A lump
short-term sum
financing bonds payment
in 2024 of 24 Luxshare- 012482004 June 27 June 28 2024 March 25
Interba
Luxshare ICT SCP003 2024 2025 100000 2.01%
of
principal nk bond
Precision and market
Industry Co. interest at
Ltd. maturity
Phase IV ultra- A lump
short-term sum
financing bonds payment
in 2024 of 24 Luxshare- Interba
Luxshare ICT SCP004 012482138
July 11 April 3
2024 July 12 2024 2025 100000 1.97%
of
principal nk bond
Precision and market
Industry Co. interest at
Ltd. maturity
Luxshare
Precision A lump
Industry Co. 24 Luxshare sum
Ltd. 2024 Fifth Precision payment
Tranche Ultra- SCP005 (Sci- July 23 April 18 Interba
Short-Term Tech 012482250 2024 July 24 2024 2025 100000 1.96%
of
principal nk bond
Financing Bond Innovation and market
(Sci-Tech Bond) interest at
Innovation maturity
Bond)
Luxshare
Precision A lump
Industry Co. 24 Luxshare sum
Ltd. 2024 Sixth Precision payment
Tranche Ultra- SCP006 (Sci- 012483117 September September June 17 of
Interba
Short-Term Tech 19 2024 20 2024 2025 100000 2.14% principal nk bond
Financing Bond Innovation and market
(Sci-Tech Bond) interest at
Innovation maturity
Bond)
Phase VII ultra- A lump
short-term sum
financing bonds payment
in 2024 of 24 Luxshare- 012483184 September September June 20
Interba
Luxshare ICT SCP007 24 2024 25 2024 2025 100000 2.15%
of
principal nk bond
Precision and market
Industry Co. interest at
Ltd. maturity
Investors’ appropriate arrangements (if any) Institutional Investors on the national interbank bond market (except for purchasersprohibited by laws and regulations of China)
Applicable trading mechanism Public trading
Whether there is the risk of termination of
listing (if any) and countermeasures No
Bonds overdue but not yet repaid
□Applicable □N/A
150Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2. Trigger and Implementation of the Issuer or Investor Option Provisions or Investor Protection
Provisions
□Applicable □N/A
3. Information about Agents
Name of
accountants Contact
Name of bond project Name of intermediary Office address signing this person of Phone
Annual Intermediary
Report
Phase III ultra-short-term financing Shanghai Pudong
bonds in 2023 of Luxshare Development Bank Co. No. 168 Yincheng None DONG 021-
Precision Industry Co. Ltd. Ltd. Middle Road Shanghai Wenchao 68476774
Phase III ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3
bonds in 2023 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 TONG 0755-
Precision Industry Co. Ltd. Branch Zhongxin 4th Road
None Linwen 36806500
Futian District Shenzhen
10th Floor Building 7
Phase III ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2023 of Luxshare Certified Public Fourth Ring Middle LI Jing ZHU Jiandi 010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District ZHEN Zhijie 88210608
Beijing
Building 1 South Tower
Phase III ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2023 of Luxshare International Credit 1102 1103 No. 3 None XING Dong 010-
Precision Industry Co. Ltd. Assessment Co. Ltd. Chaowai West Street 62299850Chaoyang District
Beijing
33rd-34th Floors
Phase III ultra-short-term financing
bonds in 2023 of Luxshare China Central Depository
Oriental International
& Clearing Co. Ltd. Finance Plaza 318 None XIE Zhong
021-
Precision Industry Co. Ltd. Zhongshan South Road 63326662
Shanghai
Phase I ultra-short-term financing Shanghai Pudong
bonds in 2024 of Luxshare Development Bank Co. No. 168 Yincheng 021-
Precision Industry Co. Ltd. Ltd. Middle Road Shanghai
None WUWenting 68475817
Phase I ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3
bonds in 2024 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 0755-
Precision Industry Co. Ltd. Branch Zhongxin 4th Road
None LI Jianhui 36806500
Futian District Shenzhen
10th Floor Building 7
Phase I ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2024 of Luxshare Certified Public Fourth Ring Middle LI Jing ZHU Jiandi 010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District ZHEN Zhijie 88210608
Beijing
Building 1 South Tower
Phase I ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2024 of Luxshare International Credit 1102 1103 No. 3 None XING Dong 010-
Precision Industry Co. Ltd. Assessment Co. Ltd. Chaowai West Street 62299850Chaoyang District
Beijing
33rd-34th Floors
Phase I ultra-short-term financing China Central Depository Oriental Internationalbonds in 2024 of Luxshare Finance Plaza 318 None XIE Zhong 021-
Precision Industry Co. Ltd. & Clearing Co. Ltd. Zhongshan South Road 63326662
Shanghai
Phase II ultra-short-term financing No. 218 Haihe East
bonds in 2024 of Luxshare China Bohai Bank Co. Road Hedong District None QIAO 0755-
Precision Industry Co. Ltd. Ltd. Tianjin China Hanqing 36806128
Phase II ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3 0755-
bonds in 2024 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 None LI Jianhui 36806500
151Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Precision Industry Co. Ltd. Branch Zhongxin 4th Road
Futian District Shenzhen
10th Floor Building 7
Phase II ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2024 of Luxshare Certified Public Fourth Ring Middle LI Jing ZHU Jiandi 010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District ZHEN Zhijie 88210608
Beijing
Building 1 South Tower
Phase II ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2024 of Luxshare International Credit 1102 1103 No. 3 010-
Precision Industry Co. Ltd. Assessment Co. Ltd. Chaowai West Street
None XING Dong 62299850
Chaoyang District
Beijing
33rd-34th Floors
Phase II ultra-short-term financing China Central Depository Oriental Internationalbonds in 2024 of Luxshare & Clearing Co. Ltd. Finance Plaza 318 None XIE Zhong
021-
Precision Industry Co. Ltd. Zhongshan South Road 63326662
Shanghai
Phase III ultra-short-term financing No. 5047 Shennan East
bonds in 2024 of Luxshare PingAn Bank Co. Ltd. Road Luohu District None DAI Yichi 0755-
Precision Industry Co. Ltd. Shenzhen Guangdong 88675975Province
Phase III ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3
bonds in 2024 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 0755-
Precision Industry Co. Ltd. Branch Zhongxin 4th Road
None LI Jianhui 36806500
Futian District Shenzhen
10th Floor Building 7
Phase III ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2024 of Luxshare Certified Public Fourth Ring Middle LI Jing ZHU Jiandi 010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District ZHEN Zhijie 88210608
Beijing
Building 1 South Tower
Phase III ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2024 of Luxshare International Credit 1102 1103 No. 3 None XING Dong 010-
Precision Industry Co. Ltd. Assessment Co. Ltd. Chaowai West Street 62299850Chaoyang District
Beijing
33rd-34th Floors
Phase III ultra-short-term financing China Central Depository Oriental Internationalbonds in 2024 of Luxshare & Clearing Co. Ltd. Finance Plaza 318 None MA Jianyang
021-
Precision Industry Co. Ltd. Zhongshan South Road 63326662
Shanghai
Phase IV ultra-short-term financing CITIC Tower No. 10
bonds in 2024 of Luxshare China CITIC Bank Guanghua Road None ZHAO 010-
Precision Industry Co. Ltd. Corporation Limited Chaoyang District Zhipeng 66635951Beijing
Phase IV ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3
bonds in 2024 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 None LI Jianhui 0755-
Precision Industry Co. Ltd. Branch Zhongxin 4th Road 36806500Futian District Shenzhen
10th Floor Building 7
Phase IV ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2024 of Luxshare Certified Public Fourth Ring Middle LI JingZHEN Zhijie ZHU Jiandi
010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District 88210608
Beijing
Building 1 South Tower
Phase IV ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2024 of Luxshare International Credit 1102 1103 No. 3 None LI Xiaomei 0755-
Precision Industry Co. Ltd. Assessment Co. Ltd. Chaowai West Street 82710576Chaoyang District
Beijing
33rd-34th Floors
Phase IV ultra-short-term financing
bonds in 2024 of Luxshare China Central Depository
Oriental International
& Clearing Co. Ltd. Finance Plaza 318 None MA Jianyang
021-
Precision Industry Co. Ltd. Zhongshan South Road 63326662
Shanghai
152Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Phase V ultra-short-term financing Shanghai Pudong
bonds in 2023 of Luxshare Development Bank Co. No. 168 Yincheng 021-
Precision Industry Co. Ltd. Ltd. Middle Road Shanghai
None YANYijia 68475804
Phase V ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3
bonds in 2023 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 0755-
Precision Industry Co. Ltd. Branch Zhongxin 4th Road
None LI Jianhui 36806500
Futian District Shenzhen
10th Floor Building 7
Phase V ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2023 of Luxshare Certified Public Fourth Ring Middle LI Jing 010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District ZHEN Zhijie
ZHU Jiandi 88210608
Beijing
Building 1 South Tower
Phase V ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2023 of Luxshare International Credit 1102 1103 No. 3Chaowai West Street None LI Xiaomei
0755-
Precision Industry Co. Ltd. Assessment Co. Ltd. 82710576Chaoyang District
Beijing
33rd-34th Floors
Phase V ultra-short-term financing Oriental International
bonds in 2023 of Luxshare China Central Depository& Clearing Co. Ltd. Finance Plaza 318 None MA Jianyang
021-
Precision Industry Co. Ltd. Zhongshan South Road 63326662
Shanghai
Phase VI ultra-short-term financing Shanghai Pudong
bonds in 2023 of Luxshare Development Bank Co. No. 168 YinchengMiddle Road Shanghai None YANYijia
021-
Precision Industry Co. Ltd. Ltd. 68475804
Phase VI ultra-short-term financing Han Kun Law Offices 20th Floor Tower 3
bonds in 2023 of Luxshare (Shenzhen) Beijing Kerry Plaza No. 1 0755-
Precision Industry Co. Ltd. Branch Zhongxin 4th Road
None LI Jianhui 36806500
Futian District Shenzhen
10th Floor Building 7
Phase VI ultra-short-term financing BDO China Shu Lun Pan No. 16 Courtyard West
bonds in 2023 of Luxshare Certified Public Fourth Ring Middle LI Jing 010-
Precision Industry Co. Ltd. Accountants LLP Road Haidian District ZHEN Zhijie
ZHU Jiandi 88210608
Beijing
Building 1 South Tower
Phase VI ultra-short-term financing EASTMONEY Ratings 11th Floor Units 1101
bonds in 2023 of Luxshare International Credit 1102 1103 No. 3 0755-
Precision Industry Co. Ltd. Assessment Co. Ltd. Chaowai West Street
None LI Xiaomei 82710576
Chaoyang District
Beijing
33rd-34th Floors
Phase VI ultra-short-term financing Oriental International
bonds in 2023 of Luxshare China Central Depository& Clearing Co. Ltd. Finance Plaza 318 None MA Jianyang
021-
Precision Industry Co. Ltd. Zhongshan South Road 63326662
Shanghai
Phase VII ultra-short-term No. 5047 Shennan East
financing bonds in 2024 of Road Luohu District WANG 0755-
Luxshare Precision Industry Co. Ping An Bank Co. Ltd. Shenzhen Guangdong None Shujuan 88677955
Ltd. Province
Phase VII ultra-short-term CITIC Tower No. 10
financing bonds in 2024 of China CITIC Bank Guanghua Road ZHAO 010-
Luxshare Precision Industry Co. Corporation Limited Chaoyang District None Zhipeng 66635951
Ltd. Beijing
Phase VII ultra-short-term Han Kun Law Offices 20th Floor Tower 3financing bonds in 2024 of (Shenzhen) Beijing Kerry Plaza No. 1 0755-Luxshare Precision Industry Co. Branch Zhongxin 4th Road
None LI Jianhui 36806500
Ltd. Futian District Shenzhen
Phase VII ultra-short-term 10th Floor Building 7
financing bonds in 2024 of BDO China Shu Lun Pan No. 16 Courtyard West
Luxshare Precision Industry Co. Certified Public Fourth Ring Middle
LI Jing ZHU Jiandi 010-
Ltd. Accountants LLP Road Haidian District
ZHEN Zhijie 88210608
Beijing
Phase VII ultra-short-term
financing bonds in 2024 of EASTMONEY Ratings
Building 1 South Tower
International Credit 11th Floor Units 1101 0755-Luxshare Precision Industry Co. None LI Xiaomei
Ltd. Assessment Co. Ltd.
1102 1103 No. 3 82710576
Chaowai West Street
153Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Chaoyang District
Beijing
Phase VII ultra-short-term 33rd-34th Floors
financing bonds in 2024 of China Central Depository Oriental International 021-
Luxshare Precision Industry Co. & Clearing Co. Ltd. Finance Plaza 318 None MA Jianyang
Ltd. Zhongshan South Road
63326662
Shanghai
The above-mentioned intermediaries were changed during the reporting period
□Yes□No
4. Usage of the Funds Raised
In RMB 10000
Rectifications Consistent
Operation of of use of the with the usage
Agreed use plan and
Name of bond project Total funds purpose of the Amount Unused
special proceeds in other
raised used amount account for violation ofproceeds (if laws and agreements asfunds raised
any) regulations (if promised in
any) the prospectusor not
Phase III ultra-short-
term financing bonds in Used to repay the
2023 of Luxshare 80000 issuer's interest- 80000 0 Normal N/A Yes
Precision Industry Co. bearing debt
Ltd.Phase I ultra-short-term Used to repay the
financing bonds in interest-bearing
2024 of Luxshare 80000 debt of the issuer 80000 0 Normal N/A Yes
Precision Industry Co. and its controlled
Ltd. subsidiaries
Luxshare Precision
Industry Co. Ltd. 2024 Used to repay the
Second Tranche Ultra- interest-bearing
Short-Term Financing 50000 debt of the issuer 50000 0 Normal N/A Yes
Bond (Sci-Tech and its controlled
Innovation Bond) subsidiaries
Phase III ultra-short- Used to repay the
term financing bonds in interest-bearing
2024 of Luxshare 100000 debt of the issuer 100000 0 Normal N/A Yes
Precision Industry Co. and its controlled
Ltd. subsidiaries
Phase IV ultra-short-
term financing bonds in Used to repay
2024 of Luxshare 100000 borrowings from
Precision Industry Co. financial
100000 0 Normal N/A Yes
Ltd. institutions
Luxshare Precision
Industry Co. Ltd. 2024 Used to repay
Fifth Tranche Ultra- borrowings from
Short-Term Financing 100000 financial 100000 0 Normal N/A Yes
Bond (Sci-Tech institutions
Innovation Bond)
Luxshare Precision
Industry Co. Ltd. 2024 Used to repay
Sixth Tranche Ultra- borrowings from
Short-Term Financing 100000 financial 100000 0 Normal N/A Yes
Bond (Sci-Tech institutions
Innovation Bond)
Phase VII ultra-short- Used to repay
term financing bonds in 100000 borrowings from 100000 0 Normal N/A Yes
2024 of Luxshare financial
154Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Precision Industry Co. institutions
Ltd.Use of proceeds in the construction projects
□Applicable □N/A
Change by the Company of the usage of the above-mentioned proceeds during the reporting period
□Applicable □N/A
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable □N/A
6. Implementation and Changes of Guarantees Debt Repayment Plans and Other Debt Repayment
Security Measures during the Reporting Period and their Effects on Bond Investors
□Applicable □N/A
IV. Convertible Corporate Bonds
□Applicable □N/A
1. Historic Adjustment of Conversion Price
I. 2020
(1) The initial conversion price of the Company's convertible bonds was set at RMB 58.62 per share.
(2) Due to the voluntary exercise of stock options by incentive recipients under the Company's equity incentive plan from
November 3 2020 (the issuance date of the convertible bonds) to December 10 2020 the Company issued an additional 3281228
shares resulting in an adjustment of the conversion price from RMB 58.62 per share to RMB 58.60 per share effective from
December 14 2020.
(3) Due to the voluntary exercise of stock options by incentive recipients under the Company's equity incentive plan on
December 25 2020 the Company issued an additional 17765322 shares resulting in an adjustment of the conversion price from
RMB 58.60 per share to RMB 58.48 per share effective from December 30 2020.
(4) As of the end of the reporting period the conversion price of the Company's convertible bonds stands at RMB 58.48 per
share.II. 2021
(1) The initial conversion price of the Company's convertible bonds was set at RMB 58.48 per share.
(2) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 4304601 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan resulting in the addition of 445471 shares the conversion price was adjusted from RMB 58.48
per share to RMB 58.44 per share effective from January 13 2021.
(3) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 5459122 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan resulting in the addition of 3767011 shares the conversion price was adjusted from RMB 58.44
per share to RMB 58.38 per share effective from February 24 2021.
155Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(4) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 2649238 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan resulting in the addition of 967132 shares the conversion price was adjusted from RMB 58.38
per share to RMB 58.36 per share effective from March 11 2021.
(5) Due to the implementation of the 2020 annual equity distribution with the Company's existing total share capital of
7035428828 shares as the base a cash dividend of RMB 1.099999 per 10 shares was distributed to all shareholders resulting in
an adjustment of the conversion price from RMB 58.36 per share to RMB 58.25 per share effective from July 8 2021.
(6) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 1032246 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan resulting in the addition of 7360758 shares the conversion price was adjusted from RMB 58.25
per share to RMB 58.20 per share effective from July 22 2021.
(7) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 374655 shares the exercise by incentive recipients of the first grant of stock options under the 2019
stock option incentive plan resulting in the addition of 3417190 shares and the reservation of shares for future issuance to
incentive recipients the conversion price was adjusted from RMB 58.20 per share to RMB 58.18 per share effective from
September 6 2021.
(8) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 34828 shares the exercise by incentive recipients of the first grant of stock options under the 2019
stock option incentive plan resulting in the addition of 2501419 shares and the reservation of shares for future issuance to
incentive recipients the conversion price was adjusted from RMB 58.18 per share to RMB 58.16 per share effective from
November 10 2021.
(9) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 14413326 shares the exercise by incentive recipients of the first grant of stock options under the 2019
stock option incentive plan resulting in the addition of 1112879 shares and the reservation of shares for future issuance to
incentive recipients resulting in a total addition of 41598 shares the conversion price was adjusted from RMB 58.16 per share to
RMB 58.05 per share effective from December 29 2021.
(10) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 5184144 shares the exercise by incentive recipients of the first grant of stock options under the 2019
stock option incentive plan resulting in the addition of 365642 shares and the reservation of shares for future issuance to
incentive recipients the conversion price was adjusted from RMB 58.05 per share to RMB 58.01 per share effective from
December 31 2021.
(11) As of the end of the reporting period the conversion price of the Company's convertible bonds stands at RMB 58.01 per
share.III. 2022
(1) As of the beginning of the reporting period the conversion price of convertible bonds of the Company was RMB58.48
per share.
(2) The conversion price was adjusted from RMB58.01 per share to RMB57.98 per share which became effective on
January 13 2022 because 3747618 shares were added arising from exercise by grantees under 2018 stock option incentive plan
and 560728 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the
Company.
(3) The conversion price was adjusted from RMB57.98 per share to RMB57.97 per share which became effective on
January 25 2022 because 1132798 shares were added arising from exercise by grantees under 2018 stock option incentive plan
156Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
and 270342 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the
Company.
(4) The conversion price was adjusted from RMB57.97 per share to RMB57.93 per share which became effective on March
8 2022 because 2212582 shares were added arising from exercise by grantees under 2018 stock option incentive plan and
508705 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and 3011626
reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company.
(5) The conversion price was adjusted from RMB57.93 per share to RMB57.92 per share which became effective on March
22 2022 because 873526 shares were added arising from exercise by grantees under 2018 stock option incentive plan and
233381 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and 424954
reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company.
(6) The conversion price was adjusted from RMB57.92 per share to RMB57.91 per share which became effective on May
25 2022 because 627.019 shares were added arising from exercise by grantees under 2018 stock option incentive plan and
148641 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the
Company.
(7) The conversion price was adjusted from RMB57.91 per share to RMB57.80 per share which became effective on July 13
2022 because the Company implemented the annual equity distribution in 2021 and distributed RMB1.099820 in cash per 10
shares to all shareholders based on the Company’s existing total share capital of 7085454576 shares.
(8) The conversion price was adjusted from RMB57.80 per share to RMB57.75 per share which became effective on July 27
2022 because 880088 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 7580662
shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and 79033 reserved
shares were exercised by grantees under 2019 stock option incentive plan of the Company.
(9) The conversion price was adjusted from RMB57.75 per share to RMB57.73 per share which became effective on
September 7 2022 because 468709 shares were added arising from exercise by grantees under 2018 stock option incentive plan
and 2920986 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and
139180 reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company.
(10) The conversion price was adjusted from RMB57.73 per share to RMB57.71 per share which became effective on
November 22 2022 because 379470 shares were added arising from exercise by grantees under 2018 stock option incentive plan
and 1911486 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and
91549 reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company.
(11) The conversion price was adjusted from RMB57.71 per share to RMB57.63 per share which became effective on
December 20 2022 because 11412022 shares were added arising from exercise by grantees under 2018 stock option incentive
plan and 294313 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the
Company.
(12) As of the end of the reporting period the conversion price of the Company's convertible bonds stands at RMB 57.63 per
share.IV. 2023
(1) At the beginning of the reporting period the conversion price of the Company's convertible bonds was RMB 57.63 per
share.
(2) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 3752347 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan resulting in the addition of 116679 shares the conversion price was adjusted from RMB 57.63
per share to RMB 57.60 per share effective from January 4 2023.
157Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 9094213 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan as well as the reservation of shares for future issuance to incentive recipients resulting in a total
addition of 5811753 shares the conversion price was adjusted from RMB 57.60 per share to RMB 57.50 per share effective from
March 24 2023.
(4) Due to the implementation of the 2022 annual equity distribution with the Company's existing total share capital of
7132251351 shares as the base a cash dividend of RMB 1.299661 per 10 shares was distributed to all shareholders resulting in
an adjustment of the conversion price from RMB 57.91 per share to RMB 57.37 per share effective from June 15 2023.
(5) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 2508221 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan as well as the reservation of shares for future issuance to incentive recipients resulting in a total
addition of 7575022 shares the conversion price was adjusted from RMB 57.37 per share to RMB 57.31 per share effective from
July 26 2023.
(6) As of the end of the reporting period the conversion price of the Company's convertible bonds stands at RMB 57.31 per
share.V. 2024
(1) At the beginning of the reporting period the conversion price of the Company's convertible bonds was RMB 57.31 per
share.
(2) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 13776202 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan resulting in the addition of 4570836 shares the conversion price was adjusted from RMB 57.31
per share to RMB 57.19 per share effective from January 3 2024.
(3) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 11082947 shares and the exercise by incentive recipients of the first grant of stock options under the
2019 stock option incentive plan as well as the reservation of shares for future issuance to incentive recipients resulting in a total
addition of 6245962 shares the conversion price was adjusted from RMB 57.19 per share to RMB 57.08 per share effective from
April 3 2024.
(4) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 3006393 shares the reservation of shares for future issuance to incentive recipients under the
Company's 2019 stock option incentive plan resulting in a total addition of 1054636 shares and the exercise by incentive
recipients of the first grant of stock options under the Company's 2021 stock option incentive plan as well as the reservation of
shares for future issuance to incentive recipients resulting in a total addition of 1252720 shares the conversion price was
adjusted from RMB 57.08 per share to RMB 56.98 per share effective from July 2 2024.
(4) Due to the implementation of the 2023 annual equity distribution with the Company's existing total share capital of
7203315644 shares as the base a cash dividend of RMB 2.989461 per 10 shares was distributed to all shareholders resulting in
an adjustment of the conversion price from RMB 56.98 per share to RMB 56.68 per share effective from July 11 2024.
(4) Due to the exercise of stock options by incentive recipients under the Company's 2018 stock option incentive plan
resulting in the addition of 2320401 shares the exercise by incentive recipients of the first grant of stock options under the
Company's 2019 stock option incentive plan as well as the reservation of shares for future issuance to incentive recipients
resulting in a total addition of 9993551 shares the exercise by incentive recipients of the first grant of stock options under the
Company's 2019 stock option incentive plan as well as the reservation of shares for future issuance to incentive recipients
resulting in a total addition of 5234887 shares and the exercise of stock options by incentive recipients under the Company's
158Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2022 stock option incentive plan resulting in the addition of 7733438 shares the conversion price was adjusted from RMB 56.68
per share to RMB 56.56 per share effective from October 9 2024.
(7) As of the end of the reporting period the conversion price of the Company's convertible bonds stands at RMB 56.56 per
share.
2. Accumulative Conversion of Convertible Bonds into Shares
□Applicable □N/A
Proportion
of
Amount of Number of accumulated Proportion
Convertible Beginning Total issuedconvertible Total issue accumulativ accumulativ
converted Amount of of amount of
bond and ending bonds amount e converted e converted
share to the unconverted unconverted
abbreviation dates (piece) (RMB) shares shares
total shares bonds bonds to the
(RMB) (share) issued by the (RMB) total issuedCompany amount
before
conversion
Convertible From May
bonds of 10 2021 toNovember 2 30000000
300000000
0.001013400.0017346.000.00%
299898660
Luxshare 0.00
99.97%
2026
3. Top 10 Holders of Convertible Corporate Bonds
Nature of Number of Amount of Percentage of
holder of convertible convertible convertibleN Name of holder of convertible corporate
o. bonds convertible
corporate bonds corporate bonds corporate bonds
corporate held at the end of held at the end of held at the end of
bonds the reporting the reporting the reportingperiod period (RMB) period
New China Life Insurance Co. Ltd. -
1 Dividend - Individual Dividend - 018L- Other 1521336 152133600.00 5.07%
FH002 Shenzhen
China Construction Bank Corporation -
2 CEE & Partners New Blue Chip FlexibleAllocation Mixed Securities Investment Other 1451370 145137000.00 4.84%
Fund
China Merchants Bank Co. Ltd. - Bosera
3 CSI Convertible Bond and ExchangeableBond Exchange Traded Open-ended Other 1294766 129476600.00 4.32%
Index Securities Investment Fund
New China Life Insurance Co. Ltd. -
4 Traditional - Ordinary Insurance Product Other 1206389 120638900.00 4.02%
- 018L-CT001 Shenzhen
State-owned
5 China Galaxy Securities Co. Ltd. Legal 929667 92966700.00 3.10%
Person
ICBC Credit Suisse Tianfeng Fixed
6 Income Pension Product - Bank of China Other 753957 75395700.00 2.51%
Limited
7 The Hongkong and Shanghai Banking ForeignCorporation Limited legal person 653171 65317100.00 2.18%
China Merchants Bank Co. Ltd. -
8 Industrial Securities Enhanced Income Other 580690 58069000.00 1.94%
Bond Securities Investment Fund
Huatai-PineBridge Yousheng Convertible
9 Bond Fixed Income Pension Product - Other 508548 50854800.00 1.70%
China Merchants Bank Co. Ltd.
10 National Council for Social Security Other 501057 50105700.00 1.67%
159Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Fund Portfolio 414
4. Significant Changes in the Profitability Assets and Credit Status of the Guarantors
□Applicable □N/A
5. The Company’s Liabilities Changes in Credit at the End of the Reporting Period and Cash
Arrangements for Debt Repayment in Future Years
According to the Credit Rating Report (Lian He [2024] No. 4400) issued by China Lianhe Credit Rating Co. Ltd. on June 18
2024 the long-term credit rating of the Company as the entity is AA+ and the credit rating of the convertible bonds of the
Company is AA+. There is no significant change in the Company’s liabilities and credit. For main accounting data and financial
indicators please see the “VIII Main Accounting Date and Financial Indicators in the Past Two Years” under Section IX of this
Annual Report.V. The Loss in the Scope of Consolidated Statements of the Company during the Reporting
Period Exceeded 10% of the Net Assets at the End of the Previous Reporting Period
□Applicable □N/A
VI. Overdue Interest-Bearing Debts Other than Bonds at the End of the Reporting Period
□Applicable □N/A
VII. There were Violations of Rules and Regulations during the Reporting Period
□Yes□No
VIII. Main Accounting Data and Financial Indicators of the Company for the Most Recent
Two Years as of the End of the Reporting Period
In RMB 10000
Item December 31 2024 December 31 2023 Y/Y% Change
Current ratio 1.2166 1.2591 -3.38%
Equity-debt ratio 62.16% 56.61% 5.55%
Quick ratio 0.9382 0.8615 8.90%
2024 2023 Y/Y% Change
Net profit excluding non-
recurring profit and loss 1169430.56 1018555.36 14.81%
EBITDA - total debt ratio 42.59% 61.41% -18.82%
Interest coverage ratio 12.01 10.36 15.93%
Cash interest coverage ratio 21.37 22.58 -5.36%
EBITDA - interest coverage
ratio 19.64 17.98 9.23%
Rate of loans due and repaid 100.00% 100.00% 0.00%
Rate of interest due and paid 100.00% 100.00% 0.00%
160Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Section X Financial Report
I. Auditor’s Report
Audit opinion Unqualified Opinion
Signing date of audit report April 24 2025
Auditor BDO China Shu Lun Pan Certified Public Accountants LLP
Auditor report document number Xin Kuai Shi Bao Zi [2025] No. ZB10848
Name of certified public accountants QIANG Guiying ZHANG Yehua
Main Body of Auditor’s Report
I. Audit Opinion
We have audited the financial statements of Luxshare Precision Industry Co. Ltd. (“Luxshare Precision”) which comprise
the consolidated and parent company’s balance sheets as at December 31 2024 and the consolidated and parent company’s
income statements the consolidated and parent company’s statements of cash flows and the consolidated and parent company’s
statements of changes in owners’ equity for the year then ended and the notes to the financial statements.In our opinion the accompanying financial statements are prepared in all material respects in accordance with the
Accounting Standards for Business Enterprises and fairly present the consolidated and parent company’s financial position as of
December 31 2024 and the consolidated and parent company’s operating results and cash flows for the year then ended.II. Basis for Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financialstatements” section of our report. We are independent of Luxshare Precision with the Code of Ethics for Chinese Certified Public
Accountants and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole
and in forming our opinion thereon and we do not provide a separate opinion on these matters.Key audit matters identified in our audit are summarized as below:
Key audit matters How we addressed the matter in our audit
(I) Revenue recognition
For details and analysis of the accounting policies for For product sales revenue recognition the audit
revenue recognition please refer to the accounting policies procedures we performed primarily included:
described in Note (26) under "III. Significant Accounting Policies 1. Understand evaluate and test the design of the key
and Accounting Estimates" and Note (47) under "V. Notes to internal controls of the management related to revenue
Consolidated Financial Statement Items" in the Notes to the recognition and the operational effectiveness of those controls;
Financial Statements. 2. Sample the product sales revenue to make test thereof
In 2024 Luxshare Precision’s operating income presented according to different regions and customers: check supporting
in its consolidated financial statements amounted to RMB documents related to revenue recognition;
268794737600.00. Luxshare Precision has a large number of 3. Implement the analytical procedures on income and
customers at home and abroad. Under different delivery methods gross profit and determine whether there are abnormal
the Company recognizes revenue upon the transfer of control of a fluctuations in the amount of revenue for the current period;
related product to a customer. If a customer is also the supplier of 4. Understand the modes of cooperation between the
some raw materials the Company recognizes the purchase of raw Company and customers and suppliers and evaluate the product
materials and sales of products respectively based on the transfer liability share and the transfer of control;
of inventory risks and rewards product liability credit risk 5. Evaluate the accuracy and completeness of revenue in
bearers and business nature that is the sales revenue is conjunction with the confirmation procedures for receivables &
recognized based on the gross amount. The revenue is one of the payables and inventories; and
Company’s key performance indicators and the main source of 6. Analyze the post-period recovery of accounts
the Company’s profits so we identify the revenue from product receivable.
161Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
sales as the key audit matter based on the importance of the
accounting policy for revenue recognition and the amount
involved.(II) Provision for decline in value of inventories
Please see the accounting policies described in the Item For the provision for impairment of inventories the audit
(11) under the Note “III. Significant accounting policies and procedures we performed primarily included:accounting estimates” and the Item (11) under the Note “V. Notes 1. Understand evaluate and test the design of the keyto consolidated financial statements” to the financial statements internal controls of the management related to the provision for
(8). decline in value of inventories and the operational effectiveness
As at December 31 2024 Luxshare Precision’s inventories of those controls;
and provision for decline in value of inventories presented in its 2. Obtain the Company’s calculation sheet of the
consolidated financial statements amounted to RMB provision for decline in value of inventories review the net
32918819600.00 and RMB1216144000.00 respectively. realizable value of inventories and the provision for decline in
Inventories of the Company are stated at the lower of cost or net value of inventories and evaluate whether the judgment made
realizable value. by the management in determining the net realizable value of
For finished products their net realizable value is determined at inventories is reasonable;
the estimated selling price of these inventories less the estimated 3. Check the quantity and conditions of inventories focus
costs necessary to make the sale and relevant taxes; for the on inspecting the long-term inventories and analyze the
inventories that need to be processed in the ordinary production adequacy of the provision for decline in value of inventories if
and operation process their net realizable value is determined at any indication exists that such inventories may be impaired in
the estimated selling price of finished products less the estimated conjunction with roll-forward procedures; and
costs of completion and the estimated costs necessary to make the 4. Check the current changes of the provision for decline
sale and relevant taxes. The determination of the net realizable in value of inventories made in previous years and analyze the
value of inventories involves the management’s use of significant rationality of the changes in the provision for decline in value of
accounting estimates and judgments and the provision for inventories.decline in value of inventories is of significance to the
consolidated financial statements so we identify the provision for
decline in value of inventories as the key audit matter.IV. Other Information
The management of Luxshare Precision (“management”) is responsible for other information. Other information comprises
the information included in the 2024 Annual Report of Luxshare Precision but does not include the financial statements and our
auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other information we are
required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and those Charged with Governance for the Financial Statements
The management is responsible for the preparation and fair presentation of the financial statements in accordance with
Accounting Standards for Business Enterprises and designing implementing and maintaining internal control that is necessary to
enable the financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing Luxshare Precision’s ability to continue as
a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless
the management either intends to liquidate Luxshare Precision or to cease operations or has no realistic alternative but to do so.Those charged with governance of Luxshare Precision (hereinafter referred to as “those charged with governance”) are
responsible for overseeing Luxshare Precision’s financial reporting process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with China Standards on Auditing will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if
162Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis
of these financial statements.As part of an audit in accordance with China Standards on Auditing we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design
and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error
as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control;
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances;
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management;
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and meanwhile
based on the audit evidence obtained on whether a material uncertainty exists related to events or conditions that may cast
significant doubts on Luxshare Precision’s ability to continue as a going concern. If we conclude that a material uncertainty exists
we are required to draw attention in our auditor’s report to the related disclosures in the financial statements. If such disclosures
are inadequate we are required to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However future events or conditions may cause Luxshare Precision to cease to continue as a going concern.
(5) Evaluate the overall presentation (including disclosure) structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation; and
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within Luxshare Precision to express an opinion on the consolidated financial statements. We are responsible for the direction
supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the
audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare
circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.II. Financial Statements
Statements in notes to the financial statements are presented in RMB.
