1、Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall pr
2、evail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .1Luxshare Precision Industry Co.,Ltd.Annual ReportFor the year ended December 31,20202021-032April 2021Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated
3、version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry
4、 Co.,Ltd.may be obtained at .2Section I.Important Note,Table of Contents and DefinitionsThe Board of Directors,the Board of Supervisors,directors,supervisors and executivesof the Company hereby warrant that the information contained in this Annual Report is true,accurate and complete and this Annual
5、 Report is free from any misrepresentation,misleadingstatement or material omission,and agree to assume joint and several liability for this AnnualReport.WANG Laichun,Principal of the Company,CFO WU Tiansong and AccountingSupervisor XIAO Na hereby represent that the financial statements contained in
6、 this AnnualReport are true,accurate and complete.All directors of the Company attended the meeting of the Board of Directors reviewingthis Report.The relevant risks facing the Company are set out in“Section IV Discussion and Analysisof Business Situations-IX.Prospects for future development of the
7、Company”.According to the profit distribution proposal approved by the Board of Directors,theCompany will distribute a cash dividends of RMB1.1 and 0 bonus share(both inclusive of tax)per 10 shares to all shareholders on the basis of 7,035,426,367 shares,and will not transfer anycapital reserve to t
8、he share capital for the reporting period.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Indust
9、ry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .3Table of ContentsSection I.Important Note,Table of Contents and Definitions.2Section II Company Profile and Financial Highlights.5Section III Bu
10、siness.9Section IV.Discussion andAnalysis of Business Situations.24Section V Significant Matters.51Section VI Changes in Shares and Shareholders.71Section VII Preferred Shares.79Section VIII Convertible Corporate Bonds.80Section IX Directors,Supervisors,Senior Management and Employees.82Section X Co
11、rporate Governance.93Section XI Corporate Bonds.105Section XII Financial Report.106Section XIII List of Documents Available for Inspection.294Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision In
12、dustry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .4DefinitionsTermsDefinitionLuxshare-ICTmeansL
13、uxshare Precision Industry Co.,Ltd.Luxshare HKmeansLuxsharePrecisionLimited(HK),founderandcontrollingshareholderofLuxshare-ICTXuntao DongguanmeansDongguan Xuntao Electronic Co.,Ltd.Luxshare DongguanmeansDongguan Luxshare Precision Industry Co.,Ltd.Leader DongguanmeansDongguan Leader Precision Indust
14、ry Co.,Ltd.Xiexun JianmeansXiexun Electronic(Jian)Co.,Ltd.Intelligent Manufacture JiangximeansJiangxi Luxshare Intelligent Manufacture Co.,Ltd.ASAP JiangximeansASAP Technology(Jiangxi)Co.,Ltd.Xiexun WananmeansWanan Xiexun Electronic Co.,Ltd.Xiexun XinyumeansXinyu Xiexun Electronic Co.,Ltd.Luxshare K
15、unshanmeansKunshan Luxshare Precision Industry Co.,Ltd.Lanto KunshanmeansLanto Electronic LimitedLuxshare Electronic KunshanmeansLuxshare Electronic Technology(Kunshan)Co.,Ltd.Luxshare Intelligent ManufacturemeansLuxshare Intelligent Manufacture(Zhejiang)Co.,Ltd.Luxshare SuzhoumeansLuxshare Precisio
16、n Industry(Suzhou)Co.,Ltd.Luxshare ChangshumeansLuxshare Intelligent Manufacture Technology(Changshu)Co.,Ltd.LuxshareAutomation JiangsumeansLuxshareAutomation(Jiangsu)Ltd.Lanto BozhoumeansBozhou Lanto Electronic LimitedLuxshare ChuzhoumeansLuxshare Precision Industry(Chuzhou)Ltd.Luxshare Fengshunmea
17、nsFengshun Luxshare Precision Industry Co.,Ltd.Rikai ComputermeansRikai Computer Accessories Co.,Ltd.Luxshare VietnammeansLuxshare-ICT(Vietnam)LimitedLuxshare Van TrungmeansLuxshare-ICT(Van Trung)Company LimitedLuxshare NgheAnmeansLuxshare-ICT(NgheAn)LimitedLuxshare PrecisionmeansLuxshare Precision
18、LimitedICT-LantomeansICT-Lanto LimitedSuKmeansSuK Kunststofftechnik GmbHMeite SuzhoumeansMeite Technology(Suzhou)Co.,Ltd.Weichuang JiangsumeansWeichuang Investment(Jiangsu)Co.,Ltd.Weixin KunshanmeansWeixin Zitong(Kunshan)Co.,Ltd.Shenzhen MSAmeansShenzhen Administration for Industry and Commerce,whic
19、h was integrated into theMarket SupervisionAdministration of Shenzhen MunicipalityAOAmeansArticles of Association of Luxshare Precision Industry Co.,Ltd.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare P
20、recision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .5Section II Company Profile and Fi
21、nancial HighlightsI.Company profileStock short nameLuxshare-ICTStock code002475Stock exchangeShenzhen Stock ExchangeChinese name立訊精密工業股份有限公司Chinese short name立訊精密English name(if any)Luxshare Precision Industry Co.,Ltd.English short name(if any)Luxshare-ICTLegal representativeWANG LaichunRegistered a
22、ddress2/F,Block A,Sanyang New Industrial Zone,West Haoyi,Shajing Street,Baoan District,ShenzhenPostal code of registered address518104Office addressNo.313 Beihuan Road,Qingxi Town,Dongguan,GuangdongPostal code of office address523642Company websitewww.luxshare-EmailPublicluxshare-II.Contact person a
23、nd contact informationBoard SecretarySecuritiesAffairs RepresentativeNameHUANG DaweiLI RuihaoAddressNo.313 Beihuan Road,Qingxi Town,Dongguan,GuangdongNo.313 Beihuan Road,Qingxi Town,Dongguan,GuangdongTelephone0769-878924750769-87892475Fax0769-877324750769-87732475E-mailDavid.Huangluxshare-Ray.Liluxs
24、hare-III.Media for information disclosure and place for keeping annual reportDesignated newspapers for information disclosureSecurities TimesWebsites designated by the China SecuritiesRegulation Commission for publishing annual Place for keeping annual reportSecuritiesAffairs Office of the CompanyIV
25、.Changes in registration particularsChange in organization codeNoChanges in main business since the listingof the Company(if any)NoChanges in controlling shareholder(if any)NoV.Other related informationAccounting firm engaged by the CompanyName of accounting firmBDO China Shu Lun Pan Certified Publi
26、cAccountants LLPOffice address of accounting firmRooms 1,2&3,4/F,No.61 East Nanjing Road,Huangpu District,ShanghaiName of accountants signing this reportLI Jing and WEI GangLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Repor
27、t 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .6Sponsor engag
28、ed by the Company that performs the duties of ongoing supervision over the Company during the reporting periodApplicable N/AName of sponsorOffice address of sponsorNames of sponsorrepresentativesPeriod of ongoing supervisionCITIC Securities Co.,Ltd.19/F,North Tower,Excellence TimesPlaza(Phase II),No
29、.8 3rdCentralRoad,Futian District,ShenzhenHEFengandLIUGuanzhongFrom December2,2020 toDecember 31,2021Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the reportingperiodApplicable N/AVI.Key accounting data and financial indicatorsDid th
30、e Company need to retrospectively adjust or re-state any accounting data of prior accounting years?Yes No20202019Y/Y%Change2018Operating revenue(RMB)92,501,259,211.5462,516,314,588.4247.96%35,849,964,160.13Netprofitattributabletoshareholders of the listed company(RMB)7,225,462,752.584,713,820,644.90
31、53.28%2,722,631,125.23Netprofitattributabletoshareholders of the listed companyafter deduction of extraordinarygain or loss(RMB)6,088,901,850.864,435,974,109.4137.26%2,553,973,258.82Net cash flows from operatingactivities(RMB)6,873,211,486.057,465,988,174.33-7.94%3,142,307,168.34Basicearningspershar
32、e(RMB/share)1.030.6851.47%0.37Dilutedearningspershare(RMB/share)1.010.6750.75%0.37Weighted average return on netassets30.29%26.55%3.74%17.95%December 31,2020December 31,2019Y/Y%ChangeDecember 31,2018Total assets(RMB)70,012,753,551.7549,377,910,671.2341.79%36,441,441,236.44Netassetsattributabletoshar
33、eholders of the listed company(RMB)28,101,816,234.5620,296,618,968.5238.46%15,497,944,981.18Whether the lower of the net profit before and after deduction of extraordinary gain or loss in the past three accounting years hasbeen negative and the most recent annual auditors report indicates that the C
34、ompanys ability to continue as a going concern isuncertain?Yes NoWhether the lower of the net profit before and after deduction of extraordinary gain or loss is negative?Yes NoLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Re
35、port 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .7VII.Differ
36、ences in accounting data arising from adoption of foreign and Chinese accountingstandards concurrently1.Differences in net profit and net assets disclosed on the financial statements according to theinternational accounting standards and the Chinese accounting standardsApplicable N/AThere wasnt any
37、difference in net profit and net assets disclosed on the financial statements for the reporting period due to adoptionof the international accounting standards and the Chinese accounting standards by us concurrently.2.Differences in net profit and net assets disclosed on the financial statements acc
38、ording to the foreignaccounting standards and the Chinese accounting standardsApplicable N/AThere wasnt any difference in net profit and net assets disclosed on the financial statements for the reporting period due to adoptionof the foreign accounting standards and the Chinese accounting standards b
39、y us concurrently.VIII.Main quarterly financial indicatorsIn RMBFirst quarterSecond quarterThird quarterFourth quarterOperating revenue16,513,283,460.6619,938,342,688.2023,076,494,141.4032,973,138,921.28Netprofitattributabletoshareholders of the listed company981,870,190.711,555,904,567.752,141,839,
40、306.572,545,848,687.55Netprofitattributabletoshareholders of the listed companyafter deduction of extraordinarygain or loss896,806,034.691,441,507,176.131,872,789,269.221,877,799,370.82Net cash flows from operatingactivities1,319,173,417.541,862,770,924.91-441,882,109.674,133,149,253.27Whether there
41、s any significant difference between the financial indicators set forth above or aggregate amounts thereof and thecorresponding financial indicators contained in any quarterly or semi-annual report already disclosed?Yes NoIX.Items and amounts of extraordinary gains or lossesApplicable N/AIn RMBItem2
42、02020192018RemarkGain or loss on disposal of non-current assets(including allowance for impairment of assets that hasbeen written off)-35,503,173.93-110,085,527.48-17,424,350.63Government grants recognized in profit or loss(excluding government grants that are closely relatedto the business of the C
