[年报]立讯精密(002475):2021年年度报告（英文版）
原标题:立讯精密:2021年年度报告（英文版） Annual Report 2021 2022-033 April 2022 This document is a translated version of the Chinese version Annual Report 2021 of Luxshare Precision Industry Co.,Ltd.(“《立讯精密 2021 年年度报告》”),and the published Annual Report 2021 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail. The complete published Chinese Annual Report 2021 of Luxshare Precision Industry Co.,Ltd. may be obtained at www.cninfo.com.cn. Section I Important Note, Table of Contents and Definitions The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company hereby warrant that the information contained in this Annual Report is true, accurate and complete and this Annual Report is free from any misrepresentation, misleading statement or material omission, and agree to assume joint and several liability for this Annual Report. WANG Laichun, Principal of the Company, CFO WU Tiansong and Chief Accountant CHEN Huiyong hereby represent that the financial statements contained in this Annual Report are true, accurate and complete. All directors of the Company attended the meeting of the Board of Directors reviewing this Report. The relevant risks facing the Company are set out in “Section III Management’s Discussion and Analysis - XI. Prospects for future development of the Company”. According to the profit distribution proposal approved by the Board of Directors, the Company will distribute a cash dividend of RMB1.10 (inclusive of tax) per 10 shares to all shareholders on the basis of 7,084,301,477 shares, and will not distribute any bonus shares or transfer any capital reserve to the share capital for the reporting period. Table of Contents Section I Important Note, Table of Contents and Definitions ................................. 2 Section II Company Profile and Financial Highlights ............................................. 7 Section III Management’s Discussion and Analysis ............................................... 11 Section IV Corporate Governance ........................................................................... 51 Section V Environment and Social Responsibilities ............................................... 75 Section VI Significant Events ................................................................................... 85 Section VII Changes in shares and shareholders ................................................. 105 Section VIII Preference Shares .............................................................................. 115 Section IX Bonds ..................................................................................................... 116 Section X Financial Report ..................................................................................... 129 List of References 1. Financial statements signed and chopped by the principal, CFO and Chief Accountant of the Company; 2. Original of the auditor’s report stamped with the seal of the accounting firm and signed and chopped by the certified public accountants; 3. Originals of all documents of the Company publicly disclosed on the website for information disclosure designated by the China Securities Regulatory Commission during the reporting period and related announcements; and 4. Other references. Definitions
I. Company profile Section II Company Profile and Financial Highlights I. Company profile
Accounting firm engaged by the Company:
√ Applicable □ N/A
period □ Applicable √ N/A VI. Key accounting data and financial indicators Did the Company need to retrospectively adjust or re-state any accounting data of prior accounting years? □ Yes √ No
uncertain? □ Yes √ No Whether the lower of the net profit before and after deduction of extraordinary gain or loss is negative? □ Yes √ No VII. Differences in accounting data arising from adoption of Chinese and foreign accounting standards concurrently 1. Differences in net profit and net assets disclosed in the financial statements prepared according to the international accounting standards and the Chinese accounting standards □ Applicable √ N/A There was no difference in net profit and net assets disclosed in the financial statements for the reporting period prepared according to the international accounting standards and the Chinese accounting standards. 2. Differences in net profit and net assets disclosed in the financial statements prepared according to the foreign accounting standards and the Chinese accounting standards □ Applicable √ N/A There was no difference in net profit and net assets disclosed in the financial statements for the reporting period prepared according to the foreign accounting standards and the Chinese accounting standards. VIII. Main quarterly financial indicators In RMB
corresponding financial indicators contained in any quarterly or semi-annual report already disclosed? □ Yes √ No IX. Items and amounts of extraordinary gains or losses √ Applicable □ N/A
We do not have any other item of gain or loss within the meaning of extraordinary gains or losses. If the Company classifies any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurrent profit or loss, please explain the reason. □ Applicable √ N/A We have not classified any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurrent profit or loss in the reporting period. Section III Management’s Discussion and Analysis I. Situations of our industry in the reporting period During the reporting period, we are engaged in the research and development (R&D), manufacturing and sale of products in the fields of consumer electronics, communication, automotive electronics and healthcare, among others. Our products and businesses are diversified and vertically integrated, and cover components, modules and system assembly. (I) Consumer electronics In the industry of consumer electronics, the development and innovation of applied technologies and diversified growth of consumer demands jointly promote the upgrading of consumer electronic products and related product lines, and continued growth of the consumer electronics market size. According to Statista, the global consumer electronics market size grew at a compound annual growth rate (CAGR) of 2.90% from 2015 to 2020, and is expected to reach USD1,098 billion in 2025. The advancement of 5G and artificial intelligence (AI) technologies will promote the development of different kinds of smart mobile, smart wearable, AR/VR/MR, smart home, smart display and other IoT devices. The acceleration of upgrading of terminal products will drive the increase in the integration level of electronic components contained therein and improvement of technological level. The one-stop solution providers that are able to provide the brand customers with better production processes and higher integration level and require the input of less resources will get more orders for related components and finished products. Accordingly, the Company's business expansion and industrial operations are expected to fully benefit. (II) Communication and data center In the field of communication and data center, the series of technical innovation and emerging of new technologies promote the evolution from traditional IT infrastructure to data infrastructure, and along with the continuous