LY iTECH
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LINGYI iTECH Participates in the French Promotional Event for Listed Companies on China's A-Shares and Discusses New Quality Productive Forces
On May 22, the New Vision for Investing in China - A-Shares Listed Companies Promotion Event, hosted by Shenzhen Stock Exchange and Shanghai Stock Exchange, took place in Paris with the participation of several representative enterprises from both the Shanghai and Shenzhen stock exchanges. LINGYI iTECH (SZ.002600), a listed company on the Shenzhen stock exchange, attended this promotional event. The company's Chairman and General Manager, Ms. Zeng Fangqin, shared her insights at the roundtable forum themed Developing New Quality Productive Forces and Promoting High-Quality Development, discussing how the company, as a global AI terminal hardware manufacturing platform, is forging new quality productive forces.
This event played a significant role as a medium for European investors to get acquainted with Lingyi. Investors who attended the forum and engaged in discussions expressed that Lingyi as a leading company in China's electronic manufacturing industry, an expert in functional components, and an invisible champion in niche fields, is worthy of long-term tracking and research by investors and possesses substantial investment value.
New quality productive forces are innovation-led, breaking away from traditional economic growth methods and paths of productive force development. They are characterized by high technology, high efficiency, and high quality, and are in line with the new development concept, representing an advanced state of productive forces. In the consumer electronics field, as the world's largest manufacturer of die-cutting, stamping, CNC functional parts, the largest manufacturer of charging plugs, and one of the top three manufacturers of injection molding technology, Lingyi iTech is an indispensable participant in the supply chain.
As a trustworthy core supplier of AI terminal hardware, Lingyi provides one-stop intelligent manufacturing services and solutions for precision functional parts, structural parts, and modules worldwide. The company is equipped with technologies for die-cutting, stamping, CNC, and injection molding processes, and has gradually become an invisible champion in each process area after years of development. The market share and shipment volume of the company's precision functional parts products have steadily ranked the leading position in the global consumer electronics market for many years, and it has set the industry standard in quality, process, technology, and other aspects, becoming a trustworthy Expert in Precision Functional Components for global customers, and further penetrating the emerging markets of new energy vehicle, photovoltaic, energy storage, etc. In FY2023, the company realized operating revenues of about CNY 34 billion, net income of about CNY 2 billion, and non-deductible net income of about CNY 1.7 billion.
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In terms of Foresight, Lingyi's R&D has achieved the transformation of cutting-edge technological information and needs into business opportunities. The company has built a systematic three-tier R&D system composed of the Industrial Research Institute, BG R&D Center, and BU R&D Center, always paying attention to the future development trends of the industry. It focuses on the application of materials, processes, and processes in new business areas, and transforms cutting-edge technological information and needs into business opportunities. The company does not aim to increase revenue and efficiency by blindly expanding production capacity, but rather by upgrading products through the development of new technologies, evolving from general intermediate process products to ultimate form products.
LYCC (Lingyi Creative Center) can respond to the needs of cutting-edge products in a timely manner, conduct applied research, quickly design customer needs into products, and put them into mass production. As a global AI terminal hardware manufacturing platform, the company empowers product innovation and technological development with strong R&D capabilities, achieving a successful transformation from OEM to JDM and ODM.
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In terms of Height and Breadth, the company has elevated the precision manufacturing process products to an independent product level, continuously expanding the product categories and optimizing the product structure.
The company's most competitive products at present are precision functional components such as die-cutting, stamping, and CNC. The more complex and precise the design of these parts, the more it becomes an advantage for the company. After nearly two decades of experience accumulation, the company's expertise in precision functional components has gradually been extended to the module and Softgoods fields. In 2023, Lingyi 's AI terminals and related communication products achieved revenue of about CNY 30.7 billion, with a gross profit margin of about 22%. The revenue of components such as power supplies, batteries, heat dissipation, displays, cameras, and frames accounts for a higher proportion, and the revenue of terminal-related components such as XR, folding screen phones, servers, and robots has grown rapidly. Under the wave of artificial intelligence, the five major upgrades of AI terminals (chips, memory, cooling, batteries, and power supplies), Lingyi is closely related to the latter three.
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In terms of Depth, the company firmly believes that FINE granularity and DEEP technology can lead to high efficiency and high profits. The company possesses an unparalleled capability in process design and R&D, truly achieving the integration of process design, mold design, automation design, one-piece flow design, IE lean design, and big data application, forming a systematic R&D system.