43、ompany and are provided infixed amount or quantity continuously according tothe applicable polices of the country)450,749,695.89232,311,428.35123,984,003.37Gain or loss on assets under entrusted investment ormanagement113,778,335.7889,722,710.3278,134,882.23Gain or loss on changes in fair value of f
44、inancialassets held for trading,derivative financial assets andfinancial liabilities held for trading,and gain ondisposal of financial assets held for trading,derivative837,100,369.42131,736,631.3749,088,345.36Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated versio
45、n of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,L
46、td.may be obtained at .8financial assets,financial liabilities held for tradingand other debt instruments,except for effectivehedges held in the ordinary course of businessOther non-operating income and expenses30,554,498.37-999,739.3210,263,319.96Othergainorlosswithinthemeaningofextraordinary gain
47、or loss-45,901,431.11Less:Effect of income tax214,489,873.6855,533,801.9922,195,598.91Effect of minority interest(exclusive of tax)45,628,950.139,305,165.767,291,303.86Total1,136,560,901.72277,846,535.49168,657,866.41-If the Company classifies any item of extraordinary gain or loss defined by or lis
48、ted in the Explanatory Announcement No.1 onInformation Disclosure for Companies Publicly Offering Securities-Extraordinary Gain or Loss as recurrent profit or loss,pleaseexplain the reason.Applicable N/AWe have not classified any item of extraordinary gain or loss defined by or listed in the Explana
49、tory Announcement No.1 onInformation Disclosure for Companies Publicly Offering Securities-Extraordinary Gain or Loss as recurrent profit or loss in thereporting period.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 20
50、20 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .9Section III Busin
51、essI.Main business in the reporting period1.OverviewWe are engaged in the research,development,manufacturing and sales of products in the fields of consumerelectronics,communication,auto electronics and healthcare,among others.In 2020,in light of the complicated externalenvironment,we efficiently im
52、plemented the development plans and objectives established by the management,cautiously and flexibly coped with the external environment,and realized rapid growth of all scopes of business.Ourkey management has continuously made deployments for future development centered on our main business,andfoc
53、used on maximizing benefits and realizing sustainable development.Our products and scopes of business are diversified and vertically integrated,and we provide components,modulesand system assembly.The business of precision components is a field in which we have set foot earliest andaccumulated riche
54、st experience.We have comprehensive production processes,including design and processing ofprecision molds,design and realization of intelligent automation,CNC,SMT,SiP,stamping,molding,electroplating,conductor extraction and bare wire extrusion,enabling us to ensure the quality of our products and t
55、imely delivery ofproducts to customers.In addition,we master all basic processes,which help us make continuous innovations in newtechnologies and new processes.Our module products focus on acoustic,radio frequency,touch control,power andfunctional fields,and mainly include acoustic modules,antennas,
56、wireless charging and vibration motors.In the field ofcommunication and data center,our products mainly include high-speed connectivity,optic module,cooling module,base station antenna and base station filter.Through focusing on technology development and combining the efforts ofenterprises,universi
57、ties and research institutes,we are leading the way in certain market segments in the world.In thefield of automotives,we focus on the“blood vessels and nervous system”of automotives,and offer automotive wireharness,special wire harness,high-voltage wire harness for new energy vehicles,connector,sma
58、rt electric box,road-side unit(RSU),telematics control unit(TCU),central gateway and other products.In the communication andautomotive business,we greatly benefit from our strong process,research,development,quality,operation and othercomprehensive capabilities accumulated in the field of consumer e
59、lectronics in our early stage of development.Themature experiences and a variety of resources owned by us in different fields have produced a synergy effect andformed a virtuous cycle featuring mutual nourishment and mutual promotion.We concentrate our efforts on thespecialization in and optimizatio
60、n of underlying technologies,made in-depth deployments in acoustic,visual,power(wired/wireless),wireless communication and other fields to meet future demands.Our products have been widelyapplied in the fields of consumer electronics and automotives.By comprehensively mastering the technologies rela
61、tingto various components and modules,and super-precision manufacturing technologies accumulated over the years,wegive full play to our advantages in vertical integration.In recent years,we have continuously restructured the supplychain in the field of system assembly,to create more value for our cu
62、stomers,thereby gaining customers support andconfidence.Our main products in the field of system assembly include smart wearable,smart home and smart displayproducts.In launching a new product,we focus on the product quality,yield rate and optimization of production cost on thebasis of innovative pr
63、oduction technology,intelligent automation and digital platform,thereby enabling us to makecontinuous and substantial breakthroughs in new markets,new customers and new products.In the implementation ofrelated controls,there is no doubt that the automation technologies lay the strong foundation for
64、our core competencies.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Ch
65、inese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .10Therefore,we attach great importance to the continuous exploration of automatic and intelligent manufacturing.Ourcore teams spirit of in-depth exploration of proce
66、sses and determination to accomplish all tasks assigned guarantee thesuccess in the development and design of automation technologies.According to the requirements for cosmetic,size,functions and reliability of products,we disassemble and study all manufacturing processes,and make efforts to solvepr
67、ocess challenges with reference to our past experience and advanced technologies available on the market.With thegoal of zero loss and zero defect,we strive to realize the reasonableness,standardization and automation of designs interems of yield rate,efficiency,cost,etc.After the completion of proc
68、ess study,we realize process design through automation,including automation ofwork stations,handling and positioning,testing,warehousing,logistics and production process.Standardization is theprerequisite for automation,because standardized products cannot be made without the use of standardized equ
69、ipmentand processes.With respect to the products that have a low demand and change frequently,we mainly use man-machineflexible automation technologies.In the design of automatic equipment,we make plans for MES system,IoT access and key work stationinformation flows needing to be controlled simultan
70、eously,and build a model of digital factory on that basis.Thereafter,we convert all problems and phenomenon into data,and then process and judge the data systematically,and present thesame in the form of visual reports,to realize whole-process traceability of products,materials,people,equipment,fixt
71、ures,process technology and quality information,among others,implement close-end control,and ensure theeffective realization of automation.On that basis,we introduce digital models,use modeling approaches to connect production with data flows,andthrough the use of big data,cloud computing,artificial
72、 intelligence,digital twin and other technologies,deeply explorethe information and trends on the back of data,seek benefits from data,and finally realize intelligentization,andself-judgment,self decision-making,self-adjustment and self-execution by machines,so that the machines are able tosolve tan
73、gible problems and predict intangible problems on their own,thereby achieving the long-term goal ofintelligent manufacturing.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“
74、立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .111.精益化工藝的深度拆解和前瞻研究設計的合理化、標準化和簡單化產線的精益布局規劃3.數字化IOT、制造數字化集成可視化控
75、制中心和管理運營流程自動化貫通1.ImprovementIn-depthdisassemblyofandforward-lookingresearch on processesReasonableness,standardization and simplificationof designImproved layout of production lines3.DigitalizationDigital integration of IoT and manufacturingVisual control center and managementAutomation of the whole
76、 operation process2.自動化搬運-加工-檢測-物流-倉儲的全流程自動化柔性自動化系統分析4.智能化機器自感知、自學習、自決策、自執行解決有形的問題和預測無形的問題數據驅動管理決策2.AutomationWhole-process automation of handling,processing,testing,logistics and warehousingAnalysis of flexible automation system4.IntelligentizationSelf-sensing,self-learning,self decision-making and
77、self-execution of machinesSolvetangibleproblemsandpredictintangibleproblemsData-driven management decision-making物理域精益生產布局精益工藝研究工藝數字化流程數字化Physical fieldImproved productionlayoutImproved processstudyTechnologicaldigitalizationProcess digitalization精益化數字化智能制造信息域制成自動化ImprovementDigitalizationIntelligen
78、tmanufacturingInformation fieldManufacturingautomationLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Prec
79、ision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .12自動化智能化預測性分析物流自動化高級決策支持AutomationIntelligentizationPredictive analysisLogisticsautomationAdvanceddecision-making support2.Consumer e
80、lectronics businessFrom the perspective of applications,consumer electronics,communication and automotives are our main productand business segments.In the field of consumer electronics,we offer a wide range of products,centering on future 5Gsmart life,while utilizing our existing resources,and grad
81、ually diversify our product offerings.Our products includeacoustic products,such as TWS earphone,bluetooth headphone,high-end gaming headset and small-sized high-qualitystereo speaker,smart home products,such as 5G router and Wi-Fi 6 portable router,smart terminal products,such aswearable watch and
82、wristband,tracker,game controller and AR/VR,computer accessories,such as Dock and intelligentstylus,and wired and wireless charging accessories for various PC/NB/mobile phone brands for retail sale.In additionto traditional products,we will launch a variety of customized smart products in conjunctio
