Luxshare Precision SIP Industrial Base settled in Shenzhen Shajing: annual output value may reach 20 billion yuan

On August 2, Shenzhen West Gravity Bay Heart Viewing Shajing - Bao'an District Major Project and Industrial Space Resources Matchmaking Conference (Shajing Special) opened at the Central Asia Silicon Valley Coast in the district. Luxshare Precision Industry Co., Ltd. (hereinafter referred to as "Luxshare Precision") and other 18 major projects were successfully signed at the matchmaking conference, with a planned investment of approximately RMB 54.6 billion and an estimated annual output value of RMB 82.2 billion or more.

Among them, Luxshare Precision plans to invest in the construction of the Shajing SIP Industrial Base in Bao'an District, Shenzhen. It will set up a new company, build a research and development center and production workshop, and build it into a leading domestic and foreign SIP product research and development and sales base. After the project is completed, the annual output value is expected to be 20 billion yuan.

Luxshare Precision is a leading company in the field of base station antennas. Chairman Wang Laichun said: "This matchmaking meeting once again injected strong technological innovation and intelligent manufacturing capabilities into the industrial town of Shajing. I also deeply felt the full sincerity of Shajing to work with high-quality companies to seek common development. They embody tangible high-quality services in every link, which further strengthened my determination to cultivate Shajing, this hot land, and make the company bigger and stronger."

It is understood that Luxshare Precision mainly produces and sells components, modules and system products such as connecting cables, connectors, acoustics, wireless charging, motors, antennas, smart wearables, smart accessories, etc. Its products are widely used in computers and peripherals, consumer electronics, communications, automobiles and medical fields.

It was disclosed that in 2019, Luxshare Precision achieved sales revenue of 62.516 billion yuan, a year-on-year increase of 74.38%; the net profit attributable to shareholders of the listed company was 4.714 billion yuan, a year-on-year increase of 73.13%, a large increase.

At present, the company's overseas revenue accounts for a large proportion of its operating income, which is mainly settled in US dollars. From 2017 to 2019, the company's overseas sales were RMB 1,936,907.15 million, RMB 3,201,076.19 million and RMB 5,746,538.38 million, respectively, accounting for 84.85%, 89.29% and 91.92% of its main business income, respectively. The risk faced by the company is that when the exchange rate fluctuates greatly, it will cause uncertainty to the company's operating results.

In terms of future development, Luxshare Precision stated that in 2020, the company will vigorously promote the platform construction of automation technology, upgrade automation resources into a general-purpose group shared platform, enable switching among different products and modules, and while giving full play to the effectiveness of cross-border applications, it will also significantly reduce related resource investment and improve capital utilization efficiency.