300 billion “fruit chain brother” also needs cross-border transformation?
On February 11, Luxshare Precision Industry Co.Ltd(002475) announced that the company spent 10 billion to join hands with Chery group and cut into the new energy vehicle track. For the rumors of car building, Luxshare Precision Industry Co.Ltd(002475) responded that ” Luxshare Precision Industry Co.Ltd(002475) does not build the whole vehicle, but cooperates with Chery new energy to develop the ODM business of building good cars for others, aiming to seize the opportunity window and strive to become the world’s leading tier 1.”
Luxshare Precision Industry Co.Ltd(002475) Hao invested 10 billion in Chery
establish a joint venture to jointly build cars
On February 11, Luxshare Precision Industry Co.Ltd(002475) signed the strategic cooperation framework agreement with Chery Holding Group Co., Ltd., Chery Automobile Co., Ltd. and Chery new energy in Wuhu, laying a strategic partnership between the two sides.
On the basis of the agreement, Luxshare Precision Industry Co.Ltd(002475) and Chery new energy intend to jointly establish a joint venture, specializing in the R & D and manufacturing of new energy vehicles, providing cutting-edge R & D, design, mass production platform and access to the sea for Luxshare Precision Industry Co.Ltd(002475) auto core parts business, and committed to realizing the company’s medium and long-term goal of becoming a leading manufacturer of auto parts tier 1.
At the same time, Luxshare Precision Industry Co.Ltd(002475) controlling shareholder Lixun Co., Ltd. signed the equity transfer framework agreement with Qingdao Wudaokou new energy automobile industry fund enterprise (limited partnership), which agreed that Lixun Co., Ltd. would purchase 19.88% equity of Chery holdings, 7.87% equity of Chery shares and 6.24% equity of Chery new energy held by Qingdao Wudaokou with RMB 10.054 billion. After the completion of the transaction, Lixun Co., Ltd. does not control Chery holdings, Chery shares and Chery new energy.
Before the signing of the equity transfer framework agreement, Qingdao Wudaokou held 46.77% equity of Chery holdings and was the largest shareholder of Chery holdings.
According to the announcement, Luxshare Precision Industry Co.Ltd(002475) it is pointed out that both parties will give full play to and make use of the resources and advantages of supporting R & D and vehicle OEM business (hereinafter referred to as “cooperative business”) of brand customers in the field of new energy vehicles (including but not limited to all new energy vehicles within the system of Party B’s group company), so as to jointly cultivate R & D and production teams Develop cooperation business.
Luxshare Precision Industry Co.Ltd(002475) said that Chery holdings and its affiliated subsidiaries have been deeply engaged in the automotive industry for many years. They have a complete technology and product R & D system in the vehicle field, especially an independent platform in the vehicle manufacturing link, which can provide Chery and other brands with comprehensive services from vehicle development to mass production, and have a strong and leading core competitive advantage in the industry.
The strategic cooperation framework agreement signed with Chery holdings and its related parties aims to comprehensively strengthen the strategic layout of the company’s automobile business, make full use of Chery group’s deep technological precipitation and terminal brand resources in the field of new energy vehicles, establish a joint venture, and cross-border empower the technology and customer resources accumulated by the company in the field of consumer electronics over the years, With the strong support of the vehicle joint venture platform as the cutting-edge R & D and design, mass production platform and sea port, the company will dynamically enter the market and quickly improve the comprehensive ability of the company’s core parts as a tier 1 manufacturer, quickly polish, optimize and increase the volume in practice, realize the diversified and large-scale development of the company’s core parts, and achieve the medium and long-term goal of becoming a leading manufacturer of tier 1, Lay a solid foundation for the future sustainable development of the company.
Luxshare Precision Industry Co.Ltd(002475) no whole vehicle
cooperate with Chery to develop vehicle ODM mode
This action of Luxshare Precision Industry Co.Ltd(002475) has attracted great attention from the market. According to the record of investor relations activities on February 13 disclosed by Luxshare Precision Industry Co.Ltd(002475) , hundreds of institutions, including Gaoyi assets, e fund, Huaxia Fund and Goldman Sachs asset management, came to investigate.
Luxshare Precision Industry Co.Ltd(002475) chairman and general manager Wang Laichun explained the signing of the strategic cooperation framework agreement with Chery group. She pointed out that smart EV is the chance for Chinese Autobots in a hundred years. The opportunities brought by smart EV include not only the whole vehicle, but also Tier1 with stronger vitality.
Luxshare Precision Industry Co.Ltd(002475) the experience and market reputation accumulated in consumer electronics over the years can cooperate with Chery to develop another Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) – making good cars for others. This is to meet the needs of market development, and also just meet the difficulties of the breakthrough in the growth of Tencent Tier1. Luxshare Precision Industry Co.Ltd(002475) focuses on providing the market with solutions for parts and components in the industrial chain, and is also committed to becoming a leading global auto parts tier 1 manufacturer.
She stressed that as an investor of Chery holdings, Luxshare Precision Industry Co.Ltd(002475) does not manufacture complete vehicles, but cooperates with Chery new energy to develop ODM business of making good cars for others, aiming to seize the opportunity window and strive to become the world’s leading tier 1. This cooperation will also create a precedent for global vehicle ODM business.
