立讯精密:2020年年度报告(英文版)

公告日期： 2021-05-07T00:00:00Z

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立讯精密：2020年年度报告（英文版）.pdf (2977051)

LuxsharePrecision Industry Co.,Ltd.

AnnualReport

Fortheyearended December31,2020

2021-032

April2021

Section I.ImportantNote,TableofContentsand Definitions

The Board ofDirectors,the Board ofSupervisors,directors,supervisors and executivesofthe Company hereby warrantthatthe information contained in thisAnnualReportistrue,accurate and complete and thisAnnualReportisfree fromany misrepresentation,misleadingstatementormaterialomission,and agree to assume jointand severalliability forthisAnnualReport.

WANGLaichun, Principal of the Company, CFOWUTiansong and AccountingSupervisor XIAONa hereby representthatthe financialstatements contained in thisAnnualReportaretrue,accurateand complete.

Alldirectors ofthe Company attended the meeting ofthe Board ofDirectors reviewingthisReport.

Therelevantrisksfacing theCompany aresetoutin“Section IVDiscussion and AnalysisofBusinessSituations-IX.ProspectsforfuturedevelopmentoftheCompany”.

According to the profit distribution proposalapproved by the Board of Directors,theCompany willdistributea cash dividendsofRMB1.1 and 0 bonusshare(both inclusiveoftax)per10 sharesto allshareholderson thebasisof7,035,426,367 shares,and willnottransferanycapitalreserveto thesharecapitalforthereporting period.

TableofContents

Thisdocumentisatranslated version oftheChineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and the published AnnualReport2020 ofLuxshare Precision Industry Co.,Ltd.in the Chinese version shallprevail.The completepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

Definitions

Terms		Definition
Luxshare-ICT	means	LuxsharePrecisionIndustryCo.,Ltd.
LuxshareHK	means	LuxsharePrecisionLimited(HK),founderandcontrollingshareholderofLuxshare-ICT
XuntaoDongguan	means	DongguanXuntaoElectronicCo.,Ltd.
LuxshareDongguan	means	DongguanLuxsharePrecisionIndustryCo.,Ltd.
LeaderDongguan	means	DongguanLeaderPrecisionIndustryCo.,Ltd.
XiexunJi’an	means	XiexunElectronic(Ji’an)Co.,Ltd.
IntelligentManufactureJiangxi	means	JiangxiLuxshareIntelligentManufactureCo.,Ltd.
ASAPJiangxi	means	ASAPTechnology(Jiangxi)Co.,Ltd.
XiexunWan’an	means	Wan’anXiexunElectronicCo.,Ltd.
XiexunXinyu	means	XinyuXiexunElectronicCo.,Ltd.
LuxshareKunshan	means	KunshanLuxsharePrecisionIndustryCo.,Ltd.
LantoKunshan	means	LantoElectronicLimited
LuxshareElectronicKunshan	means	LuxshareElectronicTechnology(Kunshan)Co.,Ltd.
LuxshareIntelligentManufacture	means	LuxshareIntelligentManufacture(Zhejiang)Co.,Ltd.
LuxshareSuzhou	means	LuxsharePrecisionIndustry(Suzhou)Co.,Ltd.
LuxshareChangshu	means	LuxshareIntelligentManufactureTechnology(Changshu)Co.,Ltd.
LuxshareAutomationJiangsu	means	LuxshareAutomation(Jiangsu)Ltd.
LantoBozhou	means	BozhouLantoElectronicLimited
LuxshareChuzhou	means	LuxsharePrecisionIndustry(Chuzhou)Ltd.
LuxshareFengshun	means	FengshunLuxsharePrecisionIndustryCo.,Ltd.
RikaiComputer	means	RikaiComputerAccessoriesCo.,Ltd.
LuxshareVietnam	means	Luxshare-ICT(Vietnam)Limited
LuxshareVanTrung	means	Luxshare-ICT(VanTrung)CompanyLimited
LuxshareNgheAn	means	Luxshare-ICT(NgheAn)Limited
LuxsharePrecision	means	LuxsharePrecisionLimited
ICT-Lanto	means	ICT-LantoLimited
SuK	means	SuKKunststofftechnikGmbH
MeiteSuzhou	means	MeiteTechnology(Suzhou)Co.,Ltd.
WeichuangJiangsu	means	WeichuangInvestment(Jiangsu)Co.,Ltd.
WeixinKunshan	means	WeixinZitong(Kunshan)Co.,Ltd.
ShenzhenMSA	means	ShenzhenAdministrationforIndustryandCommerce,whichwasintegratedintotheMarketSupervisionAdministrationofShenzhenMunicipality
AOA	means	ArticlesofAssociationofLuxsharePrecisionIndustryCo.,Ltd.

Section IICompany Profileand FinancialHighlights

I.Company profile

Stockshortname	Luxshare-ICT	Stockcode	002475
Stockexchange	ShenzhenStockExchange
Chinesename	立讯精密工业股份有限公司
Chineseshortname	立讯精密
Englishname(ifany)	LuxsharePrecisionIndustryCo.,Ltd.
Englishshortname(ifany)	Luxshare-ICT
Legalrepresentative	WANGLaichun
Registeredaddress	2/F,BlockA,SanyangNewIndustrialZone,WestHaoyi,ShajingStreet,BaoanDistrict,Shenzhen
Postalcodeofregisteredaddress	518104
Officeaddress	No.313BeihuanRoad,QingxiTown,Dongguan,Guangdong
Postalcodeofofficeaddress	523642
Companywebsite	www.luxshare-ict.com
Email	Public@luxshare-ict.com

	BoardSecretary	SecuritiesAffairsRepresentative
Name	HUANGDawei	LIRuihao
Address	No.313BeihuanRoad,QingxiTown,Dongguan,Guangdong	No.313BeihuanRoad,QingxiTown,Dongguan,Guangdong
Telephone	0769-87892475	0769-87892475
Fax	0769-87732475	0769-87732475
E-mail	David.Huang@luxshare-ict.com	Ray.Li@luxshare-ict.com

Designatednewspapersforinformationdisclosure	SecuritiesTimes
WebsitesdesignatedbytheChinaSecurities RegulationCommissionforpublishingannualreport	www.cninfo.com.cn
Placeforkeepingannualreport	SecuritiesAffairsOfficeoftheCompany

Changeinorganizationcode	No
Changesinmainbusinesssincethelisting oftheCompany(ifany)	No
Changesincontrollingshareholder(ifany)	No

Accounting firmengaged by theCompany

Nameofaccountingfirm	BDOChinaShuLunPanCertifiedPublicAccountantsLLP
Officeaddressofaccountingfirm	Rooms1,2&3,4/F,No.61EastNanjingRoad,HuangpuDistrict,Shanghai
Nameofaccountantssigningthisreport	LIJingandWEIGang

Sponsorengaged by theCompany thatperformsthedutiesofongoing supervision overtheCompany during thereporting period

√Applicable□N/A

Nameofsponsor	Officeaddressofsponsor	Namesofsponsorrepresentatives	Periodofongoingsupervision
CITICSecuritiesCo.,Ltd.	19/F,NorthTower,ExcellenceTimesPlaza(PhaseII),No.83rdCentralRoad,FutianDistrict,Shenzhen	HE Feng and LIUGuanzhong	FromDecember2,2020toDecember31,2021

Financialadvisorengaged by theCompany thatperformsthedutiesofongoing supervision overtheCompany during thereportingperiod

□Applicable√N/A

VI.Key accounting data and financialindicators

Did theCompany need to retrospectively adjustorre-stateany accounting dataofprioraccounting years?

□Yes√No

	2020	2019	Y/Y%Change	2018
Operatingrevenue(RMB)	92,501,259,211.54	62,516,314,588.42	47.96%	35,849,964,160.13
Netprofitattributableto shareholdersofthelistedcompany (RMB)	7,225,462,752.58	4,713,820,644.90	53.28%	2,722,631,125.23
Netprofitattributableto shareholdersofthelistedcompany afterdeductionofextraordinary gainorloss(RMB)	6,088,901,850.86	4,435,974,109.41	37.26%	2,553,973,258.82
Netcashflowsfromoperating activities(RMB)	6,873,211,486.05	7,465,988,174.33	-7.94%	3,142,307,168.34
Basicearningspershare (RMB/share)	1.03	0.68	51.47%	0.37
Dilutedearningspershare (RMB/share)	1.01	0.67	50.75%	0.37
Weightedaveragereturnonnet assets	30.29%	26.55%	3.74%	17.95%
	December31,2020	December31,2019	Y/Y%Change	December31,2018
Totalassets(RMB)	70,012,753,551.75	49,377,910,671.23	41.79%	36,441,441,236.44
Netassetsattributableto shareholdersofthelistedcompany (RMB)	28,101,816,234.56	20,296,618,968.52	38.46%	15,497,944,981.18

Whetherthe lowerofthe netprofitbefore and afterdeduction ofextraordinary gain orloss in the pastthree accounting years hasbeen negative and the mostrecentannualauditor’s reportindicates thatthe Company’s ability to continue as a going concern isuncertain?

□Yes√No

Whetherthelowerofthenetprofitbeforeand afterdeduction ofextraordinary gain orlossisnegative?

□Yes√No

VII.Differences in accounting data arising fromadoption offoreign and Chinese accountingstandardsconcurrently

1. Differences in net profit and net assets disclosed on the financial statements according to theinternationalaccounting standardsand theChineseaccounting standards

□Applicable√N/A

Therewasn’tany differencein netprofitand netassetsdisclosed on thefinancialstatementsforthereporting period dueto adoptionoftheinternationalaccounting standardsand theChineseaccounting standardsby usconcurrently.

2.Differences in net profit and net assets disclosed on the financialstatements according to the foreignaccounting standardsand theChineseaccounting standards

□Applicable√N/A

Therewasn’tany differencein netprofitand netassetsdisclosed on thefinancialstatementsforthereporting period dueto adoptionoftheforeign accounting standardsand theChineseaccounting standardsby usconcurrently.

VIII.Main quarterly financialindicators

In RMB

	Firstquarter	Secondquarter	Thirdquarter	Fourthquarter
Operatingrevenue	16,513,283,460.66	19,938,342,688.20	23,076,494,141.40	32,973,138,921.28
Netprofitattributableto shareholdersofthelistedcompany	981,870,190.71	1,555,904,567.75	2,141,839,306.57	2,545,848,687.55
Netprofitattributableto shareholdersofthelistedcompany afterdeductionofextraordinary gainorloss	896,806,034.69	1,441,507,176.13	1,872,789,269.22	1,877,799,370.82
Netcashflowsfromoperating activities	1,319,173,417.54	1,862,770,924.91	-441,882,109.67	4,133,149,253.27

corresponding financialindicatorscontained in any quarterly orsemi-annualreportalready disclosed?

□Yes√No

IX.Itemsand amountsofextraordinary gainsorlosses

√Applicable□N/A

In RMB

Item	2020	2019	2018	Remark
Gainorlossondisposalofnon-currentassets (includingallowanceforimpairmentofassetsthathas beenwrittenoff)	-35,503,173.93	-110,085,527.48	-17,424,350.63
Governmentgrantsrecognizedinprofitorloss (excludinggovernmentgrantsthatarecloselyrelated tothebusinessoftheCompanyandareprovidedin fixedamountorquantitycontinuouslyaccordingto theapplicablepolicesofthecountry)	450,749,695.89	232,311,428.35	123,984,003.37
Gainorlossonassetsunderentrustedinvestmentor management	113,778,335.78	89,722,710.32	78,134,882.23
Gainorlossonchangesinfairvalueoffinancial assetsheldfortrading,derivativefinancialassetsand financialliabilitiesheldfortrading,andgainon disposaloffinancialassetsheldfortrading,derivative	837,100,369.42	131,736,631.37	49,088,345.36
financialassets,financialliabilitiesheldfortrading andotherdebtinstruments,exceptforeffective hedgesheldintheordinarycourseofbusiness
Othernon-operatingincomeandexpenses	30,554,498.37	-999,739.32	10,263,319.96
Othergainorlosswithinthemeaningof extraordinarygainorloss			-45,901,431.11
Less:Effectofincometax	214,489,873.68	55,533,801.99	22,195,598.91
Effectofminorityinterest(exclusiveoftax)	45,628,950.13	9,305,165.76	7,291,303.86
Total	1,136,560,901.72	277,846,535.49	168,657,866.41	--

Ifthe Company classifies any itemofextraordinary gain orloss defined by orlisted in the Explanatory AnnouncementNo.1 onInformation Disclosure for Companies Publicly Offering Securities -Extraordinary Gain or Loss as recurrentprofitorloss,pleaseexplain thereason.

□Applicable√N/A

We have notclassified any itemof extraordinary gain or loss defined by or listed in the Explanatory Announcement No.1 onInformation Disclosure forCompanies Publicly Offering Securities -Extraordinary Gain orLoss as recurrentprofitorloss in thereporting period.

Section IIIBusiness

I.Main businessin thereporting period

1.Overview

We are engaged in the research,development,manufacturing and sales of products in the fields of consumerelectronics,communication,auto electronicsand healthcare,among others.In 2020,in lightofthe complicated externalenvironment, we efficiently implemented the development plans and objectives established by the management,cautiously and flexibly coped with the externalenvironment,and realized rapid growth ofallscopes ofbusiness.Ourkey management has continuously made deployments for future development centered on our main business, andfocused on maximizing benefitsand realizing sustainabledevelopment.

Ourproductsand scopesofbusinessarediversified and vertically integrated,and we providecomponents,modulesand systemassembly. The business of precision components is a field in which we have set foot earliest andaccumulated richest experience.We have comprehensive production processes,including design and processing ofprecision molds,design and realization ofintelligentautomation,CNC,SMT,SiP,stamping,molding,electroplating,conductorextraction and bare wire extrusion,enabling us to ensure the quality ofourproducts and timely delivery ofproducts to customers.In addition,we masterallbasic processes,which help us make continuous innovations in newtechnologies and newprocesses.Our module products focus on acoustic,radio frequency,touch control,power andfunctionalfields,and mainly include acoustic modules,antennas,wirelesscharging and vibration motors.In the field ofcommunication and data center,ourproducts mainly include high-speed connectivity,optic module,cooling module,base station antenna and base station filter.Through focusing on technology developmentand combining the effortsofenterprises,universities and research institutes,we are leading the way in certain marketsegments in the world.In thefield ofautomotives,we focus on the“blood vessels and nervous system”ofautomotives,and offerautomotive wireharness, special wire harness, high-voltage wire harness for newenergy vehicles, connector, smart electric box,road-side unit(RSU),telematics controlunit(TCU),centralgateway and other products.In the communication andautomotive business,we greatly benefitfromourstrong process,research,development,quality,operation and othercomprehensive capabilities accumulated in the field of consumer electronics in our early stage of development.Themature experiences and a variety of resources owned by us in differentfields have produced a synergy effectandformed a virtuous cycle featuring mutual nourishment and mutual promotion. We concentrate our efforts on thespecialization in and optimization of underlying technologies,made in-depth deployments in acoustic,visual,power(wired/wireless),wireless communication and other fields to meet future demands.Our products have been widelyapplied in the fieldsofconsumerelectronicsand automotives.By comprehensively mastering the technologiesrelatingto various components and modules,and super-precision manufacturing technologies accumulated overthe years,wegive fullplay to ouradvantages in verticalintegration.In recentyears,we have continuously restructured the supplychain in the field ofsystemassembly,to create more value forourcustomers,thereby gaining customers’supportandconfidence.Ourmain products in the field ofsystemassembly include smartwearable,smarthome and smartdisplayproducts.

In launching a newproduct,we focuson the productquality,yield rate and optimization ofproduction coston thebasis ofinnovative production technology,intelligentautomation and digitalplatform,thereby enabling us to makecontinuousand substantialbreakthroughsin newmarkets,newcustomersand newproducts.In the implementation ofrelated controls,thereisno doubtthattheautomation technologieslay thestrong foundation forourcorecompetencies.

Therefore,we attach greatimportance to the continuous exploration ofautomatic and intelligentmanufacturing.Ourcoreteam’sspiritofin-depth exploration ofprocessesand determination to accomplish alltasksassigned guarantee thesuccess in the developmentand design ofautomation technologies.According to the requirements forcosmetic,size,functionsand reliability ofproducts,we disassemble and study allmanufacturing processes,and make effortsto solveprocesschallengeswith reference to ourpastexperience and advanced technologiesavailable on the market.With thegoalofzero lossand zero defect,we strive to realize the reasonableness,standardization and automation ofdesignsinteremsofyield rate,efficiency,cost,etc.

After the completion of process study,we realize process design through automation,including automation ofwork stations,handling and positioning,testing,warehousing,logistics and production process.Standardization is theprerequisite forautomation,because standardized products cannotbe made withoutthe use ofstandardized equipmentand processes.With respectto the productsthathavealowdemand and change frequently,we mainly useman-machineflexibleautomation technologies.

In the design of automatic equipment, we make plans for MESsystem, IoTaccess and key work stationinformation flowsneeding to becontrolled simultaneously,and build amodelofdigitalfactory on thatbasis.Thereafter,we convertallproblemsand phenomenon into data,and then processand judge the data systematically,and presentthesame in the formof visual reports,to realize whole-process traceability of products,materials,people,equipment,fixtures, process technology and quality information, among others, implement close-end control, and ensure theeffectiverealization ofautomation.

On thatbasis,we introduce digitalmodels,use modeling approaches to connectproduction with data flows,andthrough the use ofbig data,cloud computing,artificialintelligence,digitaltwin and othertechnologies,deeply explorethe information and trends on the back of data,seek benefits fromdata,and finally realize intelligentization,andself-judgment,selfdecision-making,self-adjustmentand self-execution by machines,so thatthe machines are able tosolve tangible problems and predict intangible problems on their own, thereby achieving the long-termgoal ofintelligentmanufacturing.

1.精益化 工艺的深度拆解和前瞻研究 设计的合理化、标准化和简单化 产线的精益布局规划			3.数字化IOT、制造数字化集成可视化控制中心和管理运营流程自动化贯通
1.Improvement In-depthdisassemblyofandforward-looking researchonprocesses Reasonableness,standardizationandsimplification ofdesign Improvedlayoutofproductionlines			3.DigitalizationDigitalintegrationofIoTandmanufacturingVisualcontrolcenterandmanagementAutomationofthewholeoperationprocess
2.自动化 搬运-加工-检测-物流-仓储的全流程自动化 柔性自动化系统分析			4.智能化机器自感知、自学习、自决策、自执行解决有形的问题和预测无形的问题数据驱动管理决策
2.Automation Whole-processautomationofhandling,processing, testing,logisticsandwarehousing Analysisofflexibleautomationsystem			4.IntelligentizationSelf-sensing,self-learning,selfdecision-makingandself-executionofmachinesSolvetangibleproblemsandpredictintangibleproblemsData-drivenmanagementdecision-making
物理域	精益生产布局	精益工艺研究		工艺数字化	流程数字化
Physicalfield	Improvedproductionlayout	Improvedprocessstudy		Technologicaldigitalization	Processdigitalization
精益化	数字化	智能制造		信息域	制成自动化
Improvement	Digitalization	Intelligentmanufacturing		Informationfield	Manufacturingautomation

自动化	智能化	预测性分析	物流自动化	高级决策支持
Automation	Intelligentization	Predictiveanalysis	Logisticsautomation	Advanceddecision-makingsupport

Fromthe perspective ofapplications,consumerelectronics,communication and automotivesare ourmain productand businesssegments.In the field ofconsumerelectronics,we offera wide range ofproducts,centering on future 5Gsmartlife,while utilizing ourexisting resources,and gradually diversify ourproductofferings.Ourproducts includeacoustic products,such asTWSearphone,bluetooth headphone,high-end gaming headsetand small-sized high-qualitystereo speaker,smarthome products,such as 5Grouterand Wi-Fi6 portable router,smartterminalproducts,such aswearable watch and wristband,tracker,game controllerand AR/VR,computeraccessories,such asDock and intelligentstylus,and wired and wireless charging accessoriesforvarious PC/NB/mobile phone brandsforretailsale.In additionto traditionalproducts,we willlaunch a variety ofcustomized smartproducts in conjunction with differentplatformcustomers,to enrich ourproductofferings.

智能音箱	智能手机	VR眼镜	5G路由器	智能穿戴	无人机
Smartspeaker	Samrtphone	VReyeglasses	5Grouter	Smartwearable	Drone
电子烟	无线充模组	声学模组	震动马达	5G模组	天线
Electronic cigarette	Wirelesschargingmodule	Acousticmodule	Vibrationmotor	5Gmodule	Antenna
机壳	射频	线材线缆	机构件	连接器	核心工艺智能制造
Casing	Radiofrequency	Wireandcable	Mechanicalcomponents	Connector	CoretechnologyIntelligentmanufacturing

3.Communication business

Driven by 5G,big data and edge computing technologies,the ICTindustry has been growing vigorously,and thehardwareequipmentshowsa tendency towardsgradualopening ofinterfacesand high integration offunctions.In lightofsuch background,we have continuously extended the mix ofourhardware communication products.Atpresent,ourwhole-machine productsinclude base station antenna,basestation filter,towermounted amplifier,duplexer,combiner,RRU,AAU,smallbase station,etc.,and core componentproducts include high-speed connector,high-speed cableassembly,photoelectric conversion and optic transmission application products,cooling module,transmission module,RCU,etc.Through such productmix,ourstrategy ofdeveloping both whole machine products and core componentproducts(electricconnector,opticalconnectorand thermalmanagement)hasbegun to showresults.

Wehavefocused on thedevelopmentofcoretechnologicalcapabilitiesand basic research and development(R&D)capabilities through research of simulation technology,newmaterials and newprocesses and application of testingtechnologies,so thatwe can providestrong technicalsupportregardlessofany change in productforms.With respecttosystemproducts, through disassembly of modules and components contained in the products, and single-pointmanufacturing processesand technologies,we are able to realize highly orwholly automated,efficientand high-qualityproduction and manufacturing forlargeand smallbatchesofproducts.

ICT系统产品家族	天线系统	滤波器	射频模块
ICTsystemproductfamily	Antennasystem	Filter	Radiofrequencymodule

memories, enhance our innovation and R&Dcapabilities in respect of electrical connection products, establish acomplete interface system,and create a dual-core engine combining standardsand patents,so asto take the lead on themarket.With respectto opticalconnection products,we have engaged in the developmentof technologies that areexpected to be applied in the nextthree to five years,to lay the foundation forthe integration ofelectricalconnectiontechnologiesin the future,and realize cornerovertaking in key areas.With respectto thermalmanagementproducts,inlightofstrong demands,we willdevelop outstanding productand technicalcapabilities within two to three years,tooccupy afavorableposition on thefuturemarket.

核心零部件——数据中心产品家族	汇聚交换机	接入交换机		数据中心机架群	机架内服务器群
Corecomponents–data centerproductfamily	Aggregationswitch	Accessswitch		Datacenterrackcluster	Serverclusterinsiderack
应用：数据中心机架内/机架间互连服务器与交换机互连：单口速率：传输距离：			应用：数据中心机架内互连服务器与接入交换机互连：单口速率：传输距离：
Application:Intra-rack/inter-rackconnectionatdata center Server-switchconnection Single-portrate: Transmissiondistance:			Application:Intra-rackconnectionatdatacenterServer-accessswitchconnectionSingle-portrate:Transmissiondistance:

核心零部件——服务器/存储/交换机产品家族	电连解决方案	散热解决方案		轴流风扇
Core components – server/memory/switchproductfamily	Electricalconnectionsolution	Coolingsolution		Axialfan
光模块散热器	服务器CPU散热器		800G应用（功率12-24W）
Opticalmodulecooler	ServerCPUcooler		800Gapplication(Power:12-24W)
应用：服务器/存储/交换机高速互连解决方案单口速率外部IO/背板：内部IO：		自研界面：轩猿平台高速背板：服务器互连界面：下一代互连形态：
Application:Server/memory/switchhigh-speedconnectivitysolution Singleportrate: ExteriorIO/backboard InteriorIO:		Self-developedinterface:XuanYuanplatformHigh-speedbackboard:Serverconnectioninterface:Next-generationconnectivityform:

comprehensive services to our customers.In addition,the increasing high ceiling of the marketand increasing largespaceforgrowth willgivestrong supportto ourlong-termgrowth in thenextfiveto ten years.

4.Automotivebusiness

At present,the automotive industry is transiting fromtraditionalmanufacturing to scientific and technologicalmanufacturing. Vehicles are gradually developing frompure riding tools to an interconnected space on wheelsintegrating entertainment, office and consumption. The demands of vehicle consumers for intelligentization andpersonalization drive the transition ofvehicles towards super-smartterminals.Led by Tesla,smartcabin becomes anarea ofbreakthrough,which createsa wholly-newexperience ofman-vehicle interaction through the provision ofLCDpanel, central control screen and other functions, extends the functions of smart phones to vehicles, and realizesseamlessconnection with mobile phones.The increasingly wide application ofADASand the InternetofVehicleswill

also promotetheintelligentization ofvehiclesand acceleratetheentry into an eraofsmartvehicles.

汽车向智能终端演进的过程中将迎来黄金十年
Wewillenterintoagoldendecadeduringthetransitionofvehiclestowardssmartterminals
电动化	智能化	网联化	共享化
Motorization	Intelligentization	Networking	Sharing
行业趋势	智能座舱、智能驾驶	无人网约车服务	零部件/软件服务
Industrialtrend	Smartcabin,smartdrive	Unmannedcarhailingservice	Components/softwareservice
整车制造	整车品牌/主要玩家	电池/电子电气架构	FOTA升级及服务
Vehiclemaking	Vehiclebrands/mainplayers	Battery/electricalandelectronicarchitecture	FOTAupgradingandservice
品牌群雄并起、百花齐放		特斯拉、新势力
Alotofbrandsenterthemarket		Telsa,newplayers
传统车企拥抱新趋势		百度等自动驾驶方案
Traditionalcarmanufacturersfollowthenewtrend		Auto-drivesolutionsofferedbyBaiduandotherentities
小米等手机巨头		软件升级+服务变现
Xiaomiandothermobilephonetycoons		Softwareupgrading+servicemonetization
平台型汽车企业 市场份额更加走向集中化		自动驾驶能力硬件整合能力跨平台软件、服务变现能力无人车运营能力
Platform-stylecarmanufacturers Marketsharesareincreasinglyconcentrated		Auto-drivecapabilityHardwareintegrationcapabilityTrans-platformsoftwareandservicemonetizationcapabilityUnmannedvehicleoperationcapability
硬件快速迭代（硬件成本下行、品牌厂积极创新、快速		基于传统汽车设计的硬件迭代

迭代以实现差异化）
Hardwareisupgradingquickly(decreaseincostsof hardware,activeinnovationofbrands,quickupgradingto achievedifferentiation)	Hardwareupgradingbasedontraditionalvehicledesign
硬件设计趋于标准化，通过软件及服务寻求差异 提升车企利润率和客户粘性	整车百花齐放，同时创新动能提升，带动零部件机会电动化、智能化ASP提升
Hardwaredesigntendstowardsstandardization,with theintentiontoachievedifferentiationthrough softwareandservices Increasethegrossmarginandcustomeradhesionof carmanufacturers	Alotofcarmanufacturersenterthemarketandshowenthusiasmforinnovation,bringinginmoreopportunitiesforcomponentsMoremotorizedandsmartASP
车的形态变化（标准化、模块化设计）	硬件格局走向集中，软件及服务生态建立
Changeinformofvehicle(standardizedandmodular design)	Hardwaretendstowardsconcentrationandtheecosystemofsoftwareandserviceisestablished

networking,orthe“blood vesselsand nervoussystem”ofautomotives,and offerlow-voltage automotive wire harness,special wire harness,high-voltage wire harness for newenergy vehicles,high-speed connector,smart electric box,road-sideunit(RSU),telematicscontrolunit(TCU),centralgateway and otherproducts.

Wire harness is an essentialsystem-levelcomponentfora vehicle,is flexible,importantand widely used,coversallconfigurations ofa vehicle,and provides reliable powersupply,signals and data to allelectric appliances,so theyserve as“arteries”ofthe“neuralnetwork”ofa vehicle.Automotive wire harness is a main artery supplying nutrientsthroughoutthe vehicle,while specialwire harness is an“umbilicalcord”or“nerve ending”,which obtains powerandsignals fromthe automotive wire harness and effects switches and connections among differentsensors,actuators orother components. Through vertical integration, we have grown into a comprehensive supplier covering design,manufacturing and validation ofautomotivewireharness,specialwireharnessand smartelectricbox.

Along with the rapid growth of smart electric vehicles throughoutthe world,high-voltage wire harnesses andconnectors willconstitute an increasingly high proportion on future vehicles.We have designed and developed allkindsofhigh-voltage wire harnesses and connectorsused on a vehicle,including high-voltage wire harness,charging

connector,high-voltageconnector,busbar,etc.

高压连接器	母排	充电枪、充电座、充电线束总成	母排系统总成
High-voltageconnector	Busbar	Charginggun,chargingdock&chargingwireharnessassembly	Busbarsystemassembly

Due to the concentration of automotive electronic architecture, in order to realize more rapid and accuratecommunication, the demands for various automotive data communication modules and interfaces are growingcontinuously,such as gateway,remore communication and other modules related to LIN, CANand 100M/gigabitethernet transmission.However,the transmission of such high-speed signals faces newchallegnes.Our proprietarygigabit ethernet connector adopts a wholly shielded double cable connection structure,and can be widely used oninfotainment,ADAS,domain controllerand otherproducts.

高速连接器应用	物理接口及连接类型
High-speedconnectorapplication	Physicalinterfaceandtypeofconnection

information fromand transmitsinformation to moving vehicles,so asto realize networking between vehicles,betweenvehiclesand people,between vehiclesand roads,and between vehiclesand service platforms,and can play an importantrole in vehicle safety, traffic control,information service, smart city and intelligent transportation. At present,theInternetofVehicles applications are key projects ofgovernmentand OEMs,and require coordination among multipledevices,such as road-side unit(RSU)which collects environment,traffic condition,traffic sign and otherinformationand sendsthe same to vehicles,telematicscontrolunit(TCU)which effectstwo-way communication between vehiclesand externalnetworks,centralgateway (CGW)which connectsallelectronic devices on a vehicle,and otherproducts.We focuson the developmentofwirelesscommunication and automotive electronic products,and currently offerRSU,TCUand CGW,among others.

By leveraging our precision manufacturing platformand outstanding customer channels, our low-voltage,high-voltage and high-speed wire harness,connector,smartnetworking and otherproducts have rapidly entered thesupply chains of major domestic and foreign customers, accumulated rich cases of application and been widelyrecognized by ourcustomers.Meanwhile,we keep pace with ourpremiumcustomers athome and abroad,accuratelygrasp the developmentdirection oftechnologiesand the industry,and actively promote the technologicalupgrading ofproductsand reduction ofcoststhrough technology,to continuously provideourcustomerswith productsand solutionsthatarecompetitivein both technology and business.

5.Main marketand businessdevelopment

Each main field in which we operate hasa huge market.We have substantially the same resolution and persistencein pursuing growth in each field.Fromthe perspective ofsustainable development,ourtop priority is to investin thefuture.In 2020,ourR&Dexpensestotaled RMB5.745 billion.In the future,we willcontinue to investin allmain fieldsof products and business, make forward-looking deployments, and prevent and control risks, to realize healthydevelopment.