83、n with different platformcustomers,to enrich our product offerings.智能音箱智能手機VR眼鏡5G路由器智能穿戴無人機Smart speakerSamrt phoneVR eyeglasses5G routerSmart wearableDrone電子煙無線充模組聲學模組震動馬達5G模組天線ElectroniccigaretteWirelesscharging moduleAcoustic moduleVibration motor5G moduleAntenna機殼射頻線材線纜機構件連接器核心工藝智能制造CasingRadio
84、frequencyWire and cableMechanicalcomponentsConnectorCore technologyIntelligentmanufacturingLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the publishe
85、d Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .133.Communication businessDriven by 5G,big data and edge computing technologies,the ICT industry
86、 has been growing vigorously,and thehardware equipment shows a tendency towards gradual opening of interfaces and high integration of functions.In lightof such background,we have continuously extended the mix of our hardware communication products.At present,ourwhole-machine products include base st
87、ation antenna,base station filter,tower mounted amplifier,duplexer,combiner,RRU,AAU,small base station,etc.,and core component products include high-speed connector,high-speed cableassembly,photoelectric conversion and optic transmission application products,cooling module,transmission module,RCU,et
88、c.Through such product mix,our strategy of developing both whole machine products and core componentproducts(electric connector,optical connector and thermal management)has begun to show results.We have focused on the development of core technological capabilities and basic research and development(
89、R&D)capabilities through research of simulation technology,new materials and new processes and application of testingtechnologies,so that we can provide strong technical support regardless of any change in product forms.With respect tosystem products,through disassembly of modules and components con
90、tained in the products,and single-pointmanufacturing processes and technologies,we are able to realize highly or wholly automated,efficient and high-qualityproduction and manufacturing for large and small batches of products.ICT系統產品家族天線系統濾波器射頻模塊ICT system product familyAntenna systemFilterRadio freq
91、uency moduleWith respect to core component products,we rely on the application in data centers,servers,switches andmemories,enhance our innovation and R&D capabilities in respect of electrical connection products,establish acomplete interface system,and create a dual-core engine combining standards
92、and patents,so as to take the lead on themarket.With respect to optical connection products,we have engaged in the development of technologies that areexpected to be applied in the next three to five years,to lay the foundation for the integration of electrical connectiontechnologies in the future,a
93、nd realize corner overtaking in key areas.With respect to thermal management products,inlight of strong demands,we will develop outstanding product and technical capabilities within two to three years,tooccupy a favorable position on the future market.Luxshare Precision Industry Co.,Ltd.Annual Repor
94、t 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report
95、 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .14核心零部件數據中心產品家族匯聚交換機接入交換機數據中心機架群機架內服務器群Corecomponentsdatacenter product familyAggregationswitchAccess switchDatacenterrackclusterServer cluster insiderack應用：數據中心機架內/機架間互連服務器與交換機互連：單口速率：傳輸距離：應用：數據中心機架內互連服務器與接入交換機互連：單口速率：傳輸距離：Application
96、:Intra-rack/inter-rackconnectionatdatacenterServer-switch connectionSingle-port rate:Transmission distance:Application:Intra-rack connection at data centerServer-access switch connectionSingle-port rate:Transmission distance:Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a tr
97、anslated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision
98、 Industry Co.,Ltd.may be obtained at .15核心零部件服務器/存儲/交換機產品家族電連解決方案散熱解決方案軸流風扇Corecomponentsserver/memory/switch product familyElectrical connection solutionCooling solutionAxial fan光模塊散熱器服務器CPU散熱器800G應用（功率12-24W）Optical module coolerServer CPU cooler800G application(Power:12-24W)應用：服務器/存儲/交換機高速互連解決方案單
99、口速率外部IO/背板：內部IO：自研界面：軒猿平臺高速背板：服務器互連界面：下一代互連形態：Application:Server/memory/switch high-speed connectivity solutionSingle port rate:Exterior IO/backboardInterior IO:Self-developedinterface:XuanYuanplatformHigh-speed backboard:Server connection interface:Next-generation connectivity form:Our“whole machin
100、e+core components”double-line strategy lays the foundation for the provision of one-stop andcomprehensive services to our customers.In addition,the increasing high ceiling of the market and increasing largespace for growth will give strong support to our long-term growth in the next five to ten year
101、s.4.Automotive businessAt present,the automotive industry is transiting from traditional manufacturing to scientific and technologicalmanufacturing.Vehicles are gradually developing from pure riding tools to an interconnected space on wheelsintegrating entertainment,office and consumption.The demand
102、s of vehicle consumers for intelligentization andpersonalization drive the transition of vehicles towards super-smart terminals.Led by Tesla,smart cabin becomes anarea of breakthrough,which creates a wholly-new experience of man-vehicle interaction through the provision of LCDpanel,central control s
103、creen and other functions,extends the functions of smart phones to vehicles,and realizesseamless connection with mobile phones.The increasingly wide application of ADAS and the Internet of Vehicles willLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the
104、 Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may b
105、e obtained at .16also promote the intelligentization of vehicles and accelerate the entry into an era of smart vehicles.汽車向智能終端演進的過程中將迎來黃金十年We will enter into a golden decade during the transition of vehicles towards smart terminals電動化智能化網聯化共享化MotorizationIntelligentizationNetworkingSharing行業趨勢智能座艙、
106、智能駕駛無人網約車服務零部件/軟件服務Industrial trendSmart cabin,smart driveUnmanned car hailingserviceComponents/softwareservice整車制造整車品牌/主要玩家電池/電子電氣架構FOTA升級及服務Vehicle makingVehicle brands/mainplayersBattery/electrical andelectronic architectureFOTA upgrading andservice品牌群雄并起、百花齊放特斯拉、新勢力A lot of brands enter the mark
107、etTelsa,new players傳統車企擁抱新趨勢百度等自動駕駛方案Traditional car manufacturers follow the new trendAuto-drive solutions offered by Baidu and other entities小米等手機巨頭軟件升級+服務變現Xiaomi and other mobile phone tycoonsSoftware upgrading+service monetization平臺型汽車企業市場份額更加走向集中化自動駕駛能力硬件整合能力跨平臺軟件、服務變現能力無人車運營能力Platform-style c
108、ar manufacturersMarket shares are increasingly concentratedAuto-drive capabilityHardware integration capabilityTrans-platform software and service monetizationcapabilityUnmanned vehicle operation capability硬件快速迭代（硬件成本下行、品牌廠積極創新、快速基于傳統汽車設計的硬件迭代Luxshare Precision Industry Co.,Ltd.Annual Report 2020Thi
109、s document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of
110、Luxshare Precision Industry Co.,Ltd.may be obtained at .17迭代以實現差異化）Hardware is upgrading quickly(decrease in costs ofhardware,active innovation of brands,quick upgrading toachieve differentiation)Hardware upgrading based on traditional vehicle design硬件設計趨于標準化，通過軟件及服務尋求差異提升車企利潤率和客戶粘性整車百花齊放，同時創新動能提升，帶
111、動零部件機會電動化、智能化ASP提升Hardware design tends towards standardization,withthe intention to achieve differentiation throughsoftware and servicesIncrease the gross margin and customer adhesion ofcar manufacturersA lot of car manufacturers enter the market and showenthusiasm for innovation,bringing in moreop
112、portunities for componentsMore motorized and smart ASP車的形態變化（標準化、模塊化設計）硬件格局走向集中，軟件及服務生態建立Change in form of vehicle(standardized and modulardesign)Hardware tends towards concentration and the ecosystemof software and service is establishedWe have been engaged in automotive business for many years,at
113、present,focus on automotive electrics and smartnetworking,or the“blood vessels and nervous system”of automotives,and offer low-voltage automotive wire harness,special wire harness,high-voltage wire harness for new energy vehicles,high-speed connector,smart electric box,road-side unit(RSU),telematics
114、 control unit(TCU),central gateway and other products.Wire harness is an essential system-level component for a vehicle,is flexible,important and widely used,coversall configurations of a vehicle,and provides reliable power supply,signals and data to all electric appliances,so theyserve as“arteries”
115、of the“neural network”of a vehicle.Automotive wire harness is a main artery supplying nutrientsthroughout the vehicle,while special wire harness is an“umbilical cord”or“nerve ending”,which obtains power andsignals from the automotive wire harness and effects switches and connections among different
116、sensors,actuators orother components.Through vertical integration,we have grown into a comprehensive supplier covering design,manufacturing and validation of automotive wire harness,special wire harness and smart electric box.Along with the rapid growth of smart electric vehicles throughout the worl
117、d,high-voltage wire harnesses andconnectors will constitute an increasingly high proportion on future vehicles.We have designed and developed allkinds of high-voltage wire harnesses and connectors used on a vehicle,including high-voltage wire harness,chargingLuxshare Precision Industry Co.,Ltd.Annua
118、l Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual
119、 Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .18connector,high-voltage connector,busbar,etc.高壓連接器母排充電槍、充電座、充電線束總成母排系統總成High-voltage connectorBusbarCharging gun,charging dock&charging wire harness assemblyBusbar system assemblyDue to the concentration of automotive electroni
120、c architecture,in order to realize more rapid and accuratecommunication,the demands for various automotive data communication modules and interfaces are growingcontinuously,such as gateway,remore communication and other modules related to LIN,CAN and 100M/gigabitethernet transmission.However,the tra
121、nsmission of such high-speed signals faces new challegnes.Our proprietarygigabit ethernet connector adopts a wholly shielded double cable connection structure,and can be widely used oninfotainment,ADAS,domain controller and other products.高速連接器應用物理接口及連接類型High-speed connector applicationPhysical inte
122、rface and type of connectionThe Internet of Vehicles relies on the new-generation information communication technology,receivesLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.
