On February 21, Luxshare Precision Industry Co.Ltd(002475) (002475, SZ) disclosed the non-public offering plan. The company plans to raise no more than 13.5 billion yuan for the construction of intelligent wearable device product line and technology upgrading project, the construction of intelligent mobile terminal precision component product line, the construction of new energy vehicle high-voltage connection system product line Semiconductor advanced packaging and testing product production line construction project, and intelligent vehicle connection system product production line construction project, etc.
In recent years, benefiting from the upgrading of communication technology, the market scale of intelligent wearable devices has continued to grow. IDC’s shipments of wearable smart devices grew by 28.7% in 2014, up from 4.5 billion in 2020.
Luxshare Precision Industry Co.Ltd(002475) said in the announcement that the total investment of intelligent wearable device product line construction and technology upgrading project is 3.5 billion yuan, including 3.437 billion yuan of construction investment and 62.7031 million yuan of initial working capital. After calculation, the after tax internal rate of return of the project is 19.48%, and the after tax static investment payback period (excluding the construction period) is 5.17 years.
The automotive sector is also Luxshare Precision Industry Co.Ltd(002475) exploring a new growth curve outside the smartphone business. On February 11, Luxshare Precision Industry Co.Ltd(002475) announced that the company signed the strategic cooperation framework agreement with Chery group. On the basis of the agreement, the company and Chery new energy plan to jointly establish a joint venture, specializing in the R & D and manufacturing of new energy vehicles. The controlling shareholder of the company, Lixun Co., Ltd., purchased 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.
Subsequently, Luxshare Precision Industry Co.Ltd(002475) stressed in the record of investor relations activities that in this strategic cooperation with Chery, the company does not build cars, but cooperates with Chery to develop the ODM (original design manufacturer) model of the whole vehicle. The company is determined to seize the opportunity window and strive to become the world’s leading tier 1 (primary supplier of the vehicle factory). In the view of the outside world, Luxshare Precision Industry Co.Ltd(002475) tries to “copy” its successful case as a fruit chain agent in the field of automobile manufacturing.
In fact, the rapid development of new energy vehicles will promote the continuous growth of the demand for automotive electronics related products. The intellectualization of traditional vehicles and the gradual popularization of new energy vehicles will increase the capacity demand of a large number of upstream precision electronic devices and components. According to statista’s prediction, the global automotive electronics market will be US $217.9 billion in 2020 and is expected to reach US $400.3 billion by 2028, with a compound annual growth rate of about 8%.
For the new energy vehicle high voltage connection system product line construction project, Luxshare Precision Industry Co.Ltd(002475) said that the total investment of the project is 1.5 billion yuan, including 1.477 billion yuan of construction investment and 23.4732 million yuan of initial working capital. After the completion of the project, it will mainly focus on the R & D, production and sales of high-voltage connection system parts of new energy vehicles. Relevant products are mainly used in the field of new energy vehicles, not involving the R & D, production and sales of new energy vehicles. After calculation, the after tax internal rate of return of the project is 30.47%, and the after tax static investment payback period (excluding the construction period) is 4.03 years.
As Luxshare Precision Industry Co.Ltd(002475) applied to the CSRC for non-public offering of shares, according to the requirements of the regulatory authorities, the company will explain the relevant punishment or regulatory measures and rectification issued by the securities regulatory authorities and Shenzhen Stock Exchange to the company in the past five years. Luxshare Precision Industry Co.Ltd(002475) said that the company has not been punished by the securities regulatory authorities and the exchange in the past five years, but on December 28, 2021, the Shenzhen Stock Exchange issued a regulatory letter to Luxshare Precision Industry Co.Ltd(002475) .
According to the supervision letter, on December 3, Luxshare Precision Industry Co.Ltd(002475) disclosed the announcement on adjusting the exercise number of stock option incentive plan in 2018 and canceling some stock options, in which the total number of stock options to be cancelled and the number of stock options exercisable by incentive objects were inaccurate, resulting in errors in the company’s handling of relevant option cancellation and registration business.
In addition, Luxshare Precision Industry Co.Ltd(002475) also responded to the question of whether the company obtained new mobile phone orders from key customers as expected this year. “The company’s business performance continues to meet the needs of customers and is highly recognized by customers. The company will serve customers more deeply as an important partner, and the relevant business cooperation is carried out smoothly without any failure to meet the expectations of customers and the company.”