development of the Internet, e-commerce, video, cloud computing and other Internet vertical industries have been rapidly springing up, and the global data center market has come into multiple periods of rapid growth. According to IDC, the shipments and sales of the global server market reached 13,539,000 units and USD99.22 billion in 2021, representing an increase of 6.9% and 6.4% respectively. The global Internet data center market size grew at a CAGR of more than 10% from 2012 to 2021. The ever increasing demands for new data centers by IT, telecommunication, banking, financial, service and investment (BFSI), e-government and smart city projects, and wide application of AI and IoT technologies in the future will further promote growth of the communication and data center market size. According to IDC, the global server market size is expected to reach USD126.5 (III) Automotive electronics Smart electric vehicles represent an opportunity of the century for the automotive industry of China. China has the largest automotive market with the highest level of openness and inclusion and most consumers in the world, utilizes the most advanced smart vehicle technologies and attracts all major carmakers in the world. China ranks among the first in the world in terms of number of smart vehicle brands and models. At present, China’s smart vehicle market is transiting from the policy-driven period to the period of market-driven high growth in an all-round way. In 2021, the sales volume of electric vehicles reached 3.52 million units in China, representing an increase of 160% as compared with 2020. China has ranked first in the world in terms of sales volume of electric vehicles for seven consecutive years, and the sales volume of electric vehicles in China is expected to further increase by 47% to about 5 million units in 2022. The penetration of electric vehicles increased from 7.2% at the beginning of 2021 to 19% at the end of 2021, representing an exponential growth as compared with 10 years ago, and showing great potentialities of growth. In 2021, the penetration of electric vehicles began to increase rapidly in China and the transition to clean transportation is accelerating.In addition to “electrification”, “intelligentization” and “interconnection” are also developing vigorously. Statistics show that about 20% new passenger cars are equipped with driver assistance system, the penetration of L2 driver assistance system into the electric vehicle market reaches 38%, electric vehicles has basically realized full coverage of Internet of Vehicles (IoV) functions, and some major carmakers have begun to sell new vehicles powered by V2X technology. Chinese consumers are more willing to accept smart electric vehicles, and medium- and high-end smart electric vehicles occupy increasingly greater shares on the business and consumer markets. Traditional smart mobile phone players begin to enter the smart electric vehicle sector; on the other hand, electric vehicle manufacturers begin to produce smart mobile phones. Along with the popularization of “intelligentization”, vehicles will become large-sized mobile smart and computing terminals. In the next stage, carmakers need to build ecosystems to break through the tight encirclement, connect vehicles with consumer electronics, create more consumption scenarios, and realize full coverage of “human-vehicle-home” scenarios. (IV) Our position in the industry During the reporting period, we ranked first on the 34th list of top 100 electronic component manufacturers of China (2021) published by the China Electronic Components Association, and were awarded the honorable titles of “Top 500 Private Enterprises Of China”, “Top 500 Private Manufacturers Of China”, and “2021 Model of China’s Digital Economic Industry”, among others. II. Our main business in the reporting period We concentrate our efforts on the specialization in and optimization 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 widely applied in the fields of consumer electronics, communication and automotive. By comprehensively mastering the technologies relating to various components and modules, and super-precision manufacturing technologies accumulated over the years, we give full play to our advantages in vertical integration, and continuously restructure the supply chain in the field of system assembly, to create more value for our customers, thereby gaining customers’ support and confidence. In launching a new product, we focus on the product quality, yield rate and optimization of production costs on the basis of innovative production technology, intelligent automation and digital platform, thereby enabling us to make continuous and substantial breakthroughs in new markets, new customers and new products. In the implementation of related controls, there is no doubt that the automation technologies lay the strong foundation for our core competencies. Therefore, we attach great importance to the continuous exploration of automatic and smart manufacturing technologies. Our core team’s spirit of in-depth exploration of processes and determination to accomplish all tasks assigned guarantee the success in the development and design of automation technologies. According to the requirements for appearance, size, functions and reliability of products, we disassemble and study all manufacturing processes, and make efforts to solve process challenges with reference to our past experience and advanced technologies available on the market. With the goal of zero loss and zero defect, we strive to realize the reasonableness, standardization and automation of designs in terms of yield rate, efficiency, cost, etc. After the completion of process study, we realize process design through automation, including automation of work stations, handling and positioning, testing, warehousing, logistics and production processes. Standardization is the prerequisite for automation, because standardized products cannot be made without the use of standardized equipment and processes. With respect to the products that have a low demand and change frequently, we mainly use man-machine flexible automation technologies. In the design of automatic equipment, we make plans for MES system, IoT access and key work station information flows needing to be controlled simultaneously, 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 the same in the form of visual reports, to realize whole-process traceability of products, materials, people, equipment, fixtures, process technology and quality information, among others, implement close-end control, and ensure the effective realization of automation. On that basis, we introduce digital models, use modeling approaches to connect production with data flows, and through the use of big data, cloud computing, AI, digital twin and other technologies, deeply explore the information and trends behind data, seek benefits from data, and finally realize intelligentization, and self-judgment, self decision-making, self-adjustment and self-execution by machines, so that the machines are able to solve tangible problems and predict intangible problems on their own, thereby achieving the long-term goal of smart manufacturing.