Growthofmainbusiness
Areaofbusiness	Typeofbusiness/products	Marketsizein2020(inRMB100million)	Compoundannualgrowthrateofmarketsize	Source
Consumer electronics	Smartphone	27‚915	3.60%	IDS,Statista
	PC	11‚010	0.20%	Gartner,IDS,Statista
	AR/VR	782	56.90%	IDC

	TWS	3‚731	18.60%	MarketsandMarkets
	Smartwatch	1‚605	19.60%	AlliedMarketResearch
	Wirelesscharging	820	14.50%	GlobalMarketInsights
	UAV	668	14%	EastMoney,InteractiveAnalysis
	Dock/Dongle	434	2.50%	Industryreport,internalanalysis
Subtotal		46‚964
Communication	ICTequipment	11‚137	5%	IDC
	Cable/connector	2‚110	8%	Bishop
	Opticalproducts	716	10%	LightCounting
Subtotal		13‚964
Automotive	Wireharness	2‚908	3.10%	MarketsandMarkets
	Connector	1‚265	5%	ResearchandMarkets
	ADAS	2‚358	20.7%	MarketsandMarkets
	Smartcabin	3‚486	11%	AlliedMarketResearch,Stratreview,StatistaResearchDepartment
	Smartconnectivity	45	44.20%	MarketsandMarkets
Subtotal		10‚061
Total		70‚990

ofChina (2020)published by the China Electronic Components Association,and were awarded the honorable titles of“top 500 private enterprises of China”,“top 500 private manufacturers of China”,“top 100 electronic informationmanufacturersofGuangdong”and“40 mostrespected listed companiesofthe Shenzhen SpecialEconomic Zone in thepast40 years”,among others.

II.Materialchangesin majorassets

1.Materialchangesin majorassets

Majorassets	Reasonofmaterialchanges
Equityassets	Nomaterialchange
Fixedassets	A44.16%increaseyearonyear,primarilyduetoanincreaseininvestmentinfactorybuildings,dormitoriesandequipment
Intangibleassets	Nomaterialchange
Constructioninprogress	A84.40%increaseyearonyear,primarilyduetoanincreaseininvestmentinuncompletedfactorybuildinganddormitoryconstructionprojectsandequipment
Short-termborrowings	A81.87%increaseyearonyear,primarilyduetoanincreaseinborrowingsforworkingcapitalpurpose
inventories	A71.55%increaseyearonyear,primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth
Notespayable	A37.74%decreaseyearonyear,primarilyduetoadecreaseinnotetransactions
Deferredincome	A66.11%increaseyearonyear,primarilyduetoanincreaseingovernmentgrantsascapitalcontribution
Accountspayable	A33.49%increaseyearonyear,primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth

□Applicable√N/A

III.Analysisofcorecompetencies

Since our establishment, we have adhered to our original intention, focused on precision manufacturing, persevered insystematic thought and process innovation,kept pace with the times,continuously innovated in traditional solutions,and beencommitted to providing our customers with complete and perfect comprehensive solutions. After years of forward-lookingdeployment,deep ploughing and intensive cultivation,we have achieved continuousand rapid growth,and gained core competitiveadvantagesin human resources,strategic deployment,technologicalinnovation,quality assurance,customerservice and otherareas.Ourcorecompetenciesarereflected in thefollowing aspects:

1.Talentselection,training,useand retention mechanismsdeeply integrated with corporateculture

The core competenciesofa company willbe ultimately reflected in the softpowerarising fromin-depth integration and mutualnourishment of talents and corporate culture.Core talents are the basis for the sustainable development of a company and thecornerstone forcultivating the talentsrequired by a company.We have adhered to the strategy ofinvigorating the businessthroughtalents,and continuously improved ourtalentechelon building systemand talentpoolmechanism.Wevigorously recruitoutstandingtalents required in our development who recognize and conformto the distinctive characteristics of our corporate culture, tocontinuously augmentourteamofcore talents.On the otherhand,we continuously improve ourtalenttraining systemand talentselection system.Along with the growth of our business,we continuously putforward newand reasonable requirements for ouremployees,encourage themto make selfbreak-through in theboundary oftheircapabilities,and continuously improvetheirpersonalcompetencesand managementcapabilities,to contribute newenergy to ourdevelopment.Underthe nurture ofourcorporate cultureofbeing pragmatic and enterprising,constantly striving forperfection,and fulfilling the missions,we provided the key employeeswith a vastspace to exercise theirtalents,effectively stimulated theirsense ofmission,sense ofachievementand sense ofcollectivehonor. At present, we have recruited outstanding talents in materials, automation, electronic information, molds, businessmanagementand otherfieldsthroughouttheworld,to createatalentpoolforoursustainabledevelopment.

We clearly knowhowto attractand retain talents.To develop a virtuous circle of people creating the environmentand theenvironmentcreating people through in-depth integration oftalentsand corporate culture isourstrongestcore competency.Througheffective talentmechanisms,we have sufficienttalents in ourtraditionalsuperiorfields,and have laid the foundation forourrapiddevelopmentin newareasand scopesofbusiness.

2.Combination offorward-looking deploymentwith R&Dand technologicalinnovation

Our management closely follows up on market trends and developments of the industry,through industrialresearches andinternalseminars,reviews ourdevelopmentsituations,analyzes the boundariesofourbusiness,enhancesthe implementation ofthe“two five-year”strategic plan,and continuously explores the ways of diversified innovations and development.Ourdevelopmenttowards newproducts and newareas is based on multi-dimensionalanalysis ofcustomer demands,competitors,the value we canprovide,the space we can play,profitability and otheraspectsofthe industry and customers,and detailed sand table exercise by ourcore management.With respectto the value thatwe can provide to ourcustomers,in addition to ourvertically integrated one-stopservice capabilities,we also attach greatimportance to mastering the technologies ofand integrating related modules,to minimizerepeated inputofresources,increase the yield rate,and produce a multiplying effect,so asto reduce the overallcostsofcustomersand ensureourreturn on investment.

continuously learned and explored advanced precision manufacturing technologies and productapplications in the countries andregions mastering frontier technologies,and established a number of advanced technology development labs with certain corecustomers,to jointly develop frontier technologies,such as the form-in-place technology,AOIappearance inspection and laserwelding.We have established advanced production technology and manufacturing process R&Dplatforms in Dongguan,Kunshan,Taiwan and theUnited States,and own aR&Dand intelligentmanufacturing teamtaking thelead in theindustry.

OurR&Dexpenses are mainly classified into early stage R&Dexpenses and productupgrading expenses.Early stage R&Dexpenses are incurred in connection with medium-to-long termproduct and business planning and deployment, and compriseinvestmentsin newproductsand newareasand R&Dexpensesrelating to underlying technologies,accounting forabout30%ofourtotalR&Dexpenses.Productupgrading expensesare incurred in the processfromconceptto NPI(newproductintroduction)ofnewsolutions and newproducts.Allearly stage R&Dexpenses and productupgrading expenses are expensed as incurred to reduce thepressure ofassetamortization costs in the future.OurR&Dexpenses have been continuously increasing,and totaled RMB12.636billion in the pastthree years.In thereporting period,ourR&Dexpensestotaled RMB5.745 billion,representing 6.21%ofoperatingrevenue.Asofthe end ofthe reporting period,we owned 2‚139 valid patents.The continuousand steady R&Dinvestmentswillnotonly consolidateourleading position and advantagesin theindustry,butalso enhanceourrisk bearing capability in an ever-changingmacro environment,and lay asolid foundation forourcontinuousand rapid developmentin thefuture.

3.Advanced manufacturing and quality managementsystem

Quality isthe foothold ofa company,and one ofthe mostimportantcore valuesprovided by a company to itscustomers.Sinceourestablishment,we have adopted“quality first”asone ofourcorporate values,established and improved the quality managementsystemusing scientific and effective quality managementapproaches,and integrated quality assurance into the whole process fromdesign,manufacturing to inspection ofproducts.Due to ourexcellentquality assurance capability,we have received praise fromourcustomerscontinuously,and enhanced customeradhesion.

We have a fullsetofadvanced NPI(newproductintroduction)managementprocess,and controlquality fromthe developmentand design ofproducts,to lay a solid basisforsuccessfulmassproduction oftheproducts.In theeach stage ofdevelopmentofa newproduct,such as POC(proofofconcept),Proto (modelverification),EVT(engineering verification test),DVT(design verificationtest),PVT(processverification test)and MP(massproduction),etc.,we take the highestrequirementformassproduction thateachstage should satisfy as the criteria forapprovalofentry into the nextstage.We attach greatimportance to quality precautions,andimplementdesign quality controlsfocusing on quality,cost,manufacturing and automation,to shorten the period fromengineeringdevelopmentto massproduction.

Asa globalleading providerofdiversified componentsolutions,high-quality precision manufacturing hasalways been one ofour core competencies.Since our listing,our precision manufacturing capability has developed from“automation with passivepositioning”to“automation with active positioning”and finally to“full automatic and intelligent”super-precision modularizedmanufacturing today. In the automatic manufacturing of products, we connect product design with the design of automaticmanufacturing process seamlessly,and on the basis of ensuring our process capability atkey work stations takes the lead in theindustry,have introduced visual robots to conduct AOI(automatic optical inspection),to realize active and mutual positioningbetween componentsand fixtures.In addition,we use big data and AItechnologies,in conjunction with ourproprietary algorithms,to feed back real-time measuring and testing data,thereby ensuring the reliable quality assurance and fulltraceability ofproducts,and enabling the automatic production lines to have the deep learning capability,to realize close-end controloverthe automationtechnology.Through the introduction ofintelligentlogisticsand warehousing,we have formally entered into the stage of“intelligentprecision manufacturing”from“precision manufacturing”in the early stage and“quality assured precision manufacturing”in themiddlestage.

4.All-round customer-oriented culture

Since our establishment, we have adhered to the philosophy of“customer first”, and been committed to providing ourcustomerswith complete and perfectcomprehensive solutions,taking into comprehensive consideration response speed,engineeringcooperation, service quality, flexible delivery, cost control and other factors. Our leading technologies and excellent qualityassurance capability have helped usbuild a good brand image and reputation in the industry,and broughthigh-quality customerstous. After years of cultivation, we have established stable cooperation relationships with a lot of global leading brands andmanufacturers in the fields of consumer electronics,communication and automotive.Overthe years,we have keptpace with thestrategic steps made by our majorcustomers,cautiously assessed the developmenttrends ofthe industry fromthe perspective ofbrand customersand end consumers,and madeforward-looking deploymentsto occupy thenewmarketsand newchannels,to ensurethatwe maintain the lead.Think whatcustomersthink and be eagerto help the customersin need.Underthe guidance ofthe servicephilosophy of“customerfirst”,in addition to fulfilling the tasksassigned by the customers,we have also continuously identified thepain pointsofthe customersin theirapplications,given fullplay to ourresource and platformadvantages,and taken the initiative toprovide the customers with optimization proposals and suggestions,to highlightourcompetencies.In addition,the high standardsand strict requirements of our core customers have promoted continuous improvement of our performance in production andmanufacturing,productR&D,internalmanagementand socialresponsibility.

Section IV.Discussion and AnalysisofBusinessSituations

I.Summary

The yearof2020 isa yearin which opportunitiescoexisted with challenges.Though we were greatly affected by many externalfactors, such as the outbreak of COVID-19 throughout the world,deep recession of global economy, increasingly fierce tradefrictions between China and the United States,increasingly complicated globalpolitic environment,challenges fromcompetitorsatthe stage of our rapid development, and fluctuations in foreign exchange rates, we focused on R&Dinvestment, intelligentmanufacturing,systemoptimization and customer service in respectofourmain business,furtherimproved and defined our“twofive-year”strategic plan, actively implemented the strategic plan fromindustrial deployment, talent pooling, technologyaccumulation,corporate governance and other aspects,continuously improved the feasibility of the strategic plan and our corecompetencies,thereby laying asolid foundation forourrapid growth in 2020 and long-termsustainabledevelopmentin thefuture.

During the reporting period,our sales revenues totaled RMB92.501 billion,a 47.96%increase year on year; profit totaledRMB8.136 billion, a 44.37%increase year on year; and net profit attributable to the owners of the parent company totaledRMB7.225 billion,a53.28%increaseyearon year.

II.Analysisofmain business

1. Summary

See“Discussion andAnalysisofBusinessSituations-I.Summary”.

2.Revenueand cost

(1)Componentsofoperating revenue

In RMB

	2020		2019		Y/Y%Change
	Amount	%ofoperatingrevenue	Amount	%ofoperatingrevenue	Y/Y%Change
Totaloperatingrevenue	92,501,259,211.54	100%	62,516,314,588.42	100%	47.96%

Bysegment
Computerconnectivityproductsand precisioncomponents	3,521,361,712.58	3.81%	4,113,230,173.74	6.58%	-14.39%
Automotiveconnectivityproductsand precisioncomponents	2,844,031,362.75	3.07%	2,361,411,620.89	3.78%	20.44%
Communicationconnectivityproducts andprecisioncomponents	2,265,420,000.59	2.45%	2,237,143,681.55	3.58%	1.26%
Consumerelectronics	81,818,160,358.88	88.45%	51,990,381,762.58	83.16%	57.37%
Otherconnectorsandotherbusiness	2,052,285,776.74	2.22%	1,814,147,349.66	2.90%	13.13%

Byproduct
Computerconnectivityproductsand precisioncomponents	3,521,361,712.58	3.81%	4,113,230,173.74	6.58%	-14.39%
Automotiveconnectivityproductsand precisioncomponents	2,844,031,362.75	3.07%	2,361,411,620.89	3.78%	20.44%
Communicationconnectivityproducts andprecisioncomponents	2,265,420,000.59	2.45%	2,237,143,681.55	3.58%	1.26%
Consumerelectronics	81,818,160,358.88	88.45%	51,990,381,762.58	83.16%	57.37%
Otherconnectorsandotherbusiness	2,052,285,776.74	2.22%	1,814,147,349.66	2.90%	13.13%

Byregion
Domesticmarket	7,454,978,348.07	8.06%	5,050,930,778.32	8.08%	47.60%

Overseasmarket	85,046,280,863.47	91.94%	57,465,383,810.10	91.92%	48.00%

(2)Segments,productsorregionsrepresenting morethan 10%ofoperating revenueorprofit

√Applicable□N/A

In RMB

	Operatingrevenue	Operatingcost	Grossmargin	Y/Y%Changeinoperatingrevenue	Y/Y%Changeinoperatingcost	Y/Y%Changeingrossmargin

grossmargin

Bysegment
Computer connectivity productsandprecision components	3,521,361,712.58	2,765,866,774.16	21.45%	-14.39%	-14.63%	0.22%
Automotive connectivity productsandprecision components	2,844,031,362.75	2,374,148,439.75	16.52%	20.44%	20.35%	0.06%
Communication connectivityproductsand precisioncomponents	2,265,420,000.59	1,818,503,189.96	19.73%	1.26%	-1.67%	2.39%
Consumerelectronics	81,818,160,358.88	67,217,502,600.73	17.85%	57.37%	61.60%	-2.15%
Otherconnectorsandother business	2,052,285,776.74	1,593,986,044.98	22.33%	13.13%	13.05%	0.05%

Byproduct
Computer connectivity productsandprecision components	3,521,361,712.58	2,765,866,774.16	21.45%	-14.39%	-14.63%	0.22%
Automotive connectivity productsandprecision components	2,844,031,362.75	2,374,148,439.75	16.52%	20.44%	20.35%	0.06%
Communication connectivityproductsand precisioncomponents	2,265,420,000.59	1,818,503,189.96	19.73%	1.26%	-1.67%	2.39%
Consumerelectronics	81,818,160,358.88	67,217,502,600.73	17.85%	57.37%	61.60%	-2.15%
Otherconnectorsandother business	2,052,285,776.74	1,593,986,044.98	22.33%	13.13%	13.05%	0.05%

Byregion
Domesticmarket	7,454,978,348.07	5,829,458,046.38	21.80%	47.60%	47.93%	-0.18%
Overseasmarket	85,046,280,863.47	69,940,549,003.20	17.76%	48.00%	51.63%	-1.97%

In caseofany adjustmentto thestatisticscaleformain businessdata,themain businessdataofthemostrecentreporting period asadjusted according to thestatisticscaleapplied attheend ofthecurrentreporting period:

□Applicable√N/A

(3)Whether the Company’s revenue fromsales of tangible goods is higher than the revenue fromlaborservice?

√Yes□No

Segment	Item	Unit	2020	2019	Y/Y%Change
Computerconnectivityproductsandprecision components	Salesvolume	KPCS	510,910	622,717	-17.95%
	Output	KPCS	537,997	650,147	-17.25%
	Inventories	KPCS	27,087	27,430	-1.25%
Automotiveconnectivityproductsandprecision components	Salesvolume	1‚000sets	172,912	147,558	17.18%
	Output	1‚000sets	184,502	157,518	17.13%
	Inventories	1‚000sets	11,590	9,960	16.37%

Communicationconnectivityproductsand precisioncomponents	Salesvolume	KPCS	470,565	459,153	2.49%
	Output	KPCS	514,389	500,872	2.70%
	Inventories	KPCS	43,824	41,719	5.05%
Consumerelectronics	Salesvolume	KPCS	3,299,993	2,241,313	47.23%
	Output	KPCS	3,661,402	2,412,810	51.75%
	Inventories	KPCS	361,409	171,497	110.74%
Otherconnectorsandotherbusiness	Salesvolume	KPCS	312,258	287,716	8.53%
	Output	KPCS	348,814	319,340	9.23%
	Inventories	KPCS	36,556	31,624	15.60%

Analysisofchangesin therelevantdataover30%yearon year:

□Applicable√N/A

(4)PerformanceofmaterialsalescontractsoftheCompany asoftheend ofthereporting period

□Applicable√N/A

(5)Componentsofoperating cost

Classification ofsegmentsand products:

In RMB

Segment	Item	2020		2019		Y/Y%Change
Segment	Item	Amount	%ofoperatingcost	Amount	%ofoperatingcost	Y/Y%Change
Computerconnectivityproductsand precisioncomponents		2,765,866,774.16	3.65%	3,239,777,227.31	6.47%	-14.63%
Automotiveconnectivityproducts andprecisioncomponents		2,374,148,439.75	3.13%	1,972,707,309.13	3.94%	20.35%
Communication connectivity productsandprecisioncomponents		1,818,503,189.96	2.40%	1,849,369,458.98	3.69%	-1.67%
Consumerelectronics		67,217,502,600.73	88.72%	41,595,999,770.77	83.08%	61.60%
Otherconnectorsandotherbusiness		1,593,986,044.98	2.10%	1,409,976,187.77	2.82%	13.05%

In RMB

Product	Item	2020		2019		Y/Y%Change
Product	Item	Amount	%ofoperatingcost	Amount	%ofoperatingcost	Y/Y%Change
Computerconnectivityproductsand precisioncomponents		2,765,866,774.16	3.65%	3,239,777,227.31	6.47%	-14.63%
Automotiveconnectivityproducts andprecisioncomponents		2,374,148,439.75	3.13%	1,972,707,309.13	3.94%	20.35%
Communication connectivity productsandprecisioncomponents		1,818,503,189.96	2.40%	1,849,369,458.98	3.69%	-1.67%
Consumerelectronics		67,217,502,600.73	88.72%	41,595,999,770.77	83.08%	61.60%
Otherconnectorsandotherbusiness		1,593,986,044.98	2.10%	1,409,976,187.77	2.82%	13.05%

Analysis:

None.

(6)Changein thescopeofconsolidation during thereporting period

√Yes□No

Eleven newly established or acquired subsidiaries or sub-subsidiaries during the reporting period, namely Suzhou Lanto

ElectronicLimited,LuxsharePrecision Industry (Jiangsu)Co.,Ltd.,LuxshareElectronic(Xingning)Co.,Ltd.,LuxshareLanto (India)Limited,Changshu Luxshare IndustrialInvestmentManagementCo.,Ltd.,Kunshan Luxshare Business ManagementDevelopmentCo.,Ltd.,Kunshan Luxshare BusinessManagementService Partnership (L.P.),Luxshare IntelligentEquipment(Kunshan)Co.,Ltd.Luxshare IntelligentManufacture Technology (Rugao)Co.,Ltd.,Cyber Acoustics,LLC(USA)(acquired by share purchase)andTaiqiao InvestmentCo.,Ltd.,are included in the scope of consolidation.Since we have transferred the shares held in LuxsharePrecision Industry (Xi’an)Ltd.during thereporting period,itisremoved fromthescopeofconsolidation.

(7)Materialchangesor adjustmentsin respectofbusiness,productsor servicesofthe Company during thereporting period

□Applicable√N/A

(8)Majorcustomersand suppliers

MajorcustomersoftheCompany:

Aggregatesalesrevenuefromtop5customers(RMB)	75,879,315,144.78
Proportionofaggregatesalesrevenuefromtop5customerstoannualsalesrevenue	82.03%
Proportionofaggregatesalesrevenuefromrelatedpartiesamongtop5customerstoannualsalesrevenue	0.00%

Particularsoftop 5 customers:

No.	Nameofcustomer	Salesrevenue(RMB)	%ofannualsalesrevenue
1	Customer1	63,842,579,978.12	69.02%
2	Customer2	4,233,870,465.51	4.58%
3	Customer3	3,919,586,381.66	4.24%
4	Customer4	2,499,522,718.90	2.70%
5	Customer5	1,383,755,600.58	1.50%
Total	--	75,879,315,144.78	82.03%

□Applicable√N/A

MajorsuppliersoftheCompany:

Aggregatepurchaseamountfromtop5suppliers(RMB)	28,624,009,739.41
Proportionofaggregatepurchaseamountfromtop5supplierstoannualpurchasecost	39.54%
Proportionofaggregatepurchaseamountfromrelatedpartiesamongtop5supplierstoannualpurchasecost	0.00%

Particularsoftop 5 suppliers:

No.	Nameofsupplier	Purchaseamount(RMB)	%ofannualpurchasecost
1	Supplier1	14,163,172,484.10	19.56%
2	Supplier2	8,330,757,002.45	11.51%
3	Supplier3	2,640,184,299.13	3.65%
4	Supplier4	1,893,165,690.84	2.62%
5	Supplier5	1,596,730,262.89	2.21%
Total	--	28,624,009,739.41	39.54%

Otherinformation ofmajorsuppliers:

□Applicable√N/A

3.Expenses

In RMB

	2020	2019	Y/Y%Change	Reasonofmaterialchanges

Salesexpenses	477,047,875.58	498,274,838.05	-4.26%	Primarilyduetotransferofthefreightoriginallyincludedinthe“salesexpenses”to“costofgoodssold”uponadoptionofthenewrevenueaccountingstandard
Generalexpenses	2,463,953,208.63	1,524,835,061.38	61.59%	Primarilyduetoanincreaseinmanagementpersonnelalongwithourbusinessgrowth
Financialexpenses	904,828,142.89	330,073,445.45	174.13%	Primarilyduetofluctuationsinforeignexchangerates
R&Dexpenses	5,744,805,136.33	4,375,970,646.47	31.28%	PrimarilyduetoinvestmentinnewR&Dprojectsandupgradingofproducts

√Applicable□N/A

We firmly believe thatR&Dand technologicalinnovation are an importantmeans to realize forward-looking deployment,andwilldrive ourdevelopment.Since ourlisting,we have placed R&Dand innovation on an importantposition in ourdevelopment,made continuousinvestmentsin technology R&D,vigorously upgraded traditionalmanufacturing processes,continuously improvedthe level of automatic production, and realized platformization of all precision manufacturing processes. We also attach greatimportance to the long-termdevelopment of underlying materials and innovative production technologies. Our R&Dteamhascontinuously learned and explored advanced precision manufacturing technologies and productapplications in the countries andregions mastering frontier technologies,and established a number of advanced technology development labs with certain corecustomers,to jointly develop frontier technologies,such as the form-in-place technology,AOIappearance inspection and laserwelding.We have established advanced production technology and manufacturing process R&Dplatforms in Dongguan,Kunshan,Taiwan and theUnited States,and own aR&Dand intelligentmanufacturing teamtaking thelead in theindustry.

ParticularsofR&Dexpenses:

	2020	2019	Y/Y%Change
NumberofR&Dpersonnel	15,154	12,809	18.31%
ProportionofR&Dpersonneltototalnumberofemployees	8.79%	9.33%	-0.54%
AmountofR&Dexpenses(RMB)	5,744,805,136.33	4,375,970,646.47	31.28%
ProportionofR&Dexpensestooperatingrevenue	6.21%	7.00%	-0.79%
AmountofR&Dexpensescapitalized(RMB)	0.00	0.00	0.00%
ProportionofcapitalizedR&DexpensestototalR&Dexpenses	0.00%	0.00%	0.00%

Analysisofsignificantchangein theproportion ofR&Dexpensesto operating revenuecompared with 2019:

□Applicable√N/A

Analysisand reasonablenessofsignificantchangein theproportion ofR&Dexpensescapitalized:

□Applicable√N/A

5.Cash flows

In RMB

Item	2020	2019	Y/Y%Change
Cashprovidedbyoperatingactivities	101,344,544,382.43	62,199,885,398.20	62.93%
Cashusedinoperatingactivities	94,471,332,896.38	54,733,897,223.87	72.60%
Newcashflowsfromoperatingactivities	6,873,211,486.05	7,465,988,174.33	-7.94%
Cashprovidedbyinvestmentactivities	56,134,501,620.87	80,442,800,512.34	-30.22%
Cashusedininvestmentactivities	65,282,235,798.95	86,740,415,996.54	-24.74%
Newcashflowsfrominvestmentactivities	-9,147,734,178.08	-6,297,615,484.20	45.26%
Cashprovidedbyfinancingactivities	31,843,182,893.74	22,531,435,875.30	41.33%
Cashusedinfinancingactivities	25,056,689,251.71	21,459,077,099.60	16.76%
Newcashflowsfromfinancingactivities	6,786,493,642.03	1,072,358,775.70	532.86%
Netincreaseincashandcashequivalents	4,317,464,527.08	2,337,819,815.93	84.68%

Analysisofmain causesofmaterialchangesin therelated data:

√Applicable□N/A

1.The cash provided by operating activitiesincreased by 62.93%yearon year,primarily due to an increase in customerorders,andthetax rebatesand governmentgrantsreceived;

2.The cash used in operating activitiesincreased by 72.6%yearon year,primarily due to an increase in inventory storage levelandemployeebenefitspayablealong with ourbusinessgrowth;

3.The cash provided by investmentactivities decreased by 30.22%yearon year,primarily due to a decrease in cash provided byforward exchangehedging and wealth managementproducts;

4.The cash used in investmentactivities decreased by 24.74%year on year,primarily due to a decrease in investmentin wealthmanagementproducts;

5.Thecash provided by financing activitiesincreased by 41.33%yearon year,primarily dueto an increasein borrowings;

6.The cash used in financing activities increased by 16.76%yearon year,primarily due to an increase in repaymentofloans andinterestexpenses.

Analysis of significantdifference between netcash flows fromoperating activities during the reporting period and netprofitincurrentyear:

□Applicable√N/A

III.Analysisofnon-main business

√Applicable□N/A

In RMB

	Amount	%oftotalprofit	Reason	Whetherornotsustainable
Investmentincome	648,357,066.36	7.97%	Revenuefrominvestmentsandwealthmanagementproductsclassifiedasfinancialassetsatfairvaluethroughprofitorloss	No
Gainorlossonchangesinfair value	329,044,852.43	4.04%	Revenuefrominvestmentsclassifiedasfinancialassetsatfairvaluethroughprofitorloss	No
Impairmentlossonassets	-139,288,911.05	-1.71%	Allowanceforimpairmentofinventoriesand	No

			fixedassets
Non-operatingincome	21,932,288.24	0.27%	Revenuefromretirementofassets	No
Non-operatingexpenses	53,956,792.78	0.66%	Lossondisposaloffixedassets	No
Gainondisposalofassets	-2,309,694.02	-0.03%	Disposalofproductionequipment	No
Othergains	450,748,795.89	5.54%	Governmentgrantsrelatedtoincome	No
Creditloss	-8,590,000.67	-0.11%	Impairmentlossonaccountsreceivableandotherreceivables	No

1.Materialchangesin componentsofassets

SinceJanuary 1,2020,weinitially adopted thenewrevenueaccounting standard orthenewleaseaccounting standard and adjustedthebeginning balancesofrelated financialstatementitems.

Applicable

In RMB

	December31,2020		January1,2020		Y/Y%Change	Reasonofmaterialchange
	Amount	%oftotalassets	Amount	%oftotalassets	Y/Y%Change	Reasonofmaterialchange
Cash and bank balances	10,528,245,765.93	15.04%	6,180,466,259.01	12.52%	2.52%
Accountsreceivable	13,839,155,340.47	19.77%	13,243,625,572.22	26.82%	-7.05%	Primarilyduetoanincreaseinthe accounts receivablerecoveredduetooptimizationofcredittermstocustomers
Inventories	13,211,009,381.15	18.87%	7,700,857,888.16	15.60%	3.27%	Primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth
Investmentproperties	47,592,110.24	0.07%	52,656,477.74	0.11%	-0.04%
Long-term equity investment	1,208,540,333.29	1.73%	303,050,580.10	0.61%	1.12%	Primarilyduetoanincreaseininvestmentinassociates
Fixedassets	19,761,012,854.95	28.22%	13,707,298,535.36	27.76%	0.46%	Primarilyduetotransferoffactorybuildinganddormitoryconstruction projects ofsubsidiariestofixedassetsandanincreaseininvestmentinequipment
Construction in progress	1,596,064,894.58	2.28%	865,549,438.56	1.75%	0.53%	Primarilyduetoanincreaseinnewfactorybuildinganddormitoryconstructionprojectsofsubsidiariesandequipmentthathasnotyetbeenaccepted
Short-termborrowings	7,577,068,798.49	10.82%	4,166,302,223.17	8.44%	2.38%	Primarilyduetoanincreaseinborrowings
Long-termloans	1,495,199,238.41	2.14%	1,562,908,824.30	3.17%	-1.03%
Advancestosuppliers	183,886,937.70	0.26%	212,018,611.91	0.43%	-0.17%	Primarily consisting ofacquisitionofmoldsandfixturesandpaymentofsecuritydeposit
Otherreceivables	407,990,780.79	0.58%	338,237,923.96	0.68%	-0.10%	Primarilyduetoanincreaseinadvancesforcustomers
Othercurrentassets	1,804,485,645.49	2.58%	1,484,451,151.73	3.01%	-0.43%	Primarilyduetoanincreaseinprepaidincometaxand

						deductibleinputtax
Long-termdeferred expenses	488,087,044.97	0.70%	352,042,451.40	0.71%	-0.01%	Primarilyconsistingofroutinerenovationexpensesoffactorybuildingsandworkshops
Othernon-current assets	1,223,199,642.61	1.75%	1,432,566,528.37	2.90%	-1.15%	Primarily consisting ofequipment,projectandlandcostsprepaid
Notespayable	128,572,111.54	0.18%	206,496,660.20	0.42%	-0.24%	Primarilyduetoadecreaseinnotetransactions
Accountspayable	23,051,557,603.83	32.92%	17,268,223,180.16	34.97%	-2.05%	Primarilyduetoanincreaseininventorystoragelevelalongwithourbusinessgrowth
Otherpayables	146,162,097.14	0.21%	352,390,271.77	0.71%	-0.50%
Othercurrent liabilities	623,257,555.89	0.89%	646,115,152.49	1.31%	-0.42%	Issuanceofshort-termbonds
Deferredincome	425,345,982.64	0.61%	256,059,554.91	0.52%	0.09%	Primarilyduetoanincreaseingovernmentgrantsascapitalcontribution
Deferredtaxliabilities	966,092,212.95	1.38%	598,184,393.00	1.21%	0.17%

□Applicable√N/A

3.Encumbranceson assetsasoftheend ofthereporting period

Asofthe end ofthereporting period,ourmain assetsare free and clearofany sequestration,attachment,freeze,mortgage orpledge,orany condition forand prohibition on liquidation,and could beused to setoffliabilities.