123、(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .19information from and transmits information to moving vehic
124、les,so as to realize networking between vehicles,betweenvehicles and people,between vehicles and roads,and between vehicles and service platforms,and can play an importantrole in vehicle safety,traffic control,information service,smart city and intelligent transportation.At present,theInternet of Ve
125、hicles applications are key projects of government and OEMs,and require coordination among multipledevices,such as road-side unit(RSU)which collects environment,traffic condition,traffic sign and other informationand sends the same to vehicles,telematics control unit(TCU)which effects two-way commun
126、ication between vehiclesand external networks,central gateway(CGW)which connects all electronic devices on a vehicle,and other products.We focus on the development of wireless communication and automotive electronic products,and currently offer RSU,TCU and CGW,among others.By leveraging our precisio
127、n manufacturing platform and outstanding customer channels,our low-voltage,high-voltage and high-speed wire harness,connector,smart networking and other products have rapidly entered thesupply chains of major domestic and foreign customers,accumulated rich cases of application and been widelyrecogni
128、zed by our customers.Meanwhile,we keep pace with our premium customers at home and abroad,accuratelygrasp the development direction of technologies and the industry,and actively promote the technological upgrading ofproducts and reduction of costs through technology,to continuously provide our custo
129、mers with products and solutionsthat are competitive in both technology and business.5.Main market and business developmentEach main field in which we operate has a huge market.We have substantially the same resolution and persistencein pursuing growth in each field.From the perspective of sustainab
130、le development,our top priority is to invest in thefuture.In 2020,our R&D expenses totaled RMB5.745 billion.In the future,we will continue to invest in all main fieldsof products and business,make forward-looking deployments,and prevent and control risks,to realize healthydevelopment.Growth of main
131、businessArea ofbusinessType of business/productsMarket size in 2020(in RMB100 million)Compound annualgrowth rate of marketsizeSourceConsumerelectronicsSmart phone279153.60%IDS,StatistaPC110100.20%Gartner,IDS,StatistaAR/VR78256.90%IDCLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document
132、 is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare P
133、recision Industry Co.,Ltd.may be obtained at .20TWS373118.60%Markets and MarketsSmart watch160519.60%Allied Market ResearchWireless charging82014.50%Global Market InsightsUAV66814%East Money,InteractiveAnalysisDock/Dongle4342.50%Industry report,internalanalysisSubtotal46964CommunicationICT equipment
134、111375%IDCCable/connector21108%BishopOptical products71610%Light CountingSubtotal13964AutomotiveWire harness29083.10%Markets and MarketsConnector12655%Research and MarketsADAS235820.7%Markets and MarketsSmart cabin348611%Allied Market Research,Stratreview,StatistaResearch DepartmentSmartconnectivity
135、4544.20%Markets and MarketsSubtotal10061Total70990During the reporting period,we ranked the second on the 33rdlist of top 100 electronic component manufacturersof China(2020)published by the China Electronic Components Association,and were awarded the honorable titles of“top 500 private enterprises
136、of China”,“top 500 private manufacturers of China”,“top 100 electronic informationmanufacturers of Guangdong”and“40 most respected listed companies of the Shenzhen Special Economic Zone in thepast 40 years”,among others.II.Material changes in major assets1.Material changes in major assetsMajor asset
137、sReason of material changesEquity assetsNo material changeFixed assetsA 44.16%increase year on year,primarily due to an increase in investment in factorybuildings,dormitories and equipmentIntangible assetsNo material changeConstruction in progressA 84.40%increase year on year,primarily due to an inc
138、rease in investment inuncompleted factory building and dormitory construction projects and equipmentShort-term borrowingsA 81.87%increase year on year,primarily due to an increase in borrowings for workingcapital purposeinventoriesA 71.55%increase year on year,primarily due to an increase in invento
139、ry storage levelalong with our business growthNotes payableA37.74%decrease year on year,primarily due to a decrease in note transactionsDeferred incomeA 66.11%increase year on year,primarily due to an increase in government grants ascapital contributionAccounts payableA 33.49%increase year on year,p
140、rimarily due to an increase in inventory storage levelalong with our business growth2.Major overseas assetsApplicable N/ALuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密
141、 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .21III.Analysis of core competenciesSince our establishment,we have
142、 adhered to our original intention,focused on precision manufacturing,persevered insystematic thought and process innovation,kept pace with the times,continuously innovated in traditional solutions,and beencommitted to providing our customers with complete and perfect comprehensive solutions.After y
143、ears of forward-lookingdeployment,deep ploughing and intensive cultivation,we have achieved continuous and rapid growth,and gained core competitiveadvantages in human resources,strategic deployment,technological innovation,quality assurance,customer service and other areas.Our core competencies are
144、reflected in the following aspects:1.Talent selection,training,use and retention mechanisms deeply integrated with corporate cultureThe core competencies of a company will be ultimately reflected in the soft power arising from in-depth integration and mutualnourishment of talents and corporate cultu
145、re.Core talents are the basis for the sustainable development of a company and thecornerstone for cultivating the talents required by a company.We have adhered to the strategy of invigorating the business throughtalents,and continuously improved our talent echelon building system and talent pool mec
146、hanism.We vigorously recruit outstandingtalents required in our development who recognize and conform to the distinctive characteristics of our corporate culture,tocontinuously augment our team of core talents.On the other hand,we continuously improve our talent training system and talentselection s
147、ystem.Along with the growth of our business,we continuously put forward new and reasonable requirements for ouremployees,encourage them to make self break-through in the boundary of their capabilities,and continuously improve their personalcompetences and management capabilities,to contribute new en
148、ergy to our development.Under the nurture of our corporate cultureof being pragmatic and enterprising,constantly striving for perfection,and fulfilling the missions,we provided the key employeeswith a vast space to exercise their talents,effectively stimulated their sense of mission,sense of achieve
149、ment and sense of collectivehonor.At present,we have recruited outstanding talents in materials,automation,electronic information,molds,businessmanagement and other fields throughout the world,to create a talent pool for our sustainable development.We clearly know how to attract and retain talents.T
150、o develop a virtuous circle of people creating the environment and theenvironment creating people through in-depth integration of talents and corporate culture is our strongest core competency.Througheffective talent mechanisms,we have sufficient talents in our traditional superior fields,and have l
151、aid the foundation for our rapiddevelopment in new areas and scopes of business.2.Combination of forward-looking deployment with R&D and technological innovationOur management closely follows up on market trends and developments of the industry,through industrial researches andinternal seminars,revi
152、ews our development situations,analyzes the boundaries of our business,enhances the implementation of the“two five-year”strategic plan,and continuously explores the ways of diversified innovations and development.Our developmenttowards new products and new areas is based on multi-dimensional analysi
153、s of customer demands,competitors,the value we canprovide,the space we can play,profitability and other aspects of the industry and customers,and detailed sand table exercise by ourcore management.With respect to the value that we can provide to our customers,in addition to our vertically integrated
154、 one-stopservice capabilities,we also attach great importance to mastering the technologies of and integrating related modules,to minimizerepeated input of resources,increase the yield rate,and produce a multiplying effect,so as to reduce the overall costs of customersand ensure our return on invest
155、ment.We firmly believe that R&D and technological innovation are an important means to realize forward-looking deployment,andwill drive our development.Since our listing,we have placed R&D and innovation on an important position in our development,made continuous investments in technology R&D,vigoro
156、usly upgraded traditional manufacturing processes,continuously improvedthe level of automatic production,and realized platformization of all precision manufacturing processes.We also attach greatimportance to the long-term development of underlying materials and innovative production technologies.Ou
157、r R&D team hasLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese ve
158、rsion shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .22continuously learned and explored advanced precision manufacturing technologies and product applications in the countries andregions mastering frontier technologies,and es
159、tablished a number of advanced technology development labs with certain corecustomers,to jointly develop frontier technologies,such as the form-in-place technology,AOI appearance inspection and laserwelding.We have established advanced production technology and manufacturing process R&D platforms in
160、 Dongguan,Kunshan,Taiwan and the United States,and own a R&D and intelligent manufacturing team taking the lead in the industry.Our R&D expenses are mainly classified into early stage R&D expenses and product upgrading expenses.Early stage R&Dexpenses are incurred in connection with medium-to-long t
161、erm product and business planning and deployment,and compriseinvestments in new products and new areas and R&D expenses relating to underlying technologies,accounting for about 30%of ourtotal R&D expenses.Product upgrading expenses are incurred in the process from concept to NPI(new product introduc
162、tion)of newsolutions and new products.All early stage R&D expenses and product upgrading expenses are expensed as incurred to reduce thepressure of asset amortization costs in the future.Our R&D expenses have been continuously increasing,and totaled RMB12.636billion in the past three years.In the re
163、porting period,our R&D expenses totaled RMB5.745 billion,representing 6.21%of operatingrevenue.As of the end of the reporting period,we owned 2139 valid patents.The continuous and steady R&D investments will notonly consolidate our leading position and advantages in the industry,but also enhance our
164、 risk bearing capability in an ever-changingmacro environment,and lay a solid foundation for our continuous and rapid development in the future.3.Advanced manufacturing and quality management systemQuality is the foothold of a company,and one of the most important core values provided by a company t
165、o its customers.Sinceour establishment,we have adopted“quality first”as one of our corporate values,established and improved the quality managementsystem using scientific and effective quality management approaches,and integrated quality assurance into the whole process fromdesign,manufacturing to i
166、nspection of products.Due to our excellent quality assurance capability,we have received praise from ourcustomers continuously,and enhanced customer adhesion.We have a full set of advanced NPI(new product introduction)management process,and control quality from the developmentand design of products,