segments. In the field of consumer electronics, we continue our product mix in prior years, follow the trends of metaverse, AIoT smart life and high-speed transmission, and enrich our product offerings in a steady and orderly manner. Our product offerings include acoustic products (such as TWS earphone), smart home products (such as 5G CPE and Wi-Fi 6 portable router), smart terminal products (such as wearable watch and wristband, AR/VR/MR), computer accessories (such as Dock), intelligent stylus, video conference equipment and wired and wireless high-watt rapid charging accessories for various PC/NB/mobile phone brands for retail sale. We have been engaged in the field of consumer electronics for years, while satisfying the customers’ demands, made continuous breakthroughs to build the strong capability to provide customers with comprehensive solutions. We have the advantages in intelligentization, digitalization and globalization on the vast consumer electronics market. We make dynamitic adjustments continuously, and clearly understand the existing market and the incremental market. With respect to the existing market, such as the business relating to PC and smart mobile phones, we have mature technical capabilities, capital equipment and customer resources. As the most trusted partner of our customers, we are not only able to, in conjunction with our premium customers, achieve self-worth in the field of premium products and the existing products we are good at, but also in the upgrading of products and technologies, leverage our mature resources, grasp the opportunities to enter the market of higher-level products at optimal cost, and maximize the rewards. With respect to the incremental market, such as health & wellness, metaverse and other applications, we believe that the premium customers on the existing market will continue to take the lead. By leveraging our good reputation and solid partnership with our customers built by us over the years, our management will continue to keep abreast of the market, analyze and accurately grasp the situations of technology development of the industry from the perspectives of consumers, brand customers and supply chain, continuously improve product attractions required by the incremental market, and make all-round deployments from components, modules to system. Though we face many external challenges, such as disengagement between China and the United States and geopolitics, we have high hopes for and are confident about the future development of our consumer electronics business. In the past ten years, through continuous upper-level industry guidance, development of designated customers, improvement of the quality and development of high-quality supply chain, and with the long-term and strong support and investments in different areas, China has gradually built the most complete and systemic consumer electronics supply chain in the world, and takes the lead in in-depth deployment, talent pool, policy support and other issues in respect of supply chain on all market segments. In view of our strong head start advantage and the competitive situation on the consumer electronics market, we keep improving and enhancing all kinds of capabilities, and on the basis of our global deployment completed over the years and our stable strategic focus, develop incremental businesses at home and abroad according to the development requirements of customers. The present and foreseeable situations show that the strong will be always strong. Our strategic goals conform to those of our customers.
Driven by 5G, big data and edge computing technologies, the ICT industry puts forward higher requirements for data transmission, hardware equipment shows a tendency towards gradual opening of interfaces and high integration of functions, and interconnect components show a tendency towards high speed, high density, high reliability and low loss. On the basis of the application scenarios of our products in the field of data and communication, and centering on the application and development trend of data center, we have gradually enriched our product offerings, and on the basis of electric connection (high-speed electric connectors and cables), optical connection (AOC and optical modules), radio frequency (RF) communication (base station antennas, base station filters, tower mounted amplifiers, duplexer, combiners, RRUs, AAUs and small base stations), and other existing products, have developed thermal management (heat pipes, VC, axial fans, cold plates and water cooling radiators), industrial connection and other products, further increasing our product coverage. In 2022, we will develop server and other complete unit assembly business, center on the “complete unit + core components” double development strategy, and strive to grow into a comprehensive solution provider offering all kinds of products in the field of data and communication.
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