V.Analysisofinvestments

1.Overallsituation

√Applicable□N/A

Amountofinvestmentin2020(RMB)	Amountofinvestmentin2019(RMB)	Y/Y%Change
3,122,574,000.00	1,302,756,044.42	139.69%

2.Majorequity investmentsacquired in thereporting period

√Applicable□N/A

In RMB

Investee	Mainbusiness	Methodofinvestment	Amountofinvestment	Shareholdingpercentage	Sourceoffunds	Partner	Termofinvestment	Producttype	Statusasofthebalancesheetdate	Expectedincome	Investmentincome/lossinthereportingperiod	Whetherornotinvolvedinanylitigation	Dateofdisclosure(ifany)	Reference(ifany)
Luxshare Changshu	Businesssubjecttolicensing:importandexportofgoods;importandexportoftechnologies.Businessnotsubjecttolicensing:manufacturingofelectroniccomponentsandelectro-mechanicalcomponents;salesofelectroniccomponentsandelectro-mechanicalcomponents;salesofpower electroniccomponents;manufacturingofwearablesmartequipment;salesofwearablesmartequipment;manufacturing ofcommunicationequipment;salesofcommunicationequipment;manufacturingof opto-electroniccomponents;salesofopto-electroniccomponents;manufacturingofspecialrubber processingequipment;salesofspecial	Capitalinjection	615,000,000.00	100.00%	Self-ownedfunds	N/A	Long-term	Electroniccomponents	Paidinfull	0.00	0.00	No	April21,2020	AnnouncementNo.2020-028

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	rubber processingequipment;manufacturingofcomputersoftware,hardwareandperipherals;technical services,technologydevelopment,technical consulting,technical exchanges,technologytransferandtechnologypromotion;leaseofnon-residentialproperties.
Lanto Kunshan	Computer peripherals,connectionlinesandconnectors; new-typeelectronic components(electronic devices),instruments andaccessories forcommunicationandITpurpose,plastic,rubberandhardwareproducts;research,development,productionandsalesofspecial electronicequipment, testinginstruments,tools,molds,remotecontroldynamicmodelsandrelatedsuppliesandcomponents;productionandsalesofpowersupplyunitsandwireless transmissionproducts;developmentofsoftware;importandexportofgoodsandtechnology(exceptany	Capitalinjection	1‚100,000,000.00	100.00%	Offeringproceeds	N/A	Long-term	Smartmobileterminalmodules	Paidinfull	0.00	0.00	No	December3,2020	AnnouncementNo.2020-101

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	businessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations)(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities).Businessnotsubjecttolicensing:manufacturingofautomotivecomponentsandaccessories;researchanddevelopmentofautomotivecomponents;wholesaleofautomotivecomponents andaccessories;salesofmechanicalpartsandcomponents;manufacturing ofopto-electroniccomponents;salesofopto-electroniccomponents;researchanddevelopmentofspecialelectronic materials;researchanddevelopmentofhouseholdappliances.
Luxshare Kunshan	Development andproduction ofopto-electronicswitches,smartsensors,new-typeinstrumentcomponents,opto-electronicdevices,ITand communication	Capitalinjection	600,000,000.00	100.00%	Offeringproceeds	N/A	Long-term	Smartwearableequipmentcomponents	Paidinfull	0.00	0.00	No	December3,2020	AnnouncementNo.2020-101

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	productsandconnectors,keyboards,keys,casings,new-typesiliconrubberelectroniccomponents,precisioncavitymolds,stamping molds,connectionlinesandstereosystems;processingofwatchbands;salesofself-madeproductsandprovisionofafter-saleservicesinrespectofself-madeproducts;importandexportofgoodsandtechnologies(exceptanybusinessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations). Businesssubjecttolicensing:productionofClassIImedical devices;productionofClassIIImedicaldevices;operationofClassIIImedicaldevices(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities,andonlythebusinessapprovedmaybeoperated);salesofClassIImedical devices;manufacturingofhardware

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	products;manufacturingofmetal fittings forconstruction purpose;manufacturingofmolds;manufacturingofsmartwearableequipment;salesof smart wearableequipment(exceptanybusinesssubjecttoapprovalaccordingtolaw,allbusinessessetforthinthebusinesslicensemaybeoperatedaccordingtolaw);ClassIIvalue-addedtelecommunicationsbusiness(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities,andonlythebusinessapprovedmaybeoperated).Businessnotsubjecttolicensing:productionofClassImedicaldevices;salesofClassImedicaldevices;manufacturingofspecialelectronicequipment;salesofspecialelectronicequipment;developmentofsoftware;salesofsoftware; sales ofelectronic products;manufacturingofindustrialrobots;salesofindustrialrobots;manufacturingof

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	integratedcircuitchipsandproducts; sales ofintegratedcircuitchipsandproducts;manufacturingofsmarthomedevices;salesofsmarthomedevices;technical services,technologydevelopment,technical consulting,technical exchanges,technologytransferandtechnologypromotion;technologypromotionandapplicationservices;dataprocessingandstoragesupport services;informationtechnologyconsultingservices.
Total	--	--	2‚315,000,000.00	--	--	--	--	--	--	0.00	0.00	--	--	--

3.Majornon-equity investmentsthathavenotyetbeen completed in thereporting period

□Applicable√N/A

4.Investmentin financialassets

(1)Investmentin securities

√Applicable□N/A

In RMB

Typeofsecurity	Securitycode	Shortname	Initialinvestmentcost	Methodofmeasurement	Beginningcarryingamount	Gainorlossonchangesinfairvalueinthereportingperiod	Aggregatechangesinfairvaluerecordedinequity	Amountacquiredinthereportingperiod	Amountsoldinthereportingperiod	Gainorlossinthereportingperiod	Endingcarryingamount	Accountingitem	Sourceoffunds
Stocklistedon domesticor overseasmarket	603595	TonyElectronic	22,500,000.00	Fairvalue	170,733,150.00	-26,855,115.76	80,625,922.54	0.00	29,656,715.20	-21,944,054.56	114,221,319.04	Investmentinotherequityinstruments	Self-ownedfunds

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

Total	22,500,000.00	--	170,733,150.00	-26,855,115.76	80,625,922.54	0.00	29,656,715.20	-21,944,054.56	114,221,319.04
Disclosuredateoftheannouncementoftheboard ofdirectorsapprovingtheinvestmentinsecurities
Disclosuredateoftheannouncementofthe shareholders’meetingapprovingtheinvestmentin securities(ifany)

√Applicable□N/A

In RMB0’000

Counterparty	Affiliation	Whetherornotarelated-partytransaction	Typeofderivative	Initialinvestmentcost	Dateofcommencement	Dateoftermination	Beginningbalance	Amountacquiredinthereportingperiod	Amountsoldinthereportingperiod	Endingbalance	Ratioofendingbalancetothenetassetasattheendofthereportingperiod	Actualgainorlossinthereportingperiod
Bank	Non-affiliate	No	Forwardexchangecontract	2,263,77.69			226,377.69	1,363,352.75	1,541,185.19	48,545.26	1.73%	22,221.35
Bank	Non-affiliate	No	Foreignexchangeoption	1,203,39.45			120,339.45	1,623,068.88	1,279,487.94	463,920.39	16.51%	28,584.2
Total				3,467,17.14	--	--	346,717.14	2,986,421.63	2,820,673.13	512,465.65	18.24%	50,805.55
Sourceoffunds				Self-ownedfunds
Whetherornotinvolvedinanylitigation				N/A
Disclosuredateoftheannouncementoftheboardof directorsapprovingtheinvestmentinderivatives(ifany)				August20,2019
				April20,2020
Disclosuredateoftheannouncementoftheshareholders’ meetingapprovingtheinvestmentinderivatives(ifany)				May13,2020
Analysisofrisksassociatedwiththederivativesheldinthe reportingperiod(includingwithoutlimitationmarketrisk, liquidityrisk,creditrisk,operationalriskandlegalrisk)and relatedriskcontrolmeasures				,1.Weconductforeignexchangederivativetransactionsforthepurposeoffixingcosts,andavoidingandpreventingforeignexchangeandinterestraterisks,andprohibitanyspeculation.2.Wehaveestablishedstrictbusinessmanagementpolicyregardingfinancialderivativetransactions,whichcontainexplicitprovisionsontheprincipleofoperationapprovingpower,internaloperatingprocess,informationsegregationmeasures,internalriskcontrols,informationdisclosureandotherissuesrelatingtofinanciaderivativetransactions,tocontroltherisksassociatedwithsuchtransactions.3.Wecarefullyexaminethetermsofcontractsenteredintowiththerelevantbanks,andstrictlyimplementtheriskmanagementpolicytopreventlegalrisks.

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	4.OurFinanceDepartmentcontinuouslyfollowsuponthechangesinthemarketpriceorfairvalueoftherelevantforeignexchangederivatives,promptlyassessesthechangesinriskexposuresofsuchforeignexchangederivatives,reportstothemanagementonaregularbasis,promptlyreportstheabnormalsituationsdiscovered,callsattentiontotherelevantrisks,andtakestheappropriateemergencymeasures.5.Inordertopreventanydelayinthedeliveryofforwardexchangecontracts,weattachgreatimportancetothemanagementofaccountsreceivable,andhaveestablishedsafetymanagementmeasurestopreventanydelayinthepaymentofaccountsreceivable.6.OurInternalAuditDepartmentisresponsibleforsupervisingandauditingthedecision-making,management,executionandotherissuesinrespectofforeignexchangederivativetransactions.
Changesinthemarketpriceorfairvalueofthederivatives heldinthereportingperiod(intheanalysisofthefairvalue ofderivatives,thespecificapproaches,assumptionsand parametersusedshallbedisclosed)	ChangeinthefairvalueofaforeignexchangederivativeisthedifferencebetweenitsfairmarketpriceinthemonthinwhichthedeliverydatedeterminedbytheCompanyfallsanditscontractprice.
Whetherthere’sanymaterialchangeintheaccounting policiesandaccountingprinciplesforthemeasurementof derivativesinthereportingperiodascomparedwiththe precedingreportingperiod	Nomaterialchange
Specialopinionissuedbytheindependentdirectors regardingtheCompany’sinvestmentinderivativesand relatedriskcontrolmeasures	WeconductforeignexchangederivativetransactionsforthepurposeofavoidingforeignexchangeriskarisingfromfluctuationsintheforeignexchangeratesofRMBandeffectivelycontrollingtheuncertaintiesofcostscausedbyforeignexchangerisk.WehaveestablishedtheBusinessManagementPolicyRegardingFinanciaDerivativeTransactions,toenhanceriskmanagementandcontroloverforeignexchangederivativetransactions.Inaddition,weonlyprovideself-ownedfunds,ratherthananyofferingproceeds,asdepositforderivativetransactions.Thereview,votingandotherproceduresrelatingtosuchtransactionshavecompliedwiththeCompanyLawtheAOAandotherapplicableregulations.

√Applicable□N/A

(1)Description ofuseofoffering proceeds

√Applicable□N/A

In RMB0’000

Yearofoffering	Methodofoffering	Totalofferingproceeds	Totalamountofofferingproceedsusedinthereportingperiod	Aggregateamountofofferingproceedsthathasbeenused	Totalamountofofferingproceedswhosepurposewaschangedinthereportingperiod	Aggregateamountofofferingproceedswhosepurposehasbeenchanged	Percentageofofferingproceedswhosepurposehasbeenchanged	Totalamountofunusedofferingproceeds	Purposeandwhereaboutsofunusedofferingproceeds	Totalamountofofferingproceedsthathasremainedunusedformorethantwoyears
2020	Publicofferingofconvertiblecorporatebonds	300‚000	274‚402.76	274‚402.76	0	0	0.00%	24‚412.95	Tocontinuetobeusedintheinvestmentprojectsforwhichthefundswereraised	0

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

Total	--	300‚000	274‚402.76	274‚402.76	0	0	0.00%	24‚412.95	--	0

Descriptionofuseofofferingproceeds

PursuanttotheReplyonApprovalofPublicOfferingofConvertibleCorporateBondsbyLuxsharePrecisionIndustryCo.,Ltd.fromtheChinaSecuritiesRegulatoryCommission,wepubliclyissued30‚000‚000convertible corporatebondsofparvalueofRMB100.00each,andraisedRMB3‚000‚000‚000.00intotal.AfterdeductionoftheunderwriterfeeandsponsorfeeofRMB14,400,000.00(inclusiveoftax)paidtoourunderwriter,CITICSecurities Co.,Ltd.,thetotalsubscriptionamountreceivedwasRMB2‚985‚600‚000.00,andafterdeductionoflegalfee,auditandcapitalverificationfee,creditratingfee,informationdisclosureandothercosts,thenetproceedsfromthis offeringwereRMB2‚984‚743‚424.52. WehavealreadyinvestedRMB2‚001‚653‚153.13ofself-raisedfundsintheprojectsforwhichthispublicofferingwasmadepriortothecompletionthereof,asverifiedbyBDOChinaShuLunPanCertifiedPublicAccountantsLLP initsReportXinKuaiShiBaoZi[2020]No.ZB11783datedDecember1,2020.OnDecember2,2020,the27thmeetingofthe4thBoardofDirectorsreviewedandadoptedtheProposalonReplacementoftheSelf-raisedFunds InvestedinAdvancewiththeOfferingProceeds,approvingthereplacementoftheself-raisedfundsinvestedintherelevantprojectswiththeofferingproceeds. Asoftheendofthereportingperiod,RMB2‚744‚027‚590.66oftheofferingproceedshavebeenused,andtheremainingRMB244‚129‚528.55willcontinuetobeusedintheinvestmentprojectsforwhichthefundswereraised.

We have already invested RMB2‚001‚653‚153.13 ofself-raised fundsin the projectsforwhich thispublic offering wasmade priorto the completion thereof,asverified by BDOChina Shu Lun Pan Certified PublicAccountantsLLPin its ReportXin KuaiShiBao Zi[2020]No.ZB11783 dated December1,2020.On December2,2020,the 27th meeting ofthe 4th Board ofDirectorsreviewed and adopted the Proposalon Replacementofthe Self-raised FundsInvested in Advancewith theOffering Proceeds,approving thereplacementoftheself-raised fundsinvested in therelevantprojectswith theoffering proceeds.

Asofthe end ofthereporting period,RMB2‚744‚027‚590.66 oftheoffering proceedshavebeen used,and theremaining RMB244‚129‚528.55 willcontinueto beused in theinvestmentprojectsforwhich thefundswere raised.

(2)Projectsin which theoffering proceedswereproposed to beinvested

√Applicable□N/A

In RMB0’000

Committedinvestmentprojectanduseofover-raisedfunds	Whethertheprojecthasbeenchangedorpartiallychanged	Totalcommittedinvestmentamount	Totalinvestmentamountasadjusted(1)	Amountinvestedinthereportingperiod	Aggregateamountalreadyinvestedasoftheendofthereportingperiod(2)	Progressofinvestmentasoftheendofthereportingperiod(3)=(2)/(1)	Datethattheprojectisreadyforitsintendeduse	Profitearnedinthereportingperiod	Whethertheprojecthasproducedthedesiredresult	Whetherthere’sanysignificantchangeinthefeasibilityoftheproject
Committedinvestmentproject
Smartmobileterminalmoduleproduction lineupgradingandexpansionproject	No	110,000	110,000	85,895.31	85,895.31	78.09%	March1,2021		N/A	No
Smartwearableequipmentcomponents productionlineupgradingandexpansion project	No	60,000	60,000	60,006.53	60,006.53	100.01%	May1,2021	24,284.19	Yes	No
Newsmartwearableequipmentproject withanannualproductioncapacityof4 millionsets	No	60,000	60,000	60,026.57	60,026.57	100.04%	August1,2020	28,149.55	Yes	No
Replenishmentofworkingcapital	No	70,000	70,000	68,474.34	68,474.34	97.82%			N/A	No
Subtotal	-	300,000	300,000	274,402.75	274,402.75	-	-	52,433.74	-	-
Useofover-raisedfunds
N/A
Total	-	300,000	300,000	274,402.75	274,402.75	-	-	52,433.74	-	-
Failuretomeetthescheduledprogressand producethedesiredresultandreason	None

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

thereof(pleasedescribeonaprojectby projectbasis)
Reasonofsignificantchangeinthe feasibilityoftheproject	None
Amountanduseofover-raisedfundsand progressofusethereof	N/A
Amountanduseofover-raisedfundsand progressofusethereof
Changeintheplaceoftheprojectinwhich theofferingproceedswereproposedtobe invested	N/A


Adjustmentofthemethodof implementationoftheprojectinwhichthe offeringproceedswereproposedtobe invested	N/A


Fundsalreadyinvestedintheprojectin whichtheofferingproceedswere proposedtobeusedandreplacement thereof	Applicable
	WehavealreadyinvestedRMB2‚001‚653‚153.13ofself-raisedfundsintheprojectsforwhichthepublicofferingofconvertiblecorporatebondswasmadein2020priortothecompletionthereof,asverifiedbyBDOChinaShuLunPanCertifiedPublicAccountantsLLPinitsReportXinKuaiShiBaoZi[2020]No.ZB11783datedDecember1,2020.
Temporaryreplenishmentofworking capitalwiththeunusedofferingproceeds	N/A

Amountofunusedofferingproceedsand reasonthereof	Applicable
Amountofunusedofferingproceedsand reasonthereof	AsofDecember31,2020,theamountofunusedofferingproceedswasRMB244‚129‚528.55,becausetheprojectsforwhichthefundswereraisedhavenotyetbeencompleted.
Purposeandwhereaboutsofunused offeringproceeds	AsofDecember31,2020,theamountofunusedofferingproceedswasRMB244‚129‚528.55,whichwillcontinuetobeusedintheinvestmentprojectsforwhichthefundswereraised.
Problemsandothermattersexistinginthe useanddiscloseofofferingproceeds	None

□Applicable√N/A

There’sno changein theprojectsin which theoffering proceedswereproposed to beinvested during thereporting period.

VI.Salesofmaterialassetsand equities

1.Salesofmaterialassets

□Applicable√N/A

No materialassethasbeen sold during thereporting period.

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

2.Salesofmaterialequities

□Applicable√N/A

VII.Analysisofmajorsubsidiariesand associates

√Applicable□N/A

Majorsubsidiariesand associatesrepresenting morethan 10%ofthenetprofitoftheCompany:

In RMB

Companyname	Type	Mainbusiness	Registeredcapital	Totalassets	Netassets	Operatingrevenue	Operatingprofit	Netprofit
Luxshare Precision	Subsidiary	Purchaseandsalesofelectronicproducts,datalines,connectionlines,connectors,computerandperipherals,plasticandhardwareproducts.	,USD5,000,000	32,284,326,513.88	2,323,353,125.61	109,759,456,057.38	1,615,400,931.36	1,609,358,980.43
ICT-Lanto	Subsidiary	SalesandservicesinrespectofinternalandexternalconnectionlinesforIT,communicationandconsumerelectronicapplications,andprecisionconnectors.	USD83‚290‚323	19,811,980,244.41	2,295,968,956.16	18,661,017,270.17	723,565,414.13	623,838,824.25
Luxshare Chuzhou	Subsidiary	Productionandsalesofconnectorsandconnectionlinesforcomputers,mobilephones,videogameplayerandTVsets,componentsandaccessoriesofcommunicationelectronicproducts(includingelectroplating);importandexportofgoodsandtechnologiesproducedorownedbythecompanyorothers.	RMB758,000,000	4,150,155,423.19	1,278,729,481.97	6,784,222,671.10	472,207,421.00	419,408,183.61
Luxshare Suzhou	Subsidiary	Production,research,development,salesandafter-saleserviceinrespectofelectroniccomponents,communicationequipment,computerequipmentandaccessories,moldsandsmartequipment;salesofelectro-mechanicalequipment,mechanicalequipment,electricequipment,testingequipment,automaticequipmentandaccessories,molds,plasticproducts,metalproductsandfixtures;importandexportofgoodsandtechnologiesproducedorownedbythecompanyorothers;computersoftwaretechnologydevelopmentandtechnicalservice.	RMB130,000,000	4,333,258,665.17	150,418,237.90	5,054,378,359.97	34,721,128.06	35,446,246.97
Luxshare Electronic Kunshan	Subsidiary	Developmentandproductionofopto-electronicswitches,smartsensors,new-typeinstrumentcomponents,opto-electronicdevices,ITandcommunicationproductsandconnectors,keyboards,keys,casings,new-typesiliconrubberelectroniccomponents,precisioncavitymolds,stampingmolds,connectionlinesandstereosystems;processingofwatchbands;salesofself-madeproductsandprovisionofafter-saleservicesinrespectofself-madeproducts;importand	RMB2‚200‚000‚000	12,001,133,317.33	3,481,250,205.24	16,150,294,698.99	508,925,982.59	471,294,537.90

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

		exportofgoodsandtechnologies(exceptanybusinessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations).Businesssubjecttolicensing:productionofClassIImedicaldevices;productionofClassIIImedicaldevices;operationofClassIIImedicaldevices(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities,andonlythebusinessapprovedmaybeoperated);salesofClassIImedicaldevices;manufacturingofhardwareproducts;manufacturingofmetalfittingsforconstructionpurpose;manufacturingofmolds;manufacturingofsmartwearableequipment;salesofsmartwearableequipment(exceptanybusinesssubjecttoapprovalaccordingtolaw,allbusinessessetforthinthebusinesslicensemaybeoperatedaccordingtolaw);ClassIIvalue-addedtelecommunicationsbusiness(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities,andonlythebusinessapprovedmaybeoperated).Businessnotsubjecttolicensing:productionofClassImedicaldevices;salesofClassImedicaldevices;manufacturingofspecialelectronicequipment;salesofspecialelectronicequipment;developmentofsoftware;salesofsoftware;salesofelectronicproducts;manufacturingofindustrialrobots;salesofindustrialrobots;manufacturingofintegratedcircuitchipsandproducts;salesofintegratedcircuitchipsandproducts;manufacturingofsmarthomedevices;salesofsmarthomedevices;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransferandtechnologypromotion;technologypromotionandapplicationservices;dataprocessingandstoragesupportservices;informationtechnologyconsultingservices.
XiexunWan’an	Subsidiary	Productionandsalesofcomputerplugs,socketsconnectionlines,connectorsandperipherals,andprecisionmolds;importandexport;leaseofpersonalproperties,leaseofrealproperties.	RMB40,000,000	91,606,422.79	55,793,778.37	110,551,627.34	17,102,734.80	13,432,097.44
Intelligent Manufacture Jiangxi	Subsidiary	Businesssubjecttolicensing:importandexportofgoods;labordispatchagency.Businessnotsubjecttolicensing:productionofelectronicproducts;productionandsalesofmolds;engineeringandtechnologicalresearchandtestdevelopment;leaseofmachineryandequipment;leaseofhousing.	RMB1,000,000,000	12,402,377,058.98	3,873,240,094.92	30,782,037,561.69	1,817,153,947.59	1,601,025,929.37
XiexunJi’an	Subsidiary	Productionandsalesofcomputerplugs,sockets,connectionlines,	RMB114,718,979.44	1,033,316,723.64	605,537,980.23	1,555,954,367.44	212,026,774.51	184,486,502.75

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

		connectorsandperipherals,precisionmolds,equipmentandcomponents,robotandprecisionmetalmolds,automaticequipment,metalfixturecomponents,andelectro-mechanicalequipment,processingofprecisionmachinery;leaseofpersonalproperties(equipmentonly),leaseofrealproperties;importandexport;medicalappliances,medicalequipment,personalprotectiveequipment,digitalelectronicsandnon-medicalmasks.
Shenzhen Luxshare Acoustics TechnologyLtd.	Subsidiary	Research,developmentandsalesofacousticequipment,connectionlines,connectors,electronicproductcomponents,plasticandhardwareproducts,moldsandantennas;domestictrade,importandexportofgoodsandtechnologies.Businesssubjecttolicensing:productionofacousticequipment,connectionlines,connectors,electronicproductcomponents,plasticandhardwareproducts,moldsandantennas.	RMB28,000,000	372,042,543.42	111,677,229.66	503,359,153.19	59,055,768.54	57,351,041.51
ASAPJiangxi	Subsidiary	Design,productionandsalesofelectricwiresandcables,plasticpellets,plasticandhardwareproducts,precisionmolds,digitalelectronicandelectronicITproductsystemassembly,high/lowfrequencydatatransmissionlines,connectors,computerperipherals,new-typeelectroniccomponents,dataandsignaltransmissionproducts,medicalappliances,medicalsupplies,smarthomeproducts;importandexport;leaseofrealproperties,leaseandsalesoftangiblepersonalproperties.	,RMB100,924,134	2,576,102,683.61	1,151,641,604.13	3,754,815,702.92	329,181,986.13	289,120,853.13
Luxshare Kunshan	Subsidiary	Production,processing,sale,developmentandtechnicalservicesinrespectofconnectionlines,connectors,computerperipherals,plasticandhardwareproducts,electroniccomponents,electronicproducts,autopartsandmolds;generalroadfreighttransport;importandexportofgoodsandtechnologies.Businessnotsubjecttolicensing:manufacturingofpowertransmission,distributionandcontrolequipment.	RMB508,000,000	1,810,081,314.95	872,544,352.85	1,964,407,964.66	150,975,911.60	143,239,129.03
Luxshare Intelligent Manufacture	Subsidiary	Production,research,development,salesandafter-saleserviceinrespectofelectroniccomponents,communicationequipment,computerequipmentandaccessories,moldsandsmartequipment;importandexportofgoodsandtechnologiesproducedorownedbythecompanyorothers;computersoftwaretechnologydevelopmentandtechnicalservice.	RMB730‚000‚000	9,000,069,089.29	791,362,285.74	14,710,254,860.43	213,745,484.21	219,849,726.77
LantoKunshan	Subsidiary	Computerperipherals,connectionlinesandconnectors;new-typeelectroniccomponents(electronicdevices),instrumentsand	RMB2‚320‚000‚000	14,619,086,843.05	6,894,362,002.01	17,722,033,259.25	1,759,503,741.45	1,573,288,589.26

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

		accessoriesforcommunicationandITpurpose,plastic,rubberandhardwareproducts;research,development,productionandsalesofspecialelectronicequipment,testinginstruments,tools,molds,remotecontroldynamicmodelsandrelatedsuppliesandcomponents;productionandsalesofpowersupplyunitsandwirelesstransmissionproducts;developmentofsoftware;importandexportofgoodsandtechnology(exceptanybusinessthatissubjecttolicensing,restrictedorprohibitedpursuanttotheapplicablelawsandadministrativeregulations)(anybusinesssubjecttoapprovalaccordingtolawmayonlybeoperatedwiththeapprovalofthecompetentauthorities).Businessnotsubjecttolicensing:manufacturingofautomotivecomponentsandaccessories;researchanddevelopmentofautomotivecomponents;wholesaleofautomotivecomponentsandaccessories;salesofmechanicalpartsandcomponents;manufacturingofopto-electroniccomponents;salesofopto-electroniccomponents;researchanddevelopmentofspecialelectronicmaterials;researchanddevelopmentofhouseholdappliances.
Luxshare Automation Jiangsu	Subsidiary	Productionandsalesofrobots,precisionmetalmolds,automaticequipment,componentsofmetalfixturesandelectro-mechanicalequipment;processingofprecisionmachinery;importandexportofgoodsandtechnologiesproducedorownedbythecompany.	RMB30,000,000	658,138,687.34	323,667,889.00	766,700,321.47	86,580,029.79	82,205,745.40

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

Subsidiariesacquired and disposed ofduring thereporting period:

√Applicable□N/A

Companyname	Methodofacquisitionordisposalofsubsidiaryduringthereportingperiod	Effectontheproduction,operationandresultsoftheCompanytakenasawhole
SuzhouLantoElectronicLimited	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionIndustry(Jiangsu)Co., Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
Luxshare-ICT(Vietnam)Limited	Purchaseofpartofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareElectronic(Xingning)Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareLanto(India)Limited	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
ChangshuLuxshareIndustrialInvestment ManagementCo.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
KunshanLuxshareBusinessManagement DevelopmentCo.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionAssemblies(Suzhou) Co.,Ltd.	Purchaseofpartofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
ChangshuLizhenIntelligentManufacture TechnologyPartnership(L.P.)	Purchaseofpartofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
KunshanLuxshareBusinessManagement ServicePartnership(L.P.)	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareIntelligentManufacture Technology(Rugao)Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxshareIntelligentEquipment(Kunshan) Co.,Ltd.	Newlyestablished	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
DongguanLuxshareTechnologyLimited QingxiBranch	Deregistered	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionIndustry(Xingning) Co.,Ltd.HuafengBranch	Deregistered	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
CyberAcoustics,LLC(USA)	Purchaseofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
TaiqiaoInvestmentCo.,Ltd.	Purchaseofshares	Nosignificanteffectontheproduction,operationandresultsoftheCompanytakenasawhole
LuxsharePrecisionIndustry(Xi’an)Co.,	Salesofshares	Nosignificanteffectontheproduction,

Ltd.		operationandresultsoftheCompanytakenasawhole

Particularsofmajorcontrolled subsidiariesand associates:

VIII.Structured entitiescontrolled by theCompany

□Applicable√N/A

IX.ProspectsforfuturedevelopmentoftheCompany

1.Situationsoftheindustry

In recentyears,the traditionalconsumerelectronic terminals have gradually advanced fromthe growth stage into the stage ofcompetition over the existing consumers.According to IDC,after the totalshipments have been decreasing for three consecutiveyears,driven by the continuous recovery ofmarketdemands and increase in the production capacity of5Gequipment,the globalshipmentsofsmartphonesareexpected to increaseby 5.5%yearon yearin 2021,and thecompound annualgrowth rateoftheglobalshipmentsofsmartphonesisexpected to reach 3.6%between 2020 and 2025.In addition,along with theadvancementof5Gand AItechnologies,a variety of smart mobile,smart wearable,smart home,smart display and other IoTequipmentis expected to bedeveloped.Driven by the IoTecologic systemand markettrends,the terminalproductshaving smartconnectivity,health check andotherfunctionswilldeeply affectthehabitsand customsofpeople,and bewidely accepted by consumersofallage groups.One-stopsolution providersmastering betterprocesses,having ahigherdegreeofintegration and requiring lessresourcesaremorelikely to getbusiness opportunities in respect of related components and finished products.Fromthe perspective of producttechnology,thedevelopmentcourse of the communication industry is similar to thatof the industry of consumer electronics,with the hardwaredeveloping towardsintegration and smallsize.In the technology evolution from4Gto 5G,base stationstend to have more portsandmore wave numbers.Smallsize and weather resistance putforward increasingly high requirements for precision manufacturing.Compared with manufacturers of traditional communication products, manufacturers having experience in the precisionmanufacturing ofconsumerelectronicproductswilloccupy a good position when they shiftto the newcommunication industry.Thecommunication connectivity marketiswitnessing rapid upgrading ofproducts,and entersan era oftremendousdata.Along with thesharp increase in data volume, the demands for connectivity products responsible for data processing will growsharply. Theautomotive industry willcontinue to advance towardsfourdirectionsoftechnologicalrevolution,namely smartdrive,the InternetofVehicles,electric vehicles and share mobility.Facing such trends of technological development,more and more traditional carmanufacturers,newplayersand solution providersbrave thisnewwave ofthe progress oftechnology.The existence ofa variety ofplayers on the automotive market will promote the industry to make innovations, bring more opportunities and challenges tocomponentmanufacturers,and putforward concentration ofhardware.We have builta complete developmentframework coveringcomponents,modules,sub-systemsand wholesystems,and madecompletedeploymentsforcoreproducts.

