When it comes to Luxshare Precision, everyone will certainly be familiar with it.
Their chairman Wang Laichun went from a small migrant girl at Foxconn to an Apple foundry owner and squeezed into the story of the Forbes rich list...
Bad reviewers have also written articles and nagged everyone before.
As for Luxun Precision, the company also began to join the Apple supply chain by manufacturing the connection line of macBook, and now, it has become a leading enterprise in the fruit chain, with a market value of hundreds of billions of yuan.
Let's put it this way, the AirPods, Apple Watch, Magsafe and other Apple products in the hands of everyone have the figure of Luxshare.
Domestic mobile phone manufacturers such as Xiaomi, OV, and Huawei are also old customers of Luxun.
But it is such a star company, the big red in front of the mobile phone circle, but recently a big news.
That is, Luxun is also going to enter the field of "car building".
Because not long ago, Luxshare Precision and Chery Group signed an agreement in Wuhu, announcing the official take-off of the "car-making" business.
The general content of the agreement is actually that Luxun is preparing to set up a new company with Chery, specializing in the research and development and manufacturing of some new energy vehicles, as well as the research and development and design of some core components.
And in addition to the black-and-white agreement, the sincere Luxun also took out real money and silver.
They spent about 10 billion yuan to buy nearly 20% of Chery Holdings, 7.87% of Chery and 6.24% of Chery New Energy.
In general, this wave of Lixun Precision can be said to be holding tens of billions of funds in hand and entering the "car building".
This wave of operations by Lixun Precision also immediately triggered discussions among netizens and media, leaving a field of melon seed shells and watermelon peels.
Like what is the "old rival Foxconn's car is going to be delivered next month, Luxshare can't sit still, right? " , " Luxun car, this is to grab business with Apple, Millet and other new car-making forces!" Reviews like that abound.
Under the twitter and rhythm of the guys, Luxshare Precision is also full of efficiency, and soon released a new announcement in response:
Probably means that you have all misunderstood, this car is not the other car, we Lixun is not to be tough with the new forces of car building.
Because Luxun does not build the whole vehicle, but is ready to cooperate with Chery to develop an ODM business that builds a good car for others. So on the contrary, in the future, Luxun may help the new forces to build cars and provide them with parts and components.
However, you may not believe it, this is only the first layer of Luxshare.
Because Wang Laichun, chairman of Luxun, revealed that they want to use the ODM business to become the world's leading manufacturer of auto parts Tier 1.
The so-called Tier1 manufacturers are actually the legendary first-tier suppliers, which are manufacturers that directly supply core components and solutions to vehicle companies.
Such as the familiar Bosch, Denso, ZF, Magna, etc., are the leaders of Tier1 in the field of traditional car manufacturing, with revenues of about 30 billion US dollars.
Take the most famous Bosch as an example, it produces a variety of sensors, controllers, ABS and ESP systems are almost the standard of all car companies, although never produce cars, but these core components and solutions have the lifeblood of car companies.
Therefore, in the past, there was a saying that all car companies had to look at Bosch's face and were working for Bosch.
Moreover, the scale of Tier1, which accounts for almost 70% of the total output value of all car companies, belongs to the most absolute head in the field of car manufacturing.
Yes, luxshare precision wants to share this cake.
But as the saying goes, dreams can be done by anyone, everyone dares to say it, and the most important thing is how many pounds do you have in this line?
What you may not expect is that Luxun is really not a blank piece of paper in the field of cars.
Open the official website of Luxun, you will find that they have actually been producing a variety of automotive wiring harnesses, connectors and structural devices and other things.
However, the specific results are not very brilliant, because the revenue of the automotive interconnection products and precision components business accounts for only about 3% of the company's revenue, and the revenue amount is only a fraction of that of other real Tier1 manufacturers.
However, it is precisely because of the lack of vigorous investment and development is not, so it really cannot be said that Lixun is a whim.
And you have to ask if it is not early or late, why choose this time to enter it... The official explanation given by Luxun is: the opportunity must not be lost, and the loss will not come again.