1. Consolidated Balance Sheet
Prepared by: Luxshare Precision Industry Co. Ltd.December 31 2024
In RMB
Item Closing balance Opening balance
163Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Current assets:
Cash and bank balances 48359655992.93 33619539457.51
Balances with clearing agencies
Placements with banks and other
financial institutions
Financial assets held for trading 1403110810.03 1720764175.32
Derivative financial assets
Notes receivable 349773515.66 261073349.06
Accounts receivable 32561098916.58 23504481889.07
Receivable financing 1106284192.29 587585009.82
Prepayments 389200419.67 486702941.36
Premiums receivable
Amounts receivable under reinsurance
contracts
Reserves for reinsurance contract
receivable
Other receivables 916828350.56 322407052.71
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 31702675549.03 29757930319.35
Incl: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 4199154224.92 1047566017.54
Other current assets 17557463274.05 2920078401.07
Total current assets 138545245245.72 94228128612.81
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7488295934.01 4232941741.05
Investment in other equity instruments 112765072.04 249122251.32
Other non-current financial assets 39311504.56 35700000.00
Investment properties 35664816.93 23353936.24
Fixed assets 48231236929.70 44560506279.62
Construction in progress 5379186127.71 2226217016.31
Bearer biological assets
Oil and gas assets
Right-of-use assets 858486974.92 648963968.09
Intangible assets 2791469756.34 2663069103.86
Incl: Data resources
Development expenditure
Incl: Data resources
164Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Goodwill 1885826820.02 1729242734.88
Long-term deferred expenses 770001330.59 590266003.15
Deferred tax assets 817693476.29 872943835.40
Other non-current assets 16872400444.43 9931644112.92
Total non-current assets 85282339187.54 67763970982.84
Total assets 223827584433.26 161992099595.65
Current liabilities:
Short-term borrowings 35313128924.26 20514182240.47
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities 155278918.84 117942421.18
Derivative financial liabilities
Notes payable 878335711.94 492585900.03
Accounts payable 65087993138.64 45908515295.43
Receipts in advance
Contract liabilities 262507706.68 243566923.42
Financial assets sold under repurchase
agreements
Customer deposits and deposits from
banks and other financial institutions
Funds from securities trading agency
Funds from underwriting securities
agency
Employee benefits payable 3011324225.36 2330318991.75
Taxes payable 1238288633.06 1021324275.18
Other payables 502369570.62 406677940.53
Including: Interest payable
Dividends payable 52175292.26 11894022.29
Fees and commissions payable
Amounts payable under reinsurance
contracts
Held-for-sale liabilities
Non-current liabilities due within one
year 2256471507.26 2867295870.89
Other current liabilities 5168824236.48 932701803.30
Total current liabilities 113874522573.14 74835111662.18
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 19619741634.77 12038771289.92
Bonds payable 3305436590.71 2799499850.29
Including: Preferred shares
Perpetual bonds
Lease liabilities 727982667.37 552488888.66
Long-term payables
Long-term employee benefits payable
Provisions 7088481.43 642733.24
Deferred income 649108632.44 595323601.05
165Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Deferred tax liabilities 955820917.13 883924973.73
Other non-current liabilities 756521.26 1471770.36
Total non-current liabilities 25265935445.11 16872123107.25
Total liabilities 139140458018.25 91707234769.43
Owners’ equity:
Share capital 7236462142.00 7148168213.00
Other equity instruments 527271028.72 527289020.28
Including: Preferred shares
Perpetual bonds
Capital reserve 7546227379.20 5011944633.92
Less: Treasury shares
Other comprehensive income -703805634.26 148762176.88
Special reserve 2196525.51 3528369.80
Surplus reserve 1617520044.25 1443520185.47
General risk reserve
Unappropriated profit 53101139440.57 42026971911.25
Total owners’ equity attributable to
equity holders of the parent company 69327010925.99 56310184510.60
Minority interests 15360115489.02 13974680315.62
Total owners’ equity 84687126415.01 70284864826.22
Total liabilities and owners’ equity 223827584433.26 161992099595.65
Legal representative: WANG Laichun Chief financial officer: WU Tiansong Head of accounting department: CHEN Huiyong
2. Balance Sheet of the Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 5038281861.44 5363878981.02
Financial assets held for trading 219657223.74 339580922.63
Derivative financial assets
Notes receivable 100400435.19 18385072.78
Accounts receivable 4166040612.48 5232436622.29
Receivable financing 10672541.60 5119974.62
Prepayments 5617570.43 192114139.17
Other receivables 606750541.46 575065087.05
Including: Interest receivable
Dividends receivable 600000000.00 522000000.00
Inventories 379489201.25 306259656.55
Incl: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 106998410.96
Other current assets 30959564120.80 14458131132.12
Total current assets 41486474108.39 26597969999.19
Non-current assets:
Debt investments
Other debt investments
166Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Long-term receivables
Long-term equity investments 25026704626.12 23601999275.38
Investment in other equity instruments 108337130.41 244726548.92
Other non-current financial assets 570000000.00 570000000.00
Investment properties
Fixed assets 131283968.73 148762324.80
Construction in progress 8785414.12 3826779.93
Bearer biological assets
Oil and gas assets
Right-of-use assets 37622664.83 41694063.64
Intangible assets 318396591.73 307619939.12
Incl: Data resources
Development expenditure
Incl: Data resources
Goodwill 53174339.31 53174339.31
Long-term deferred expenses 5712784.40 7326817.04
Deferred tax assets 10398884.68
Other non-current assets 6334563156.20 899875137.66
Total non-current assets 32604979560.53 25879005225.80
Total assets 74091453668.92 52476975224.99
Current liabilities:
Short-term borrowings 2286859307.53 1981237500.00
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 10175621761.24 3206774263.00
Accounts payable 1610259742.70 2294947814.95
Receipts in advance
Contract liabilities 14095687.49 11589195.43
Employee benefits payable 74830682.22 50854577.38
Taxes payable 60995667.09 42236138.27
Other payables 7920582369.71 6064454178.70
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
year 1363153534.40 1975796524.14
Other current liabilities 5046304840.42 804229371.60
Total current liabilities 28552703592.80 16432119563.47
Non-current liabilities:
Long-term borrowings 17377321891.70 9676736000.00
Bonds payable 2878039451.43 2799499850.29
Including: Preferred shares
Perpetual bonds
Lease liabilities 19970300.26 27210286.03
Long-term payables
Long-term employee benefits payable
Provisions
167Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Deferred income 2026179.60 3619077.63
Deferred tax liabilities 19506623.16
Other non-current liabilities
Total non-current liabilities 20277357822.99 12526571837.11
Total liabilities 48830061415.79 28958691400.58
Owners’ equity:
Share capital 7236462142.00 7148168213.00
Other equity instruments 527271028.72 527289020.28
Including: Preferred shares
Perpetual bonds
Capital reserve 7445999659.85 5304433127.03
Less: Treasury shares
Other comprehensive income 4346079.89 113696524.40
Special reserve
Surplus reserve 1617520044.25 1443520185.47
Unappropriated profit 8429793298.42 8981176754.23
Total owners’ equity 25261392253.13 23518283824.41
Total liabilities and owners’ equity 74091453668.92 52476975224.99
3. Consolidated Income Statement
In RMB
Item 2024 2023
I. Total operating income 268794737612.58 231905459829.83
Including: Operating income 268794737612.58 231905459829.83
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 256910909368.85 220679633964.41
Including: Operating costs 240809417980.59 205041300458.59
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder
benefits (net of mounts recoverable from
reinsurers)
Changes in insurance contract
reserves (net of reinsurers’ share)
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and levies 636749261.74 534815230.06
Sales expenses 1059676776.41 889024421.63
Administrative expenses 6352284566.88 5542856994.26
R&D expenses 8555957431.46 8188767532.85
Financial expenses -503176648.23 482869327.02
Including: Interest expenses 1462653485.39 1376870146.38
Interest income 968280395.31 1005580557.62
Add: Other income 993203577.89 825189115.07
168Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Investment income (Loss is
indicated by “-”) 4546940655.44 1771282791.44
Including: Income from
investments in associates and joint 3318152092.00 2044361609.89
ventures
Income from
derecognition of financial assets -795197080.77 -741342548.75
measured at amortized cost
Foreign exchange gains (Loss is
indicated by “-”)
Net exposure hedging income
(Loss is indicated by “-”)
Income from changes in fair
value (Loss is indicated by “-”) -63167333.15 210346832.18
Impairment losses of credit (Loss
is indicated by “-”) -10087989.60 23273879.47
Impairment losses of assets (Loss
is indicated by “-”) -1245468307.53 -1318867316.40
Income from disposal of assets
(Loss is indicated by “-”) 36626066.06 122867177.52
III. Operating profit (Loss is indicated by
“-”)16141874912.8412859918344.70
Add: Non-operating income 53603053.92 93459027.40
Less: Non-operating expenses 86739225.98 68334885.79
IV. Total profit (Total losses are indicated
by “-”) 16108738740.78 12885042486.31
Less: Income tax expenses 1529694922.93 641829343.18V. Net profit (Net loss is indicated by “-”)14579043817.8512243213143.13
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing
operations (Net loss is indicated by “-”) 14579043817.85 12243213143.13
2. Net profit from discontinued
operations (Net loss is indicated by “-”)
(II) Categorized by ownership
1. Net profit attributable to
shareholders of the parent company 13365651026.16 10952656702.16
2. Minority interest income 1213392791.69 1290556440.97
VI. Other comprehensive income net of
tax -756889357.91 -491540544.45
Other comprehensive income
attributable to owners of the parent -814249035.79 -464912752.55
company net of tax
(I) Other comprehensive income
that cannot be subsequently reclassified -71080798.95 -142656996.94
to profit or loss
1. Changes from re-measurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of other
investments in equity instruments -71080798.95 -142656996.94
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss -743168236.84 -322255755.61
169Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
1. Other comprehensive income
that will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in -743168236.84 -322255755.61
foreign currencies
7. Others
Other comprehensive income
attributable to minority interests net of 57359677.88 -26627791.90
tax
VII. Total comprehensive income 13822154459.94 11751672598.68
Total comprehensive income
attributable to owners of the parent 12551401990.37 10487743949.61
company
Total comprehensive income
attributable to minority interests 1270752469.57 1263928649.07
VIII. Earnings per share:
(I) Basic earnings per share 1.86 1.54
(II) Diluted earnings per share 1.85 1.53
For any business combination involving enterprises under common control for the reporting period the net profits of the absorbed
party prior to the combination are RMB0.00 in the reporting period and were RMB0.00 in the prior period.Legal representative: WANG Laichun Chief financial officer: WU Tiansong Head of accounting department: CHEN Huiyong
4. Income Statement of the Parent Company
In RMB
Item 2024 2023
I. Total operating income 11613850254.44 10777958983.45
Less: Operating costs 10915461165.83 10090180041.66
Taxes and levies 16696075.89 11450527.78
Sales expenses 33619946.84 47016319.95
Administrative expenses 111697367.81 195484624.80
R&D expenses 394442224.92 359110228.82
Financial expenses 452015977.55 374684104.32
Including: Interest expenses 720713168.37 541490816.64
Interest income 261960850.84 209233345.56
Add: Other income 45515232.64 56987568.94
Investment income (Loss is
indicated by “-”) 2074033389.55 3417911679.37
Including: Income from
investments in associates and joint -10214447.00 -24693501.41
ventures
Income from
derecognition of financial assets
measured at amortized cost (Loss is -32618718.19 -39618411.95
indicated by “-”)
Net exposure hedging income
170Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(Loss is indicated by “-”)
Income from changes in fair
value (Loss is indicated by “-”) -64759504.50 46992155.68
Impairment losses of credit (Loss
is indicated by “-”) -1086680.04 11896794.95
Impairment losses of assets (Loss
is indicated by “-”) -7795032.20 -15796979.97
Income from disposal of assets
(Loss is indicated by “-”) 29642.37 54423.89
II. Operating profit (Loss is indicated by
“-”)1735854543.423218078778.98
Add: Non-operating income 922466.47 10152797.38
Less: Non-operating expenses 5861240.70 6700314.33
III. Total profit (Total losses are indicated
by “-”) 1730915769.19 3221531262.03
Less: Income tax expenses -9082818.62 -2943604.35IV. Net profit (Net loss is indicated by “-”)1739998587.813224474866.38
(I) Net profit from continuing
operations (Net loss is indicated by “-”) 1739998587.81 3224474866.38
(II) Net profit from discontinued
operations (Net loss is indicated by “-”)
V. Other comprehensive income net of
tax -71031669.16 -143511980.28
(I) Other comprehensive income
that cannot be subsequently reclassified -71031669.16 -143511980.28
to profit or loss
1. Changes from re-measurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of other
investments in equity instruments -71031669.16 -143511980.28
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss
1. Other comprehensive income
that will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in
foreign currencies
7. Others
VI. Total comprehensive income 1668966918.65 3080962886.10
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
171Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
5. Consolidated Statement of Cash Flows
In RMB
Item 2024 2023
I. Cash flows from operating activities:
Cash receipts from the sales of goods
and the rendering of services 260945840146.58 233972359867.88
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from the central
bank
Net increase in taking from other
financial institutions
Cash payments for claims and
policyholders’ benefits under direct
insurance contracts
Net cash receipts from reinsurance
business
Net cash receipts from policyholders’
deposits and investment contract
liabilities
Cash receipts from interest fees and
commissions
Net increase in taking from banks and
other financial institutions
Net increase in financial assets sold
under repurchase arrangements
Net cash received from securities
trading agency
Receipts of tax refunds 7372655841.77 7825905318.68
Other cash receipts relating to
operating activities 5689425932.94 4251043986.66
Sub-total of cash inflows from operating
activities 274007921921.29 246049309173.22
Cash payments for goods purchased
and services received 215915880651.43 190579479133.20
Net increase in loans and advances to
customers
Net increase in balance with the
central bank and due from banks and
other financial institutions
Cash payments for claims and
policyholders’ benefits under direct
insurance contracts
Net increase in placements with banks
and other financial institutions
Cash payments for interest fees and
commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on behalf of
employees 23188596123.73 19100916568.64
Payments of various types of taxes 2679443357.07 2107851414.79
Other cash payments relating to
operating activities 5107093580.53 6656001645.43
Sub-total of cash outflows from
operating activities 246891013712.76 218444248762.06
172Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Net cash flow from operating activities 27116908208.53 27605060411.16
II. Cash flows from investing activities:
Cash receipts from disposals and
recovery of investments 59421492564.65 16307306597.29
Cash receipts from investment income 1560585128.71 640454107.13
Net cash receipts from disposals of
fixed assets intangible assets and other 259098302.75 498863695.83
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to
investing activities 15981629.58 427650270.00
Sub-total of cash inflows from investing
activities 61257157625.69 17874274670.25
Cash payments to acquire or construct
fixed assets intangible assets and other 12110699704.87 11387449010.98
long-term assets
Cash payments to acquire investments 82979924160.82 25906263865.11
Net increase in pledged loans
receivables
Net cash payments for acquisitions of
subsidiaries and other business entities 1729156509.11
Other cash payments relating to
investing activities 93449200.00 140474000.00
Sub-total of cash outflows from investing
activities 96913229574.80 37434186876.09
Net cash flows from investing activities -35656071949.11 -19559912205.84
III. Cash flows from financing activities:
Cash receipts from capital
contributions 2406563693.54 546698698.52
Including: Cash receipts from capital
contributions from minority owners of 599177529.88
subsidiaries
Cash receipts from borrowings 91708915330.66 89681515957.31
Other cash receipts relating to
financing activities 6758358667.41 3531424971.41
Sub-total of cash inflows from financing
activities 100873837691.61 93759639627.24
Cash repayments of borrowings 68783902600.75 81148610559.40
Cash payments for distribution of
dividends or profits or settlement of 3717457760.53 2530927017.73
interest expenses
Including: Payments for distribution of
dividends or profits to minority owners 49589480.71 89877050.50
of subsidiaries
Other cash payments relating to
financing activities 2482035263.87 6009836397.50
Sub-total of cash outflows from
financing activities 74983395625.15 89689373974.63
Net cash flows from financing activities 25890442066.46 4070265652.61
IV. Effect of foreign exchange rate
changes on cash and cash equivalents 231672359.85 256320033.21
V. Net increase in cash and cash
equivalents 17582950685.73 12371733891.14
Add: Opening balance of cash and
cash equivalents 29684152320.65 17312418429.51
VI. Closing balance of cash and cash
equivalents 47267103006.38 29684152320.65
173Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
6. Statement of Cash Flows of the Parent Company
In RMB
Item 2024 2023
I. Cash flows from operating activities:
Cash receipts from the sales of goods
and the rendering of services 13960787538.02 13856860176.69
Receipts of tax refunds 105618571.66 131023274.74
Other cash receipts relating to
operating activities 100274296230.66 26805451217.01
Sub-total of cash inflows from operating
activities 114340702340.34 40793334668.44
Cash payments for goods purchased
and services received 14739237402.97 18017487335.51
Cash payments to and on behalf of
employees 380793920.10 321167044.00
Payments of various types of taxes 27465227.26 7503228.53
Other cash payments relating to
operating activities 90765070519.94 22673942894.86
Sub-total of cash outflows from
operating activities 105912567070.27 41020100502.90
Net cash flow from operating activities 8428135270.07 -226765834.46
II. Cash flows from investing activities:
Cash receipts from disposals and
recovery of investments 1029020423.92 6536880258.56
Cash receipts from investment income 2141663919.77 3348825836.10
Net cash receipts from disposals of
fixed assets intangible assets and other 446206.75 315031.34
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities 3319956.47
Other cash receipts relating to
investing activities 24529145489.00
Sub-total of cash inflows from investing
activities 27700276039.44 9889341082.47
Cash payments to acquire or construct
fixed assets intangible assets and other 243888929.06 76811665.74
long-term assets
Cash payments to acquire investments 9731679200.44 10673528047.25
Net cash payments for acquisitions of
subsidiaries and other business entities
Other cash payments relating to
investing activities 37663015910.00
Sub-total of cash outflows from investing
activities 47638584039.50 10750339712.99
Net cash flows from investing activities -19938308000.06 -860998630.52
III. Cash flows from financing activities:
Cash receipts from capital
contributions 1807386163.66 546698698.52
Cash receipts from borrowings 14059049529.26 12787980000.00
Other cash receipts relating to
financing activities 14484816421.49 3089161930.69
Sub-total of cash inflows from financing
activities 30351252114.41 16423840629.21
Cash repayments of borrowings 6685639601.04 6182849970.00
Cash payments for distribution of
dividends or profits or settlement of 2781084626.44 1470835061.65
interest expenses
Other cash payments relating to
financing activities 8493152733.44 5986958422.03
174Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Sub-total of cash outflows from
financing activities 17959876960.92 13640643453.68
Net cash flows from financing activities 12391375153.49 2783197175.53
IV. Effect of foreign exchange rate
changes on cash and cash equivalents -6299268.96 6410280.81
V. Net increase in cash and cash
equivalents 874903154.54 1701842991.36
Add: Opening balance of cash and
cash equivalents 4163378706.90 2461535715.54
VI. Closing balance of cash and cash
equivalents 5038281861.44 4163378706.90
175Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
7. Consolidated Statement of Changes in Owners’ Equity
Current period
In RMB
2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Minority interests Total owners’
Share capital Special Unappropriated equityPreferred Perpetual Capital reserve Treasury comprehensive Surplus reserve risk Other Subtotal
shares bonds Other shares income
reserve reserve profit
I. Closing
balance of the 7148168213.00 527289020.28 5011944633.92 148762176.88 3528369.80 1443520185.47 42026971911.25 56310184510.60 13974680315.62 70284864826.22
preceding year
Add: Changes
in accounting
policies
Corrections of
prior period
errors
Other
II. Opening
balance of the 7148168213.00 527289020.28 5011944633.92 148762176.88 3528369.80 1443520185.47 42026971911.25 56310184510.60 13974680315.62 70284864826.22
current year
III. Changes
for the year
(Decrease is 88293929.00 -17991.56 2534282745.28 -852567811.14 -1331844.29 173999858.78 11074167529.32 13016826415.39 1385435173.40 14402261588.79indicated by “-”)
(I) Total
comprehensive -814249035.79 13365651026.16 12551401990.37 1270752469.57 13822154459.94income
(II) Owners’
contributions
and reduction 88293929.00 -17991.56 2534282745.28 2622558682.72 163291707.51 2785850390.23
in capital
1． Ordinary
shares 88292139.00 1719094024.66 1807386163.66 599177529.88 2406563693.54
contributed by
owners
2． Capital
contribution
from holders 1790.00 -17991.56 99989.57 83788.01 20119604.87 20203392.88
of other equity
instruments
3． Share-
based payment 391351564.85 391351564.85 31020953.74 422372518.59
recognized in
176Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
owners’ equity
4． Other 423737166.20 423737166.20 -487026380.98 -63289214.78
(III) Profit
distribution 173999858.78 -2329802272.19 -2155802413.41 -49589480.71 -2205391894.12
1． Transfer
to surplus 173999858.78 -173999858.78
reserve
2． Transfer
to general risk
reserve
3． Distributi
ons to owners -2153401833.67 -2153401833.67 -49589480.71 -2202991314.38
(or
shareholders)
4． Other -2400579.74 -2400579.74 -2400579.74
(IV) Transfers
within owners’ -38318775.35 38318775.35
equity
1． Capitaliza
tion of capital
reserve (or
share capital)
2． Capitaliza
tion of surplus
reserve (or
share capital)
3． Loss
offset by
surplus reserve
4． Retained
earnings
carried
forward from
changes in
defined benefit
plans
5． Retained
earnings
carried
forward from
other
comprehensive
income
6． Other -38318775.35 38318775.35
(V) Special
reserve -1331844.29 -1331844.29 980477.03 -351367.26
1． Transfer
to special 38821819.05 38821819.05 38487100.05 77308919.10
reserve in the
current period
177Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2．Amount
utilized in the 40153663.34 40153663.34 37506623.02 77660286.36
current period
(VI) Others
IV. Closing
balance of the 7236462142.00 527271028.72 7546227379.20 -703805634.26 2196525.51 1617520044.25 53101139440.57 69327010925.99 15360115489.02 84687126415.01current period
Prior period
In RMB
2023
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Total owners’
Share capital Capital reserve Treasury comprehensive Special Surplus reserve risk Unappropriated
Minority interests equity
Preferred Perpetual Other shares income reserve reserve profit
Other Subtotal
shares bonds
I. Closing
balance of the 7099908647.00 527319637.88 3652626861.74 651458316.25 2094879.61 1121072698.83 32288416277.22 45342897318.53 13440972378.66 58783869697.19
preceding year
Add: Changes
in accounting
policies
Corrections of
prior period
errors
Other
II. Opening
balance of the 7099908647.00 527319637.88 3652626861.74 651458316.25 2094879.61 1121072698.83 32288416277.22 45342897318.53 13440972378.66 58783869697.19
current year
III. Changes
for the year
(Decrease is 48259566.00 -30617.60 1359317772.18 -502696139.37 1433490.19 322447486.64 9738555634.03 10967287192.07 533707936.96 11500995129.03indicated by “-”)
(I) Total
comprehensive -464912752.55 10952656702.16 10487743949.61 1263928649.07 11751672598.68income
(II) Owners’
contributions
and reduction 48259566.00 -30617.60 1359317772.18 1407546720.58 -640863408.11 766683312.47
in capital
1． Ordinary
shares 48256556.00 498442142.52 546698698.52 546698698.52
contributed by
owners
178Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2． Capital
contribution
from holders 3010.00 -30617.60 170204.36 142596.76 142596.76
of other equity
instruments
3． Share-
based payment 731177177.72 731177177.72 49487751.93 780664929.65
recognized in
owners’ equity
4． Other 129528247.58 129528247.58 -690351160.04 -560822912.46
(III) Profit
distribution 322447486.64 -1251884454.95 -929436968.31 -89877050.50 -1019314018.81
1． Transfer
to surplus 322447486.64 -322447486.64
reserve
2． Transfer
to general risk
reserve
3． Distributi
ons to owners -926948678.85 -926948678.85 -89877050.50 -1016825729.35
(or
shareholders)
4． Other -2488289.46 -2488289.46 -2488289.46
(IV) Transfers
within owners’ -37783386.82 37783386.82
equity
1． Capitaliza
tion of capital
reserve (or
share capital)
2． Capitaliza
tion of surplus
reserve (or
share capital)
3． Loss
offset by
surplus reserve
4． Retained
earnings
carried
forward from
changes in
defined benefit
plans
5． Retained
earnings
carried
forward from
other
comprehensive
income
179Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
6． Other -37783386.82 37783386.82
(V) Special
reserve 1433490.19 1433490.19 519746.50 1953236.69
1． Transfer
to special 32093607.36 32093607.36 30153711.05 62247318.41
reserve in the
current period
2．Amount
utilized in the 30660117.17 30660117.17 29633964.55 60294081.72
current period
(VI) Others
IV. Closing
balance of the 7148168213.00 527289020.28 5011944633.92 148762176.88 3528369.80 1443520185.47 42026971911.25 56310184510.60 13974680315.62 70284864826.22
current period
8. Statement of Changes in Owners’ Equity of the Parent Company
Current period
In RMB
2024
Item Other equity instruments Other
Share capital Capital reserve Less: Treasuryshares comprehensive Special reserve Surplus reserve
Unappropriated Other Total owners’
Preferred shares Perpetual bonds Other income profit equity
I. Closing balance
of the preceding 7148168213.00 527289020.28 5304433127.03 113696524.40 1443520185.47 8981176754.23 23518283824.41
year
Add: Changes in
accounting
policies
Corrections of
prior period errors
Other
II. Opening
balance of the 7148168213.00 527289020.28 5304433127.03 113696524.40 1443520185.47 8981176754.23 23518283824.41
current year
III. Changes for
the year
(Decrease is 88293929.00 -17991.56 2141566532.82 -109350444.51 173999858.78 -551383455.81 1743108428.72
indicated by “-”)
(I) Total
comprehensive -71031669.16 1739998587.81 1668966918.65
income
180Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(II) Owners’
contributions and
reduction in 88293929.00 -17991.56 2141566532.82 2229842470.26
capital
1． Ordinary
shares contributed 88292139.00 1719094024.66 1807386163.66
by owners
2． Capital
contribution from 1790.00 -17991.56 99989.57 83788.01
holders of other
equity instruments
3． Share-based
payment 422372518.59 422372518.59
recognized in
owners’ equity
4． Other
(III) Profit
distribution 173999858.78 -2329700818.97 -2155700960.19
1． Transfer to 173999858.78 -173999858.78
surplus reserve
2． Distributions
to owners (or -2153401833.67 -2153401833.67
shareholders)
3． Other -2299126.52 -2299126.52
(IV) Transfers
within owners’ -38318775.35 38318775.35
equity
1． Capitalization
of capital reserve
(or share capital)
2． Capitalization
of surplus reserve
(or share capital)
3． Loss offset by
surplus reserve
4． Retained
earnings carried
forward from
changes in
defined benefit
plans
5． Retained
earnings carried
forward from
other
comprehensive
income
6． Other -38318775.35 38318775.35
(V) Special
181Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
reserve
1． Transfer to
special reserve in
the current period
2．Amount
utilized in the
current period
(VI) Others
IV. Closing
balance of the 7236462142.00 527271028.72 7445999659.85 4346079.89 1617520044.25 8429793298.42 25261392253.13
current period
182Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Prior period
In RMB
2023
Item Other equity instruments Other
Share capital Capital reserve Less: Treasuryshares comprehensive Special reserve Surplus reserve
Unappropriated Other Total owners’
Preferred shares Perpetual bonds Other income profit equity
I. Closing balance
of the preceding 7099908647.00 527319637.88 4069645567.93 294991891.50 1121072698.83 6970581669.73 20083520112.87
year
Add: Changes in
accounting
policies
Corrections of
prior period errors
Other
II. Opening
balance of the 7099908647.00 527319637.88 4069645567.93 294991891.50 1121072698.83 6970581669.73 20083520112.87
current year
III. Changes for
the year
(Decrease is 48259566.00 -30617.60 1234787559.10 -181295367.10 322447486.64 2010595084.50 3434763711.54
indicated by “-”)
(I) Total
comprehensive -143511980.28 3224474866.38 3080962886.10
income
(II) Owners’
contributions and
reduction in 48259566.00 -30617.60 1234787559.10 1283016507.50
capital
1． Ordinary
shares contributed 48256556.00 498442142.52 546698698.52
by owners
2． Capital
contribution from 3010.00 -30617.60 170204.36 142596.76
holders of other
equity instruments
3． Share-based
payment 780664929.65 780664929.65
recognized in
owners’ equity
4． Other -44489717.43 -44489717.43
(III) Profit
distribution 322447486.64 -1251663168.70 -929215682.06
1． Transfer to 322447486.64 -322447486.64
surplus reserve
2． Distributions
to owners (or -926948678.85 -926948678.85
shareholders)
3． Other -2267003.21 -2267003.21
(IV) Transfers
within owners’ -37783386.82 37783386.82
equity
183Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
1． Capitalization
of capital reserve
(or share capital)
2． Capitalization
of surplus reserve
(or share capital)
3． Loss offset by
surplus reserve
4． Retained
earnings carried
forward from
changes in
defined benefit
plans
5． Retained
earnings carried
forward from
other
comprehensive
income
6． Other -37783386.82 37783386.82
(V) Special
reserve
1． Transfer to
special reserve in
the current period
2．Amount
utilized in the
current period
(VI) Others
IV. Closing
balance of the 7148168213.00 527289020.28 5304433127.03 113696524.40 1443520185.47 8981176754.23 23518283824.41
current period
184Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
III. Basic Information
Luxshare Precision Industry Co. Ltd. (“Company” or “the Company”) is a company limited by shares established by
Shenzhen Zixin Investment Co. Ltd. (“Zixin Investment”) and Luxshare Limited as founders after being approved by Shenzhen
People’s Government and Shenzhen Bureau of Trade and Industry in February 2009. Company’s Uniform Social Credit Code:
91440300760482233Q. The Company was listed on Shenzhen Stock Exchange in September 2010. The Company pertains to the
computer communication and other electronic equipment manufacturing industry.As of December 31 2024 the Company issued 7236462142.00 shares in total with its registered capital amounting to
RMB7236462142.00. The Company’s registered office is located at 2/F Block A Sanyo New Industrial Zone West Haoyi
Community Shajing Street Bao’an District Shenzhen China while its place of business is located at No. 313 North Ring Road
Qingxi Town Dongguan City Guangdong China. The main business activities of the Company include production and operation
of connecting wires connectors computer peripherals and plastic hardware products. The Company’s parent company is
Luxshare Limited and its actual controllers are WANG Laichun and WANG Laisheng.The financial statements were approved by the Company’s board of directors on April 25 2025 for issuance.IV. Basis of Preparation of Financial Statements
1. Basis of Preparation
The Company has prepared its financial statements in accordance with the requirements of the Accounting Standards for
Business Enterprises - Basic Standard promulgated by the Ministry of Finance of the PRC specific accounting standards
guidelines for application of accounting standards for enterprises interpretation of accounting standards for enterprises and other
relevant regulations successively promulgated (collectively “Accounting Standards for Business Enterprises”) and the Preparation
Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports
issued by China Securities Regulatory Commission.
2. Going Concern
The Company prepares its financial statements on a going concern basis. The Company has the ability to continue as a going
concern within 12 months from the end of the reporting period and detected no major events that may affect such ability.V. Significant Accounting Policies and Accounting Estimates
Reminders on specific accounting policies and accounting estimates:
The disclosed content already includes the specific accounting policies and accounting estimates formulated by the Company
based on its actual production and operation characteristics. Please refer to Note V (11) Financial Instruments Note V (17)
Inventories Note V (21) Property Plant and Equipment Note V (24) Intangible Assets Note V (31) Revenue etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
185Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The financial statements prepared by the Company conform to the requirements of the Accounting Standards for Business
Enterprises issued by the Ministry of Finance and truly and completely reflect the consolidated and parent company’s financial
positions as of December 31 2024 and the consolidated and parent company’s operating results and cash flows for the year then
ended.
2. Accounting Period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating Cycle
The Company’s operating cycle is 12 months.
4. Functional Currency
The Company adopts the Chinese Renminbi (RMB) as the functional currency for accounting purposes. The subsidiary companies
under our company determine their functional currencies based on the primary economic environment in which they operate. For
subsidiary companies located within mainland China the functional currency is the Chinese Renminbi. For subsidiary companies
located outside mainland China they independently decide their functional currencies based on their primary economic
environment which mainly include the US Dollar New Taiwan Dollar Hong Kong Dollar Vietnamese Dong etc. The financial
statements are presented in Chinese Renminbi.
5. Method for Determining Importance Criteria and Selection Basis
□Applicable □N/A
Item Significant Criteria
Significant individual provision for doubtful accounts Individual provision amount accounts for over 10% of the total
receivable provision for bad debts of various receivables and exceedsRMB 500 million
Individual contract liabilities with an aging of over 1 year
Significant contract liabilities with an aging of over one year account for over 10% of the total contract liabilities and exceed
RMB 500 million
Individual accounts payable/other payables with an aging of
Significant accounts payable and other payables over 1 year account for over 10% of the total accounts
payable/other payables and exceed RMB 1 billion
Significant construction in progress Individual project budget exceeds RMB 500 million
Significant goodwill Individual amount accounts for over 10% of the total goodwilland exceeds RMB 200 million
One of the total assets operating income or total profit (or
Significant non-wholly-owned subsidiaries absolute value of loss) individually or simultaneously accountsfor over 10% of the corresponding item in the consolidated
financial statements
The carrying amount of long-term equity investments in a
single investee entity accounts for over 5% of the group's net
Significant joint ventures or associates assets and exceeds RMB 1 billion or the investment profit or
loss under the equity method for long-term equity investments
accounts for over 10% of the group's consolidated net profit
186Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
6. Accounting Treatment of Business Combinations Involving Enterprises under Common Control and
Business Combinations Not Involving Enterprises under Common Control
Business combination involving enterprises under common control: The assets and liabilities acquired by the absorbing party in a
business combination (including goodwill formed through the acquisition by the ultimate controller of the absorbed party) are
measured according to the carrying amount of the assets and liabilities of the absorbed party in the financial statements of the
ultimate controller on the combination date. The difference between the carrying amount of the net assets obtained in a business
combination and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as
consideration) is adjusted to the equity premium in the capital reserve. If the equity premium in the capital reserve is not sufficient
to absorb the difference any excess shall be adjusted against retained earnings.Business combination not involving enterprises under common control: The cost of combination is the aggregate of the fair values
at the acquisition date of the assets given liabilities incurred or assumed and equity securities issued by the acquirer in exchange
for control of the acquiree. Where the cost of a business combination exceeds the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets the difference is recognized as goodwill; where the cost of a business combination is lower than
the acquirer’s interest in the fair value of the acquiree’s identifiable net assets the difference is recognized in profit or loss for the
current period. The acquiree’s identifiable assets liabilities and contingent liabilities that are acquired in the combination meeting
the recognition criteria are measured at the fair value on the date of acquisition.The costs incurred directly attributable to the business combination are recognized in profit or loss for the current period when
incurred; the transaction costs for issue of equity securities or debt securities are recognized in the amount initially recognized of
equity securities or debt securities.
7. Criterion of Control and the Preparation Method of Consolidated Financial Statements
1. Criterion of Control
The scope of consolidated financial statements is determined on the basis of control and includes those of the Company and all of
its subsidiaries. “Control” means the power of the Company over the investee through which the Company will enjoy variable
returns by participating in the relevant activities and has the ability to use the power over the investee to affect the Company’s
return amount.
2. Consolidation Procedures
The Company regards the entire enterprise group as an accounting entity and prepares the consolidated financial statements
according to the uniformed accounting policies reflecting the overall financial positions operating results and cash flows of this
enterprise group. The effects of other intragroup transactions (between the Company and its subsidiaries or between subsidiaries)
are eliminated. Where the intragroup transactions show that relevant assets have suffered impairment losses those losses are
recognized fully. Where the accounting policies and periods adopted by all subsidiaries are not in line with those of the Company
the necessary adjustments are made to the financial statements of these subsidiaries based on the accounting policies and periods
of the Company when preparing the consolidated financial statements.The portions of owner’s equities net profits or losses and comprehensive income of subsidiaries for the period attributable to
minority interests are separately presented in the consolidated balance sheet below the “owners’ equity” line item and in the
consolidated income statement below the “net profit” and “total comprehensive income” as “minority interests”. When the amount
of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders’ share of
the opening balance of owners’ equity of the subsidiary the excess is allocated against minority interests.
(1) Increase in Subsidiaries or Businesses
Where a subsidiary or business is acquired during the reporting period through a business combination involving enterprises under
common control operating results and cash flows of this subsidiary or business from the beginning of the period in which the
combination takes place to the end of the reporting period are included in the consolidated financial statements. Meanwhile the
187Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
adjustments are made to the opening balances of the consolidated financial statements and the relevant items of the comparative
statement and the combined reporting entity is deemed to have existed since the time when the ultimate controller began to
exercise control.Where the Company becomes capable of exercising control over an investee under the common control due to additional
investments or other reasons for equity investments held before acquiring control of the absorbed party the relevant gains or
losses other comprehensive income and other changes in net assets recognized during the period from the later of the date of
acquisition of original equity or the date when the absorbing party and the absorbed party are under the common control until the
combination date are respectively offset against opening balances of retained earnings during the comparative reporting period or
profit or loss for the current period.Where a subsidiary or business is acquired during the reporting period through a business combination not involving enterprises
under common control it is included in the consolidated financial statements from the date of acquisition based on the fair value of
identifiable assets liabilities and contingent liabilities determined on the date of acquisition.Where the Company becomes capable of exercising control over an investee not under common control due to additional
investments or other reasons for the acquiree’s equity held prior to the date of acquisition the Company remeasures the fair value
of the equity on the date of acquisition and the difference between the fair value of the equity and its carrying amount is
recognized in profit or loss for the current period. Where the acquiree’s equity held prior to the date of acquisition involves other
comprehensive income that can be reclassified to profit or loss and changes in other owners’ equity under equity method such
other comprehensive income and changes are transferred to the income of the period in which the date of acquisition falls.
(2) Disposal of Subsidiaries
* General Disposal
When the Company loses control over the investee due to disposal of partial equity investments or other reasons for the remaining
equity investments after disposal the Company remeasures the remaining equity investments after disposal at the fair value on the
date when the Company loses its control. The difference between the sum of the consideration from disposal of equity and the fair
value of remaining equity less the sum of the original subsidiary’s share of net assets and goodwill continuously calculated from
the date of acquisition or combination according to original shareholding ratio is recognized as the investment return for the period
in which the control is lost. Other comprehensive income relating to the original subsidiary’s equity investments that will be
reclassified to profit or loss and changes in other owners’ equity under the equity method is transferred into the investment income
for the period when the control is lost.* Disposal of Subsidiaries by Steps
Where the subsidiary’s equity investments are disposed by steps through multiple transactions until the control is lost and the
terms and conditions of all transactions on disposal of the subsidiary’s equity investments and the economic impact thereof fall
within one or more of the following circumstances it usually indicates that multiple transaction events belong to a single package:
ⅰ． These transactions are concluded simultaneously or after the influence on each other is considered;
ⅱ． These transactions as a whole can achieve a complete commercial result;
ⅲ． The occurrence of one transaction depends on that of at least one other transaction; and/or
ⅳ． A transaction is not economical alone but economical when considered together with other transactions.Where all transactions belong to a single package the Company accounts for such transactions as one transaction to dispose of and
lose its control over the subsidiary; however the difference between the proceeds from each disposal before loss of control and the
share owned by the Company in the net assets of the subsidiary in relation to the investment disposed of is recognized in other
comprehensive income in the consolidated financial statements which is wholly transferred to the profit or loss in the period in
which the control is lost.Where all transactions do not belong to a single package prior to the loss of control the Company accounts for such transactions
as partial disposal of a subsidiary’s equity investments in the event that the control is not lost; and when the control is lost the
Company accounts for such transactions in accordance with the general methods of disposal of subsidiaries.
188Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Acquisition of a Subsidiary’s Minority Equity
The difference between the long-term equity investments newly obtained by the Company due to acquisition of minority equity
and its share of the subsidiary’s net assets continuously calculated from the date of acquisition or combination according to the
new shareholding ratio is adjusted against the equity premium in the capital reserve in the consolidated balance sheet. If the equity
premium in the capital reserve is not sufficient to absorb the difference any excess shall be adjusted against retained earnings.
(4) Partial disposal of the subsidiary’s equity investments in the event that the control is not lost
The difference between the proceeds from disposal and the share owned by the Company in the net assets of the subsidiary in
relation to the long-term equity investment disposed of that is calculated continuously from the date of acquisition or combination
is adjusted against the equity premium in the capital reserve in the consolidated balance sheet. In case the equity premium in the
capital reserve is not sufficient to absorb the difference the remaining balance is adjusted against the retained earnings.
8. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
Joint arrangements are classified into joint operations and joint ventures.Where a party to a joint arrangement enjoys relevant assets and assumes relevant liabilities of such an arrangement this case
belongs to a joint operation.The Company recognizes the following items relating to its interest in the joint operation:
(1) the assets held individually by the Company and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company and the Company’s share of the liabilities incurred jointly;
(3) the Company’s revenue from the sales of its share of output of the joint operation;
(4) the Company’s share of revenue from the sales of assets by the joint operation; and
(5) the expenses incurred individually by the Company and the Company’s share of the expenses incurred jointly by the joint
operation.The Company accounts for investments in joint ventures using the equity method and the details are seen in Note “V. (19) Long-term equity investments”.
9. Recognition of Cash and Cash Equivalents
Cash comprises cash on hand and deposits of the Company that can be readily withdrawn on demand. Cash equivalents comprise
short-term highly liquid investments held by the Company that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value.
10. Foreign Currency Transactions and Translation of Foreign Currency Financial Statements
1. Foreign Currency Transactions
The foreign currency transactions are recorded by translating the amount of a foreign currency into RMB at the spot exchange rate
prevailing on the 1st of each month.The balances of foreign currency monetary items are translated using the spot exchange rate at the balance sheet date. Exchange
differences arising therefrom are recognized in profit or loss for the current period except for exchange differences generated by
specific-purpose borrowings in a foreign currency related to acquisition of qualifying assets which should be accounted for
according to the capitalization principles of borrowing costs.
2. Translation of Financial Statements Denominated in Foreign Currencies
The asset and liability items in the balance sheet are translated at the spot exchange rates at the balance sheet date. Items of owners’
equity except for “unappropriated profit” are translated at the spot exchange rates at the dates on which such items arose. Income
189Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
and expenses in the income statement are translated at the exchange rates similar to the spot exchange rates at the dates of the
transactions.When the Company disposes of a foreign operation it transfers the translation differences relating to translation of the financial
statements of that foreign operation from the owners’ equity to profit or loss for the current period.
11. Financial Instruments
When the Company becomes a party to a financial instrument contract a financial asset liability or equity instrument is
recognized.
1. Classification of Financial Instruments
Based on the Company’s business model for managing financial assets and the cash flow characteristics of financial assets the
financial assets are classified on initial recognition into financial assets measured at their amortized cost financial assets at fair
value through other comprehensive income and financial assets at fair value through profit or loss.The Company classifies financial assets that meet the following criteria at the same time and are not designated as at fair value
through profit or loss as the financial assets measured at amortized cost:
- the business model aims to collect contractual cash flows; and
- the contractual cash flows are generated only from payment of principal and interest on the outstanding principal.The Company classifies financial assets that meet the following criteria at the same time and are not designated as at fair value
through profit or loss as the financial assets (debt instruments) at fair value through other comprehensive income:
- the business model aims to collect contractual cash flows and sell such financial assets; and
- the contractual cash flows are generated only from payment of principal and interest on the outstanding principal.The Company irrevocably designates the non-trading equity instruments as financial assets (equity instruments) at fair value
through other comprehensive income on initial recognition. Such designation is made on the basis of a single investment and the
relevant investments meet the definition of an equity instrument from the issuer’s perspective.Except for the financial assets measured at amortized cost and the financial assets at fair value through other comprehensive
income the Company classifies all of the other remaining financial assets as financial assets at fair value through profit or loss. If
the accounting mismatch can be eliminated or significantly reduced on initial recognition the Company may irrevocably designate
the financial assets that should have been classified as those measured at amortized cost or those at fair value through other
comprehensive income as the financial assets at fair value through profit or loss.On initial recognition financial liabilities are classified into the following two categories: financial liabilities at fair value through
profit or loss and financial liabilities measured at amortized cost.A financial liability may be designated as at fair value through profit or loss on initial measurement if one of the following
conditions is met:
1) the designation eliminates or significantly reduces accounting mismatch;
2) a group of financial liabilities or a group of financial assets and financial liabilities is managed and its performance is evaluated
on a fair value basis and information about the group is reported on that basis to the enterprise’s key management personnel
according to such risk management or investment strategy set out in official written documents; or
3) this financial liability contains embedded derivatives that need to be split separately.
2. Recognition and Measurement of Financial Instruments
(1) Financial Assets Measured at Amortized Cost
The financial assets measured at amortized cost including notes receivable accounts receivable other receivables long-term
receivables and debt investments are initially measured at fair value and the relevant transaction costs are charged to the initially
recognized amount; the accounts receivable that do not contain any significant financing component and are recognized by the
190Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Company without taking into consideration the significant financing components under the contracts with a term of less than one
year are initially measured at the contractual trading price.The interest calculated using the effective interest method during the holding period is recognized in the profit or loss for the
current period.On recovery or disposal of a financial asset the difference between the proceeds and the carrying amount of the financial asset is
recognized in profit or loss for the current period.
(2) Financial Assets (Debt Instruments) at Fair Value through Other Comprehensive Income
Financial assets (debt instruments) at fair value through other comprehensive income including receivable financing and other
debt investments are initially measured at fair value and the relevant transaction costs are recognized in the initially recognized
amount. These financial assets are subsequently measured at fair value and changes in fair value other than the interest calculated
using the effective interest method impairment loss or gain and profit or loss on exchange are recognized in other comprehensive
income.On derecognition the cumulative gain or loss previously included in other comprehensive income is removed from other
comprehensive income and recognized in profit or loss for the current period.
(3) Financial Assets (Equity Instruments) at Fair Value through Other Comprehensive Income
Financial assets (equity instruments) at fair value through other comprehensive income including other equity investments are
initially measured at fair value and the relevant transaction costs are recognized in the initially recognized amount. These financial
assets are subsequently measured at fair value and changes in fair value are recognized in other comprehensive income. The
dividends received are recognized in profit or loss for the current period.On derecognition the cumulative gain or loss previously included in other comprehensive income is removed from other
comprehensive income and included in retained earnings.
(4) Financial Assets at Fair Value through Profit or Loss
Financial assets at fair value through profit or loss including held-for-trading financial assets derivative financial assets and other
non-current financial assets are initially measured at fair value and the relevant transaction costs are included in profit or loss for
the current period. These financial assets are subsequently measured at fair value and changes in fair value are included in profit
or loss for the current period.
(5) Financial Liabilities at Fair Value through Profit or Loss
Financial liabilities at fair value through profit or loss including held-for-trading financial liabilities and derivative financial
liabilities are initially measured at fair value and the relevant transaction costs are recognized in profit or loss for the current
period. These financial liabilities are subsequently measured at fair value and changes in fair value are recognized in profit or loss
for the current period.On derecognition the difference between their carrying amount and the consideration paid is included in profit or loss for the
current period.
(6) Financial Liabilities Measured at the Amortized Cost
The financial liabilities measured at the amortized cost including short-term borrowings notes payable accounts payable other
payables long-term borrowings bonds payable long-term payables are initially measured at fair value and the relevant
transaction costs are charged to the initially recognized amount.The interest calculated using the effective interest method during the holding period is recognized in the profit or loss for the
current period.On derecognition the difference between the consideration paid and the carrying amount of these financial liabilities is recognized
in profit or loss for the current period.
3. Termination recognition and transfer recognition of financial assets are based on relevant accounting standards and
measurement methods
The Company derecognizes a financial asset when one of the following conditions is met:
191Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
- the contractual right to receive cash flows from the financial assets has expired;
- the financial asset has been transferred and all the risks and rewards of ownership of the financial asset are substantially
transferred to the transferee; or
- the financial asset has been transferred and the Company neither transferred nor retained a substantial portion of all risks and
rewards incidental to the ownership of the financial asset but did not retain control over the financial asset.If the Company modifies or renegotiates a contract with a counterparty and such modification constitutes a substantive
modification the original financial asset is derecognized and a new financial asset is recognized according to the modified terms.When a financial asset is transferred if the Company retains substantially all the risks and rewards of ownership of a financial
asset it does not derecognize the financial asset.When the Company determines whether a transfer of a financial asset satisfies the derecognizing criteria prescribed above it gives
weight to the substance rather than form.The Company divides a transfer of a financial asset into a transfer of the financial asset in its entirety or a transfer of part of the
financial asset. For a transfer of a financial asset in its entirety that satisfies the derecognizing criteria the difference between the
following two amounts is recognized in profit or loss for the current period:
(1) the carrying amount of the financial asset transferred; and
(2) the sum of the consideration received from the transfer and (if the financial asset transferred is a financial asset (debt
instrument) measured at fair value through other comprehensive income) any cumulative changes in fair value that was originally
recognized in owners’ equity.If part of the transferred financial asset qualifies for derecognition the carrying amount of the transferred financial asset in its
entirety is allocated between the part that continues to be recognized and the part that is derecognized based on the relative fair
values of those parts. The difference between the following two amounts is recognized in profit or loss for the current period:
(1) the carrying amount allocated to the part derecognized; and
(2) the sum of the consideration received for the part derecognized and (if the financial asset transferred is a financial asset (debt
instrument) measured at fair value through other comprehensive income) the amount of the part derecognized corresponding to the
cumulative changes in fair value that was originally recognized in owners’ equity.A financial asset that does not qualify for derecognition continues to be recognized and the consideration received is recognized as
a financial liability.
4. Derecognition of Financial Liabilities
If the present obligations of a financial liability are discharged in part or whole the financial liability or any part thereof is
derecognized; an agreement between the Company and the creditor to replace the existing financial liability with a new financial
liability with substantially different terms is accounted for as an extinguishment of the existing financial liability and the
recognition of a new financial liability.A substantial modification to the terms of an existing financial liability or any part thereof is accounted for as an extinguishment of
the existing financial liability or any part thereof and the financial liability with modified terms is recognized as a new financial
liability at the same time.When the Company derecognizes a financial liability or any part thereof it recognizes the difference between the carrying amount
of the financial liability derecognized and the consideration paid (including any non-cash assets transferred or new financial
liabilities assumed) in profit or loss for the current period.If the Company repurchases part of a financial liability it allocates the carrying amount of the financial liability in its entirety
between the part that continues to be recognized and the part that is derecognized based on the relative fair values of those parts on
the date of the repurchase. The difference between the carrying amount of the financial liability derecognized and the consideration
paid (including any non-cash assets transferred or new financial liabilities assumed) is recognized in profit or loss for the current
period.
192Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
5. Method of Determination of the Fair Value of Financial Assets and Financial Liabilities
If there is an active market for a financial instrument the quoted price in the active market is used to establish the fair value of the
financial instrument. If there is no active market for a financial instrument a valuation technique is used to establish the fair value
of the financial instrument. On valuation the Company adopts the valuation technique which applies to the current circumstances
and is supported by sufficient data available and other information selects the input value consistent with the characteristics of the
asset or liability considered by the market participants in the transaction of the relevant asset or liability and prioritizes using the
relevant observable input value. The unobservable input value can be used only when the relevant observable input value cannot
be obtained or it is impracticable to obtain the relevant observable input value.
6. Test and Accounting Treatment of Impairment of Financial Tools
The Company estimates the expected credit losses of financial assets measured at amortized cost financial assets (debt instruments)
at fair value through other comprehensive income and financial guarantee contracts on a single or joint basis.The Company comprehensively considers reasonable and well-founded information about past events current conditions and
predictions of future economic conditions as well as the possibility of default to calculate the probability-weighted amount of the
present value of the difference between cash flows receivable from contracts and cash flows expected to be recovered and include
it in the expected credit loss.For receivables and contract assets formed by transactions regulated by Enterprise Accounting Standards No. 14 - Revenue
regardless of whether they contain significant financing components the Company always measures their allowance for expected
credit losses equivalent to the amount expected throughout the entire term.For lease receivables formed by transactions regulated by Enterprise Accounting Standards No. 21 - Leases the Company chooses
to measure its allowance for expected credit losses equivalent to the amount expected throughout the entire term.For other financial instruments the Company evaluates the credit risk of the relevant financial instruments on each balance sheet
date based on changes since initial recognition.The Company compares the possibility of default at the balance sheet date with the possibility of default upon initial recognition
to determine the relative change in the default risks of financial instruments during the expected lifetime and assess whether the
credit risk of the financial instruments has increased significantly since initial recognition. If a financial instrument is past due for
more than 30 days the Company usually believes that credit risk of the financial instrument has increased significantly unless
there is clear evidence that credit risk of the financial instrument has not increased significantly since initial recognition.If a financial instrument has low credit risk on the balance sheet date the Company believes that credit risk of the financial
instrument has not increased significantly since initial recognition.If the credit risk of a financial instrument has significantly increased since initial recognition the Company measures its allowance
for expected credit losses equivalent to the amount expected throughout the entire term. If the credit risk of a financial instrument
has not significantly increased since initial recognition the Company measures its allowance for expected credit losses equivalent
to the amount expected over the next 12 months. The increase or reversal of allowance for expected credit losses resulting from
this is recognized as impairment losses or gains in the current period's profit or loss. For financial assets (debt instruments)
measured at fair value with changes recognized in other comprehensive income the allowance for expected credit losses is
recognized in other comprehensive income and impairment losses or gains are recognized in the profit or loss for the period
without reducing the carrying amount of the financial asset in the balance sheet.
1) The basis for recognizing accounts receivable confirmation combinations is as follows:
Item Combination Categories Basis for determination
Notes receivable Combination 1: Bank acceptance draft Acceptance draft types
Notes receivable Combination 2: Commercial acceptancedraft Acceptance draft types
Upon recognizing revenue our company initially recognizes accounts receivable which are then transferred to settle with
commercial bills. In accordance with the principle of continuous aging calculation the aging of accounts receivable is traced back
to the corresponding starting date of accounts receivable for aging calculation.
2) The basis for determining the combination of accounts receivable is as follows:
193Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Item Combination Categories Basis for determination
If the credit risk characteristics of a counterparty are significantly
Accounts Combination 1: Individual different from other counterparties in the portfolio a separate
receivable provision allowance for impairment is made for the amounts receivable from
that counterparty.Accounts Combination 2: Aging The Company considers the credit risk characteristics of different
receivable combination customers and assesses the expected credit losses of financialinstruments based on shared risk characteristics and aging portfolios.The Company starts calculating the aging of accounts receivable when the conditions for revenue recognition are met and initially
recognized. The actual aging period extends from the initial recognition date to the balance sheet date.
3) The basis for determining the combination of other receivables is as follows:
Item Combination Categories Basis for determination
Other receivables Combination 1: Individual If the credit risk characteristics of a counterparty are significantly
provision different from other counterparties in the portfolio a separate
allowance for impairment is made for the amounts receivable from
that counterparty.Other receivables Combination 2: Aging
The Company considers the credit risk characteristics of different
combination customers and assesses the expected credit losses of financialinstruments based on shared risk characteristics and aging portfolios.The Company starts calculating the aging of other receivables when they are initially recorded. The actual aging period extends
from the initial recognition date to the balance sheet date.
4) The basis for confirming the combination of accounts receivable financing is as follows:
Item Combination Categories Basis for determination
Receivable financing Combination 1: Bank acceptance draft Acceptance draft types
5) Criteria for determining individual provision for bad debt
The Company utilizes available reasonable and substantiated forward-looking information to assess the risk of default of financial
instruments at the balance sheet date compared to the risk at the initial recognition date. This assessment involves considering
whether there have been significant changes in the debtor's operating results either actual or expected; whether there have been
significant adverse changes in regulatory economic or technological environments; whether there have been significant changes
in the value of collateral serving as security for the debt or in the quality of third-party guarantees or credit enhancements which
are expected to reduce the debtor's economic incentives to repay according to the terms of the contract or affect the probability of
default; whether there have been significant changes in the debtor's expected performance and repayment behavior among other
factors. Based on this analysis the Company determines that credit risk has significantly increased. The Company also conducts a
comprehensive analysis to assess whether the debtor is experiencing significant financial difficulties has breached contracts or is
in default or if the debtor's financial difficulties have reduced the asset's liquidity among other factors to determine if impairment
has occurred. If the Company's customers or other debtors experience severe financial difficulties defaults on repayments and
have not provided effective credit enhancements or other safeguards the Company conducts impairment testing separately for
them considering the risk of default and the expected credit loss rate for the entire duration. A provision for bad debts is then
recognized based on the difference between the carrying amount of the financial asset and the present value of expected future
cash flows.The Company directly writes down the carrying amount of the financial asset if it no longer reasonably expects to recover all or
part of the contractual cash flows associated with the financial asset.
12. Notes Receivable
For details please refer to Note V 11 "Financial Instruments" herein.
13. Accounts Receivable
For details please refer to Note V 11 "Financial Instruments" herein.
194Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
14. Receivables Financing
For details please refer to Note V 11 "Financial Instruments" herein.
15. Other Receivables
For details please refer to Note V 11 "Financial Instruments" herein.
16. Contract Assets
1. Recognition Method and Criteria for Contract Assets
The Company recognizes contract assets or contract liabilities on the balance sheet based on the relationship between performance
obligations and customer payments. The right to consideration for goods transferred or services provided to customers (and where
that right is conditional on factors other than the passage of time) is recognized as a contract asset. Contract assets and contract
liabilities for the same contract are presented as a net amount. The unconditional right to consideration from customers (based
solely on the passage of time) that the Company holds is separately presented as accounts receivable.
2. Method for Determining Expected Credit Losses on Contract Assets and the Accounting Treatment
The method for determining expected credit losses on contract assets and the accounting treatment thereof are detailed in Note X 6
Methods for Testing and Accounting Treatment of Financial Instrument Impairment in this attachment.
17. Inventories
1. Classification and Cost of Inventories
Inventories are classified into: materials in transit raw materials revolving materials goods on hand products in process goods
sold work in process - outsourced contract performance cost etc.Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase costs of conversion and other
expenditures incurred in bringing the inventories to their present location and condition.
2. Pricing Methods of Inventories Transferred out
The Company delivers inventories at the price calculated using the weighted-average system monthly in arrears.
3. Inventory System
Adopts a perpetual inventory system.
4. Amortization Method for Low-value Consumables and Packaging Materials
The Company's inventory includes low-value consumables packaging materials etc. For high-value turnover materials monthly
amortization is carried out based on the estimated useful life upon issuance; for other low-value consumables one-time
amortization is carried out upon issuance; packaging materials are amortized using the one-time amortization method upon
issuance.
5. Criteria for Recognition and Provision Method of Inventory Impairment
At the balance sheet date inventories are measured at the lower of cost or net realizable value. If the cost of inventories is higher
than the net realizable value a provision for decline in value of inventories is made. Net realizable value is the estimated selling
price in the ordinary course of business less costs expected to be incurred until completion and the estimated costs necessary to
make the sale and relevant taxes.For finished products goods on hand materials available for sale and other merchandise inventories available for sale in the
ordinary production and operation process their net realizable value is determined at the estimated selling price of these
inventories less the estimated costs necessary to make the sale and relevant taxes; and for the inventories that need to be processed
195Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
in the ordinary production and operation process their net realizable value is determined at the estimated selling price of finished
products less the costs to be incurred until completion and the estimated costs necessary to make the sale and relevant taxes. The
net realizable value of the inventories held to satisfy sales or service contracts is based on the contract price. If the quantity of
inventories held is more than the quantity ordered in the sales contracts the net realizable value of the excess portion of inventories
is based on general selling prices.After the provision for decline in value of inventories is made if the circumstances that previously caused inventories to be written
down below cost no longer exist so that the net realizable value is higher than the carrying amount of inventories the reversal is
made to the extent of the amount originally provided for the decline in value of inventories. The amount of the reversal is
recognized in profit or loss for the current period.
18. Held-for-sale Assets
1. Hold-for-sale
The assets of which carrying amount is recovered mainly through sales (including through exchange of non-monetary assets with
commercial substance) rather than continuous use of non-current assets or disposal groups are classified as the held-for-sale assets.The Company classifies the non-current assets or disposal groups which meet all the following conditions as the held-for-sale
assets:
(1) they can be sold immediately under current conditions according to the practice of sales of such assets or disposal groups in
similar transactions; and
(2) the sale is very likely to happen that is the Company has made a resolution on a sale plan and obtained a confirmed purchase
commitment and such sale is expected to be completed within one year. The sale has been approved by the relevant authority or
regulatory department of the Company if it is required to be so approved by the relevant provisions.Classified as non-current assets held for sale (excluding financial assets deferred tax assets and assets arising from employee
benefits) or disposal groups whose carrying amount is higher than the net amount after deducting selling expenses from the fair
value the carrying amount is written down to the net amount after deducting selling expenses from the fair value and the written-
down amount is recognized as asset impairment loss and included in profit or loss for the current period while simultaneously
making provision for impairment of assets held for sale.