2.Futuregrowth strategy

On the basis ofourcore management’s forward-looking plans in respectofmarket,products and customers,and through ouremployees’unremitting effortsto work conscientiously,fulfillalltasksand make innovations,we have made diversified,integratedand coordinated strategic deployments in the fields of consumer electronics,communication and automotive.In lightof the newmarketsituations,we clearly knowthatopportunitiescoexistwith challenges,and willkeep investing in thefuture,and give fullplayto ourstrong corecompetenciesand advantagesin variousareas,to providemorecorevaluefortheindustry and ourcustomers.

In thenextfewyears,theconsumerelectronicsbusinesswillcontinueto occupy an importantposition in ourCompany.We willcontinue to implementand deepen the conceptofverticalintegration fromcomponents,modulesto system,and strive to changethe traditionalsupply ideasand approaches,restructure the supply chain and maximize the synergy effect,to continue to improve

ourcapability to create valueforourcustomers.Meanwhile,with respectto certain coremodulesand processes,we willfollowthestrategic principle of“old products,newcustomersand newmarket”,strive to extend and deepen the application ofproducts,andincrease theirshares on differentmarkets and in differentcustomers,to furtherimprove ourability to preventoperating risks.Inlightofthe generaleconomic developmenttrend ofenhancing internalcirculation,and the generalbackground thathuge demandsforconsumerelectronic products on the domestic marketwillbe stimulated,the smartconsumerelectronic products thatchangelife with technology will growvigorously.By leveraging our remarkable advantages in technological integration of differentplatformsand functionalmodules,on the basisofadequate assessmentofreturn on investmentand risks,we willlaunch a varietyof customized smartproducts in cooperation with differentplatformcustomers,to enrich our productofferings.In the field ofcommunication connectivity,through focusing on technology developmentand combining the efforts ofenterprises,universitiesand research institutes,we are leading the way in certain marketsegments in the world.In the future,we willadhere to thestrategic principle of integrating“application,development and early research”,closely followthe market trends and frontiertechnologies, and strive to make all-round breakthrough on more market segments. With respect to the radio frequencycommunication business, we will focus on the strategic plan of“core components +modules +system”, make continuousinvestments in design and R&D,improve the capability to produce core components on our own,and improve our internaloperation efficiency through transformation and upgrading towards digitalization. Facing the business opportunities in theautomotive field broughtby smartdrive,the InternetofVehicles,electric vehicles and share mobility,we willcontinue to payclose attention to and make appropriate deployments in this field,leverage ourtechnologies and experience accumulated in thefields ofconsumer electronics and communication connectivity,and use ourmature experience in precision manufacturing anddevelopmentcapability in respectofcommunication levelhigh-speed transmission,as wellas the smartand convenientwirelesspower supply technology of consumer electronic products in the automotive business. Meanwhile, we will developmedium/high-power automotive wireless charging module technology,to grasp the opportunities that will be brought by theliberalization ofpowersupply on thefutureunmanned vehiclemarket.

3.Businessplan forthenextyear

In 2020,though we faced allsortsofchallengesfromtheexternalenvironmentand arising in thecourseofourdevelopment,wealwaysstood in awe ofmarketopportunities,and realized healthy growth ofallscopesofbusinesswith ouremployeesacting withonemind and working round theclock.

In 2021,we will continue to focus on our strategic customers,adhere to the principle of customer orientation,and makedeployments in products and businesses according to the strategic demands ofkey customers.On the basis ofserving the existingcustomers and providing the existing products,we willimplementthe business developmentpolicy established by the Board ofDirectors,explore newmarkets and newfields by leveraging our rich experiences and resources,further diversify our products,businessesand customers,and improve ourprofitability.In lightofrapid growth,we willcontinue to make in-depth explorationsandstudies in respectof organization management,officialmanagementand performance incentive,update and optimize the currentmanagementmode,through continuous improvementof the mechanisms,effectively arouse the enthusiasmof officers,poolthewisdomand efforts ofeveryone,and make concerted efforts to give fullplay to the effectiveness ofourorganization,to meetthedemands of our rapid business growth.In 2021,we willcontinue to advance the platformbuilding for automation technologies,upgrade the automation resourcesto a platformshared by the entire group,effecttheirswitchesamong differentfields,productsandmodules,through intensive management,improve operating efficiency and reduce repeated inputofresources.Meanwhile,in termsof production capacity planning,the year of 2021 will be another importantyear for us to make globaldeployments.We willcautiously assess the strategic value of allproducts,businesses and regions,pour reasonable resources into the projects thatcanproduce long-termand stable benefits orproduce a synergy effectand provide high added-value to ourexisting business,to makepre-deploymentsand help usachieveourshort,mediumand long-termgoals.

4.Capitalrequired forfuturedevelopmentstrategy and capitalutilization plan

AsofDecember31,2020,ourequity-debtratio was55.86%.In 2021,ourbusinessisexpected to maintain rapid growth,and theexploitation ofnewmarkets and entry ofproduction ofnewprojects require enormouscapital.Along with the improvementofourposition in the industry and stabilization ofourrelationship with customers,we obtain certain advantages in transactions.We willcontinue to strictly controlcapitalexpendituresin each project,regularly analysisand reviewthe return on investmentin each capitalexpenditure project,and continue to improve ourmanagementoveraccountsreceivable,inventoriesand otherareas,to maximize theefficiency ofcapitalutilization.We willconsiderallavailable sourcesoffinancing atdifferentperiodsaccording to the requirementsofourdevelopmentstrategy,to createmorevalueforourshareholders.

5.Futurerisks

(1)Risk offluctuation ofmacro economy

The numerous uncertainties existing in the domestic and foreign macro environment at present,such as the spread of theepidemic situation throughoutthe world,the trade frictions between China and the United States and the complicated and graveglobal political situation, might result in slowdown of global economy, and affect people’s income, purchasing power andwillingnessto spend.Ifthe uncertaintiesofthe macro environmentcontinue fora long time,the industry willbe impacted and facecertain challenges.

(2)Risk offoreign exchangerate

Atpresent,ourrevenue fromthe overseasmarketconstitutesa large proportion in ourtotaloperating revenue,and ouroverseastransactionsare mainly settled in USDollars.Oursaleson the overseasmarkettotaled RMB32‚010‚761‚900,RMB57‚465‚383‚800and RMB85‚046‚280‚900 in 2018,2019 and 2020,representing 89.29%,91.92%and 91.94%ofthe revenue frommain businessrespectively.Because ourcountry implementsthe managed floating rate system,the foreign exchange ratesfluctuate along with thechanges in domestic and foreign politicaland economic environment.Ifthe foreign exchange rates fluctuate greatly,the exchangegainsorlossesmay affectouroperating results.In orderto reduce the uncertaintiescaused by fluctuationsofforeign exchange rateson ouroperating results,we willstrive to keep abreastofthe movementofforeign exchange rates,strictly controlthe proportion offoreign currency denominated assetsin ournetassets,and through foreign exchange derivative transactions,reduce the effectofthefluctuation offoreign exchangerates.

(3)Managementrisk

Wehavebeen growing rapidly in recentyears,and continuously expanded ourbusinessin consumerelectronics,communication,automotive and otherfields.Wehaveagreatnumberofoperating entitieswhich are relatively decentralized.Dueto theimpactofthetradefrictionsbetween Chinaand theUnited Statesand thespread oftheepidemic situation throughouttheworld,ourcustomerswillputforward increasingly high requirementsfortheinternationalized levelofthedeploymentofourproduction capacity,which willinturn put forward higher requirements for our operation and management capability and pool of outstanding talents. If ourmanagementlevelcannotsatisfy the requirements ofthe rapid growth ofourscale ofoperation,we may face certain managementrisks.

(4)Risk ofrelativeconcentration ofcustomers

We attach greatimportance to maintaining long-termand stable cooperation relationshipswith ourmajorcustomers.Atpresent,ourcustomers are relatively concentrated,mostofwhomare engaged in consumerelectronics.Though the relevantcustomers arefirst-class customers in the industry,have strong and leading competencies on the market,and have maintained years of stablecooperation relationship with us,ifany majorcustomerfallsinto seriousdifficultiesin itsoperation,we may face certain operating

risk.

X.Investigation,research,communication,interviewand otheractivities

1. Registration formof investigation, research, communication, interviewand other activities occurredduring thereporting period

√Applicable□N/A

Date	Place	Methodofcommunication	Typeofguest	Guest	Maintopicofdiscussionandinformationprovided	Particularsoftheinvestigationandresearchactivityavailableat
March20,2020	CompanymeetingroomatNo.17KuiqingRoad,QinghuangIndustrialZone,QingxiTown,Dongguan,Guangdong	Communicationbytelephone	Institution	Institutionalinvestors	EffectoftheoutbreakofCOVID-19ontheCompanyandtheCompany’sfuturedevelopmentplan	RefertotheRecordofInvestorRelationsActivityonMarch20,2020publishedonwww.cninfo.com.cnonMarch22,2020
August25,2020	CompanymeetingroomatNo.333BeihuanRoad,QingxiTown,Dongguan,Guangdong	Communicationbytelephone	Institution	Institutionalinvestors	IntroductionoftheCompany’soperatingresultsinthefirsthalfof2020andtheCompany’sgeneralsituation	RefertoLuxshare-ICT(stockcode:002475)InformationaboutInvestigationandResearchActivity(20200827)publishedonwww.cninfo.com.cnonAugust27,2020
September16, 2020	CompanymeetingroomatNo.399BaishengRoad,JinxiTown,Kunshan,Jiangsu	On-siteinvestigationandresearch	Institution	Institutionalinvestors	IntroductionoftheCompany’sgeneralsituationandfuturedevelopmentplananddeployments	RefertoLuxshare-ICT(stockcode:002475)InvestorRelationsManagementFile(20200919)publishedonwww.cninfo.com.cnonSeptember19,2020

Section VSignificantMatters

I.Profitdistribution on ordinary sharesand transferofcapitalreserveto thesharecapital

Adoption,implementation oradjustmentoftheprofitdistribution policy,in particular,cash dividend policy,in respectofordinary sharesduring thereporting period

√Applicable□N/A

Pursuantto the resolutions adopted by the 17th meeting of the 4th Board ofDirectors and the 2019 annualshareholders’meeting,we proposed to distribute to allshareholders a cashdividend ofRMB1.2 (inclusive oftax)per10 shares on the basisofthe totalshare capitalof5,371,812,030 shares,orRMB644,617,443.60 (inclusive oftax)in total,and issue 3 additionalsharesper10 share through transferofcapitalreserve to the share capital,asa resultofwhich,ourtotalshare capitalwould become 6,983,355,639 shares.In case ofany change in ourtotalshare capitaldue to any share repurchase,exercise ofshareincentives,materialassetrestructuring,cancellation ofrepurchased share orotherwise priorto therecord datefortherelevantequitydistribution,wewould adjustthedistribution payablepershareaccordingly on theprinciplethatthetotalamountdistributableshould remain thesame.

During the period fromthe disclosure ofsuch profitdistribution proposalto the implementation thereof,ourtotalshare capitalincreased by 515,928 shares,from5,371,812,030 sharesatthetime ofdisclosureoftheproposalto 5,372,327,958 sharesdue to theimplementation ofourstock option incentive plan.On theprinciplethatthetotalamountdistributableshould remain thesame,ourprofitdistribution proposalfor2019 wasadjusted asfollows:to distributeto allshareholdersa cash dividend ofRMB1.199884 (inclusive oftax)per10 shareson thebasisofthetotalshare capitalof5,372,327,958 shares,orRMB644,617,035.9556870 (inclusive oftax)in total,and issue 2.999711 additionalsharesper10 share through transferofcapitalreserve to the sharecapital,asaresultofwhich,ourtotalsharecapitalbecame6,983,871,085 shares.

Specialexplanationaboutthecashdividendpolicy
Whethercomplywiththeprovisionsofthearticlesofassociationorrequirementsofresolutionsofthe shareholders’meetingoftheCompany?	Yes
Whetherthestandardandratioofcashdividenddistributionareclearanddefinite?	Yes
Whethertherelevantdecision-makingprocessandmechanismaresound?	Yes
Whethertheindependentdirectorshaveperformedtheirdutiesandexercisedtheirfunctions?	Yes
Whethertheminorityshareholdershavesufficientopportunitiestoexpresstheiropinionsandrequestsand theirlegitimaterightsandinterestsarefullyprotected?	Yes
Whethertheconditionsandproceduresinrespectofanyadjustmentoramendmentofthecashdividendpolicy complywiththeapplicableregulationsandaretransparent?	Yes

Proposalsfordistribution ofdividendson ordinary sharesand fortransferofcapitalreserveto sharecapitalin thepastthreeyears(including thereporting period):

2018:Pursuantto the resolutionsadopted by the 8th meeting ofthe 4th Board ofDirectorsand the 2018 annualshareholders’meeting,we distributed to allshareholdersa cash dividend of

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

RMB0.50 (inclusive oftax)per10 shareson the basisofthe totalshare capitalof4,114,616,722 shares,orRMB205,730,836.10 (inclusive oftax)in total,and issued 3 additionalsharesper10sharethrough transferofcapitalreserveto thesharecapital,asaresultofwhich,ourtotalsharecapitalbecame5,349,001,738 shares.

2019:Pursuantto the resolutionsadopted by the 17th meeting ofthe 4th Board ofDirectorsand the 2019 annualshareholders’meeting,we proposed to distribute to allshareholdersa cashdividend ofRMB1.2 (inclusive oftax)per10 shares on the basisofthe totalshare capitalof5,371,812,030 shares,orRMB644,617,443.60 (inclusive oftax)in total,and issue 3 additionalsharesper10 share through transferofcapitalreserve to the share capital,asa resultofwhich,ourtotalshare capitalwould become 6,983,355,639 shares.In case ofany change in ourtotalshare capitaldue to any share repurchase,exercise ofshareincentives,materialassetrestructuring,cancellation ofrepurchased share orotherwise priorto therecord datefortherelevantequitydistribution,wewould adjustthedistribution payablepershareaccordingly on theprinciplethatthetotalamountdistributableshould remain thesame.

2020:Pursuantto the2020 ProfitDistribution Proposalapproved by the 31stmeeting ofthe 4th Board ofDirectors,we propose to distributeto allshareholdersacash dividend ofRMB1.1(inclusive oftax)per10 shares on the basis ofthe totalshare capitalof7,035,426,367 shares,orRMB773,896,900.37 (inclusive oftax)in total,and to carry forward the retained profits fordistribution in subsequentyears.In case ofany changein ourtotalsharecapitaldueto any sharerepurchase,exercise ofshare incentives,materialassetrestructuring,cancellation ofrepurchasedshare orotherwise priorto the record date forthe relevantequity distribution,we willadjustthe distribution payable pershare accordingly on the principle thatthe totalamountdistributableshould remain thesame.The2020 ProfitDistribution Proposalissubjectto approvalby ourannualshareholders’meeting.

Cash dividendsdistributed on ordinary sharesin thepastthreeyears(including thereporting period):

In RMB

Yearofdistribution	Amountofcashdividends(inclusiveoftax)	Netprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatementsfortheyearofdistribution	Proportionofcashdividendstothenetprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatements	Amountofcashdividendsdistributedinotherways(suchassharerepurchase)	Proportionofcashdividendsdistributedinotherwaystothenetprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatements	Totalamountofcashdividends	Proportionoftotalcashdividendstothenetprofitattributabletotheholdersofordinarysharesofthelistedcompanyontheconsolidatedfinancialstatements
2020	773,896,900.37	7,225,462,752.58	10.71%	0.00	0.00%	773,896,900.37	10.71%

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

2019	644,617,443.60	4,713,820,644.90	13.68%	0.00	0.00%	644,617,443.60	13.68%
2018	205,730,836.10	2,722,631,125.23	7.56%	0.00	0.00%	205,730,836.10	7.56%

Whetherthe Company did notpropose to distribute cash dividendson ordinary sharesthough the Company made a profitin the reporting period and the parentcompany hasa positive profitattributableto theholdersofitsordinary shares?

□Applicable√N/A

II.Profitdistribution on ordinary sharesand transferofcapitalreserveto thesharecapitalforthereporting period

√Applicable□N/A

Numberofbonussharesper10 shares0

Amountofcash dividendsper10 shares(inclusiveoftax)1.1

Sharecapitalbased on which thedistribution proposalwasmade7,035,426,367

Amountofcash dividends(inclusiveoftax)773,896,900.37

Amountofcash dividendsdistributed in otherways(such assharerepurchase)(RMB)0.00

Totalamountofcash dividends(RMB)773,896,900.37

Distributableprofit(RMB)5,031,699,596.69

Proportion oftotalcash dividendsto thedistributableprofit100

Particularsofcash dividendsdistributed forthereporting period

Others

Particularsoftheprofitdistribution proposalorfortransferofcapitalreserveto sharecapital

Our2020 ProfitDistribution Proposalisasfollows:to distribute to allshareholdersa cash dividend ofRMB1.1 (inclusive oftax)

per10 shareson the basisofthe totalshare capitalof7,035,426,367 shares,orRMB773,896,900.37 (inclusive oftax)in total,and

to carry forward the retained profitsfordistribution in subsequentyears.In case ofany change in ourtotalshare capitaldue to any

share repurchase,exercise ofshare incentives,materialassetrestructuring,cancellation ofrepurchased share orotherwise priorto

the record date forthe relevantequity distribution,we willadjustthe distribution payable pershare accordingly on the principle

thatthe totalamountdistributable should remain the same.The 2020 ProfitDistribution Proposalis subjectto approvalby our

annualshareholders’meeting.

III.Fulfillmentofcovenants

1.Covenantsmade by the actualcontrollers,shareholders,affiliatesand acquirer ofthe Company,the Company itselfand other related partiesthathavebeen fulfilled during thereporting period orfailed to befulfilled asattheend ofthereporting period

√Applicable□N/A

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

Backgroundofcovenant	Covenantor	Typeofcovenant	Contentofcovenant	Timeofcovenant	Validityperiod/expirydateofcovenant	Statusoffulfillment
Covenantrelatingtothe transformationintoshare holdingsystem
Covenantmadeinany acquisitionreportorreporton changesinequity
Covenantrelatingtoany assetrestructuring
Covenantrelatingtoany initialpublicofferingor subsequentfundraising	HUANGDawei,LIBin,LINYifei,WANGLaichun,WANGLaisheng,WUTiansong,XIONGTengfang,XUHuaibin,XUEHaigao,YEYiling,ZHANGYing	Othercovenants	PursuanttotheapplicableregulationsoftheChinaSecuritiesRegulatoryCommission,inordertoensuretheimplementationoftheremedialmeasuresfordilutedearningsoftheCompany,eachofthedirectorsandexecutivesoftheCompanyherebycovenantsasfollows:1.Iwillnottransferbenefitstoanyotherentityorindividualwithoutcompensationoronunfairterms,orotherwisedamagetheinterestoftheCompany.2.Iwillexerciseself-disciplineinconsumptioninperformingmyduties.3.IwillnotusetheassetsoftheCompanytoengageinanyinvestmentorconsumptionactivitynotinconnectionwithmyduties.4.Iwill,withinmypowers,procurethelinkagebetweenthecompensationsystemadoptedbytheBoardofDirectorsortheCompensationandPerformanceAppraisalCommitteeandtheimplementationoftheCompany’sremedialmeasuresfordilutedearnings.5.Iwill,withinmypowers,procurethelinkagebetweenthevestingconditionsinrespectofanyshareincentivesgrantedbytheCompanyandtheimplementationoftheCompany’sremedialmeasuresfordilutedearnings.6.Iundertaketostrictlyfulfillthecovenantssetforthabove,toensuretheimplementationoftheremedialmeasuresfordilutedearningsoftheCompany.IfIbreachorrefusetofulfillany	July11,2019	Permanent	Thecovenantshavebeenfulfilledstrictly

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

			covenantsetforthabove,Iwillmakeexplanationsandapologiesandperformotherobligationsrequiredbytheapplicableregulations,andagreetoacceptanypunishmentorregulatoryactionthatmaybeimposedonortakenagainstmebytheChinaSecuritiesRegulatoryCommission,theShenzhenStockExchangeoranyothercompetentsecuritiesregulatoryauthoritypursuanttotheapplicablerulesandregulationsestablishedorpromulgatedbysuchregulatoryauthorities,andindemnifytheCompanyoritsshareholdersforthelosses(ifany)arisingtherefromaccordingtolaw.
	LuxsharePrecisionLimited(HK),WANGLaichun,WANGLaisheng	Othercovenants	InordertoseriouslyprotectthelegitimaterightsandinterestsoftheCompanyandallofitsshareholders,eachofthecontrollingshareholderandactualcontrollersoftheCompanyherebycovenantsasfollows:1.We/IwillnotinterferewithmanagementandoperationoftheCompanybeyondour/mypowers,orinfringeontheinterestoftheCompany.2.We/IwillprocuretheimplementationoftheremedialmeasuresfordilutedearningsoftheCompany,andfulfillour/mycovenantsinconnectiontherewith.IfWe/Ibreachorrefusetofulfillanycovenantsetforthabove,We/Iagreetoacceptanypunishmentorregulatoryactionthatmaybeimposedonortakenagainstus/mebytheChinaSecuritiesRegulatoryCommission,theShenzhenStockExchangeoranyothercompetentsecuritiesregulatoryauthoritypursuanttotheapplicablerulesandregulationsestablishedorpromulgatedbysuchregulatoryauthorities,andindemnifytheCompanyortheinvestorsforthelosses(ifany)arisingtherefromaccordingtolaw.3.Fromthedateofthiscovenanttillthedateofcompletionofthisoffering,iftheChinaSecuritiesRegulatoryCommissionoranyothercompetentsecuritiesregulatoryauthorityadoptsanynewregulationregardingtheremedialmeasuresfordilutedearningsandcovenantsinconnectiontherewith,andthecovenantssetforthabovedonotsatisfytherequirementsofsuchnewregulation,We/Iwillmakesupplementarycovenantspursuanttothenewregulation.	July11,2019	Permanent	Thecovenantshavebeenfulfilledstrictly

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	LuxsharePrecisionLimited(HK),WANGLaichun,WANGLaisheng	Othercovenants	LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,andWANGLaichunandWANGLaisheng,astheactualcontrollersoftheCompany,herebycovenantasfollows:1.We,LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,undertakenottointerferewithmanagementandoperationoftheCompanybeyondourpowers,orinfringeontheinterestoftheCompany.2.I,WANGLaichun,astheactualcontroller,ChairmanandGeneralManageroftheCompany,undertaketoperformmydutiesinaccordancewiththeapplicablelawsandregulationsandthearticlesofassociationoftheCompany,andnottointerferewithmanagementandoperationoftheCompanybeyondmypowers,orinfringeontheinterestoftheCompany.3.I,WANGLaisheng,astheactualcontrollerandViceChairmanoftheCompany,undertaketoperformmydutiesinaccordancewiththeapplicablelawsandregulationsandthearticlesofassociationoftheCompany,andnottointerferewithmanagementandoperationoftheCompanybeyondmypowers,orinfringeontheinterestoftheCompany.	March11,2016	Permanent	Thecovenantshavebeenfulfilledstrictly
	BAIRujing,CHENChaofei,DONGJianhai,LIBin,LIJing,LIXiongwei,LINYifei,WANGJi,WANGLaichun,WANGLaisheng,XUHuaibin,YEYiling,ZHANGLihua	Othercovenants	EachofthedirectorsandexecutivesoftheCompanyherebycovenantsasfollows:1.Iwillnottransferbenefitstoanyotherentityorindividualwithoutcompensationoronunfairterms,orotherwisedamagetheinterestoftheCompany.2.Iwillexerciseself-disciplineinconsumptioninperformingmyduties.3.IwillnotusetheassetsoftheCompanytoengageinanyinvestmentorconsumptionactivitynotinconnectionwithmyduties.4.IwillprocurethelinkagebetweenthecompensationsystemadoptedbytheBoardofDirectorsortheCompensationandPerformanceAppraisalCommitteeandtheimplementationoftheCompany’sremedialmeasuresfordilutedearnings.5.IftheCompanyestablishesanyshareincentiveplaninthefuture,IwillprocurethelinkagebetweenthevestingconditionsinrespectofanyshareincentivesgrantedbytheCompanyandtheimplementationoftheCompany’sremedial	March11,2016	Permanent	Thecovenantshavebeenfulfilledstrictly

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

		measuresfordilutedearnings.
LuxsharePrecisionLimited(HK)	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	1.Weandallotherentitiescontrolledbyusatpresentorinthefuturewillnot,directlyorindirectly,engageinanybusinessoractivitythatcompetesormightcompeteorpotentiallycompetewiththemainbusinessoftheCompany.2.IfanyamendmentofanyapplicablelaworchangeinanyapplicablepolicyofthecountryresultsinanyactualorpotentialhorizontalcompetitionbetweenusoranyotherentitycontrolledbyusandtheCompanyinanybusiness,theCompanyshallhavethepreemptiverightonthesametermsinrespectofanyentrustedmanagement(ormanagementundercontractorlease)oracquisitioninconnectionwithsuchbusiness.3.SolongasweremainthecontrollingshareholderoftheCompany,thecovenantssetforthaboveshallbeunconditionalandirrevocable.Ifwebreachanycovenantsetforthabove,wewill,jointlyandseverally,fully,timelyandadequatelyindemnifythelossesoftheCompanyarisingtherefrom.	October15,2014	Permanent	Thecovenantshavebeenfulfilledstrictly
LuxsharePrecisionLimited(HK)	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	1.Weandotherentitiescontrolledbyuswillreducerelated-partytransactionswiththeCompanytothemaximumextentpracticable.2.Withrespecttoanyrelated-partytransactionbetweenusoranyotherentitycontrolledbyusandtheCompanythatisunavoidableorexistsreasonably,wewillcarryoutsuchtransactiononanarm’slengthbasisandcustomarycommercialterms,ensurethefairnessofthetransactionprice,performtherelevantdecision-makingprocessaccordingtolaw,andguaranteethatthelegitimaterightsandinterestsoftheCompanyanditsshareholderswillnotbedamagedasaresultofsuchtransaction.3.WeoranyotherentitycontrolledbyuswillnotrequesttheCompanytoofferanytermsmorefavorablethanthetermsthatmaybeofferedbyanythirdpartyinanarm’slengthtransaction,oracceptanysuchtermsofferedbytheCompany.4.SolongasweremainthecontrollingshareholderoftheCompany,thecovenantssetforthaboveshallbeunconditionalandirrevocable.Ifwebreachanycovenantsetforthabove,we	October15,2014	Permanent	Thecovenantshavebeenfulfilledstrictly

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

		will,jointlyandseverally,fully,timelyandadequatelyindemnifythelossesoftheCompanyarisingtherefrom.
WANGLaichun,WANGLaisheng	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	IandotherentitiescontrolledbymearenotengagedinanybusinessthatisthesameasorsimilartothebusinessoftheIssueroranyentitycontrolledbytheIssuer.SolongasIretaincontrolovertheIssuerdirectlyorindirectly,Iwillstrictlycomplywiththeapplicablelaws,regulationsandcodesofthecountry,andwillnot,directlyorindirectly,engageinanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuer,orhavesubstantialorrelativecontroloveranyothercompany,organizationoreconomicentityengaginginanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuerinoroutsideChina.Iwillusemycontrolovertheotherentitiescontrolledbymetocausesuchentitiestofulfillthecovenantssetforthaboveinthesamemanner.IfIbreachanycovenantsetforthabove,Iagreetoassumetherelevantlegalliabilities,includingwithoutlimitation,toindemnifytheIssueranditsminorityshareholdersforalllossesarisingtherefrom.	July30,2010	Permanent	Thecovenantshavebeenfulfilledstrictly
LuxsharePrecisionLimited(HK),ShenzhenZixinInvestmentCo.,Ltd.	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	WearenotengagedinanybusinessthatisthesameasorsimilartothebusinessoftheIssueroranyentitycontrolledbytheIssuer.SolongasweretaincontrolovertheIssuerdirectlyorindirectly,wewillstrictlycomplywiththeapplicablelaws,regulationsandcodesofthecountry,andwillnot,directlyorindirectly,engageinanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuer,orhavesubstantialorrelativecontroloveranyothercompany,organizationoreconomicentityengaginginanybusinessthatisthesameas,similartoorsubstantiallyincompetitionwiththebusinessoftheIssueroranyentitycontrolledbytheIssuerinoroutsideChina.Wewilluseourcontrolovertheotherentitiescontrolledbyustocausesuchentitiestofulfillthecovenantssetforthaboveinthesamemanner.Ifwebreachanycovenantsetforthabove,weagreetoassumetherelevantlegalliabilities,includingwithoutlimitation,toindemnifytheIssueranditsminorityshareholdersforalllossesarisingtherefrom.	July30,2010	Permanent	Thecovenantshavebeenfulfilledstrictly
LuxsharePrecision	Covenantsrelating	We/Iwillnottakeadvantageofour/mypositionasthecontrolling	July30,	Permanent	The

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

	Limited(HK),ShenzhenZixinInvestmentCo.,Ltd.,WANGLaichun,WANGLaisheng	tohorizontalcompetition,related-partytransactionsandoccupationoffunds	shareholder,actualcontrollerorshareholder(asapplicable)andour/myaffiliationwiththeIssuertoengageinanyacttothedetrimentoftheinterestoftheIssueroritsothershareholders.Withrespecttoanyrelated-partytransactionbetweenus/meoranyotherentitycontrolledbyus/meandtheIssuer,we/Iwillcarryoutsuchtransactiononanarm’slengthbasisandcustomarycommercialterms,andwillnotrequesttheIssuertoofferanytermsmorefavorablethanthetermsthatmaybeofferedbyanythirdpartyinanarm’slengthtransaction,oracceptanysuchtermsofferedbytheIssuer.We/Iwillstrictlyperformallrelated-partytransactionagreements(ifany)enteredintowiththeIssueringoodfaith,andwillnotseekanyinterestorbenefitincontraventionofthecovenantssetforthabove.Ifwe/Ibreachanycovenantsetforthabove,we/IagreetoindemnifytheIssueranditsminorityshareholdersforalllossesarisingtherefrom.	2010		covenantshavebeenfulfilledstrictly
Covenantsrelatingtoshare incentives
Covenantsmadetothe minorityshareholdersofthe Company	LuxsharePrecisionLimited(HK)	Othercovenants	LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,herebyundertakesnottosellanyshareoftheCompanythroughthestocktradingsystemwithin12monthsafterthecompletionofthisdisposal.	February3,2021	February2,2022	Thecovenantshavebeenfulfilledstrictly
	LuxsharePrecisionLimited(HK)	Othercovenants	LuxsharePrecisionLimited(HK),asthecontrollingshareholderoftheCompany,herebyundertakesnottosellanyshareoftheCompanythroughthestocktradingsystemwithin6monthsafterthecompletionofthisdisposal.	July22,2020	January21‚2021	Thecovenantshavebeenfulfilledstrictly
	LuxsharePrecisionLimited(HK)	Covenantsrelatingtohorizontalcompetition,related-partytransactionsandoccupationoffunds	Afterthecompletionofthetransactionscontemplatedbytheannouncementonexternalinvestmentandrelated-partytransactionsdisclosedbytheCompanyonNovember13,2020,weandouraffiliateswillnotengageinanybusinessthatisthesameasorsubstantiallyincompetitionwiththebusinessoftheCompanyoranyentitycontrolledbytheCompanyinanymanner.	November13,2020	Permanent	Thecovenantshavebeenfulfilledstrictly
Whetherthecovenantshave beenfulfilledontime?	Yes

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

Ifanycovenantfailstobe fulfilledontime,pleasestate thespecificreasonandthe relevantactionplan	N/A

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

2.Ifthe Company hasmade any profitforecaston itsassetsor projectand the reporting period fallswithinthe period ofsuch profitforecast,explanation aboutwhether the goalhas been achieved and the relevantreasons

□Applicable√N/A

IV.Occupation by the controlling shareholder and its affiliates ofthe funds ofCompany fornon-operating purpose

□Applicable√N/A

Ourcontrolling shareholderand itsaffiliateshavenotoccupied ourfundsfornon-operating purposeduring thereporting period.