Probably that is to say, intelligent electric vehicles are opportunities that we Chinese automakers have not encountered in a hundred years, and many traditional car companies have to re-fight monsters in this field.
Now we have an opportunity to run with those traditional car companies that have decades or hundreds of years to run the same line PK, which must not be missed.
Of course, in this era of national car manufacturing, the above statement of "entering the game for the rise of China's automotive industry" is almost cocooned in many people's ears.
So in addition to really being the best time to enter the game, many people's speculation is that the mobile phone industry may have peaked... In order to save ourselves, we must find new growth points, and now car building is that new outlet.
In addition to Luxun, including Apple, Xiaomi, Huawei and other enterprises to varying degrees into the "car-making", probably this layer of logic.
At least in the editorial department, most of them feel that the mobile phones in recent years have become more and more lacking in novelty, and there is no desire for people to change new machines.
It is better to honestly make a nail household, anyway, it is not unusable.
And from the data point of view is also the case, since the global mobile phone sales reached the peak of 1.566 billion units in 2017, the data is also getting more and more pulled, and sales have declined steadily.
As a leading company in the field of mobile phone supply chain, Luxun's financial performance can also be seen. The financial report for the third quarter of 2021 shows that the net profit of Luxshare Precision fell by about 20% year-on-year...
The original words in the financial report said: The external environment continues to be complex and changeable, in addition to the continuous recurrence of the epidemic situation in the sea and abroad, the shortage of upstream materials, rising prices, declining transportation capacity and rising transportation costs have also had a certain impact on the company's profitability and the shipment of some products.
In a word: difficult.
In turn, looking at the sales trend of global electric vehicles, I believe that clear-eyed people can see which side is the blue ocean and which side is the sunset.
So, how did a manufacturer who help apple oem suddenly come to build a car? This may be the course of history.
In addition, older friends may still have some impressions, this second turn to build a car, in fact, is not the first time Thatcent has changed tracks to chase the wind.
Because at the beginning of the establishment of Luxun, in fact, the most important business was to manufacture cables for desktop computers, and successfully supplied enterprises such as Asus Lenovo.
In 2010, Luxshare gambled on a wave of notebooks and other consumer electronics, when even Sony and XBOX became Luxshare's customers, and Luxshare's revenue rose directly to 1 billion, tripling in three years.
A year later, Luxun chased another wave of wind, gambled on a wave of smartphones and tablets, and successfully entered the Apple supply chain.
In that year, Luxun's revenue directly soared by 153%.
The back story is also very familiar to everyone, backed by the apple tree, Lixun has also opened all the way, and now the annual revenue has reached nearly 100 billion, becoming the leader of the industry.
But to a large extent, giants that rely too much on Apple are often prone to Apple dependence.
Today's Orders from Apple account for about 70% of Luxun's revenue.
The mall is like a love field, in case one day Apple dumps you, for Apple is just a spare tire, but for companies like Lixun, the destruction is the whole world.
OFILM, which once provided lenses for Apple, directly reduced its net profit by 93% after being dumped, and many original fruit chain companies were broken up and went bankrupt.
Therefore, many people have speculated that Luxun's step towards car building is to broaden its own business and cure potential Apple dependence.
At least a few other fruit chain companies are already treating diseases, such as Lens Technology is marching into industries such as automotive windshields and photovoltaics, and Changying Precision has begun to lay out power batteries.
All in all, whether it is to chase the wind, lay out the future, or to cure Apple dependence, and as a casino veteran, how the Decision to Build a Car Lixun ends this time, the bad reviewer is unknown.
Whether it is big or small, after buying and leaving the hand, we will know later.
Author: Jiang Jiang Editor: Noodle Cover: Huan Yan
Images, sources:
Sina Technology, smashed 100 to acquire Chery's equity, AirPods foundry big brother Luxshare Precision to build a car
Global Tiger Finance, new energy vehicle "foundry", the new story of Luxshare Precision?
Luxshare Precision, Luxshare Precision Industries Co., Ltd. Investor Relations Activity Record Form
Luxshare Precision, third quarter earnings.