2. Termination of Operations
Termination of operations is a distinguishable component that meets one of the following conditions and has been disposed of or
classified as held for sale by the Company:
(1) The component represents a separate major business or a separate major operating area.
(2) The component is part of a related plan to dispose of a separate major business or a separate major operating area.
(3) The component is a subsidiary acquired solely for resale.
Profit or loss from continuing operations and profit or loss from termination of operations are separately presented in the income
statement. Impairment losses and reversals operating losses and gains from disposal related to termination of operations are
reported as profit or loss from termination of operations. For termination of operations reported in the current period the Company
reclassifies the information previously reported as profit or loss from continuing operations as profit or loss from termination of
operations in the financial statements for the current period.
19.Long-term Equity Investments
1. Judgment Criteria of Joint Control and Significant Influence
Joint control is the agreed sharing of control over an arrangement and the relevant activities of such arrangement must be decided
upon the unanimous consent of the parties sharing control. If the Company can exercise joint control over the investee along with
other parties to joint ventures and enjoy rights over net assets of the investee the investee is a joint venture of the Company.
196Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control or
joint control with other parties over the establishment of those policies. If the Company can have significant influence over the
investee the investee is an associate of the Company.
2. Determination of Initial Investment Cost
(1) Long-term equity investments formed by business combination
In case of a long-term equity investment of a subsidiary acquired through a business combination involving entities under common
control the initial investment cost of the long-term equity investment is the Company’s share of the carrying amount of the owners’
equity of the absorbed party in the consolidated financial statements of the ultimate controller at the date of combination. The
difference between the initial investment cost of the long-term equity investment and the carrying amount of the consideration paid
for the combination is treated as an adjustment to the equity premium in the capital reserve. In case the equity premium in the
capital reserve is not sufficient to absorb the difference the remaining balance is adjusted against the retained earnings. Where the
Company becomes capable of exercising control over an investee under the common control due to additional investments or other
reasons the difference between the initial investment cost of the long-term equity investment recognized in the light of the above
principles and the sum of the carrying amount of the long-term equity investment prior to combination plus the carrying amount of
new consideration paid for further acquisition of shares on combination date is adjusted to the equity premium. If the equity
premium is not sufficient to absorb the difference any excess is adjusted against retained earnings.In case of a long -term equity investment acquired through a business combination not involving enterprises under common
control the Company regards the cost of combination determined on the date of acquisition as the initial investment cost of the
long-term equity investment. If the Company becomes capable of exercising control over an investee not under common control
due to additional investments or other reasons the initial investment cost is the sum of the carrying amount of the equity
investment originally held and the new investment cost.
(2) Long-term equity investments obtained through forms other than business combination
For a long-term equity investment acquired by paying cash the initial investment cost is the actual purchase price..For a long-term equity investment acquired by the issue of equity securities the initial investment cost is the fair value of equity
securities issued
3. Subsequent Measurement and Determination of Profit or Loss
(1) Long-term equity investments accounted for using the cost method
The Company accounts for the long-term equity investments of the subsidiaries using the cost method unless these investments
meet the held-for-sale conditions. Except for cash dividends or profit distributions declared but undistributed included in the price
or consideration actually paid on acquisition of investments the Company recognizes its cash dividends or profit distributions
declared by the investee as investment income in the current period.
(2) Long-term equity investments accounted for using the equity method
The long-term equity investments of associates and joint ventures are accounted for using the equity method. Where the initial
investment cost of a long-term equity investment exceeds the Company’s interest in the fair values of the investee’s identifiable
net assets at the acquisition date no adjustment is made to the initial investment cost of the long-term equity investment. Where
the initial investment cost is less than the Company’s interest in the fair values of the investee’s identifiable net assets at the
acquisition date the difference is charged to profit or loss for the current period and the cost of the long-term equity investment is
adjusted accordingly.The Company respectively recognizes its share of the net profits or losses and other comprehensive income made by the investee
as investment income and other comprehensive income and adjusts the carrying amount of the long-term equity investment
accordingly. The carrying amount of the long-term equity investment is reduced by the portion of any profit distributions or cash
dividends declared by the investee that is attributed to the Company. The Company adjusts the carrying amount of the long-term
equity investment for other changes in owners’ equity of the investee other than net profits or losses other comprehensive income
and profit distributions (“changes in other owners’ equity”) and includes the corresponding adjustment in owners’ equity.
197Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
For recognition of its share of the investee’s net profits or losses or other comprehensive income and changes in other owners’
equity the Company recognizes its share of the investee’s net profits and other comprehensive income after making appropriate
adjustments based on the fair value of the investee’s identifiable net assets at the date of acquisition in accordance with its
accounting policies and period.For unrealized profits or losses resulting from intragroup transactions between the Company and associates or joint ventures the
portion attributable to the Company is eliminated and based on this the investment income is recognized unless the invested or
sold assets constitute the business. The impairment loss of assets in the unrealized losses resulting from intragroup transactions
between the Company and the investee is fully recognized.The Company discontinues recognizing its share of net losses of the associate or joint venture after the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of the Company’s net investment in
the associate or joint venture are reduced to zero except to the extent that the Company has incurred obligations to assume
additional losses. Where the associate or joint venture makes net profits subsequently the Company resumes recognizing its share
of those profits only after its share of the profits equals the share of losses not recognized.
(3) Disposal of long-term equity investments
On disposal of a long term equity investment the difference between the proceeds actually received and the carrying amount is
recognized in profit or loss for the current period.If on partial disposal of long-term equity investments accounted for using the equity method the remaining equity is still
accounted for using the equity method the portion previously included in other comprehensive income is accounted for on a pro-
rata basis with the same basis as the relevant assets or liabilities directly disposed of by the investee and changes in other owners’
equity are transferred to profit or loss for the current period on a pro-rata basis.When the Company loses joint control or significant influence on the investee due to disposal of equity investments or other
reasons the original equity investment included in other comprehensive income due to the use of equity method is accounted for
on the same basis as the relevant assets or liabilities directly disposed of by the investee when the equity method discontinues and
the changes in other owners’ equity are fully transferred to profit or loss for the current period when the equity method
discontinues.Where the Company loses control over the investee due to disposal of partial equity investments if in preparing separate financial
statements the Company can exercise joint control or significant influence on the investee by virtue of its remaining equity the
remaining equity switches to the equity method for accounting and is adjusted as if it is accounted for using the equity method
since acquisition. Other comprehensive income recognized prior to acquisition of the control on the investee is carried forward
proportionally on the same basis as the investee’s direct disposal of related assets or liabilities and changes in other owners’ equity
recognized using the equity method are transferred to profit or loss for the current period on a pro-rata basis; if the Company
cannot exercise joint control or significant influence on the investee by virtue of its remaining equity the remaining equity is
recognized as financial assets and the difference between the fair value and the carrying amount on the date when the Company
loses control is recognized in profit or loss for the current period and other comprehensive income and changes in other owners’
equity recognized prior to acquisition of the control on the investee are fully carried forward.Where all transactions from disposal of equity investments in a subsidiary through multiple transactions by steps until the loss of
control belong to a single package the Company accounts for each transaction as a disposal of equity investments in a subsidiary
and the loss of control; however the difference between the proceeds from each disposal before loss of control and the carrying
amount of the long-term equity investments corresponding to the equity disposed of is first recognized in other comprehensive
income in separate financial statements and then transferred to the profit or loss in the period in which the control is lost. Where all
transactions do not belong to a single package the Company accounts for each transaction respectively.
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20. Investment Properties
Measurement of investment properties
Measured at cost
Depreciation or amortization methods
The Company’s investment property is property held to earn rentals or for capital appreciation or both including land use rights
that have been leased out land use rights that are held and ready to be transferred after appreciation and buildings that have been
leased out (including those that are available for rental after being built by the Company itself or completion of development
activities and are being built or in progress for rental in the future).Subsequent costs incurred for an investment property are included in the cost of the investment property when it is probable that
the associated economic benefits will flow to the Company and the cost of the asset can be measured reliably. Subsequent costs
that fail to meet the recognition criteria above are recognized in profit or loss in the period in which they are incurred.The Company measures the existing investment properties using the cost model. For investment properties measured using cost
model for measurement - the buildings available for rental follow the same depreciation policies as those of the Company’s fixed
assets and land use rights available for rental follow the same amortization policies as those of intangible assets.
21. Fixed Assets
(1) Recognition of Fixed Assets
Fixed assets are held for use in the production or supply of goods or services for rental to others or for administrative
purposes and have useful lives of more than one accounting year. A fixed asset is recognized only when both of the following
conditions are met:
(1) it is probable that economic benefits associated with the fixed asset will flow to the enterprise; and
(2) the cost of fixed assets can be measured reliably.
A fixed asset of the Company is initially measured at its cost and in determining the cost of a fixed asset the Company
considers the effect of any expected costs of abandoning the asset at the end of its use.Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the
associated economic benefits will flow to the Company and the cost of the asset can be measured reliably; the carrying amount of
the part to be replaced is derecognized; and all other subsequent expenditures are recognized in profit or loss in the period in which
they are incurred.
(2) Method of Depreciation
Category Method of depreciation Estimated useful life(year) Residual value rate
Annual depreciation
rate (%)
Buildings Straight-line method 15-43 0 1 10 2.35-6.67
Machinery equipment 3-15 0 0.01， 1， 10 6-33.33
Auxiliary production
equipment Straight-line method 5-10 10 9-18
Transportation Straight-line method 3-5 1， 0 18-33
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equipment
Mould equipment Straight-line method 3-10 10 9-30
Office equipment Straight-line method 3-5 0 0.01， 1， 10 18-33.33
Computer equipment Straight-line method 3-10 0 0.01， 1， 10 10-33.33
Other equipment Straight-line method 3-15 0 0.01， 1， 10 6-33.33Land (Note 1）
The Company provides for depreciation of fixed assets by category using the straight-line method and determines the depreciation
rate on the category estimated useful life and estimated net residual value of fixed assets. For fixed assets with the provision for
impairment the depreciation amount will be determined in the future based on the carrying amount after deduction of the
provision for impairment and remaining useful life. If a fixed asset has various component parts which have different useful lives
or provide benefits to the enterprise in different manners these component parts are depreciated separately by selecting different
depreciation rates or methods.The depreciation methods useful life residual value rate and annual depreciation rate for various types of fixed assets are as
follows:
Note 1: Refers to land ownership obtained by a U.S. subsidiary and no depreciation is required.
(3) Disposal of Fixed Assets
A fixed asset is derecognized when it is disposed of or when no future economic benefits are expected to be generated from its use
or disposal. When a fixed asset is sold transferred retired or damaged the Company recognizes the amount of any proceeds on
disposal net of the carrying amount and related taxes and fee in profit or loss for the current period.
22 Construction in Progress
A construction in progress is measured at the actual cost incurred. Actual cost includes construction and installation fees
qualifying borrowing costs and other necessary expenses necessarily incurred for bringing the asset to working condition for its
intended use. The construction in progress is transferred to fixed assets when meeting working conditions for its intended use and
the Company begins to make provision from next month. The standard and timing for capitalizing construction in progress into
fixed assets for our company are as follows:
Category Criteria and timing for transferring construction in progress to fixed assets
(1) The main construction project and supporting projects have substantially completed. (2)
The construction project meets the predetermined design requirements and has been accepted
by survey design construction and supervision units.Buildings (3) It has passed inspections by external departments such as fire land and planning. (4) If the
construction project reaches the predetermined usable state but has not yet undergone final
settlement it will be transferred to fixed assets based on the actual construction cost according
to the estimated value from the date it reaches the predetermined usable state.Machinery and equipment (1) Relevant equipment and other supporting facilities have been fully installed. (2) The
requiring installation and equipment has been debugged and can maintain normal stable operation for a period of time.commissioning (3) Production equipment is capable of producing qualified products steadily for a period oftime. 4) The equipment has been accepted by asset management personnel and users.
23 Borrowing Costs
1. Recognition of Capitalization of Borrowing Costs
200Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production of a
qualifying asset are capitalized as part of the cost of the relevant asset. The amounts of other borrowing costs incurred are
recognized as an expense in the period in which they are incurred and recorded into profit or loss for the current period.Qualifying assets are assets (fixed assets investment property inventories etc.) that necessarily take a substantial period of time
for acquisition construction or production to get ready for their intended use or sale.
2. Capitalization Period of Borrowing Costs
Capitalization period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation of
capitalization excluding any period over which capitalization is suspended.The capitalization of borrowing costs can commence only when all of the following conditions are satisfied:
(1) expenditures for the asset are being incurred and such expenditures include those expenditures incurred for the acquisition
construction or production of the qualifying asset that have resulted in payments of cash transfer of non-cash assets or the
assumption of interest-bearing liabilities;
(2) borrowing costs are being incurred; and
(3) activities relating to the acquisition construction or production of the asset that are necessary to prepare the asset for its
intended use or sale have commenced.When the qualifying asset being acquired constructed or produced has become ready for its intended use or sale the capitalization
ceases.
3. Period over which Capitalization is Suspended
Capitalization of borrowing costs is suspended during periods in which the acquisition construction or production of a qualifying
asset is interrupted abnormally when the interruption is for a continuous period of more than 3 months. However capitalization of
borrowing costs continues when the interruption is a necessary part of the process of preparing that asset for its intended use or
sale. The borrowing costs incurred during these periods of interruption are recognized as profit or loss for the current period and
the capitalization of borrowing costs does not continue until the acquisition construction or production of that asset is resumed.
4. Calculation Methods of Rate and Amount of Capitalization of Borrowing Cost
Where funds are borrowed under a specific-purpose borrowing for the acquisition construction or production of a qualifying asset
the amount of borrowing costs to be capitalized is the actual borrowing costs incurred for the current period less any bank interest
earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment
of those funds.Where funds are borrowed under general-purpose borrowings and are utilized for the acquisition construction or production of a
qualifying asset the Company determines the amount of borrowing costs to be capitalized on such borrowings by multiplying a
capitalization rate of the utilized general-purpose borrowings by the weighted average of the excess amounts of cumulative
expenditures on the asset over and above the amounts of specific-purpose borrowings. The capitalization rate is the weighted
average of the actual interest rates applicable to the general-purpose borrowings.During the capitalization period exchange differences related to the principal and interest on a specific-purpose borrowing
denominated in foreign currency are capitalized as part of the cost of the qualifying asset. The exchange differences arising from
foreign currency borrowings and interest thereon other than specific-purpose borrowings denominated in foreign currency are
recognized in profit or loss for the current period.
24 Intangible Assets
(1) Service Life of Assets and its Determination Basis Estimation Amortization Method or Review
Procedures
1. Pricing Methods of Intangible Assets
(1) The Company initially measures an intangible asset at cost of acquisition;
201Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The cost of a separately acquired intangible asset comprises its purchase price related taxes and any directly attributable
expenditure for preparing the asset for its intended use.
(2) Subsequent measurement
The Company analyzes and assesses the useful life of an intangible asset on its acquisition.A finite-lived intangible asset is amortized during the period over which the asset generates economic benefits for the enterprise;
an intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the
asset is expected to generate economic benefits for the enterprise and is not be amortized.
2. Estimated Useful Lives of Intangible Assets with Finite Life
Item Estimated useful life (year) Amortizationmethod Residual value rate Basis
Software 3-10 Straight-line method None Estimated period of benefit
Land use right 50 Straight-line method None Certificate of land use rights
Patent right 10 Straight-line method None Right term
Non-patent technology 10 Straight-line method None Estimated period of benefit
Other 6-18 Straight-line method None Estimated period of benefit
3. Basis for Judgment of an Intangible Asset with Indefinite Useful Life and Procedures for Review of Useful Life
The Company reviews the useful life of the indefinite intangible assets at the end of each period.
(2) Scope of Capitalization for Research and Development (R&D) Expenses and Related Accounting
Treatment Methods
1. The scope of capitalization for research and development (R&D) expenses
The scope of capitalization for research and development (R&D) expenses includes personnel salaries related to R&D activities
materials consumed related depreciation and amortization expenses utilities and other related expenses incurred during the R&D
process.
2. Specific criteria for an internal research and development project that are classified into the research phase and the development
phase
Expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure
on the development phase.Research Stage: The stage of original planned investigation and research activities conducted to obtain and understand new
scientific or technical knowledge etc.Development Stage: The stage of activities where research findings or other knowledge are applied to a plan or design before
commercial production or use in order to produce new or substantially improved materials devices products etc.
3. Specific criteria of expenditure on the development phase qualifying for capitalization
Expenditure on the research phase is recognized in profit or loss for the period in which it is incurred. Expenditure on the
development phase is recognized as an intangible asset only when the Company demonstrates that all of the following conditions
are met; otherwise it is recognized in profit or loss for the current period:
(1) the technical feasibility of completing the intangible asset so that it will be available for use or sale;
(2) the intention to complete the intangible asset and use or sell it;
(3) how the intangible asset will generate economic benefits. Among other things the Company can demonstrate the existence of a
market for the output of the intangible asset or the intangible asset itself or if it is to be used internally the usefulness of the
intangible asset;
(4) the availability of adequate technical financial and other resources to complete the development of and the ability to use or sell
the intangible asset; and
(5) its ability to measure reliably the expenditure attributable to the intangible asset during its development phase.
202Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
If the Company fails to discriminate between expenditure on the research phase and expenditure on the development phase all
expenditures on research and development are recognized in the profit or loss for the current period.
25. Impairment of Long-TermAssets
Where any indication exists that long-term equity investments investment properties measured at the cost model fixed assets
construction in progress right-of-use assets intangible assets with finite useful life oil and gas assets and other long-term assets
may be impaired at the balance sheet date the Company performs an impairment test thereon. If the result of the impairment test
shows that the recoverable amount of an asset is lower than its carrying amount the provision for impairment is made for the
difference and the difference is included in the impairment loss. The recoverable amount of an asset is the higher of its fair value
less disposal costs or the present value of the future cash flows expected to be derived from the asset. The provision for
impairment of assets is calculated and recognized for an individual asset and if it is not possible to estimate the recoverable
amount of the individual asset the Company determines the recoverable amount of the asset group to which the asset belongs. An
asset group is the smallest identifiable group of assets that generates cash inflows.Goodwill generated in a business combination indefinite-lived intangible assets and intangible assets which do not meet the
working conditions for their use are tested for impairment at least at the end of each year irrespective of whether there is any
indication that the asset may be impaired.For the purpose of impairment testing of the Company the carrying amount of goodwill generated in a business combination is
from the acquisition date allocated on a reasonable basis to each of the related asset groups. If it is not possible to allocate to the
related asset groups it is allocated to each of the related sets of asset groups. Each of the related asset groups or sets of asset
groups shall be an asset group or a set of asset groups that is able to benefit from the synergies of the business combination.In testing an asset group or a set of asset groups to which goodwill has been allocated for impairment there may be an indication
that a related asset group or set of asset groups may be impaired. In such circumstances the Company firstly tests the asset group
or set of asset groups excluding the amount of goodwill allocated for impairment calculates its recoverable amount compares the
recoverable amount with the related carrying amount and recognizes any impairment loss. Then the Company tests the asset group
or set of asset groups to which goodwill has been allocated for impairment and compares its carrying amount and recoverable
amount. When the recoverable amount is less than its carrying amount the amount of impairment loss first reduces the carrying
amount of any goodwill allocated to the asset group or set of asset groups and then reduces the carrying amount of other assets
(other than goodwill) within the asset group or set of asset groups pro rata on the basis of the carrying amount of each asset.Once an impairment loss on the asset above is recognized it will not be reversed in a subsequent period.
26. Long-Term Deferred Expenses
Long-term deferred expenses mean those that have been incurred but should be amortized in the current period and the subsequent
periods of more than one year.The amortization period and method of expenses are shown as follows:
Item Amortization method Amortization period
Housing decoration fees Straight-line method Period of benefit
Leasehold Improvements Straight-line method Period of benefit
Other Straight-line method Period of benefit
27. Contract Liabilities
The Company recognizes contract assets or contract liabilities on the balance sheet based on the relationship between performance
obligations and customer payments. The Company presents the contract assets or liabilities in the balance sheet based on the
203Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
relationship between performance obligations and customer payments. The Company presents the obligations to transfer goods or
offer services to customers as the consideration received or receivable from customers as the contract liabilities. Contract assets
and contract liabilities for the same contract are presented as a net amount.
28. Employee Benefits
(1) Accounting Treatment of Short-Term Benefits
The Company recognizes the short-term benefits actually incurred during the accounting period when the employees serve the
Company as liabilities and includes the same as part of the cost of related assets or in profit or loss for the current period.The employee benefits corresponding to payments of social security contributions and housing funds for employees by the
Company and the appropriation to labor union funds and employee education fees are determined on such provision basis and at
such provision rate as stipulated during the period when the employees provide services for the Company.The staff welfare incurred by the Company is stated as the amount actually incurred and recorded into profit or loss for the current
period or cost of related assets; non-monetary benefits are measured at fair value.
(2) Accounting Treatment of Post-Employment Benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees pursuant to the relevant regulations of
the local government. The amounts payable therefor during the accounting period when the employees serve the Company are
calculated according to the payment base and proportion stipulated by the local regulations which are recognized in profit or loss
for the current period or the cost of related assets as liabilities.
(3) Accounting Treatment of Termination Benefits
The Company recognizes the employment remuneration liabilities generated by termination benefits and records them into the
profit or loss for the current period on the earlier of: when the Company cannot unilaterally withdraw the severance benefits
provided as a result of the labor relationship termination plan or layoff proposal or when it recognizes the costs or expenses
related to the restructuring of the severance benefits payment.
29. Provisions
The Company recognizes an obligation related to a contingency as a provision when all of the following conditions are satisfied:
(1) the obligation is a present obligation of the Company;
(2) it is probable that an outflow of economic benefits from the Company will be required to settle the obligation; and
(3) the amount of the obligation can be measured reliably.
Provisions are initially measured at the best estimate of the expenditure required to settle the related present obligation.
204Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Factors pertaining to a contingency such as the risks uncertainties and time value of money are taken into account as a whole
when the Company reaches the best estimate. Where the effect of the time value of money is material the best estimate is
determined by discounting the related future cash outflows.Where there is a continuous range of the expenditure required and each possible outcome in that range is as likely as any other
the best estimate is the mid-point of that range. Under any other circumstances the best estimate is accounted for as follows:
* where the contingency involves a single item the best estimate is the most likely amount; or
* where the contingency involves a large population of items the best estimate is determined by weighting all possible outcomes
by their associated probabilities.Where all or some of the expenditure required to settle an estimated liability is expected to be reimbursed by a third party the
reimbursement is recognized as a separate asset when it is virtually certain that reimbursement will be received. The amount
recognized for the reimbursement does not exceed the carrying amount of the estimated liability.The Company reviews the carrying amount of a provision at the balance sheet date. Where there is clear evidence that the carrying
amount of a provision does not reflect the current best estimate the carrying amount is adjusted to the current best estimate.
30. Share-Based Payment
A share-based payment of the Company is a transaction in which the Company grants equity instruments or incurs liabilities for
amounts that are determined based on the price of equity instruments in return for services rendered by employees or other parties.A share-based payment of the Company is classified as either an equity-settled share-based payment or a cash-settled share-based
payment.
1. Equity-settled share-based payment and equity instruments
An equity-settled share-based payment in exchange for services received from the employees is measured at the fair value of
equity instruments granted to the employees. If the right under the share-based payment vests immediately following the grant the
Company on grant date recognizes related costs or expenses at an amount equal to the fair value of the equity instruments with a
corresponding increase in capital reserve. If the rights under the share-based payment do not vest until the completion of services
for a vesting period or until the achievement of a specified performance condition at each balance sheet date during the vesting
period the Company makes the best estimate of the number of equity instruments expected to vest and based on this recognizes
the services received in the current period in the related costs or expenses at an amount equal to the fair value on the grant date
with a corresponding increase in capital reserve.If the terms of equity-settled share-based payment are modified the services received are recognized at least pursuant to the
unmodified terms. In addition any modifications that increase the fair value of the equity instruments or changes that are
beneficial to employees on the modification date are recognized as an increase in services.If the granted equity instrument is cancelled within the vesting period the Company treats the cancellation of equity instrument
granted as the accelerated exercise and the amount to be recognized during the remaining vesting period is immediately charged to
profit or loss for the current period and the capital reserve is recognized at the same time. However if a new equity instrument is
granted and on the grant date thereof is deemed to replace the cancelled equity instrument the substitute equity instrument
granted is accounted for pursuant to the terms and conditions for accounting for original equity instrument.
205Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
31. Revenue
Disclosure of Accounting Policies Adopted for Revenue Recognition and Measurement by Business Type
1. Accounting Policies Adopted for Revenue Recognition and Measurement
The revenue is recognized at the time when the Company has discharged the performance obligations in the contract that is when
the customer obtains the control of the related goods or services. Obtainment of the control of the related goods or services means
the ability to direct the use of such goods or services and obtain substantially all of the economic benefits from them.If the contract has two or more performance obligations the Company allocates the transaction price to each individual
performance obligation on the inception of the contract by reference to relative standalone selling prices of goods or services
promised thereby. The Company measures revenue based on the transaction price allocated to each individual performance
obligation.The transaction price is the amount of consideration to which the Company is entitled arising from the transfer of goods or services
to the customer excluding the amount collected on behalf of a third party and expected to be returned to the customer. The
Company determines the transaction price with reference to the contract terms and in conjunction with past customary practices
and in doing so considers variable consideration significant financing components in the contract non-cash consideration
consideration payable to customers and other factors. The Company determines the transaction price including variable
consideration to the extent that it is highly probable that its inclusion will not result in a significant revenue reversal of
accumulatively recognized revenue in the future when the uncertainty has been subsequently resolved. If there is a significant
financing component in the contract the Company determines the transaction price based on the presumed amount payable in cash
when the customer obtains the control of goods or services and amortizes the differences between the transaction price and the
contract consideration using the actual interest method within the term of the contract.When meeting one of the following criteria it belongs to the obligation performed over time otherwise it constitutes the obligation
performed at a point in time:
* the customer obtains and consumes the economic benefits generated by the Company’s performance when the Company
performs the contract;
* the customer can control the products in progress in the performance of the contract by the Company; or
* the products produced in the process of the Company’s performance have irreplaceable uses and the Company has the right
to collect payment for the cumulative performance that has been completed up to date throughout the term of the contract.For the obligation performed over time the Company recognizes the revenue based on the performance progress over time unless
the performance progress cannot be reasonably determined. The Company determines the progress of performance obligation by
taking the nature of goods or services and using the output/input method. When the performance progress cannot be reasonably
determined and the costs incurred are expected to be recoverable the Company recognizes the revenue to the extent of costs
incurred until the performance progress can be reasonably determined.For the obligation performed at a point in time the Company recognizes the revenue at the point in time when the customer
obtains the control of the related goods or services. When judging whether the customer has obtained the control of goods or
services the Company considers the following signs:
* the Company has the current right to receive payment for such goods or services that is the customer has the current
obligation to make payment for such goods or services;
* the Company has transferred the legal ownership of such goods to the customer that is the customer has the legal ownership
of such goods;
* the Company has transferred such goods to the customer physically that is the customer has taken possession of such goods
physically;
* the Company has transferred major risks and rewards of ownership of such goods to the customer that is the customer has
obtained major risks and rewards of ownership of such goods; and
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* the customer has accepted such goods or services.The Company determines its role as a principal or agent based on whether it has control over the goods or services before
transferring them to customers. If the Company can control the goods or services before transferring them to customers it acts as a
principal and recognizes revenue based on the total amount received or receivable. Otherwise if the Company acts as an agent it
recognizes revenue based on the amount of commission or fees expected to be entitled to.
2. Disclosure of Specific Revenue Recognition Methods and Measurement Methods by Business Type
The Company organizes the production according to the sales contracts signed with or the orders placed by customers and
identifies the following models based on different geographical locations of customers and inventory management methods:
(1) General sales
For domestic sales the Company ships goods to the delivery location designated by a customer and recognizes the revenue after
the customer has signed the receipt of the products; and for foreign sales the goods are delivered according to specific trade terms
and the revenue is recognized at a point in time when the control is transferred.
(2) Supplier management inventory
Under this model the Company ships the goods to the designated warehouse the customer picks up the goods from the warehouse
and the revenue is recognized at a point in time when the control is transferred.Situations where different revenue recognition methods and measurement methods are involved due to different operating models
for similar businesses
Situations where different revenue recognition methods and measurement methods are involved due to different operating models
for similar businesses
32. Contract Costs
Contract costs include contract performance cost and contract acquisition costs.The cost incurred by the Company to perform a contract is not governed by the standards on inventories fixed assets or intangible
assets and if meeting the following criteria is recognized as an asset as the contract performance cost:
* such cost is directly related to an existing or expected contract;
* such cost increases the Company’s future resources for fulfilling its performance obligations; and
* such cost is expected to be recovered.If the incremental cost incurred by the Company to obtain a contract is expected to be recovered it is recognized as an asset as the
cost for contract acquisition.The Company amortizes the asset related to the contract cost on the same basis as the recognition of the revenue of the goods or
services related to the asset; provided that if the cost for contract acquisition is amortized for not more than one year the Company
includes it into the profit or loss for the current period in which it is incurred.If the carrying amount of the asset related to the contract cost is higher than the difference between the following two amounts the
Company makes a provision for impairment of the excess and recognizes it as an impairment loss for the asset:
1. the remaining consideration expected to be obtained due to the transfer of the goods or services related to the asset; and
2. the cost to be incurred due to the transfer of the relevant goods or services.
If the impairment factors for prior periods have changed afterwards so that the above difference is higher than the carrying amount
of the asset the Company reverses a provision for impairment originally made and includes it in the profit or loss for the current
period provided that the carrying amount after reverse should not exceed the carrying amount the asset would have reached on the
date of reverse had the provision for impairment been not made.
207Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
33. Government Grants
1. Category
Government grants are monetary assets or non-monetary assets from the government to the Company at no consideration.Government grants are classified into government grants related to assets and government grants related to income.Government grants related to assets are government grants whose primary condition is that the Company should purchase
construct or otherwise acquire long-term assets. Government grants related to income are government grants other than those
related to assets.The specific standard based on which the Company classifies a grant as a government grant related to assets is that: the grant
obtained by the Company is used to purchase construct or otherwise acquire long-term assets.The specific standard based on which the Company classifies a grant as a government grant related to income is that: government
grants related to income are government grants other than those related to assets.When classifying a grant whose subsidy object is not clearly specified in the government documents as a government grant related
to assets or a government grant related to income the Company judges whether the grant is used to purchase construct or
otherwise acquire long-term assets.
2. Recognition Time Point
The government grant is recognized when the Company meets the conditions attaching to the government grant and can receive
the government grant.
3. Accounting Treatment
The government grants related to assets are offset against the carrying amount of the related assets or recognized as deferred
income. If a grant is recognized as deferred income it is charged to profit or loss for the current period in a reasonable and
systematic manner within the useful life of related assets (the grant related to the daily activities of the Company is recognized in
other income otherwise it is recognized in non-operating income);
The government grant related to income which is a compensation for related expenses or losses to be incurred by the Company in
subsequent periods is recognized as the deferred income and charged to the profit or loss over the period when related costs or
losses are recognized (the grant related to the daily activities of the Company is recognized in other income otherwise it is
recognized in non-operating income) or offset against related costs or losses; and the government grant related to income which is
a compensation for related expenses or losses incurred by the Company is directly recognized in profit or loss for the current
period (the grant related to the daily activities of the Company is recognized in other income otherwise it is recognized in non-
operating income) or offset against related costs or losses.The policy-related preferential loan interest discounts obtained by the Company are accounted for separately according to the
following two circumstances:
(1) If the finance department allocates the interest discount funds to the lending bank and then the lending bank offers a loan to the
Company at the policy-based preferential interest rate the Company recognizes the loan amount actually received as the recorded
amount of the loan and calculates the borrowing costs according to the loan principal and such policy-based preferential interest
rate.
(2) If the finance department directly allocates the interest discount funds to the Company the Company offsets the corresponding
interest subsidy against the related borrowing costs.
34. Deferred Tax Assets/Deferred Tax Liabilities
Deferred tax assets and deferred tax liabilities
Income tax includes current and deferred tax. Except for the income tax arising from business combinations and transactions or
events recognized directly in owners’ equity (including other comprehensive income) the Company recognizes current tax and
deferred tax in profit or loss for the current period.
208Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The deferred tax assets and deferred tax liabilities are calculated and recognized based on the difference (temporary difference)
between the tax base of assets and liabilities and the carrying amount of assets and liabilities.A deferred tax asset is recognized for the deductible temporary difference to the extent that it is probable that future taxable
income amounts will be available against which the deductible temporary difference can be utilized. A deferred tax asset is
recognized for the carryforward of unused deductible losses and tax credits to the extent that it is probable that future taxable
income amounts will be available against which the deductible losses and tax credits can be utilized.A deferred tax liability is recognized for taxable temporary difference except for special circumstances.Special circumstances under which the deferred tax assets or deferred tax liabilities are not recognized for the taxable temporary
difference include:
* the initial recognition of goodwill; and
* Transactions or events that neither constitute business combinations nor affect accounting profits and taxable income (or
deductible losses) at the time of occurrence and where the initial recognition of assets and liabilities does not result in the creation
of temporary taxable differences and deductible temporary differences.A deferred tax liability is recognized for the taxable temporary difference related to investments in subsidiaries associates and
joint ventures unless the Company is able to control the timing of the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future. A deferred tax asset is recognized for the deductible temporary
difference related to investments in subsidiaries associates and joint ventures when it is probable that the temporary difference
will reverse in the foreseeable future and taxable income amounts will be available in the future against which the deductible
temporary difference can be utilized.At the balance sheet date deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realized or the liability is settled according to the requirements of tax laws.The Company reviews the carrying amount of the deferred tax assets at the balance sheet date. The Company reduces the carrying
amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable income amounts will be available in
future periods to allow the benefit of the deferred tax asset to be utilized. Any such reduction in amount is reversed to the extent
that it becomes probable that sufficient taxable income amounts will be available.The current tax assets and current tax liabilities are offset and presented on a net basis when the Company has the statutory right to
settle on a net basis and intends to settle on a net basis or to obtain assets and settle liabilities simultaneously.At the balance sheet date deferred tax assets and deferred tax liabilities are offset and presented on a net basis when both of the
following conditions are satisfied:
* the taxpayer has the statutory right to settle the current tax assets and current tax liabilities on a net basis; and
* the deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax authority on the same
taxpayer or different taxpayers provided that during the period in which each material deferred tax asset and liability will be
reversed the taxpayer involved intends to settle the current tax assets and liabilities on a net basis or obtain assets and settle
liabilities simultaneously.
35. Leases
(1) Accounting Treatment Method for Lessees Leasing
The term “lease” refers to an agreement whereby the lessor conveys to the lessee the right to use an asset for consideration in an
agreed period of time. The Company shall assess whether a contract is a lease contract or contains a lease at the commencement
date of the contract which can be identified if one party to the contract conveys the right to use one or more identified assets for
exchange of consideration in an agreed period of time.
209Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
If a contract contains several individual leases the Company will split the contract and account for each individual lease separately.If a contract contains both lease and non-lease components the lessee and the lessor will separate the lease and non-lease
components.
1. The Company as a lessee
(1) Right-of-use assets
At the commencement date of the lease the Company recognizes right-of-use assets for leases excluding short-term leases and
leases of low-value assets. The right-of-use assets are initially measured at cost. Such costs comprise:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received (if any);
any initial direct costs incurred to the Company; and
costs expected to be incurred by the Company for disassembly and removal of leased assets restoration of the site where the leased
asset is located or recovery of the leased asset to the condition agreed upon under the terms of the lease excluding costs incurred
to produce inventories.The right-of-use assets are depreciated by using a straight-line method subsequently. A leased asset is depreciated over its
remaining useful life if the ownership of this leased asset can be reasonably obtained at the maturity date of the lease term
otherwise the leased asset is depreciated over the shorter of its remaining useful life or the lease term.The Company determines whether the right-of-use assets are impaired and accounts for the identified impairment losses in
accordance with the principles stated in Note “III. (20) Impairment of long-term assets”.
(2) Lease liabilities
At the commencement date of the lease the Company recognizes lease liabilities for leases excluding short-term leases and leases
of low-value assets. The lease liabilities are initially measured at the present value of the outstanding lease payments. Lease
payments include:
fixed payments (including in-substance fixed payments) less any lease incentives receivable (if any);
variable lease payments that are based on an index or a rate;
amounts expected to be payable by the Company for the guaranteed residual value;
the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
payments of penalties for terminating the lease if the lease term reflects the Company exercising that option.The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined the
Company’s incremental borrowing rate is applied.Interest expenses incurred on the lease liabilities over the term of the relevant lease are calculated by the Company based on a
fixed periodic interest rate and recognized in the current profit or loss or the cost of the related assets.Variable lease payments excluded from the measurement of lease liabilities are charged to profit or loss in the period when they
are incurred or included in the cost of related assets.After the commencement date of the lease term the Company will re-measure the lease liabilities and adjust relevant right-of-use
assets in one of the following cases and charge the difference to the current profit or loss if the carrying amount of the right-of-use
assets is decreased to zero but that of the lease liabilities needs to be deducted further:
When there is a change in the assessment of a purchase option lease renewal option or termination option or the actual exercise of
the aforementioned options is not consistent with the original assessment the Company will re-measure the lease liabilities at the
present value of the modified lease payments discounted by using the revised discount rate; or
When there is a change in the in-substance fixed payments the expected payable for the guaranteed residual value or the index or
rate used to determine the lease payments the Company will re-measure the lease liabilities at the present value of the modified
lease payments discounted by using the original discount rate. However if the change in the lease payments is caused by the
fluctuation of the floating interest the present value shall be discounted by using the revised discount rate.
(3) Short-term leases and leases of low-value assets
210Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term leases and leases of low-value
assets and recognize in the current profit or loss or the cost of the related assets payments associated with short-term leases and
leases of low-value assets on a straight-line basis over the term of the relevant lease. Short-term leases are leases with a lease term
of 12 months or less without a purchase option at the commencement date of leases. Leases of low-value assets are leases for
which the single leased asset is of low value when it is brand new. The Company classifies leases for individual lease assets with a
fair value of no more than RMB 40000 when new as low-value asset leases. Lease of an asset that is sub-leased or that is expected
to be sub-leased by the Company is not included in the lease of low-value assets.
(4) Lease modification
The Company accounts for a lease modification as a separate lease if both of the following conditions exist:
The modification has increased the scope of the lease by adding the right to use one or more leased assets; and
The consideration for the lease increases equals to the standalone price for the increase in scope of lease and any appropriate
adjustments to that standalone price to reflect the circumstances of the particular contract.For a modification that is not accounted for as a separate lease at the effective date of the modification the Company will allocate
the consideration in the modified contract determine the lease term of the modified lease and re-measure the lease liabilities at the
present value of the modified lease payments discounted by using the revised discount rate.For modifications that decrease the scope of the lease or shorten the lease term the Company decreases the carrying amount of the
right-of-use asset accordingly and recognizes a gain or loss arising from the partial or full termination of the lease into the current
profit or loss. For other modifications resulting in a re-measurement of lease liabilities the Company makes a corresponding
adjustment to the carrying amount of right-of-use assets.
(2) Accounting Treatment Method for Lessors Leasing
At the commencement date of the lease the Company classifies leases as finance leases and operating leases. Finance leases refer
to the leases to which the Company has transferred substantially all the risks and rewards of ownership of the leased assets
regardless of whether the ownership has transferred or not. All other leases are classified as operating leases. The Company when
acting as a sub-lease lessor classifies the sub-leases based on the right-of-use assets arising from the original leases.
(1) Accounting treatment for operating lease
Rent receipts from operating lease are recognized as rental income on a straight-line basis over the term of the relevant lease.Initial direct costs related to operating lease are capitalized when incurred and are allocated to profit or loss on the same basis as
rental income over the lease term. Variable lease payments not included in the rent receipts are recognized in profit or loss when
incurred actually. An operating lease if modified is accounted for as a new lease from the effective date of the modification with
receipts in advance or rent receivables related to the lease before the modification recognized as the rent receipts of the new lease.
(2) Accounting treatment for finance lease
At the commencement date of the lease the Company recognizes finance lease receivables and derecognizes assets held under
finance leases. Lease receivables are presented at an amount equal to the net investment in the lease for the initial measurement.The net investment in the lease is the sum of any unguaranteed residual value and the present value of the rent receipts not
received yet as of the commencement date of the lease discounted at the interest rate implicit in the lease.Interest income over the term of the relevant lease is calculated and recognized by the Company based on a fixed periodic interestrate. The Company accounts for derecognition and impairment of finance lease receivables in accordance with Note “V. (11)Financial instruments”.Variable lease payments that are not included in the measurement of the net investment in the lease are recognized in profit or loss
when incurred actually.The Company accounts for a finance lease modification as a separate lease if both of the following conditions exist:
The modification has increased the scope of the lease by adding the right to use one or more leased assets; and
211Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The consideration for the lease increases equals to the standalone price for the increase in scope of lease and any appropriate
adjustments to that standalone price to reflect the circumstances of the particular contract.For a modification to a finance lease that is not accounted for as a separate lease the Company accounts for the modification as
follows:
If the lease would have been classified as an operating lease had the modification been in effect at the commencement date of the
lease the Company accounts for the lease modification as a new lease from the effective date of the modification and measures
the carrying amount of the leased asset as the net investment in the lease immediately before the effective date of the lease
modification; or
If the lease would have been classified as a finance lease had the modification been in effect at the commencement date of thelease the Company accounts for the lease modification in accordance with the requirements in Note “V. (11) Financial instruments- Policies on the contract modifications or re-negotiation”.
1. Sale and leaseback transactions
The Company assesses and determines whether the transfer of an asset in the sale and leaseback transactions is accounted for as a
sale of that asset pursuant to the principles stated in Note “V. (31) Revenue”.
(1) The Company as a lessee
If the transfer of an asset in the sale and leaseback transactions satisfies the requirements to be accounted for as a sale of the asset
the Company as a lessee measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying
amount of the asset that relates to the right of use retained and recognizes only the amount of any gain or loss that relates to the
rights transferred to the lessor accordingly.After the commencement date of the lease term the subsequent measurement of right-of-use assets and lease liabilities and lease
modifications are detailed in Note V (35) Leases 1 "The Company as Lessee". In the subsequent measurement of lease liabilities
arising from sale-and-leaseback transactions the Company determines that the method of determining lease payments or modified
lease payments will not result in the recognition of gains or losses related to the right-of-use obtained from the leaseback.If the transfer of an asset in the sale and leaseback transactions does not satisfy the requirements to be accounted for as a sale of
the asset the Company as a lessee continues to recognize the transferred asset and a financial liability equal to the transfer
proceeds. Please refer to Note “V. (11) Financial instruments” for accounting treatment of the financial liability.
(2) The Company as a lessor
If the transfer of an asset in the sale and leaseback transactions satisfies the requirements to be accounted for as a sale of the assetthe Company as a lessor accounts for the purchase of the asset and for the lease subject to the above policies stated in “2. TheCompany as a lessor”; and if the transfer of an asset in the sale and leaseback transactions does not satisfy the requirements to be
accounted for as a sale of the asset the Company as a lessor does not recognize the transferred asset and instead recognizes a
financial asset equal to the transfer proceeds. Please refer to Note “V. (11) Financial instruments” for accounting treatment of the
financial asset.
36. Segment Reporting
The Company determines operating segments based on its internal organizational structure management requirements and
internal reporting system and determines reportable segments based on operating segments and discloses segment information.An operating segment is a component of the Company that simultaneously meets the following conditions: (1) The component can
generate revenue and incur expenses in its ordinary activities; (2) The Company's management can regularly evaluate the operating
results of the component to decide how to allocate resources to it and assess its performance; (3) The Company can obtain
accounting information about the component's financial position operating results cash flows etc. Two or more operating
segments that have similar economic characteristics and meet certain conditions may be combined into a single operating segment.
212Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
37. Other Significant Accounting Policies and Accounting Estimates
None.
38. Key Accounting Estimates and Judgments
In the application of accounting policies the Company due to the inherent uncertainties in its operations needs to make judgments
estimates and assumptions regarding the measurement of items in the financial statements that cannot be accurately quantified.These judgments estimates and assumptions are based on the Company's management's historical experience and other relevant
factors. They affect the reported amounts of income expenses assets and liabilities as well as disclosures of contingent liabilities
at the balance sheet date. However the actual results resulting from the uncertainty of these estimates may differ from the
Company management's current estimates leading to significant adjustments to the carrying amounts of affected assets or
liabilities in the future.The Company periodically reviews these judgments estimates and assumptions on a going concern basis. Changes in accounting
estimates affect only the period of change and their impact is recognized in the period of change. If they affect both the current
period and future periods their impact is recognized in both the period of change and future periods.At the balance sheet date the Company needs to make judgments estimates and assumptions in the following significant areas of
the financial statements:
(1) Revenue Recognition
As described in Note V (31) Revenue the Company's revenue recognition involves the following significant accounting
judgments and estimates: identifying customer contracts; estimating the collectability of consideration from customers for goods
transferred; identifying performance obligations in contracts; estimating variable consideration in contracts and the amount of
cumulative revenue recognized to date that is likely to be reversed when related uncertainties are resolved; determining whether
significant financing components exist in contracts; estimating the standalone selling price of each distinct performance obligation
in contracts; determining whether performance obligations are satisfied over time or at a point in time; determining progress
towards satisfaction of performance obligations etc.The Company primarily relies on past experience and work to make these judgments and these significant judgments and estimate
changes may impact revenue cost of goods sold and income for the period as well as the period's financial results and may
constitute significant impacts.
(2) Leasing
* Lease Recognition
When determining whether a contract is a lease or contains a lease the Company evaluates whether there is an identified asset over
which the customer has control for a certain period. In this assessment consideration is given to the nature of the asset substantive
substitution rights and whether the customer has the right to obtain almost all of the economic benefits generated by using the
asset during that period and can direct the use of the asset.* Lease Classification
As a lessor the Company classifies leases as operating leases or finance leases. When making classifications management
analyzes and determines whether all risks and rewards related to the ownership of the leased asset have substantially transferred to
the lessee.* Lease Liabilities
As a lessee lease liabilities are initially measured at the present value of the lease payments unpaid at the commencement date of
the lease term. When measuring the present value of lease payments the Company estimates the discount rate used and the lease
term for leases with renewal or termination options. In assessing the lease term the Company considers all relevant facts and
circumstances that bring economic benefits to the Company from exercising the option including expected changes in facts and
circumstances between the commencement date of the lease term and the exercise date of the option. Different judgments and
213Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
estimates may affect the recognition of lease liabilities and right-of-use assets and subsequently impact profit or loss in subsequent
periods.
(3) Impairment of Financial Assets
The Company assesses impairments of financial instruments using the expected credit loss model which requires significant
judgments and estimates based on all reasonable and supportable information including forward-looking information. In making
such judgments and estimates the Company infers expected changes in the credit risk of debtors based on historical data combined
with changes in economic policies macroeconomic indicators industry risks external market conditions technological
environments and customer situations.
(4) Inventory Impairment Provision
In accordance with the inventory accounting policy the Company recognizes inventory impairment provisions for inventory with a
cost higher than net realizable value and for obsolete and slow-moving inventory. Inventory impairment to net realizable value is
based on an assessment of the salability of inventory and its net realizable value. Identifying inventory impairment requires
management to make judgments and estimates based on obtaining conclusive evidence and considering factors such as the purpose
of holding inventory and the impact of post-balance sheet events. Differences between actual results and original estimates will
affect the carrying value of inventory and the recognition or reversal of inventory impairment provisions during the period when
estimates are changed.