V.Explanation by the Board of Directors,the Board of Supervisors and the independentdirectors (if any)aboutthe modified auditor’s report issued by the accounting firmfor thereporting period

□Applicable√N/A

VI.Changes in accounting policies,accounting estimates and accounting methods comparedwith thefinancialreportforthepreceding year

√Applicable□N/A

Pursuantto the Notice on the Amendmentand Publication ofthe Accounting Standards for Business Enterprises No.14:Revenue(CaiKuai[2017]No.22)issued by the Ministry ofFinance on July 5,2017,the newrevenue accounting standard iseffective fromJanuary 1,2018 forany entity thatislisted both on domestic and foreign stock exchanges,and any entity thatislisted on a foreignstock exchange and prepares its financial statements in accordance with the International Financial Reporting Standards or theAccounting StandardsforBusinessEnterprises,and fromJanuary 1,2020 forotherentitieslisted on domestic stock exchanges,andfromJanuary 1,2021 forunlisted entities adopting the Accounting Standards forBusiness Enterprises.The 18th meeting ofthe 4thBoard ofDirectorsreviewed and approved theProposalon theAmendmentoftheAccounting Policieson April27,2020.

Pursuantto theprovisionsregarding thetransition fromtheold standard to thenewstandard,we adopted thenewrevenueaccountingstandard fromJanuary 1,2020,withoutadjusting the information ofcomparative periodsorretrospectively adjusting the informationof prior years. Therefore, this change in accounting policies does not affect our financial indicators in 2019. This change inaccounting policies was made pursuant to the requirements of the applicable laws and administrative regulations or unifiedaccounting systemofthe country,and is expected to have no significanteffecton ourfinancialposition,operating results orcashflows.

VII.Explanation aboutany materialaccounting error occurred during the reporting periodthatrequiresany retrospectiverestatement

□Applicable√N/A

Therehasbeen no materialaccounting erroroccurred during thereporting period thatrequiresany retrospectiverestatement.

VIII.Explanation about changes in the scope of consolidation compared with the financialreportforthepreceding year

√Applicable□N/A

Eleven newly established oracquired subsidiaries orsub-subsidiaries during the reporting period,namely Suzhou Lanto ElectronicLimited,Luxshare Precision Industry (Jiangsu)Co.,Ltd.,Luxshare Electronic (Xingning)Co.,Ltd.,Luxshare Lanto (India)Limited,Changshu Luxshare IndustrialInvestmentManagementCo.,Ltd.,Kunshan Luxshare BusinessManagementDevelopmentCo.,Ltd.,Kunshan Luxshare BusinessManagementService Partnership (L.P.),Luxshare IntelligentEquipment(Kunshan)Co.,Ltd.LuxshareIntelligent Manufacture Technology (Rugao)Co.,Ltd., Cyber Acoustics, LLC(USA)(acquired by share purchase)and TaiqiaoInvestmentCo.,Ltd.,are included in the scope ofconsolidation.Since we have transferred the shares held in Luxshare PrecisionIndustry (Xi’an)Ltd.during thereporting period,itisremoved fromthescopeofconsolidation.

IV.Engagementand termination ofengagementofaccounting firm

Accounting firmcurrently engaged:

Nameofdomesticaccountingfirm	BDOChinaShuLunPanCertifiedPublicAccountantsLLP
Remunerationofdomesticaccountingfirm(inRMB0’000)	220
Consecutiveyearsinwhichthedomesticaccountingfirmhas providedauditingservice	13
Certifiedpublicaccountantofthedomesticaccountingfirm	LIJingandWEIGang
Consecutiveyearsinwhichthecertifiedpublicaccountantofthe domesticaccountingfirmhasprovidedauditingservice	4
Nameofforeignaccountingfirm(ifany)	N/A
Remunerationofforeignaccountingfirm(inRMB0’000)(ifany)	0
Consecutiveyearsinwhichtheforeignaccountingfirmhas providedauditingservice(ifany)	N/A
Certifiedpublicaccountantoftheforeignaccountingfirm(ifany)	N/A
Consecutiveyearsinwhichthecertifiedpublicaccountantofthe foreignaccountingfirmhasprovidedauditingservice(ifany)	N/A

Whetheranewaccounting firmwasengaged during thereporting period?

□Yes√No

Engagementofaccounting firmforauditing internalcontrols,financialadvisororsponsor:

√Applicable□N/A

During the reporting period, we engaged CITICSecurities Co.,Ltd. as the sponsor for the public offering of our convertiblecorporatebonds,and paid thesponsorRMB13‚584‚900 ofsponsorfeeand underwriterfeein total.

X.Risk ofdelisting afterdisclosureoftheannualreport

□Applicable√N/A

XI.Mattersrelating to bankruptcy and reorganization

□Applicable√N/A

Wehavenotbeen involved in any bankruptcy orreorganization proceedingsduring thereporting period.

XII.Materiallitigationsand arbitrations

√Applicable□N/A

Background	Amountclaimed(RMB0’000)	Whetheraprovisionisrecognized	Status	Resultandeffect	Enforcementofjudgment/award	Dateofdisclosure	Informationdisclosureavailableat

Otherlitigation occurredduringthe reportingperiod	59.04	No	Closed	Thecasehasbeensettled/closedbymediationorwon,anddoesnothaveamaterialeffectonus.	Closedbymediationorenforced		N/A
Otherlitigation occurredduringthe reportingperiod	45,834.2	No	Pending	Thecaseispending,andwillnothaveamaterialeffectonus.	Pending		N/A

□Applicable√N/A

Wehavenotbeen subjectto any punishmentorrequired to makeany rectification during thereporting period.

XI.Creditstanding oftheCompany and itscontrolling shareholderand actualcontrollers

√Applicable□N/A

Therewasn’tany outstanding courtjudgmentoroverduedebtofalargeamountinvolving usorourcontrolling shareholderoractualcontrollersduring thereporting period.

XV. Implementation of share incentive plans, employee stock ownership plans and otheremployeeincentivesgranted by theCompany

√Applicable□N/A

1.2018 stock option incentiveplan

On November 27,2019,the 13th meeting ofthe 4th Board ofDirectors and the 13th meeting ofthe 4th Board ofSupervisorsreviewed and approved the Proposalon the Satisfaction ofthe Vesting Conditions for the FirstVesting Period ofthe 2018 StockOption Incentive Plan,pursuantto which,the awardees who have satisfied the vesting conditions may exercise the stock optionsvested in the firstvesting period in theirsole discretion fromDecember18,2019 to September24,2020.Referto the CautionaryAnnouncementon Adoption ofthe Discretionary Exercise Method for the FirstVesting Period ofthe 2018 Stock Option IncentivePlan (AnnouncementNo.2019-082)fordetails.

On June 22,2020,due to the equity distribution for2019,we adjusted the exercise price and numberofstock optionsunderthe2018 stock option incentive plan accordingly.Referto the Announcementon Adjustmentofthe Exercise Price and NumberofStockOptions under the 2018 and 2019 Stock Option Incentive Plan and Cancellation of Certain Stock Options (AnnouncementNo.2020-047)fordetails.

On December 2,2020,the 27th meeting of the 4th Board of Directors and the 27th meeting of the 4th Board of Supervisorsreviewed and approved the Proposalon the Satisfaction ofthe Vesting Conditionsfor the Second Vesting Period ofthe 2018 StockOption Incentive Plan,pursuantto which,the awardees who have satisfied the vesting conditions may exercise the stock optionsvested in the second vesting period in theirsole discretion fromDecember21,2020 to September24,2021.Referto the CautionaryAnnouncementon Adoption ofthe Discretionary Exercise Method forthe Second Vesting Period ofthe 2018 Stock Option IncentivePlan (AnnouncementNo.2020-108)fordetails.

2.2019 stock option incentiveplan

On January 21,2020,thegrantof16,274,700 stock optionsreserved underthe2019 stock option incentiveplan to 263 awardeesatan exercise price ofRMB17.93 pershare was duly registered.Referto the Announcementon the Registration ofGrantofStockOptionsReserved underthe2019 StockOption IncentivePlan (AnnouncementNo.2020-008)fordetails.

On June 22,2020,due to the equity distribution for2019,we adjusted the exercise price and numberofstock optionsunderthe2019 stock option incentive plan accordingly.Referto the Announcementon Adjustmentofthe Exercise Price and NumberofStockOptions under the 2018 and 2019 Stock Option Incentive Plan and Cancellation of Certain Stock Options (AnnouncementNo.2020-047)fordetails.

On June 22,2020,the 19th meeting ofthe 4th Board ofDirectorsand the 19th meeting ofthe 4th Board ofSupervisorsreviewedand approved the Proposalon the Satisfaction ofthe Vesting Conditions for the FirstVesting Period ofthe 2019 Stock OptionIncentive Plan,pursuantto which,the awardees who have satisfied the vesting conditions may exercise the stock optionsvested inthe firstvesting period in their sole discretion fromJuly 6,2020 to April21,2021.Refer to the Cautionary AnnouncementonAdoption ofthe DiscretionaryExercise Method fortheFirstVesting Period ofthe 2019 Stock Option Incentive Plan (AnnouncementNo.2020-049)fordetails.

3.Exerciseofstock optionsduring thereporting period

During the reporting period,we issued 41,175,071 additionalshares as a resultofexercise ofstock options by the awardeesunderourstock option incentiveplans.

XVI.Materialrelated-party transactions

1.Related-party transactionsrelating to day-to-day operation

√Applicable□N/A

Counterparty	Relationship	Type	Subjectmatter	Pricingprinciple	Transactionprice	Amount(inRMB0’000)	%ofthetotalamountofthesametypeoftransactions	Approvedlimitoftransactionamount(inRMB0’000)	Whetherornotexceedtheapprovedlimit	Methodofsettlement	Marketpriceavailableforthesametypeoftransactions	Dateofdisclosure	Informationdisclosureavailableat
Lisheng Automotive Technology (Suzhou)Co., Ltd.	Affiliateofthecontrollingshareholder	Purchaseofgoodsfromrelatedparty	Purchaseofgoods	Fairmarketprice	Fairmarketprice	67.69	0.00%	600	No	Banktransfer	Fairmarketprice	April21‚2020	Announcement onEstimated DailyRelated-partyTransactionsin2020publishedonwww.cninfo.com.cn(Announcement No.2020-027)
Lisheng Automotive Technology (Suzhou)Co., Ltd.	Affiliateofthecontrollingshareholder	Salesofgoodsandproductstorelatedparty	Salesofgoods	Fairmarketprice	Fairmarketprice	10‚691.87	0.04%	15‚000	No	Banktransfer	Fairmarketprice	April21‚2020	Announcement onEstimated DailyRelated-partyTransactionsin2020publishedonwww.cninfo.com.cn(Announcement No.2020-027)
Total				--	--	10,759.56	--	15,600	--	--	--	--	--
Particularsofhuge-amountsalesreturns				None
Ifthetotalamountofdailyrelated-partytransactionsthatare expectedtooccurduringthereportingperiodisestimatedby type,theactualtransactionsoccurredduringthereporting period(ifany)				None
Reasonofanygreatdifferencebetweentransactionpriceand referencemarketprice(ifapplicable)				None

Thisdocumentisa translated version ofthe Chineseversion AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.(“《立讯精密2020年年度报告》”),and thepublished AnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.in theChineseversion shallprevail.Thecompletepublished ChineseAnnualReport2020 ofLuxsharePrecision Industry Co.,Ltd.may beobtained atwww.cninfo.com.cn.

2.Related-party transactionsinvolving acquisition orsalesofassetsorequities

□Applicable√N/A

Wehavenotconducted any related-party transaction involving acquisition orsalesofassetsorequitiesduring thereporting period.

3.Related-party transactionsinvolving jointexternalinvestment

√Applicable□N/A

Co-investor	Relationship	Investee	Mainbusinessofinvestee	Registeredcapitalofinvestee(inRMB0’000)	Totalassetsofinvestee(inRMB0’000)	Netassetsofinvestee(inRMB0’000)	Netprofitofinvestee(inRMB0’000)
Changshu Luxshare Business Management Service Partnership (L.P.)	Affiliateofthecontrollingshareholder	ChangshuLizhenIntelligentManufactureTechnologyPartnership(L.P.)	Businessmanagementconsulting;informationtechnologyconsultingservice;technicalservices,technologydevelopment,technicalconsulting,technicalexchanges,technologytransfer andtechnologypromotion.	600,000	599,953.53	599,954.22	4.22
Progressofmaterial constructioninprogressof theinvestee(ifany)		None

□Applicable√N/A

Wedid nothaveany accountsreceivablefromorpayableto any related party during thereporting period.

5.Othermaterialrelated-party transactions

□Applicable√N/A

Wehavenotconducted any othermaterialrelated-party transaction during thereporting period.

XVII.Materialcontractsand performance

1.Trusteeship,contracting and leases

(1)Trusteeship

□Applicable√N/A

No such caseduring thereporting period.

(2)Contracting

□Applicable√N/A

No such caseduring thereporting period.

(3)Leases

□Applicable√N/A

No such caseduring thereporting period.

2.Materialguarantees

√Applicable□N/A

(1)Guarantees

In RMB0’000

ExternalguaranteesprovidedbytheCompanyanditssubsidiaries(excludingthoseprovidedforthesubsidiaries)
Obligor	Disclosuredateofannouncementonthemaximumamountguaranteed	Maximumamountguaranteed	Effectivedateofguarantee	Actualamountguaranteed	Typeofguarantee	Termofguarantee	Whetherornotexpired	Whetherornotprovidedforarelatedparty

GuaranteesprovidedbytheCompanyforitssubsidiaries
Obligor	Disclosuredateofannouncementonthemaximumamountguaranteed	Maximumamountguaranteed	Effectivedateofguarantee	Actualamountguaranteed	Typeofguarantee	Termofguarantee	Whetherornotexpired	Whetherornotprovidedforarelatedparty
ICT-Lanto	April20,2020	18‚922.21	June23,2020		Jointandseveralguarantee	Oneyear	No	Yes
ICT-Lanto	April20,2020	19‚574.7	August1,2020		Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	7‚717.39	June23,2020		Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	32‚624.5	June1,2020		Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	32‚624.5			Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	52‚199.2			Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	521‚992	July20,2020		Jointandseveralguarantee	Fiveyears	No	Yes
LuxsharePrecision	April20,2020	7‚829.88	June12,2020	7‚813.57	Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	17‚617.23	July15,2020	17‚551.98	Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	33‚929.48	October21,2020	32‚624.5	Jointandseveral	Oneyear	No	Yes

					guarantee
LuxsharePrecision	April20,2020	18‚152.27	May21,2020	17‚878.23	Jointandseveralguarantee	Oneyear	No	Yes
LuxsharePrecision	April20,2020	52‚969.14			Jointandseveralguarantee	Oneyear	No	Yes
Totalamountofguaranteeapprovedto beprovidedforsubsidiariesduringthe reportingperiod(B1)		815‚612.5		Totalamountofguaranteeactuallyprovidedforsubsidiariesduringthereportingperiod(B2)		75‚868.27
Totalamountofguaranteeapprovedto beprovidedforsubsidiariesasatthe endofthereportingperiod(B3)		815‚612.5		Totalamountofguaranteeactuallyprovidedforsubsidiariesasattheendofthereportingperiod(B4)		75‚868.27

Guaranteesprovidedbysubsidiariesforeachother
Obligor	Disclosuredateofannouncementonthemaximumamountguaranteed	Maximumamountguaranteed	Effectivedateofguarantee	Actualamountguaranteed	Typeofguarantee	Termofguarantee	Whetherornotexpired	Whetherornotprovidedforarelatedparty

TotalamountofguaranteeprovidedbytheCompany
Totalamountofguaranteeapprovedduringthereportingperiod(A1+B1+C1)	815‚612.5	Totalamountofguaranteeactuallyprovidedduringthereportingperiod(A2+B2+C2)	75‚868.27
Totalamountofguaranteeapprovedasattheendofthereportingperiod(A3+B3+C3)	815‚612.5	Totalamountofguaranteeactuallyprovidedasattheendofthereportingperiod(A4+B4+C4)	75‚868.27
Ratiooftotalamountofguaranteeactuallyprovided(A4+B4+C4)tothe netassetsoftheCompany		2.70%

Where:
Outstandingguaranteesprovidedforshareholders,actualcontrollerand theiraffiliates(D)	0
Outstandingguaranteesdirectlyorindirectlyprovidedforobligorswhose debt-to-assetsratioexceeds70%(E)	75‚868.27
Portionoftotalamountofguaranteeinexcessof50%ofthenetassets(F)	0
Total(D+E+F)	75‚868.27
Explanationaboutthejointandseveralliabilitythathasbeenormightbe incurredinrespectofoutstandingguaranteesduringthereportingperiod(if any)	f None
Explanationaboutexternalguaranteesprovidedincontraventionofthe establishedprocedures(ifany)	None

Particularsoftheguaranteesprovided using complex method:

(2)Externalguaranteesin contravention oftheregulations

□Applicable√N/A

Wehavenotprovided any externalguaranteein contravention oftheapplicableregulationsduring thereporting period.

3.Entrusted managementofcash assets

(1)Entrusted wealth management

√Applicable□N/A

Entrusted wealth managementduring thereporting period:

In RMB0’000

Type	Sourceoffunds	Totalamount	Outstandingamount	Overdueamount
Bankwealthmanagementamount	Self-ownedfunds	285,467.61	285,467.61	0
Total		285,467.61	285,467.61	0

High-risk entrusted wealth managementproductsthataresignificantindividually,illiquid ornotprincipalprotected:

□Applicable√N/A

Entrusted wealth managementproductstheprincipalofwhich may beunrecoverableorwhich may otherwisebeimpaired:

□Applicable√N/A

(2)Entrusted loans

√Applicable□N/A

Entrusted loansduring thereporting period:

In RMB0’000

Totalamount	Sourceoffunds	Outstandingamount	Overdueamount
320,949	Self-ownedfunds	320,949	0

High-risk entrusted loansthataresignificantindividually,illiquid ornotprincipalprotected:

□Applicable√N/A

Entrusted loanstheprincipalofwhich may beunrecoverableorwhich may otherwisebeimpaired:

□Applicable√N/A

4.Materialcontractsrelating to day-to-day operation

□Applicable√N/A

5.Othermaterialcontracts

□Applicable√N/A

Wehavenotentered into any othermaterialcontractduring thereporting period.

XVIII.Socialresponsibility

1.Performanceofsocialresponsibility

Please referto our2020 Reporton Sustainable Developmentthathasbeen fully published on ourdesignated website forinformationdisclosure, http://www.cninfo.com.cn ,on thedateofthisAnnualReport.

2.Performanceofsocialresponsibility fortargeted poverty alleviation

We have notcarried outany targeted poverty alleviation programduring the reporting period and do nothave any targeted povertyalleviation programforthetimebeing.

3.Environmentalprotection

WhethertheCompany orany ofitssubsidiariesisindentified asamajorpolluterby theenvironmentalprotection authority?

□Yes√No

Neitherwenorany ofoursubsidiarieshasbeen identified asamajorpolluterby theenvironmentalprotection authority during thereporting period.

XIX.Othersignificantmatters

√Applicable□N/A

In February 2020,we received the Reply on Approving the Public Issuance ofConvertible Corporate Bonds by Luxshare PrecisionIndustry Co.,Ltd.(Zheng Jian Xu Ke [2020]No.247)fromthe China Securities Regulatory Commission,which approved uspublicly issuing convertiblecorporatebondsin an aggregateamountofRMB3 billion with atermofsix years.

On November 3,2020,we publicly issued 30‚000‚000 convertible corporate bonds of par value of RMB100 each,and raisedRMB3‚000‚000‚000.00 in total.The coupon rate of such convertible corporate bonds is 0.10%for the firstyear,0.20%for thesecond year,0.30%forthethird year,1.50%forthefourth year,1.80%forthefifth yearand 2.00%forthesixth year.Upon approvalby the Shenzhen Stock Exchange,such convertible corporate bonds were listed and traded on the Shenzhen Stock Exchange onDecember2,2020 undertheshortname“LuxshareConvertibleBonds”and bond code“128136”.

XX.Significantmattersconcerning thesubsidiariesoftheCompany

□Applicable√N/A

Section VIChangesin Sharesand Shareholders

I.Changesin shares

1.Changesin shares

Unit:Share

	Beforethechange		＋,－					Afterthechange
	Number	%	Newshares	Bonusshares	Capitalizationofcapitalreserves	Others	Subtotal	Number	%
I.Non-tradableshares	6,560,918	0.12%			2,028,919	2,418,084	4,447,003	11,007,921	0.16%
1.SharesheldbytheState
2.SharesheldbyState-owned corporations
3.Sharesheldbyotherdomestic investors	887,250	0.02%			304,170	1,660,388	1,964,558	2,851,808	0.04%
Incl.:Sharesheldbydomestic non-State-ownedcorporations	0	0.00%
Sharesheldbydomestic naturalpersons	887,250	0.02%			304,170	1,660,388	1,964,558	2,851,808	0.04%
4.Sharesheldbyforeign investors	5,673,668	0.11%			1,724,749	757,696	2,482,445	8,156,113	0.12%
Incl.:Sharesheldbyforeign corporations
Sharesheldbyforeign naturalpersons	5,673,668	0.11%			1,724,749	757,696	2,482,445	8,156,113	0.12%
II.Tradableshares	5,358,554,675	99.88%			1,609,514,208	38,756,987	1,648,271,195	7,006,825,870	99.84%
1.RMB-denominatedordinary shares	5,358,554,675	99.88%			1,609,514,208	38,756,987	1,648,271,195	7,006,825,870	99.84%
2.Foreigncurrency-denominated shareslisteddomestically
3.Foreigncurrency-denominated shareslistedoverseas
4.Others
III.Totalshares	5,365,115,593	100.00%			1,611,543,127	41,175,071	1,652,718,198	7,017,833,791	100.00%

Reasonsofchangesin shares:

√Applicable□N/A

1.Upon approvalby the 17th meeting ofthe 4th Board ofDirectorsand the 2019 annualshareholders’meeting,on June 17,2019,weimplemented the proposalsforprofitdistribution and transferofcapitalreserve to share capitalfor2019,pursuantto which,on thebasis ofthe totalshare capitalof5,372,327,958 shares as ofJune 16,2020,we distributed to allshareholders a cash dividend ofRMB1.199884 (inclusive oftax)per10 shares,orRMB644,617,443.60 in total,and issued 2.999711 additionalsharesper10 shares,or 1,611,543,127 shares in total,through transfer of capitalreserve to share capital,as a resultof which,our totalshare capitalbecame6,983,871,085 shares.

2.The13th,27th and 19th meetingsofthe4th Board ofDirectorsdetermined thatthevesting conditionsforthefirstand second vestingperiodsofthe 2018 stock option incentive plan and the firstvesting period ofthe 2019 stock option incentive plan had been satisfiedrespectively,and approved thatthe awardees may exercise the relevantstock options vested thereunder in their sole discretion.During thereporting period,weissued 41,175,071 additionalsharesasaresultofexerciseofstock optionsby theawardeesunderourstock option incentiveplans.

Approvalofchangesin shares:

√Applicable□N/A

1.Approvalby the17th meeting ofthe4th Board ofDirectorsand the2019 annualshareholders’meeting.

2.Approvalby the13th,27th and 19th meetingsofthe4th Board ofDirectors.

Transferofshareownership:

√Applicable□N/A

1.Ex-rightsdateoftheequity distribution fortheyearof2019:June17,2020.

2.Period in which thestock optionsvested in thefirstvesting period ofthe2018 stock option incentive plan may beexercised by therelevantawardeesin theirsolediscretion:FromDecember18,2019 to September24,2020.

Period in which thestock optionsvested in thesecond vesting period ofthe2018 stock option incentiveplan may beexercised by therelevantawardeesin theirsolediscretion:FromDecember21,2020 to September24,2021.

Period in which the stock optionsvested in the firstvesting period ofthe 2019 stock option incentive plan may be exercised by therelevantawardeesin theirsolediscretion:FromJuly 7,2020 to April21,2021.

Progressofsharerepurchase:

□Applicable√N/A

Progressofsalesofrepurchased sharesthrough callauction:

□Applicable√N/A

Effectofchangesin shareson thebasicearningspershare,diluted earningspershare,netassetspershareattributableto ordinaryshareholdersand otherfinancialindicatorsoftheCompany in thepreceding yearand themostrecentreporting period:

□Applicable√N/A

Otherinformation disclosed astheCompany deemsnecessary orrequired by thesecuritiesregulatory authorities:

□Applicable√N/A

2.Changesin non-tradableshares

√Applicable□N/A

Unit:Share

Shareholder	Balanceofnon-tradablesharesasatJanuary1,2020	Numberofnon-tradablesharesunlockedinthereportingperiod	Numberofnon-tradablesharesincreasedinthereportingperiod	Balanceofnon-tradablesharesasatDecember31,2020	Reasonforrestriction	Unlockdate
XUEHaigao	253,500	659,078	0	912,578	Non-tradablesharesheldbyaretiredexecutive(withrespecttothesharesheldbytheretired	Withrespecttothesharesheldbytheretiredexecutivepriortotheexpirationofhistermofoffice,

				executivepriortotheexpirationofhistermofoffice,100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
LIBin	507,000	1,064,664	1,571,664	Non-tradablesharesheldbyadirectororexecutive(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
XIONGTengfang	126,750	240,816	367,566	Non-tradablesharesheldbyaretiredexecutive(withrespecttothesharesheldbytheretiredexecutivepriortotheexpirationofhistermofoffice,100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Withrespecttothesharesheldbytheretiredexecutivepriortotheexpirationofhistermofoffice,100%ofsuchsharesshallbelockedupwithinsixmonthsafterheleavestheCompany;andduringhisoriginaltermofoffice,thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
HUANGDawei	126,750	202,792	329,542	Non-tradablesharesheldbyanexecutive(75%	Thenon-tradablesharesheldbyhimatthe

				ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	beginningofeachyearshallbeunlockedinsuchproportionasprescribed.
YEYiling	185,055	397,473	582,528	Non-tradablesharesheldbyadirectororexecutive(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
WUTiansong	0	273,776	273,776	Non-tradablesharesheldbyanexecutive(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
WANGLaisheng	5,361,863	1,608,404	6,970,267	Non-tradablesharesheldbyadirector(75%ofthenon-tradablesharesheldbyhimattheendofeachyearshallbelockedupinthefollowingyear.)	Thenon-tradablesharesheldbyhimatthebeginningofeachyearshallbeunlockedinsuchproportionasprescribed.
Total	6,560,918	4,447,003	11,007,921	--	--

1.Offering ofsecurities(otherthan preferred shares)during thereporting period

√Applicable□N/A

Nameofstock and itsderivativesecurities

Numberapproved tobelisted

Expiry dateInformationdisclosureavailableat

Offeringprice(orrate)

Numberoffered

Dateoflisting

Dateof

Offering date

disclosure

StockConvertiblecorporatebonds,separately traded convertiblecorporatebondsand corporatebondsLuxshareConvertibleBonds

November3,2020

RMB100 perbond

ecember2,2020

ovember2,

30,000,000 D

30,000,000 N

2026

Otherderivativesecurities

Explanation abouttheoffering ofsecurities(otherthan preferred shares)during thereporting period:

Upon approval by the China Securities Regulatory Commission under the Document Zheng Jian Xu Ke [2020]No. 247, onNovember 3, 2020, we publicly issued 30‚000‚000 convertible corporate bonds of par value of RMB100 each, and raisedRMB3‚000‚000‚000.00 in total.The coupon rate of such convertible corporate bonds is 0.10%for the firstyear,0.20%for thesecond year,0.30%forthethird year,1.50%forthefourth year,1.80%forthefifth yearand 2.00%forthesixth year.Upon approvalby the Shenzhen Stock Exchange underthe DocumentShen Zheng Shang [2020]No.1170,such convertible corporate bondswerelisted and traded on the Shenzhen Stock Exchange on December2,2020 underthe shortname“Luxshare Convertible Bonds”andbond code“128136”.

2.Changes in totalnumber ofshares,shareholding structure,and structure ofassets and liabilities oftheCompany

√Applicable□N/A

2.The13th,27th and 19th meetingsofthe4th Board ofDirectorsdetermined thatthevesting conditionsforthefirstand second vestingperiodsofthe 2018 stock option incentive plan and the firstvesting period ofthe 2019 stock option incentive plan had been satisfiedrespectively,and approved thatthe awardees may exercise the relevantstock options vested in their sole discretion.During thereporting period,we issued 41,175,071 additionalshares as a resultofexercise ofstock options by the awardees underourstockoption incentiveplans.