167、to lay a solid basis for successful mass production of the products.In the each stage of development of a newproduct,such as POC(proof of concept),Proto(model verification),EVT(engineering verification test),DVT(design verificationtest),PVT(process verification test)and MP(mass production),etc.,we t
168、ake the highest requirement for mass production that eachstage should satisfy as the criteria for approval of entry into the next stage.We attach great importance to quality precautions,andimplement design quality controls focusing on quality,cost,manufacturing and automation,to shorten the period f
169、rom engineeringdevelopment to mass production.As a global leading provider of diversified component solutions,high-quality precision manufacturing has always been one ofour core competencies.Since our listing,our precision manufacturing capability has developed from“automation with passivepositionin
170、g”to“automation with active positioning”and finally to“full automatic and intelligent”super-precision modularizedmanufacturing today.In the automatic manufacturing of products,we connect product design with the design of automaticmanufacturing process seamlessly,and on the basis of ensuring our proc
171、ess capability at key work stations takes the lead in theindustry,have introduced visual robots to conduct AOI(automatic optical inspection),to realize active and mutual positioningbetween components and fixtures.In addition,we use big data and AI technologies,in conjunction with our proprietary alg
172、orithms,to feed back real-time measuring and testing data,thereby ensuring the reliable quality assurance and full traceability of products,and enabling the automatic production lines to have the deep learning capability,to realize close-end control over the automationtechnology.Through the introduc
173、tion of intelligent logistics and warehousing,we have formally entered into the stage of“intelligentprecision manufacturing”from“precision manufacturing”in the early stage and“quality assured precision manufacturing”in themiddle stage.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This docume
174、nt is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare
175、 Precision Industry Co.,Ltd.may be obtained at .234.All-round customer-oriented cultureSince our establishment,we have adhered to the philosophy of“customer first”,and been committed to providing ourcustomers with complete and perfect comprehensive solutions,taking into comprehensive consideration r
176、esponse speed,engineeringcooperation,service quality,flexible delivery,cost control and other factors.Our leading technologies and excellent qualityassurance capability have helped us build a good brand image and reputation in the industry,and brought high-quality customers tous.After years of culti
177、vation,we have established stable cooperation relationships with a lot of global leading brands andmanufacturers in the fields of consumer electronics,communication and automotive.Over the years,we have kept pace with thestrategic steps made by our major customers,cautiously assessed the development
178、 trends of the industry from the perspective ofbrand customers and end consumers,and made forward-looking deployments to occupy the new markets and new channels,to ensurethat we maintain the lead.Think what customers think and be eager to help the customers in need.Under the guidance of the servicep
179、hilosophy of“customer first”,in addition to fulfilling the tasks assigned by the customers,we have also continuously identified thepain points of the customers in their applications,given full play to our resource and platform advantages,and taken the initiative toprovide the customers with optimiza
180、tion proposals and suggestions,to highlight our competencies.In addition,the high standardsand strict requirements of our core customers have promoted continuous improvement of our performance in production andmanufacturing,product R&D,internal management and social responsibility.Luxshare Precision
181、 Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The complete
182、published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .24Section IV.Discussion andAnalysis of Business SituationsI.SummaryThe year of 2020 is a year in which opportunities coexisted with challenges.Though we were greatly affected by many externalfactors,such a
183、s the outbreak of COVID-19 throughout the world,deep recession of global economy,increasingly fierce tradefrictions between China and the United States,increasingly complicated global politic environment,challenges from competitors atthe stage of our rapid development,and fluctuations in foreign exc
184、hange rates,we focused on R&D investment,intelligentmanufacturing,system optimization and customer service in respect of our main business,further improved and defined our“twofive-year”strategic plan,actively implemented the strategic plan from industrial deployment,talent pooling,technologyaccumula
185、tion,corporate governance and other aspects,continuously improved the feasibility of the strategic plan and our corecompetencies,thereby laying a solid foundation for our rapid growth in 2020 and long-term sustainable development in the future.During the reporting period,our sales revenues totaled R
186、MB92.501 billion,a 47.96%increase year on year;profit totaledRMB8.136 billion,a 44.37%increase year on year;and net profit attributable to the owners of the parent company totaledRMB7.225 billion,a 53.28%increase year on year.II.Analysis of main business1.SummarySee“Discussion andAnalysis of Busines
187、s Situations-I.Summary”.2.Revenue and cost(1)Components of operating revenueIn RMB20202019Y/Y%ChangeAmount%of operatingrevenueAmount%of operatingrevenueTotal operating revenue92,501,259,211.54100%62,516,314,588.42100%47.96%By segmentComputerconnectivityproductsandprecision components3,521,361,712.58
188、3.81%4,113,230,173.746.58%-14.39%Automotive connectivity products andprecision components2,844,031,362.753.07%2,361,411,620.893.78%20.44%Communication connectivity productsand precision components2,265,420,000.592.45%2,237,143,681.553.58%1.26%Consumer electronics81,818,160,358.8888.45%51,990,381,762
189、.5883.16%57.37%Other connectors and other business2,052,285,776.742.22%1,814,147,349.662.90%13.13%By productComputerconnectivityproductsandprecision components3,521,361,712.583.81%4,113,230,173.746.58%-14.39%Automotive connectivity products andprecision components2,844,031,362.753.07%2,361,411,620.8
190、93.78%20.44%Communication connectivity productsand precision components2,265,420,000.592.45%2,237,143,681.553.58%1.26%Consumer electronics81,818,160,358.8888.45%51,990,381,762.5883.16%57.37%Other connectors and other business2,052,285,776.742.22%1,814,147,349.662.90%13.13%By regionDomestic market7,4
191、54,978,348.078.06%5,050,930,778.328.08%47.60%Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Ind
192、ustry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .25Overseas market85,046,280,863.4791.94%57,465,383,810.1091.92%48.00%(2)Segments,products or regions representing more than 10%of operating re
193、venue or profitApplicable N/AIn RMBOperating revenueOperating costGrossmarginY/Y%Changein operatingrevenueY/Y%Change inoperating costY/Y%Change ingross marginBy segmentComputerconnectivityproductsandprecisioncomponents3,521,361,712.582,765,866,774.1621.45%-14.39%-14.63%0.22%Automotiveconnectivitypro
194、ductsandprecisioncomponents2,844,031,362.752,374,148,439.7516.52%20.44%20.35%0.06%Communicationconnectivityproductsandprecision components2,265,420,000.591,818,503,189.9619.73%1.26%-1.67%2.39%Consumer electronics81,818,160,358.8867,217,502,600.7317.85%57.37%61.60%-2.15%Other connectors and otherbusi
195、ness2,052,285,776.741,593,986,044.9822.33%13.13%13.05%0.05%By productComputerconnectivityproductsandprecisioncomponents3,521,361,712.582,765,866,774.1621.45%-14.39%-14.63%0.22%Automotiveconnectivityproductsandprecisioncomponents2,844,031,362.752,374,148,439.7516.52%20.44%20.35%0.06%Communicationconn
196、ectivityproductsandprecision components2,265,420,000.591,818,503,189.9619.73%1.26%-1.67%2.39%Consumer electronics81,818,160,358.8867,217,502,600.7317.85%57.37%61.60%-2.15%Other connectors and otherbusiness2,052,285,776.741,593,986,044.9822.33%13.13%13.05%0.05%By regionDomestic market7,454,978,348.07
197、5,829,458,046.3821.80%47.60%47.93%-0.18%Overseas market85,046,280,863.4769,940,549,003.2017.76%48.00%51.63%-1.97%In case of any adjustment to the statistic scale for main business data,the main business data of the most recent reporting period asadjusted according to the statistic scale applied at t
198、he end of the current reporting period:Applicable N/A(3)Whether the Companys revenue from sales of tangible goods is higher than the revenue from laborservice?Yes NoSegmentItemUnit20202019Y/Y%ChangeComputer connectivity products and precisioncomponentsSales volumeKPCS510,910622,717-17.95%OutputKPCS5
199、37,997650,147-17.25%InventoriesKPCS27,08727,430-1.25%Automotive connectivity products and precisioncomponentsSales volume1000 sets172,912147,55817.18%Output1000 sets184,502157,51817.13%Inventories1000 sets11,5909,96016.37%Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a trans
200、lated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision In
201、dustry Co.,Ltd.may be obtained at .26Communication connectivity products andprecision componentsSales volumeKPCS470,565459,1532.49%OutputKPCS514,389500,8722.70%InventoriesKPCS43,82441,7195.05%Consumer electronicsSales volumeKPCS3,299,9932,241,31347.23%OutputKPCS3,661,4022,412,81051.75%InventoriesKPC
202、S361,409171,497110.74%Other connectors and other businessSales volumeKPCS312,258287,7168.53%OutputKPCS348,814319,3409.23%InventoriesKPCS36,55631,62415.60%Analysis of changes in the relevant data over 30%year on year:Applicable N/A(4)Performance of material sales contracts of the Company as of the en
203、d of the reporting periodApplicable N/A(5)Components of operating costClassification of segments and products:In RMBSegmentItem20202019Y/Y%ChangeAmount%of operatingcostAmount%of operatingcostComputer connectivity products andprecision components2,765,866,774.163.65%3,239,777,227.316.47%-14.63%Automo
204、tive connectivity productsand precision components2,374,148,439.753.13%1,972,707,309.133.94%20.35%Communicationconnectivityproducts and precision components1,818,503,189.962.40%1,849,369,458.983.69%-1.67%Consumer electronics67,217,502,600.7388.72%41,595,999,770.7783.08%61.60%Other connectors and oth
205、er business1,593,986,044.982.10%1,409,976,187.772.82%13.05%In RMBProductItem20202019Y/Y%ChangeAmount%of operatingcostAmount%of operatingcostComputer connectivity products andprecision components2,765,866,774.163.65%3,239,777,227.316.47%-14.63%Automotive connectivity productsand precision components2
206、,374,148,439.753.13%1,972,707,309.133.94%20.35%Communicationconnectivityproducts and precision components1,818,503,189.962.40%1,849,369,458.983.69%-1.67%Consumer electronics67,217,502,600.7388.72%41,595,999,770.7783.08%61.60%Other connectors and other business1,593,986,044.982.10%1,409,976,187.772.8
207、2%13.05%Analysis:None.(6)Change in the scope of consolidation during the reporting period Yes NoEleven newly established or acquired subsidiaries or sub-subsidiaries during the reporting period,namely Suzhou LantoLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated ver
208、sion of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co
209、.,Ltd.may be obtained at .27Electronic Limited,Luxshare Precision Industry(Jiangsu)Co.,Ltd.,Luxshare Electronic(Xingning)Co.,Ltd.,Luxshare Lanto(India)Limited,Changshu Luxshare Industrial Investment Management Co.,Ltd.,Kunshan Luxshare Business Management DevelopmentCo.,Ltd.,Kunshan Luxshare Busines
210、s Management Service Partnership(L.P.),Luxshare Intelligent Equipment(Kunshan)Co.,Ltd.Luxshare Intelligent Manufacture Technology(Rugao)Co.,Ltd.,Cyber Acoustics,LLC(USA)(acquired by share purchase)andTaiqiao Investment Co.,Ltd.,are included in the scope of consolidation.Since we have transferred the