(5) Fair Value of Financial Instruments
For financial instruments with no active market the Company determines their fair value using various valuation methods
including discounted cash flow model analysis etc. When valuing the Company estimates aspects such as future cash flows credit
risks market volatility and correlations and selects appropriate discount rates. These related assumptions have uncertainties and
changes in them will affect the fair value of financial instruments. For equity instrument investments or contracts with quoted
prices the Company does not consider cost as the best estimate of their fair value.
(6) Impairment of Long-term Assets
The Company assesses whether there are indications of impairment for non-financial assets other than financial assets as of the
balance sheet date. For intangible assets with uncertain useful lives impairment tests are performed when there are indicators of
impairment in addition to annual impairment tests. For other non-financial assets other than financial assets impairment tests are
conducted when there are indications that their carrying amounts may not be recoverable.When the carrying amount of an asset or asset group exceeds its recoverable amount which is the higher of its fair value less costs
to sell and the present value of expected future cash flows an impairment is recognized.The net amount after deducting costs to sell from fair value is determined by reference to the sale agreement price of similar assets
in fair transactions or observable market prices minus incremental costs directly attributable to the disposal of the asset.In estimating the present value of expected future cash flows significant judgments are made regarding the production selling
price relevant operating costs of the asset (or asset group) and the discount rate used in the calculation of present value. The
Company uses all relevant information available to estimate recoverable amount including forecasts of production selling prices
and relevant operating costs based on reasonable and supportable assumptions.Goodwill is tested for impairment at least annually. This requires estimating the present value of future cash flows of the cash-
generating units or groups of cash-generating units to which goodwill is allocated. In estimating the present value of future cash
flows the Company needs to forecast the future cash flows generated by the cash-generating units or groups of cash-generating
units and select appropriate discount rates to determine the present value of future cash flows.
(7) Depreciation and Amortization
The Company depreciates and amortizes investment properties property plant and equipment and intangible assets using the
straight-line method over their estimated useful lives after considering their residual values. The Company periodically reviews the
useful lives to determine the amount of depreciation and amortization expense to be recognized in each reporting period. The
214Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
useful lives are determined by the Company based on past experience with similar assets and anticipated technological changes. If
there is a significant change in previous estimates depreciation and amortization expenses will be adjusted in future periods.
(8) Deferred Tax Assets
The Company recognizes deferred tax assets for all unused tax losses to the extent that it is probable that sufficient taxable profits
will be available to offset the losses. This requires significant judgment by management to estimate the timing and amount of
future taxable profits considering tax planning strategies to determine the amount of deferred tax assets to be recognized.
(9) Income Taxes
In the normal course of business there is inherent uncertainty in the final tax treatment and calculation of certain transactions.Approval from the tax authorities is required for some items to be deducted before tax. If the final determination of these tax
matters differs from the originally estimated amount the difference will affect the current income tax and deferred income tax
recognized in the period of final determination.
39. Changes in Significant Accounting Policies and Accounting Estimates
(1) Changes in Significant Accounting Policies
□Applicable □N/A
In RMB
Content and reasons for changes in Names of significant affected items in
accounting policies. the financial statements. Amount of impact
Implementation of Accounting Standards
Interpretation No. 17 See Other Notes
Implementation of Provisional
Regulations on Accounting Treatment for See Other Notes See Other Notes
Enterprise Data Resources
Implementation of Accounting Standards
Interpretation No. 18 See Other Notes
(1) Implementation of Accounting Standards Interpretation No. 17
The Ministry of Finance released Accounting Standards Interpretation No. 17 (CK [2023] No. 21 hereinafter referred to as
"Interpretation No. 17") on October 25 2023.* Classification of Current Liabilities and Non-current Liabilities
Interpretation No. 17 clarifies that:
A liability shall be classified as a current liability if the enterprise does not have the substantive right to defer settlement of the
liability for more than one year after the balance sheet date.For liabilities arising from loan arrangements the enterprise's right to defer settlement of the liability for more than one year after
the balance sheet date may depend on whether the enterprise has complied with the conditions stipulated in the loan arrangement
(hereinafter referred to as contractual conditions). In assessing whether the substantive right to defer debt settlement exists the
enterprise shall only consider the contractual conditions that should be complied with on or before the balance sheet date and shall
not consider the contractual conditions that should be complied with after the balance sheet date.Settlement of a liability when classifying the liquidity of the liability refers to the enterprise discharging the liability by
transferring cash other economic resources (such as goods or services) or the enterprise's own equity instruments to the
counterparty. If the terms of a liability result in the enterprise settling the liability by delivering its own equity instruments at the
option of the counterparty and the enterprise classifies such option as an equity instrument in accordance with the provisions of
"Accounting Standard for Business Enterprises No. 37 - Presentation of Financial Instruments" and separately recognizes it as an
equity component of a compound financial instrument then such terms do not affect the liquidity classification of the liability.This interpretation shall be effective from January 1 2024. The implementation of this provision has not had a significant impact
on the Company's financial position and operating results.
215Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
* Disclosure of Supplier Financing Arrangements
Interpretation No. 17 requires enterprises to disclose information related to supplier financing arrangements in the notes to help
financial statement users assess the impact of these arrangements on the enterprise's liabilities cash flows and exposure to
liquidity risk. The impact of supplier financing arrangements should also be considered when identifying and disclosing liquidity
risk information. This disclosure provision applies only to supplier financing arrangements. Supplier financing arrangements are
transactions with the following characteristics: one or more financing providers provide funds to pay for the enterprise's amounts
due to its suppliers and the enterprise agrees to repay the financing provider on or after the date its suppliers receive the funds
according to the terms and conditions of the arrangement. Compared with the original payment due date the supplier financing
arrangement extends the enterprise's payment period or accelerates the enterprise's suppliers' collection period.This interpretation shall be effective from January 1 2024. When first implementing this interpretation enterprises are not
required to disclose comparable period information and some opening balance information. The implementation of this provision
has not had a significant impact on the Company's financial position and operating results. The implementation of this regulation
did not have a material impact on the Company's financial position and operating results.* Accounting Treatment of Sale-and-Leaseback Transactions
Interpretation No. 17 provides that when a lessee subsequently measures a lease liability arising from a sale-and-leaseback
transaction the method of determining lease payments or modified lease payments shall not result in the recognition of gains or
losses related to the right-of-use obtained from the leaseback. When first implementing this provision enterprises shall
retrospectively adjust sale-and-leaseback transactions conducted after the initial implementation date of "Accounting Standard for
Business Enterprises No. 21 - Leases".This interpretation shall be effective from January 1 2024 and allows enterprises to implement it earlier than the release year. The
Company implemented this provision from January 1 2024 and the implementation of this provision has not had a significant
impact on the Company's financial position and operating results.
(2) Implementation of Provisional Regulations on Accounting Treatment for Enterprise Data Resources
The Ministry of Finance released the "Provisional Regulations on Accounting Treatment for Enterprise Data Resources" (CK
[2023] No. 11) on August 1 2023 which is applicable to the relevant accounting treatment of data resources that are confirmed as
intangible assets or inventories in accordance with relevant provisions of enterprise accounting standards as well as data resources
that are legally owned or controlled by the enterprise are expected to bring economic benefits to the enterprise but do not meet the
conditions for asset recognition and are not recognized as assets and sets out specific requirements for the disclosure of data
resources.This provision shall be effective from January 1 2024 and enterprises shall adopt the prospective method. Relevant expenditures
for data resources that have been expensed and included in profit or loss before the effective date of this provision shall not be
adjusted. The implementation of this regulation did not have a material impact on the Company's financial position and operating
results.
(3) Implementation of the Provisions on "Accounting Treatment for Guarantee-Type Quality Assurance Not Constituting a Single
Performance Obligation" in Accounting Standards Interpretation No. 18
The Ministry of Finance released Accounting Standards Interpretation No. 18 (CK [2024] No. 24 hereinafter referred to as
"Interpretation No. 18") on December 6 2024. This interpretation is effective from the date of issuance and allows enterprises to
implement it earlier than the release year.Interpretation No. 18 stipulates that when accounting for estimated liabilities arising from guarantee-type quality assurance that
does not constitute a single performance obligation in accordance with the relevant provisions of "Accounting Standard for
Business Enterprises No. 13 - Contingent Events" the estimated liability amount shall be debited to "Cost of Main Business"
"Cost of Other Businesses" etc. and credited to "Estimated Liabilities" and shall be correspondingly presented in "Operating
Cost" in the income statement and "Other Current Liabilities" "Non-current Liabilities Due within One Year" "Estimated
Liabilities" etc. in the balance sheet.
216Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
When an enterprise first implements the content of this interpretation if the guarantee-type quality assurance was originally
accrued and included in "Sales Expenses" etc. it shall be retrospectively adjusted as an accounting policy change. The Company
did not accrue guarantee-type quality assurance in 2023 so the impact on 2023 is 0. The main impact of the Company's
implementation of this provision from 2024 is as follows:
Content and Affected Consolidated Parent Companyreasons for changes
in accounting StatementItems 2024 2023 2024 2023policies.Accounting Policy Operating cost 6837433.86
Change Salesexpenses -6837433.86
(2) Changes in Significant Accounting Estimates
□Applicable □N/A
(3) Adjustments to Relevant Items in the Opening Financial Statements for the First Year of Implementation of New
Accounting Standards Starting from 2024
□Applicable □N/A
40. Others
None.VI. Taxes
1. Major Categories of Taxes and Tax Rates
Tax category Taxation basis Tax rate
VAT payable is the output tax based on
the sales of goods and taxable labor
Value added tax income calculated pursuant to the tax 20% 19% 18% 13% 10% 9% 8%
law net of the input tax that is allowed to 7% 6% 5% 3% 0%
be deducted in the current period
Urban maintenance and construction tax Subject to the actual payment of VAT andconsumption tax 7% 5%
Enterprise income tax Subject to the taxable income amount 30% 25% 21% 20% 19% 17%16.5% 15% 10% 0%
Disclosure of taxpayers (if any) with different rates of enterprise income tax:
Taxpayer Rate of enterprise income tax
Luxshare Precision Industry Co. Ltd. 15
Xiexun Electronic (Ji’an) Co. Ltd. 15
ASAP Technology (Jiangxi) Co. Ltd. 15
Lanto Electronic Limited 15
Bozhou Lanto Electronic Limited 15
Huzhou Jiuding Electronic Co. Ltd. 15
Luxshare Automation (Jiangsu) Ltd. 15
Merry Electronics (Suzhou) Co. Ltd. 15
Luxshare Electronic Technology (Kunshan) Co. Ltd. 15
217Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Yongxin County Boshuo Electronics Co. Ltd. 15
Luxshare Precision Industry (Chuzhou) Co. Ltd. 15
Merry Electronics (Huizhou) Co. Ltd. 15
Fujian JKWiring Systems Co. Ltd.. 15
Jiangxi Luxshare Intelligent Manufacture Co. Ltd. 15
Jiangxi ASAP Electronics Co. Ltd. 15
Suzhou Luxshare Technology Co. Ltd. 15
Suining Luxshare Precision Industry Co. Ltd. 15
Luxshare Precision Industry (Baoding) Co. Ltd. 15
Shanxi Luxshare Precision Industry Co. Ltd. 15
Dongguan Xuntao Electronics Co. Ltd. 15
Luxshare iTech (Zhejiang) Co. LTD. 15
Shenzhen Luxshare Acoustics Technology Ltd. 15
Luxshare Precision Industry (Enshi) Co. Ltd. 15
Luxshare Precision Limited Note 1
Luxshare Precision Technology Co. Ltd. Note 1
Taiwan Luxshare Precision Limited 20
ICT-LANTO LIMITED(HK) Note 1
Luxshare Standard Limited (HK) Note 1
Luxshare Technologies Limited Note 1
LUXSHAREICT (Japan) Note 2
Yunding Technology Co. Ltd. Note 1
Luxis Technology Limited Note 1
Luxshare Precision Investment Co. Ltd. Note 1
SpeedTech Corp. 20
Luxshare India Private Limited 25
Luxshare Lanto India Private Limited 25
LuxshareICT Inc. Note 3
LUXSHARE-ICT EUROPE LIMITED 19
ICT Legend S. DE R.L. DE C.V. 30
Luxshare Technologies Mexico S.de.R.L.de c.v. 30
Linkz Cables Mexico S.deR.L. de C.V. 30
Suk kunststofftechnik GmbH 15
Korea LuxshareICT Co.Ltd Note 4
Luxshare-ICT (Vietnam) Limited 10
Luxshare-ICT (Van Trung) Company Limited 10
Luxshare-ICT (Nghe An) Limited 0
Caseteck Singapore PTE.LTD. 17
Singapore Luxshare Co. Ltd. 17
Xuancheng Luxshare Precision Industry Co. Ltd. 15
TIME Interconnect Technology (Huizhou) Limited 15
Huaxun Industrial (Suzhou) Co. Ltd. 15
Luxis Precision Intelligent Manufacturing (Kunshan) Co. Ltd. 15
Luxshare Precision Industry (Jiangsu) Co. Ltd. 15
Luxis Technology (Kunshan) Co. Ltd. 15
Dongguan Luxshare Technology Co. Ltd. 15
Luxshare Precision Accessory (Suzhou) Ltd. 15
Luxshare Precision Industry (Yancheng) Co. Ltd. 15
Luxshare Rechuan Technology (Huizhou) Co. Ltd. 15
TIME Interconnect Technology Limited 0
Time Interconnect Investment Limited 0
TIME Interconnect (HK) Limited 16.5
TIME Interconnect Industrial Co. Ltd. 16.5
TIME Interconnect Industrial Co. Ltd. 16.5
Huaxun Hong Kong Limited 0
Huaxun Cable Co. Ltd. Note 1
218Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Linkz International Limited 16.5
HOVER MANUFACTURING COMPANY LIMITED 16.5
TIME Interconnect Server Technology Co. Ltd. 16.5
Time Interconnect America Inc Note 3
Luxshare Technologies InternationalInc. Note 3
DACHUANG PRECISION LIMITED 16.5%
Time Interconnect MedTech UK Limited 19%
Da Chuang Investment Limited 0
Stellar Prosperity LLC Note 3
Time Interconnect Singapore Pte. Ltd. 17%
LUXSHARE TECHNOLOGIES SINGAPORE PTE.LTD. 17%
Luxcase Precision Co. Ltd. Note 1
Luxcase Korea Co. Ltd. Note 4
Cosmic M.E. Inc. Note 2
Luxshare Precision Industry (Yancheng) Co. Ltd. 15
Luxshare Rechuan Technology (Huizhou) Co. Ltd. 15
Luxshare Technology (Vietnam) Co. Ltd. 0
Other subsidiaries 25
2. Tax Incentives
Corporate income tax
1. The Company was identified as a high-tech enterprise by the Science Technology and Innovation Commission of Shenzhen
Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration on December
26 2024 with the High-tech Enterprise Certificate No. GR202444202119 valid for three years. As provided for in the Notice by
the Ministry of Finance and the State Administration of Taxation on Preferential Policies for Enterprise Income Taxes Related to
Enterprises’ Technological Innovation and the Notice by the State Administration of Taxation on Issues Concerning the
Implementation of Preferential Enterprise Income Taxes for High-tech Enterprises the Company enjoys an enterprise income tax
of 15% for 2023.
2. The subsidiary Xiexun Electronic (Ji’an) Co. Ltd. (“Ji’an Xiexun”) was identified as a high-tech enterprise by the Science and
Technology Department of Jiangxi Province Jiangxi Provincial Finance Bureau and Jiangxi Provincial Tax Service State
Taxation Administration on November 22 2023 with the High-tech Enterprise Certificate No. GR202336001430 valid for three
years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it enjoys an
enterprise income tax rate of 15% for 2024.
3. The subsidiary ASAP Technology (Jiangxi) Co. Ltd. (“ASAP Jiangxi”) was identified as a high-tech enterprise by the Science
and Technology Department of Jiangxi Province Jiangxi Provincial Finance Bureau and Jiangxi Provincial Tax Service State
Taxation Administration on December 14 2022 with the High-tech Enterprise Certificate No. GR202236001286 valid for three
years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it enjoys an
enterprise income tax rate of 15% for 2024.
4. The subsidiary Lanto Electronic Limited (“Lanto Kunshan”) was identified as a high-tech enterprise by the Jiangsu Provincial
Department of Science and Technology Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service State
Taxation Administration on November 6 2023 with the High-tech Enterprise Certificate No. GR202332005205 valid for three
years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it enjoys an
enterprise income tax rate of 15% for 2024.
5. The sub-subsidiary Bozhou Lanto Electronic Limited (“Lanto Bozhou”) was identified as a high-tech enterprise by the Anhui
Provincial Department of Science and Technology Department of Finance of Anhui Province and Anhui Provincial Tax Service
State Taxation Administration on October 19 2024 with the High-tech Enterprise Certificate No. GR202434000453 valid for
219Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it
enjoys an enterprise income tax rate of 15% for 2024.
6. The sub-subsidiary Huzhou Jiuding Electronic Co. Ltd. (“Huzhou Jiuding”) was identified as a high-tech enterprise by the
Department of Science and Technology of Zhejiang Province Zhejiang Provincial Department of Finance Zhejiang Provincial
Tax Service State Taxation Administration and Local Taxation Bureau of Zhejiang Province on December 8 2023 with the High-
tech Enterprise Certificate No. GR202333009628 valid for three years. According to relevant provisions of the national high-tech
enterprise income tax preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
7. The subsidiary Luxshare Automation (Jiangsu) Ltd. (“Luxshare Automation Jiangsu”) was identified as a high-tech enterprise
by the Jiangsu Provincial Department of Science and Technology Department of Finance of Jiangsu Province and Jiangsu
Provincial Tax Service State Taxation Administration on November 19 2024 with the High-tech Enterprise Certificate No.得
GR202432006579 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
8. The sub-subsidiary Merry Electronics (Suzhou) Co. Ltd. (“Meite Suzhou”) was identified as a high-tech enterprise by the
Jiangsu Provincial Department of Science and Technology Department of Finance of Jiangsu Province and Jiangsu Provincial
Tax Service State Taxation Administration on November 6 2023 with the High-tech Enterprise Certificate No.GR202332001066 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
9. The subsidiary Luxshare Electronic Technology (Kunshan) Co. Ltd. (“Luxshare Electronic Kunshan”) was identified as a
high-tech enterprise by the Jiangsu Provincial Department of Science and Technology Department of Finance of Jiangsu Province
and Jiangsu Provincial Tax Service State Taxation Administration on November 9 2024 with the High-tech Enterprise Certificate
No. GR202432003413 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
10. The sub-subsidiary Yongxin County Boshuo Electronics Co. Ltd. (“Yongxin Boshuo”) was identified as a high-tech
enterprise by the Science and Technology Department of Jiangxi Province Jiangxi Provincial Finance Bureau and Jiangxi
Provincial Tax Service State Taxation Administration on December 8 2023 with the High-tech Enterprise Certificate No.GR202336002349 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
11. The subsidiary Luxshare Precision Industry (Chuzhou) Co. Ltd. (“Luxshare Chuzhou”) was identified as a high-tech
enterprise by the Anhui Provincial Department of Science and Technology Department of Finance of Anhui Province and Anhui
Provincial Tax Service State Taxation Administration on October 18 2022 with the High-tech Enterprise Certificate No.GR202234002571 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
12. The sub-subsidiary Merry Electronics (Huizhou) Co. Ltd. (“Merry Huizhou”) was identified as a high-tech enterprise by the
Department of Science and Technology of Guangdong Province Department of Finance of Guangdong Province and Guangdong
Provincial Tax Service State Taxation Administration on November 8 2024 with the High-tech Enterprise Certificate No.GR202444005192 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
13. The subsidiary Fujian JK Wiring Systems Co. Ltd. (“Fujian JK”) was identified as a high-tech enterprise by the Fujian
Provincial Department of Science and Technology Fujian Provincial Department of Finance and Fujian Provincial Tax Service
State Taxation Administration on December 28 2023 with the High-tech Enterprise Certificate No. GR202335000667 valid for
three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it
enjoys an enterprise income tax rate of 15% for 2024.
14. The subsidiary Jiangxi Luxshare Intelligent Manufacture Co. Ltd. (“Smart Manufacturing Jiangxi”) was identified as a high-
tech enterprise by the Science and Technology Department of Jiangxi Province Jiangxi Provincial Finance Bureau and Jiangxi
220Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Provincial Tax Service State Taxation Administration on October 28 2024 with the High-tech Enterprise Certificate No.GR202436000547 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
15. The sub-subsidiary Jiangxi ASAP Electronics Co. Ltd. (“ASAP Electronics”) was identified as a high-tech enterprise by the
Science and Technology Department of Jiangxi Province Jiangxi Provincial Finance Bureau and Jiangxi Provincial Tax Service
State Taxation Administration on October 28 2024 with the High-tech Enterprise Certificate No. GR202436000704 valid for
three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it
enjoys an enterprise income tax rate of 15% for 2024.
16. The sub-subsidiary Suzhou Luxshare Technology Co. Ltd. (“Suzhou Luxshare Technology”) was identified as a high-tech
enterprise by the Jiangsu Provincial Department of Science and Technology Department of Finance of Jiangsu Province and
Jiangsu Provincial Tax Service State Taxation Administration on November 6 2024 with the High-tech Enterprise Certificate No.
202432000635 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential
policies in China it enjoys an enterprise income tax rate of 15% for 2024.
17. The sub-subsidiary Suining Luxshare Precision Industry Co. Ltd. (“Luxshare Suining”) is eligible for the tax policy on
enterprise income tax for the western region as stipulated in the Announcement of the Ministry of Finance the State
Administration of Taxation and the National Development and Reform Commission on Continuing the Policy of Enterprise
Income Tax for the Western Region Development" From January 1 2021 to December 31 2030 encouraged industry enterprises
established in the western region are subject to a reduced enterprise income tax rate of 15%. Suining Luxshare Precision Industry
Co. Ltd. is located in Suining City Sichuan Province. Following the enterprise income tax policy for the western region the
Company enjoys and declares taxes according to the encouraged industry enterprises in the western region. In the fiscal year 2024
the enterprise income tax is levied at a rate of 15%. Suining Luxshare was identified as a high-tech enterprise by the Science &
Technology Department of Sichuan Province Sichuan Provincial Finance Department and Sichuan Provincial Tax Service State
Taxation Administration on November 5 2024 with the High-tech Enterprise Certificate No. GR202451000551 valid for three
years.
18. The sub-subsidiary Luxshare Precision Industry (Baoding) Co. Ltd. (“Luxshare Baoding”) was identified as a high-tech
enterprise by the Hebei Provincial Department of Science and Technology Hebei Provincial Finance Bureau and Hebei Provincial
Tax Service State Taxation Administration on November 22 2022 with the High-tech Enterprise Certificate No.GR202213002272 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
19. The sub-subsidiary Shanxi Luxshare Precision Industry Co. Ltd. (“Luxshare Shanxi”) was identified as a high-tech enterprise
by the Shanxi Science and Technology Department Shanxi Provincial Department of Finance and Shanxi Provincial Tax Service
State Taxation Administration on December 12 2022 with the High-tech Enterprise Certificate No. GR202214000862 valid for
three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China it
enjoys an enterprise income tax rate of 15% for 2024.
20. The sub-subsidiary Dongguan Xuntao Electronics Co. Ltd. (“Dongguan Xuntao”) was identified as a high-tech enterprise by
the Department of Science and Technology of Guangdong Province Department of Finance of Guangdong Province and
Guangdong Provincial Tax Service State Taxation Administration on December 22 2022 with the High-tech Enterprise
Certificate No. GR202244014095 valid for three years. According to relevant provisions of the national high-tech enterprise
income tax preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
21. The subsidiary Kunshan Luxis Precision Industry Co. Ltd. (“Luxis Kunshan”) was identified as a high-tech enterprise by the
Jiangsu Provincial Department of Science and Technology Department of Finance of Jiangsu Province and Jiangsu Provincial
Tax Service State Taxation Administration on November 6 2023 with the High-tech Enterprise Certificate No.GR202332000097 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
221Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
22. The subsidiary Luxshare iTech (Zhejiang) Co. Ltd. (“iTech Zhejiang”) was identified as a high-tech enterprise by the
Department of Science and Technology of Zhejiang Province Zhejiang Provincial Department of Finance and Zhejiang
Provincial Tax Service State Taxation Administration on December 8 2023 with the High-tech Enterprise Certificate No.GR202333005916 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
23. The subsidiary Shenzhen Luxshare Acoustics Technology Ltd. (“Luxshare Electroacoustic”) was identified as a high-tech
enterprise by the Science Technology and Innovation Commission of Shenzhen Municipality Finance Bureau of Shenzhen
Municipality and Shenzhen Tax Service State Taxation Administration on December 12 2023 with the High-tech Enterprise
Certificate No. GR202344206957 valid for three years. According to relevant provisions of the national high-tech enterprise
income tax preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
24. The subsidiary Enshi Luxshare Precision Industry Co. Ltd. (“Luxshare Enshi”) was qualified for tax reduction in accordance
with the Announcement on the Continuation of Preferential Enterprise Income Tax Policies in the Western Region of China issued
by the Ministry of Finance the State Taxation Administration and the National Development and Reform Commission which
provided that enterprise income tax should be levied at a reduced rate of 15% on enterprises engaged in the encouraged industries
in the western region for the period from January 1 2021 to December 31 2030. Since it is located in Enshi Tujia and Miao
Autonomous Prefecture Hubei Province where enterprises can apply the preferential enterprise income tax policies in the Western
Region of China it enjoys an enterprise income tax rate of 15% for 2024. Enshi Luxshare on November 29 2022 was recognized
as a high-tech enterprise by the Hubei Provincial Department of Science and Technology Hubei Provincial Department of Finance
and the State Taxation Bureau of Hubei Province. It obtained the certificate number GR202242006527 for high-tech enterprise
certification valid for three years.
25. The sub-subsidiary Xuancheng Luxshare Precision Industry Co. Ltd. (“Luxshare Xuancheng”) was identified as a high-tech
enterprise by the Anhui Provincial Department of Science and Technology Department of Finance of Anhui Province and Anhui
Provincial Tax Service State Taxation Administration on November 28 2024 with the High-tech Enterprise Certificate No.GR202134004975 valid for three years. According to relevant provisions of the national high-tech enterprise income tax
preferential policies in China it enjoys an enterprise income tax rate of 15% for 2024.
26. According to Article 6 of Circular No. 151/2014/TT-BTC issued by the Ministry of Finance on October 10 2014 Luxshare-
ICT (Vietnam) Limited (“Luxshare Vietnam”) will be eligible for exemption from enterprise income tax for the first two years and
50% reduction for the next four years if realizing the investment plan in the industrial park. Among them Zone E obtained an
Official Reply No. 619/CT-TTHT from the Tax Bureau of Bac Giang Province on February 28 2018 confirming that Zone E has
obtained the qualifications of enjoying exemption from enterprise income tax for the first two years and 50% reduction for the next
four years and Luxshare Vietnam paid enterprise income tax at a 10% tax rate; and Zones T/U1 obtained an Official Reply No.
6555/CTBGI-TTHT from the Tax Bureau of Bac Giang Province on November 23 2020 confirming that Zones T and U1 have
obtained the qualifications of enjoying exemption from enterprise income tax for the first two years and 50% reduction for the next
four years and Luxshare Vietnam paid the enterprise income tax at a 10% tax rate in 2024.
27. According to the provisions of Article 14.1 of the Decree No. 85/2007/Q?-TTg issued on June 11 2007 any domestic and
foreign organization and individual investing in any project based in the Southeast Economic Zone of Nghe An will enjoy the
enterprise income tax rate of 10% for 15 years from the date when the investment project starts operation and exemption from
enterprise income tax for 4 years from the date of taxable income and 50% reduction for the next 9 years. Luxshare-ICT (Nghe An)
Limited (“Luxshare Nghe An”) obtained the Official Reply No. 2417/CT-TTHT from the Tax Bureau of Nghe An Province on
July 1 2020 confirming that Luxshare Nghe An paid the enterprise income tax at a 0% tax rate in 2024.
28. According to Article 6 of Circular No. 151/2014/TT-BTC issued by the Ministry of Finance on October 10 2014 Luxshare-
ICT (Van Trung) Company Limited (“Luxshare Van Trung”) is eligible for exemption from enterprise income tax for the first two
years and 50% reduction for the next four years if realizing the investment plan in the industrial park and obtained an Official
222Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Reply No. 5675/CT-TTHT from the Tax Bureau of Bac Giang Province on October 13 2020 confirming that Luxshare Van Trung
paid the enterprise income tax at a 10% tax rate in 2024.On March 20 2023 the Company received official document 1534/GXN-BCT from the Industrial and Commercial Bureau
confirming the preferential treatment for auxiliary industry products 4 exempt 9 halved: 2020-2021-2023-2024: Corporate Income
Tax (CIT) 0%; 2025-2032: CIT 10% reduced by half
The discount not received is regional: 2 exempt 4 halved.
29. Dongguan Huarong Communications Technology Co. Ltd. was identified as a high-tech enterprise by the Department of
Science and Technology of Guangdong Province Department of Finance of Guangdong Province and Guangdong Provincial Tax
Service State Taxation Administration on December 19 2022 with the High-tech Enterprise Certificate No. GR202244004084
valid for three years. As provided for in the Notice by the Ministry of Finance and the State Administration of Taxation on
Preferential Policies for Enterprise Income Taxes Related to Enterprises’ Technological Innovation and the Notice by the State
Administration of Taxation on Issues Concerning the Implementation of Preferential Enterprise Income Taxes for High-tech
Enterprises the Company enjoys an enterprise income tax of 15% for 2023.
30. Shenzhen Huarong Technology Co. Ltd. was identified as a high-tech enterprise by the Science Technology and Innovation
Commission of Shenzhen Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration on December 26 2022 with the High-tech Enterprise Certificate No. GR202232008533 valid for three years. As
provided for in the Notice by the Ministry of Finance and the State Administration of Taxation on Preferential Policies for
Enterprise Income Taxes Related to Enterprises’ Technological Innovation and the Notice by the State Administration of Taxation
on Issues Concerning the Implementation of Preferential Enterprise Income Taxes for High-tech Enterprises the Company enjoys
an enterprise income tax of 15% for 2023.
31. TIME Interconnect Technology (Huizhou) Limited was identified as a high-tech enterprise by the Department of Science and
Technology of Guangdong Province Department of Finance of Guangdong Province and Guangdong Provincial Tax Service
State Taxation Administration on December 22 2022 with the High-tech Enterprise Certificate No. GR202244011952 valid for
three years. As provided for in the Notice by the Ministry of Finance and the State Administration of Taxation on Preferential
Policies for Enterprise Income Taxes Related to Enterprises’ Technological Innovation and the Notice by the State Administration
of Taxation on Issues Concerning the Implementation of Preferential Enterprise Income Taxes for High-tech Enterprises the
Company enjoys an enterprise income tax of 15% for 2023.
32. Dongguan Luxshare Technology Co. Ltd. was certified as a high-tech enterprise by the Department of Science and
Technology of Guangdong Province the Department of Finance of Guangdong Province and the Guangdong Provincial Taxation
Bureau of the State Administration of Taxation on November 6 2023. It obtained the High-tech Enterprise Certificate with No.GR202332004181 valid for three years. According to the Notice of the Ministry of Finance and the State Administration of
Taxation on Enterprise Income Tax Preferential Policies for Enterprise Technological Innovation and the Notice of the State
Administration of Taxation on Issues Concerning the Implementation of Preferential Tax Policies for High-tech Enterprises the
Company paid enterprise income tax at a rate of 15% for the year 2024.
33. The subsidiary Luxis Electronic Technology (Kunshan) Co. Ltd. (hereinafter referred to as " Luxis Technology") was certified
as a high-tech enterprise by the Jiangsu Provincial Science and Technology Department the Jiangsu Provincial Finance
Department and the Jiangsu Provincial Taxation Bureau of the State Administration of Taxation on November 6 2023. It obtained
Certificate No. GR202332006405 valid for three years. According to the relevant provisions of the national policy on preferential
taxation for high-tech enterprises Lixin Technology paid enterprise income tax at a rate of 15% for the year 2024.
34. Subsidiary Luxshare Precision Industry (Yancheng) Co. Ltd. (hereinafter referred to as "Yancheng Luxshare") was recognized
as a high-tech enterprise by the Jiangsu Provincial Department of Science and Technology Jiangsu Provincial Department of
Finance and Jiangsu Provincial Tax Service of the State Taxation Administration on December 16 2024 and obtained certificate
number GR202432011857 valid for three years. In accordance with the relevant regulations on preferential income tax policies for
national high-tech enterprises Yancheng Luxshare will pay corporate income tax at a tax rate of 15% in 2024.
223Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
35. Luxshare Rechuan Technology (Huizhou) Co. Ltd. (hereinafter referred to as "Luxshare Rechuan") was recognized as a high-
tech enterprise by the Guangdong Provincial Department of Science and Technology Guangdong Provincial Department of
Finance and Guangdong Provincial Tax Service of the State Taxation Administration on November 28 2024 and obtained
certificate number GR202444006343 valid for three years. In accordance with the relevant regulations on preferential income tax
policies for national high-tech enterprises Luxshare Rechuan will pay corporate income tax at a tax rate of 15% in 2024.
36. Luxshare Technology (Vietnam) Co. Ltd. (hereinafter referred to as "Vietnam Technology") enjoys a 10% corporate income
tax rate for 15 years from the date of commencement of business operations for all investment projects in the Nghe An Southeast
Economic Zone in accordance with the provisions of Article 14 Paragraph 1 of Decree 85/2007/QD-TTg issued on June 11 2007.It is exempt from corporate income tax for 4 years from the date of taxable income and enjoys a 50% reduction in the taxable
amount for the subsequent 9 years. Luxshare-ICT (Nghe An) Limited (“Luxshare Nghe An”) obtained the Official Reply No.
2417/CT-TTHT from the Tax Bureau of Nghe An Province on July 1 2020 confirming that Luxshare Nghe An paid the enterprise
income tax at a 0% tax rate in 2024.Value-added tax:
1. On September 3 2023 the Ministry of Finance and the Taxation Bureau issued the Announcement on the Value-added Tax
Incremental Deduction Policy for Advanced Manufacturing Enterprises (Announcement No. 43 of 2023 by the Ministry of
Finance and the State Administration of Taxation). Advanced manufacturing enterprises refer to general taxpayers in the
manufacturing industry among high-tech enterprises (including their non-legal person branch institutions). From January 1 2023
to December 31 2027 advanced manufacturing enterprises are allowed to deduct 5% of the deductible input VAT amount as an
additional deduction against the payable value-added tax amount.
3. Others
Note 1. As per the tax law in Hong Kong Hong Kong adopts a territorial source principle of taxation under which only profits
which have a source in Hong Kong are taxable there while profits sourced elsewhere are not subject to Hong Kong gain tax.Luxshare Technologies Limited Luxshare Standard Limited (HK) ICT-LANTOLIMITED (HK) Luxshare Precision Limited
Luxshare Precision Technology Co. Ltd. Yunding Technology Co. Ltd. Luxis Technology Limited Luxshare Precision
Investment Co. Ltd.， Luxcase Precision Co. Ltd. and Da Chuang Investment Limited are not required to pay income tax inHong Kong.Note 2. LUXSHAREICT (Japan) and Cosmic M.E. Inc. are entitled to the graded tax rate for the capital amounting to not more
than JPY100 million. Corporate income tax (national tax): at 15% for the portion of taxable income within JPY8 million
(inclusive) and at 23.2% for the portion in excess thereof. Local corporate income tax (national tax): at 10.3% of total corporate
taxable income (national tax).Note 3. The applicable tax rate of LuxshareICT Inc (USA)， Time Interconnect America Inc Luxshare TechnologiesInternational Inc and Stellar Prosperity LLC is shown as follows:
Applicable tax rate
Income tax (federal) 21%
Local tax (state) 8.84%
Note 4. The applicable tax rate of Korea Luxshare ICT Co. Ltd is shown as follows:
Total profits Corporate tax Local tax
Less than KRW200 million 10% 10% of corporate taxable income
224Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
KWR200 million - KWR20 billion 20%
KWR20 billion - KWR300 billion 22%
Above KWR300 billion 25%
VII. Notes to Items in Consolidated Financial Statements
1. Cash and Bank Balances
In RMB
Item Closing balance Opening balance
Cash on hand 397054.85 376233.09
Bank deposit 47209722547.17 29683776087.56
Other monetary funds 1149536390.91 3935387136.86
Total 48359655992.93 33619539457.51
Including: Total amount of funds
deposited abroad 12072659854.46 4220620462.47
Other descriptions:
2. Held-for-trading Financial Assets
In RMB
Item Closing balance Opening balance
Financial assets at fair value through
profit or loss 1403110810.03 1720764175.32
Among which
Derivative financial assets 102882710.63 92485140.01
Bank wealth management 1300228099.40 1628279035.31
Among which
Total 1403110810.03 1720764175.32
Other descriptions:
3. Notes Receivable
(1) Categorized Presentation of Notes Receivable
In RMB
Item Closing balance Opening balance
Bank acceptance bill 272654650.91 254212467.87
Commercial acceptance bill 77118864.75 6860881.19
225Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Total 349773515.66 261073349.06
(2) Classification and Disclosure of Bad Debt Provision Methods
In RMB
Closing balance Opening balance
Category Book balance Bad-debt provision Book balance Bad-debt provisionBook Book
Amount Proportio Amount Provision value Amount Proportio Amount Provision valuen proportion n proportion
Among
which
Notes
receivable
for which
bad-debt 349915671.41 100.00%
142155.7349773526110362610733
provision is 5
0.04%15.6603.98100.00%30254.920.01%49.06
made by
group
Among
which
Bank
Acceptance 2726546 77.92% 2726546 2542124 2542124
Bill 50.91 50.91 67.87
97.36%67.87
Commercial
Acceptance 7726102 142155.70.50 22.08% 5 0.18%
771188668911362.64%30254.920.44%6860881
Bill 4.75 .11 .19
Total 3499156 100.00% 142155.7 0.04% 3497735 2611036 100.00% 30254.92 0.01% 261073371.41 5 15.66 03.98 49.06
If the bad-debt provision for notes receivable is made according to the general model of expected credit loss please refer to the
disclosure method of other receivables to disclose the relevant information of bad debt provision:
□Applicable □N/A
(3) Bad-Debt Provision Made Recovered or Reversed in the Current Period
Bad-debt provision in the current period:
In RMB
Amount of change in the current period
Category Openingbalance Recovery or Closing balanceProvision reversal Write-off Other
Commercial
Acceptance Bill 30254.92 111900.83 142155.75
Total 30254.92 111900.83 142155.75
Including significant amounts recovered or reversed from the current provision for bad debts:
□Applicable □N/A
(4) Notes Receivable That Have Been Endorsed or Discounted by the Company at the End of the Period
and Have Not Yet Matured on the Balance Sheet Date
In RMB
226Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Item Derecognized amount at the end of the Amount not derecognized at the end ofperiod the period
Bank acceptance bill 185108908.06
Total 185108908.06
4. Accounts Receivable
(1) Disclosure by Aging
In RMB
Aging Closing balance Opening balance
Within 1 year (inclusive) 32609451617.85 23580290365.01
Including: Not overdue 32170748865.58 23209441667.74
1 to 60 days overdue 401427444.54 341699208.94
61 to 120 days overdue 29534317.27 16518539.98
121 to 180 days overdue 3569655.75 2507628.90
181 to 365 days overdue 4171334.71 10123319.45
1 to 2 years 38076106.26 1807300.60
2 to 3 years 623701.86 1834977.79
More than 3 years 34102707.61 32175421.76
3 to 4 years 1939995.40 1186741.20
4 to 5 years 932628.29
More than 5 years 31230083.92 30988680.56
Total 32682254133.58 23616108065.16
(2) Classification and Disclosure of Bad Debt Provision Methods
In RMB
Closing balance Opening balance
Category Book balance Bad-debt provision Book balance Bad-debt provisionBook Book
Amount Proportio Amount Provision value Amount Proportion proportion n Amount
Provision value
proportion
Accounts
receivable
for which
bad-debt 6752748 6752748 6752748 6752748
provision 7.92 0.21% 7.92 100.00% 7.92 0.29% 7.92 100.00%
is made
individual
ly
Among
which
Amount
accrued 6752748 0.21% 6752748individual 7.92 7.92 100.00%
6752748
7.920.29%
6752748
7.92100.00%
ly
Provision
on an 3261472 99.79% 5362772 0.16% 3256109 2354858 4409868 2350448individual 6645.66 9.08 8916.58 0577.24 99.71% 8.17 0.19% 1889.07
basis
Among
which
227Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Group by 3261472 99.79% 5362772 0.16% 3256109 2354858 4409868 2350448aging 6645.66 9.08 8916.58 0577.24 99.71% 8.17 0.19% 1889.07
Total 32682254133.58 100.00%
12115520.37%325610923616101116261235044817.008916.588065.16100.00%76.090.47%1889.07
Provision for bad debts made individually: 67527487.92
In RMB
Opening balance Closing balance
Description
Book balance Bad-debt Bad-debt Provision Reason forprovision Book balance provision proportion provision
Entity 1 36297404.00 36297404.00 36297404.00 36297404.00 100.00% 预计无法收回
Entity 2 30988680.56 30988680.56 30988680.56 30988680.56 100.00% 预计无法收回
Entity 3 241403.36 241403.36 241403.36 241403.36 100.00% 预计无法收回
Total 67527487.92 67527487.92 67527487.92 67527487.92
Provision for bad debts made by group: 53627729.08
In RMB
Closing balance
Description
Book balance Bad-debt provision Provision proportion
Undue 32170748865.58 16085374.43 0.05%
1 to 60 days overdue 401427444.54 20071372.23 5.00%
61 to 120 days overdue 29534317.27 8860295.18 30.00%
121 to 180 days overdue 3569655.75 1427862.30 40.00%
181 to 365 days overdue 4171334.71 2085667.36 50.00%
1 to 2 years (excluding 1
year) overdue 1778702.26 1600832.03 90.00%
Over 2 years overdue 3496325.55 3496325.55 100.00%
Total 32614726645.66 53627729.08
Descriptions on basis for determining the group:
If the bad-debt provision for accounts receivable is made according to the general model of expected credit loss please refer to the
disclosure method of other receivables to disclose the relevant information of bad debt provision:
□Applicable □N/A
(3) Bad-Debt Provision Made Recovered or Reversed in the Current Period
Bad-debt provision in the current period:
In RMB
Amount of change in the current period
Category Openingbalance Recovery or Closing balanceProvision reversal Write-off Other
Accounts
receivable 111626176.09 11571804.07 9199092.15 7156328.99 121155217.00
Total 111626176.09 11571804.07 9199092.15 7156328.99 121155217.00
Including significant amounts recovered or reversed from the current provision for bad debts:
In RMB
228Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Basis for determining
Entity name Amount recovered or
the provision ratio for
reversed Reason for reversal Recovery method the original bad debtreserve and its
reasonableness
(4) Accounts Receivable with Top Five Closing Balance - By Debtor
In RMB
Closing balance of
The proportion of accounts
Closing balance of Closing balance of the total closing receivable
Entity name accounts Closing balance of accounts balance of allowance for
receivable contract assets receivable and accounts doubtful accountscontractual assets receivable and and contractual
contractual assets asset impairment
provision
Entity 1 8641029352.97 8641029352.97 26.44% 4320514.68
Entity 2 1870990453.55 1870990453.55 5.72% 935495.23
Entity 3 1778322302.87 1778322302.87 5.44% 889161.15
Entity 4 1255128272.12 1255128272.12 3.84% 627564.14
Entity 5 1140793785.46 1140793785.46 3.49% 570396.89
Total 14686264166.97 14686264166.97 44.93% 7343132.09
5. Receivables Financing
(1) Accounts Receivable Financing Classification Representation
In RMB
Item Closing balance Opening balance
Notes receivable 1106284192.29 587585009.82
Total 1106284192.29 587585009.82
(2) End-of-Period Company Endorsed or Discounted Accounts Receivable Financing Not Yet Due on the
Balance Sheet Date
In RMB
Item Derecognized amount at the end of the Amount not derecognized at the end ofperiod the period
Bank Acceptance Bill 3188626132.72
Total 3188626132.72
6. Other Receivables
In RMB
Item Closing balance Opening balance
Other receivables 916828350.56 322407052.71
Total 916828350.56 322407052.71
229Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(1) Other Receivables
1) Classification of Other Receivables by Nature of Funds
In RMB
Nature of Funds Closing balance Opening balance
Petty Cash 1267335.56 823391.43
Deposits Guarantees 112233870.80 88785715.85
Receivable Export Tax Refund 728279127.64 104916374.47
Advances 26510643.76 40590467.27
Other 56476424.53 92142220.12
Total 924767402.29 327258169.14
2) Disclosures by Aging
In RMB
Aging Closing balance Opening balance
Within 1 year (inclusive) 921840282.22 324150839.67
Including: Not overdue 909652408.69 321911620.10
1 to 60 days overdue 3882135.91 501138.07
61 to 120 days overdue 340535.25 71769.00
121 to 180 days overdue 132957.87 313632.50
181 to 365 days overdue 7832244.50 1352680.00
1 to 2 years 2347924.57 2529880.47
2 to 3 years 110331.50 100000.00
More than 3 years 468864.00 477449.00
3 to 4 years 477449.00
4 to 5 years 468864.00
Total 924767402.29 327258169.14
3) Classification and Disclosure by Bad Debt Provision Method
□Applicable □N/A
In RMB
Closing balance Opening balance
Category Book balance Bad-debt provision Book balance Bad-debt provisionBook Book
Amount Proportion Amount
Provision value Proportio Provision value
proportion Amount n Amount proportion
Provision
for Bad
Debts by 110331.5 0.01% 110331.5 100.00% 21773400 0 .03 0.67%
2177340100.00%
Individual .03
Item
Amo
ng which
Amount
accrued 110331.5 110331.5 2177340 2177340
individual 0 0.01% 0 100.00% .03 0.67% .03 100.00%
ly
Provision 9246570 99.99% 7828720 0.85% 9168283 325080870.79 .23 50.56 29.11 99.33%
26737763224070
for Bad .40
0.82%52.71
230Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Debts by
Group
Amo
ng which
Group by 9246570
aging 70.79 99.99%
78287200.85%91682833250808.2350.5629.1199.33%
26737760.82%3224070.4052.71
Total 924767402.29 100.00%
79390510.86%916828332725814851116.3224070.7350.5669.14100.00%431.48%52.71
Provision for bad debts made individually: 110331.50
In RMB
Opening balance Closing balance
Description
Book balance Bad-debtprovision Book balance
Bad-debt Provision Reason for
provision proportion provision
Entity 1 2177340.03 2177340.03
Entity 2 110331.50 110331.50 100.00%
Total 2177340.03 2177340.03 110331.50 110331.50
Provision for bad debts made by group: 7828720.23
In RMB
Closing balance
Description
Book balance Bad-debt provision Provision proportion
Undue 909652408.69 4550301.13 0.50%
1 to 60 days overdue 3882135.91 38821.36 1.00%
61 to 120 days overdue 340535.25 17026.76 5.00%
121 to 180 days overdue 132957.87 13295.79 10.00%
181 to 365 days overdue 7832244.50 1566448.90 20.00%
1 to 2 years (excluding 1
year) overdue 2347924.57 1173962.29 50.00%
Over 2 years overdue 468864.00 468864.00 100.00%
Total 924657070.79 7828720.23
Descriptions on basis for determining the group:
Provision for Bad Debts is made according to the Expected Credit Loss General Model:
In RMB
Phase I Phase II Phase III
Bad-debt provision Expected Credit Loss Lifetime Expected Lifetime Expected Total
for the Next 12 Months Credit Loss (No Credit Credit Loss (CreditImpairment Incurred) Impairment Incurred)
Balance as of January
120244851116.434851116.43
Balance as of January
1 2024 in this period
Reversal of this period 1595715.30 1595715.30
Write-down of this
period 2177340.03 2177340.03
Other changes 6860990.63 6860990.63
Balance as of
December 31 2024 7939051.73 7939051.73
Criteria for stage classification and the provision ratios for bad debt reserves
231Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Significant changes in the book balance of loss provisions for the current period
□Applicable □N/A
4) Provision Recovery or Reversal of Bad Debt Provision for the Current Period
Bad-debt provision in the current period:
In RMB
Amount of change in the current period
Category Openingbalance Recovery or Write-off or Closing balanceProvision reversal Write-down Other
Other
receivables 4851116.43 0.00 1595715.30 2177340.03 6860990.63 7939051.73
Total 4851116.43 0.00 1595715.30 2177340.03 6860990.63 7939051.73
Significant Amounts of Bad Debt Provision Reversals or Recoveries for the Current Period:
In RMB
Basis for determining
Entity name Amount recovered or
the provision ratio for
reversed Reason for reversal Recovery method the original bad debtreserve and its
reasonableness
5) Other Receivables Categorized by the End-of-period Balances of the Top Five Debtors
In RMB
The proportion of
Entity name Nature of the
the end-of-period End-of-period
Funds Closing balance Aging balance to the total balance of badamount of other debt provision
receivables.Entity 1 Receivable ExportTax Refund 728279127.64 Undue 78.75% 3641395.64
Entity 2 Advances 11333588.12 Undue 1.23% 56667.94
Entity 3 Other 8949782.28 Undue 0.97% 44748.91
Entity 4 Equity transferpayment 7832244.50
Overdue 181 days-
365 days 0.85% 1566448.90
Entity 5 Security deposit 7488619.34 Undue 0.81% 37443.10
Total 763883361.88 82.61% 5346704.49
7. Prepayments
(1) Presentation of Prepayments By Aging
In RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 384546897.15 98.81% 478716760.07 98.36%
232Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
1 to 2 years 3781553.09 0.97% 3062960.52 0.63%
2 to 3 years 119969.43 0.03% 3509779.84 0.72%
More than 3 years 752000.00 0.19% 1413440.93 0.29%
Total 389200419.67 486702941.36
Reasons for untimely settlement of prepayments in significant amount with aging over 1 year:
(2) Prepayments with Top Five Closing Balance - by Prepayment Beneficiary
Prepayment receiver Closing balance Proportion in total closingbalance of prepayments (%)
Entity 1 36694454.68 9.43
Entity 2 27770236.39 7.14
Entity 3 18616085.51 4.78
Entity 4 15000000.00 3.85
Entity 5 14835747.74 3.81
Total 112916524.32 29.01
Other descriptions:
8. Inventories
The Company needs to comply with the disclosure requirements for the real estate industry
No
(1) Classification of Inventories
In RMB
Closing balance Opening balance
Provision for Provision for
decline in value decline in value
Item of inventories or of inventories or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance cost performance cost
Raw material 8389249910.28 360585150.02 8028664760.26 7122401927.24 471624816.03 6650777111.21
Products in
process 6905615542.64 327519683.21 6578095859.43 5171213240.36 176099689.81 4995113550.55
Goods on hand 16723010243.68 520090372.92
16202919870.717873073315.3
60363208839.96
17509864475.3
4
Revolving
materials 441841240.11 441841240.11 137193748.06 137193748.06
Contract
performance cost 222913808.73 7334064.16 215579744.57 466878832.49 116430069.76 350448762.73
Goods sold 101538974.56 614732.16 100924242.40 80403021.27 1180800.02 79222221.25
Materials in
transit 45746042.34 45746042.34 27648149.64 27648149.64
Work in process 88903789.16 88903789.16 7662300.57 7662300.57
233Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
- outsourced
Total 32918819551.50 1216144002.47
31702675549.030886474534.9
331128544215.58
29757930319.3
5
(2) Provision for Decline in Value of Inventories and Provision for Impairment of Contract Performance
Cost
In RMB
Increase in the current period Decrease in the current period
Item Openingbalance Reversal or Closing balanceProvision Other write off Other
Raw material 471624816.03 154860231.75 10527290.60 270025484.46 6401703.90 360585150.02
Products in
process 176099689.81 321541935.08 2079174.92 171923420.34 277696.26 327519683.21
Goods on hand 363208839.96 432398499.98 72716939.88 347124903.38 1109003.52 520090372.92
Contract
performance 116430069.76 7280194.23 116430069.76 -53869.93 7334064.16
cost
Goods sold 1180800.02 -361043.34 205024.52 614732.16
Total 1128544215.58 915719817.70 85323405.40 905708902.46 7734533.75
1216144002.