3.Outstanding employeeshares

□Applicable√N/A

III.Shareholdersand actualcontrollers

1.Numberofshareholdersand shareholding structureoftheCompany

Unit:Share

Totalnumberof ordinary shareholdersatthe endofthe reportingperiod	322,623	Totalnumberofordinaryshareholdersattheendofthemonthimmediatelyprecedingthedateofthisannualreport	478,840	Totalnumberofpreferredshareholderswhosevotingrightshadbeenrestitutedattheendofthereportingperiod(ifany)(Note8)	0	Totalnumberofpreferredshareholderswhosevotingrightshadbeenrestitutedattheendofthemonthimmediatelyprecedingthedateofthisannualreport(ifany)(Note8)	0

annualreport(ifany)(Note8)0

end ofthemonth immediately

attheend ofthereporting

preceding thedateofthis

period (ifany)(Note8)

Shareholdingofordinaryshareholdersholdingmorethan5%ofthesharesortop10ordinaryshareholders
Nameofshareholder	Statusofshareholder	Shareholdingpercentage	No.ofordinarysharesheldattheendofthereportingperiod	Changesinshareholdingduringthereportingperiod	No.ofnon-tradableordinarysharesheld	No.oftradableordinarysharesheld	Pledgeorfreeze
Nameofshareholder	Statusofshareholder	Shareholdingpercentage	No.ofordinarysharesheldattheendofthereportingperiod	Changesinshareholdingduringthereportingperiod	No.ofnon-tradableordinarysharesheld	No.oftradableordinarysharesheld	Statusofshares	Number
LuxsharePrecision Limited(HK)	Foreigncorporation	40.90%	2,870,246,069	-266‚482‚693	0	2,870,246,069	Pledged	623,072,952
HongKongSecurities ClearingCompany Limited	Foreigncorporation	6.92%	485,552,880	78‚241‚205	0	485,552,880

CentralHuijinAsset ManagementCo.,Ltd.	Statedownedcorporation	1.38%	96,584,014		0	96,584,014
ChinaSecuritiesFinance CorporationLimited	Domesticnon-statedownedcorporation	1.20%	84,428,888		0	84,428,888
PegatronTechnology (Shanghai)CoLtd	Domesticnon-statedownedcorporation	0.57%	39,845,105	11‚070‚199	0	39,845,105
EFund-Agricultural BankofChina-EFund ZhongzhengFinancial AssetManagementPlan	Domesticnon-statedownedcorporation	0.55%	38,656,343		0	38,656,343
ChinaAMC- AgriculturalBankof China-ChinaAMC ZhongzhengFinancial AssetManagementPlan	Domesticnon-statedownedcorporation	0.55%	38,576,831		0	38,576,831
ZhongOuFund- AgriculturalBankof China-ZhongOu ZhongzhengFinancial AssetManagementPlan	Domesticnon-statedownedcorporation	0.55%	38,557,184		0	38,557,184
YinhuaFund- AgriculturalBankof China-Yinhua ZhongzhengFinancial AssetManagementPlan	Domesticnon-statedownedcorporation	0.55%	38,508,814		0	38,508,814
Collateralsecurities accountforcustomer margintradingofHuatai SecuritiesCo.,Ltd.	Domesticnon-statedownedcorporation	0.52%	36,747,171		0	36,747,171
Strategicinvestorsorgeneralcorporations becomingtop10ordinaryshareholdersasa resultofrightsissues(ifany)(Note3)		N/A
Affiliatesorconcertpartiesamongthe shareholderslistedabove		1.LuxsharePrecisionLimited(HK)isourcontrollingshareholder.2.WearenotawarewhetherthereareaffiliatesorconcertpartiesasdefinedintheAdministrativeMeasuresforInformationDisclosurebytheListedCompaniesRelatingtoChangesinSharesHeldbyShareholdersamongtheshareholderslistedabove.
Delegationorwaiverofvotingrightsor ownershipofvotingrightsasaproxyin respectoftheshareholderslistedabove		N/A

Sharesheldbytop10holdersoftradableshares
Shareholder	Numberoftradablesharesheldattheendofthereportingperiod	Typeandnumberofshares
Shareholder	Numberoftradablesharesheldattheendofthereportingperiod	Type	Number
LuxsharePrecisionLimited(HK)	2,870,246,069	RMB-denominatedordinaryshare	2,870,246,069
HongKongSecuritiesClearingCompanyLimited	485,552,880	RMB-denominatedordinaryshare	485,552,880
CentralHuijinAssetManagementCo.,Ltd.	96,584,014	RMB-denominatedordinaryshare	96,584,014
ChinaSecuritiesFinanceCorporationLimited	84,428,888	RMB-denominatedordinaryshare	84,428,888
PegatronTechnology(Shanghai)CoLtd	39,845,105	RMB-denominatedordinaryshare	39,845,105
EFund-AgriculturalBankofChina-EFundZhongzheng FinancialAssetManagementPlan	38,656,343	RMB-denominatedordinaryshare	38,656,343
ChinaAMC-AgriculturalBankofChina-ChinaAMC ZhongzhengFinancialAssetManagementPlan	38,576,831	RMB-denominatedordinaryshare	38,576,831
ZhongOuFund-AgriculturalBankofChina-ZhongOu ZhongzhengFinancialAssetManagementPlan	38,557,184	RMB-denominatedordinaryshare	38,557,184
YinhuaFund-AgriculturalBankofChina-Yinhua ZhongzhengFinancialAssetManagementPlan	38,508,814	RMB-denominatedordinaryshare	38,508,814

Collateralsecuritiesaccountforcustomermargintradingof HuataiSecuritiesCo.,Ltd.	36,747,171	RMB-denominatedordinaryshare	36,747,171
Affiliatesorconcertpartiesamongtop10holdersof tradableordinaryshares,andamongtop10holdersof tradableordinarysharesandtop10ordinaryshareholders	N/A
Engagementbytop10ordinaryshareholdersinmargin trading(ifany)(Note4)	N/A

Did any top 10 ordinary shareholderortop 10 holderoftradableordinary sharesconductany transaction underrepurchaseagreementduring thereporting period?

□Yes√No

No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under repurchaseagreementduring thereporting period

2.Controlling shareholderoftheCompany

Natureofcontrolling shareholder:Controlled by foreign investor

Typeofcontrolling shareholder:Corporation

Nameofcontrollingshareholder	Legalrepresentative/principal	Dateofincorporation	Organizationcode	Mainbusiness
LuxsharePrecisionLimited(HK)	WANGLaichun	August27,1999		Investmentandshareholding
Sharesheldbythecontrollingshareholderin othercompanieslistedondomesticorforeign stockexchangesduringthereportingperiod	None

Changein thecontrolling shareholderduring thereporting period:

□Applicable√N/A

Ourcontrolling shareholderhasremained unchanged during thereporting period.

3.ActualcontrollersoftheCompany and theirconcerted parties

Natureofactualcontrollers:Naturalperson

Typeofactualcontrollers:Naturalperson

Nameofactualcontroller	Relationshipwiththeactualcontroller	Nationality	Whetherornotholdaresidencepermitinanyothercountryorregion
WANGLaichun	Herself	HongKong	No
WANGLaisheng	Himself	HongKong	No
Mainoccupationsandtitles	Ms.WANGLaichun,ChairmanandGeneralManagerofourCompany,formerdirectorofShenzhenHigh-techIndustryAssociationandViceChairmanofShenzhenElectronicsIndustryAssociation,purchasedsharesofLuxshareHKjointlywithMr.WANGLaishengin1999,andfoundedandservedasChairmanofLuxsharePrecisionIndustry(Shenzhen)Co.,Ltd.in2004throughLuxshareHK.Mr.WANGLaisheng,ViceChairmanofourCompanyandchairmanofXiexunElectronic(Ji’an)Co.,Ltd.,DongguanLuxsharePrecisionIndustryCo.,Ltd.andDongguanLeaderPrecisionIndustryCo.,Ltd.,formermanagingdirectorofShenzhenQualityAssociationanddirectorofGuangdongLaboratoryFederation,purchasedsharesofLuxshareHKjointlywithMs.WANGLaichunin1999,andfoundedLuxsharePrecisionIndustry(Shenzhen)Co.,Ltd.jointlywithMs.WANGLaichunin2004

	throughLuxshareHK.
Whetherornotcontrolanyother companylistedonadomesticorforeign stockexchangeinthepasttenyears	None

Changein theactualcontrollersduring thereporting period:

□Applicable√N/A

Ouractualcontrollershaveremained unchanged during thereporting period.

Diagramofownership and controlrelationship between theCompany and itsactualcontrollers:

WhethertheactualcontrollerscontroltheCompany through any trustorotherwaysofassetmanagement?

□Applicable√N/A

4.Othercorporateshareholdersowning morethan 10%oftheshares

□Applicable√N/A

5. Restrictions on the sales of shares by the controlling shareholder, actual controllers, parties toreorganization and othercovenantors

□Applicable√N/A

Section VIIPreferred Shares

□Applicable√N/A

Wedid nothaveany preferred shareduring thereporting period.

Section VIIIConvertibleCorporateBonds

√Applicable□N/A

I.Historicadjustmentsofconversion price

Theinitialconversion priceofourconvertiblecorporatebondswasRMB58.62 pershare.

Since we issued 3,281,228 additional shares as a result of exercise of stock options by the relevant awardees under our shareincentive plansbetween November3,2020 (the offering date ofourconvertible corporate bonds),the conversion price wasadjustedfromRMB58.62 pershareto RMB58.60 pershare,effectivefromDecember14,2020.

Since we issued 17,765,322 additionalshares as a resultof exercise of stock options by the relevantawardees under our shareincentive planson December25,2020,the conversion price wasfurtheradjusted fromRMB58.60 pershare to RMB58.48 pershare,effectivefromDecember30,2020.

Asattheend ofthereporting period,theconversion priceofourconvertiblecorporatebondswasRMB58.48 pershare.

II.Aggregatenumberofconvertiblecorporatebondsconverted

□Applicable√N/A

III.Top 10 holdersofconvertiblecorporatebonds

Unit:Share

No.	Nameofholderofconvertiblecorporatebonds	Natureofholderofconvertiblecorporatebonds	Numberofconvertiblecorporatebondsheldattheendofthereportingperiod	Amountofconvertiblecorporatebondsheldattheendofthereportingperiod(RMB)	Percentageofconvertiblecorporatebondsheldattheendofthereportingperiod
1	PingAnBankCo.,Ltd.–ChangxinConvertibleBonds-typeSecuritiesInvestmentFund	Others	1,743,029	174,302,900.00	5.81%
2	PingAnSelectedValue-addedNo.1MixedEndowmentProduct-IndustrialandCommercialBankofChinaLimited	Others	831,717	83,171,700.00	2.77%
3	NortheastSecuritiesCo.,Ltd.	Statedownedcorporation	550,303	55,030,300.00	1.83%
4	NationalSocialSecurityFundPortfolioNo.1005	Others	500,515	50,051,500.00	1.67%
5	ShanxiSecuritiesCo.,Ltd.	Statedownedcorporation	500,070	50,007,000.00	1.67%
6	GuohaiSecuritiesCo.,Ltd.	Statedownedcorporation	404,499	40,449,900.00	1.35%
7	IndustrialandCommercialBankofChinaLimited–ZhongOuConvertibleBonds-typeSecuritiesInvestmentFund	Others	402,106	40,210,600.00	1.34%
8	IndustrialandCommercialBankofChinaLimited-99FundConvertibleBonds-typeSecuritiesInvestmentFund	Others	400,000	40,000,000.00	1.33%
9	ICBCCreditSuisseMixedEndowmentProduct-IndustrialandCommercialBankofChinaLimited	Others	365,776	36,577,600.00	1.22%
10	ChinaEverbrightBankCo.,Ltd.－BoseraEnhancedConvertibleBonds-typeSecuritiesInvestmentFund	Others	351,333	35,133,300.00	1.17%

IV.Materialchangesin theprofitability,assetsand creditstanding oftheguarantor

□Applicable√N/A

V.Changes in the assets,liabilities and credit standing of the Company at the end of thereporting period and cash arrangementforrepaymentin subsequentyears

Main accounting dataand financialindicatorsoftheCompany asattheend ofthereporting period and theend ofthepreceding year:

Item	December31,2020	December31,2019	Y/Y%Change
Currentratio	1.29	1.24	0.05
Equity-debtratio	55.86	55.95	-0.09
Quickratio	0.9	0.93	-0.03
	2020	2019	Y/Y%Change
EBITDA-to-interestcoverageratio	27.23	20.53	6.69
Rateofloansdueandrepaid	100%	100%	0%
Rateofinterestdueandpaid	100%	100%	0%

TheY/Ychangeofalloftheindictorssetforth aboveisbelow30%.

During the reporting period,we appointed United CreditRatingsCo.,Ltd.to analyze and rate ourlong-termcreditstanding and theconvertible corporate bonds publicly issued by us,which rated our long-termcredit standing as“AA+”,determined our ratingoutlook to bestable,and rated theconvertiblecorporatebondspublicly issued by usas“AA+”,and isoftheopinion thattherisk thatwe become unable to repay ourconvertible corporate bonds upon maturity thereofis very low.Referto ourdesignated website forinformation disclosure, http://www.cninfo.com.cn ,for the CreditRating Reporton the Public Offering ofConvertible CorporateBondsin 2020 (Lian He [2020]No.2436).During the reporting period,the rating ofourconvertible corporate bondshasremainedunchanged.

Section IXDirectors,Supervisors,SeniorManagementand Employees

I.Changesin sharesheld by directors,supervisorsand seniormanagement

Name	Position	Status	Gender	Age	Officetermfrom	Officetermto	Numberofsharesheldatthebeginningoftheperiod:(unit:share)	Numberofincreasedsharesforthecurrentperiod(unit:share)	Numberofreducedsharesforthecurrentperiod(unit:share)	Otherincreasesordecreases(unit:share)	Numberofsharesheldattheendoftheperiod(unit:share)
WANG Laichun	BoardChairmanandGeneralManager	Current	Female	54	February22,2009	May21,2021	0	0	0	0	0
WANG Laisheng	ViceChairmanoftheBoard	Current	Male	57	February22,2009	May21,2021	7,149,151	0	2,323,422	2,144,538	6,970,267
LIBin	DirectorandDeputyGeneralManager	Current	Male	44	April18,2012	May21,2021	676,000	1,216,772	0	202,780	2,095,552
YEYiling	DirectorandDeputyGeneralManager	Current	Female	50	November3,2011	May21,2021	246,740	455,950	0	74,015	776,705
XUHuaibin	Independentdirector	Current	Male	64	May6,2015	May21,2021	0	0	0	0	0
LINYifei	Independentdirector	Current	Male	46	May6,2015	May21,2021	0	0	0	0	0
ZHANG Ying	Independentdirector	Current	Female	58	May22,2018	May21,2021	0	0	0	0	0
XIA Yanrong	Supervisor	Current	Female	40	December19,2017	May21,2021	0	0	0	0	0
MO Rongying	Supervisor	Current	Female	41	May22,2018	May21,2021	0	0	0	0	0

YIPeizan	Supervisor	Current	Female	36	February22,2009	May21,2021	0	0	0	0	0
HUANG Dawei	DeputyGeneralManagerandBoardSecretary	Current	Male	49	May25,2018	May21,2021	169,000	219,695	0	50,695	439,390
WU Tiansong	CFO	Current	Male	51	April15,2019	May21,2021	0	334,617	0	30,417	365,034
XUE Haigao	DeputyGeneralManager	Resigned	Male	42	May25,2018	April20,2020	338,000	777,382	0	101,390	1,216,772
XIONG Tengfang	DeputyGeneralManager	Resigned	Male	39	May25,2018	April21,2020	169,000	270,393	0	50,695	490,088
Total	--	--	--	--	--	--	8,747,891	3,274,809	2,323,422	2,654,530	12,353,808

II.ChangesofDirectors,Supervisorsand SeniorManagementoftheCompany

√Applicable□N/A

Name	Position	Type	Date	Reason
XIONG Tengfang	SeniorManagement	Dismissal	April20,2020	BasedontherelevantdevelopmentneedsoftheCompany’scommunicationbusiness,Mr.XIONGTengfangresignedasthedeputygeneralmanageroftheCompanyandafterresignation,continuedtoworkintheCompanywithfocusontheoperationandmanagementoftheCompany’scommunicationbusiness.
XUEHaigao	SeniorManagement	Dismissal	April20,2020	BasedontherelevantdevelopmentneedsoftheCompany’scommunicationbusiness,Mr.XUEHaigaoresignedasthedeputygeneralmanageroftheCompanyandafterresignation,continuedtoworkintheCompanywiththefocusontheoperationandmanagementoftheCompany’scommunicationbusiness.

III.Job Titles

Abouttheeducation backgroundsand main work experiencesoftheexisting directors,supervisorsand seniormanagementoftheCompany and theircurrentjob dutiesin theCompany

(I)Directors

Ms.WANGLaichun,54 years old,fromHong Kong,China,holds the EMBAfromShenzhen Graduate SchoolofTsinghua

University,and works as the Chairman ofthe Board and GeneralManagerofthe Company.She served as a DirectorofShenzhenHigh-tech Industry Association and Vice Chairman ofShenzhen Electronics Industry Association.Ms.WANGhad worked in theWiring Division ofFoxconn underTaiwan Hon Haifornearly ten years,and leftFoxconn in 1997 to startherown business.In 1999,Ms.WANGLaichun and Mr.WANGLaisheng jointly purchased the equity in Luxshare Limited.They founded Luxshare PrecisionIndustry (Shenzhen)Co.,Ltd.in 2004 through investmentby Luxshare Limited and worked as the Board Chairman.Ms.WANGLaichun isthememberofthe1st,2nd and 3rd sessionsoftheboard ofdirectors.

Mr.WANGLaisheng,57 years old,fromHong Kong,China,works as Vice Chairman ofthe Board ofthe Company and theBoard Chairman ofXiexun Electronic (Ji’an)Co.,Ltd.and ofXiechuang Precision Industry (Shenzhen)Co.,Ltd..He served astheManaging Director of Shenzhen Quality Association and a Director of Guangdong Laboratory Federation.Mr.WANGLaishengventured into individualbusinesssince themid-1980sand hasmore than ten yearsofbusinessexperience;Mr.WANGLaisheng andMs.WANGLaichun jointly purchase the equity in Luxshare Limited in 1999 and in 2004 he founded Luxshare Precision Industry(Shenzhen)Co.,Ltd.with Ms.WANGLaichun.Mr.WANGLaisheng isa memberofthe 1st,2nd and 3rd sessionsofthe board ofdirectors.

Mr. LIBin, 44 years old, Chinese nationality, has a master’s degree in Industrial Engineering fromShanghai JiaotongUniversity,and works as a director,deputy general manager and core technician of the Company.He joined Fuhong PrecisionCompany in July 2000,responsiblefortechnicaldevelopmentand managementofhigh-frequency datacableconnection components,and joined Lanto ElectronicLimited in 2009,responsibleforproductdevelopmentand management.

YEYiling,50 years old,a citizen ofTaiwan,China,has a bachelor’s degree in Accounting fromSoochowUniversity,andworksasa director,deputy generalmanagerand CFOofthe Company.Ms.YEYiling had worked asa seniorauditorin the AuditorDepartmentin PricewaterhouseCoopersfromJuly 1996 to June 2000,and fromJuly 2000 to November2008,successively workedas the FinancialDirector in Walsin Lihua Corp.,Ultra Source Technology Corp.and SYNMOSABIOPHARMACOPORATION,listed companiesin Taiwan.Shejoined theCompany in 2011.Ms.YEYiling obtained thequalification to work in Chinese mainlandin November2011.

Mr.XUHuaibin,64 years old,Chinese nationality,holds a master’s degree.He works asthe Deputy Secretary-GeneraloftheEquity Financing and Listing ProfessionalCommittee ofChina SecuritiesLawResearch Association.He iscurrently an IndependentDirectorofthe Company.Mr.XUHuaibin wassentto a Hong Kong accounting firmto study the western independentauditpracticewithoutcharge in the early 1990s.Afterthat,he worked in accounting firmsboth atMainland and Hong Kong and theiraccountingcompaniesastheVice President,Deputy GeneralManager,Managing Directorand among others.He hasobtained the qualificationsas a certified public accountantand certified tax agent,and the qualification as an IndependentDirector of the Shenzhen StockExchange.Mr.XUHuaibin isamemberofthe3rd sessionsoftheboard ofdirectorsoftheCompany.

Mr.LINYifei,46 years old,Chinese nationality,has a master’s degree in the Laws fromthe University ofAberdeen UnitedKingdomand doctoraldegree in Laws fromXiamen university.He is currently the ChiefConsultantofYI&PARTNERSand anIndependentDirector ofLuxshare Precision.Mr.LINYifeihas specialized in legalpractice and research for about20 years,andhandled a large numberofinternationaland domestic arbitration casesinvolving variousfieldsofcommercialaffairs.Meanwhile,hehas compiled and translated many books and has rich experience in commercialdispute resolution practice and research.Mr.LINworks as an arbitratorin many arbitration institutions both athome and abroad including the InternationalArbitration CourtoftheInternationalChamberofCommerce (ICC),Hong Kong InternationalArbitration Center(HKIAC),ShanghaiInternationalEconomicand Trade Arbitration Commission,South China InternationalEconomic and Trade Arbitration Commission,Wuhan Arbitration

Commission,Xiamen Arbitration Commission,Zhengzhou Arbitration Commission,and isalso aDrectorin ChinaSociety ofPrivateInternationalLawand theManaging DirectoroftheArbitration LawResearch Association ofGuangdong Province LawSociety.Mr.LINYifeihasobtained thequalification to work asan IndependentDirectoroftheShenzhen Stock Exchange,and isamemberofthe3rd session oftheboard ofdirectorsoftheCompany.

Ms. ZHANGYing, 58 years old, Chinese nationality, has a doctoral degree in the Laws fromWuhan University andpostdoctoraldegree in the Laws fromthe Chinese Academy ofSocialSciences.She works as an Associated Professorin the LawSchoolofShenzhen University and an IndependentDirectorofLuxshare Precision.Ms.ZHANGYing worked asa lecturerin ChinaUniversity ofGeosciencesin 1984 and in 1994,an assistantresearch in theInstituteofPoliticalScienceand LawofWuhan AcademyofSocialSciences.She has served asthe Managing Directorofthe China European LawResearch Association and an arbitratorofthe Shenzhen Arbitration Commission since 2009.Ms.ZHANGYing has obtained the qualification to work as an IndependentDirectoroftheShenzhen Stock Exchange.

(II)Supervisors

Ms. XIAYanrong, 40 years old, Chinese nationality, has a bachelor’s degree in Finance Management. She works as asupervisorofthe Company.Ms.XIAworked atthe Finance Departmentin 3CEMSGroup PRIMETechnology (Guangzhou)Co.,Ltd.fromJanuary 2003 to April 2006,and fromApril 2006 to April 2009,at the Finance Department in Dachang ElectronicTechnology (Suzhou)Co.,Ltd.ofP-TWO.She hasserved the Company since April2009.Specifically,she successively worked asthe Head ofFinance Departmentin Lanto Electronic Limited,the Head ofFinance Departmentin Luxshare Precision,and the HeadofCreditManagementDepartmentin Luxshare Precision.Currently,she works as the DirectorofCentralFinance DepartmentandCreditManagementDepartmentoftheCompany.

Ms.MORongying,41 yearsold,Chinese nationality,hasadegree in BusinessAdministration.Sheworksasa supervisoroftheCompany.Ms.MOworked in the Head of Planning Departmentin Thomson Multimedia (Dongguan)Co.,Ltd.,and has servedLuxsharePrecision fromJune2007.Currently,sheworksastheHead ofCentralCustomsDepartmentoftheCompany.

Ms.YIPeizan,36 years old,Chinese nationality,joined in the Company in 2004 and worked atFinance DepartmentoftheCompany.Currently,she worksasa supervisorofthe Company.Ms.YIPeizan isa memberofthe 1st,2nd and 3rd sessionsoftheboard ofsupervisors.

(III)SeniorManagement

TheresumeofMs.WANGLaichun isseen in the“Directors”ofthisSection.

TheresumeofMs.LIBin isseen in the“Directors”ofthisSection.

TheresumeofMs.YEYiling isseen in the“Directors”ofthisSection.

Mr.HUANGDawei,49 years old,a citizen ofTaiwan,China,has a master’s degree in IndustrialEngineering fromNationalTsing HuaUniversity.Currently,heworksastheDeputy GeneralManagerand the Board Secretary oftheCompany.He had workedin a Fortune 500 company,responsible for market developmentand operation management and in June 2013,joined LuxshareElectronic Technology (Kunshan)Co.,Ltd.underLuxshare Precision asthe LegalRepresentative,a directorand GeneralManager.

Mr.HUANGhas obtained the Qualification Certificate for Board Secretary issued by the Shenzhen Stock Exchange, and hisqualification meetsthe requirementsofRulesGoverning the Listing ofShareson Shenzhen Stock Exchange and otherrelevantlawsand regulationsaswellastheArticlesofAssociation.

Mr.WUTiansong,51 yearsold,acitizen ofTaiwan,China,hasabachelor’sdegreefromNationalTaiwan University ofScienceand Technology.Currently,heworksastheHead ofFinanceDepartmentofLuxsharePrecision Industry Co.,Ltd..Ms.WUTiansong had worked asaseniorauditorin theAuditorDepartmentin DeloitteToucheTohmatsu Limited fromAugust1996 to

August1999,and fromSeptember1999 to March 2009,successively worked in Underwriting DepartmentofTaiwan Yuanda

SecuritiesCorp.,and in thelisted company Taiwan P-TWOINDUSTRIESINCand UNIWILLCOMPUTERCORP.astheFinanceDirector,and in IchinaTechnologies,Inc.astheFinanceDirector.Hejoined theCompany in 2011.

Positionsheld in theshareholders

√Applicable□N/A

Nameof personnel	Nameofshareholder	Positionsheldintheshareholder	Officetermfrom	Officetermto	Receiveremunerationsorallowancesfromshareholders?
WANG Laichun	LuxshareLimited	Director	August27,1999		No
WANG Laisheng	LuxshareLimited	Director	August27,1999		No

Explanationson thepositionsheld in otherentities

√Applicable□N/A

Nameof personnel	Nameofotherentities	Positionsheldinotherentities	Officetermfrom	Officetermto	Receiveremunerationsorallowancesfromotherentities?
WANGLaichun	XiexunElectronic(Ji’an)Co.,Ltd.	ViceChairmanoftheBoard	November21.2005		No
WANGLaichun	FujianJKWiringSystemsCo.,Ltd.	BoardChairman	June18,2012		No
WANGLaichun	BodyControlSystems	BoardChairman	July18,2018		No
WANG Laisheng	XiexunElectronic(Ji’an)Co.,Ltd.	BoardChairman	November12,2005		No
WANG Laisheng	LantoElectronicLimited	ViceChairmanoftheBoard	May12,2011		No

WANG Laisheng	KunshanLuxsharePrecisionIndustryCo.,Ltd.	Director	October25,2011	No
WANG Laisheng	DonguanXuntaoElectronicCo.,Ltd.	ViceChairmanoftheBoard	July10,2012	No
WANG Laisheng	DongguanLidePrecisionIndustryCo.,Ltd.	BoardChairman	August16,2012	No
WANG Laisheng	KunshanLuxsharePrecisionIndustryCo.,Ltd.	ViceChairmanoftheBoard	October25,2011	No
WANG Laisheng	SuiningLuxsharePrecisionIndustryCo.,Ltd.	ExecutiveDirector	January11,2013	No
WANG Laisheng	XingningLuxsharePrecisionIndustryCo.,Ltd.	ExecutiveDirector	November19,2013	No
WANG Laisheng	LuxsharePrecisionIndustry(Chuzhou),Ltd.	ExecutiveDirector	March24,2014	No
WANG Laisheng	FengshunLuxsharePrecisionIndustryCo.,Ltd.	ExecutiveDirector	July4,2014	No
WANG Laisheng	DongguanLuxsharePrecisionIndustryCo.,Ltd.	BoardChairman	November27,2015	No
WANG Laisheng	JiangxiLuxshareIntelligentManufactureCo.,Ltd.	Director	December25,2015	No
Explanationson thepositions heldinother entities	None

Penalty by regulatorson theCompany’scurrentdirectors,supervisorsand seniormanagement,including thoseresigned in the

reporting period and in recentthreeyears

□Applicable√N/A

IV.Remuneration ofdirectors,supervisorsand seniormanagement

Decision-making process,determination basisand actualpaymentofremuneration ofdirectors,supervisorsand seniormanagement

During the reporting period, the Company implemented the performance assessment for its directors, supervisors and seniormanagement,and paid themthe annualincome under the“monthly salary +year-end bonus”model.The Company assessed thedirectors,supervisors and senior managementatthe end ofthe year based on the business conditions ofthe Company and workperformance of individuals, and determined their annual income depending on the assessment results. The allowance for anindependentdirectorisRMB80,000 peryear,and the costsfortravelling and office incurred by performance ofhisdutiesare borneby theCompany.

Remuneration ofdirectors,supervisorsand seniormanagementduring thereporting period

In:RMB’0000

Name	Position	Gender	Age	Status	TotalremunerationreceivedfromtheCompany(includingtax)	ReceivetheremunerationfromtheCompany’srelatedparties?
WANGLaichun	BoardChairmanandGeneralManager	Female	54	Current	240	No
WANGLaisheng	ViceChairmanoftheBoard	Male	57	Current	240	No
LIBin	DirectorandDeputyGeneralManager	Male	44	Current	180	No
YEYiling	DirectorandDeputyGeneralManager	Female	50	Current	141.79	No
XUHuaibin	IndependentDirector	Male	64	Current	8	No
LINYifei	IndependentDirector	Male	46	Current	8	No
ZHANGYing	IndependentDirector	Female	58	Current	8	No
XIAYanrong	Supervisor	Female	40	Current	48	No
MORongying	Supervisor	Female	41	Current	42	No
YIPeizan	Supervisor	Female	36	Current	9	No
HUANGDawei	DeputyGeneralManagerandBoardSecretary	Male	49	Current	97.15	No
WUTiansong	CFO	Male	51	Current	119.52	No
XUEHaigao	DeputyGeneralManager	Male	42	Resigned	98.71	No
XIONGTengfang	DeputyGeneralManager	Male	39	Resigned	95.68	No
Total	--	--	--	--	1,335.85	--

Equity incentivesawarded to theCompany’sdirectorsand seniormanagement

√Applicable□N/A

Unit:shares

Name	Position	Numberofexercisablesharesduringthereportingperiod	Numberofsharesexercisedduringthereportingperiod	Exercisepriceofthesharesexercisedduringthereportingperiod(RMB/share)	Marketpriceattheendofthereportingperiod(RMB/share)
LIBin	DirectorandDeputyGeneralManager	337,992	337,992	13.70	56.12
LIBin	DirectorandDeputyGeneralManager	878,780	878,780	10.28	56.12
YEYiling	DirectorandDeputyGeneralManager	135,196	135,196	13.70	56.12
YEYiling	DirectorandDeputyGeneralManager	320,754	320,754	10.28	56.12
HUANG Dawei	DeputyGeneralManagerandBoardSecretary	219,695	219,695	10.28	56.12
WU Tiansong	CFO	101,400	101,400	13.48	56.12
WU Tiansong	CFO	131,817	131,817	10.28	56.12
WU Tiansong	CFO	135,196	101,400	13.70	56.12
XIONG Tengfang	DeputyGeneralManager	490,088	270,393	13.70	56.12

XUEHaigao	DeputyGeneralManager	337,992	337,992	13.70	56.12
XUEHaigao	DeputyGeneralManager	439,390	439,390	10.28	56.12
Total	--	3,528,300	3,274,809	--	--	0	0	0	--	0
Remarks(ifany)		Duringthereportingperiod,thenumberofexercisablesharesfordirectorsandseniormanagementoftheCompanytotals3,528,300,representing0.05%oftotalsharecapitaloftheCompanyattheendofthereportingperiod.ThedirectorsorseniormanagementotherthanWUTiansongasaseniorofficerandXIONGTengfangasaresignedseniorofficerhaveexercisedalltheshares,withthenumberoftotalexercisedsharesbeing3,274,809.Thevestingconditionsweremetinthefirstvestingperiodof2018StockOptionIncentivePlanoftheCompany,andtheseniormanagementexercised101,400sharesatthepriceofRMB13.48pershare;thevestingconditionsweremetinthesecondvestingperiodof2018StockOptionIncentivePlan,andthedirectorsandseniormanagementexercised1,990,436sharesintheaggregateatthepriceofRMB10.28pershare;andthevestingconditionsweremetinthefirstvestingperiodof2019StockOptionIncentivePlanoftheCompany,andthedirectorsandseniormanagementexercised1,182,937sharesintheaggregateatthepriceofRMB13.7pershare.

