China Lixin Precision Industry (referred to as Lixun), which is involved in the service of electronic product foundry services, is growing rapidly.Although Lixun is an emerging enterprise created by former employees of Hon Hai, the largest company in the industry, it has surpassed the "home" Hon Hai in total market value.
According to the Nikkei Chinese website, compared with other companies, it was affected by a lot of affected during the crown disease. Lixun did not seem to be impacted, and the performance was strong.American apples.It is said that Lixun's current rapid expansion is largely due to the production order of the Apple wireless headset "AirPods" in 2017.
In addition, the company is also trusted by Apple.When Apple CEO Cook visited the factory in Kunshan, Jiangsu Province in 2017, he praised him as "super -class factories".
As of December 2019, Lixun's operating income reached 62.5 billion yuan (RMB, the same below, S $ 12.3 billion), and net profit was 4.7 billion yuan, which was more than 70 % year -on -year.Apple accounts for nearly 60 % of operating income. Although there is a risk of dependence on specific customers, the market is looking forward to its growth.
Lixun is currently listed in the Shenzhen market, with a total market value of 40 billion US dollars, which has increased to more than three times in the past year.Although the existence of investment funds on the Shenzhen Exchange is prone to pouring potential stocks, the Shenzhen Composite Index rose only about 30 % at the same time during the same period, and the increase in Lixun was prominent.
Lixun was established in 2004.Wang Laichun, a female employee who worked at Hon Hai in the factory of Hon Hai, established its own portal in 1997 to entreprenels entrepreneurs such as Hong Kong enterprises.Wang Laichun was promoted to chief less than 10 years. This was the highest level that mainland employees could do at that time.
For Lixun, the company operated by Hon Hai's founder Guo Taiming also invested 3%at first.The two parties have close relationships in business. Before the 2009 fiscal year, Lixun's operating income came from transactions with Hon Hai enterprises.Wang Laichun, the chairman of Lixun, told the media that his business model of learning Hon Hai has achieved growth.
Lixun was listed on the Shenzhen Stock Exchange in 2010. It made full use of the raised funds and successively acquired parts and component manufacturers of mainland China, Taiwan, and Germany.By performing vertical integration, the added value is increased.In addition, by acquiring companies that have traded with Apple and Huawei, they have become one of the suppliers and bid farewell to the operation of Hon Hai.
In addition, there may be Apple actively cultivating the side of Lixun.In order to reduce the purchase cost, Apple insists on purchasing from multiple suppliers.If specific enterprises have an overwhelming advantage in terms of technical aspects, Apple sometimes provides technical support to its competitors.
Taking the Apple mobile phone "iPhone" as an example, Hon Hai has been exclusively responsible for production since its launch in 2007.After 2013, other founders in Taiwan also received some orders. It is said that Lixun is now discussing the addition of production.Some analysts pointed out that if successful, "Lixun will compete with Hon Hai."
In response to future production categories, Lixun only expressed prudential assessment of products and businesses that are beneficial to the company's long -term development.
On the other hand, one of the reasons that can be able to surpass Hon Hai's growth and investment is R & D investment.R & D fee accounts for about 7%of its operating income.Some analysts pointed out that "this is significantly higher than the industry average."At the same time, Lixun's actions are also very fast.In view of the friction between China and the United States, Apple faces the topic of reorganization supply chain. In this context, Lixun began to expand the Vietnamese production base in 2019.
The view of Lixun, Chairman Liu Yangwei said in an exclusive interview with the Economic Daily in May that Lixun is like an early Hon Hai, and Hon Hai will maintain a sense of crisis at any time in the face of competition.If you don't worry about any challenges, Hon Hai will run faster, pull the gap, and make your opponent unable to catch up.
Hon Hai's Guo Taiming has established a huge foundry enterprise with a generation of people with the concept of "those who have a fast action and not the huge scale"."Mini Hon Hai" in mainland China is challenging in the same model.