47
Provision for inventory impairment by group
In RMB
Closing Beginning
Combination
Falling price Provision ration Provision rationname Closing balance reserves of falling price
Opening Falling price of falling price
reserve balance reserves reserve
Criteria for calculating the reserve for inventory decline price by combination
9. Non-Current Assets Maturing within One Year
In RMB
Item Closing balance Opening balance
Time deposits maturing within one year 4199154224.92 1047566017.54
Total 4199154224.92 1047566017.54
10. Other Current Assets
In RMB
Item Closing balance Opening balance
Input tax to be deducted 2472487412.50 2106402441.64
Large-amount deposit note 15006005743.99 709769171.50
Income tax prepaid 66690699.83 61578636.66
Duty forward 11310127.64 36279446.62
Other 969290.09 6048704.65
Total 17557463274.05 2920078401.07
234Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Other descriptions:
11. Investments in Other Equity Instruments
In RMB
Reasons
Gains specified asGains Loss measured at
recognized recognized accrued to Loss accrued Dividend fair value
Closing Opening as other in other
other to other income and for
Project name balance balance comprehensi comprehensi
comprehensi comprehensi
ve income in ve income in ve income at ve income at
recognized which
the current the current the end of the end of
for the changes are
period included in
period period the current the periodperiod othercomprehensi
ve income
Beijing Not for
XiaoLong
Technology 8360449.71 9049791.33 689341.62 1639550.29
short-term
trading
Co. Ltd. purposes
Beijing Hui Bo Not for
Jin Technology 9945236.33 9846904.41 98331.92 54763.67 short-term
Co. Ltd. tradingpurposes
Jingtuo Liyin Not for
Technology
(Beijing) Co. 3898804.00 3356343.85 542460.15 898804.00
short-term
trading
Ltd. purposes
Zhejiang Tony Not for
Electronics 41321637.5 172691671. 85309421.7 33097542.3 short-term
Co. Ltd. 6 36 2 1 tradingpurposes
Shenzhen Not for
Huaxida 23680000.0 28138181.8
Technology 0 2 4458181.82
26320000.0 short-term
0 trading
Co. Ltd. purposes
Asia-Pacific
Emerging Not for
Industries 529137.63 1039358.55 510220.92 202668.17 short-termVenture trading
Capital Co. purposes
Ltd.Shenzhen Not for
Shifang Sports 25029806.8 25000000.0 short-term
Technology 1 0 29806.81 29806.81 trading
Co. Ltd. purposes
Total 112765072. 249122251. 670598.88 90967166.0 34026153.1 28216982.104 32 8 2 3
Termination acknowledgement exists in the current period
In RMB
Project name Cumulative gains transferred Cumulative losses transferred Reasons for termination ofto retained earnings to retained earnings confirmation
Zhejiang Tony Electronics Disposal of partial stock
Co. Ltd. 38318775.35 equity
Disclosure of non-trading equity instrument investments for the current period.In RMB
235Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Reasons
Amount specified as
transferred measured at fair Other reasons
Recognized Cumulative Cumulative from other value and for
for transferring
Project name dividend gain loss comprehensive which changes
comprehensive
income income to are included in income to
retained other retained
earnings comprehensive earnings
income
Other descriptions:
12. Long-Term Equity Investments
In RMB
Opening balance
Opening Investm Closing
Opening balance ent Others balanceof Additio Reduce profit or compre Others Declare
Closing
balance Provisio balance ofInvestee (book provisio nal d loss hensive changes
d cash n for (book provisio
value) n for investm investm recogniz income in
dividen impairm Other value) n forimpairm ent ent ed under adjustm equity ds or ent impairm
ent equity ent profits ent
method
I. Joint ventures
Riyimao
Industri 132877 17144 10000 464521 144667
al Co. 500.01 827.70 278.75 7.50 266.46
Ltd.Subtotal 132877 17144 10000 464521 144667500.01 827.70 278.75 7.50 266.46
II. Associates
Associat 41000 34372 91383 23958 33010 - - 73436
es 64241. 608.46 08.47 950.95 07264. 60251
444323641046294428667.70783
043093.2421.08782.101.0555390.56
41000 34372 91383 23958 33010 - - 73436Subtotal 64241. 608.46 08.47 950.95 07264. 60251
444323641070783
043093.2421.08782.10
46294428667.
1.0555390.56
4232933181-74882
Total 41741. 34372 91383 23958 52092. 60251 44432 10000 36410 15776.4608.46 08.47 950.95 21.08 278.75 782.10 5 95934.
70783
050093.2401390.56
Determining the recoverable amount by subtracting the disposal costs from the fair value
□Applicable □N/A
Determining the recoverable amount by the present value of expected future cash flows
□Applicable □N/A
Reasons for the significant differences between the above information and the information used or external information used in
impairment tests in previous years
Reasons for significant differences between the information used in impairment tests in previous years and the actual situation in
the current year
236Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Other descriptions:
13. Other Non-Current Financial Assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
through profit or loss (equity 39311504.56 35700000.00
investments)
Total 39311504.56 35700000.00
Other descriptions:
14. Investment Properties
(1) Investment Properties Measured at Cost
□Applicable □N/A
In RMB
Item Buildings Land use right Construction inprogress Total
I. Original carrying
amount
1. Opening
balance 17026921.77 12072663.74 29099585.51
2. Increase in the
current period 4203894.00 9275314.80 13479208.80
(1) Purchase
(2)
Transferred from
inventories\fixed 3820060.20 9229174.50 13049234.70
assets\construction in
progress
(3) Increase
in business
combination
(4) Others 383833.80 46140.30 429974.10
3. Decrease in the
current period
(1) Disposal
(2) Other
transfer out
4. Closing balance 21230815.77 21347978.54 42578794.31
II. Accumulated
depreciation and
amortization
1. Opening
balance 5745649.27 5745649.27
237Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2. Increase in the
current period 1168328.11 1168328.11
(1) Provision
or amortization 1168328.11 1168328.11
3. Decrease in the
current period
(1) Disposal
(2) Other
transfer out
4. Closing balance 6913977.38 6913977.38
III. Provision for
impairment
1. Opening
balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
(2) Other
transfer out
4. Closing balance
IV. Book value
1. Closing book
value 14316838.39 21347978.54 35664816.93
2. Opening book
value 11281272.50 12072663.74 23353936.24
Determining the recoverable amount by subtracting the disposal costs from the fair value
□Applicable □N/A
Determining the recoverable amount by the present value of expected future cash flows
□Applicable □N/A
Reasons for the significant differences between the above information and the information used or external information used in
impairment tests in previous years
Reasons for significant differences between the information used in impairment tests in previous years and the actual situation in
the current year
Other descriptions:
238Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Investment Properties Measured Using the Fair Value Model
□Applicable □N/A
15. Fixed Assets
In RMB
Item Closing balance Opening balance
Fixed assets 48231236929.70 44560506279.62
Fixed asset clearance
Total 48231236929.70 44560506279.62
239Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(1) Fixed Assets
In RMB
Item Buildings Office equipment Machinery Computer
Auxiliary
equipment equipment production
Transportation Other equipment Mould equipment Total
equipment equipment
I. Original carrying
amount
1. Opening
balance 14750390912.14 441192055.61 35566529056.29 367131802.86 3380766029.55 99604854.12 12411377316.21 6444881025.11 73461873051.89
2. Increase in
the current period 2031772884.16 191776711.55 10409028434.05 98804508.74 762969065.93 25423690.73 1850071766.42 1763430671.56 17133277733.14
(1)
Purchase 287471272.52 148105334.86 7075889891.29 56307763.89 655155764.50 24721776.28 1371944297.84 1451762605.15 11071358706.33
(2)
Transferred from
construction in 1236097707.85 5451508.65 724429555.49 170173.36 101524765.00 465833088.81 311668066.41 2845174865.57
progress
(3)
Increase in business 477964944.47 33293722.12 2539002596.06 30035990.15 3788458.71 695519.05 11549599.50 3096330830.06
combination
(4) Others 30238959.32 4926145.92 69706391.21 12290581.34 2500077.72 6395.40 744780.27 120413331.18
3. Decrease in
the current period 206028152.93 33812641.35 608475380.33 18772846.10 331991524.27 5944251.83 438023740.62 324729836.32 1967778373.74
(1)
Disposal or scrap 1806278.74 16165207.80 434083827.75 14149007.21 237917972.57 5477062.34 408208831.86 213618846.47 1331427034.73
(2) Decrease in
business 14165.88 1246206.96 224334.21 1642.78 2567954.98 22928344.20 26982649.01
combination
(3) Others 204221874.19 17633267.67 173145345.62 4399504.68 94071908.92 467189.49 27246953.78 88182645.65 609368690.00
4. Closing
balance 16576135643.37 599156125.81 45367082110.01 447163465.50 3811743571.21 119084293.02 13823425342.01 7883581860.35 88627372411.28
II. Accumulated
depreciation
1. Opening
balance 3085462511.01 229591369.68 14250004058.76 203530637.63 1540059122.18 58475250.87 5533557161.36 3510952303.79 28411632415.28
2. Increase in
the current period 1045566070.42 97198365.36 6757041453.75 82470880.86 581821063.95 13712247.96 2455850607.89 1465307894.62 12498968584.81
(1)
Provision 779723013.10 73216071.80 4915438477.24 55399409.32 578657642.92 13348988.57 2447792854.90 1465307894.62 10328884352.47
(2) Increase in
business 237717018.89 20572060.51 1791607876.60 19753162.06 1226047.06 356863.99 7962292.96 2079195322.07
combination
(3) Others 28126038.43 3410233.05 49995099.91 7318309.48 1937373.97 6395.40 95460.03 90888910.27
3. Decrease in
the current period 28130326.46 22209341.91 431724320.32 13755485.53 215055009.73 5078567.79 323242297.96 222987749.19 1262183098.89
240Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(1)
Disposal or scrap 873750.51 11260780.39 331500951.84 10331055.68 144640465.94 4825259.16 259989685.22 174099126.65 937521075.39
(2) Decrease in
business 10518.59 1121586.27 177625.73 475.23 2303566.34 20411651.32 24025423.48
combination
(3) Others 27256575.95 10938042.93 99101782.21 3246804.12 70414068.56 253308.63 60949046.40 28476971.22 300636600.02
4. Closing
balance 4102898254.97 304580393.13 20575321192.19 272246032.96 1906825176.40 67108931.04 7666165471.29 4753272449.22 39648417901.20
III. Provision for
impairment
1. Opening
balance 63256923.55 11249.57 350346711.70 1317734.53 8492189.57 42534.87 44440330.59 21826682.61 489734356.99
2. Increase in
the current period 74216.79 269635002.92 321927.22 5334797.40 13228583.51 9594871.92 298189399.76
(1)
Provision 5755.84 264961084.20 246134.43 5334797.40 13195063.94 9594871.92 293337707.73
(2) Increase in
business 68460.95 4673918.72 75792.79 33519.57 4851692.03
combination
(3) Others
3. Decrease in
the current period 1558.38 11045469.14 177939.00 7459379.95 412883.01 21108946.88 40206176.36
(1)
Disposal or scrap 1558.38 11045447.68 177933.90 7459379.95 406820.13 21108909.33 40200049.37
(2) Others 21.46 5.10 6062.88 37.55 6126.99
4. Closing
balance 63256923.55 83907.98 608936245.48 1461722.75 6367607.02 42534.87 57256031.09 10312607.65 747717580.39
IV. Book value
1. Closing
book value 12409980464.85 294491824.70 24182824672.35 173455709.79 1898550787.79 51932827.11 6100003839.63 3119996803.48 48231236929.70
2. Opening
book value 11601671477.58 211589436.36 20966178285.83 162283430.70 1832214717.80 41087068.38 6833379824.26 2912102038.71 44560506279.62
241Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Fixed Assets without Title Certificate
In RMB
Item Book value Reasons for not obtaining the titlecertificate
Plant office and dormitory buildings of
Fujian JK 6254694.58 Note 1
Changshu Luxshare Factory and 1069470709.04 The certificate is undergoing theAuxiliary Building Project formalities
Suzhou Meite Cadre Training Center 757066.50 The certificate is undergoing theformalities
Plants A and B of Luxshare Dongguan 44306785.28 The certificate is undergoing theformalities
Plant and Dormitory of Electronic
Technology 117397465.38
The certificate is undergoing the
formalities
Jiangxi Energy Factory #1 36160255.05 The certificate is undergoing theformalities
New plant of LuxcaseICT Yancheng 88848928.97 The certificate is undergoing theformalities
Other descriptions:
Note 1: The land occupied by the staff dormitory is in nature an allotted land the use right of which was acquired by the Company
by means of transfer through agreement in line with relevant regulations at that time. The property title formed based on the
allotted land use right is not allowed to be transferred unless the allocated land use right is converted to paid land use right.However the existing land use right cannot be transferred by agreement as a result of which the property title to the staff
dormitory building has not been transferred to Fujian JK.
(3) Impairment Testing of Fixed Assets
□Applicable □N/A
16 Construction in Progress
In RMB
Item Closing balance Opening balance
Construction in progress 5379186127.71 2226217016.31
Total 5379186127.71 2226217016.31
(1) Construction in Progress
In RMB
Closing balance Opening balance
Item
Book balance Provision for Provision forimpairment Book value Book balance impairment Book value
Plant 3456407782. 3456407782. 1147091150. 1147091150.construction 24 24 13 13
Equipment
installation 1361491192. 1361491192.81 81 702303869.84 702303869.84project
Mould
improvement 151542851.11 151542851.11 178571369.63 178571369.63
Other 409744301.55 409744301.55 198250626.71 198250626.71
242Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Total 5379186127. 5379186127. 2226217016. 2226217016.71 71 31 31
243Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Changes in Significant Constructions in Progress for the Current Period
In RMB
Amount Proportion
transferred to Other of Amount of
Including:
Amount of Current
Project name Budget Opening balance Increase in thecurrent period fixed assets in
decrease in Closing balance accumulated Project accumulated interest Source of
the current the current project progress capitalized
current capitalization funding
period period investment interest
capitalized
in budget interest
rate
Plant
construction
of Luxshare 4152734386.86 559342664.30 1251435374.56 711247654.02 24000.00 1099506384.84 74.68% 74.68% Other
Changshu
Equipment
installation
project of 1142834251.00 10756588.37 591513631.81 404047459.88 23381639.64 174841120.66 84.70% 84.70% Other
Luxshare
Changshu
Vietnam
plant project 1239999000.00 412598544.80 -2141933.26 414740478.06 33.27% 33.27% Other
Yi’an project
construction 1503652370.49 533130563.29 202187979.02 535151690.76 200166851.55 59.98% 59.98% Other
Plant
construction
of Luxshare 930680875.00 788744776.46 788744776.46 84.75% 84.75% Other
Yi’an Phase
II
Mexico
Luxshare 570144000.00 349530749.43 349530749.43 61.31% 61.31% Other
plant
Total 9540044883.35 1103229815.96 3596011056.08 1650446804.66 21263706.38 3027530361.00
244Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Impairment Test of Construction in Progress
□Applicable □N/A
17. Right-of-use Assets
(1) Situations of Right-of-use Asset
In RMB
Item Buildings Machinery equipment Transportationequipment Total
I. Original carrying
amount
1. Opening
balance 880914391.15 2976922.93 1218754.15 885110068.23
2. Increase in the
current period 553053760.71 40136163.14 625457.40 593815381.25
(1) New leases 264001445.97 618547.50 264619993.47
(2) Increase in business
combination 285811063.40 26863595.17 312674658.57
(3) Revaluation
adjustment
(4) Others 3241251.34 13272567.97 6909.90 16520729.21
3. Decrease in the
current period 156499975.29 3344126.24 159844101.53
(1) Disposal 156499975.29 3344126.24 159844101.53
4. Closing balance 1277468176.57 39768959.83 1844211.55 1319081347.95
II. Accumulated
depreciation
1. Opening
balance 233558161.75 2382957.82 204980.57 236146100.14
2. Increase in the
current period 345782953.77 17641514.71 464969.40 363889437.88
(1) Provision 233577719.65 6294393.00 464969.40 240337082.05
(2) Increase in business
combination 112144203.22 10163443.11 122307646.33
(3) Others 61030.90 1183678.60 1244709.50
3. Decrease in the
current period 136299441.03 3141723.96 139441164.99
(1) Disposal 137840788.80 3228515.33 141069304.13
(2) Others -1541347.77 -86791.37 -1628139.14
4. Closing balance 443041674.49 16882748.57 669949.97 460594373.03
III. Provision for
impairment
1. Opening
balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
245Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
4. Closing balance
IV. Book value
1. Closing book
value 834426502.08 22886211.26 1174261.58 858486974.92
2. Opening book
value 647356229.40 593965.11 1013773.58 648963968.09
(2) Situations of Impairment Test of The Right to Use Assets
□Applicable □N/A
Other descriptions:
18 Intangible Assets
(1) Intangible Assets
In RMB
Item Land use right Patent right Non-patenttechnology Software Other Total
I. Original
carrying
amount
1. Opening 2498014602. 3357552021.
balance 47 196397259.67 116282172.25 436522399.64 110335587.66 69
2. Increase
in the current 243207599.05 9966914.19 44283984.69 139588531.41 -3623164.35 433423864.99
period
(1)
Purchase 143950735.41 6928987.48 46091592.28 116938747.69 313910062.86
(2)
Internal R&D
(3)
Increase in
business 110558066.56 3053092.15 22636428.53 419971.48 136667558.72
combination
(4) Others -11301202.92 -15165.44 -1807607.59 13355.19 -4043135.83 -17153756.59
3.
Decrease in the 24638052.66 1523936.20 7141582.24 -10375.81 33293195.29
current period
(1)
Disposal 1106684.86 7259593.55 8366278.41
(2) Others 24638052.66 417251.34 -118011.31 -10375.81 24926916.88
4. Closing 2716584148.
balance 86 206364173.86 159042220.74 568969348.81 106722799.12
3757682691.
39
II. Accumulated
amortization
1. Opening
balance 285255159.17 74994587.19 62749522.70 244110282.91 27373365.86 694482917.83
2. Increase
in the current 71613503.33 44112978.22 42343197.30 111847643.55 7942729.84 277860052.24
period
246Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(1)
Provision 68100011.87 44123608.24 43182275.15 95734985.02 8944308.30 260085188.58
(2) Transfer
from
investment
properties
(3) Increase in
business 3502335.00 16111545.60 19613880.60
combination
(4) Other
increase 11156.46 -10630.02 -839077.85 1112.93 -1001578.46 -1839016.94
3.
Decrease in the 1303702.14 604611.82 4411079.93 -2334.96 6317058.93
current period
(1)
Disposal 618258.61 4454789.96 5073048.57
(2) Other
decrease 1303702.14 -13646.79 -43710.03 -2334.96 1244010.36
4. Closing
balance 355564960.36 119107565.41 104488108.18 351546846.53 35318430.66 966025911.14
III. Provision
for impairment
1. Opening
balance
2. Increase
in the current 187023.91 187023.91
period
(1)
Provision
(2) Others 187023.91 187023.91
3.
Decrease in the
current period
(1)
Disposal
(2) Others
4. Closing
balance 187023.91 187023.91
IV. Book value
1. Closing 2361019188.
book value 50 87256608.45 54554112.56 217235478.37 71404368.46
2791469756.
34
2. Opening 2212759443.
book value 30 121402672.48 53532649.55 192412116.73 82962221.80
2663069103.
86
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end of this period
(2) Data Resources Recognized as Intangible Assets
□Applicable □N/A
(3) Information on Land Use Rights for Which Title Certificates Have Not Been Obtained
In RMB
Item Book value Reasons for not obtaining the titlecertificate
Luxshare Energy purchases land from
Hong Sheng Electronics 2648576.34
The certificate is undergoing the
formalities
247Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Other descriptions:
(4) Impairment Test of Intangible Assets
□Applicable □N/A
19. Goodwill
(1) Original Carrying Amount of Goodwill
In RMB
Investee name Increase Decrease
or event Opening Formed by
forming balance Closing balancebusiness Other Disposal Other
goodwill combination
ASAP
Technology
(Jiangxi) Co. 42325745.85 42325745.85
Ltd.Lanto
Electronic 376682429.24 376682429.24
Limited
Bozhou Lanto
Electronic 9564372.61 9564372.61
Limited
M&A of
KERTONG 53174339.31 53174339.31
goodwill
Fujian JK
Wiring Systems 17717209.29 17717209.29
Co. Ltd..Huzhou Jiuding
Electronic Co. 1730318.45 1730318.45
Ltd.SpeedTech
Corp. 26656146.69 26656146.69
Luxshare
Electronic
Technology 4582880.91 4582880.91
(Kunshan) Co.Ltd.Suk
kunststofftechni 9552894.63 9552894.63
k GmbH
Merry
Electronics
(Suzhou) Co. 8570588.06 8570588.06
Ltd.Merry
Electronics
(Huizhou) Co. 6575713.14 6575713.14
Ltd.Merry
Electronics
(Shanghai) Co. 454304.97 454304.97
Ltd.Castle Rock
Inc. 8303254.98 8303254.98
248Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
M&A of
Taiqiao
Investment Co. 441595.93 441595.93
Ltd.Luxcase
Precision
Technology 814784800.96 814784800.96
(Yancheng)
Co. Ltd.Zhejiang
Puxing
Electronic 804455.51 804455.51
Technology
Co. Ltd.Caldigit
Holding(Cayma 41765582.41 41765582.41
n)
TaiHan
Precision
Technology 9972872.88 9972872.88
Co. Ltd.TIME
Interconnect
Technology 175669057.02 175669057.02
Limited
Shenzhen
Huarong
Technology 157013624.50 157013624.50
Co. Ltd.Lisheng
Intelligent
Technology 139752637.63 139752637.63
(Shanghai) Co.Ltd.CosmoCorporat
ionCaymanLim 2947391.44 2947391.44
ited
Luxis
Hongkong Co. 8864483.14 8864483.14
Ltd.Luxis
Singapore Co. 5473877.90 5473877.90
Ltd.Total 1766342187. 157038390.11 454304.97 1922926272.34 48
(2) Impairment Provision for Goodwill
In RMB
Investee name Increase Decrease
or event Opening
forming balance Closing balanceProvision Other Disposal Other
goodwill
Merry
Electronics
(Suzhou) Co. 8570588.06 8570588.06
Ltd.Suk
kunststofftechni 9552894.63 9552894.63
k GmbH
Merry
Electronics
(Shanghai) Co. 454304.97 454304.97
Ltd.
249Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Fujian JK
Wiring Systems 17717209.29 17717209.29
Co. Ltd..Zhejiang
Puxing
Electronic 804455.51 804455.51
Technology
Co. Ltd.Total 37099452.46 37099452.46
(3) Specific Method of Determining the Recoverable Amount
Determining the recoverable amount by subtracting the disposal costs from the fair value
□Applicable □N/A
Determining the recoverable amount by the present value of expected future cash flows
□Applicable □N/A
Reasons for the significant differences between the above information and the information used or external information used in
impairment tests in previous years
Reasons for significant differences between the information used in impairment tests in previous years and the actual situation in
the current year
（4) Other Descriptions:Note 1: The goodwill of the Company is formed by business combinations not involving enterprises under
common control in previous years and this year. On the balance sheet date the Company conducted
impairment tests on goodwill. The recoverable amount of the asset group involved in goodwill is
determined according to the present value of the future cash flow of the asset group and the net realizable
value. The management determines the growth rate and gross margin based on the macro market
environment historical experience and the development stage forecast of product segments involved in
different asset groups. Depending on the different asset groups involved the growth rate used in the
forecast for the current year is -7.61%-35% the gross margin is 3.00%-41.00% and the discount rate is
2.33%-11.80%. The parameters used in goodwill impairment test of major asset groups are as follows:
Asset group name Gross margin Growth rate Discount rate
Lanto Electronic Limited 10.00%-11.62% 1.00%-1.06% 11.80%
Shenzhen Kertong Industrial Co. Ltd. 26.00%-28.14% 11.00%-11.91% 11.35%
Luxcase Precision Technology (Yancheng) Co. Ltd. 4.50%-4.68% 8.00%-9.70% 11.66%
Shenzhen Huarong Technology Co. Ltd. 4.00%-8.00% 15.00%-20.0% 11.62%
250Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Note 2: Converge Technology Limited is a Hong Kong-listed company. The recoverable amount is
determined by subtracting the disposal costs from the fair value.
20. Long-Term Deferred Expenses
In RMB
Item Opening balance Increase in the
Amortization
current period amount in the
Other reduced Closing balance
current period amount
Housing
decoration fees 470324441.17 311599181.56 218880005.31 563043617.42
Leasehold
Improvements 21767792.49 10332660.85 11435131.64
Other 119941561.98 164504359.69 88923340.14 195522581.53
Total 590266003.15 497871333.74 318136006.30 770001330.59
Other descriptions:
21. Deferred Tax Assets/Deferred Tax Liabilities
(1) Deferred Tax Assets that are not Offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred tax assets Deductible temporarydifferences differences Deferred tax assets
Provision for
impairment of assets 1649936808.02 330064622.97 1143132621.04 224368274.81
Unrealized profit of
internal transaction 566937262.62 108377935.56 541695019.14 96205468.40
Deductible losses 2834636576.35 558091603.57 3129088911.68 474034583.26
Share-based payment 851905499.97 145070321.94 1029585993.98 163582703.34
Tax and accounting
difference for
depreciation of fixed 1107945180.38 267798539.82 642643662.15 160660915.54
assets
Government grants
related to income 650779269.27 104790898.28 590824033.43 94809630.59
Exchange differences
of foreign operations 24946662.65 5801621.73 68848999.67 13769799.93
Lease liabilities 547820096.66 113864083.52 410088669.15 71535638.48
Changes in the fair
value of other equity 28014313.96 4202147.10 22965122.40 3444768.36
instruments
Valuation of derivative
financial instruments 1430225.00 307436.25 12795763.95 3198940.99
Dismissal welfare 1816635.00 363327.00 2231853.00 446370.60
Unused vacation bonus 2552205.00 510441.00 2649530.00 529906.00
Other 108751641.52 20079756.50 122671291.67 23352718.56
Total 8377472376.40 1659322735.24 7719221471.26 1329939718.86
251Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Deferred Tax Liabilities that are not Offset
In RMB
Closing balance Opening balance
Item Taxable temporary
difference Deferred tax liabilities
Taxable temporary
difference Deferred tax liabilities
Assets valuation
appreciation of
business combination
not involving 555834740.55 123998754.99 613468097.18 138602301.85
enterprises under
common control
Changes in fair value
of other investments in 37038853.65 5555828.05 156725739.33 23508860.90
equity instruments
Accelerated
depreciation of fixed 6237429963.57 1069635156.61 5334807068.28 821130904.46
assets
Accumulative
recognition of overseas
investment interests by 1221918845.24 242805330.85 1032240690.00 206448138.00
equity method
Valuation of derivative
financial instruments 484114120.03 98803296.98 452705163.11 71282964.19
Right-of-use assets 511955792.78 105436102.09 380058524.89 65285746.10
Unrealized exchange
gains 998799492.08 122175703.20 64324553.60 9648683.04
Support funds allocated
by the government 16905531.40 2535829.71 13883542.73 2082531.41
Prepaid pension 7424799.00 1484959.80 6748781.00 1349756.20
Other 133221197.43 25019213.80 5895798.70 1580971.04
Total 10204643335.73 1797450176.08 8060857958.82 1340920857.19
(3) Deferred Tax Assets or Liabilities Presented in Net Amount after Offsetting
In RMB
Offset amount between
deferred tax assets and Closing balance of
Offset amount between Opening balance of
Item liabilities at the end of deferred tax assets or
deferred tax assets and deferred tax assets or
the period liabilities after offset
liabilities at the
beginning of the period liabilities after offset
Deferred tax assets 841629258.95 817693476.29 456995883.46 872943835.40
Deferred tax liabilities 841629258.95 955820917.13 456995883.46 883924973.73
22. Other Non-current Assets
In RMB
Closing balance Opening balance
Item
Book balance Provision for Provision forimpairment Book value Book balance impairment Book value
Large-
denomination
time deposits 15176496070 15176496070 8363006126. 8363006126.and fixed .96 .96 99 99
deposits
Prepayments 1688136531. 1688136531. 1416220632. 1416220632.for equipment 37 37 39 39
252Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
construction
and land
Prepayment for
equity
acquisition 141654000.00 141654000.00
deposit
Prepaid pension 7767842.10 7767842.10 6748719.45 6748719.45
Other 4014634.09 4014634.09
Total 16872400444 16872400444 9931644112. 9931644112..43 .43 92 92
Other descriptions:
23. Assets Whose Ownership or Use is Restricted
In RMB
Closing Beginning
Item Book Restricted Restricted Book Restricted Restricted
balance Book value type case balance Book value type case
Restricted Restricted
Cash and 10925529 10925529 Security by the by thebank 39353871 39353871 Security86.55 86.55 deposit issuance of 36.86 36.86 deposit issuance ofbalances bills letters bills letters
of credit of credit
Notes
Notes 16456747 16456747
receivable 7.58 7.58 Pledge
receivable
pledge
financing
Fixed Fixed
Fixed 22200479 22200479 assets 63580344 63580344 assets
assets 90.97 90.97 Mortgage mortgage 3.15 3.15 Mortgage mortgage
financing financing
Land use Land use
Intangible 28366731 28366731 right 40167406 40167406 right
assets 9.28 9.28 Pledge pledge 0.39 0.39 Pledge pledge
financing financing
Non- Restricted
current
assets due 15284739 15284739
by the
44.06 44.06 Pledge issuance ofwithin one bills letters
year of credit
Restricted
Other
current 75434202 75434202
by the
54.18 54.18 Pledge issuance ofassets bills letters
of credit
Restricted Restricted
Other non- by the by the
current 28876648 28876648 28740977 28740977
assets 27.23 27.23
Pledge issuance of
bills letters 49.98 49.98
Pledge issuance of
bills letters
of credit of credit
Total 15555827 15555827 80115298 80115298322.27 322.27 67.96 67.96
Other descriptions:
253Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
24. Short-term Borrowings
(1) Classification of Short-term Borrowings
In RMB
Item Closing balance Opening balance
Pledge loans 5115528239.21 4260029345.26
Mortgage loans 170391059.73 171321000.00
Guaranteed loans 137652490.73 550036618.19
Credit loans 29889557134.59 15532795277.02
Total 35313128924.26 20514182240.47
Descriptions on classification of short-term borrowings:
25. Held-for-trading Financial Liabilities
In RMB
Item Closing balance Opening balance
Held-for-trading financial liabilities 155278918.84 117942421.18
Among which
Derivative financial liabilities 155278918.84 117942421.18
Among which
Total 155278918.84 117942421.18
Other descriptions:
26. Notes Payable
In RMB
Category Closing balance Opening balance
Commercial Acceptance Bill 315839575.13 168339.81
Bank Acceptance Bill 562496136.81 492417560.22
Total 878335711.94 492585900.03
The total amount of notes payable due but unpaid at the end of this period is RMB0.00. The reason for the unpaid maturity is.
27. Accounts Payable
(1) Presentation of Accounts Payable
In RMB
Item Closing balance Opening balance
Within 1 year 64944368254.71 45810846164.38
1 to 2 years 102710401.01 78664332.26
254Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2 to 3 years 26053747.26 12249724.48
More than 3 years 14860735.66 6755074.31
Total 65087993138.64 45908515295.43
28. Other Payables
In RMB
Item Closing balance Opening balance
Dividends payable 52175292.26 11894022.29
Other payables 450194278.36 394783918.24
Total 502369570.62 406677940.53
(1) Interest Payable
In RMB
Item Closing balance Opening balance
Common stock dividend 52175292.26 11894022.29
Total 52175292.26 11894022.29
Other descriptions including significant dividends payable that have not been paid for more than 1 year should disclose the
reasons for non-payment:
(2) Other Payables
1) Presentation of Other Payables by Nature
In RMB
Item Closing balance Opening balance
Within 1 year 370193703.86 373822808.71
1 -2 years 74689108.49 7536142.05
2 -3 years 1209333.75 2845498.74
More than 3 years 4102132.26 10579468.74
Total 450194278.36 394783918.24
Other descriptions:
29. Contract Liabilities
In RMB
Item Closing balance Opening balance
Goods payments received in advance 262507706.68 243566923.42
Total 262507706.68 243566923.42
Significant contractual liabilities older than 1 year
In RMB
Item Closing balance Reasons for non-repayment or carry-
255Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
forward
Amount of and reason for significant changes in book value during the reporting period
In RMB
Item Change amount Reason for change
30. Employee Benefits Payable
(1) Presentation of Employee Benefits Payable
In RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term benefits 2308412279.99 22568896008.66 21894613923.67 2982694364.98
II. Post-employment
benefits - defined 21690291.76 1345724913.24 1341649099.74 25766105.26
contribution plan
III. Termination
benefits 216420.00 40954604.44 38307269.32 2863755.12
Total 2330318991.75 23955575526.34 23274570292.73 3011324225.36
(2) Presentation of Short-Term Benefits
In RMB
Item Opening balance Increase Decrease Closing balance
1. Salary bonus
allowance and subsidy 2276238841.52 20516940439.83 19874328849.69 2918850431.66
2. Employee welfare 6412988.21 161158132.11 165994946.76 1576173.56
3. Social insurance
premium 14221233.88 702331892.97 701062646.03 15490480.82
Including:
Medical insurance 12624862.84 520440024.11 519100974.79 13963912.16
premium
Employme
nt injury insurance 1242738.45 61613047.12 61589598.85 1266186.72
premium
Maternity
insurance premium 353632.59 120278821.74 120372072.39 260381.94
4. Housing provident
fund 4789647.81 375622497.79 375065520.52 5346625.08
5. Trade union funds
and staff education 2447522.42 60696668.77 29158511.37 33985679.82
funds
6. Short-term
compensated absences 14816.96 14816.96
8. Other short-term
benefits 4302046.15 752131560.23 748988632.34 7444974.04
Total 2308412279.99 22568896008.66 21894613923.67 2982694364.98
(3) Presentation of Defined Contribution Plan
In RMB
Item Opening balance Increase Decrease Closing balance
256Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
1. Basic endowment
insurance premium 21078236.43 1293506236.40 1289427554.61 25156918.22
2. Unemployment
insurance premium 612055.33 52218676.84 52221545.13 609187.04
Total 21690291.76 1345724913.24 1341649099.74 25766105.26
Other descriptions:
31. Taxes Payable
In RMB
Item Closing balance Opening balance
Value added tax 210242341.64 132476622.34
Enterprise income tax 640603703.76 561049186.85
Individual income tax 86831143.55 77002005.54
Urban maintenance and construction tax 82297500.74 46681016.77
Property tax 31103839.66 41139838.65
Education surcharges 42537753.28 28316821.64
Local education surcharges 28122537.68 18936169.14
Land use tax 3998051.42 5206233.88
Stamp duty 49728828.53 50252147.37
Disability insurance 61153367.06 49635583.88
Other 1669565.74 10628649.12
Total 1238288633.06 1021324275.18
Other descriptions:
32. Non-Current Liabilities Due within One Year
In RMB
Item Closing balance Opening balance
Long-term borrowings due within one
year 2102524892.10 2688496752.82
Bonds payable due within one year 49591565.40
Lease liabilities due within one year 153946615.16 129207552.67
Total 2256471507.26 2867295870.89
Other descriptions:
33. Other Current Liabilities
In RMB
Item Closing balance Opening balance
Short-term bonds payable 5039811780.82 802722191.78
Payable for purchase returns 45653413.49 46968630.49
Entrusted loans 22183798.56 10417821.56
257Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Unconfirmed instrument 61175243.61 24834420.45
Short-term tickets payable 40012542.80
Other 7746196.22
Total 5168824236.48 932701803.30
258Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Increase and decrease in short-term bonds payable:
In RMB
Other descriptions:
Accrued Premium or
Bond name Face value Nominalinterest rate Issue date
Bond
maturity Amount of issue
Opening Issued during the
balance period interest at discount
Repaid during Default or
face value amortization the period
Other Closing balance not
Short-term
bonds 100.00 2.70% November15 2023 177 days 800000000.00 802722191.78 7723709.86 810445901.64 Nopayable
Short-term
bonds 100.00 2.33% March 072024 177 days 800000000.00 800000000.00 9039123.29 809039123.29 Nopayable
Short-term
bonds 100.00 2.16% April 122024 180 days 500000000.00 500000000.00 5326027.40 505326027.40 Nopayable
Short-term
bonds 100.00 2.01% June 282024 270 days 1000000000.00 1000000000.00 10242739.73 1010242739.73 Nopayable
Short-term
bonds 100.00 1.97% July 122024 265 days 1000000000.00 1000000000.00 9283287.67 1009283287.67 Nopayable
Short-term
bonds 100.00 1.96% July 242024 268 days 1000000000.00 1000000000.00 8591780.82 1008591780.82 Nopayable
Short-term
bonds 100.00 2.14% September20 2024 270 days 1000000000.00 1000000000.00 5980273.97 1005980273.97 Nopayable
Short-term
bonds 100.00 2.15% September
payable 25 2024
268 days 1000000000.00 1000000000.00 5713698.63 1005713698.63 No
Total 7100000000.00 802722191.78 6300000000.00 61900641.37 2124811052.33 5039811780.82
259Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
34. Long-Term Borrowings
(1) Classification of Long-Term Borrowings
In RMB
Item Closing balance Opening balance
Pledge loans 198100000.00 181159890.80
Mortgage loans 516823897.89 1605792188.08
Guaranteed loans 5219696.50 72496000.00
Credit loans 18899598040.38 10179323211.04
Total 19619741634.77 12038771289.92
Descriptions on classification of long-term borrowings:
Other descriptions including interest rate range:
35. Bonds Payable
(1) Bonds Payable
In RMB
Item Closing balance Opening balance
Convertible bonds 3305436590.71 2799499850.29
Total 3305436590.71 2799499850.29
(2) Increase and Decrease in Bonds Payable (Excluding Preferred Shares Perpetual Bonds and Other
Financial Instruments Classified as Financial Liabilities)
In RMB
Nominal Issued Accrued
Premiu Repaid Debt-to-
Bond name Face interest Issue Bond Amount Opening during interest
m or during equity Closing Default
value rate date maturity of issue balance the at face
discount
amortiza the conversi balance or notperiod value tion period on
1.
Convertible Novemb100.00 er 03 6 300000 279949 465000 771233 450000 83788.0 287803bonds of 0000.00 9850.29 00.00 89.15 00.00 1 9451.43 No
Luxshare 2020
2.
SpeedTech 22497.0 March 449940 449940 - 427397
Convertible 0 06 2024 3 000.00 000.00 225428 No
Bonds 60.72
139.28
Total —— 344994 279949 449940 465000 545805 450000 83788.0 3305430000.00 9850.29 000.00 00.00 28.43 00.00 1 6590.71 ——
260Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Description of Convertible Corporate Bonds
Explanation of bonds payable: The Company's subsidiary SpeedTech Technology Co. Ltd. issued convertible corporate bonds
with a total issue amount of NT$2 billion a coupon rate of 0% and a term of 3 years. The circulation period is from March 6
2024 to March 6 2027.
36. Lease Liabilities
In RMB
Item Closing balance Opening balance
Lease payment 779860687.46 600566123.03
Minus: Unrecognized financing costs -51878020.09 -48077234.37
Total 727982667.37 552488888.66
Other descriptions:
37. Provisions
In RMB
Item Closing balance Opening balance Reason
Product quality warranty 7088481.43 642733.24 Provision
Total 7088481.43 642733.24
Other descriptions including major assumptions and estimation descriptions related to significant provisions:
38. Deferred Income
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government grants
related to income 595323601.05 225421929.08 171636897.69 649108632.44 Asset-related
Total 595323601.05 225421929.08 171636897.69 649108632.44 --
Other descriptions:
39. Other Non-Current Liabilities
In RMB
Item Closing balance Opening balance
Other 756521.26 1471770.36
Total 756521.26 1471770.36
Other descriptions:
261Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
40. Share Capital
In RMB
Increase and decrease (+ -)
Opening Shares Closing
balance New shares Stock converted balance
issued dividend from capital Other Subtotal
reserve
Total shares 714816821 88292139.0 1790.00 88293929.0 7236462143.00 0 0 2.00
Other descriptions:
Other descriptions: The Company’s share capital increased by RMB 88293929.00 in the current period including 88292139.00
shares exercised by the stock option incentive recipients at their sole discretion and 1790.00 shares converted from convertible
bonds. After the said exercise and conversion the Company’s share capital increased to 7236462142.00 shares.
41. Other Equity Instruments
(1) Basic Information on Preferred Shares Perpetual Bonds and Other Financial Instruments Outstanding at the End of
the Period
(2) Table of Changes in Preferred Shares Perpetual Bonds and Other Financial Instruments Outstanding at the End of the
Period
In RMB
Financial Beginning Increase Decrease Closing
instruments
outstanding Number Book value Number Book value Number Book value Number Book value
Convertible 52728902 17991.56 52727102bonds 0.28 8.72
Total 52728902 17991.56 527271020.28 8.72
Explanation of the changes in other equity instruments during the period reasons for the changes and the basis for related
accounting treatment:
Other descriptions: The 10th meeting of the fourth session of the Board of Directors of the Company reviewed and passed the
Proposal on Clarifying the Specific Plan for the Public Issuance of Convertible Corporate Bonds. The Company received the
Approval for the Public Issuance of Convertible Corporate Bonds to Luxshare Precision Industry Co. Ltd. issued by the China
Securities Regulatory Commission on February 19 2020 (CSRC Permit [2020] No. 247) approving the Company to publicly issue
convertible corporate bonds with a total face value of RMB 3000 million with a term of 6 years. The RMB 3000 million
convertible corporate bonds of the Company were listed and traded on the Shenzhen Stock Exchange on November 3 2020 with
the bond abbreviation" Luxshare Convertible Bonds" and the bond code "128136".Other descriptions:
262Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
42. Capital Reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
premium) 4431226649.93 2436345130.07 6867571780.00
Other capital reserve 580717983.99 424957144.06 327019528.85 678655599.20
Total 5011944633.92 2861302274.13 327019528.85 7546227379.20
Other explanations including changes during the period and reasons for the changes:
43. Other Comprehensive Income
In RMB
Amount recognized in the current period
Less: Less:
amount amount
previously previously
included in included in
Amount of other other
Item Opening income comprehensi comprehensi Less:
Attributable Attributable Closing
balance before tax in ve income ve income Income tax to the parent to minority balance
the current and and expenses company shareholders
period transferred transferred after tax after tax
to profit or to retained
loss for the earnings for
current the current
period period
I. Other
comprehensi
ve income
that cannot 114304549. -90296567.2 38318775.3
--
be 36 5 19215768.2 109399574. 4904975.06
reclassified 0 5 30
into profit or
loss
Change
s in fair
value of - - -
other 114304549. 90296567.2 38318775.336 5 19215768.2 109399574. 4904975.06investments 0 5 30
in equity
instruments
II. Other
comprehensi
ve income to - - -
be 34457627.5 57359677.8
reclassified 2
685808558.743168236.708710609.
9684832
into profit or
loss
Translat
ion
difference of
foreign 34457627.5
--
685808558.743168236.57359677.8
-
708710609.
currency 2 96 84 8 32
financial
statements
263Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Total other - - - -
comprehensi 148762176.88 776105126.
38318775.3
519215768.2852567811.