211、 shares held in LuxsharePrecision Industry(Xian)Ltd.during the reporting period,it is removed from the scope of consolidation.(7)Material changes or adjustments in respect of business,products or services of the Company during thereporting periodApplicable N/A(8)Major customers and suppliersMajor cu
212、stomers of the Company:Aggregate sales revenue from top 5 customers(RMB)75,879,315,144.78Proportion of aggregate sales revenue from top 5 customers to annual sales revenue82.03%Proportion of aggregate sales revenue from related parties among top 5 customers to annual sales revenue0.00%Particulars of
213、 top 5 customers:No.Name of customerSales revenue(RMB)%of annual sales revenue1Customer 163,842,579,978.1269.02%2Customer 24,233,870,465.514.58%3Customer 33,919,586,381.664.24%4Customer 42,499,522,718.902.70%5Customer 51,383,755,600.581.50%Total-75,879,315,144.7882.03%Other information of major cust
214、omers:Applicable N/AMajor suppliers of the Company:Aggregate purchase amount from top 5 suppliers(RMB)28,624,009,739.41Proportion of aggregate purchase amount from top 5 suppliers to annual purchase cost39.54%Proportion of aggregate purchase amount from related parties among top 5 suppliers to annua
215、l purchase cost0.00%Particulars of top 5 suppliers:No.Name of supplierPurchase amount(RMB)%of annual purchase cost1Supplier 114,163,172,484.1019.56%2Supplier 28,330,757,002.4511.51%3Supplier 32,640,184,299.133.65%4Supplier 41,893,165,690.842.62%5Supplier 51,596,730,262.892.21%Total-28,624,009,739.41
216、39.54%Other information of major suppliers:Applicable N/A3.ExpensesIn RMB20202019Y/Y%ChangeReason of material changesLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 202
217、0 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .28Sales expenses477,047,875.58498,274,838.05-4.26%Primarily due to tra
218、nsfer of the freightoriginally included in the“sales expenses”to“cost of goods sold”upon adoption of thenew revenue accounting standardGeneral expenses2,463,953,208.631,524,835,061.3861.59%Primarily due to an increase in managementpersonnel along with our business growthFinancial expenses904,828,142
219、.89330,073,445.45174.13%Primarily due to fluctuations in foreignexchange ratesR&D expenses5,744,805,136.334,375,970,646.4731.28%Primarily due to investment in new R&Dprojects and upgrading of products4.R&D expensesApplicable N/AWe firmly believe that R&D and technological innovation are an important
220、 means to realize forward-looking deployment,andwill drive our development.Since our listing,we have placed R&D and innovation on an important position in our development,made continuous investments in technology R&D,vigorously upgraded traditional manufacturing processes,continuously improvedthe le
221、vel of automatic production,and realized platformization of all precision manufacturing processes.We also attach greatimportance to the long-term development of underlying materials and innovative production technologies.Our R&D team hascontinuously learned and explored advanced precision manufactur
222、ing technologies and product applications in the countries andregions mastering frontier technologies,and established a number of advanced technology development labs with certain corecustomers,to jointly develop frontier technologies,such as the form-in-place technology,AOI appearance inspection an
223、d laserwelding.We have established advanced production technology and manufacturing process R&D platforms in Dongguan,Kunshan,Taiwan and the United States,and own a R&D and intelligent manufacturing team taking the lead in the industry.Our R&D expenses are mainly classified into early stage R&D expe
224、nses and product upgrading expenses.Early stage R&Dexpenses are incurred in connection with medium-to-long term product and business planning and deployment,and compriseinvestments in new products and new areas and R&D expenses relating to underlying technologies,accounting for about 30%of ourtotal
225、R&D expenses.Product upgrading expenses are incurred in the process from concept to NPI(new product introduction)of newsolutions and new products.All early stage R&D expenses and product upgrading expenses are expensed as incurred to reduce thepressure of asset amortization costs in the future.Our R
226、&D expenses have been continuously increasing,and totaled RMB12.636billion in the past three years.In the reporting period,our R&D expenses totaled RMB5.745 billion,representing 6.21%of operatingrevenue.As of the end of the reporting period,we owned 2139 valid patents.The continuous and steady R&D i
227、nvestments will notonly consolidate our leading position and advantages in the industry,but also enhance our risk bearing capability in an ever-changingmacro environment,and lay a solid foundation for our continuous and rapid development in the future.Particulars of R&D expenses:20202019Y/Y%ChangeNu
228、mber of R&D personnel15,15412,80918.31%Proportion of R&D personnel to total number of employees8.79%9.33%-0.54%Amount of R&D expenses(RMB)5,744,805,136.334,375,970,646.4731.28%Proportion of R&D expenses to operating revenue6.21%7.00%-0.79%Amount of R&D expenses capitalized(RMB)0.000.000.00%Proportio
229、n of capitalized R&D expenses to total R&D expenses0.00%0.00%0.00%Analysis of significant change in the proportion of R&D expenses to operating revenue compared with 2019:Applicable N/AAnalysis and reasonableness of significant change in the proportion of R&D expenses capitalized:Luxshare Precision
230、Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completep
231、ublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .29Applicable N/A5.Cash flowsIn RMBItem20202019Y/Y%ChangeCash provided by operating activities101,344,544,382.4362,199,885,398.2062.93%Cash used in operating activities94,471,332,896.3854,733,897,223.8772.60
232、%New cash flows from operating activities6,873,211,486.057,465,988,174.33-7.94%Cash provided by investment activities56,134,501,620.8780,442,800,512.34-30.22%Cash used in investment activities65,282,235,798.9586,740,415,996.54-24.74%New cash flows from investment activities-9,147,734,178.08-6,297,61
233、5,484.2045.26%Cash provided by financing activities31,843,182,893.7422,531,435,875.3041.33%Cash used in financing activities25,056,689,251.7121,459,077,099.6016.76%New cash flows from financing activities6,786,493,642.031,072,358,775.70532.86%Net increase in cash and cash equivalents4,317,464,527.08
234、2,337,819,815.9384.68%Analysis of main causes of material changes in the related data:Applicable N/A1.The cash provided by operating activities increased by 62.93%year on year,primarily due to an increase in customer orders,andthe tax rebates and government grants received;2.The cash used in operati
235、ng activities increased by 72.6%year on year,primarily due to an increase in inventory storage level andemployee benefits payable along with our business growth;3.The cash provided by investment activities decreased by 30.22%year on year,primarily due to a decrease in cash provided byforward exchang
236、e hedging and wealth management products;4.The cash used in investment activities decreased by 24.74%year on year,primarily due to a decrease in investment in wealthmanagement products;5.The cash provided by financing activities increased by 41.33%year on year,primarily due to an increase in borrowi
237、ngs;6.The cash used in financing activities increased by 16.76%year on year,primarily due to an increase in repayment of loans andinterest expenses.Analysis of significant difference between net cash flows from operating activities during the reporting period and net profit incurrent year:Applicable
238、 N/AIII.Analysis of non-main businessApplicable N/AIn RMBAmount%of totalprofitReasonWhether or notsustainableInvestment income648,357,066.367.97%Revenuefrominvestmentsandwealthmanagementproductsclassifiedasfinancialassets at fair value through profit or lossNoGain or loss on changes in fairvalue329,
239、044,852.434.04%Revenue from investments classified as financialassets at fair value through profit or lossNoImpairment loss on assets-139,288,911.05-1.71%Allowance for impairment of inventories andNoLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Ch
240、inese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be o
241、btained at .30fixed assetsNon-operating income21,932,288.240.27%Revenue from retirement of assetsNoNon-operating expenses53,956,792.780.66%Loss on disposal of fixed assetsNoGain on disposal of assets-2,309,694.02-0.03%Disposal of production equipmentNoOther gains450,748,795.895.54%Government grants
242、related to incomeNoCredit loss-8,590,000.67-0.11%Impairment loss on accounts receivable and otherreceivablesNoIV.Analysis of assets and liabilities1.Material changes in components of assetsSince January 1,2020,we initially adopted the new revenue accounting standard or the new lease accounting stand
243、ard and adjustedthe beginning balances of related financial statement items.ApplicableIn RMBDecember 31,2020January 1,2020Y/Y%ChangeReason of material changeAmount%of totalassetsAmount%of totalassetsCashandbankbalances10,528,245,765.9315.04%6,180,466,259.0112.52%2.52%Accounts receivable13,839,155,34
244、0.4719.77%13,243,625,572.2226.82%-7.05%Primarily due to an increase intheaccountsreceivablerecovered due to optimization ofcredit terms to customersInventories13,211,009,381.1518.87%7,700,857,888.1615.60%3.27%Primarily due to an increase ininventorystoragelevelalongwith our business growthInvestment
245、 properties47,592,110.240.07%52,656,477.740.11%-0.04%Long-termequityinvestment1,208,540,333.291.73%303,050,580.100.61%1.12%Primarily due to an increase ininvestment in associatesFixed assets19,761,012,854.9528.22%13,707,298,535.3627.76%0.46%Primarilyduetotransferoffactory building and dormitoryconst
246、ructionprojectsofsubsidiaries to fixed assets andanincreaseininvestmentinequipmentConstructioninprogress1,596,064,894.582.28%865,549,438.561.75%0.53%Primarily due to an increase innewfactorybuildinganddormitory construction projectsof subsidiaries and equipmentthat has not yet been acceptedShort-ter
247、m borrowings7,577,068,798.4910.82%4,166,302,223.178.44%2.38%Primarily due to an increase inborrowingsLong-term loans1,495,199,238.412.14%1,562,908,824.303.17%-1.03%Advances to suppliers183,886,937.700.26%212,018,611.910.43%-0.17%Primarilyconsistingofacquisition of molds and fixturesand payment of se
248、curity depositOther receivables407,990,780.790.58%338,237,923.960.68%-0.10%Primarily due to an increase inadvances for customersOther current assets1,804,485,645.492.58%1,484,451,151.733.01%-0.43%Primarily due to an increase inprepaidincometaxandLuxshare Precision Industry Co.,Ltd.Annual Report 2020
249、This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail.The completepublished ChineseAnnual Report 2020
250、of Luxshare Precision Industry Co.,Ltd.may be obtained at .31deductible input taxLong-term deferredexpenses488,087,044.970.70%352,042,451.400.71%-0.01%Primarily consisting of routinerenovation expenses of factorybuildings and workshopsOther non-currentassets1,223,199,642.611.75%1,432,566,528.372.90%
251、-1.15%Primarilyconsistingofequipment,project and land costsprepaidNotes payable128,572,111.540.18%206,496,660.200.42%-0.24%Primarily due to a decrease innote transactionsAccounts payable23,051,557,603.8332.92%17,268,223,180.1634.97%-2.05%Primarily due to an increase ininventorystoragelevelalongwith
252、our business growthOther payables146,162,097.140.21%352,390,271.770.71%-0.50%Other currentliabilities623,257,555.890.89%646,115,152.491.31%-0.42%Issuance of short-term bondsDeferred income425,345,982.640.61%256,059,554.910.52%0.09%Primarily due to an increase ingovernmentgrantsascapitalcontributionD
253、eferred tax liabilities966,092,212.951.38%598,184,393.001.21%0.17%2.Assets and liabilities at fair valueApplicable N/A3.Encumbrances on assets as of the end of the reporting periodAs of the end of the reporting period,our main assets are free and clear of any sequestration,attachment,freeze,mortgage
254、 or pledge,or any condition for and prohibition on liquidation,and could be used to set off liabilities.V.Analysis of investments1.Overall situationApplicable N/AAmount of investment in 2020(RMB)Amount of investment in 2019(RMB)Y/Y%Change3,122,574,000.001,302,756,044.42139.69%Luxshare Precision Indu
