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| The 300 billion market value of "fruit chain brother" of the "car-making" big move
Following Foxconn, As the "fruit chain brother" with a market value of 300 billion, Luxshare Precision has recently announced two ambitious "car-making" moves, pointing to the world's leading auto parts Tier 1 manufacturer.
First of all, on February 11, the first big move of Luxshare Precision, there are two main points:
1. Luxshare Precision and Chery signed the "Strategic Cooperation Framework Agreement", and the company and Chery New Energy intend to jointly establish a joint venture company, specializing in the research and development and manufacturing of new energy vehicles.
2. Lixun Precision Holdings Limited also intends to purchase 19.88% of the equity of Chery Holdings, 7.87% of the equity of Chery And 6.24% of the equity of Chery New Energy held by Qingdao Wudaokou for 10.054 billion yuan
Automobiles are not what companies want to build, need to build car qualifications, this announcement means that Luxun has obtained a strategic partner with vehicle manufacturing qualifications. Whether it is entering the field of auto parts or entering the automotive OEM in the future, it has a solid foundation.
Why can we pull the future of automotive OEM? And listen to me one by one.
At present, the trend of automobile electrification has been established, technological innovations such as sliding chassis and die-casting integrated molding are in the ascendant, and the decoupling of the automobile manufacturing industry chain in the future has become possible. Applications such as autonomous driving and smart cockpits also make the trend of automotive electronics clear, which is conducive to more participation of mobile phone industry chain manufacturers in the wave of smart cars.
Coupled with Apple, Huawei, Millet and other mobile phone manufacturers and Internet manufacturers have entered the game to build cars, even if part of the choice of self-built production lines in the early stage, but considering the economy and rationality of long-term production line capital expenditure, after the later automotive industry chain is further decoupled and the relevant suppliers' capabilities are mature, it is expected to replicate the division of labor model of some mobile phone industries (that is, from the car factory's respective in-house production, to some of the production similar to mobile phone ODM or OEM mode).
This trend can refer to the development history of feature phones, in the early days, Motorola and Nokia both built their own factories to produce, but in the 1990s, they turned to large-scale outsourcing production, and drove the development opportunities of the mobile phone industry chain. This trend is expected to be replicated in the intelligent vehicle industry chain in the future and reshape the industrial chain pattern.
For this action of Lixun and Chery, at the investor meeting on February 13, Wang Laichun, chairman and general manager of Luxun Precision, clarified the direction and goal of Luxun Precision in the field of new energy vehicles: "Luxun Precision does not build complete vehicles, but cooperates with Chery New Energy to develop the ODM business of building good cars for others, and aims to seize the opportunity window to fight into the world's leading Tier1." ”
Therefore, the future of automobile OEM is an important industrial direction.
However, compared with the old rival Foxconn has announced that its pure electric vehicles are about to be delivered, Luxun Precision's "car-making" action seems to be late. However, this announcement only kicked off The prelude to Luxshare's large-scale entry into the automotive industry.
Just 10 days later, on the evening of February 21, Luxshare Precision's second big move came: a refinancing plan with a scale of up to 13.5 billion yuan, involving six aspects such as wearable devices, mobile terminals, semiconductor packaging and testing, and display modules.
Image source: Luxshare Precision Announcement
It is worth noting that in the fixed increase plan, there are two projects involving new energy vehicles and intelligent vehicles. Among them, the construction project of the product production line of the new energy automobile high-voltage connection system is 1.5 billion yuan, and the construction project of the product production line of the intelligent automobile connection system is 500 million yuan.
At this point, the "ambition" of Luxshare Precision to enter the automotive market has been revealed.
| Apple's "pro-son" counterattack road
People often jokingly call Luxshare Precision apple "pro-son", in order to show that the relationship between Luxun Precision and Apple is extraordinary.
Lixun Precision started with connectors, and the entrepreneurial experience of Chairman Ms. Wang Laichun is quite legendary, which can be moved to the previous article of Core Bugs "Market Value Super Honghai, From "Factory Sister" counterattack to Gou's most troublesome enemy" in detail.
Luxshare Precision's growth history
Image source: wind, China Merchants Securities
In 2010-2011, Luxun Precision successively acquired Jiangxi Boshuo and Liantao Electronics to successfully cut into the supply chain of apple, Lenovo, Asus, Microsoft and other international well-known brands, of which Apple is the main target, and gradually grew into the main supplier of Apple's connection solutions in 2014, and entered the field of wireless charging of watches in 2015.
In addition, Luxshare Precision acquired Kerton Industrial in 2012 to obtain Huawei supplier qualification in the field of communications, and in 2012 and 2014, it acquired Fujian Source Optoelectronics and SUK of Germany respectively to expand the business capabilities of automotive wiring harnesses and injection molded parts, and formally established the Automotive Division to lay out the automotive electronics field.