57359677.8
8 703805634.ve income 16 5 14 26
Other descriptions including those on the adjustment for conversion of the effective part of profit or loss of cash flow hedging into
the initial recognition amount of the hedged item:
44. Special Reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Safety production
expenses 3528369.80 38821819.05 40153663.34 2196525.51
Total 3528369.80 38821819.05 40153663.34 2196525.51
Other explanations including changes during the period and reasons for the changes:
45. Surplus Reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
reserve 1443520185.47 173999858.78 1617520044.25
Total 1443520185.47 173999858.78 1617520044.25
Description of surplus reserve including those on increase and decrease for the current period and the reasons for the change:
46. Undistributed Profits
In RMB
Item Current Period Prior Period
Undistributed profits at the end of prior
period before adjustment 42026971911.25 32288416277.22
Undistributed profits at the beginning of
the period after adjustment 42026971911.25 32288416277.22
Add: Net profits attributable to the
owners of the parent company in the 13365651026.16 10952656702.16
current period
Less: Apportion to statutory surplus
reserve 173999858.78 322447486.64
Common stock dividends payable 2153401833.67 926948678.85
Other -35918195.61 -35295097.36
Undistributed profits at the end of the
period 53101139440.57 42026971911.25
Details of adjustment of undistributed profits at the beginning of the period:
1) The undistributed profits at the beginning of the period affected by the retroactive adjustment as stipulated in the Accounting
264Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Standards for Business Enterprises and new regulations newly promulgated relating thereto amounted to RMB0.00.
2) The undistributed profits at the beginning of the period affected by the changes in accounting policies amounted to RMB0.00.
3) The undistributed profits at the beginning of the period affected by the correction of major accounting errors amounted to
RMB0.00.
4) The undistributed profits at the beginning of the period affected by changes in the scope of consolidation due to business
combination involving enterprises under common control amounted to RMB0.00.
5) The undistributed profits at the beginning of the period affected by other adjustments amounted to RMB0.00.
47. Operating Income and Operating Costs
In RMB
Amount recognized in the current period Amount recognized in the prior period
Item
Income Cost Income Cost
Principal business 265136042440.22 238369649081.85 229308417348.68 203310851043.48
Other business 3658695172.36 2439768898.74 2597042481.15 1730449415.11
Total 268794737612.58 240809417980.59 231905459829.83 205041300458.59
The Company's audited total profit net profit and net profit after deducting non-recurring gains and losses for the most recent
accounting year whichever is lower is negative
□Yes□No
Breakdown of operating revenue and operating costs
In RMB
Classificati Segment 1 Segment 2 Total
on of Operating Operating Operating Operating Operating Operating Operating Operating
contract income cost income cost income cost income cost
Business
type
Among
which
Merchandis
e sales 26879473 24080941 26879473 24080941
revenue 7612.58 7980.59 7612.58 7980.59
Classified
on by
operating
area
Among
which
Type of
market or
customer
Among
which
Contract
type
Among
which
265Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Classified
by time of
transfer of
goods
Among
which
Confirm at
a certain 26879473 24080941 26879473 24080941
point 7612.58 7980.59 7612.58 7980.59
Classified
by contract
term
Among
which
Classified
by sales
channel
Among
which
Total 26879473 24080941 26879473 240809417612.58 7980.59 7612.58 7980.59
Information related to performance obligations:
The type of
Time of Nature of the Amounts quality
performance or Key payment Company's Whether they expected to be assuranceItem fulfillment of terms commitment to are the primary refunded to provided by the
obligations transfer goods obligor customers by Company andthe Company related
obligations
Other descriptions:
Information relating to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the incomes corresponding to the contracts signed whose performance has not been commenced
or completed amount to RMB0.00 of which RMB is expected to be recognized in RMB is expected to be recognized in and
RMB is expected to be recognized in.Information related to variable consideration in contracts:
Significant contract amendments or significant adjustments in transaction prices.In RMB
Item Accounting treatment methods Amount of impact on revenue.Other descriptions:
266Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
48. Taxes and Surcharges
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Urban maintenance and construction tax 187197278.99 135828066.62
Education surcharges 89973288.24 74879240.47
Property tax 102848049.47 94893905.31
Land use tax 10692002.96 12471189.05
Vehicle and vessel use tax 72842.74 63832.43
Stamp duty 171712516.66 156855629.56
Local education surcharges 63333446.42 50692853.69
Other 10919836.26 9130512.93
Total 636749261.74 534815230.06
Other descriptions:
49. Management Expenses
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Personnel expenses 3291003288.36 2955300979.92
Depreciation and amortization expenses 1313585644.28 1141476216.54
Materials and consumables 441684750.18 436597420.45
Office expenses 261112275.37 241922242.64
Repair and miscellaneous purchases 245249122.98 157359307.86
Utilities 93925288.27 65353249.13
Leasing expenses 74248136.79 116187241.86
Travel and transportation expenses 72675594.95 42414743.05
Other expenses 558800465.70 386245592.81
Total 6352284566.88 5542856994.26
Other descriptions:
50. Selling Expenses
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Employee benefits 682250740.68 598361422.40
Storage and lease expenses 41138477.88 30444556.09
Consumables and miscellaneous
purchases 35350941.27 18734939.68
Business entertainment expenses 36256043.62 34681627.31
Depreciation and amortization 13454868.55 19007296.20
Travel expenses 6723517.25 23367644.53
Material expenditure 44466816.13 16493491.17
Transportation expenses 21532162.49 6688139.24
Consulting and advisory expenses 27608616.92 18527534.76
Office expenses 3833859.41 1162239.79
Other 147060732.21 121555530.46
267Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Total 1059676776.41 889024421.63
Other descriptions:
51. R&D Expenses
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Personnel expenses 4743098552.35 4474219036.60
Mould and material expenses 1532623500.70 1223716713.86
Depreciation and amortization expenses 905914983.86 1071507770.65
Consumables and miscellaneous 414999915.67 298285961.53
Repair and inspection 440348249.99 373156578.61
Service fees 71461490.74 206099670.82
Utilities 97573364.08 126487095.42
Transportation and travel expenses 67647210.31 55143408.18
Commercial insurance 5138622.27 4193418.58
Leasing expenses 28591943.61 72638748.64
Other expenses 248559597.88 283319129.96
Total 8555957431.46 8188767532.85
Other descriptions:
52. Financial Expenses
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Interest expenses 1462653485.39 1376870146.38
Interest income -968280395.31 -1005580557.62
Foreign exchange gains or losses -1010171618.93 72796425.87
Other 12621880.62 38783312.39
Total -503176648.23 482869327.02
Other descriptions:
53. Other Incomes
In RMB
Sources of other incomes Amount recognized in the current period Amount recognized in the prior period
Government grants related to income 933138071.97 791098788.52
Input tax credit offset 50878985.48 20559877.99
Withholding personal income tax
processing fees 9186520.44 13530448.56
Total 993203577.89 825189115.07
268Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
54. Income from Changes in Fair Value
In RMB
Sources of income from changes in fair
value Amount recognized in the current period Amount recognized in the prior period
Financial assets held for trading -67078837.71 210346832.18
Including: Income from changes in
fair value of derivative financial -67078837.71 210346832.18
instruments
Other non-current financial assets 3911504.56
Total -63167333.15 210346832.18
Other descriptions:
55. Investment Income
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Long-term equity investment income
accounted for using the equity method 3318152092.00 2044361609.89
Investment income from disposal of
long-term equity investment 10018847.56
Investment income from disposal of
held-for-trading financial assets 1100723169.18 279341611.63
Dividends from other equity instrument
investments during holding period 264713.32
Gains from derecognition of financial
assets measured at amortized cost. -300000.00
Income from derecognition of financial
assets measured at amortized cost -795197080.77 -741342548.75
Interest income from fixed deposits/large
certificates of deposit/financial 913543627.47 188657405.35
investments
Total 4546940655.44 1771282791.44
Other descriptions:
56. Impairment Losses of Credit
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Bad debt loss of notes receivable -111900.83 270661.65
Bad debt loss of accounts receivable -11571804.07 25623112.25
Bad debt loss of other receivables 1595715.30 -2619894.43
Total -10087989.60 23273879.47
Other descriptions:
269Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
57. Impairment Losses of Assets
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
I. Loss of inventory depreciation and
impairment loss of contract performance -915719817.70 -1126386426.94
cost
II. Impairment losses on long-term
equity investments -36410782.10
IV. Impairment loss of fixed assets -293337707.73 -191676433.95
X. Impairment loss of goodwill -804455.51
Total -1245468307.53 -1318867316.40
Other descriptions:
58. Income from Disposal of Assets
In RMB
Sources of income from asset disposal Amount recognized in the current period Amount recognized in the prior period
Income from disposal of fixed assets 33453842.59 121555370.09
Income from disposal of intangible assets -27187.26 53313.42
Income from disposal of right-of-use
assets 3199410.73 1258494.01
Total 36626066.06 122867177.52
59. Non-operating Income
In RMB
Item Amount recognized in the Amount recognized in the
Amount included in non-
current period prior period recurring profit or loss for thecurrent period
Income from compensation
for breach of contract 39964895.05 70247182.56 39964895.05
Income from asset retirement 411576.65 5791215.56 411576.65
Negative goodwill 368076.97 368076.97
Other 12858505.25 17420629.28 12858505.25
Total 53603053.92 93459027.40 53603053.92
Other descriptions:
60. Non-operating Expenses
In RMB
Item Amount recognized in the Amount recognized in the
Amount included in non-
current period prior period recurring profit or loss for thecurrent period
External donation 13126197.65 11692180.78 13126197.65
Asset retirement loss 35454250.29 22307439.97 35454250.29
Compensation liquidated 33398576.31 14784120.05 33398576.31
270Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
damages and fines
Other 4760201.73 19551144.99 4760201.73
Total 86739225.98 68334885.79 86739225.98
Other descriptions:
61. Income Tax Expenses
(1) Income Tax Expenses
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Current income tax expense 1318434467.92 1024939081.02
Deferred income tax expense 211260455.01 -383109737.84
Total 1529694922.93 641829343.18
(2) Reconciliation of Income Tax Expenses to the Accounting Profit
In RMB
Item Amount recognized in the current period
Total profits 16108738740.78
Income tax expense calculated based on statutory/applicable
tax rate 2416310811.12
Effect of different tax rates of subsidiaries operating in other
jurisdictions -3979377.54
Effect of adjustment on income tax for prior period -6069264.98
Effect of non-taxable income -531028394.10
Effect of non-deductible cost expense and loss 17281971.96
Effect of utilizing deductible loss not recognized for deferred
tax assets for prior period -294706265.10
Effect of deductible temporary difference or deductible loss not
recognized for deferred tax assets for the current period 500510840.21
Super deduction for R&D expenses -646390676.18
Equity exercise difference -24326254.68
Tax preferences for the employment of key groups of people -6659969.28
Pillar Two - Income Tax 107508710.47
Other 1242791.03
Income tax expenses 1529694922.93
Other descriptions:
Note 1: The Company falls within the scope of the legislative template for the global anti-base erosion rules (GloBE rules
hereinafter referred to as the Pillar Two legislative template). The Company is temporarily exempted from recognizing deferred
income tax assets or liabilities and disclosing relevant information arising from the implementation of the Pillar Two legislative
template and will account for Pillar Two income tax as current income tax when it arises. In 2024 certain jurisdictions where the
Company operates have implemented Pillar Two related regulations. Based on currently available information the Company has
assessed the potential risk exposure related to the current year's financial performance. The assessment results may not fully reflect
the future actual situation. Based on the assessment results the Company has accrued a Pillar Two top-up tax of RMB
271Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
107508710.47 in certain jurisdictions because the effective tax rate of Pillar Two in these specific jurisdictions is below 15% due
to specific tax incentives. Given that more countries are about to enact Pillar Two legislation the Company will continue to track
the relevant legislative developments in the jurisdictions where it operates to assess their potential future impact on the financial
statements.
62. Other Comprehensive Income
For details please refer to Note VII (43) Other Comprehensive Income.
63. Items in the Cash Flow Statement
(1) Cash Related to Operating Activities
Other cash received related to operating activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Special subsidies and grants 978065597.45 730512293.94
Lease income 4559939.73 86864463.17
Interest income 968280395.31 1005580557.62
Non-operating income 53603053.92 83854908.45
Reversal of restricted funds 1015829661.21
Recovery of current accounts and
disbursements 2669087285.32 2344231763.48
Total 5689425932.94 4251043986.66
Descriptions on other cash received related to operating activities:
Other cash paid related to operating activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Selling expenses 304480783.35 239741364.82
General and administrative expenses 1557776270.74 1354873317.36
R&D expenses 984404201.77 1079345043.17
Inter-company transactions 2196525468.36 1342835159.67
Transferred to restricted funds 2554396002.20
Non-operating expenses 51284975.69 46027445.82
Handling charges 12621880.62 38783312.39
Total 5107093580.53 6656001645.43
Descriptions on other cash paid related to operating activities:
(2) Cash Related to Investing Activities
Other cash received related to investing activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
272Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Reversal of restricted funds 15981629.58 427650270.00
Total 15981629.58 427650270.00
Significant cash receipts related to investing activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Descriptions on other cash received related to investing activities:
Other cash paid related to investing activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Payment for acquisition of equity
deposits 140474000.00
Transferred to restricted funds 93449200.00
Total 93449200.00 140474000.00
Significant cash payments related to investing activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Descriptions on other cash paid relating to investing activities:
(3) Cash Related to Financing Activities
Other cash received related to financing activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Short-term financing bonds 6300000000.00 2800000000.00
Reversal of restricted funds 701054171.58
Issuance of convertible bonds 457707250.00
Other 651417.41 30370799.83
Total 6758358667.41 3531424971.41
Descriptions on other cash received related to financing activities:
Other cash paid related to financing activities
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Short-term financing bonds 2100000000.00 5800000000.00
Leasing expenses 275253700.68 203632926.89
Financing fees 8781563.19 6203470.61
Refund of minority shareholder equity
payment 98000000.00
Total 2482035263.87 6009836397.50
Descriptions on other cash paid related to financing activities:
273Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Changes in liabilities generated from financing activities
□Applicable □N/A
64. Supplementary Information to Cash Flow Statement
(1) Supplementary Information to Cash Flow Statement
In RMB
Supplementary information Current period Prior period
1． Reconciliation of net profit to cash
flow from operating activities
Net profits 14579043817.85 12243213143.13
Add: Provision for impairment of
assets 1255556297.13 1295593436.93
Depreciation of fixed assets
depletion of oil and gas assets 10330052680.58 9619607257.96
depreciation of bearer biological assets
Depreciation of right of use assets 240337082.05 176390984.93
Amortization of intangible assets 260085188.58 233129170.31
Amortization of Long-term
deferred expenses 318136006.30 467456067.68
Loss from disposal of fixed
assets intangible assets and other long- -36626066.06 -122867177.52
term assets (“-” means income)
Loss from fixed assets retirement
(“-” means income) 35042673.64 16516224.41
Loss from changes in fair value
(“-” means income) 63167333.15 -210346832.18
Financial expenses (“-” means
income) 1462653485.39 1376870146.38
Investment loss (“-” means
income) -4546940655.44 -1771282791.44
Decrease in deferred income tax
assets (“-” means increase) 983198754.74 339083213.97
Increase in deferred tax liabilities
(“-” means decrease) 916326231.88 -694171671.54
Decrease in inventories (“-”
means increase) -2032345016.57 7239478351.05
Decrease in operating receivables
(“-” means increase) -23567944319.50 2054810808.92
Increase in operating accounts
payable (“-” means decrease) 26857164714.81 -4658419921.83
Other
Net cash flow from operating
activities 27116908208.53 27605060411.16
2． Significant investing and financing
activities that do not involve cash
receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
274Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Fixed assets acquired under finance
leases
3． Net changes in cash and cash
equivalents:
Closing balance of cash 47267103006.38 29684152320.65
Less: Opening balance of cash 29684152320.65 17312418429.51
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
equivalents 17582950685.73 12371733891.14
(2) Net Cash Paid for Obtaining Subsidiaries in the Current Period
In RMB
Amount
Cash or cash equivalents paid in the current period for business
combinations occurring in the current period 2127571639.64
Among which
Including: Lisheng Intelligent Technology (Shanghai) Co. Ltd. 100000000.00
CosmoCorporationCaymanLimited 515061750.00
Luxis Hongkong Co. Ltd. 1043273432.98
Luxis Singapore Co. Ltd. 469236456.66
Cosmic M.E. Inc.Less: Cash and cash equivalents held by subsidiaries on the
acquisition date 398415130.53
Among which
Including: Lisheng Intelligent Technology (Shanghai) Co. Ltd. 3957029.40
CosmoCorporationCaymanLimited 114420250.27
Luxis Hongkong Co. Ltd. 179916276.76
Luxis Singapore Co. Ltd. 96057483.11
Cosmic M.E. Inc. 4064090.99
Among which
Net cash paid for obtaining subsidiaries 1729156509.11
Other descriptions:
Note 1: The Company acquired Cosmic M.E. Inc. in the current period and obtained control through capital increase.Note 2: The cash paid for acquiring Viant Communications (Hong Kong) Co. Limited in the current period is less than the
consolidation cost which is due to the equity acquisition deposit paid in the previous period being converted into equity payment.
(3) Composition of Cash and Cash Equivalents
In RMB
Item Closing balance Opening balance
I. Cash 47267103006.38 29684152320.65
Including: Cash 397054.85 376233.09
275Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Including: Cash on hand 47209722547.17 29683776087.56
Other monetary funds available
for payment at any time 56983404.36
III. Closing balance of cash and cash
equivalents 47267103006.38 29684152320.65
(4) Restricted Cash and Cash Equivalents Included in Cash and Cash Equivalents
In RMB
Reasons for still being
Item Current period Prior period classified as cash and cash
equivalents
(5) Cash and Cash Equivalents not Classified as Monetary Funds
In RMB
Reasons for not being
Item Current period Prior period classified as cash and cash
equivalents
Restricted cash due to
Other monetary funds 1092552986.55 3935387136.86 opening bills letters of credit
etc.Total 1092552986.55 3935387136.86
Other descriptions:
None.
(6) Other Significant Activity Explanations
1. Supplier financing arrangements
(1) Terms and conditions of supplier financing arrangements (e.g. extension of payment terms and provision of guarantees
etc.)
The Company handles reverse factoring business through the supply chain finance service platform provided by factoring
companies and provides factoring services to relevant suppliers. Factoring companies agree to accept the accounts receivable of
designated suppliers from the Group due to sales of goods or provision of services to the Company and simultaneously provide
financing services to relevant suppliers. Suppliers can decide whether to factor or not. Participating suppliers can receive payment
from the bank in advance. According to the agreement between the Company and the financial service platform the relevant
accounts payable will be paid to the factoring company within 1-12 months after the digital certificate is issued by the platform or
the supplier's factoring financing is disbursed. The payment terms between the Company and suppliers have not changed due to
this reverse factoring arrangement and the Company has not provided any guarantee to the bank.
(2) Financial liabilities subject to supplier financing arrangements
Presentation item Closing balance Balance at the endof last year
Accounts payable 128922854.80
Including: amounts received by suppliers from financing
providers 128922854.80
(3) Payment due date range
Closing
Financial liabilities subject to supplier financing arrangements Between 1-12 months after the
276Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Closing
platform issues digital certificates and
suppliers' factoring financing is
disbursed
Comparable financial liabilities not subject to supplier financing Between 1-12 months after
arrangements receiving invoices
65. Notes on Changes in Owners' Equity Statement Items
Explanation of the names and amounts of "Other" items adjusted to the balance at the end of the previous year etc.:
None.
66. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
In RMB
Item Closing balance in foreigncurrency Exchange rate Closing balance in RMB
Cash and bank balances 39277668276.45
Including: USD 5372558785.92 7.1884 38620101576.74
EUR 6246485.86 7.5257 47009178.65
HKD 47709974.62 0.9260 44179436.50
JPY 102005692.99 0.0462 4716029.20
TWD 1764783070.97 0.2229 393370146.52
VND 137382460070.67 0.0003 38879236.20
KRW 2653753059.94 0.0049 13104232.61
GBP 139542.05 9.0765 1266553.42
INR 123447826.93 0.0854 10539605.12
SGD 63980.08 5.3214 340463.61
MXN 273957978.89 0.3498 95823104.15
THB 39215354.33 0.2126 8338713.73
Accounts receivable 19590197020.50
Including: USD 2694804022.42 7.1884 19371329234.75
EUR 670428.42 7.5257 5045443.18
HKD 1383609.81 0.9260 1281222.68
JPY 68472922.44 0.0462 3165708.62
TWD 722757926.78 0.2229 161102741.88
VND 4085726183.75 0.0003 1156260.51
KRW 3434507.90 0.0049 16959.60
GBP 5571.56 9.0765 50570.27
INR 551072056.99 0.0854 47048879.01
Long-term borrowings 309568812.01
Including: USD
EUR
HKD
JPY 112899000.00 0.0462 5219659.47
TWD 1365406696.01 0.2229 304349152.54
277Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Other receivables 118367962.10
Including: USD 12576879.97 7.1884 90407644.01
EUR 3207.31 7.5257 24137.25
HKD 4461341.95 0.926 4131202.64
JPY 44108439.58 0.0462 2039265.49
TWD 44220276.00 0.2229 9856699.52
VND 4261767491.17 0.0003 1206080.20
KRW 132462687.32 0.0049 654100.75
GBP 40.69 9.0765 369.32
INR 40885795.82 0.0854 3490706.59
SGD 35700.01 5.3214 189974.04
MXN 527803.00 0.3498 184611.24
THB 29078254.93 0.2126 6183171.05
Short-term borrowings 250853772.32
Including: USD 29867065.35 7.1884 214696412.59
TWD 162213368.01 0.2229 36157359.73
Accounts payable 34316316571.00
Including: USD 4679087617.77 7.1884 33635153431.56
EUR 1361683.17 7.5257 10247619.07
HKD 53608905.43 0.926 49641846.43
JPY 2002144712.63 0.0462 92565156.50
TWD 249123286.99 0.2229 55529580.67
VND 1212685614452.30 0.0003 343190028.89
KRW 48890263.26 0.0049 241420.12
GBP 4785.00 9.0765 43431.05
INR 51940867.92 0.0854 4434555.48
SGD 297125.61 5.3214 1581124.22
MXN 2521497.69 0.3498 881951.81
THB 577534813.46 0.2126 122806425.20
Other payables 87142766.84
Including: USD 6601029.44 7.1884 47450840.01
EUR 14650.75 7.5257 110257.15
HKD 9363973.61 0.926 8671039.56
JPY 144694354.81 0.0462 6689654.11
TWD 51752748.99 0.2229 11535687.75
VND 1725463321.55 0.0003 488306.12
KRW 15807432.16 0.0049 78057.10
GBP 91380.08 9.0765 829411.30
INR 1533289.06 0.0854 130907.62
SGD 45143.69 5.3214 240227.63
MXN 18483326.26 0.3498 6464968.48
THB 20856453.94 0.2126 4434895.51
CAD 3666.40 5.0498 18514.51
Other descriptions:
(2) Descriptions on Overseas Business Entities Including with Respect to Significant Overseas Business
Entities Disclosure of their Overseas Main Business Place Functional Currency and Selection Basis and
the Reasons for Changes in Functional Currency (If any)
□Applicable □N/A
278Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Names of important overseasMain place of Functional Basis for selecting functionalWhether functional currency has
operating entities business currency currency changed
Luxshare-ICT (Vietnam)Vietnam Vietnamese Legal currency of the countryLimited Dong where registered No
Luxshare-ICT (Van Trung)Vietnam Vietnamese Legal currency of the countryCompany Limited Dong where registered No
Luxshare-ICT (Nghe An)Vietnam Vietnamese Legal currency of the countryLimited Dong where registered No
Main currency used for
Luxshare Precision Limited Hong Kong US Dollar business income andNo
expenditure
67. Leases
(1) The Company as Lessee
□Applicable □N/A
Variable lease payments not included in lease liability measurement
□Applicable □N/A
Lease expense for short-term leases or low-value assets with simplified treatment
□Applicable □N/A
Item Current period Prior period
Interest expense on lease liabilities 36018332.18 27150426.74
Simplified short-term lease expenses recognized in the
cost of related assets or in current period profit or loss 117612055.32 201471466.53
Simplified lease expenses for low-value assets recognized
in the cost of related assets or in current period profit or loss
(excluding short-term lease expenses for low-value assets)
Variable lease payments not included in lease liability
measurement recognized in the cost of related assets or in
current period profit or loss
Including: Portion generated from sale and leaseback
transactions
Income from subleasing right-of-use assets acquired
Total cash outflow related to leases 392865756.00 405104393.42
Related profit or loss generated from sale and leaseback
transactions
Cash inflows from sale and leaseback transactions
Cash outflows from sale and leaseback transactions
Sale and leaseback transactions involved
68. Others
None.VIII. R&F Expenditures
In RMB
279Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Item Amount recognized in the current period Amount recognized in the prior period
Personnel expenses 4743098552.35 4474219036.60
Mould and material expenses 1532623500.70 1223716713.86
Depreciation and amortization expenses 905914983.86 1071507770.65
Consumables and miscellaneous 414999915.67 298285961.53
Repair and inspection 440348249.99 373156578.61
Service fees 71461490.74 206099670.82
Utilities 97573364.08 126487095.42
Transportation and travel expenses 67647210.31 55143408.18
Commercial insurance 5138622.27 4193418.58
Leasing expenses 28591943.61 72638748.64
Other expenses 248559597.88 283319129.96
Total 8555957431.46 8188767532.85
Including: Expense research and
development costs 8555957431.46 8188767532.85
Capitalized research and
development expenditures 0.00 0.00
IX．Changes in Scope of Consolidation
1. Business Combination Not Involving Enterprises under Common Control
(1) Business Combination Not Involving Enterprises under Common Control in the Current Period
In RMB
Revenue Net profit Cash flow
of the of the of the
Time of Cost of Proportio Method Basis for acquired acquired acquiredName of
combined acquisitio acquisitio n of
of Acquisiti determini entity entity entity
party n of n of equity
acquisitio ng the from from from
equity equity acquired n of
on date acquisitio acquisitio acquisitio acquisitio
equity n date n date to n date to n date to
end of end of end of
period period period
Lisheng
Intelligent
Technolo January 2 1000000 Cash - -
gy 2024 00.00 100.00% acquisitio
January 2 Obtaining 3120459
2024 control 6.10 8315419 9855842
(Shanghai n 3.02 8.49
) Co. Ltd.CosmoCo
rporation April 22 5150617 Cash100.00% acquisitio April 22 Obtaining 1114748 4548557 9473351CaymanL 2024 50.00 n 2024 control 690.65 1.63 9.65imited
Luxis
Hongkon May 2 1184927 Cash May 2 Obtaining 3630932 3087807 -
g Co. 2024 432.98 100.00% acquisition 2024 control 757.18 9.95
5282813
Ltd. 44.88
Luxis
Singapore May 2 4692364
Cash -
2024 56.66 100.00% acquisitio
May 2 Obtaining 3007695 4820587
Co. Ltd. n 2024 control 320.87 5.62
1833392
34.89
Cosmic July 1 3631146 Cash July 1 Obtaining 5948004 - -
M.E. Inc. 2024 .16 71.43% acquisition 2024 control .10
4533485735994.2.352
Other descriptions:
280Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Consolidation Cost and Goodwill
In RMB
Lisheng Intelligent
Consolidation cost Technology CosmoCorporation Luxis Hongkong Luxis Singapore(Shanghai) Co. CaymanLimited Co. Ltd. Co. Ltd. Cosmic M.E. Inc.Ltd.--Cash 100000000.00 515061750.00 1184927432.98 469236456.66 3631146.16
--Fair value of
non-cash assets
--Fair value of
liabilities issued or
assumed
--Fair value of
equity instruments
issued
--Fair value of
contingent
consideration
--Fair value of
equity held before
the acquisition
date at the
acquisition date
--Other
Total consolidation
cost 100000000.00 515061750.00 1184927432.98 469236456.66 3631146.16
Less: Share of fair
value of
identifiable net -39752637.63 512114358.56 1176062949.84 463762578.76 3999223.13
assets acquired
Goodwill/Amount
by which
consolidation cost
is less than the 139752637.63 2947391.44 8864483.14 5473877.90 -368076.97
share of fair value
of identifiable net
assets acquired
Method for determining the fair value of the consolidation cost:
Explanation of contingent consideration and its changes
Main reasons for the formation of significant goodwill:
Other descriptions:
281Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Identifiable Assets and Liabilities of the Acquired Entity at the Acquisition Date
In RMB
Lisheng Intelligent
Technology CosmoCorporationC Luxis Hongkong Luxis Singapore Co. Cosmic M.E. Inc.(Shanghai) Co. Ltd. aymanLimited Co. Ltd. Ltd.Fair Carrying Carrying Carrying Carrying Carrying
value at amount
Fair Fair Fair Fair
at value at
amount value at amount value at amountat at at value at
amount
acquisiti at
on date acquisiti
acquisiti acquisiti acquisiti acquisiti
on date on date
acquisiti acquisiti acquisiti acquisiti
on date on date on date on date on date on date on date
Assets: 228816 228816 879611 853868 163639 156369 107135 105283 199898 20802512.24 12.24 550.37 303.58 6531.85 3924.93 3171.91 8755.21 84.41 71.37
Cash
and bank 395702 395702 119806 119806 179916 179916 960574 960574 406409 406409
balances 9.40 9.40 825.67 825.67 276.76 276.76 83.11 83.11 0.99 0.99
Receiva 135381 135381 142921 142921 148859 148859
bles 3.84 3.84 850.95 850.95 2.73 2.73
Inventor 164892 157968 345647 345647 471016 469800 576108 783698
ies 270.81 045.17 441.83 441.83 446.47 198.35 5.09 7.93
Fixed 385583 385583 127662 109223 519887 479977 377397 362773 124289 438377.assets 4.00 4.00 794.53 016.33 515.10 318.58 984.53 665.15 9.21 07
Intangibl 198712 198712 463557 425632 329161 123689. 572010 304625 458693.e assets 3.17 3.17 2.28 9.33 00.00 60 0.00 0.80 74
Prepaym 591861 591861 355157 355157 159225 159225 426901. 426901. 167281 167281
ents 1.62 1.62 3.11 3.11 5.82 5.82 23 23 2.53 2.53
Right-
of-use 110938 110938 673243 673243 868830 868830 350502 350502
assets 7.15 7.15 17.87 17.87 65.86 65.86 41.36 41.36
Other 469981 469981 248816 248816 469553 469553 856840 856840 530171 530171
assets 3.06 3.06 345.15 345.15 876.48 876.48 15.21 15.21 0.14 0.14
Liabiliti 626342 626342 367497 367497 460333 460333 607590 607590 143909 143909
es: 49.87 49.87 191.81 191.81 582.01 582.01 593.15 593.15 72.02 72.02
Borrowi 644444 644444 732924 732924
ngs 79.99 79.99 1.58 1.58
Payables 205643. 205643. 137012 137012 182373 182373 172778 172778 463501 46350184 84 030.80 030.80 349.56 349.56 987.06 987.06 3.47 3.47
Deferred
tax 899995 899995 436946. 436946.liabilitie 7.55 7.55 37 37
s
Other 490473 490473 596390 596390 282208 282208 340660 340660
payables 60.80 60.80 40.82 40.82 7.11 7.11 000.00 000.00
Other
liabilitie 133812 133812 974016 974016 275138 275138 941516 941516 198977 198977
s 45.23 45.23 82.65 82.65 145.34 145.34 06.09 06.09 0.60 0.60
Net - -397526 397526 512114 486371 117606 110336 463762 445248 559891 641159assets 37.63 37.63 358.56 111.77 2949.84 0342.92 578.76 162.06 2.39 9.35
Less:
Minority 159968 183187
interests 9.26 3.92
Net - -
assets 397526 397526 512114 486371 117606 110336 463762 445248 399922 457972
acquired 37.63 37.63 358.56 111.77 2949.84 0342.92 578.76 162.06 3.13 5.43
Method for determining the fair value of identifiable assets and liabilities:
Contingent liabilities of the acquired entity assumed in the business combination:
282Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Other descriptions:
（4) Other Descriptions:On September 30 2024 the Company acquired 100% equity of Xinhao Optoelectronics (Dongguan) Co. Ltd. which was
included in the scope of consolidation. The acquisition consideration was RMB 52470000.00. According to Accounting
Standards Interpretation No. 13 for transactions not under common control the Company may choose to use the simplified
judgment method of "concentration test" when determining whether the acquired asset portfolio constitutes a business. In
conducting a concentration test if the fair value of the total assets acquired by the acquirer is almost equivalent to the fair value of
a single identifiable asset or a group of similar identifiable assets among them then the portfolio passes the concentration test and
should be judged not to constitute a business. When acquiring 100% equity of Xinhao Optoelectronics (Dongguan) Co. Ltd. the
proportion of the target company's construction in progress and intangible assets in its total assets reached 94.26%. This
transaction passed the concentration test and was judged not to constitute a business. Therefore the purchase cost is allocated
based on the relative fair value of the various assets and liabilities acquired on the purchase date and is not accounted for
according to the accounting method for business combinations.
2. Changes in Consolidation Scope for Other Reasons
Descriptions on changes in the scope of consolidation for other reasons (such as the establishment of new subsidiaries liquidation
of subsidiaries etc.) and related situations:
1. The Company’s changes in scope of consolidation caused by newly established subsidiaries in 2024 are stated as follows:
Company Date of establishment
Luxshare Precision Industry (Lu'an) Co. Ltd. February 09 2024
Stellar Prosperity LLC May 07 2024
Time Interconnect Singapore Pte. Ltd. September 05 2024
Shanghai Lilinxunda Smart Terminal Co. Ltd. June 03 2024
Lilinxunda Smart Terminal (Jiashan) Co. Ltd. August 06 2024
Time Interconnect America Inc July 18 2024
DA CHUANG PRECISION LIMITED July 23 2024
Time Interconnect MedTech UK Limited September 12 2024
Da Chuang Investment Limited September 25 2024
Luxshare Energy (Jiangxi) Co. Ltd. March 20 2024
Chuzhou Luxshare Technologies Co. Ltd. January 24 2024
LUXSHARE TECHNOLOGIES SINGAPORE PTE. LTD. May 28 2024
Luxcase Precision Co. Ltd. January 15 2024
Luxcase Korea Co. Ltd. July 15 2024
Lijing Precision Technology (Zhejiang) Co. Ltd. June 20 2024
Luxshare Automotive Technology (Jiangsu) Co. Ltd. December 10 2024
Lide Technology (Vietnam) Co. Ltd. August 02 2024
2. Changes in the scope of consolidation due to the cancellation of subsidiaries by the Company in 2024 are as follows:
Company Cancellation Date
Merry Electronics (Shanghai) Co. Ltd. July 25 2024
Rugao Luxshare Enterprise Management Services October 09 2024
Partnership (Limited Partnership)
283Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Lianxun Smart Equipment (Rugao) Co. Ltd. July 01 2024
Huizhi Software Technology (Huizhou) Co. Ltd. June 07 2024
Huiju Robotics Technology (Shanghai) Co. Ltd. April 26 2024
3. Others
On September 30 2024 the Company acquired 100% equity of Xinhao Optoelectronics (Dongguan) Co. Ltd. which was
included in the scope of consolidation. The acquisition consideration was RMB 52470000.00. According to Accounting
Standards Interpretation No. 13 for transactions not under common control the Company may choose to use the simplified
judgment method of "concentration test" when determining whether the acquired asset portfolio constitutes a business. In
conducting a concentration test if the fair value of the total assets acquired by the acquirer is almost equivalent to the fair value of
a single identifiable asset or a group of similar identifiable assets among them then the portfolio passes the concentration test and
should be judged not to constitute a business. When acquiring 100% equity of Xinhao Optoelectronics (Dongguan) Co. Ltd. the
proportion of the target company's construction in progress and intangible assets in its total assets reached 94.26%. This
transaction passed the concentration test and was judged not to constitute a business. Therefore the purchase cost is allocated
based on the relative fair value of the various assets and liabilities acquired on the purchase date and is not accounted for
according to the accounting method for business combinations.X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the Enterprise Group
In RMB
Subsidiaries Registered capital Main place Place of Nature of
Shareholding ratio Method of
of business registration business Direct Indirect acquisition
Luxshare Precision USD 9 million and Hong Kong Hong Kong Investment 100.00% Establishment
Technology Co. Ltd. RMB 100 million consulting
Taiwan Luxshare NT$618.758 million Taiwan Taiwan Marketing 100.00% Establishment
Precision Limited business
LuxshareICT Inc. USD 2 million United United Marketing 100.00% Establishment
States States business
LUXSHARE-ICT GBP 100 UK UK Marketing 100.00% Establishment
EUROPE LIMITED business
Luxshare Precision USD 5 million Hong Kong Hong Kong Trade 100.00% Establishment
Limited
Yunding Technology USD 7.58853 million Hong Kong Hong Kong Investment 100.00% Establishment
Co. Ltd. consulting
Huzhou Jiuding RMB 30800000 Huzhou Huzhou Processing 100.00% Business
Electronic Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
284Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
control
LUXSHARE-ICT JPY 80 million Japan Japan Marketing 80.00% Establishment
Co. Ltd. business
Korea LuxshareICT KRW 545750000 Korea Korea Marketing 100.00% Establishment
Co. Ltd business
Luxshare India NPR557500000 India Chennai Processing 100.00% Establishment
Private Limited and
manufacturing
Luxshare Precision USD 100 Hong Kong Hong Kong Investment 100.00% Establishment
Investment Co. Ltd. consulting
Luxis Technology USD 1.5 million Hong Kong Hong Kong Investment 100.00% Establishment
Limited consulting
Luxis Singapore Co. SGD 32.2 million Singapore Singapore Investment 100.00% Business
Ltd consulting combination
involving
enterprises
not under
common
control
Luxis Dezhou Co. USD 32 million Dezhou Dezhou Processing 100.00% Business
Ltd and combination
manufacturing involving
enterprises
not under
common
control
Luxis Hongkong Co. HKD 10000 Hong Kong Hong Kong Investment 100.00% Business
Ltd consulting combination
involving
enterprises
not under
common
control
Luxis Beijing Co. USD 38000000 Beijing Beijing Processing 100.00% Business
Ltd and combination
manufacturing involving
enterprises
not under
common
control
Cosmo Corporatrion USD 200000 Cayman Cayman Investment 100.00% Business
Cayman Limited consulting combination
involving
enterprises
not under
common
control
Cosmo International USD 50000 BVI BVI Investment 100.00% Business
Limited consulting combination
involving
enterprises
not under
285Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
common
control
Cosmo Supply HKD 13372300 Hong Kong Hong Kong Trade 100.00% Business
Limited combination
involving
enterprises
not under
common
control
Cosmo Crew Limited HKD 50000 Hong Kong Hong Kong Investment 100.00% Business
consulting combination
involving
enterprises
not under
common
control
Cosmo Co USA Inc USD 1000000 United United Investment 100.00% Business
States States consulting combination
involving
enterprises
not under
common
control
Cosmo Industrial USD 11000000 Dongguan Dongguan Processing 100.00% Business
(Dongguan) Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Cosmo THB 600000000 Thailand Thailand Processing 100.00% Business
Manufacturing and combination
Thailand Co Limited manufacturing involving
enterprises
not under
common
control
Cosmo Lab Inc USD 1000000 United United Investment 100.00% Business
States States consulting combination
involving
enterprises
not under
common
control
Luxshare Lanto India INR 1400000 India India Processing 100.00% Establishment
Private Limited and
manufacturing
TIME Interconnect HKD 19459520 Cayman Cayman Investment 70.85% Business
Technology Limited consulting combination
involving
enterprises
not under
common
control
Huaxun Cable Co. HKD 8390000 BVI BVI Investment 70.85% Business
Ltd. consulting combination
286Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
involving
enterprises
not under
common
control
Linkz International HKD 10000 Hong Kong Hong Kong Trade 70.85% Business
Limited combination
involving
enterprises
not under
common
control
Huaxun Industrial USD 30000000 Suzhou Suzhou Processing 70.85% Business
(Suzhou) Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Huaxun Hong Kong HKD 10000000 Hong Kong Hong Kong Investment 70.85% Business
Limited consulting combination
involving
enterprises
not under
common
control
Lingxun Wire USD 15000000 Shanghai Shanghai Processing 67.31% Business
Industry (Shanghai) and combination
Co. Ltd. manufacturing involving
enterprises
not under
common
control
HOVER HKD 8000000 Hong Kong Hong Kong Investment 70.85% Business
MANUFACTURING consulting combination
COMPANY involving
LIMITED enterprises
not under
common
control
Hover (Kunshan) HKD 30000000 Kunshan Kunshan Processing 70.85% Business
Electronic Material and combination
Co. Limited manufacturing involving
enterprises
not under
common
control
Kunshan Deqin RMB 1000 Kunshan Kunshan Processing 70.85% Business
Machinery Limited and combination
manufacturing involving
enterprises
not under
common
control
Time Interconnect HKD 77934 BVI BVI Investment 70.85% Business
Investment Limited consulting combination
involving
enterprises
not under
287Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
common
control
TIME Interconnect HKD 10000 Hong Kong Hong Kong Investment 70.85% Business
(HK) Limited consulting combination
involving
enterprises
not under
common
control
TIME Interconnect USD 28602860 Huizhou Huizhou Processing 70.85% Business
Technology and combination
(Huizhou) Limited manufacturing involving
enterprises
not under
common
control
TIME Interconnect HKD 2000000 Hong Kong Hong Kong Trade 70.85% Business
Industrial Co. Ltd. combination
involving
enterprises
not under
common
control
TIME Interconnect HKD 68935877 Hong Kong Hong Kong Trade 70.85% Business
Industrial Co. Ltd. combination
involving
enterprises
not under
common
control
Huizhou RMB 14525.01 Huizhou Huizhou Processing 70.85% Business
Chuangxiang and combination
Technology Limited manufacturing involving
enterprises
not under
common
control
Time Interconnect RMB 2997.53 Huizhou Huizhou Processing 70.85% Business
Wire Technology and combination
(Huizhou) Limited manufacturing involving
enterprises
not under
common
control
TIME Interconnect HKD 10000 Hong Kong Hong Kong Trade 70.85% Business
Server Technology combination
Co. Ltd. involving
enterprises
not under
common
control
Dachuang Precision RMB 20000 Dongguan Dongguan Processing 70.85% Establishment
Smart Manufacturing and
(Dongguan) Co. Ltd. manufacturing
288Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Da Chuang Precision RMB 20000 Kunshan Kunshan Processing 70.85% Business
Intelligent and combination
Manufacturing manufacturing involving
(Kunshan) Co. Ltd. enterprises
not under
common
control
Huiju Dachuang RMB 5000 Shanghai Shanghai Processing 70.85% Establishment
Information and
(Shanghai) Co. Ltd. manufacturing
Time Interconnect RMB 5000 Wan’an Wan’an Processing 70.85% Establishment
Technology (Jiangxi) and
Limited manufacturing
Time Interconnect RMB 25000 Kunshan Kunshan Processing 70.85% Establishment
Technology and
(Kunshan) Limited manufacturing
Linkz Cables Mexico MXN 50000 Mexico Mexico Processing 70.85% Establishment
S.deR.L. de C.V. and
manufacturing
Cosmic M.E. Inc. JPY 90000000 Japan Japan Processing 50.61% Business
and combination
manufacturing involving
enterprises
not under
common
control
Time Interconnect USD 50000 United United Processing 70.85% Establishment
America Inc States States and
manufacturing
DACHUANG USD 1286.9 Cayman Cayman Processing 70.85% Establishment
PRECISION and
LIMITED manufacturing
Time Interconnect GBP 50000 UK UK Processing 70.85% Establishment
MedTech UK and
Limited manufacturing
Da Chuang HKD 10000 Hong Kong Hong Kong Investment 70.85% Establishment
Investment Limited consulting
Singapore Luxshare USD 700000 Singapore Singapore Marketing 100.00% Establishment
Co. Ltd. business
ICT Legend S. DE MXN 246109367 Mexico Mexico Processing 100.00% Establishment
R.L. DE C.V. and
manufacturing
Stellar Prosperity USD 40000000 United United Processing 100.00% Establishment
LLC States States and
manufacturing
289Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Time Interconnect USD 400000 Singapore Singapore Investment 100.00% Establishment
Singapore Pte. Ltd. consulting
ICT-LANTO USD 153290322 Hong Kong Hong Kong Trade 100.00% Business
LIMITED(HK) combination
involving
enterprises
not under
common
control
SpeedTech Corp. TWD 1719573000 Taiwan Taiwan Processing 30.46% Business
and combination
manufacturing involving
enterprises
not under
common
control
Castle Rock Inc. TWD 104000000 Taiwan Taiwan Processing 12.18% Business
and combination
manufacturing involving
enterprises
not under
common
control
Cyber Acoustics USD 310400 United United Trade 21.32% Business
LLC(USA) States States combination
involving
enterprises
not under
common
control
Caldigit Holding USD 3000000 United Cayman Investment 12.18% Business
Limited States Islands consulting combination
involving
enterprises
not under
common
control
TaiHan Precision TWD 1500000000 Taiwan Taiwan Processing 8.83% Business
Technology Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Lide Technology USD 6000000 Vietnam Vietnam Processing 30.46% Establishment
(Vietnam) Co. Ltd. and
manufacturing
Luxshare-ICT VND Vietnam Vietnam Processing 100.00% Establishment
(Vietnam) Limited 2805633600000000 and
manufacturing
Luxshare-ICT (Van VND Vietnam Vietnam Processing 100.00% Establishment
Trung) Company 2613000000000000 and
Limited manufacturing
290Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Luxshare-ICT (Nghe VND Vietnam Vietnam Processing 100.00% Establishment
An) Limited 2724865040650000 and
manufacturing
Luxshare Precision RMB 50800 Kunshan Kunshan Processing 100.00% Establishment
Industry (Kunshan) and
Co. Ltd. manufacturing
Luxshare Precision RMB 7000 Baoding Baoding Processing 100.00% Establishment
Industry (Baoding) and
Co. Ltd. manufacturing
Xuancheng Luxshare RMB 10000 Xuancheng Xuancheng Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Luxshare Electronic RMB 10000 Shanghai Shanghai Processing 88.00% Establishment
(Shanghai) Co. Ltd. and
manufacturing
Luxshare Precision RMB 5000 Liyang Liyang Processing 100.00% Establishment
Industry (Jiangsu) and
Co. Ltd. manufacturing
Luxshare Precision RMB 5000 Yancheng Yancheng Processing 100.00% Establishment
Industry (Yancheng) and
Co. Ltd. manufacturing
Luxshare Precision RMB 2000 Hefei Hefei Processing 100.00% Establishment
Industry (Hefei) Co. and
Ltd. manufacturing
Luxshare Precision RMB 5000 Macheng Macheng Processing 100.00% Establishment
Industry (Hubei) Co. and
Ltd. manufacturing
Luxshare Automotive RMB 2000 Shanghai Shanghai Processing 90.00% Establishment
Technology and
(Shanghai) Co. Ltd. manufacturing
Luxshare Precision RMB 2000 Wuhu Wuhu Processing 100.00% Establishment
Industry (Wuhu) Co. and
Ltd. manufacturing
Luxshare Precision RMB 5000 Fuyang Fuyang Processing 100.00% Establishment
Industry (Anhui) Co. and
Ltd. manufacturing
Lisheng Intelligent RMB 10000 Shanghai Shanghai R&D Center 100.00% Business
Technology combination
(Shanghai) Co. Ltd. involving
enterprises
not under
common
control
Lisheng Intelligent RMB 5000 Chengdu Chengdu R&D Center 100.00% Business
Technology combination
(Chengdu) Co. Ltd. involving
enterprises
not under
common
control
291Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Luxshare Precision RMB 5000 Lu’an Lu’an Processing 100.00% Establishment
Industry (Lu'an) Co. and
Ltd. manufacturing
Lanto Electronic RMB 232000 Kunshan Kunshan Processing 100.00% Business
Limited and combination
manufacturing involving
enterprises
not under
common
control
Bozhou Lanto RMB 13000 Bozhou Bozhou Processing 100.00% Business
Electronic Limited and combination
manufacturing involving
enterprises
not under
common
control
Bozhou Xuntao RMB 200 Bozhou Bozhou Processing 100.00% Establishment
Electronics Co. Ltd. and
manufacturing
Suining Luxshare RMB 2000 Suining Suining Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Merry Electronics USD 91836735 Suzhou Suzhou Processing 51.00% Business
(Suzhou) Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Beijing Luxshare RMB 1000 Beijing Beijing Processing 100.00% Establishment
Acoustic Technology and
Co. Ltd. manufacturing
Shanxi Luxshare RMB 9000 Changzhi Changzhi Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Changzhi Luxshare RMB 2000 Changzhi Changzhi Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Lanto Electronic RMB 18000 Suzhou Suzhou Processing 100.00% Establishment
(Suzhou) Limited and
manufacturing
Wan’an Xiexun RMB 4000 Wan’an Wan’an Processing 100.00% Establishment
Electronic Co. Ltd. and
manufacturing
Xiexun Electronic RMB 11471.897944 Ji’an Ji’an Processing 100.00% Business
(Ji’an) Co. Ltd. and Combination
manufacturing Under
Common
Control
Yongxin County RMB 2000 Yongxin Yongxin Processing 100.00% Business
Boshuo Electronics County County and combination
Co. Ltd. manufacturing involving
enterprises
292Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
not under
common
control
Xinyu Xiexun RMB 1100 Xinyu Xinyu Processing 100.00% Establishment
Electronics Co. Ltd. and
manufacturing
Jiangxi ASAP RMB 1000 Ji’an Ji’an Processing 100.00% Establishment
Electronicss Co. Ltd. and
manufacturing
Fujian JKWiring USD 5600000 Fuzhou Fuzhou Processing 55.00% Business
Systems Co. Ltd.. and combination
manufacturing involving
enterprises
not under
common
control
Jianou JKWiring RMB 400 Jian’ou Jian’ou Processing 55.00% Establishment
Systems Co. Ltd. and
manufacturing
Luxshare Electronic RMB 220000 Kunshan Kunshan Processing 100.00% Business
Technology and combination
(Kunshan) Co. Ltd. manufacturing involving
enterprises
not under
common
control
Shenzhen Luxshare RMB 2800 Shenzhen Shenzhen Processing 100.00% Establishment
Acoustics and
Technology Ltd. manufacturing
Fengshun Luxshare RMB 1000 Fengshun Fengshun Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Luxshare Precision RMB 75800 Chuzhou Chuzhou Processing 100.00% Establishment
Industry (Chuzhou) and
Co. Ltd. manufacturing
Luxshare New RMB 18000 Chuzhou Chuzhou Processing 100.00% Establishment
Energy (Anhui) Co. and
Ltd. manufacturing
Luxshare Precision RMB 5000 Chuzhou Chuzhou Processing 100.00% Establishment
Industry and
(Mingguang) Co. manufacturing
Ltd.SuK EUR 25564 Germany Germany Processing 100.00% Business
Kunststofftechnik and combination
GmbH manufacturing involving
enterprises
not under
common
control
Luxshare Automation RMB 3000 Kunshan Kunshan Processing 70.00% Business
(Jiangsu) Ltd. and combination
manufacturing involving
enterprises
not under
293Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
common
control
Dongguan Luxshare RMB 100000 Dongguan Dongguan Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Guangdong Luxshare RMB 20000 Dongguan Dongguan Processing 51.00% Establishment
& Merry Electronics and
Co. Ltd. manufacturing
Merry Electronics RMB 10000 Huizhou Huizhou Processing 51.00% Business
(Huizhou) Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Xingning Luxshare- RMB 850 Xingning Xingning Processing 100.00% Establishment
ICT Electronics Co. and
Ltd. manufacturing
Xinhao RMB 5000 Dongguan Dongguan Processing 100.00% Business
Optoelectronics and combination
(Dongguan) Co. Ltd. manufacturing involving
enterprises
not under
common
control
Jiangxi Luxshare RMB 100000 Ji’an Ji’an Processing 100.00% Establishment
Intelligent and
Manufacture Co. manufacturing
Ltd.Shenzhen Luxshare RMB 3000 Shenzhen Shenzhen Processing 70.00% Establishment
Smart Life Co. Ltd. and
manufacturing
Luxshare Standard USD 1457640 Hong Kong Hong Kong Processing 70.00% Establishment
Limited (HK) and
manufacturing
Luxshare Precision RMB 10000 Enshi Enshi Processing 100.00% Establishment
Industry (Enshi) Co. and
Ltd. manufacturing
Luxshare Precision RMB 13000 Suzhou Suzhou Processing 100.00% Establishment
Industry (Suzhou) and
Co. Ltd. manufacturing
Luxshare iTech RMB 73000 Jiashan Jiashan Processing 100.00% Establishment
(Zhejiang) Co. LTD. and
manufacturing
Luxshare Electronic RMB 5000 Jiashan Jiashan Processing 100.00% Establishment
Services (Zhejiang) and
Co. Ltd. manufacturing
Shanghai Lilinxunda RMB 1000 Shanghai Shanghai Processing 75.00% Establishment
Smart Terminal Co. and
Ltd. manufacturing
294Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Lilinxunda Smart RMB 5000 Jiashan Jiashan Processing 75.00% Establishment
Terminal (Jiashan) and
Co. Ltd. manufacturing
Luxshare Intelligent RMB 130000 Changshu Changshu Processing 100.00% Establishment
Manufacture and
Technology manufacturing
(Changshu) Co. Ltd.