255、stry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete publi
256、shed ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .322.Major equity investments acquired in the reporting periodApplicable N/AIn RMBInvesteeMain businessMethod ofinvestmentAmount ofinvestmentShareholdingpercentageSource offundsPartnerTerm ofinvestmentProduct ty
257、peStatus as ofthe balancesheet dateExpectedincomeInvestmentincome/loss inthe reportingperiodWhether or notinvolved in anylitigationDate ofdisclosure(ifany)Reference(if any)LuxshareChangshuBusinesssubjecttolicensing:importandexport of goods;importand export of technologies.Businessnotsubjecttolicensi
258、ng:manufacturingof electronic componentsandelectro-mechanicalcomponents;salesofelectronic components andelectro-mechanicalcomponents;salesofpowerelectroniccomponents;manufacturing of wearablesmart equipment;sales ofwearable smart equipment;manufacturingofcommunicationequipment;salesofcommunicationeq
259、uipment;manufacturingofopto-electroniccomponents;salesofopto-electroniccomponents;manufacturingofspecialrubberprocessingequipment;sales of specialCapitalinjection615,000,000.00100.00%Self-ownedfundsN/ALong-termElectroniccomponentsPaid in full0.000.00 NoApril 21,2020Announcement No.2020-028Luxshare P
260、recision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The c
261、omplete published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .33rubberprocessingequipment;manufacturingofcomputersoftware,hardware and peripherals;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypr
262、omotion;leaseofnon-residentialproperties.LantoKunshanComputerperipherals,connectionlinesandconnectors;new-typeelectroniccomponents(electronicdevices),instrumentsandaccessoriesforcommunicationandITpurpose,plastic,rubberandhardwareproducts;research,development,productionandsalesofspecialelectronicequi
263、pment,testinginstruments,tools,molds,remotecontroldynamicmodelsandrelatedsupplies and components;productionandsalesofpowersupplyunitsandwirelesstransmissionproducts;development ofsoftware;importandexportofgoodsandtechnology(exceptanyCapitalinjection1100,000,000.00100.00%OfferingproceedsN/ALong-termS
264、martmobileterminalmodulesPaid in full0.000.00 NoDecember 3,2020Announcement No.2020-101Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published An
265、nual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .34business that is subject tolicensing,restrictedorprohibited pursuant to theapplicablelawsandadmini
266、strative regulations)(any business subject toapproval according to lawmay only be operated withtheapprovalofthecompetentauthorities).Businessnotsubjecttolicensing:manufacturingof automotive componentsand accessories;researchanddevelopmentofautomotivecomponents;wholesaleofautomotivecomponentsandacces
267、sories;salesofmechanicalpartsandcomponents;manufacturingofopto-electroniccomponents;salesofopto-electroniccomponents;research anddevelopmentofspecialelectronicmaterials;research and developmentof household appliances.LuxshareKunshanDevelopmentandproductionofopto-electronicswitches,smartsensors,new-t
268、ypeinstrumentcomponents,opto-electronic devices,ITandcommunicationCapitalinjection600,000,000.00100.00%OfferingproceedsN/ALong-termSmartwearableequipmentcomponentsPaid in full0.000.00 NoDecember 3,2020Announcement No.2020-101Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a tr
269、anslated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision
270、 Industry Co.,Ltd.may be obtained at .35productsand connectors,keyboards,keys,casings,new-typesiliconrubberelectroniccomponents,precisioncavitymolds,stampingmolds,connection lines and stereosystems;processingofwatchbands;salesofself-madeproductsandprovisionofafter-saleservicesinrespectofself-made pr
271、oducts;importand export of goods andtechnologies(exceptanybusiness that is subject tolicensing,restrictedorprohibited pursuant to theapplicablelawsandadministrativeregulations).Businesssubjecttolicensing:productionofClassIImedicaldevices;productionofClassIIImedical devices;operationofClassIIImedical
272、devices(anybusinesssubjecttoapprovalaccording to law may onlybeoperatedwiththeapproval of the competentauthorities,and only thebusiness approved may beoperated);sales of Class IImedicaldevices;manufacturing of hardwareLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translate
273、d version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision Indust
274、ry Co.,Ltd.may be obtained at .36products;manufacturing ofmetalfittingsforconstructionpurpose;manufacturingofmolds;manufacturingofsmartwearable equipment;salesofsmartwearableequipment(exceptanybusinesssubjecttoapproval according to law,all businesses set forth inthe business license maybe operated a
275、ccording tolaw);Class II value-addedtelecommunicationsbusiness(anybusinesssubjecttoapprovalaccording to law may onlybeoperatedwiththeapproval of the competentauthorities,and only thebusiness approved may beoperated).Businessnotsubjecttolicensing:productionofClassImedical devices;sales ofClass I medi
276、cal devices;manufacturingofspecialelectronic equipment;salesofspecialelectronicequipment;developmentofsoftware;salesofsoftware;salesofelectronicproducts;manufacturing of industrialrobots;sales of industrialrobots;manufacturingofLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a
277、 translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precis
278、ion Industry Co.,Ltd.may be obtained at .37integrated circuit chips andproducts;salesofintegrated circuit chips andproducts;manufacturing ofsmart home devices;salesofsmarthomedevices;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypromoti
279、on;technology promotion andapplication services;dataprocessingandstoragesupportservices;informationtechnologyconsulting services.Total-2315,000,000.00-0.000.00-3.Major non-equity investments that have not yet been completed in the reporting periodApplicable N/A4.Investment in financial assets(1)Inve
280、stment in securitiesApplicable N/AIn RMBType of securitySecurity codeShortnameInitialinvestmentcostMethod ofmeasurementBeginningcarrying amountGain or loss onchanges in fairvalue in thereporting periodAggregatechanges in fairvalue recordedin equityAmountacquired inthe reportingperiodAmount sold inth
281、e reportingperiodGain or loss inthe reportingperiodEnding carryingamountAccountingitemSource offundsStock listed ondomestic oroverseas market603595TonyElectronic22,500,000.00 Fair value170,733,150.00-26,855,115.7680,625,922.540.0029,656,715.20-21,944,054.56114,221,319.04Investmentin otherequityinstr
282、umentsSelf-ownedfundsLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chin
283、ese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .38Total22,500,000.00-170,733,150.00-26,855,115.7680,625,922.540.0029,656,715.20-21,944,054.56114,221,319.04Disclosure date of the announcement of the boardof director
284、s approving the investment in securitiesDisclosure date of the announcement of theshareholdersmeeting approving the investment insecurities(if any)(2)Investment in derivativesApplicable N/AIn RMB0000CounterpartyAffiliationWhether or nota related-partytransactionType ofderivativeInitialinvestmentcost
285、Date ofcommencementDate ofterminationBeginningbalanceAmount acquired inthe reporting periodAmount sold in thereporting periodAllowanceforimpairmentloss(if any)Ending balanceRatio of endingbalance to thenet asset as atthe end of thereportingperiodActual gain orloss in thereportingperiodBankNon-affili
286、ate NoForwardexchangecontract2,263,77.69226,377.691,363,352.751,541,185.1948,545.261.73%22,221.35BankNon-affiliate NoForeignexchangeoption1,203,39.45120,339.451,623,068.881,279,487.94463,920.3916.51%28,584.2Total3,467,17.14-346,717.142,986,421.632,820,673.13512,465.6518.24%50,805.55Source of fundsSe
287、lf-owned fundsWhether or not involved in any litigationN/ADisclosure date of the announcement of the board ofdirectors approving the investment in derivatives(if any)August 20,2019April 20,2020Disclosure date of the announcement of the shareholdersmeeting approving the investment in derivatives(if a
288、ny)May 13,2020Analysis of risks associated with the derivatives held in thereporting period(including without limitation market risk,liquidity risk,credit risk,operational risk and legal risk)andrelated risk control measures1.We conduct foreign exchange derivative transactions for the purpose of fix
289、ing costs,and avoiding and preventing foreign exchange and interest rate risks,andprohibit 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 oper
290、ating process,information segregation measures,internal risk controls,information disclosure and other issues relating to financialderivative transactions,to control the risks associated with such transactions.3.We carefully examine the terms of contracts entered into with the relevant banks,and str
291、ictly implement the risk management policy to prevent legal risks.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of L
292、uxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .394.Our Finance Department continuously follows up on the changes in the market price or fair value of the relevant forei
293、gn exchange derivatives,promptly assessesthe changes in risk exposures of such foreign exchange derivatives,reports to the management on a regular basis,promptly reports the abnormal situationsdiscovered,calls attention to the relevant risks,and takes the appropriate emergency measures.5.In order to
294、 prevent any delay in the delivery of forward exchange contracts,we attach great importance to the management of accounts receivable,and haveestablished safety management measures to prevent any delay in the payment of accounts receivable.6.Our Internal Audit Department is responsible for supervisin
295、g and auditing the decision-making,management,execution and other issues in respect of foreignexchange derivative transactions.Changes in the market price or fair value of the derivativesheld in the reporting period(in the analysis of the fair valueof derivatives,the specific approaches,assumptions
296、andparameters used shall be disclosed)Change in the fair value of a foreign exchange derivative is the difference between its fair market price in the month in which the delivery date determined by theCompany falls and its contract price.Whether theres any material change in the accountingpolicies a
297、nd accounting principles for the measurement ofderivatives in the reporting period as compared with thepreceding reporting periodNo material changeSpecialopinionissuedbytheindependentdirectorsregarding the Companys investment in derivatives andrelated risk control measuresWe conduct foreign exchange
298、 derivative transactions for the purpose of avoiding foreign exchange risk arising from fluctuations in the foreign exchange rates of RMB,and effectively controlling the uncertainties of costs caused by foreign exchange risk.We have established the Business Management Policy Regarding FinancialDeriv
299、ative Transactions,to enhance risk management and control over foreign exchange derivative transactions.In addition,we only provide self-owned funds,rather thanany offering proceeds,as deposit for derivative transactions.The review,voting and other procedures relating to such transactions have compl
300、ied with the Company Law,the AOAand other applicable regulations.5.Use of offering proceedsApplicable N/A(1)Description of use of offering proceedsApplicable N/AIn RMB0000Year ofofferingMethod ofofferingTotalofferingproceedsTotal amount ofoffering proceedsused in thereporting periodAggregate amounto
301、f offeringproceeds that hasbeen usedTotal amount of offeringproceeds whose purposewas changed in thereporting periodAggregate amount ofoffering proceedswhose purpose hasbeen changedPercentage ofoffering proceedswhose purposehas been changedTotal amountof unusedofferingproceedsPurpose andwhereabouts
302、ofunused offeringproceedsTotal amount ofoffering proceedsthat has remainedunused for morethan two years2020Public offeringof convertiblecorporate bonds300000274402.76274402.76000.00%24412.95To continue to be usedin the investmentprojects for which thefunds were raised0Luxshare Precision Industry Co.