That is to say, Luxshare Precision has been online with Apple ten years ago and has begun to lay out the automobile business.
From 2016 to 2017, it cooperated with Taiwan Meilu Industry to acquire the equity of Suzhou Meite, Huizhou Meilu and Shanghai Meilu, and cut into Apple electroacoustic devices.
Since then, Luxshare Precision has begun to continuously increase its business with Apple.
In 2018, we introduced a number of parts and components such as iPhone linear motors, antennas, and wireless charging modules.
In 2017, the company began to OEM Apple AirPods headphones, achieving a breakthrough in Apple's whole machine manufacturing, and then introduced the Apple Watch assembly business in 2020, and successfully cut into apple iPhone OEM through the acquisition of Kunshan Weixin.
AirPods
Image source: Apple's official website
In the past decade, we can see that Luxun Precision has expanded from a small connector factory to a number of areas of electronic manufacturing in a few years, relying on the technical accumulation after entering the Apple industry chain, and in recent years, it has become a first-class foundry with a market value surpassing Thatriport, the parent company of Foxconn.
In 2017, when Apple CEO Cook visited Kunshan Lixun Precision, he said: "Their super-first-class factory integrates great craftsmanship and careful thinking into the manufacture of AirPods." After the tour, Cook said that Luxun impressed him most with their employees.
The first on the right is Apple CEO Cook, and the second from the right is Wang Laichun, chairman of Luxshare Precision
Image source: Luxshare Precision
These words of praise come from an important Apple CEO in the post-Jobs era, coupled with the steady stream of apple new product orders in recent years, which shows apple's strength and determination to support Luxshare precision.
Luxshare Precision, Apple's "pro son", deservedly so.
| Apple Car foundry, the new story of Luxshare Precision
As early as 2014, 3 years after Jobs's death, Apple has begun to build a car, which is the famous "Titan Project". However, until 8 years later, in 2022, Apple still did not launch its own Apple Car, which actually has all kinds of helplessness.
Apple's car-making direction has experienced a tortuous experience from the whole vehicle to the software to the whole vehicle, and the car-making project has changed 4 supervisors in 7 years, which is not difficult.
In addition, in the choice of Apple Car suppliers, Apple is also running into a wall everywhere.
To push the Apple Car towards true mass production, there are three directions.
The first is to build a self-built super factory like Tesla to produce cars. But Apple is an asset-light design company, and based on its habits in consumer electronics, it is more likely to find a foundry.
The second is to seek OEM by vehicle manufacturers. However, with negotiations with six automakers including BMW, Daimler, Toyota, Volkswagen, and Hyundai rejected, this direction basically declared bankruptcy.
The third is to find automotive foundry partners in its own consumer electronics supply chain. Foxconn's first electric vehicle Model T was officially delivered this week, but Foxconn is a joint venture with Geely to engage in this "professional car foundry", I don't know if Foxconn can still become an option for Apple Car, it is really difficult.
What's more tragic is that not long ago, even battery manufacturers BYD and Ningde Era rejected Apple, leaving Apple itself messy in the wind.
At this critical moment, Luxun Precision announced two major "car-building" actions in ten days, which have a lot of meaning here and are worth savoring.
Obviously, Luxshare Precision is prepared.
At present, the automotive subsidiaries of Luxun listed companies include Luxun Precision Industry, Fujian Source Optoelectronics, Germany SUK, etc., mainly focusing on the "nervous system" of the vehicle, including connectors/connecting wires, low/high voltage vehicle wiring harnesses, special wiring harnesses, etc., the main customers include domestic traditional car companies, new car-making forces and some large Tier1 manufacturers;
Image source: Luxshare Precision official website
The major shareholder Luxshare Limited also has a human-machine interface solution In vitro Tier1 company BCS (Suzhou Lisheng Automotive Technology), in recent years, it has increased the intelligent cockpit, intelligent driving, power module, Internet of Vehicles and other businesses, customers at home and abroad including Volkswagen, General Motors, Tesla, BBA and Japan's three major brand customers, and with the listed company Tier2 business to form a synergy; the current domestic and foreign automotive business revenue scale totals nearly 10 billion.
At present, based on various information, Luxun has greater hopes or has become an option for Apple Car.
Ms. Wang Laichun and his Lixun Precision have never seen rabbits and eagles, and they will not hastily announce two heavy "car-making" actions within ten days, and it is unimaginable that they have not obtained the intention of Apple to make such a big move.
Pointing to Apple Car, Luxshare Precision's new story has actually begun.
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