Dongguan Luxshare RMB 57106.3656 Dongguan Dongguan Processing 89.43% Establishment
Technology Co. Ltd. and
manufacturing
Luxshare RMB 500 Hong Kong Hong Kong Processing 89.43% Establishment
Technologies and
Limited manufacturing
Dongguan Xuntao RMB 53981.79555 Dongguan Dongguan Processing 89.43% Business
Electronics Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Xingning Luxshare- RMB 500 Xingning Xingning Processing 89.43% Establishment
ICT Electronics Co. and
Ltd. manufacturing
Suzhou Luxshare RMB 20000 Kunshan Kunshan Processing 89.43% Establishment
Technology Co. Ltd. and
manufacturing
Hangzhou Xuntao RMB 2500 Hangzhou Hangzhou Processing 89.43% Establishment
Technology Co. Ltd. and
manufacturing
Zhejiang Puxing RMB 1460 Zhejiang Zhejiang Processing 89.43% Business
Electronic and combination
Technology Co. Ltd. manufacturing involving
enterprises
not under
common
control
Dongguan Luxshare RMB 8000 Dongguan Dongguan Processing 89.43% Establishment
Smart-Link and
Electronic manufacturing
Technology Co.Ltd
Shenzhen Huarong RMB 1250 Shenzhen Shenzhen Processing 67.98% Business
Technology Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Dongguan Huarong RMB 2000 Dongguan Dongguan Processing 67.98% Business
Communications and combination
Technology Co. Ltd. manufacturing involving
enterprises
not under
common
control
295Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Dongguan Huarong RMB 1000 Dongguan Dongguan Processing 67.98% Business
Supply Chain and combination
Management Co. manufacturing involving
Ltd. enterprises
not under
common
control
Dongguan RMB 200 Dongguan Dongguan Processing 67.98% Business
Changlong and combination
Communications manufacturing involving
Technology Co. Ltd. enterprises
not under
common
control
Luxshare Rechuan RMB 10000 Huizhou Huizhou Processing 62.60% Establishment
Technology and
(Huizhou) Co. Ltd. manufacturing
Shenzhen Sanhe RMB 100 Shenzhen Shenzhen Processing 89.43% Business
Rongyu Technology and combination
Co. Ltd. manufacturing involving
enterprises
not under
common
control
Shantou Luxshare RMB 10000 Shantou Shantou Processing 89.43% Establishment
Technologies Co. and
Ltd. manufacturing
ASAP Technology RMB 10092.4134 Ji’an Ji’an Processing 89.43% Business
(Jiangxi) Co. Ltd. and combination
manufacturing involving
enterprises
not under
common
control
Luxshare RMB 5000 Xi’an Xi’an Processing 89.43% Establishment
Technologies (Xi'an) and
Co. Ltd. manufacturing
Luxshare USD 1000000 United United Marketing 89.43% Establishment
Technologies States States business
International Inc.Luxshare VND 105300000000 Vietnam Vietnam Processing 89.43% Establishment
Technologies and
(Vietnam) Co. ltd manufacturing
Luxshare MXN 40000 Mexico Mexico Processing 89.43% Establishment
Technologies Mexico and
S. de. R.L.de c.v. manufacturing
Luxshare Energy RMB 10000 Ji’an Ji’an Processing 89.43% Establishment
(Jiangxi) Co. Ltd. and
manufacturing
296Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Chuzhou Luxshare RMB 3000 Chuzhou Chuzhou Processing 89.43% Establishment
Technologies Co. and
Ltd. manufacturing
LUXSHARE USD 100 Singapore Singapore Processing 89.43% Establishment
TECHNOLOGIES and
SINGAPORE PTE. manufacturing
LTD.Changshu Luxshare RMB 66000 Changshu Changshu Investment 100.00% Establishment
Industrial Investment consulting
Management Co.Ltd.Yancheng Luxshare RMB 220000 Yancheng Yancheng Investment 9.09% Establishment
Enterprise consulting
Management
Services Partnership
(Limited Partnership)
Luxshare Smart RMB 220100 Yancheng Yancheng Investment 9.14% Establishment
Equipment consulting
(Yancheng) Co. Ltd.Jiashan Luxshare RMB 220000 Jiashan Jiashan Investment 9.09% Establishment
Enterprise consulting
Management
Services Partnership
(Limited Partnership)
Jiashan Luxshare RMB 220100 Jiashan Jiashan Investment 9.14% Establishment
Smart Equipment consulting
Co. Ltd.Kunshan Luxshare RMB 20000 Kunshan Kunshan Investment 100.00% Establishment
Enterprise consulting
Management
Development Co.Ltd.Kunshan Luxshare RMB 220000 Kunshan Kunshan Investment 9.09% Establishment
Enterprise consulting
Management
Services Partnership
(Limited Partnership)
Luxshare Smart RMB 220100 Kunshan Kunshan Processing 9.14% Establishment
Equipment and
(Kunshan) Co. Ltd. manufacturing
Luxshare Electronic RMB 24500 Enshi Enshi Processing 100.00% Establishment
Technology (Enshi) and
Co. Ltd. manufacturing
Luxis Technology RMB 24500 Kunshan Kunshan Processing 100.00% Establishment
(Kunshan) Co. Ltd. and
manufacturing
Luxcase Precision RMB 6264312296 Yancheng Yancheng Processing 49.75% Business
Technology and combination
(Yancheng) Co. Ltd. manufacturing involving
enterprises
not under
common
297Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
control
Ripei Computer RMB 3084.8 Shanghai Shanghai Processing 49.75% Business
Accessories and combination
(Shanghai) Co. Ltd. manufacturing involving
enterprises
not under
common
control
Ri Shan Computer RMB 143768.4 Jiashan Jiashan Processing 49.75% Business
Accessories (Jia and combination
Shan) Co. Ltd. manufacturing involving
enterprises
not under
common
control
Ri Ming Computer RMB 63892.8568 Shanghai Shanghai Processing 49.75% Business
Accessory and combination
(Shanghai) Co. Ltd. manufacturing involving
enterprises
not under
common
control
Shengrui Electronic RMB 6360.3 Shanghai Shanghai Processing 49.75% Business
Technology and combination
(Shanghai) Co. Ltd. manufacturing involving
enterprises
not under
common
control
Rida Intelligent RMB 250000 Rugao Rugao Processing 49.75% Business
Manufacture and combination
Technology (Rugao) manufacturing involving
Co. Ltd. enterprises
not under
common
control
Caseteck Singapore USD 730000 Singapore Singapore Investment 49.75% Business
PTE. LTD. consulting combination
involving
enterprises
not under
common
control
Luxshare Intelligent RMB 10000 Rugao Rugao Processing 49.75% Establishment
Manufacture and
Technology (Rugao) manufacturing
Co. LTD
Luxcase Precision RMB 50000 Kunshan Kunshan Processing 49.75% Establishment
Technology and
(Kunshan) Co. Ltd. manufacturing
298Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Luxcase Precision VND 172800000000 Vietnam Vietnam Processing 49.75% Establishment
Technology and
(Vietnam)Co. Ltd. manufacturing
Luxcase Precision USD 5 million Hong Kong Hong Kong Trade 49.75% Establishment
Co. Ltd.Luxcase Korea Co. USD 200000 Korea Korea Marketing 49.75% Establishment
Ltd. business
Lijing Precision RMB 50000 Jiashan Jiashan Processing 49.75% Establishment
Technology and
(Zhejiang) Co. Ltd. manufacturing
Luxis Precision RMB 30000 Kunshan Kunshan Processing 100.00% Establishment
Intelligent and
Manufacturing manufacturing
(Kunshan) Co. Ltd.Luxis Precision RMB 10000 Shantou Shantou Trade 100.00% Establishment
Intelligent
Manufacturing
(Shantou) Co. Ltd.Luxshare Smart RMB 20000 Kunshan Kunshan Processing 100.00% Establishment
Manufacturing and
Electronic Services manufacturing
(Kunshan) Co. Ltd.Liding Electronic RMB 25000 Dongguan Dongguan Processing 100.00% Establishment
Technology and
(Dongguan) Co. Ltd. manufacturing
Luxshare Precision RMB 5000 Nanjing Nanjing Processing 100.00% Establishment
Technology and
(Nanjing) Co. Ltd. manufacturing
Fengshun Luxshare RMB 25000 Fengshun Fengshun Processing 100.00% Establishment
Intelligent and
Manufacture Co. manufacturing
Ltd.Lisen Precision RMB 17000 Kunshan Kunshan Processing 76.47% Establishment
Technology and
(Kunshan) Co. Ltd. manufacturing
Huzhou Luxshare RMB 25000 Huzhou Huzhou Processing 100.00% Establishment
Precision Industry and
Co. Ltd. manufacturing
Dongguan Luxshare RMB 20000 Dongguan Dongguan Investment 100.00% Establishment
Holdings Co. Ltd. consulting
Luxshare Automotive RMB 50000 Jiangsu Jiangsu Processing 100.00% Establishment
Technology (Jiangsu) and
Co. Ltd. manufacturing
Descriptions on the difference between the shareholding ratio and the voting right ratio in the subsidiary:
None.
299Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Basis for holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
Basis for the control of significant structured entities included in the consolidation scope:
Basis for determining whether a company is an agent or a principal:
Other descriptions:
(2) Significant Non-wholly-owned Subsidiaries
In RMB
Profit or loss Dividends declared and
Subsidiaries Shareholding ratio of attributable to minority distributed to minority
Balance of minority
minority shareholders shareholders in the shareholders in the interest at the end of
current period current period the period
Luxcase Precision
Technology 50.25% 761376979.54 8415125932.92
(Yancheng) Co. Ltd.Descriptions on the difference between the shareholding ratio of minority shareholders and their voting right ratio in the subsidiary:
None.Other descriptions:
None.
(3) Main Financial Information of Significant Non-wholly-owned Subsidiaries
In RMB
Closing balance Opening balance
Non- Non-
Subsidiaries Current Non- Current Total Non- Current Total
assets current
Total liabilitie currentassets liabilitie liabilitie
Current
assets current
Total
assets liabilitie
current liabilitie
assets s liabilities s assets s s s
Luxcase
Precision 37161 118639 49025 31773 322650 25423 10372 35795 20145 206877
Technology 395425 13254. 308679 635007 491428 63095.7 036044 710992 747036 946853 541754 01739.8
(Yancheng) .48 31 .79 .01 088.73 4 .85 .02 .87 .72 886.17 9
Co. Ltd.In RMB
Amount recognized in the current period Amount recognized in the prior period
Total Cash flow Total Cash flow
Subsidiaries Operating Net profits comprehen from Operating comprehen fromincome sive operating income Net profits sive operating
income activities incomes activities
300Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Luxcase
Precision
Technology 91031818 15153107 16522002 88406598 79079113 19650342 20671104 65334721
(Yancheng) 462.24 52.67 87.07 14.27 772.15 91.16 20.31 94.48
Co. Ltd.Other descriptions:
2. Equity in Joint Ventures or Associates
(1) Summary Financial Information of Insignificant Joint Ventures and Associates
In RMB
Closing balance/Amount recognized in Opening balance/Amount recognized in
the current period the prior period
Joint ventures:
Total book value of investment 144667266.46 132877500.01
Total amount of the following items
calculated according to shareholding
ratio
--Net profit 17144827.70 15859552.50
--Total comprehensive income 17144827.70 15859552.50
Associates:
Total book value of investment 7343628667.55 4100064241.04
Total amount of the following items
calculated according to shareholding
ratio
--Net profit 3301007264.30 2028502057.39
--Other comprehensive income -6025193.24 -7598398.15
--Total comprehensive income 3294982071.06 2020903659.24
Other descriptions:
3. Others
None.XI. Government Grants
1. Government Grants Recognized as Receivables at the End of the Reporting Period
□Applicable □N/A
Reasons for not receiving government grants as expected at the anticipated timing
□Applicable □N/A
301Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2. Liabilities Related to Government Grant
□Applicable □N/A
In RMB
Amount of
Amount of non- Amountoperating transferred to Other
Accounting Opening newsubsidies for income other income changes for Closing
Related to
subject balance the current recognized for the the current balance
assets/incom
period for the current period
e
current period
period
Deferred 595323601. 225421929. 171636897. 649108632. Related to
income 05 08 69 44 assets
3. Government Grants Recognized in the Current Period's Profit or Loss
□Applicable □N/A
In RMB
Accounting subject Amount recognized in the current period Amount recognized in the prior period
Other income - Directly recorded 761501174.28 602278917.77
Offset financial expenses - Directly
recorded 850000.00 10000000.00
Other income - Transfer from deferred
income 171636897.69 188819870.75
Total 933988071.97 801098788.52
Other descriptions:
XII. Risks Associated with Financial Instruments
1. Types of Risks Generated by Financial Instruments
1． Credit Risk
Credit risks refer to the risks that one party to a financial instrument suffers financial losses due to the failure of the other
party to perform its obligations. The customer credit risks mainly faced by the Company come from credit sales. Before signing a
new contract the Company will assess the credit risks generated by new customers from perspectives such as external credit rating
and in some cases bank credit certification (when the same is available). The Company has a credit limit which is the maximum
amount without additional approval for each customer.The Company ensures that its overall credit risk is within the controllable range through quarterly monitoring of credit rating
of existing customers and monthly review of aging analysis of accounts receivable. Customers are grouped according to their
credit characteristics when the credit risks from them are monitored. Customers rated as “high risk” will be placed on the restricted
customer list and only with additional approval can the Company sell them on credit in the future period otherwise they must be
required to pay the corresponding amount in advance.
2. Liquidity Risk
302Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Liquidity risk refers to the risk of funds shortage when an enterprise is obligated to settle its obligations by delivering cash or
other financial assets.Our company's policy is to ensure sufficient cash to repay maturing debts. Liquidity risk is centrally controlled by our
company's finance department. The finance department monitors cash balances marketable securities that can be liquidated at any
time and rolling forecasts of cash flows for the next 12 months to ensure that the Company has sufficient funds to repay debts
under all reasonable forecasts. Simultaneously it continuously monitors compliance with loan agreements obtains commitments
from major financial institutions to provide sufficient standby funds to meet short-term and long-term funding needs.The financial liabilities of our company are listed below based on undiscounted contractual cash flows by maturity date:
Closing balance
Immedia
Item te Total
repayme Within 1 year 1-2 years 2-5 years
More than 5
years undiscounted Book value
nt contract amount
Notes 878335711.94 878335711.94 878335711.94
payable
Accounts 65087993138. 65087993138. 65087993138.payable 64 64 64
Other 502369570.62 502369570.62 502369570.62
payables
Short- 35355677012. 35355677012. 35313128924.term 42 42 26
borrowin
gs and
interest
Non- 2292266600.4 2292266600.4 2256471507.2
current 5 5 6
liabilities
due
within
one year
Long- 12988922040 6784208017 875752053. 20648882111. 19619741634.term .76 .24 82 82 77
borrowin
gs and
interest
Other 5075178904.1 5075178904.1 5039811780.8
current 1 1 2
liabilities
(short-
term
financing
notes)
Total 10919182093 12988922040 6784208017 875752053. 12984070305 128697852268.18 .76 .24 82 0.00 8.31
Balance at the end of last year
Immedia
Item te Total
repayme Within 1 year 1-2 years 2-5 years
More than 5
years undiscounted Book value
nt contract amount
Notes
payable 492585900.03 492585900.03 492585900.03
Accounts 45908515295. 45908515295. 45908515295.payable 43 43 43
Other
payables 406677940.53 406677940.53 406677940.53
Short-
term 20514182240. 20514182240. 20514182240.borrowin 47 47 47
gs
Current 2867295870.8 2867295870.8 2867295870.8
303Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Balance at the end of last year
Immedia
Item te Total
repayme Within 1 year 1-2 years 2-5 years
More than 5
years undiscounted Book value
nt contract amount
liabilities 9 9 9
due
within
one year
Long-
term
borrowin 1905178810. 9770446879. 363145600. 12038771289. 12038771289.gs and 77 15 00 92 92
interest
Other
current
liabilities
(short- 802722191.78 802722191.78 802722191.78
term
financing
notes)
Total 70991979439. 1905178810. 9770446879. 363145600. 83030750729. 83030750729.13 77 15 00 05 05
As of the end of this Annual Reporting period the balance of lease liabilities of the Company amounted to RMB
727982667.37 with an amount due within 1 year of RMB 153946615.16.
3. Market Risks
Market risks of financial instruments refer to the risks that the fair value or future cash flow of financial instruments will
fluctuate due to market price changes including exchange rate risk interest rate risk and other price risks.
(1) Interest Rate Risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes
in market interest rates.Fixed-rate and floating-rate interest-bearing financial instruments expose our company to fair value interest rate risk and cash
flow interest rate risk respectively. Our company determines the proportion of fixed-rate and floating-rate instruments based on
market conditions and maintains an appropriate mix of fixed and floating-rate instruments through regular reviews and monitoring.When necessary our company utilizes interest rate swap instruments to hedge interest rate risk.
(2) Exchange Rate Risk
Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flow will fluctuate due to the
change in foreign exchange rate.The Company continues to monitor the scale of foreign currency transactions and foreign currency assets and liabilities to
minimize exposure to foreign exchange risk. Additionally the Company may enter into forward foreign exchange contracts or
currency swap agreements to mitigate exchange rate risk. For the current and prior periods the Company has not entered into any
forward foreign exchange contracts or currency swap agreements.The foreign exchange risk faced by the Company primarily stems from financial assets and financial liabilities denominated
in US dollars. The amounts of foreign currency financial assets and foreign currency financial liabilities converted into Renminbi
are detailed in foreign currency monetary items.
(3) Other Price Risks
Other price risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to market
price changes other than exchange rate risk and interest rate risk.The other price risk faced by the Company primarily arises from investments in various equity instruments exposing the
Company to the risk of fluctuations in equity instrument prices.Item Closing balance Balance at the end of last year
Investment in other equity instruments 65001637.56 200829853.18
304Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Item Closing balance Balance at the end of last year
Total 65001637.56 200829853.18
2. Financial Assets
(1) Classification By Transfer Method
□Applicable □N/A
In RMB
Transfer methods Nature of transferred Amount of transferred Termination Basis for terminationfinancial assets financial assets confirmation status confirmation judgment
Sale Accounts receivable 24275201634.20 Termination confirmed Transfer of risks andreward
Discounting Transfer of risks and
endorsement Receivable financing 7017903704.22 Termination confirmed reward
Discounting
endorsement Notes receivable 509943952.93 Not terminated
Total 31803049291.35
(2) Financial Assets Terminated Due to Transfer
□Applicable □N/A
In RMB
Item Methods of financial asset Amount of financial assets Gains or losses related totransfer terminated for recognition termination recognition
Accounts receivable Sale 24275201634.20 -476778306.58
Receivable financing Discounting endorsement 7017903704.22 -318418774.19
Total 31293105338.42 -795197080.77
(3) Continued Involvement in Transferred Financial Assets
□Applicable □N/A
In RMB
Item Asset transfer method Amount of assets formed due Amount of liabilities formedto continued involvement due to continued involvement
Notes receivable Discounting endorsement 185108908.06 185108908.06
Total 185108908.06 185108908.06
Other descriptions:
305Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
XIII. Disclosure of Fair Value
1. Closing Fair Value of Assets and Liabilities Measured at Fair Value
In RMB
Closing fair value
Item
Level I Level II Level III Total
I. Continuous fair value
measurement -- -- -- --
(I) Held-for-trading
financial assets 102882710.63 1300228099.40 1403110810.03
1. Financial assets at
fair value through 102882710.63 1300228099.40 1403110810.03
profit or loss
(3) Derivative financial
assets 102882710.63 1300228099.40 1403110810.03
(III) Investment in
other equity 41321637.56 71443434.48 112765072.04
instruments
(III) Receivables
financing 1106284192.29 1106284192.29
(IV) Other non-current
financial assets 39311504.56 39311504.56
Total assets
continuously measured 41321637.56 102882710.63 2517267230.73 2661471578.92
at fair value
(VI) Held-for-trading
financial liabilities 155278918.84 155278918.84
Derivative
financial liabilities 155278918.84 155278918.84
Total liabilities
continuously measured 155278918.84 155278918.84
at fair value
II. Non-continuous fair
value measurement -- -- -- --
2. Basis for Determining the Market Price of the Items Continuously and Not Continuously Measured at
Fair Value at Level I
Level I inputs are quoted market price (unadjusted) in an active market for an identical asset or liability available at the date of
measurement.
3. Qualitative and Quantitative Information on the Valuation Techniques and Significant Parameters
Used for Recurring and Non-recurring Level II Fair Value Measurement Items
Relevant Level 2 inputs other than Level 1 inputs are inputs related to the asset or liability that are directly or indirectly
observable.
306Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
4. Valuation Technology and Qualitative and Quantitative Information of Important Parameters Used in
the Items Continuously and Not Continuously Measured at Fair Value at Level III
Level III inputs are unobservable inputs for the asset or liability.
5. Adjustment Information between the Opening Book Value and the Closing Book Value and the
Sensitivity Analysis of Unobservable Parameters for Items Continuously Measured at Fair Value at Level
III
None.
6. For Items Continuously Measured at Fair Value if There is Conversion between Different Levels in the
Current Period the Reasons for the Conversion and the Policy for Determining the Conversion Time
Point
None.
7. Changes in Valuation Technology in the Current Period and Reasons for Changes
None.
8. Fair Value of Financial Assets and Financial Liabilities Not Measured at Fair Value
None.
9. Others
None.XIV. Related Parties and Related-party Transactions
1. The Parent Company of the Company
Shareholding ratio Voting rights ratio
Name of parent Place of Nature of business Registered capital of the parent of the parentcompany registration company in the company in the
Company Company
Luxshare Limited Hong Kong Industry HKD10000 37.74% 37.74%
Descriptions on the parent company of the Company
As of December 31 2024 Luxshare Limited has pledged 32.81% of shares it held.The ultimate controller of the Company is WANG Laichun and WANG Laisheng.Other descriptions:
307Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2. Subsidiaries of the Company
Please refer to Note “X.1. Equity in subsidiaries”.
3. Joint Ventures and Associates of the Company
For details on the significant joint ventures or associates of the Company For details please refer to Note X 2 "Interests in joint
arrangements or associates".Other joint ventures or associates that have related-party transactions with the Company in the current period or formed a balance
due to related-party transactions with the Company in the prior period are as follows:
Name of joint venture or associate Relationship with the Company
Riyimao Industrial Co. Ltd. Joint-stock company of a majority-owned sub-subsidiary of theCompany
Assem Technology Co. Ltd. Joint-stock company of a majority-owned sub-subsidiary of theCompany
SpeedTech Energy Co. Ltd. Joint-stock company of a majority-owned sub-subsidiary of theCompany
Lihao Optoelectronics Technology (Nantong) Co. Ltd. Joint-stock company of a majority-owned sub-subsidiary of theCompany
MERRY& LUXSHARE (VIET NAM) Joint-stock company of a majority-owned sub-subsidiary of the
CO.LTD Company
Zhuhai Kinwong Flexible Circuit Co. Ltd. Associates of the Company
Lisheng Automotive Technology (Guangzhou) Co. Ltd. Associates of the Company
Other descriptions:
4. Other Related Parties
Name of other related parties Relationship between other related parties and the Company
BCS Automotive Technology (Shenzhen) Co. Ltd. An enterprise controlled by the Company’s parent company
Bisaisi Automotive Technology (Suzhou) Co. Ltd. An enterprise controlled by the Company’s parent company
Luxsan Technology (Kunshan) Co. Ltd. An enterprise controlled by the Company’s parent company
Luxsan Technology (Kunshan) Co. Ltd. An enterprise controlled by the Company’s parent company
Luxsan Investment (Jiangsu) Co. Ltd. An enterprise controlled by the Company’s parent company
Luxsan Intelligent Equipment (Kunshan) Co. Ltd. An enterprise controlled by the Company’s parent company
LUXSAN TECHNOLOGY LIMITED An enterprise controlled by the Company’s parent company
BCS Automotive Interface Solutions GmbH (Germany) An enterprise controlled by the Company’s parent company
BCS Automotive Interface Solutions US LLC (USA) An enterprise controlled by the Company’s parent company
BCS Automotive Interface Solutions
Romania s.r.l. (Romania) An enterprise controlled by the Company’s parent company
BCS Automotive Interface Solutions s.r.o. (Czech) An enterprise controlled by the Company’s parent company
BCS AIS Ensambles Mexico S. de R.L.de
C.V. (Mexico) An enterprise controlled by the Company’s parent company
BCS AIS JAPAN CO. LTD. An enterprise controlled by the Company’s parent company
Shishuo Electronics (Kunshan) Co. Ltd. An enterprise controlled by the Company’s parent company
Xianshuo Technology (Shanghai) Co. Ltd. An enterprise controlled by the Company’s parent company
Guangzhou Luxvisions Innovation Technology Limited Other related party of the Company
Luxvisions Innovation (Ji’an) Co. Ltd. Other related party of the Company
Luxvisions Innovation Technology Co. Ltd. Other related party of the Company
LUXVISIONS INNOVATION TECHNOLOGY
LIMITED Other related party of the Company
Xinguang Energy Technology (Anhui) Co. Ltd. Other related party of the Company
Dongguan Terry Leather Co. Ltd. Other related party of the Company
308Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Terry Smart Manufacturing (Dongguan) Technology Co. Ltd. Other related party of the Company
Teleray (Hong Kong) International Company Limited Other related party of the Company
Basibo Leather Goods (Guilin) Co. Ltd. Other related party of the Company
Dongguan Dubo Leather Goods Co. Ltd. Other related party of the Company
Dongguan Gaowei Optical Electronics Co. Ltd. Other related party of the Company
Gaowei Optical Electronics Co. Ltd. Other related party of the Company
Dongguan Liten Innovation Electronics Co. Ltd. Other related party of the Company
Shangrao City Luxvisions Innovation Technology Co. Ltd. Other related party of the Company
Xinhao Photoelectric Technology（HK）Limited Other related party of the Company
COWELL OPTIC ELECTRONICS LTD Other related party of the Company
Chery Automobile Co. Ltd. Other related party of the Company
Henan Chery Auto Co. Ltd. Other related party of the Company
Chery Commercial Vehicle (Anhui) Co. Ltd. Other related party of the Company
Chery New Energy Automobile Co. Ltd. Other related party of the Company
Anhui Zhuodun Safety Technology Co. Ltd. Other related party of the Company
Da'ao Automotive Products (Wuhu) Co. Ltd. Other related party of the Company
Southeast (Fujian) Automobile Industry Co. Ltd. Other related party of the Company
Ruijing Supply Chain Technology (Anhui) Co. Ltd. Other related party of the Company
Wuhu Ecotech Powertrain Co. Ltd. Other related party of the Company
Wuhu Qida Power Battery System Co. Ltd. Other related party of the Company
Wuhu Chery Automobile Parts Procurement Co. Ltd. Other related party of the Company
Shenzhen Xinhao Photoelectric Technology Limited Other related party of the Company
Dahao Technology (Dongguan) Co. Ltd. Other related party of the Company
Xinhao Optoelectronics (Enshi) Co. Ltd. Other related party of the Company
Xunmu Information Technology (Shanghai) Co. Ltd. Enterprise Controlled by the Actual Controller
Lishan Smart Manufacturing Technology (Guangdong) Co.Ltd. Enterprise Controlled by the Actual Controller
Other descriptions:
5. Related-Party Transactions
(1) Related-Party Transactions of Purchasing and Selling Goods Rendering and Accepting Services
Purchasing goods/accepting services
In RMB
Related party Related-party
Amount Whether the Amount
transactions recognized in the
Approved
transaction limit transaction limit is recognized in thecurrent period exceeded prior period
Riyimao Industrial Processing
Co. Ltd. services 11676783.04 No 8666666.79
Assem Technology Equipment and
Co. Ltd. appliances 21317.70 No 517891.33
Assem Technology
Co. Ltd. Purchasing goods 38009538.53 No 443692.28
Assem Technology
Co. Ltd. Service fees 200986.80 No 25501235.88
BCS Automotive
Technology Purchasing fixed
(Shenzhen) Co. assets No 221636.87
Ltd.Bisaisi Automotive
Technology Purchasing goods 4730893.90 30000000.00 No 18700732.83
(Suzhou) Co. Ltd.Bisaisi Automotive Purchasing fixed 404514.30 No
309Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Technology assets
(Suzhou) Co. Ltd.Guangzhou
Luxvisions
Innovation Purchasing goods 8970533.02 No
Technology
Limited
Guangzhou
Luxvisions
Innovation Service fees 3739220.73 No 3663133.48
Technology
Limited
Guangzhou
Luxvisions
Innovation Equipment No 76318.48
Technology
Limited
Luxvisions
Innovation (Ji’an) Rent and Utility
Co. Ltd. Expenses
1173816.51 No
Luxvisions
Innovation (Ji’an) Service fees No 33849.06
Co. Ltd.Luxvisions
Innovation Equipment and
Technology Co. appliances No 429489.75
Ltd.Lisheng
Automotive
Technology Purchasing goods 378662.72 No
(Guangzhou) Co.Ltd.LUXVISIONS
INNOVATION
TECHNOLOGY Purchasing goods 161635.61 No 457613.05
LIMITED
LUXVISIONS
INNOVATION Equipment and
TECHNOLOGY appliances No 914452.98
LIMITED
Luxsan
Technology
(Kunshan) Co. Utilities No 9658090.82
Ltd.Luxsan Investment Rent and Utility
(Jiangsu) Co. Ltd. Expenses 45621594.42 100000000.00 No 39528673.28
Luxsan Investment
(Jiangsu) Co. Ltd. Service fees 222657.40 No
Luxsan Intelligent
Equipment Purchasing fixed
(Kunshan) Co. assets 2746854.88 No
Ltd.Shishuo
Electronics
(Kunshan) Co. Purchasing goods 951574.04 No
Ltd.Shishuo
Electronics Purchasing fixed
(Kunshan) Co. assets 3433589.17 No
Ltd.Shishuo
Electronics Rent and Utility
(Kunshan) Co. Expenses 27913845.59 No
Ltd.Shishuo
Electronics Service fees 4455822.76 No
310Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(Kunshan) Co.Ltd.LUXSAN
TECHNOLOGY Purchasing goods 1243805181.85 1700000000.00 No 1189126782.26
LIMITED
MERRY&
LUXSHARE
(VIET NAM) Purchasing goods 273111739.58 No 71739173.68
CO.LTD
MERRY&
LUXSHARE Purchasing fixed
(VIET NAM) assets 137894.26 No
CO.LTD
BCS Automotive Purchasing goods
Interface Solutions services and fixed 3511373.54 120000000.00 No 36595812.14
GmbH (Germany) assets
BCS Automotive
Interface Solutions Purchasing goods 2742393.36 No 92923.55
US LLC (USA)
BCS Automotive
Interface Solutions Service fees 2069324.00 No
US LLC (USA)
BCS Automotive
Interface Solutions
Romania s.r.l. Purchasing goods 28954288.18 50000000.00 No 5410212.91
(Romania)
Xinguang Energy
Technology Outsourcing fees 534961.52 No 900429.00
(Anhui) Co. Ltd.
Shenzhen Xinhao
Photoelectric
Technology Purchasing goods 56882.00 No
Limited
Lihao
Optoelectronics
Technology Purchasing goods 2091516.75 No 4320397.20
(Nantong) Co.Ltd.Terry Smart
Manufacturing
(Dongguan) Purchasing goods 116366628.76 No 39367448.03
Technology Co.Ltd.Terry Smart
Manufacturing
(Dongguan) Service fees No 890219.06
Technology Co.Ltd.Terry Smart
Manufacturing
(Dongguan) Purchasing fixed
Technology Co. assets
730760.00 No 1726385.36
Ltd.Teleray (Hong
Kong)
International Purchasing goods 9753772.43 No 2709161.11
Company Limited
Dongguan Dubo
Leather Goods Purchasing goods 25798219.01 No
Co. Ltd.Basibo Leather
Goods (Guilin) Purchasing goods 769108.89 No
Co. Ltd.Chery Automobile
Co. Ltd. Service fees 126658.07 No
Chery New Energy Service fees 18795.20 No
311Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Automobile Co.Ltd.Chery Commercial
Vehicle (Anhui) Service fees 60000.00 No
Co. Ltd.Wuhu Chery
Automobile Parts
Procurement Co. Service fees 209339.88 No
Ltd.Ruijing Supply
Chain Technology Service fees 60878.81 No
(Anhui) Co. Ltd.
Southeast (Fujian)
Automobile Service fees 240000.00 No
Industry Co. Ltd.Dongguan Gaowei
Optical Electronics Service fees 8755540.47 25000000.00 No 11517032.81
Co. Ltd.Lishan Smart
Manufacturing
Technology Rent and Utility
(Guangdong) Co. Expenses
4058949.65 No 2389436.16
Ltd.Xunmu
Information
Technology Leasing fixed 196028.47 No
(Shanghai) Co. assets
Ltd.Schedule of Sales of Goods / Provision of Services
In RMB
Related party Related-party transactions Amount recognized in the Amount recognized in thecurrent period prior period
Assem Technology Co. Ltd. Other labors 2545941.86 2546700.11
Zhuhai Kinwong Flexible
Circuit Co. Ltd. Selling products
Shangrao City Luxvisions
Innovation Technology Co. Selling products 2031029.15 122520.00
Ltd.Shangrao City Luxvisions
Innovation Technology Co. Service fees 42090.58
Ltd.Guangzhou Luxvisions
Innovation Technology Selling fixed assets 24255.12 534229.50
Limited
Guangzhou Luxvisions
Innovation Technology Service fees 2843560.95
Limited
Guangzhou Luxvisions
Innovation Technology Selling products 196571675.28 132801682.91
Limited
LUXVISIONS
INNOVATION
TECHNOLOGY Selling products 328964.84
LIMITED
LUXVISIONS
INNOVATION
TECHNOLOGY Service fees 495622.71
LIMITED
Bisaisi Automotive
Technology (Suzhou) Co. Selling products 380631364.62 396983841.26
Ltd.Bisaisi Automotive
Technology (Suzhou) Co. Service fees
312Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Ltd.BCS Automotive Interface
Solutions GmbH (Germany) Selling products 376888.22 6727835.59
BCS Automotive Interface
Solutions Selling products 2848978.78 27529559.67
Romania s.r.l. (Romania)
BCS Automotive Interface
Solutions US LLC (USA) Selling products 36811529.54 24226761.76
BCS Automotive Interface
Solutions s.r.o. (Czech) Selling products 945269.99 94165.76
BCS AIS JAPAN CO. LTD. Service fees 91556.86
Luxsan Technology
(Kunshan) Co. Ltd. Selling products 49176148.86 78602371.08
Luxsan Technology
(Kunshan) Co. Ltd. Selling products 117362.28 36934393.03
Luxsan Intelligent Equipment
(Kunshan) Co. Ltd. Selling products 164568796.14 230417667.66
Luxsan Intelligent Equipment
(Kunshan) Co. Ltd. Service fees 22199376.38
Luxsan Intelligent Equipment
(Kunshan) Co. Ltd. Selling fixed assets 6855754.28
Luxsan Investment (Jiangsu)
Co. Ltd. Selling products 1988421.27 5047357.29
Luxsan Investment (Jiangsu)
Co. Ltd. Selling fixed assets 8710.00
LUXSAN TECHNOLOGY
LIMITED Selling fixed assets 8550535.36
LUXSAN TECHNOLOGY
LIMITED Selling products 1103511747.87 832394772.18
LUXSAN TECHNOLOGY
LIMITED Service fees 52026295.12
Shishuo Electronics
(Kunshan) Co. Ltd. Selling products 3993531.40
Xianshuo Technology
(Shanghai) Co. Ltd. Selling products 56229.41
Xunmu Information
Technology (Shanghai) Co. Selling products 3200.00
Ltd.MERRY& LUXSHARE
(VIET NAM) Selling products 140970238.68 36766791.14
CO.LTD
MERRY& LUXSHARE
(VIET NAM) Service fees 18457986.91 16173198.52
CO.LTD
MERRY& LUXSHARE
(VIET NAM) Selling fixed assets 84868.73
CO.LTD
Lihao Optoelectronics
Technology (Nantong) Co. Selling products 594000.00 19675233.05
Ltd.Lihao Optoelectronics
Technology (Nantong) Co. Service fees 141509.43
Ltd.Lihao Optoelectronics
Technology (Nantong) Co. Utility and Rent Expenses 2810183.94
Ltd.Dahao Technology
(Dongguan) Co. Ltd. Selling products 195000.00
Dahao Technology
(Dongguan) Co. Ltd. Providing services 378538.75
Xinhao Photoelectric
Technology（HK）Limited Service fees 401140.61 258979.73
Xinguang Energy Technology
(Anhui) Co. Ltd. Selling products 2241071.85 12998999.32
Xinguang Energy Technology
(Anhui) Co. Ltd. Service fees 239780.08
313Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Xinguang Energy Technology
(Anhui) Co. Ltd. Utility and Rent Expenses 3944285.38
Xinguang Energy Technology
(Anhui) Co. Ltd. Selling fixed assets 200727.41
Xinhao Optoelectronics
(Enshi) Co. Ltd. Selling products 96000.00
Shenzhen Xinhao
Photoelectric Technology Service fees 195600.00 195600.00
Limited
Dongguan Gaowei Optical
Electronics Co. Ltd. Selling products 127228633.19 8059987.00
Dongguan Gaowei Optical
Electronics Co. Ltd. Service fees 148944.09
Lisheng Automotive
Technology (Guangzhou) Co. Selling products 62859970.42 1337518.57
Ltd.Lisheng Automotive
Technology (Guangzhou) Co. Selling fixed assets 1435671.00
Ltd.Lisheng Intelligent
Technology (Shanghai) Co. Selling products 360474.69
Ltd.COWELL OPTIC
ELECTRONICS LTD Selling products 1585006865.58 47483807.36
COWELL OPTIC
ELECTRONICS LTD Service fees 7576020.65
Chery Automobile Co. Ltd. Selling products 94360726.96 102949356.35
Chery Automobile Co. Ltd. Service fees 1619864.16 404966.04
Henan Chery Auto Co. Ltd. Selling products 903452.43 -479403.24
Chery Commercial Vehicle
(Anhui) Co. Ltd. Selling products 13465076.89 18196506.19
Chery New Energy
Automobile Co. Ltd. Selling products 187870478.44
Wuhu Chery Automobile
Parts Procurement Co. Ltd. Selling products 365522591.00
Anhui Zhuodun Safety
Technology Co. Ltd. Selling products 7885208.17
Da'ao Automotive Products
(Wuhu) Co. Ltd. Selling products 115123.95
Southeast (Fujian)
Automobile Industry Co. Ltd. Selling products 174118875.18
Wuhu Qida Power Battery
System Co. Ltd. Selling products 105071.00
Ruijing Supply Chain
Technology (Anhui) Co. Ltd. Selling products 1096867437.45
Wuhu Ecotech Powertrain
Co. Ltd. Selling products 4227801.60
Tairui Precision Co. Ltd. Selling products 11724.37
Terry Smart Manufacturing
(Dongguan) Technology Co. Selling products 11870420.33 2454655.35
Ltd.Terry Smart Manufacturing
(Dongguan) Technology Co. Lease of Fixed Assets 25000.00
Ltd.Terry Smart Manufacturing
(Dongguan) Technology Co. Selling fixed assets 2000.00
Ltd.Terry Smart Manufacturing
(Dongguan) Technology Co. Service fees 353771.00
Ltd.Teleray (Hong Kong)
International Company Selling products 399169.46
Limited
Teleray (Hong Kong)
International Company Service fees 595750.32
Limited
314Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Basibo Leather Goods
(Guilin) Co. Ltd. Selling products 303284.53
Dongguan Dubo Leather
Goods Co. Ltd. Providing services 3782226.52
Dongguan Dubo Leather
Goods Co. Ltd. Selling products 3070.38
Dongguan Liten Innovation
Electronics Co. Ltd. Selling products 694101.03
Descriptions on related-party transactions of purchasing and selling goods and rendering and accepting services
(2) Related-party Lease
The Company acts as the lessor:
In RMB
Name of lessee Types of leased assets Lease income recognized in Lease income recognized inthe current period the prior period
Xinguang Energy Technology
(Anhui) Co. Ltd. Buildings 3944285.38
Terry Smart Manufacturing
(Dongguan) Technology Co. Fixed assets 25000.00
Ltd.Lihao Optoelectronics
Technology (Nantong) Co. Buildings 2810183.94
Ltd.
315Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
The Company acts as the lessee:
In RMB
Expenses related to short- Variable lease payments
term leases and low-value through profit or loss not
assets leases subject to included in the Paid rent
Assumed interest expenses
of lease liabilities Added right-of-use assets
simplified treatment if any measurement of lease
Lessor Types of
liabilities if any
leased assets
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
recognized in recognized recognizedin the recognized recognized in recognized in
recognized
in the recognized
recognized recognized
the current in the prior current in the prior the current the prior
in the
current in the prior current in the priorperiod period period period period period period period period period
Luxvisions
Innovation Fixed assets
(Ji’an) Co. and 2415740.00 51189.45 51827.16 3098840.57
Ltd. buildings
Lishan Smart
Manufacturing Fixed assets
Technology and 2609752.65 3986581.90 144009.07 9861596.54
(Guangdong) buildings
Co. Ltd.Luxsan
Investment Fixed assets
(Jiangsu) Co. and 996998.38 32300000.00 1328474.10 1984124.96
Ltd. buildings
Luxsan
Technology Fixed assets
(Kunshan) and 30600000.00
Co. Ltd. buildings
Shishuo
Electronics Fixed assets
(Kunshan) and 18156662.77 14393654.28
Co. Ltd. buildings
Descriptions on related-party leases
316Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Related Party Asset Transfer and Debt Restructuring
In RMB
Related party Related-party transactions Amount recognized in the Amount recognized in thecurrent period prior period
Shenzhen Xinhao
Photoelectric Technology Acquisition of Equity 52470000.00
Limited
(4) Remuneration of Key Managers
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Compensation of key managers 21977907.97 12830400.00
Share-based payment of key managers 10871666.58 12019751.67
(5) Other Related-Party Transactions
6. Accounts Receivable and Payable of Related Parties
(1) Receivables
In RMB
Closing balance Opening balance
Project name Related party
Book balance Bad-debt provision Book balance Bad-debt provision
Accounts
receivable
BCSAutomotive
Interface Solutions 1324482.00 662.24
GmbH (Germany)
BCSAutomotive
Interface Solutions
Romania s.r.l. 5879311.15 2939.66 14600815.64 7300.41
(Romania)
BCSAutomotive
Interface Solutions 636985.82 318.49 83825.90 41.91
s.r.o. (Czech)
BCSAutomotive
Interface Solutions 19288226.26 9644.11 20232577.86 10116.29
US LLC (USA)
COWELL OPTIC
ELECTRONICS 1135630655.19 567815.33 92216.75 46.11
LTD
LUXSAN
TECHNOLOGY 303551636.02 151775.82 250986471.18 125493.24
LIMITED
MERRY&
LUXSHARE
(VIET NAM) 53834010.55 26917.01 20589657.46 10294.83
CO.LTD
Xinhao
Photoelectric
Technology 150902.71 75.45 43319.52 21.66（HK）Limited
317Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Anhui Zhuodun
Safety Technology 3947801.26 1973.90
Co. Ltd.Basibo Leather
Goods (Guilin) 12711.50 6.36
Co. Ltd.Da'ao Automotive
Products (Wuhu) 71876.99 35.94
Co. Ltd.Assem Technology
Co. Ltd. 1062922.27 531.46 1412127.29 706.06
Dongguan Dubo
Leather Goods 7442.37 3.72
Co. Ltd.Dongguan Gaowei
Optical Electronics 48940694.04 24470.35 8992751.31 4496.38
Co. Ltd.Dongguan Liten
Innovation
Electronics Co. 214539.96 107.27
Ltd.Southeast (Fujian)
Automobile 3117.44 1.56
Industry Co. Ltd.Guangzhou
Luxvisions
Innovation 68645628.77 34322.81 137683353.53 68841.68
Technology
Limited
Lihao
Optoelectronics
Technology 561043.93 280.52 1272105.69 636.05
(Nantong) Co.Ltd.Lisheng
Automotive
Technology 25226467.08 12613.23 1511395.99 755.70
(Guangzhou) Co.Ltd.Bisaisi Automotive
Technology 307139085.72 153569.54 302574007.23 151287.00
(Suzhou) Co. Ltd.Luxsan Investment
(Jiangsu) Co. Ltd. 710667.33 355.33 2962511.55 1481.26
Luxsan Intelligent
Equipment
(Kunshan) Co. 127753223.71 63876.61 184417695.50 92208.85
Ltd.Chery Automobile
Co. Ltd. 1675159.09 837.58 50708439.08 25354.22
Henan Chery Auto
Co. Ltd. 1021310.22 510.66 408.97 0.20
Chery Commercial
Vehicle (Anhui) 2690119.36 1345.06 19452711.52 9726.36
Co. Ltd.Chery New Energy
Automobile Co. 98092042.98 49046.02
Ltd.Ruijing Supply
Chain Technology 964114232.91 482057.12
(Anhui) Co. Ltd.
