Following Foxconn's announcement of a joint car with Dongfeng Yulon, Apple's supplier "new favorite" Luxun Precision has also officially embarked on the road of car building.
On February 15, Xinhua News Agency announced that the company has reached an agreement with Chery Group to jointly form a joint venture company specializing in the research and development and manufacture of new energy vehicles.
According to the online car review, it was learned that Lixun Precision's controlling shareholder, Lixun Co., Ltd., spent a total of 10.054 billion yuan to purchase 20% of the equity of Chery Holdings.
With the issuance of an announcement from Luxshare Precision, it immediately aroused the attention and widespread discussion inside and outside the industry, and for a time, the news that Luxshare Precision also wanted to build cars was very loud.
In this regard, Wang Laichun, founder of Luxun Precision, stood up and clarified, saying that Luxun Precision does not manufacture complete vehicles, but cooperates with Chery to develop ODM business, and Luxun Precision is determined to become a first-class supplier of the world's leading automakers.
Luxshare Precision Car Manufacturing, is it a precaution?
Speaking of Luxshare Precision, Presumably everyone will not be unfamiliar, its chairman Wang Laichun from Foxconn's small migrant sister, counterattacked to become the owner of Apple foundry, and also squeezed into the story of The Forbes rich list.
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.
The AirPods, Apple Watch, Magsafe and other Apple products in everyone's hands have Luxshare's figure. Domestic mobile phone manufacturers such as Xiaomi, OV, and Huawei are also old customers of Luxun. Its figure is everywhere in our lives.
And Lixun Precision's rapid entry into the field of car manufacturing is because the prospects of the mobile phone industry have reached a bottleneck? Or is it for self-help, Luxshare Precision has to rush to find new growth points to break through its own shackles?
Objectively speaking, the trend of new energy, car manufacturing is indeed a rush to the outlet.
The same is true from the data point of view, since the global mobile phone sales peaked at 1.566 billion units in 2017, sales have steadily declined.
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. In order to save itself, Luxun was forced to embark on the road of building a car?
Fruit chains have been transformed and seek cross-border development
Since Foxconn announced the construction of cars last year, it is not surprising that Luxun, a manufacturer that is also an OEM of Apple, has also made cars, which is a historical process promoted by the new energy revolution for the car industry.
It is only surprising that Chery, a science and engineering man, frequently threw olive branches at Foxconn but failed to achieve his wishes, but on the contrary, he reached an intention to cooperate with Luxun Precision.
There are rumors in the outside world, perhaps because of OFILM's previous experience, so that the Chinese suppliers under the "fruit chain" are all at risk. Coincidentally, Apple has become the largest customer of Luxshare Precision, accounting for 69% of the total revenue of Luxshare Precision in 2020, surpassing well-known fruit chain companies such as Goertek and Lens Technology.
As of today, the market value of OFILM [002456] is only 23.912 billion
Indeed, since OFILM was stripped of the Apple industry chain, the stock market has also plummeted. In order to meet Apple's production needs, too much investment in technology research and development and production equipment has led to the company's asset-liability ratio approaching 60%.
Such a highly bound relationship with Apple has made Luxshare Precision difficult, and it is no exaggeration to say that if Luxun Precision loses Apple's order, it is not even better than OFILM. And Apple lost the supply and demand relationship of Luxshare Precision, just to cultivate another supplier.
Looking back, like Changying Precision Investment Power Battery, as well as Lens Technology's entry into the photovoltaic field, etc., the members of these "fruit chains" have sensed the dangerous atmosphere and have begun to seek cross-border development in other fields.
Luxshare Precision, a lifetime of gambling, what are the odds of winning this time?
Although Apple brings good benefits to Luxshare Precision, this dependence will also face the fate of being dumped at any time. The mall is like a love field, in case it is dumped by Apple one day, it is just a spare tire for Apple, but for companies like Lixun, destroying the whole world.
This time into Chery, although Lixun Precision claims not to build the whole car, but to cooperate with Chery to develop an ODM business that builds a good car for others. But clear-eyed people know at a glance that things are not so simple, and this is not the first time that Luxun Precision has changed tracks to chase the outlet.
At the beginning of the establishment of Luxun, 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.
Subsequently, Luxun chased a 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%.
Then, it is a big order from the sky, with Apple Lixun also all the way to hang, today's annual revenue has been nearly 100 billion, becoming the leader of the industry.
As of today, the market value of Luxshare Precision [002475] is as high as 313.189 billion
Towards the step of building a car, in the plan of Lixun Precision is to expand their own business, for the outside world this is a sign of getting rid of Apple dependence, forced to helpless and have to make a gamble, but the opponents of this gamble are relatively strong, and whose hand is still unknown.
Online car reviews believe that Luxun Precision's entry into the car market is more or less related to the poor prospects of the mobile phone industry. As for whether it is to chase the wind, lay out the future, or cure Apple dependence, Luxun Precision has absolute confidence in its smooth journey. What happened to The Lixun who decided to build the car this time, and so on, will know.
Note: This article does not constitute any investment advice, the stock market is risky, investment should be cautious.
Guardian Wen
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