303、,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published Chi
304、neseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .40Total-300000274402.76274402.76000.00%24412.95-0Description of use of offering proceedsPursuant to the Reply on Approval of Public Offering of Convertible Corporate Bonds by Luxshare Precision Industry Co.,Ltd.from th
305、e China Securities Regulatory Commission,we publicly issued 30000000 convertiblecorporate bonds of par value of RMB100.00 each,and raised RMB3000000000.00 in total.After deduction of the underwriter fee and sponsor fee of RMB14,400,000.00(inclusive of tax)paid to our underwriter,CITIC SecuritiesCo.,
306、Ltd.,the total subscription amount received was RMB2985600000.00,and after deduction of legal fee,audit and capital verification fee,credit rating fee,information disclosure and other costs,the net proceeds from thisoffering were RMB2984743424.52.We have already invested RMB2001653153.13 of self-rai
307、sed funds in the projects for which this public offering was made prior to the completion thereof,as verified by BDO China Shu Lun Pan Certified Public Accountants LLPin its Report Xin Kuai Shi Bao Zi 2020 No.ZB11783 dated December 1,2020.On December 2,2020,the 27thmeeting of the 4thBoard of Directo
308、rs reviewed and adopted the Proposal on Replacement of the Self-raised FundsInvested in Advance with the Offering Proceeds,approving the replacement of the self-raised funds invested in the relevant projects with the offering proceeds.As of the end of the reporting period,RMB2744027590.66 of the off
309、ering proceeds have been used,and the remaining RMB244129528.55 will continue to be used in the investment projects for which the funds were raised.(2)Projects in which the offering proceeds were proposed to be investedApplicable N/AIn RMB0000Committed investment project and use ofover-raised fundsW
310、hether theproject hasbeen changedor partiallychangedTotalcommittedinvestmentamountTotalinvestmentamount asadjusted(1)Amountinvested in thereportingperiodAggregate amountalready invested asof the end of thereporting period(2)Progress ofinvestment as ofthe end of thereporting period(3)=(2)/(1)Date tha
311、t theproject is readyfor its intendeduseProfitearned in thereportingperiodWhether theproject hasproducedthe desiredresultWhethertheres anysignificantchange in thefeasibility ofthe projectCommitted investment projectSmart mobile terminal module productionline upgrading and expansion projectNo110,0001
312、10,00085,895.3185,895.3178.09%March 1,2021N/ANoSmart wearable equipment componentsproduction line upgrading and expansionprojectNo60,00060,00060,006.5360,006.53100.01%May 1,202124,284.19YesNoNew smart wearable equipment projectwith an annual production capacity of 4million setsNo60,00060,00060,026.5
313、760,026.57100.04%August 1,202028,149.55YesNoReplenishment of working capitalNo70,00070,00068,474.3468,474.3497.82%N/ANoSubtotal-300,000300,000274,402.75274,402.75-52,433.74-Use of over-raised fundsN/ATotal-300,000300,000274,402.75274,402.75-52,433.74-Failure to meet the scheduled progress andproduce
314、 the desired result and reasonNoneLuxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Lt
315、d.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .41thereof(please describe on a project byproject basis)Reasonofsignificantchangeinthefeasibility of the projectNoneAmount and use of over-raised funds an
316、dprogress of use thereofN/AChange in the place of the project in whichthe offering proceeds were proposed to beinvestedN/AAdjustmentofthemethodofimplementation of the project in which theoffering proceeds were proposed to beinvestedN/AFunds already invested in the project inwhichtheofferingproceedsw
317、ereproposed to be used and replacementthereofApplicableWe have already invested RMB2001653153.13 of self-raised funds in the projects for which the public offering of convertible corporate bonds was made in 2020 prior to thecompletion thereof,as verified by BDO China Shu Lun Pan Certified Public Acc
318、ountants LLP in its Report Xin Kuai Shi Bao Zi 2020 No.ZB11783 dated December 1,2020.Temporaryreplenishmentofworkingcapital with the unused offering proceedsN/AAmount of unused offering proceeds andreason thereofApplicableAs of December 31,2020,the amount of unused offering proceeds was RMB244129528
319、.55,because the projects for which the funds were raised have not yet been completed.Purposeandwhereaboutsofunusedoffering proceedsAs of December 31,2020,the amount of unused offering proceeds was RMB244129528.55,which will continue to be used in the investment projects for which the funds were rais
320、ed.Problems and other matters existing in theuse and disclose of offering proceedsNone(3)Changes in the projects in which the offering proceeds were proposed to be investedApplicable N/ATheres no change in the projects in which the offering proceeds were proposed to be invested during the reporting
321、period.VI.Sales of material assets and equities1.Sales of material assetsApplicable N/ANo material asset has been sold during the reporting period.Luxshare Precision Industry Co.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precisi
322、on Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published ChineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .422.Sales of material equitiesApplicable
323、 N/AVII.Analysis of major subsidiaries and associatesApplicable N/AMajor subsidiaries and associates representing more than 10%of the net profit of the Company:In RMBCompany nameTypeMain businessRegistered capitalTotal assetsNet assetsOperating revenueOperating profitNet profitLuxsharePrecisionSubsi
324、diaryPurchase and sales of electronic products,data lines,connection lines,connectors,computer and peripherals,plastic and hardware products.USD 5,000,00032,284,326,513.88 2,323,353,125.61 109,759,456,057.38 1,615,400,931.36 1,609,358,980.43ICT-LantoSubsidiarySales and services in respect of interna
325、l and external connection linesfor IT,communication and consumer electronic applications,andprecision connectors.USD 8329032319,811,980,244.41 2,295,968,956.1618,661,017,270.17723,565,414.13623,838,824.25LuxshareChuzhouSubsidiaryProductionandsalesofconnectorsandconnectionlinesforcomputers,mobilephon
326、es,videogameplayerandTVsets,components and accessories of communication electronic products(includingelectroplating);importandexportofgoodsandtechnologies produced or owned by the company or others.RMB758,000,0004,150,155,423.19 1,278,729,481.976,784,222,671.10472,207,421.00419,408,183.61LuxshareSuz
327、houSubsidiaryProduction,research,development,sales and after-sale service inrespectofelectroniccomponents,communicationequipment,computer equipment and accessories,molds and smart equipment;salesofelectro-mechanicalequipment,mechanicalequipment,electric equipment,testing equipment,automatic equipmen
328、t andaccessories,molds,plastic products,metal products and fixtures;import and export of goods and technologies produced or owned bythe company or others;computer software technology developmentand technical service.RMB130,000,0004,333,258,665.17150,418,237.905,054,378,359.9734,721,128.0635,446,246.
329、97LuxshareElectronicKunshanSubsidiaryDevelopment and production of opto-electronic switches,smartsensors,new-type instrument components,opto-electronic devices,ITand communication productsand connectors,keyboards,keys,casings,new-type silicon rubber electronic components,precisioncavity molds,stampi
330、ng molds,connection lines and stereo systems;processing of watch bands;sales of self-made products and provisionof after-sale services in respect of self-made products;import andRMB220000000012,001,133,317.33 3,481,250,205.2416,150,294,698.99508,925,982.59471,294,537.90Luxshare Precision Industry Co
331、.,Ltd.Annual Report 2020This document is a translated version of the Chinese version Annual Report 2020 of Luxshare Precision Industry Co.,Ltd.(“立訊精密 2020 年年度報告”),and the published Annual Report 2020 of LuxsharePrecision Industry Co.,Ltd.in the Chinese version shall prevail.The complete published Ch
332、ineseAnnual Report 2020 of Luxshare Precision Industry Co.,Ltd.may be obtained at .43export of goods and technologies(except any business that is subjectto licensing,restricted or prohibited pursuant to the applicable lawsandadministrativeregulations).Businesssubjecttolicensing:production of Class I
333、I medical devices;production of Class IIImedical devices;operation of Class III medical devices(any businesssubject to approval according to law may only be operated with theapproval of the competent authorities,and only the business approvedmay be operated);sales of Class II medical devices;manufacturing ofhardware products;manufacturing of metal fittings for constructionpurpose;manufacturing of
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