Shangrao City
Luxvisions
Innovation 1696754.15 848.38 118085.00 59.04
Technology Co.Ltd.
318Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Shenzhen Xinhao
Photoelectric
Technology 207336.00 103.67 207336.00 103.67
Limited
Shishuo
Electronics
(Kunshan) Co. 141178.16 70.59
Ltd.Teleray (Hong
Kong)
International 600158.58 300.08
Company Limited
Terry Smart
Manufacturing
(Dongguan) 6656776.85 3328.39 2371233.21 1185.62
Technology Co.Ltd.Wuhu Ecotech
Powertrain Co. 4777415.81 2388.71
Ltd.Wuhu Qida Power
Battery System 87881.23 43.94
Co. Ltd.Wuhu Chery
Automobile Parts
Procurement Co. 191391.44 95.70
Ltd.Xianshuo
Technology
(Shanghai) Co. 63531.19 31.77
Ltd.Xinguang Energy
Technology 707168.10 353.58 15854406.07 7927.20
(Anhui) Co. Ltd.
Other receivables
BCSAutomotive
Interface Solutions 4150973.34
GmbH (Germany)
BCSAutomotive
Interface Solutions 1835605.65
US LLC (USA)
BCSAIS JAPAN
CO. LTD. 8193.97 40.97
COWELL OPTIC
ELECTRONICS 1120275.25 5601.38 566896.90 2834.48
LTD
LUXSAN
TECHNOLOGY
LIMITED
MERRY&
LUXSHARE
(VIET NAM) 695533.77 3477.67 54214.88 271.07
CO.LTD
Xinhao
Photoelectric
Technology 126709.50 633.55（HK）Limited
Dongguan Gaowei
Optical Electronics 10121.46 50.61
Co. Ltd.Guangzhou
Luxvisions
Innovation 6620554.60 33102.77
Technology
Limited
319Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Lihao
Optoelectronics
Technology
(Nantong) Co.Ltd.Bisaisi Automotive
Technology 860894.57 4304.47 183851.00 919.26
(Suzhou) Co. Ltd.Shishuo
Electronics
(Kunshan) Co. 770000.00 3850.00
Ltd.Luxsan
Technology
(Kunshan) Co.Ltd.Teleray (Hong
Kong)
International 373541.60 1867.71
Company Limited
SpeedTech Energy
Co. Ltd.Prepayments
BCSAutomotive
Interface Solutions 1310863.83 16758.58
GmbH (Germany)
BCSAutomotive
Interface Solutions
Romania s.r.l. 7912116.46 8626289.64
(Romania)
BCSAutomotive
Interface Solutions 1489939.67 1468031.23
US LLC (USA)
Other non-current
assets
Assem Technology
Co. Ltd. 159443.34
Notes receivable
Anhui Zhuodun
Safety Technology 1672143.48
Co. Ltd.Southeast (Fujian)
Automobile 2000000.00
Industry Co. Ltd.Bisaisi Automotive
Technology 9221816.92
(Suzhou) Co. Ltd.Chery Commercial
Vehicle (Anhui) 1200000.00
Co. Ltd.Chery New Energy
Automobile Co. 33244294.25
Ltd.Ruijing Supply
Chain Technology 67867078.68
(Anhui) Co. Ltd.
Wuhu Chery
Automobile Parts
Procurement Co. 400000.00
Ltd.
320Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(2) Payables
In RMB
Project name Related party Closing balance Opening balance
Accounts payable
BCSAutomotive Interface
Solutions 6591598.23 2729.66
Romania s.r.l. (Romania)
BCSAutomotive Interface
Solutions GmbH (Germany) 376283.99
BCSAutomotive Interface
Solutions US LLC (USA) 2867122.31 10064934.58
LUXSAN TECHNOLOGY
LIMITED 971975182.23 338536004.32
LUXVISIONS
INNOVATION
TECHNOLOGY 585128.90
LIMITED
MERRY& LUXSHARE
(VIET NAM) 106485831.25 43589524.60
CO.LTD
Basibo Leather Goods
(Guilin) Co. Ltd. 115906.00
Assem Technology Co. Ltd. 18738531.94 11442488.98
Dongguan Dubo Leather
Goods Co. Ltd. 28426484.02
Southeast (Fujian)
Automobile Industry Co. Ltd. 374557.26
Gaowei Optical Electronics
Co. Ltd. 13801.73
Guangzhou Luxvisions
Innovation Technology 968516.26 1217397.22
Limited
Lihao Optoelectronics
Technology (Nantong) Co. 475757.82 3012052.57
Ltd.Luxvisions Innovation (Ji’an)
Co. Ltd. 1279460.00 4380.00
Lishan Smart Manufacturing
Technology (Guangdong) 1316019.80 892581.04
Co. Ltd.Lisheng Automotive
Technology (Guangzhou) Co. 336248.13
Ltd.Bisaisi Automotive
Technology (Suzhou) Co. 1615136.67 9829821.10
Ltd.Luxsan Investment (Jiangsu)
Co. Ltd. 15275458.83 38169781.48
Luxsan Intelligent Equipment
(Kunshan) Co. Ltd. 3103946.01
Chery Automobile Co. Ltd. 94068.42
Chery New Energy
Automobile Co. Ltd. 4994.26
Riyimao Industrial Co. Ltd. 5323943.98 5532481.51
Shishuo Electronics
(Kunshan) Co. Ltd. 14342009.43
Teleray (Hong Kong)
International Company 8264943.06 2520685.43
Limited
Terry Smart Manufacturing
(Dongguan) Technology Co. 29021690.30 14283178.83
Ltd.
321Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Wuhu Chery Automobile
Parts Procurement Co. Ltd. 1206120.83
Xinguang Energy Technology
(Anhui) Co. Ltd. 35901.89 713564.13
Xunmu Information
Technology (Shanghai) Co. 60412.41
Ltd.Other payables
Luxsan Investment (Jiangsu)
Co. Ltd. 1982319.68
Riyimao Industrial Co. Ltd.Teleray (Hong Kong)
International Company 217785.76 166040.61
Limited
BCSAIS Ensambles Mexico
S. de R.L.de 563387.00
C.V. (Mexico)
Assem Technology Co. Ltd. 18523.56
Contract liabilities
BCSAutomotive Interface
Solutions US LLC (USA) 1347060.73 15150.91
LUXSAN TECHNOLOGY
LIMITED 7417293.51
Chery New Energy
Automobile Co. Ltd. 1530973.45
Xinhao Optoelectronics
(Enshi) Co. Ltd. 7311600.00
Lease liabilities
Luxvisions Innovation (Ji’an)
Co. Ltd. 1976213.53
Lishan Smart Manufacturing
Technology (Guangdong) 8556408.61
Co. Ltd.Luxsan Investment (Jiangsu)
Co. Ltd. 27366505.96
7. Others
None.XV. Share-based Payment
1. General Situation of Share-based Payment
□Applicable □N/A
In RMB
Categories Grants awarded this period Exercised this period Unlocked this period Expired this period
of recipients Number Amount Number Amount Number Amount Number Amount
Sales staff 5977817.00 27397574.7 11805595.96 1333665.00 0
Management 43685361.0 163789800. 5372038.00 41052083.8staff 0 22 8
Research
and 27480998.0 135832153.0 87 7010148.00
53115858.4
development 6
322Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
personnel
Total 77144176.0 327019528. 13715851.0 105973538.0 85 0 24
Outstanding stock options or other equity instruments issued at the end of the period
□Applicable □N/A
Outstanding stock options issued at the end of the Outstanding equity instruments issued at the end
period of the period
Categories of recipients
Range of exercise Remaining contract Range of exercise Remaining contract
prices term prices term
Sales staff 13.05-35.33 1 -3 years
Management staff 13.05-35.33 1 -3 years
Research and
development personnel 13.05-35.33 1 -3 years
Other descriptions:
2. Payment Situation Settled by Equity
□Applicable □N/A
In RMB
Method for determining the fair value of equity instruments
granted on the grant date Black-Scholes module
Key parameters for determining the fair value of equity
instruments granted on the grant date Historical volatility risk-free rate
The Company determines based on factors such as the equity
Basis for determining the number of equity instruments eligible instruments corresponding to the incentive objects in
for exercise employment and forecasts of the Company's future annual
performance
Reasons for significant differences between current period
estimates and prior period estimates None
Accumulated amount of share-based payments settled in equity
recognized in capital reserve 2595810862.76
Total expenses recognized for share-based payments settled in
equity for the current period 422372518.59
Other descriptions:
(1) On September 25 2018 the Proposal on Granting Stock Options to Grantees under the 2018 Stock Option Incentive Plan of
Luxshare Precision Industry Co. Ltd. was approved upon deliberation at the 5th meeting of the fourth session of the Board of
Directors of the Company. Accordingly the Company granted 97.50 million of stock options to 1899 eligible grantees at the
exercise price of RMB17.58 per share. After 12 months from the date on which the registration of grants was completed grantees
meeting the exercise conditions would exercise the options in five periods with a proportion of 20% for each period in the
following 60 months; According to the Proposal on Achievement of the Exercise Conditions for the Second Exercise Period under
the 2018 Stock Option Incentive Plan approved upon deliberation at the 27th meeting of the fourth session of Board of Directors of
the Company held on December 2 2020 given that the exercise condition for the second exercise period under the 2018 Stock
Option Incentive Plan had been matured it was agreed that 1718 grantees of the 2018 Stock Option Incentive Plan would
independently exercise their options at the exercise price of RMB10.28 per share with the estimated stock options to be exercised
323Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
numbering 31212577 (the actual number of stock options to be exercised shall be subject to registered number by Shenzhen
Branch of China Securities Depository and Clearing Co. Ltd.)
(2) On April 22 2019 the Company held the 9th meeting of the fourth session of Board of Directors deliberating and approving
the Proposal on Granting Stock Options to Initial Grantees under the 2019 Stock Option Incentive Plan of Luxshare Precision
Industry Co. Ltd. whereby it was determined that 50076000 stock options would be granted to 348 eligible grantees and 12
519000 stock options would be reserved for future granting. The stock options initially granted under this incentive plan was
RMB 23.36 per share.
(3) On November 27 2019 the Company held the 13th meeting of the fourth session of Board of Directors deliberating and
approving the Proposal on Grant of Stock Options to Grantees in Reserved Grant under the 2019 Stock Option Incentive Plan
pursuant to which the Company granted 16274700 stock options to 263 eligible grantees at an exercise price of RMB17.93 per
share and after 12 months from the date on which the registration of grants was completed grantees meeting the exercise
conditions would exercise the stock options in five periods with a proportion of 20% for each period in the following 60 months.
(4) On December 32021 the Company held the 6th meeting of the fifth session of Board of Directors deliberating and approving
the Proposal on Granting Stock Options to Grantees under the 2021 Stock Option Incentive Plan of Luxshare Precision Industry
Co. Ltd. whereby it was determined that 52419000 stock options would be granted to 1097 eligible grantees on December 3
2021 as the grant date of the incentive plan. The exercise price of stock options initially granted under this incentive plan was
RMB 35.87 per share. Since 22 original grantees resigned from the Company and 3 original grantees gave up all stock options to
be granted to them for personal reasons the number of grantees subject to this stock option incentive was changed from 1097 to
1072 and the quantity of stock options granted was changed from 52419000 to 52092000.
On September 15 2022 the Company held the 11th meeting of the fifth session of Board of Directors and the 11th meeting of the
fifth session of Board of Supervisors deliberating and approving the Proposal on Grant of Stock Options to Grantees in Reserved
Grant under the 2021 Stock Option Incentive Plan whereby it was determined that 13101000 stock options would
be granted to 365 eligible grantees on September 15 2022 as the grant date of the reserved stock options. The exercise price of
reserved stock options under this incentive plan was RMB 35.76 per share. Since 9 original grantees resigned from the Company
or gave up all stock options to be granted to them for personal reasons the number of grantees subject to this stock option
incentive was changed from 365 to 356 and the quantity of stock options granted was changed from 13101000 to 12785800.
(5) On December 15 2022 the Company held the 14th meeting of the fifth session of Board of Directors deliberating and
approving the Proposal on Grant of Stock Options to Grantees under the 2022 Stock Option Incentive Plan of Luxshare Precision
Industry Co. Ltd. whereby it was determined that 172021000 stock options would be granted to 3759 eligible grantees on
December 5 2022 as the grant date of the reserved stock options. The exercise price of stock options initially granted under this
incentive plan was RMB 30.35 per share. Since 254 original grantees resigned from the Company or gave up all stock options to
be granted to them for personal reasons the number of grantees subject to this stock option incentive was changed from 3759 to
3505 and the quantity of stock options granted was changed from 172021000 to 168513000.
3. Share-based Payment Settled in Cash
□Applicable □N/A
324Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
4. Stock-based Compensation Expense for the Current Period
□Applicable □N/A
In RMB
Categories of recipients Share-based payment expenses settled by Share-based payment expenses settled inequity cash
Sales staff 27475949.63
Management staff 229965066.16
Research and development personnel 164931502.80
Total 422372518.59
Other descriptions:
5. Others
None.XVI. Commitments and Contingencies
1. Significant Commitments
Significant commitments on the balance sheet date
The Company has no significant commitments that require disclosure.
2. Contingencies
(1) Significant Contingencies on the Balance Sheet Date
The Company has no significant contingencies to be disclosed.
(2) Notes shall be made if the company has no significant contingencies that need to be disclosed
The Company has no significant contingencies to be disclosed.
3. Others
None.XVII. Events after the Balance Sheet Date
1. Significant Non-adjusting Events
In RMB
Item Content Impact on financial position Reason for inability to
325Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
and operating results estimate the impact
2. Profit Distribution Information
Proposed cash dividend per 10 shares (RMB) 2
Proposed bonus shares per 10 shares (shares) 0
Proposed capitalization from capital reserve per 10 shares
(shares) 0
Cash dividend per 10 shares reviewed and approved for
distribution (RMB) 2
Bonus shares per 10 shares reviewed and approved for
distribution (shares) 0
Capitalization from capital reserve per 10 shares reviewed and
approved for distribution (shares) 0
According to the resolution of the Eleventh Meeting of the
Sixth Board of Directors the Company will distribute profits
for the current year. Based on a total share capital of
Profit Distribution Plan 7247395805 shares a cash dividend of RMB 2 (tax included)will be distributed for every 10 shares to all shareholders
totaling RMB 1449479161 (tax included) in cash dividends.The remaining undistributed profit will be carried forward for
distribution in subsequent years.
3. Explanation of Other Events after the Balance Sheet Date
1. On January 2 2025 the Company signed an equity closing agreement with Bose Corporation and Bose Export Inc. to
acquire 100% of the shares held by Bose Corporation and Bose Export Inc. in Bose Corporation S.A. de C.V. As of the date of
this Annual Report the Company has paid an acquisition cost of RMB 245 million and the closing has been completed.
2. According to the resolution of the 11th meeting of the sixth session of the Board of Directors of the Company the
Company plans to apply for a total comprehensive credit line of RMB 52.1 billion from 20 banks. The final approved credit line by
the banks shall prevail including RMB loans bank acceptance bills letters of credit guarantees forward foreign exchange and
other credit varieties in both domestic and foreign currencies. The credit lines mentioned above all have a term of one year.
3. On January 21 2025 the Company held the Seventh Meeting of the Sixth Board of Directors and reviewed and approved
the "Proposal on Providing Guarantees for Wholly-Owned Subsidiaries". The Company intends to acquire company equity and
target operating assets related to the product integration business (hereinafter referred to as the "Transaction") held by a controlling
subsidiary (hereinafter referred to as the "Transferor") of Wingtech Technology Co. Ltd. (hereinafter referred to as "Wingtech
Technology" or "Transferor Guarantor") through its wholly-owned subsidiary Luxshare Communications (Shanghai) Co. Ltd.(hereinafter referred to as "Luxshare Communications" or "Transferee") in cash. The Company will provide joint and several
liability guarantees for the relevant payment obligations under the Transaction (hereinafter referred to as the "Guarantee Matter").The total guarantee amount at any point in time during the guarantee period is expected to not exceed RMB 3500000000. The
final actual guarantee amount will be subject to the amount of equity/asset closing. The guarantee period is from the date of
approval by the Board of Directors until the fulfillment of the relevant payment obligations under the Transaction.
4. On January 23 2025 the Company's wholly-owned subsidiary Luxshare Communications (Shanghai) Co. Ltd.
(hereinafter referred to as "Luxshare Communications") signed an "Equity Transfer Agreement" with Wingtech Communications
Co. Ltd. (hereinafter referred to as "Wingtech Communications"). Luxshare Communications acquired 100% equity (hereinafter
collectively referred to as the "ODM Phase I Target Companies") held by Wingtech Communications in Jiaxing Yongrui
Electronics Technology Co. Ltd. (hereinafter referred to as "Jiaxing Yongrui") Shanghai Wingtech Electronics Technology Co.Ltd. (hereinafter referred to as "Shanghai Wingtech Electronics") and Shanghai Wingtech Information Technology Co. Ltd.(hereinafter referred to as "Shanghai Wingtech Information") (including its subsidiaries). The Company completed the payment of
326Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
the first installment of the agreement and the closing procedures for the ODM Phase I Target Companies on January 26 2025. The
remaining equity transfer payment will be adjusted based on the audit and appraisal results and paid according to the agreement.
5. On March 20 2025 the Company convened the Tenth Meeting of the Sixth Board of Directors and the Ninth Meeting of
the Sixth Supervisory Committee and reviewed and approved the "Proposal on Acquiring Equity and Assets of Some Subsidiaries
of Wingtech Technology Co. Ltd." agreeing that Luxshare Precision would sign an "Equity Transfer Agreement (Kunming
Wenxun)" (hereinafter referred to as the "OEM Transfer Agreement") with Wingtech Technology and Luxshare Communications
would sign an "Equity and Asset Transfer Agreement" (hereinafter referred to as the "ODM Phase II Transfer Agreement"
collectively with the "OEM Transfer Agreement" referred to as the "Transaction Transfer Agreements") with Wingtech
Technology. The agreements stipulate that the Company and Luxshare Communications will acquire the equity and business asset
packages (hereinafter referred to as the "Transaction") of relevant subsidiaries of Wingtech Technology related to the consumer
electronics system integration business. The initial payment amount will be determined based on the sum of the book net asset
amount of the target companies as of the pricing base date of December 31 2024 and the debt-to-equity conversion amount. The
final transaction consideration and other specific matters will be negotiated between the parties based on the audit and appraisal
results. On April 18 2025 the Company paid the first transfer payment of RMB 2.421 billion.
6. On September 13 2024 the Company convened the Third Meeting of the Sixth Board of Directors and the Third Meeting
of the Sixth Supervisory Committee and reviewed and approved the "Proposal on Acquiring Equity of Leoni AG and its Wholly-
Owned Subsidiary". The Company intends to acquire 50.1% equity of Leoni AG (hereinafter referred to as "Leoni Company") and
100% equity of Leoni AG's wholly-owned subsidiary Leoni Kabel GmbH (hereinafter referred to as "Leoni K"). This acquisition
was approved by the First Antitrust Enforcement Division of the State Administration for Market Regulation on January 6 2025.As of the date of this Annual Report the acquisition is still in progress.XVIII. Other Significant Events
1. Segment Information
(1) Basis of Segments Determination and Accounting Policies
None.
(2) Financial Information of Segments
In RMB
Item Offset among segments Total
None.
(3) If the Company has no reporting segments or is unable to disclose the total assets and liabilities of
each reporting segment it shall explain the reasons
1. Explanation of reasons
The Group determines operating segments based on internal organizational structure management requirements and internal
reporting systems and discloses segment information based on operating segments.Operating segments refer to components of the Group that simultaneously meet the following conditions: (1) the component
generates revenue and incurs expenses in its daily activities; (2) the Group's management can regularly evaluate the operating
results of the component to determine resource allocation and performance evaluation; (3) the Group can obtain relevant
327Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
accounting information such as financial condition operating results and cash flows of the component. If two or more operating
segments have similar economic characteristics and meet certain conditions they are combined into one operating segment.As over 90% of the Group's revenue and performance originate from the electronics product business segment information
is not presented.（4) Other Descriptions:None.
2. Other Significant Transactions and Events Affecting Investors' Decisions
None.
3. Others
None.XVIX. Notes to Key Items in Financial Statements of the Parent Company
1. Accounts Receivable
(1) Disclosure by Aging
In RMB
Aging Closing balance Opening balance
Within 1 year (inclusive) 4168329575.66 5233442091.29
Undue 4155964561.00 5227457238.25
1 to 60 days overdue 9719696.55 5937121.62
61 to 120 days overdue 2226760.81 47731.42
121 to 180 days overdue 418557.30
181 to 365 days overdue
1 to 2 years 670086.81
2 to 3 years 600221.26 1832777.87
More than 3 years 2181398.76 242560.49
3 to 4 years 1939995.40
More than 5 years 241403.36 242560.49
Total 4171111195.68 5236187516.46
(2) Classification and Disclosure of Bad Debt Provision Methods
In RMB
Closing balance Opening balance
Category Book balance Bad-debt provision Book balance Bad-debt provisionBook Book
Amount Proportio Amount Provision valuen proportion Amount
Proportio
n Amount
Provision value
proportion
Accounts 241403.3 0.01% 241403.3 100.00% 241403.36 6 6 0.01%
241403.3100.00%
receivable 6
328Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
for which
bad-debt
provision
is made
individual
ly
Among
which
Entity 1 241403.3 0.01% 241403.3 100.00% 241403.3 0.01% 241403.36 6 6 6 100.00%
Provision
on an 4170869 4829179 4166040 5235946 3509490 5232436
individual 792.32 99.99% .84 0.12% 612.48 113.10 99.99% .81 0.07% 622.29
basis
Among
which
Group by 1949959 46.74% 4829179 0.25% 1945130 1531093 29.24% 3509490 0.23% 1527583aging 357.74 .84 177.90 301.52 .81 810.71
Related
party
group in
the scope 2220910434.58 53.25%
222091037048523704852
of 434.58 811.58
70.75%811.58
consolidat
ion
Total 4171111 100.00% 5070583 0.12% 4166040 5236187 3750894195.68 .20 612.48 516.46 100.00% .17 0.07%
5232436
622.29
Provision for bad debts made individually: 241403.36
In RMB
Opening balance Closing balance
Description
Book balance Bad-debtprovision Book balance
Bad-debt Provision Reason for
provision proportion provision
Entity 1 241403.36 241403.36 241403.36 241403.36 100.00% Unrecoverable
Total 241403.36 241403.36 241403.36 241403.36
Provision for bad debts made by group: 4829179.84
In RMB
Closing balance
Description
Book balance Bad-debt provision Provision proportion
Undue 1935054126.42 967527.19 0.05%
1 to 60 days overdue 9719696.55 485984.83 5.00%
61 to 120 days overdue 2226760.81 668028.24 30.00%
121 to 180 days overdue 418557.30 167422.92 40.00%
181 to 365 days overdue
1 to 2 years (excluding 1
year) overdue
Over 2 years overdue 2540216.66 2540216.66 100.00%
Total 1949959357.74 4829179.84
Descriptions on basis for determining the group:
If the bad-debt provision for accounts receivable is made according to the general model of expected credit loss please refer to the
disclosure method of other receivables to disclose the relevant information of bad debt provision.□Applicable □N/A
329Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(3) Bad-Debt Provision Made Recovered or Reversed in the Current Period
Bad-debt provision in the current period:
In RMB
Amount of change in the current period
Category Openingbalance Recovery or Closing balanceProvision reversal Write-off Other
Amount
accrued 241403.36 241403.36
individually
Provision on a
group basis 3509490.81 1319689.03 4829179.84
Total 3750894.17 1319689.03 5070583.20
Including significant amounts recovered or reversed from the current provision for bad debts:
In RMB
Basis for determining
the provision ratio for
Entity name Amount recovered orreversed Reason for reversal Recovery method the original bad debtreserve and its
reasonableness
(4) Accounts Receivable with Top Five Closing Balance - By Debtor
In RMB
Closing balance of
The proportion of accounts
Closing balance of Closing balance of the total closing receivable
Entity name accounts Closing balance of accounts balance of allowance for
receivable contract assets receivable and accounts doubtful accountscontractual assets receivable and and contractual
contractual assets asset impairment
provision
Entity 1 752775397.43 752775397.43 18.05%
Entity 2 522818761.58 522818761.58 12.53%
Entity 3 418683585.64 418683585.64 10.04%
Entity 4 363993359.29 363993359.29 8.73% 181996.68
Entity 5 227025825.01 227025825.01 5.44% 113512.91
Total 2285296928.95 2285296928.95 54.79% 295509.59
2. Other Receivables
In RMB
Item Closing balance Opening balance
Dividends receivable 600000000.00 522000000.00
Other receivables 6750541.46 53065087.05
Total 606750541.46 575065087.05
330Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(1) Dividends Receivable
1) Classification of Dividends Receivable
In RMB
Item (or Investee) Closing balance Opening balance
Jiangxi Luxshare Intelligent Manufacture
Co. Ltd. 600000000.00 500000000.00
Dongguan Leader Precision Industry
Co. Ltd. 22000000.00
Total 600000000.00 522000000.00
2) Classification and Disclosure by Bad Debt Provision Method
□Applicable □N/A
(2) Other Receivables
1) Classification of Other Receivables by Nature of Funds
In RMB
Nature of Funds Closing balance Opening balance
Petty Cash 8000.00 12800.00
Deposits Guarantees 6776463.78 5818945.78
Other 47500000.00
Total 6784463.78 53331745.78
2) Disclosures by Aging
In RMB
Aging Closing balance Opening balance
Within 1 year (inclusive) 6784463.78 53331745.78
Undue 6784463.78 53331745.78
Total 6784463.78 53331745.78
3) Classification and Disclosure by Bad Debt Provision Method
In RMB
Closing balance Opening balance
Category Book balance Bad-debt provision Book balance Bad-debt provisionBook Book
Amount Proportio Amount Provision value Proportion proportion Amount n Amount
Provision value
proportion
Among
which
Provision
for Bad 6784463
Debts by .78 100.00% 33922.32 0.50%
67505415333174100.00%266658.7.465.7830.50%
5306508
7.05
Group
331Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Among
which
Group by 6784463 6750541 5333174 266658.7 5306508
aging .78 100.00% 33922.32 0.50% .46 5.78 100.00% 3 0.50% 7.05
Total 6784463 100.00% 33922.32 0.50% 6750541 5333174 266658.7 5306508.78 .46 5.78 100.00% 3 0.50% 7.05
Provision for bad debts made by group: 33922.32
In RMB
Closing balance
Description
Book balance Bad-debt provision Provision proportion
Undue 6784463.78 33922.32 0.50%
Total 6784463.78 33922.32
Descriptions on basis for determining the group:
Provision for Bad Debts is made according to the Expected Credit Loss General Model:
In RMB
Phase I Phase II Phase III
Bad-debt provision Expected Credit Loss Lifetime Expected Lifetime Expected Total
for the Next 12 Months Credit Loss (No Credit Credit Loss (CreditImpairment Incurred) Impairment Incurred)
Balance as of January
12024266658.73266658.73
Balance as of January
1 2024 in this period
Reversal of this period 232736.41 232736.41
Balance as of
December 31 2024 33922.32 33922.32
Criteria for stage classification and the provision ratios for bad debt reserves
Significant changes in the book balance of loss provisions for the current period
□Applicable □N/A
4) Provision Recovery or Reversal of Bad Debt Provision for the Current Period
Bad-debt provision in the current period:
In RMB
Amount of change in the current period
Category Openingbalance Provision Recovery or Write-off or
Closing balance
reversal Write-down Other
Other
receivables 266658.73 232736.41 33922.32
Total 266658.73 232736.41 33922.32
332Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Significant Amounts of Bad Debt Provision Reversals or Recoveries for the Current Period:
In RMB
Basis for determining
the provision ratio for
Entity name Amount recovered orreversed Reason for reversal Recovery method the original bad debtreserve and its
reasonableness
5) Other Receivables Categorized by the End-of-period Balances of the Top Five Debtors
In RMB
The proportion of
Nature of the the end-of-period End-of-periodEntity name Funds Closing balance Aging balance to the total balance of badamount of other debt provision
receivables.Entity 1 DepositsGuarantees 4216931.94 Undue 62.16% 21084.66
Entity 2 DepositsGuarantees 731800.00 Undue 10.79% 3659.00
Entity 3 DepositsGuarantees 711414.94 Undue 10.49% 3557.07
Entity 4 DepositsGuarantees 324486.00 Undue 4.78% 1622.43
Entity 5 DepositsGuarantees 200000.00 Undue 2.95% 1000.00
Total 6184632.88 91.17% 30923.16
3. Long-Term Equity Investments
In RMB
Closing balance Opening balance
Item
Book balance Provision forimpairment Book value Book balance
Provision for
impairment Book value
Investment in 24764098059 28560179.80 24735537879 23305219310 23276659130subsidiaries .43 .63 .74 28560179.80 .94
Investment in
associates and 325539354.95 34372608.46 291166746.49 359712752.90 34372608.46 325340144.44
joint ventures
Total 25089637414.38 62932788.26
2502670462623664932063.12.6462932788.26
23601999275.38
(1) Investment in Subsidiaries
In RMB
Opening Opening Opening balancebalance of Closing
Closing
Investee balance balance ofAdditional Reduced Provision for balance
(book value) provision for Otherimpairment investment investment impairment (book value)
provision for
impairment
333Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
ASAP
Technology -
(Jiangxi) 1432007.44 7143582.51 4923383.98 788191.09
Co. Ltd.Xiexun
Electronic 259296522. 265522085.(Ji’an) Co. 80 6225563.06 86
Ltd.Suining
Luxshare
Precision 3422369.04 376491.95 3798860.99
Industry Co.Ltd.Luxshare
Precision 158059935. 158059935.Technology 32 32
Co. Ltd.ICT-LANTO 987362500. 987362500.LIMITED 26 26
Luxshare
Precision 34911287.88 1710255.64
33201032.2
Limited 4
Lanto
Electronic 368165242 85085759.5 376673818
Limited 1.20 7 0.77
Dongguan
Leader
Precision 69076201.11 1146356.30
70222557.4
Industry Co. 1
Ltd.Luxshare
Precision
Industry 523595588. 4702644.89 528298233.(Kunshan) 18 07
Co. Ltd.Wan’an
Xiexun 41110509.2 40569471.0
Electronic 8 541038.25 3
Co. Ltd.Fujian JK
Wiring 97584243.8
Systems Co. 3 1414248.64
98998492.4
7
Ltd..Xingning
Luxshare-
ICT 1094800.64 247223.29 1342023.93
Electronics
Co. Ltd.Luxshare
Precision
Industry 789917224.28 1413263.52
791330487.
(Chuzhou) 80
Co. Ltd.SuK
Kunststoffte 33746516.1 33746516.1
chnik GmbH 4 4
Fengshun
Luxshare
Precision 10241740.2 48028.62 10289768.8
Industry Co. 6 8
Ltd.Shenzhen
Luxshare
Acoustics 10192940.6 28560179.83 0 3154808.68
13347749.328560179.8
Technology 1 0
Ltd.
334Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Dongguan
Luxshare
Precision 104502275 10020895.1 105504365
Industry Co. 7.50 5 2.65
Ltd.Luxshare
Automation 90453837.5 12810025.6 103263863.(Jiangsu) 9 2 21
Ltd.Shenzhen
Luxshare 21000000.0 21000000.0
Smart Life 0 0
Co. Ltd.Jiangxi
Luxshare
Intelligent 110631236 16600223.1 112291258
Manufacture 2.53 0 5.63
Co. Ltd.Dongguan
Xuntao -
Electronics 5914170.83 2394384.58
-
3519786.25
Co. Ltd.Luxshare
Electronic
Technology 234543347 26358137.5 237179161
(Kunshan) 3.54 1 1.05
Co. Ltd.Luxshare
Precision
Accessory 106425642. 962869.87 107388512.(Kunshan) 96 83
Ltd.Luxshare
Precision
Industry 104705435.98 993195.72
105698631.
(Enshi) Co. 70
Ltd.Yongxin
County
Boshuo 1795120.07 465783.52 2260903.59
Electronics
Co. Ltd.LUXSHAR
E-ICT Co. 2893330.29 463368.85 3356699.14
Ltd.Taiwan
Luxshare 217363027. 35501045.4 252864073.Precision 92 8 40
Limited
Luxshare- 66204214.4
ICTInc. 7 9671981.60
75876196.0
7
Korea
Luxshare- 6274220.94 124102.82 6398323.76
ICT Co.Ltd.LUXSHAR
E-ICT
EUROPE 182206.32 182206.32
LIMITED
Merry
Electronics 22977439.4 6797211.17 29774650.6(Suzhou) 9 6
Co. Ltd.Merry
Electronics
(Huizhou) 4955296.40 348752.20 5304048.60
Co. Ltd.
335Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Jiangxi
ASAP
Electronicss 1935963.58 787978.52 2723942.10
Co. Ltd.Luxshare
Precision
Industry 3008247.88 368609.64 2639638.24
(Baoding)
Co. Ltd.Shanxi
Luxshare
Precision 5255498.04 1339477.46 6594975.50
Industry Co.Ltd.Dongguan
Luxshare
Smart-Link
Electronic 1084393.78 295210.12 1379603.90
Technology
Co.Ltd
Guangdong
Luxshare &
Merry 1058103.73 1058103.73
Electronics
Co. Ltd.Bozhou
Lanto 10654450.8 2018151.22 12672602.0Electronic 5 7
Limited
Luxshare
Precision
Industry 331513.63 25523.80 357037.43
(Yancheng)
Co. Ltd.Huzhou
Jiuding
Electronic 3766868.38 280653.51 4047521.89
Co. Ltd.Xinyu
Xiexun
Electroinc 5054587.74 435758.64 5490346.38
Co. Ltd.Luxshare
Precision
Industry 130000000. 130000000.(Suzhou) 00 00
Co. Ltd.Luxshare
iTech 856754225. 19170805.1 875925030.(Zhejiang) 85 4 99
Co. LTD.Bozhou
Xuntao
Electronics 278263.38 3501.08 281764.46
Co. Ltd.Dongguan
Luxshare 122442203 21172863.1 124559489
Technology 4.00 6 7.16
Co. Ltd.Xuancheng
Luxshare
Precision 32328232.1 795491566. 7025955.40 820793843.Industry Co. 6 96 72
Ltd.Beijing
Luxshare 17731767.01 4216686.08
21948453.0
Acoustic 9
336Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Technology
Co. Ltd.Luxshare
Intelligent
Manufacture 141250488 16657610.3 142916249
Technology 3.00 3 3.33
(Changshu)
Co. Ltd.Xingning
Luxshare-
ICT 414381.52 56073.68 470455.20
Electronics
Co. Ltd.SpeedTech
Corp. 4663484.82 374198.64 5037683.46
Luxshare
Technologie 2321682.80 2321682.80
s Limited
Changshu
Luxshare
Industrial 163367000. 163927000.Investment 00 560000.00 00
Management
Co. Ltd.Kunshan
Luxshare
Enterprise 200000000. 200000000.Management 00 00
Developmen
t Co. Ltd.Luxshare
Precision
Industry 659998.94 712577.26 1372576.20
(Jiangsu)
Co. Ltd.Rida
Intelligent
Manufacture 30156949.6 31865005.8
Technology 4 1708056.18 2
(Rugao) Co.Ltd.Luxcase
Precision
Technology 577678894 6699922.78 578348886
(Yancheng) 4.83 7.61
Co. Ltd.Luxis
Technology 248069692. 248769925.(Kunshan) 59 700232.50 09
Co. Ltd.Luxshare
Electronic
Technology 45000000.0 45000000.0
(Enshi) Co. 0 0
Ltd.Liding
Electronic
Technology 252945935. 431023.41 252514911.
(Dongguan) 17 76
Co. Ltd.Luxshare
Technologie
s (Xi'an) 611229.41 2988186.01 4555358.74 -955943.32
Co. Ltd.Luxis
Precision 322901747. 9087258.22 331989006.Intelligent 85 07
337Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Manufacturi
ng
(Kunshan)
Co. Ltd.Luxshare
Precision
Technology 52478980.44 1488887.13
53967867.5
(Nanjing) 7
Co. Ltd.Luxshare
Electronic
(Shanghai) 8207584.50 1829270.20 6378314.30
Co. Ltd.Ri Ming
Computer
Accessory 39311010.6 5730395.27 45041405.9
(Shanghai) 8 5
Co. Ltd.Ripei
Computer
Accessories 0.01 575113.61 575113.62
(Shanghai)
Co. Ltd.Shengrui
Electronic
Technology 599753.33 158699.49 758452.82
(Shanghai)
Co. Ltd.Ri Shan
Computer
Accessories 20080258.1 14896494.1 34976752.3
(Jia Shan) 6 7 3
Co. Ltd.LUXSHAR
E-ICT
(VIETNAM) 2011240.83 974532.86 2985773.69
LIMITED
Hangzhou
Xuntao 14633434.4 14633434.4
Technology 7 7
Co. Ltd.Da Chuang
Precision
Intelligent
Manufacturi 22642594.4 4546455.74 27189050.1
ng 1 5
(Kunshan)
Co. Ltd.Fengshun
Luxshare
Intelligent 250000000.00 63997.87
250063997.
Manufacture 87
Co. Ltd.Luxshare
Smart
Manufacturi
ng 35500000.0 168113780. 203613780.Electronic 0 36 36
Services
(Kunshan)
Co. Ltd.Suzhou
Luxshare 45033548.3 52377982.0
Technology 4 7344433.66 0
Co. Ltd.Yancheng
Luxshare
338Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Enterprise
Management
Services
Partnership
(Limited
Partnership)
Luxshare
Precision
Industry 1859235.33 985942.05 2845177.38
(Wuhu) Co.Ltd.Dongguan
Huarong
Communicat
ions 621603.75 12171.57 633775.32
Technology
Co. Ltd.Luxshare
Precision
Accessory 8316551.18 2914014.86 11230566.0
(Suzhou) 4
Ltd.Zhejiang
Puxing
Electronic 839654.67 839654.67
Technology
Co. Ltd.Luxshare
Rechuan
Technology 4728491.06 1182393.85 5910884.91
(Huizhou)
Co. Ltd.Luxshare
Automotive
Technology 564585.71 290930.66 855516.37
(Shanghai)
Co. Ltd.Luxshare
Precision
Industry 819325.20 651063.83 1470389.03
(Hubei) Co.Ltd.Luxshare-
ICT (Van
Trung) 1899556.76 531648.35 2431205.11
Company
Limited
Shenzhen
Huarong
Technology 1151526.40 213723.04 1365249.44
Co. Ltd.Dongguan
Luxshare 131800000. 131800000.Holdings 00 00
Co. Ltd.Shantou
Luxshare
Technologie 7332.16 7332.16
s Co. Ltd.Time
Interconnect
Technology 956470.98 1213847.16 2170318.14
(Jiangxi)
Limited
Time
Interconnect 680207.74 2086700.82 2766908.56
Technology
339Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
(Kunshan)
Limited
Luxshare
Precision
Industry 69312.21 69312.21
(Anhui) Co.
Ltd.Huzhou
Luxshare
Precision 39550000.0 132805911. 172355911.Industry Co. 0 52 52
Ltd.CASETEK
SINGAPOR 1289759.72 183635.71 1106124.01
E PTE.LTD.Luxcase
Precision
Technology 559415.27 8595745.03 9155160.30
(Kunshan)
Co. Ltd.Luxshare
Precision
Industry 460628.47 247128.47 213500.00
(Mingguang)
Co. Ltd.Dongguan
Huarong
Supply
Chain 127593.41 127593.41
Management
Co. Ltd.Huiju
Dachuang
Information 487150.71 487150.71
(Shanghai)
Co. Ltd.Chuzhou
Luxshare
Technologie 636938.27 636938.27
s Co. Ltd.Luxshare
Energy
(Jiangxi) 141230.35 141230.35
Co. Ltd.Luxshare
New Energy
(Anhui) Co. 23953.01 23953.01
Ltd.Lilianxun Da
Intelligent
Terminal 3591186.89 3591186.89
(Jiashan)
Co. Ltd.Luxshare
Technologie
s 1632346.70 1632346.70
International
Total 232766591 28560179.8 148126952 22390773.0 247355378 28560179.830.94 0 1.75 6 79.63 0
(2) Investment in Associates and Joint Ventures
In RMB
Investe Openi Openi Opening balance Closin Closin
340Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
e ng ng Invest g g
balanc balanc ment Others balanc balanc
e e of profit compr Declar e e of
(book provisi Additi Reduc or loss ehensi Others ed Provisi (book provisi
value) on for onal ed recogn ve change cash on for value) on for
impair invest invest ized incom s in divide impair Other impair
ment ment ment under e equity nds or ment ment
equity adjust profits
metho ment
d
I. Joint ventures
II. Associates
Silicon 23958 23958
ch 950.9 950.95 5
Zhuhai
Kinwo
ng
Flexibl 18927 34372 - 18263 34372
e 8315. 608.4 6643 5117. 608.4
Circuit 16 6 198.01 15 6
Co.Ltd.Lishen
g
Autom
otive
Techn 11210 - 10853
ology 2878. 3571 1629.(Guan 33 248.99 34
gzhou)
Co.Ltd.Subtot 32534 34372 23958
-
102142911634372
al 0144. 608.4 950.9 447.0 6746. 608.444 6 5 0 49 6
325343437223958-2911634372
Total 0144. 608.4 950.9 10214447.0 6746. 608.444 6 5 0 49 6
Determining the recoverable amount by subtracting the disposal costs from the fair value
□Applicable □N/A
Determining the recoverable amount by the present value of expected future cash flows
□Applicable □N/A
Reasons for the significant differences between the above information and the information used or external information used in
impairment tests in previous years
None.Reasons for significant differences between the information used in impairment tests in previous years and the actual situation in
the current year
None.
341Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
（3) Other Descriptions:None.
4. Operating Income and Operating Costs
In RMB
Amount recognized in the current period Amount recognized in the prior period
Item
Income Cost Income Cost
Principal business 11253222393.80 10665261039.90 10632214770.04 10025885162.48
Other business 360627860.64 250200125.93 145744213.41 64294879.18
Total 11613850254.44 10915461165.83 10777958983.45 10090180041.66
Breakdown of operating revenue and operating costs
In RMB
Classificati Segment 1 Segment 2 Total
on of Operating Operating Operating Operating Operating Operating Operating Operating
contract income cost income cost income cost income cost
Business
type
Among
which
Classified
by
operating
area
Among
which
Type of
market or
customer
Among
which
Contract
type
Among
which
Classified
by time of
transfer of
goods
Among
which
Classified
by contract
term
Among
which
342Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
Classified
by sales
channel
Among
which
Total
Information related to performance obligations:
The type of
Time of Nature of the Amounts quality
Item performance or Key payment Company's
Whether they expected to be assurance
fulfillment of terms commitment to are the primary refunded to provided by the
obligations transfer goods obligor customers by Company andthe Company related
obligations
Other descriptions:
Information relating to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the incomes corresponding to the contracts signed whose performance has not been commenced
or completed amount to RMB0.00 of which RMB is expected to be recognized in RMB is expected to be recognized in and
RMB is expected to be recognized in.Significant contract amendments or significant adjustments in transaction prices.In RMB
Item Accounting treatment methods Amount of impact on revenue.Other descriptions:
5. Investment Income
In RMB
Item Amount recognized in the current period Amount recognized in the prior period
Investment income from long-term
equity investments accounted for using 1881900000.00 3436245988.83
the cost method
Long-term equity investment income
accounted for using the equity method -10214447.00 -24693501.41
Investment income from disposal of
long-term equity investment 10018847.56 -48976370.39
Investment income from disposal of
held-for-trading financial assets 3192622.62 93809534.50
Dividends from other equity instrument
investments during holding period 264713.32
Income from derecognition of financial
assets measured at amortized cost -32618718.19 -39618411.95
Investment income from wealth
management products 221755084.56 879726.47
Total 2074033389.55 3417911679.37
343Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
6. Others
None.XX. Supplementary Information
1. Breakdown of Non-Recurring Profit and Loss for the Current Period
□Applicable □N/A
In RMB
Item Amount Remark
Profit or loss from disposal of non-
current assets 1583392.42
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 enjoyed according 933138071.97
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 of financial assets and financial 1044148947.84
liabilities except for effective hedging
transactions related to the Company's
ordinary operating activities
Gain or loss on assets under entrusted
investment or management 906650515.66
Other non-operating income and
expenses 1906501.58
Other non-operating income and
expenses except the above items -476778306.58
Investment income from disposal of joint
ventures 10018847.56
Less: Amount affected by the income tax 412248026.21
Amount affected by minority
interests (after tax) 337074481.35
Total 1671345462.89 --
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
344Annual Report 2024 of Luxshare Precision Industry Co. Ltd.
2. ROE and Earnings per Share
Earnings per share
Profit in the reporting period Weighted average ROE Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to
ordinary shareholders of the 21.34% 1.86 1.85
Company
Net profit after deduction of
non-recurring profit and loss
attributable to ordinary 18.92% 1.63 1.62
shareholders of the Company
3. Accounting Data Differences Under Domestic and Foreign Accounting Standards
(1) Differences of Net Profit and Net Assets in Financial Reports Disclosed according to International
Financial Reporting Standards (IFRS) and Chinese Accounting Standards at the Same Time
□Applicable □N/A
(2) Difference of Net Profit and Net Asset in Financial Reports Disclosed according to Overseas
Accounting Standards and Chinese Accounting Standards at the Same Time
□Applicable □N/A
(3) Descriptions on the Reasons for the Differences of Accounting Data under the Accounting Standards
at Home and abroad and the Name of the Overseas Institution if Difference Adjustment is Made to the
Data Audited by an Overseas Audit Institution
4. Others
None.
345
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