V.EmployeesoftheCompany

1.Numberofemployees,roletypeand educationalbackground

Numberofcurrentemployeesintheparentcompany(person)	515
Numberofcurrentemployeesinmajorsubsidiaries(person)	171,895
Totalnumberofcurrentemployees(person)	172,410
Totalnumberofemployeesreceivingasalaryduringthe reportingperiod(person)	172,410
Numberofretiredemployeesforwhichtheparentcompanyand majorsubsidiarieshavetobearexpenses(person)	0

Roletype
Category	Number(person)
Productionpersonnel	143,902
Salespersonnel	2,300
Professionalpersonnel	15,154
Financialpersonnel	211
Administrativepersonnel	10,843
Total	172,410

Educationalbackground

Category	Number(person)
Bachelor’sdegreeandabove	9,190
Associate’sdegree	16,034
Highschool,technicalsecondaryschoolandbelow	147,186
Total	172,410

2.Remuneration policy

The Company has formulated the management methods on employee salary, performance and yea-end bonus, providedemployees with competitive salary guarantee in a scientific an reasonable manner, and set up the complete employee salarymanagementsystem,contributed to“five insurances and one housing fund”foremployees,and timely paid employees salaries instrict accordance with the relevant laws and regulations, and resolutely eliminated the occurrence of bonded labor. To helpemployeesbetterunderstand the degree ofmatching between job responsibilitiesand theirown capabilities,the Company hasbuiltamulti-dimensional performance evaluation systemthat includes employee self-evaluation and superior evaluation, so as toobjectively and comprehensively reflect employees’annual performance. The Company conducted the employee performancecommunication activities annually to ensure thateach employee can receive sufficientsupportand resources related to the careerdevelopmentin Luxshare Precision,and to enhance and optimize the work experience of every employee.We have establishedvarious employee compensation structures, including year-end bonuses, project awards, equity incentive for core cadres andoutstanding employees. During the reporting period, the Company continued to optimize the performance appraisal and fullyevaluated thework performance oftheteamand individuals,effectively improving theexecution ability and responsibility awarenessofemployees.Thisisconducive to retaining and attracting outstanding talentsto provide human resourcesguarantee forthe growthoftheCompany.

3.Training plan

The Company wascommitted to staffcareerplanning and talentcultivation.Ithasestablished a perfecttalenttraining systemtoattractand motivate moreexcellenttalentsand promotethecommon growth ofemployeesand theGroup.Also,theCompany hassetup an online and offline learning platformto conductthe multi-dimensionalspecialtraining thatisdirected toward differenttypesofemployeesand newprojects.With thisplatform,the Company provided hierarchicaland distincttargeted training forallemployees,and offered different training series for different groups of people and needs. For example, for senior, middle and grassrootsmanagers and key high-potentialreserve talents,the Company focused on the“TalentCultivation Series”training,aiming to createan efficientand dynamic staffteam;and regarding the talentsin key fieldssuch asmanufacturing,R&Dtechnology,marketing andsupply chain, we focused on the“Ability Improvement Series”training, continuously enhancing professional capabilities ofemployees in different positions. Furthermore, the Company carried out the school-enterprise cooperation and encouraged theemployeesto obtain the professionalqualification recognition fromthe Company and society,so asto improve the production leveland socialrecognition ofthe Company asa whole.Meanwhile,we strived to create the“JushiSeries”training and build the learningand communication platforms including“Luxshare Classroom”and“Management Forum”, offering opportunities to excellentLuxshare employees for showing themselves. With these efforts, we created a good learning environment and promoted theintegration and communications between the personnel.In addition,to assistthe Company in the implementation ofkey strategiesand changesin acertain period oftime,weofferthe“ChangeSeries”training based on thebusinessneeds.

In order to standardize the employee training management, the Company has formulated the Education and TrainingManagementMeasures,Education and Training Operating Procedures,and InternalLecturer ManagementMeasures and updatesthem,which clearly covertraining systemsfromemployee induction,orientation,in-service,transferto promotion;and each factoryhas formulated the Education and Training ManagementProcedures and corresponding managementmeasures in accordance withthe Group’smanagementstandards,and also established the annualtraining plansforthe factory and itsvariousdepartmentsbasedon its annualdevelopmentplanning,effectively enhancing the core competitiveness ofemployees and the Company and achievingthewin-win goalofimproving employees’professionalability and realizing thesustainablegrowth oftheCompany.

4.Laboroutsourcing

□Applicable√N/A

Section XCorporateGovernance

I.BasicIntroduction

The Company has always been committed to promoting the establishmentand improvementof a modern corporate system,regulating the operation ofthe listed company and perfecting the corporate governance structure.During the reporting period,theCompany kepton perfecting thecorporate governance structure,established asound corporate system,regulated corporate operation,strengthened information disclosure,actively conducted investorrelationship managementand improved corporate governance levelin strictaccordance with the requirements of the Companies Law,the Securities Law,the Rules Governing Listing ofStocks onShenzhen Stock Exchange,the Guidelines for Articles ofAssociation ofListed Companies,the Code ofCorporate Governance ofListed Companies,theGuidelinesoftheShenzhen Stock ExchangeforCompliantOperation ofthe Listed Companiesand otherlaws,regulationsand regulatory documents.

(I)Shareholdersand Shareholders’GeneralMeeting:The Company standardized the convening,holding and voting proceduresofshareholders’generalmeetingsin strictaccordance with the CompaniesLaws,the ArticlesofAssociation,the RulesofProcedureforthe Shareholders’GeneralMeeting and otherprovisionsand requirementsto equally treatallshareholders so thatshareholders,especially smalland mediumshareholders,can fully exercise theirrightsby using a combination ofon-site and online voting.Whenthe shareholders’generalmeeting reviews the related party transactions,the related shareholders were recused fromvoting,whichdoesnotdamage the interestsofshareholders;when voting on proposalsthataffectthe interestsofsmalland mediuminvestors,thevotes ofsmalland mediuminvestors are counted separately.The shareholders’generalmeetings were convened and held by theboard ofdirectorsoftheCompany and witnessed by thelawyerson site.

(II)Controlling Shareholdersand the Company:The Company isindependentofcontrolling shareholdersin termsofbusiness,assets,personnel,body and finance,etc.,and the Company’s board of directors,board of supervisors and other internalbodiesoperated independently.The controlling shareholdersoftheCompany can strictly regulatetheirown behavior,neitherinterfere in theCompany’s decision-making and business activities directly or indirectly bypassing the shareholders’general meeting,nor usedcapitalofthelisted company fornon-operating purposes.

(III)Directors and the Board of Directors: The Company elected directors and engaged independent directors in strictaccordance with the CompaniesLawand the ArticlesofAssociation.The Company hasseven directors,including three independentdirectors,who allare the experts in the fields of corporate managementand financialaccounting.The number of directors andcomposition oftheboard ofdirectorscomply with the requirementsofthelawsand regulationsaswellastheArticlesofAssociation.The Company’s board of directors has four special committees, including Audit Committee, Strategy Committee, NominationCommittee and Remuneration and AppraisalCommittee,with reasonable member structure,providing scientific and professionalopinionsand referencesforthe decision-making ofthe board ofdirectors.The board ofdirectorsconvened and held the meetingsofthe board ofdirectorsin strictwith the ArticlesofAssociation and the RulesofProcedure forthe Board ofDirectorsto implementthe resolutionsadopted by theshareholders’generalmeeting;alldirectorscan fulfilltheirdutiesdiligently,scrupulously attended themeetings ofthe board ofdirectorsand the shareholders’generalmeetings,and safeguarded the legitimate rightsand interestsoftheCompany and theshareholders.

(IV)Supervisors and the Board ofSupervisors:The Company’s board ofsupervisors elected supervisors in strictaccordance

with the election procedures provided in the Companies Lawand the Articles ofAssociation.The Company has three supervisors,including the chairman ofthe board ofsupervisors.The numberofsupervisorsand composition ofthe board ofsupervisorscomplywith the requirementsofthe lawsand regulationsaswellasthe ArticlesofAssociation.The board ofsupervisorsconvened and heldthe meetings of the board of supervisors in strictwith the Articles ofAssociation and the Rules ofProcedure for the Board ofSupervisors; allsupervisors seriously fulfilled their duties,effectively monitored the legality and compliance of performance ofduties as the Company’s finance personnel,directors and seniormanagementin good faith and with due diligence and expressedindependentopinions,and safeguarded thelegitimaterightsand interestsoftheCompany and theshareholders.

(V)Performance Appraisal and Incentive Restraint Mechanism: To further establish a sound incentive mechanismof theCompany,strengthen the conceptofsustainable developmentbetween the Company and the managementand the core employees,the Company implemented the equity incentive plan to strengthen the benefitsharing and restrain mechanismbetween shareholdersand core businesspersonnel,maintain the stability ofthe managementteamand key businesspersonnel,ensure the the realization ofthe Company’sdevelopmentstrategy and businessobjectives and long-termstable growth ofthe Company.The appointmentoftheCompany’sseniormanagementisopen and transparent,which complieswith theprovisionsofthelawsand regulations.

(VI)Stakeholders:The Company fully respected the legitimate rightsand interestsofstakeholdersand realized the coordinationand balance of interests of the society,shareholders,the Company and employees to jointly promote the sustainable and stabledevelopmentoftheCompany.

(VII)Information Disclosure and Transparency:The Company performed information disclosure obligationsin a true,accurate,timely and complete mannerin strictaccordance with the provisionsofthe relevantlaws,regulationsand theInformation DisclosureManagement Measures of the Company, and designated the Securities Times and Cninfo (www.cninfo.com.cn)to disclose theCompany’sinformation;the Company strictly protected the confidentiality ofundisclosed information and earnestly registered andfiled the insiders who have access to inside information, established a filing systemfor insiders who have access to insideinformation,and timely submitted the same to the regulators forfiling as required.Meanwhile,the Company strictly regulated thereporting ofthe information ofthe Company to externalinformation users.When receiving specific visitors,the Company seriouslydid so in strictaccordance with the relevantrequirements,required visitors to sign the LetterofCommitment,and timely uploadedthe relevantresearch records to the“e-interaction”platformofthe Shenzhen Stock Exchange for disclosure.During the reportingperiod,the Company did notuse inside information to trade its stocks.Meanwhile,the Company set up the specialcolumn ofinvestor phone and investor relationship managementand designated a person to be responsible for timely communication withinvestors.Furthermore,the Company keptcontactand communication with regulatorsin an active and timely manner,reported theCompany’s relevantmatters so as to accurately gain an understanding of regulatory requirements of information disclosure andfurtherimprovetheCompany’stransparency and quality ofinformation disclosure.The Company disclosed theinformation in a true,accurate,complete and timely mannerin strictcompliance with the requirements on the relevantcontents and format,and ensuredthatallshareholderscan fully obtain theinformation oftheCompany through variouschannels.

Are there any significantdifferencesbetween the Company’sactualgovernance statusand the regulatory documentson governanceoflisted companiesissued by theCSRC?

□Yes√No

There isno significantdifference between the Company’sactualgovernance status and the regulatory documents on governance oflisted companiesissued by theCSRC.

II. Details of the Company’s Separation fromControlling Shareholders with respect toBusiness,Personnel,Assets,Organization and FinancialAffairs

During the reporting period,the Company regulated itsoperation in strictaccordance with the CompaniesLawand the ArticlesofAssociation,and gradually improved itscorporategovernance structure,wasindependentfromcontrolling shareholdersin termsofbusiness,assets,personnel,body and finance to realize independentbusiness and self-management,and had independentresearchand development,production and salessystems.During thereporting period,theCompany’sproduction and operation wasstableanditsinternalbody wasperfect,and theCompany can,therefore,operatein an independentand compliantmanner:

(1)Business

The Company had complete corporate property rights and independentR&D,production and sales systems,conducted thebusiness,accounting and decision-making independently,assumed liabilitiesand risksindependently and carried outproduction andoperation activitiesindependentofshareholdersand otherrelated parties.

(II)Assets

The Company is a company limited by shares established through overallchange according to law,and has independentandcomplete assets.The Company wentthrough the formalitiesforchangesin related assetsand equity according to law.The Companyneitherprovided the guaranteesforthe debtsofshareholderswith itsassetsorreputation,norlentthe borrowingsand creditlinesinthe name of the Company to each shareholder. The Company has complete control over all assets, and there was no anyappropriation ofassetsorcapitalby thecontrolling shareholders,thereby harming theinterestsoftheCompany.

(III)Personnel

The Company’s directors, supervisors and senior management were legally elected and generated in accordance with theCompanies Laws,the Articles ofAssociation and other relevantlaws,regulations and rules;the Company’s senior management(excluding independentdirectors)allworked in theCompany asfull-timeofficersand received remuneration formtheCompany,anddid nothold any positions other than director and supervisor in the related shareholders and other entities with same or similarbusiness.The Company had independent employees,managed their remuneration and social security independently, and had acompletemanagementsystemand mechanism.

(IV)Body

The Company established a complete governance structure including the shareholders’generalmeeting,the board ofdirectorsand the board of supervisors, and an independent and complete operation and management body that meets the needs of theCompany’sown developmentand actualsituation.Such bodiesexercised theirpowersindependently in accordance with the ArticlesofAssociation and internalmanagementsystem.Since its establishment,the Company’s production,operation and office bodiesoperated independentofshareholders.

(V)Finance

The Company set up an independent financial accounting department and an internal audit department, established an

independentaccounting systemand a compliantfinancialmanagementsystem,which independently made financialdecisions.Sinceits inception, the Company opened accounts in the bank independently, made tax declarations and performed tax obligationsindependentofshareholdersaccording to law,and signed contractswith externalpartiesindependently.

III.HorizontalCompetition

□Applicable√N/A

IV. Details About the Annual Shareholders’General Meeting and ExtraordinaryShareholders’GeneralMeeting Held During theReporting Period

1.Detailsabouttheshareholders’generalmeeting during thereporting period

Meeting	Meetingtype	Investorparticipation%	Dateconvened	Disclosuredate	Disclosureindex
2019Annual Shareholders’ GeneralMeeting	AnnualShareholders’GeneralMeeting	52.64%	May13,2020	May14,2020	AnnouncementofResolutionsof2019AnnualShareholders’GeneralMeetingofLuxsharePrecision(AnnouncementNo.:2020-041)disclosedatSecuritiesTimesandCninfo(www.cninfo.com.cn)
2020First Extraordinary Shareholders’ GeneralMeeting	AnnualShareholders’GeneralMeeting	50.88%	July27,2020	July28,2020	AnnouncementofResolutionsof2020FirstExtraordinaryShareholders’GeneralMeetingofLuxsharePrecision(AnnouncementNo.:2020-060)disclosedatSecuritiesTimesandCninfo(www.cninfo.com.cn)

2.Extraordinary shareholders’generalmeeting requested by the preferred shareholder with restitution ofvoting right

□Applicable√N/A

V.PerformanceofIndependentDirectorsDuring theReporting Period

1.Detailsofindependentdirectors’attendance atmeetingsofboard ofdirectorsand shareholders’generalmeetings

DetailsofIndependentDirectors’AttendanceatMeetingsofBoardofDirectorsandShareholders’GeneralMeetings
Independentdirector	Themeetingsoftheboardofdirectorsrequiredtoattendduringthereportingperiod(times)	Attendanceinperson(times)	Attendancebywayoftelecommunication(times)	Entrustedpresence(times)	Absence(times)	Nonattendanceinpersonfortwoconsecutivetimes	Attendanceinshareholders’generalmeeting
XUHuaibin	13	2	11	0	0	No	2
LINYifei	13	2	11	0	0	No	2
ZHANGYing	13	2	11	0	0	No	2

Explanationson directorswho do notattend in-person two board meetingsin arow.

N/A

2.Detailson independentdirectorsobjecting to relevantevents

Did independentdirectorsobjectto relevantevents?

□Yes√No

During thereporting period,no independentdirectorsobjected to relevanteventsoftheCompany.

3.Otherdetailsabouttheperformanceofindependentdirectors

Wasadviceto theCompany fromindependentdirectorsadopted?

√Yes□No

ExplanationsofadviceofindependentdirectorsfortheCompany being adopted

During thereporting period,theindependentdirectorsofthe Company seriously and fully conducted theirdue diligence and activelyperformed theirdutiesbased on the standpointofindependentjudgment,in a mannerresponsible to the Company,allshareholdersand investors and in lightof the principle of seeking truth fromfacts,and successively expressed independentopinions on thefollowing 28 significantmatters:

1.IndependentOptionson GrantofStock Optionsto Reserved Granteesof2019 Stock Option Incentive Plan ofLuxshare Precision

Industry Co.,Ltd.(changeofname);

2.IndependentOpinionson 2019 InternalControlSelf-Evaluation ReportoftheCompany;

3.IndependentOpinionson RenewalofAppointmentofAccounting Firm;

4.IndependentOpinionsConcerning theSpecialExplanationson Appropriation ofFundsby theRelated PartiesoftheCompany andProvision ofGuarantees;

5.IndependentOpinionsConcerning theSpecialReporton theDepositand ActualUseoftheFund Raised bytheCompany;

6.IndependentOpinionson Related Party TransactionsIncurred by theCompany in 2019

7.IndependentOpinionson 2019 ProfitDistribution Plan oftheCompany;

8.IndependentOpinionson theApplication by theCompany foraComprehensiveCreditLineto theBank;

9.IndependentOpinionson theOfferby theCompany ofGuaranteesto Wholly-owned Subsidiaries;

10.IndependentOpinionson theConductofForeign ExchangeDerivativesTrading Business;

11.IndependentOpinionson thePurchaseofWealth ManagementProductswith IdleSelf-owned Funds;

12.IndependentOpinionson theApplication forIssuanceofUltra-short-termFinancing Bondsand Medium-termNotes;

13.IndependentOpinionson theForecastsofRoutineRelated Party Transactionsin 2020;

14.IndependentOpinionson Changesin Accounting Policies;

15.IndependentOpinionson theApplication foraComprehensiveCreditLineto theBank;

16.IndependentOpinionson theAdjustmentto ExercisePricesand Quantity of2018 and 2019 Stock Option IncentivePlansand theCancellation ofSomeStock Options;

17.IndependentOpinionson theAchievementofVesting ConditionsfortheFirstVesting Period Granted under2019 Stock OptionIncentivePlan;

18.IndependentOpinionson Extending theValid TermoftheResolutionsofShareholders’GeneralMeeting in respectofPublicIssuanceofConvertibleCorporateBondsand Valid TermofAuthorization;

19.IndependentOpinionson Signing ofAcquisition Framework Agreementand Related Party Transactions;

20.IndependentOpinionsConcerning theSpecialExplanationson Appropriation ofFundsby theControlling Shareholdersand

OtherRelated PartiesoftheCompany and Provision ofGuaranteesby theCompany;

21.IndependentOpinionson theApplication foraComprehensiveCreditLineto theBank;

22.IndependentOpinionson theOfferofGuaranteesto Wholly-owned Subsidiaries;

23.IndependentOpinionsConcerning theProposalon FurtherClarifying theSpecificPlan forPublicIssuanceofConvertible

CorporateBondsoftheCompany;

24.IndependentOpinionsConcerning theProposalon theCompany’sPublicIssuanceofConvertibleCorporateBondsforListing;25.IndependentOpinionson Signing ofAcquisition Framework Agreementand Related Party Transactions;

26.Independent Opinions Concerning the Proposal on the Use of Raised Funds to Increase the Capital of the Wholly-ownedSubsidiary Lanto Electronic Limited and the Proposalon the Use ofRaised Funds to Increase the CapitalofLuxshare ElectronicTechnology(Kunshan)Co.,Ltd.;

27.IndependentOpinionson theAdjustmentto Exercise Quantity of2018 Stock Option IncentivePlan and theCancellation ofSomeStock Options;and

28.IndependentOpinions on the Achievementof Vesting Conditions for the Second Vesting Period Granted under 2018 StockOption IncentivePlan;

The independentopinionsgiven by the independentdirectorsofthe Company forthe above mattersprovided an importantbasisforthe board ofdirectors ofthe Company to make comprehensive,objective and fairdecision,which notonly safeguards the overallinterestsoftheCompany,butalso reflectsand safeguardsthelegitimaterightsand interestsofsmalland mediumshareholders.

VI. Performance of Special Committee Affiliated to the Board of Directors During theReporting Period

1.PerformanceofAuditCommittee

(1)During the reporting period,the AuditCommittee actively performed its duties,monitored the Company’s internalauditsystemand implementation thereof, reviewed the financial information and provided the guidance for the Company’s auditdepartmentin accordance with the provisionsofthe Companies Law,the Code ofCorporate Governance ofListed Companies andthe Work RulesforAuditCommittee ofthe Board ofDirectors,supervised the auditby the accounting form,and played itsdue role.Upon carefully checking the Company’sinternalcontrol,the appropriation offundsby the Company’scontrolling shareholdersandotherrelated partiesand thedepositand actualuseoftheCompany’sraised funds,etc.,theAuditCommitteebelievesthattheinternalcontrolsystemthe Company has established complies with the relevantregulations and can effectively controlrelevantrisks,andfurtherbelievesthatthefinancialinformation compiled by theCompany were prepared in allmaterialrespectsin accordancewith therelevantprovisionsofregulators,and recognizesthattheCompany strictly implemented thedepositsystemofthespecialaccountforraised funds,and effectively executed theescrowagreementoftheraised funds.

(2)AuditCommittee’sSummary on theAuditoftheCompany by BDOChinaShu Lun Pan Certified PublicAccountantsLLPin 2020

When providing the audit service for the Company in 2020,BDOChina Shu Lun Pan Certified Public Accountants LLPfollowed the independent,objective and fairprofessionalstandards,and was competentformaking an objective and fairevaluationon the Company’sfinancialstatementsand operating conditionswith sufficientaudittime,through reasonable allocation ofauditorsand in arigorousand responsiblemanner,and successfully completed theauditwork entrusted by theCompany.

(3)ResponsibilitiesoftheAuditCommitteein Auditof2020 AnnualReport

In the process ofthe auditof2020 FinancialReport,the AuditCommittee determined the auditschedule through negotiatingwith BDOChina Shu Lun Pan Certified Public Accountants LLP,reviewed the financialstatements preliminarily prepared by theCompany before the CPAsbegan to conductthe auditand gave written opinionsthereon;when reviewing the auditconducted by theCPAs annually,itsupervised the auditprogress,maintained the contactand communicationswith auditaccountantsand exchangedopinions on the problems identified in the audit so as to ensure the independence and on-time completion of the audit. Theaccounting firmcompleted the finalized auditor’s reporton time according to the overallauditplan and issued the relevantspecialauditreport.

(4)The AuditCommittee played an active role in the processofforeign investment.During the reporting period,the Companyinvested oma project,and the AuditCommittee provided professionalopinions forthe board ofdirectorsto make decisions in theearly stageoftheproject,and played aprominentpartin thesmooth progressoftheprojectand theprevention ofprojectrisks.

2.PerformanceofStrategy Committee

The Strategy Committee actively performed its duties in accordance with the provisions ofthe Companies Law,the Code ofCorporateGovernance ofListed Companies,theDetailed Working RulesforStrategy CommitteeoftheBoard ofDirectorsand otherrelevantregulations.During the reporting period,the Strategy Committee held the relevantmeetings,conducted an in-depth analysisand research of the industry in which the Company operates and raised the reasonable opinions for the Company’s planning ondevelopmentstrategy ofbusiness,R&Dand newproducts,etc.and implementation thereof,achieving goodsresults.

3.PerformanceofRemuneration and AppraisalCommittee

During the reporting period,the Remuneration and AppraisalCommittee actively performed its duties in accordance with theprovisionsofthe CompaniesLaw,the Code ofCorporate Governance ofListed Companies,the ArticlesofAssociation,the DetailedWorking RulesforRemuneration and AppraisalCommittee ofthe Board ofDirectorsand otherrelevantregulations.Upon reviewingthe remuneration of directors,supervisors and senior managementof the Company,the Remuneration and AppraisalCommitteebelieves that the Company is gradually establishing fair and effective performance evaluation standards and incentive restraintmechanismsforseniormanagement,and implementsthe remuneration systemthatcombinesbasic monthly salary with the year-endperformance appraisal results for senior management. Based on the understanding and plan above, the Company made properadjustmentsto basicmonthly salary ofsomedirectorsand seniorofficers,reflecting and realizing theeffectofmotivation and justice.The remuneration of directors,supervisors and senior managementof the Company was true during the reporting period,whichcomplieswith theperformanceappraisalindicatorsoftheCompany.

4.PerformanceofNomination Committee

During thereporting period,theNomination Committeeperformed itsdutiesin accordancewith theDetailed Working RulesforNomination CommitteeoftheBoard ofDirectors,continuously reviewed thequalificationsofpersonneland issued theauditopinionsand suggestions.

VII.Detailson theWork oftheBoard ofSupervisors

Wherethererisksin theCompany according to thesupervisoroftheboard ofsupervisorsduring thereporting period?

□Yes√No

Theboard ofsupervisorsraised no objection to mattersundersupervision during thereporting period.

VIII.Assessmentand IncentiveMechanismsforSeniorManagement

During the reporting period,the Company implemented the performance assessmentforitsseniormanagement,and paid themthe annualincome underthe“monthly salary +year-end bonus”model.The Company assessed the seniormanagementatthe end ofthe yearbased on thebusinessconditionsofthe Company and work performance ofindividuals,and determined theirannualincomedepending on the assessmentresults.The Company formulated a systematic and scientific assessmentand managementmethod toprovide an evaluation basis forpaymentofremuneration ofdirectors,supervisors and seniormanagement.The Remuneration andAppraisal Management Committee was responsible for organizing and implementing the performance appraisal. To the extentauthorized by the board ofdirectors,the Remuneration and AppraisalManagementCommittee made the evaluation in the lightofprinciples offairness,impartiality and openness and based on the performance indicators setby the Company and the assessmentindicators orwork performance established in each stage,and ensured thatthe performance appraisaland evaluation results fullyreflectthetrueperformanceand ability ofemployeesand guaranteed thetransparency oftheappraisal.

IX.Evaluation ReportofInternalControls

1.Detailson materialdeficienciesfound in theCompany’sinternalcontrolsduring thereporting period

□Yes√No

2.Self-appraisalreporton internalcontrols

DisclosuredateoftheReportonInternal Controls	April21,2021
DisclosureindexoftheReportonInternal Controls	LuxsharePrecisionIndustryCo.,Ltd.designatedtheinformationdisclosurewebsiteCninfo(www.cninfo.com.cn)todisclosethe2020AuthenticationReportonInternalControlsofLuxsharePrecisionIndustryCo.,Ltd..
Proportionoftotalassetsofentities includedinevaluationscopetothetotal assetsintheCompany’sconsolidated financialstatements	70.91%
Proportionofoperatingrevenueofentities includedinevaluationscopetothe operatingrevenueintheCompany’s consolidatedfinancialstatements	81.85%

DeficiencyStandards
Category	FinancialReport	Non-financialReport
Qualitativecriteria	I.Signsthatinternalcontrolsofthefinancialreporthavematerialdeficienciesinclude:A.fraudonthepartofdirectors,supervisorsandseniormanagement;B.failureofmaterialdeficienciesininternalcontrolsthathavebeendiscoveredandreportedtothemanagementtobecorrectedafterareasonableperiodoftime;C.ineffectiveinternalenvironment;D.identificationbytheexternalauditorofamaterialmisstatementoffinancialreportinthecurrentperiodincircumstancesthatindicatethatthemisstatementwouldnothavebeendetectedbytheCompany’sinternalcontrol;E.materialviolationsoflawsandregulationsaremorematerial;F.exceptfor	I.Signsthatinternalcontrolsofthenonfinancial report have materialdeficienciesinclude:A.seriousviolationsofimportantnationallawsandregulations;B.seriouslossofmanagementandtechnicalpersonnelinkeypositions;C.lackofsystemcontrolorfailureofsystemcontrolforimportantbusinessinvolvingtheproductionandoperationoftheCompany;D.failureoftheinternalcontrolsofinformationdisclosure,causingtheCompanytobepubliclycondemned;E.failureoftheresultsofinternalcontrolappraisal,especiallymaterialorsignificantdeficiencies,toberectified.II.Signsthat

	policy-relatedlosses,theCompanyhassufferedlossesforconsecutiveyearsanditsgo-concerningabilityischallenged;G.ineffectiveoversightofinternalcontrolsbytheCompany’smanagementandrelevantfunctionaldepartments.II.Signsthatinternalcontrolsofthefinancialreporthavesignificantdeficienciesinclude:A.failuretofollowgenerallyacceptedaccountingstandardstoselectandapplyaccountingpolicies;B.failuretoestablishanti-fraudproceduresandcontrolmeasures;C.lackofinstitutionalcontrolorfailureofthesystemforimportantbusiness;D.lackofinternalcontrolbuilding,andmanagementinsubsidiariesscattered;E.resignationbyorfrequentchangesofseniorofficers(especiallythoseinchargeofinternalcontrolbody,financeandhumanresources),orseriousemployeeturnover.III.Signsthatinternalcontrolsofthefinancialreporthavegeneraldeficienciesinclude:Controldeficienciesotherthanmaterialandsignificantdeficiencies.	internalcontrolsofthenonfinancialreporthavesignificantdeficienciesinclude:A.deficienciesintheimportantbusinessmechanismorsystem,andincompleteinternalcontrolmechanism;B.informationdisclosurenotreviewedandcontentsuntrue.III.Signsthatinternalcontrolsofthefinancialreporthavegeneraldeficienciesinclude:Controldeficienciesotherthanmaterialandsignificantdeficiencies.
Qualitativecriteria	I.Materialdeficiency:(1)Potentialmisstatementofoperatingrevenue:0.5%oftotaloperatingrevenue≤misstatement;(2)potentialmisstatementoftotalprofits:5%oftotalprofits≤misstatement;(3)potentialmisstatementoftotalassets:0.5%oftotalassets≤misstatement;(4)potentialmisstatementofowners’equity:0.5%oftotalowners’equity≤misstatement;II.Significantdeficiency:(1)Potentialmisstatementofoperatingrevenue:0.2%oftotaloperatingrevenue≤misstatement<0.5%oftotaloperatingrevenue;(2)potentialmisstatementoftotalprofits:2%oftotalprofits≤misstatement<5%oftotalprofits;(3)potentialmisstatementoftotalassets:0.2%oftotalassets≤misstatement<0.5%oftotalassets;(4)potentialmisstatementof	I.Materialdeficiency:DirectlossofpropertyamountstonotlessthanRMB12million,causingarelativelylargenativeimpactontheCompany;II.Significantdeficiency:DirectlossofpropertyamountstoRMB3million-12million,subjecttothepenaltyimposedbythenationalgovernmentdepartmentbutnotcausinganativeimpactontheCompany;III.Generaldeficiency:DirectlossofpropertyamountstonotmorethanRMB3million,subjecttothepenaltyimposedbythegovernmentdepartmentsattheprovinciallevelorbelowbutnotcausinganativeimpactontheCompany.

	owners’equity:0.2%oftotalowners’equity≤misstatement<0.5%oftotalowners’equity;III.Generaldeficiency:(1)Potentialmisstatementofoperatingrevenue:misstatement<0.2%oftotaloperatingrevenue;(2)potentialmisstatementoftotalprofits:misstatement<2%oftotalprofits;(3)potentialmisstatementoftotalassets:misstatement<0.2%oftotalassets;(4)potentialmisstatementofowners’equity:misstatement<0.2%oftotalowners’equity.	’
Numberofmaterialdeficienciesinthe financialreport	0
Numberofmaterialdeficienciesinthenon financialreport	0
Numberofsignificantdeficienciesinthe financialreport	0
Numberofsignificantdeficienciesinthe nonfinancialreport	0

X.AuditReportorAuthentication Reporton InternalControls

Authentication Reporton InternalControls

AuditOpinionintheAuditReportonInternalControls
TheCompanymaintainedeffectiveinternalcontrolsrelatedtofinancialstatementsinallmaterialrespectsasatDecember31,2021 inaccordancewiththeBasicInternalControlNormsforEnterprisespromulgatedbytheMinistryofFinance;
ParticularsabouttheDisclosureof AuthenticationReportonInternal Controls	Disclosure
Disclosure date of the AuthenticationReportonInternal Controls	April21,2021
Disclosure index of the AuthenticationReportonInternal Controls	TheCompanydesignatedtheinformationdisclosurewebsiteCninfo(www.cninfo.com.cn)todisclosethe2020AuthenticationReportonInternalControlsofLuxsharePrecisionIndustryCo.,Ltd..
TypeofAuthenticationOpinion	UnqualifiedOpinion
Isthereamaterialdeficiencyinthe nonfinancialreport?	No

Did theaccounting firmissueanAuthentication Reporton InternalControlswith anon-standard opinion?