The company has developed and optimized a series of core process technologies around market demand, such as intelligent AOI (Automated Optical Inspection) systems and fully automatic product inspection feedback adjustment systems, high-speed precision stamping technology, one-piece flow stamping, unmanned workshop technology, one-line flow solution for die-cutting, and stamping simulation technology, etc.
The company enhances operational efficiency with advanced manufacturing. For example, traditional stamping part development mainly revolves around mold design and then integrates other processes. In contrast, Lingyi focuses on designing a one-piece flow process with intelligence as the main thread, integrating automation, intelligence (measurement, feedback, automatic improvement), molds, and IE lean improvement into this process. At the same time, with the assistance of the material laboratory, not only can the failure of the product be analyzed, but also the macro and micro aspects of the material can be delved into, to find the root cause and provide solutions and control measures.
The company integrates the development and application of artificial intelligence and robotics into an overall solution for automated industrial production. By combining self-developed multi-type, multi-functional CNC, and automated equipment, it has built a leading intelligent production workshop in terms of technical equipment level, successfully creating an efficient modern smart factory.
The company fully promotes Lean Manufacturing, identifying and eliminating various forms of waste in the production process. Through comprehensive Lean Six Sigma management, the company is promoting the optimization of repeated work in 2023, and has carried out paperless special projects, data report watchboard projects, process streamlining digital intelligence and other common special projects, with a combined optimization of more than 60,000 work hours. The company's precision functional components and parts have fully achieved CPK1.33 and partially reached 2.0 in terms of stability of dimensional accuracy. The yield rate has reached more than 98.5% and the overall OEE has been realized to reach more than 85%.
For functional components, from materials to each manufacturing process, strict verification and testing are implemented at the part end, and a comprehensive analysis of the impact of the process on function is carried out to ensure the functionality of the finished product is foolproof. The big data from online AOI (Automated Optical Inspection), after analysis, provides data support for process improvement and process control, allowing the product to be continuously improved during the iteration process, making the production process more accurate and optimizing the entire production process, such as reducing inspections and merging processes. In the end, low cost and high quality are achieved. Lingyi's IE lean production has also evolved from reducing waste and improving efficiency on-site to a systematic, flexible, and agile manufacturing approach, achieving a transformation from point to surface, to three-dimensional penetration.
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In terms of Internationalization, the company promotes high-quality development with an international perspective and cultural integration.
The company adheres to an international development strategy that coordinates the development of multiple categories and regions, creating a world factory with an international vision. It has 58 production and service sites and 8 assembly bases globally, covering Asia, Europe, and the Americas. These sites integrate R&D and manufacturing capabilities to quickly respond to customer needs, achieving localized production management and global product delivery.
The company has a sufficient talent reserve to support its global business layout. By the end of 2023, the company has more than 66,000 employees, and about 80% of VPs and above have an international working background or be able to use English as a working language. There are already more than 13,000 foreign employees in the company's global staff. The proportion of female executives in the company's management is about 21%. The proportion of female directors on the board is about 29%, which is higher than the latest global (25.8%) and Asia-Pacific (18.2%) levels.
The company empowers the high-quality development of overseas business with the integration of global employee cultures. In eight overseas regions, the company conducts cultural training, cross-cultural communication, and manager interviews in six languages to promote cultural integration, covering 100% of overseas employees and executives. In terms of international talent management, the company selects and cultivates a global talent team. In the past three years, it has provided more than 1,600 talents for overseas business and organized more than 90 talents to come to China for training, fully supporting the global business layout with a talent reserve.
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Under the wave of AI, the intelligent terminals are seeing a new golden age, full of infinite opportunities. Only by continuous evolution with the pace of the times can we always stay ahead. The company empowers manufacturing innovation and technology development with robust R&D capability. The company has realized the transformation from OEM to JDM and ODM. Lingyi has accumulated certain experience on the path of leading high-quality development with technological innovation and is always ready to meet new challenges.
Facing the future, Lingyi iTech will continue to uphold the craftsmanship spirit of constant dripping wears away a stone. The company will have the courage to overturn old boundaries and frameworks. The company will fully take advantage of its long-term accumulation and experience in the consumer electronics industry, and based on its technological and operational strengths, actively embrace new opportunities in AI. Therefore, it will be able to consolidate the company's new quality productive forces.