In terms of business, Chery is good at vehicle business. The joint venture will be led by Chery and Luxshare Precision Industry Co.Ltd(002475) will coordinate in business, customers and other aspects.
It is understood that Luxshare Precision Industry Co.Ltd(002475) has been precipitated in the automobile business for more than ten years, mainly focusing on the “nervous system” of the whole vehicle. The main products include: connector / connecting wire, low / high voltage whole vehicle harness, special harness, etc. the main customers include Chinese traditional vehicle enterprises, new forces of vehicle manufacturing and some large Tier1 manufacturers.
Luxshare Precision Industry Co.Ltd(002475) acquisition of collective technology equity
fali medical, building engineering and other businesses
In addition, on February 11, Luxshare Precision Industry Co.Ltd(002475) also announced that it plans to acquire about 74.67% equity of convergence technology (01729. HK), a company listed on the main board of the Hong Kong stock exchange, for a total consideration of HK $1.104 billion through an overseas wholly-owned subsidiary Luxshare Precision Industry Co.Ltd(002475) Co., Ltd. at HK $0.80 per share.
Convergence technology is a supplier of customized wire interconnection solutions, with more than 20 years of industry experience. Its main products are used in telecommunications, data center, industrial equipment, medical equipment, network wires and other fields. It has corresponding R & D technology accumulation and operation management experience, and has strong complementarity with Luxshare Precision Industry Co.Ltd(002475) in segmenting products and serving customers.
The acquisition aims to further improve the strategic layout of the company’s interconnected products in the fields of communication, medical treatment, automobile and industry from the aspects of products, customers and market. In the future, the company and Jiji technology will mutually empower each other in precision manufacturing, digital management, business philosophy and customer resources, continuously improve strategic coordination and safeguard the interests of the company and its shareholders.
Luxshare Precision Industry Co.Ltd(002475) chairman Wang Laichun said that at present, from the perspective of industry, market opportunities and their own business conditions, convergence technology is a good company. In the future, the company will mutually empower with convergence technology and continue to play a synergistic effect in business fields such as medical treatment, building engineering and optical cable. In addition, considering the company’s new business development in the future, the demand for working capital also increases with the rapid growth of revenue scale. Having a new platform of convergence technology is conducive to the future development of both sides.
The market value of Luxshare Precision Industry Co.Ltd(002475) has evaporated by nearly 70 billion
Affected by the news, Luxshare Precision Industry Co.Ltd(002475) once rose to 6.46% in intraday trading today. As of the close, the stock reported 41.9 yuan, with a total market value of 296.3 billion yuan.
However, the performance of Luxshare Precision Industry Co.Ltd(002475) was poor. So far, the stock has fallen by nearly 15% and the market value has evaporated by nearly 70 billion yuan.
Since 2022, many apple concept stocks have suffered heavy losses. Leading stocks of fruit chain such as Goertek Inc(002241) , Wingtech Technology Co.Ltd(600745) , Lens Technology Co.Ltd(300433) fell sharply one after another. “Fruit chain” doesn’t smell anymore?
“fruit chain giant” Foxconn also makes cars across borders?
In fact, in addition to Luxshare Precision Industry Co.Ltd(002475) , many “fruit chain” enterprises are trying to find new growth points.
Foxconn, as a “fruit chain giant”, has also frequently crossed the border recently. On January 4, Foxconn signed a strategic cooperation framework agreement with Baiteng automobile and Nanjing Economic and Technological Development Zone to jointly promote the mass production of Baiteng new energy vehicle products. According to the agreement, Foxconn will provide advanced manufacturing technology, operation management experience and industrial chain resources to fully support the mass production of Baiteng’s first model m-byte.
On January 13, Foxconn and Geely holdings signed a strategic cooperation agreement, which agreed that the two sides would establish a joint venture to provide OEM production and customized consulting services for global automobile and travel enterprises, including but not limited to the whole automobile or parts, intelligent control system, automobile ecosystem and the whole process of the whole industrial chain of electric vehicles.
In addition, many “fruit chain” related enterprises also continue to expand their horizons. Lens Technology Co.Ltd(300433) cooperate strategically with China building materials to accelerate the implementation of photovoltaic glass projects. The proportion of ODM non mobile business in Wingtech Technology Co.Ltd(600745) will increase, which will promote the transformation of the company from a service-oriented company to a product-oriented company. East Asia Qianhai Securities said that the company takes the semiconductor business as the core and will benefit from the growth of the new energy vehicle market. In the future, the integration of semiconductor, product integration and optical module business will be further deepened, and the company will become a technology product company led by semiconductor business.
With regard to the Luxshare Precision Industry Co.Ltd(002475) acquisition of shares of Chery holdings, the Citic Securities Company Limited(600030) research report pointed out that the participation in Chery and the establishment of a joint venture have laid a good foundation for entering the vehicle ODM in the future, and the current time is just right. In addition, the company has the foundation to enter vehicle manufacturing and can effectively complement the original business. From parts to the whole, the new blue ocean space of the company’s automobile business is confirmed to be opened. At present, the company’s automobile related business is mainly the on-board parts business (taking the high-voltage connecting line of new energy passenger vehicles as an example, the value of single vehicle is about 2000 yuan). In the future, through the joint venture business with Chery, if the company enters the ODM of the whole vehicle smoothly, it is speculated that the value of single vehicle is expected to increase significantly.