□Yes√No

IstheAuthentication Reporton InternalControlsfromtheaccounting formconsistentwith theSelf-assessmentReportfromthe

board ofdirectors?

√Yes□No

Section XICorporateBonds

Wheretherebondspublicly issued and listed on an exchange,eitheratornotatmaturity,and arenotfully paid on theapprovalreportdateoftheannualreport?

Section XIIFinancialReport

I.Auditor’sReport

Auditopinion	StandardUnqualifiedOpinion
Signingdateofauditreport	April20,2021
Auditor	BDOChinaShuLunPanCertifiedPublicAccountantsLLP
Auditorreportdocumentnumber	XinKuaiShiBaoZi[2021]No.ZB10516
Nameofcertifiedpublicaccountants	LIJingandWEIGang

Auditor’sReport

I.Auditopinion

We have audited the financialstatements ofLuxshare Precision Industry Co.,Ltd.(“Luxshare Precision”),whichcomprise the consolidated and parentcompany’sbalance sheetsasatDecember31,2020,and the consolidated and parentcompany’s income statements,the consolidated and parentcompany’s statements ofcash flowand the consolidated andparentcompany'sstatementsofchangesin owners’equity fortheyearthen ended,and thenotesto thefinancialstatements.

In ouropinion,the accompanying financialstatementsare prepared in allmaterialrespectsin accordance with theAccounting StandardsforBusinessEnterprisesand fairly presentthe consolidated and parentcompany’sfinancialpositionas ofDecember31,2020,and the consolidated and parentcompany’s operating results and cash flows forthe yearthenended.

II.BasisforOpinion

We conducted ourauditin accordance with the Auditing StandardsforCertified Public AccountantsofChina.Ourresponsibilitiesunderthose standardsare furtherdescribed in the“Auditor’sResponsibilitiesforthe Auditofthe FinancialStatements”section ofourreport.We are independentofLuxshare Precision with the Code ofEthicsforChinese CertifiedPublic Accountants,and we have fulfilled ourotherethicalresponsibilities in accordance with the Code.We believe thattheauditevidencewehaveobtained issufficientand appropriateto provideabasisforouropinion.

III.CriticalAuditMatters

Criticalauditmatters are those matters that,in ourprofessionaljudgment,are ofmostsignificance in ourauditofthe financialstatements forthe currentperiod.These matters were addressed in the contextofourauditofthe financialstatementsasa whole,and in forming ouropinion thereon,and we do notexpressa separate opinion on these matters.Wedeterminethatthefollowing mattersarecriticalauditmattersthatneed to becommunicated in theauditreport.

CriticalAuditMatters	HowWeAddressedtheMatterinOurAudit

(I)Revenuerecognition

Fordetailsoftheaccountingpolicyforandanalysison revenuerecognition,pleaseseetheaccountingpolicies describedintheItem(XXVI)undertheNote“III. SignificantAccountingPoliciesandAccounting Estimates”andtheItem(XXXXI)underthe“V.Notes toConsolidatedFinancialStatements”tothefinancial statements. In2020,LuxsharePrecision’soperatingincomewas RMB92,501,259,200.00.LuxsharePrecisionhasalarge numberofcustomersathomeandabroad.Under differentdeliverymethods,theCompanyrecognizes revenueuponthetransferofcontrolofarelatedproduct toacustomer.Ifacustomerisalsothesupplierofsome rawmaterials,theCompanyrecognizesthepurchaseof rawmaterialsandsalesofproductsrespectivelybasedon thetransferofinventoryrisksandrewards,product liability,creditriskbearersandbusinessnature,thatis, thesalesrevenueisrecognizedbasedonthegross amount.TherevenueisoneoftheCompany’skey performanceindicatorsandthemainsourceofthe Company’sprofits,soweidentifytherevenuefrom productsalesasthecriticalauditmatterbasedonthe importanceoftheaccountingpolicyforrevenue recognitionandtheamountinvolved.	.ltft,1.Understand,evaluateandtestthedesignofthekeyinternalcontrolsofthemanagementrelatedtorevenuerecognitionandtheoperationaleffectivenessofthosecontrols;2.Sampletheproductsalesrevenuetomaketestthereofaccordingtodifferentregionsandcustomers;checksupportingdocumentsrelatedtorevenuerecognition;3.Implementtheanalyticalproceduresonincomeandgrossprofitanddeterminewhetherthereareabnormalfluctuationsintheamountofrevenueforthecurrentperiod;4.UnderthemodesofcooperationbetweentheCompanyandcustomersandsuppliers,andevaluatetheproductliabilityshareandthetransferofcontrol;5.Evaluatetheaccuracyandcompletenessofrevenueinconjunctionwiththeconfirmationproceduresforreceivables&payablesandinventories;and6.Analyzethepost-periodrecoveryofaccountsreceivable.	t;ltrrr,r
(II)Provisionfordeclineinvalueofinventories
PleaseseetheaccountingpoliciesdescribedintheItem (XXI)undertheNote“III.SignificantAccounting PoliciesandAccountingEstimates”andtheItem(VII) undertheNote“V.NotestoConsolidatedFinancial Statements”tothefinancialstatements. AsatDecember31,2020,LuxsharePrecision’s inventoriesandprovisionfordeclineinvalueof inventoriespresentedinitsconsolidatedfinancial statements were RMB13,340,555,000.00 and RMB129,545,600.00respectively.Inventoriesofthe Companyarestatedatthelowerofcostornetrealisable value.Forfinishedproducts,theirnetrealizablevalueis determinedattheestimatedsellingpriceofthese inventorieslesstheestimatedcostsnecessarytomake thesaleandrelevanttaxes;fortheinventoriesthatneed tobeprocessed,intheordinaryproductionandoperation process,theirnetrealisablevalueisdeterminedatthe estimatedsellingpriceoffinishedproductslessthe estimatedcostsofcompletionandtheestimatedcosts	)ll1.Understand,evaluateandtestthedesignofthekeyinternalcontrolsofthemanagementrelatedtotheprovisionfordeclineinvalueofinventoriesandtheoperationaleffectivenessofthosecontrols;2.ObtaintheCompany’scalculationsheetoftheprovisionfordeclineinvalueofinventories,reviewthenetrealisablevalueofinventoriesandtheprovisionfordeclineinvalueofinventories,andevaluatewhetherthejudgmentmadebythemanagementindeterminingthenetrealizablevalueofinventoriesisreasonable;3.Checkthequantityandconditionsofinventories,focusoninspectingthelong-terminventories,andanalyzetheadequacyoftheprovisionfordeclineinvalueofinventoriesifanyindicationexiststhatsuchinventoriesmaybeimpaired,inconjunctionwithroll-forwardprocedures;and4.Checkthecurrentchangesoftheprovisionfordeclineinvalueofinventoriesmadeinpreviousyearsandanalyzetherationalityofthechangesinthe
necessarytomakethesaleandrelevanttaxes.The determinationofthenetrealisablevalueofinventories involvesthemanagement’suseofsignificantaccounting estimatesandjudgments,andtheprovisionfordeclinein valueofinventoriesisofsignificancetotheconsolidated financialstatements,soweidentifytheprovisionfor declineinvalueofinventoriesasthecriticalauditmatter.	provisionfordeclineinvalueofinventories.

IV.OtherInformation

The managementof Luxshare Precision (“management”)is responsible for other information.Otherinformationcomprises the information included in the 2020 AnnualReportofLuxshare Precision,butdoes notinclude the financialstatementsand ourauditor'sreportthereon.

Ouropinion on the financialstatements does notcoverthe otherinformation and we do notexpress any formofassuranceconclusion thereon.

In connection with ourauditofthefinancialstatements,ourresponsibility isto read otherinformation and,in doingso,considerwhetherotherinformation ismaterially inconsistentwith thefinancialstatementsorourknowledge obtained intheauditorotherwiseappearsto bematerially misstated.

If,based on thework wehave performed,we concludethatthereisany materialmisstatementofotherinformation,wearerequired to reportthatfact.Wehavenothing to reportin thisregard.

V.ResponsibilitiesoftheManagementand ThoseCharged with GovernancefortheFinancialStatements

The managementis responsible forthe preparation and fairpresentation ofthe financialstatements in accordancewith theAccounting StandardsforBusinessEnterprises,and designing,implementing and maintaining internalcontrolthatisnecessary to enablethefinancialstatementsthatarefreefrommaterialmisstatement,whetherdueto fraud orerror.

In preparing the financialstatements,the managementis responsible forassessing Luxshare Precision’s ability tocontinue asa going concern,disclosing,asapplicable,matters related to going concern and using the going concern basisof accounting unless the managementeither intends to liquidate Luxshare Precision or to cease operations,or have norealisticalternativebutto do so.

Those charged with governance ofLuxshare Precision (hereinafterreferred to as“those charged with governance”)areresponsibleforoverseeing LuxsharePrecision’sfinancialreporting process.

VI.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectives are to obtain reasonable assurance aboutwhetherthe financialstatementsas a whole are free frommaterialmisstatement,whetherdueto fraud orerror,and to issuean auditor’sreportthatincludesouropinion solely to you.Reasonable assurance isa high levelofassurance,butisnota guarantee thatan auditconducted in accordance with ChinaStandards on Auditing willalways detecta materialmisstatementwhen itexists.Misstatements can arise fromfraud orerrorand are considered materialif,individually orin the aggregate,they could reasonably be expected to influence theeconomicdecisionsofuserstaken on thebasisofthesefinancialstatements.

As part of an audit in accordance with China Standards on Auditing,we exercise professional judgment andmaintain professionalskepticismthroughouttheaudit.Wealso:

(1)Identify and assessthe risksofmaterialmisstatementofthe financialstatements,whetherdue to fraud orerror,design and performauditproceduresresponsive to those risks,and obtain auditevidence thatissufficientand appropriateto providea basisforouropinion.The risk ofnotdetecting amaterialmisstatementresulting fromfraud ishigherthan thatresulting fromerror,asfraud may involve collusion,forgery,intentionalomissions,misrepresentations,orthe override ofinternalcontrol;

(2)Obtain an understanding ofinternalcontrolrelevantto the auditin orderto design auditprocedures thatareappropriatein thecircumstances,butnotforthepurposeto expressopinionson theeffectivenessofinternalcontrol.

(3)Evaluate the appropriateness ofaccounting policies used and the reasonableness ofaccounting estimates andrelated disclosuresmadeby themanagement.

(4)Conclude on the appropriateness of the management’s use of the going concern basis of accounting, andmeanwhile,based on the auditevidence obtained,on whethera materialuncertainty exists related to eventsorconditionsthatmay cast significantdoubton Luxshare Precision’s ability to continue as a going concern.If we conclude thatamaterial uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosures in thefinancialstatementsor,ifsuch disclosures are inadequate,to modify ouropinion.Ourconclusionsare based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditions may cause LuxsharePrecision to ceaseto continueasagoing concern.

(5)Evaluate the overallpresentation (including disclosure),structure and contentofthe financialstatements andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation;

(6)Obtain sufficientand appropriate auditevidence regarding the financialinformation ofthe entities orbusinessactivitieswithin Luxshare Precision to expressan opinion on the financialstatements.We are responsible forthe direction,supervision and performanceofthegroup audit.Weremain solely responsibleforourauditopinion.

We communicate with those charged with governance regarding,among other matters,the planned scope andtiming ofthe auditand significantauditfindings,including any significantdeficienciesin internalcontrolthatwe identifyduring ouraudit.

We also provide those charged with governance with a statementthatwe have complied with relevantethicalrequirementsregarding independence,and communicate with themallrelationshipsand othermattersthatmay reasonablybethoughtto bearon ourindependence,and whereapplicable,related safeguards.

Fromthematterscommunicated with those charged with governance,wedeterminethose mattersthatwereofmostsignificance in the auditof the financialstatements for the currentperiod and are therefore criticalauditmatters.Wedescribe these matters in ourauditreportunless laws orregulations preclude public disclosure ofthe matterorwhen,inextremely rare circumstances,we determine thata mattershould notbe communicated in ourreportbecause the adverseconsequencesofdoing so would reasonably beexpected to outweigh thepublicinterestbenefitsofsuch communication.

II.FinancialStatements

Statementsin notesto thefinancialstatementsaredominated in RMB.

1.Consolidated balancesheet

Prepared by:LuxsharePrecision Industry Co.,Ltd.

December31,2020

In:RMB

Item	December31,2020	December31,2019
CurrentAssets:
Cashandbankbalances	10,528,245,765.93	6,180,466,259.01
Balanceswithclearingagencies
Placementswithbanksandother financialinstitutions
Held-for-tradingfinancialassets	3,160,064,470.41	1,524,366,132.75
Derivativefinancialassets
Notesreceivable	261,208,601.50	66,873,926.97
Accountsreceivable	13,839,155,340.47	13,243,625,572.22
Receivablefinancing
Prepayments	183,886,937.70	212,018,611.91
Premiumsreceivable
Amountsreceivableunder reinsurancecontracts
Reinsurer’sshareofinsurance contractreserves
Otherreceivables	407,990,780.79	338,237,923.96
Including:Interestreceivable
Dividendsreceivable
Financialassetspurchasedunder resaleagreements
Inventories	13,211,009,381.15	7,700,857,888.16
Contractassets
Held-for-saleassets
Non-currentassetsduewithinone
year
Othercurrentassets	1,804,485,645.49	1,484,451,151.73
Totalcurrentassets	43,396,046,923.44	30,750,897,466.71
Non-currentAssets:
Loansandadvancestocustomers
Debtinvestments
Otherdebtinvestments
Long-termreceivables
Long-termequityinvestments	1,208,540,333.29	303,050,580.10
Otherinvestmentsinequity instruments	138,074,571.56	193,950,220.77
Othernon-currentfinancialassets
Investmentproperties	47,592,110.24	52,656,477.74
Fixedassets	19,761,012,854.95	13,707,298,535.36
Constructioninprogress	1,596,064,894.58	865,549,438.56
Bearerbiologicalassets
Oilandgasassets
Useofrightassets
Intangibleassets	1,265,161,209.65	1,047,725,845.53
Developmentexpenditure
Goodwill	533,139,532.25	532,697,936.32
Long-termprepaidexpenses	488,087,044.97	352,042,451.40
Deferredincometaxassets	355,834,434.21	139,475,190.37
Othernon-currentAssets	1,223,199,642.61	1,432,566,528.37
Totalnon-currentassets	26,616,706,628.31	18,627,013,204.52
Totalassets	70,012,753,551.75	49,377,910,671.23
Currentliabilities:
Short-termborrowings	7,577,068,798.49	4,166,302,223.17
Loansfromthecentralbank
Takingfrombanksandother financialinstitutions
Held-for-tradingfinancial liabilities		1,001,553.00
Derivativefinancialliabilities
Notespayable	128,572,111.54	206,496,660.20
Accountspayable	23,051,557,603.83	17,268,223,180.16
Receiptsinadvance		101,609,379.21
Contractliabilities	152,512,971.36
Financialassetssoldunder repurchaseagreements
Customerdepositsanddeposits frombanksandotherfinancial institutions
Fundsfromsecuritiestrading agency
Fundsfromunderwritingsecurities agency
Employeebenefitspayable	1,397,632,139.23	1,423,417,352.66
Taxespayable	237,421,491.63	327,633,322.68
Otherpayables	146,162,097.14	352,390,271.77
Including:Interestpayable		6,097,484.73
Dividendspayable
Feesandcommissionspayable
Amountspayableunder reinsurancecontracts
Held-for-saleliabilities
Non-currentliabilitiesduewithin oneyears	278,527,714.63	366,537,115.41
Othercurrentliabilities	623,257,555.89	646,115,152.49
Totalcurrentliabilities	33,592,712,483.74	24,859,726,210.75
Non-currentliabilities:
Insurancecontractreserves
Long-termborrowings	1,495,199,238.41	1,562,908,824.30
Bondspayable	2,475,423,249.98
Including:Preferredshares
Perpetualbonds
Leaseliabilities
Long-termpayables
Long-termemployeebenefits payable
Provisions	1,360,598.63	1,317,263.45
Deferredincome	425,345,982.64	256,059,554.91
Deferredincometaxliabilities	966,092,212.95	598,184,393.00
Othernon-currentliabilities	150,019,923.33	350,011,130.10
TotalNon-currentLiabilities	5,513,441,205.94	2,768,481,165.76
Totalliabilities	39,106,153,689.68	27,628,207,376.51
Owner’sequity:
Sharecapital	6,999,768,186.00	5,349,001,738.00
Otherequityinstruments	527,449,226.56
Including:Preferredshares
Perpetualbonds
Capitalreserve	1,890,099,569.60	2,654,692,874.21
Less:Treasuryshares
Othercomprehensiveincome	-44,717,803.06	165,602,152.74
Specialreserve
Surplusreserve	733,067,797.73	362,335,031.18
Generalriskreserve
Unappropriatedprofit	17,996,149,257.73	11,764,987,172.39
Totalowners’equityattributableto equityholdersoftheparentcompany	28,101,816,234.56	20,296,618,968.52
Minorityinterests	2,804,783,627.51	1,453,084,326.20
Totalowners’equity	30,906,599,862.07	21,749,703,294.72
Totalliabilitiesandowners’equity	70,012,753,551.75	49,377,910,671.23

Legalrepresentative:WANGLaichunChieffinancialofficer:WUTiansongHead ofaccountingdepartment:XIAONa

2.Balancesheetoftheparentcompany

In:RMB

Item	December31,2020	December31,2019
CurrentAssets:
Cashandbankbalances	1,890,655,455.45	1,261,246,519.90
Held-for-tradingfinancialassets	2,238,600,282.87	564,979,683.89
Derivativefinancialassets
Notesreceivable	147,912,632.85	7,452,736.02
Accountsreceivable	6,923,152,599.31	1,561,792,817.49
Receivablefinancing
Prepayments	295,993,095.73	41,033,974.02
Otherreceivables	554,707,729.13	524,425,779.85
Including:Interestreceivable
Dividendsreceivable	11,543,626.19
Inventories	151,961,355.37	254,966,939.98
Contractassets
Held-for-saleassets
Non-currentassetsduewithinone year
Othercurrentassets	143,001,991.83	59,577,562.10
Totalcurrentassets	12,345,985,142.54	4,275,476,013.25
Non-currentAssets:
Debtinvestments
Otherdebtinvestments
Long-termreceivables
Long-termequityinvestments	13,603,581,726.93	10,169,630,940.26
Otherinvestmentsinequity instruments	704,349,663.13	190,275,176.76
Othernon-currentfinancialassets
Investmentproperties
Fixedassets	142,429,101.80	96,298,416.94
Constructioninprogress	5,938,197.42	2,779,186.32
Bearerbiologicalassets
Oilandgasassets
Useofrightassets
Intangibleassets	52,410,346.09	24,590,128.29
Developmentexpenditure
Goodwill	53,174,339.31	53,174,339.31
Long-termprepaidexpenses	727,403.48	1,818,508.31
Deferredincometaxassets	7,715,791.60	13,804,913.52
Othernon-currentAssets	164,700.00	6,162,851.80
Totalnon-currentassets	14,570,491,269.76	10,558,534,461.51
Totalassets	26,916,476,412.30	14,834,010,474.76
Currentliabilities:
Short-termborrowings	1,038,298,216.05	82,450,000.00
Held-for-tradingfinancial liabilities
Derivativefinancialliabilities
Notespayable	918,494,979.38	1,210,846,167.41
Accountspayable	6,005,518,269.37	1,190,614,614.64
Receiptsinadvance		19,692,593.36
Contractliabilities	28,872,712.52
Employeebenefitspayable	10,262,304.62	46,817,340.23
Taxespayable	21,244,602.02	15,259,960.69
Otherpayables	1,565,708.61	509,173,095.52
Including:Interestpayable
Dividendspayable
Held-for-saleliabilities
Non-currentliabilitiesduewithin oneyears	20,029,777.78
Othercurrentliabilities	512,468,730.41	500,000,000.00
Totalcurrentliabilities	8,556,755,300.76	3,574,853,771.85
Non-currentliabilities:
Long-termborrowings	180,268,000.00
Bondspayable	2,475,423,249.98
Including:Preferredshares
Perpetualbonds
Leaseliabilities
Long-termpayables
Long-termemployeebenefits payable
Provisions
Deferredincome	8,397,770.66	10,941,542.77
Deferredtaxliabilities	19,714,831.53	22,367,576.60
Othernon-currentliabilities
TotalNon-currentLiabilities	2,683,803,852.17	33,309,119.37
Totalliabilities	11,240,559,152.93	3,608,162,891.22
Owner’sequity:
Sharecapital	6,999,768,186.00	5,349,001,738.00
Otherequityinstruments	527,449,226.56
Including:Preferredshares
Perpetualbonds
Capitalreserve	2,303,197,437.38	3,070,397,725.31
Less:Treasuryshares
Othercomprehensiveincome	80,735,015.01	125,608,900.24
Specialreserve
Surplusreserve	733,067,797.73	362,335,031.18
Unappropriatedprofit	5,031,699,596.69	2,318,504,188.81
Totalowners’equity	15,675,917,259.37	11,225,847,583.54
Totalliabilitiesandowners’Equity	26,916,476,412.30	14,834,010,474.76

3.Consolidated incomestatement

In:RMB

Item	2020	2019
I.Totaloperatingincome	92,501,259,211.54	62,516,314,588.42
Including:Operatingincome	92,501,259,211.54	62,516,314,588.42
Interestincome
Premiumsearned
Feeandcommissionincome
II.Totaloperatingcosts	85,611,417,151.82	57,100,176,904.83
Including:Operatingcosts	75,770,007,049.58	50,067,829,953.96
Interestexpenses
Feeandcommission expenses
Surrenders
Claimsandpolicyholder benefits(netofmountsrecoverablefrom reinsurers)
Changesininsurance contractreserves(netofreinsurers’share)
Insurancepolicyholder dividends
Expensesforreinsurance accepted
Taxesandlevies	250,775,738.81	303,192,959.52
Sellingexpenses	477,047,875.58	498,274,838.05
Generalexpenses	2,463,953,208.63	1,524,835,061.38
R&Dexpenses	5,744,805,136.33	4,375,970,646.47
Financialexpenses	904,828,142.89	330,073,445.45
Including:Interest expenses	394,589,818.16	364,595,633.11
Interestincome	144,116,091.77	100,065,571.29
Add:Otherincome	450,748,795.89	232,311,428.35
Investmentincome(Lossis indicatedby“-”)	648,357,066.36	172,816,640.61
Including:Incomefrom investmentsinassociatesandjoint ventures	24,799,841.42	-36,548,318.18
Incomefrom derecognitionoffinancialassets measuredatamortizedcost
Foreignexchangegains(Loss isindicatedby“-”)
Netexposurehedgingincome (Lossisindicatedby“-”)
Incomefromchangesinfair value(Lossisindicatedby“-”)	329,044,852.43	801,205.01
Impairmentlossesofcredit (Lossisindicatedby“-”)	-8,590,000.67	-6,452,972.96
Impairmentlossesofassets (Lossisindicatedby“-”)	-139,288,911.05	-80,643,093.84
Incomefromdisposalofassets (Lossisindicatedby“-”)	-2,309,694.02	9,716,496.38
III.Operatingprofit(Lossisindicatedby “-”)	8,167,804,168.66	5,744,687,387.14
Add:Non-operatingincome	21,932,288.24	18,115,772.58
Less:Non-operatingexpenses	53,956,792.78	127,624,357.87
IV.Totalprofit(Totallossesareindicated by“-”)	8,135,779,664.12	5,635,178,801.85
Less:Incometaxexpenses	644,764,928.70	707,753,874.65
V.Netprofit(Netlossisindicatedby“-”)	7,491,014,735.42	4,927,424,927.20
(I)Categorizedbythenatureof continuingoperation
1.Netprofitfromcontinuing operations(Netlossisindicatedby“-”)	7,491,014,735.42	4,927,424,927.20
2.Netprofitfromdiscontinued operations(Netlossisindicatedby“-”)
(II)Categorizedbyownership
1.Netprofitattributableto shareholdersoftheparentcompany	7,225,462,752.58	4,713,820,644.90
2.Non-controllinginterests	265,551,982.84	213,604,282.30
VI.Othercomprehensiveincome,netof tax	-214,366,575.46	20,334,650.77
Othercomprehensiveincome attributabletoownersoftheparent company,netoftax	-210,319,955.80	4,510,959.61
(I)Othercomprehensiveincomethat cannotbesubsequentlyreclassifiedto profitorloss	-44,824,020.81	21,551,080.01
1.Changesfrom re-measurementofdefinedbenefitplans
2.Othercomprehensive incomethatcannotbereclassifiedto profitorlossundertheequitymethod
3.Changesinfairvalueof otherinvestmentsinequityinstruments	-44,824,020.81	21,551,080.01
4.Changesinfairvalueof enterprises’owncreditrisks
5.Others
(II)Othercomprehensiveincome thatwillbereclassifiedtoprofitorloss	-165,495,934.99	-17,040,120.40
1.Othercomprehensive incomethatwillbereclassifiedtoprofit orlossundertheequitymethod
2.Changesinfairvalueof otherdebtinvestments
3.Amountsoffinancial assetsreclassifiedintoother comprehensiveincome
4.Provisionforcredit
impairmentofotherdebtinvestments
5.Reserveforcashflow hedges
6.Translationdifferencesof financialstatementsdenominatedin foreigncurrencies	-165,495,934.99	-17,040,120.40
7.Others
Othercomprehensiveincome attributabletominorityinterests,netof tax	-4,046,619.66	15,823,691.16
VII.Totalcomprehensiveincome	7,276,648,159.96	4,947,759,577.97
Totalcomprehensiveincome attributabletoownersoftheparent company	7,015,142,796.78	4,718,331,604.51
Totalcomprehensiveincome attributabletominorityinterests	261,505,363.18	229,427,973.46
VIII.Earningspershare:
(I)Basicearningspershare	1.03	0.68
(II)Dilutedearningspershare	1.01	0.67

Forany businesscombination involving enterprisesundercommon controlforthecurrentperiod,thenetprofitsofthe

absorbed party priorto thecombination areRMBin thecurrentperiod,and wereRMBin priorperiod.

Legalrepresentative:WANGLaichunChieffinancialofficer:WUTiansongHead ofaccountingdepartment:XIAONa

4.Incomestatementoftheparentcompany

In:RMB

Item	2020	2019
I.Totaloperatingincome	11,565,103,529.27	4,373,597,656.26
Less:Operatingcosts	10,781,197,082.67	3,954,659,940.48
Taxesandlevies	18,261,507.97	9,675,842.17
Sellingexpenses	35,063,571.34	56,805,073.90
Generalexpenses	56,228,389.80	159,777,425.20
R&Dexpenses	378,120,159.26	151,259,405.54
Financialexpenses	96,281,059.07	19,712,919.87
Including:Interest expenses	75,305,134.45	14,615,914.41
Interestincome	16,540,879.08	1,915,078.95
Add:Otherincome	79,872,863.79	24,792,367.07
Investmentincome(Lossis indicatedby“-”)	3,409,929,279.99	690,975,860.47
Including:Incomefrom investmentsinassociatesandjoint ventures	452,498.12	-59,092,453.94
Incomefrom derecognitionoffinancialassets measuredatamortizedcost(Lossis indicatedby“-”)
Netexposurehedgingincome (Lossisindicatedby“-”)
Incomefromchangesinfair value(Lossisindicatedby“-”)	35,468,629.87	504,180.50
Impairmentlossesofcredit (Lossisindicatedby“-”)	-1,815,106.23	-1,614,173.72
Impairmentlossesofassets (Lossisindicatedby“-”)	146,637.49	-1,839,050.41
Incomefromdisposalof assets(Lossisindicatedby“-”)	93,414.42	44,093.10
II.Operatingprofit(Lossisindicated by“-”)	3,723,647,478.49	734,570,326.11
Add:Non-operatingincome	36,922.70	67,107.37
Less:Non-operatingexpenses	2,523,203.41	9,934,373.14
III.Totalprofit(Totallossesare indicatedby“-”)	3,721,161,197.78	724,703,060.34
Less:Incometaxexpenses	13,833,532.26	-9,759,786.32
Ⅳ.Netprofit（(Netlossisindicatedby “-”)	3,707,327,665.52	734,462,846.66
(I)Netprofitfromcontinuing operation(Netlossisindicatedby“-”)	3,707,327,665.52	734,462,846.66
(II)Netprofitfromdiscontinued operations(Netlossisindicatedby“-”)
V.Othercomprehensiveincome,netof tax	-44,873,885.23	21,137,812.87
(I)Othercomprehensiveincome thatcannotbesubsequentlyreclassified	-44,873,885.23	21,137,812.87
toprofitorloss
1.Changesfrom re-measurementofdefinedbenefitplans
2.Othercomprehensive incomethatcannotbereclassifiedto profitorlossundertheequitymethod
3.Changesinfairvalueof otherinvestmentsinequityinstruments	-44,873,885.23	21,137,812.87
4.Changesinfairvalueof enterprises’owncreditrisks
5.Others
(II)Othercomprehensiveincome thatwillbereclassifiedtoprofitorloss
1.Othercomprehensive incomethatwillbereclassifiedtoprofit orlossundertheequitymethod
2.Changesinfairvalueof otherdebtinvestments
3.Amountsoffinancial assetsreclassifiedintoother comprehensiveincome
4.Provisionforcredit impairmentofotherdebtinvestments
5.Reserveforcashflow hedges
6.Translationdifferences offinancialstatementsdenominatedin foreigncurrencies
7.Others
VI.Totalcomprehensiveincome	3,662,453,780.29	755,600,659.53
VII.Earningspershare:
(I)Basicearningspershare
(II)Dilutedearningspershare

5.Consolidated statementsofcash flows

In:RMB

Item	2020	2019
I.CashFlowsfromOperating Activities:
Cashreceiptsfromthesalesof goodsandtherenderingofservices;	97,065,870,437.67	58,859,762,272.15
Netincreaseincustomerdeposits anddepositsfrombanksandother financialinstitutions
Netincreaseinloansfromthe centralbank
Netincreaseintakingfromother financialinstitutions
Cashpaymentsforclaimsand policyholders’benefitsunderdirect insurancecontracts
Netcashreceiptsfromreinsurance business
Netcashreceiptsfrom policyholders’depositsandinvestment contractliabilities
Cashreceiptsfrominterest,fees andcommissions
Netincreaseintakingfrombanks andotherfinancialinstitutions
Netincreaseinfinancialassets soldunderrepurchasearrangements
Netcashreceivedfromsecurities tradingagency
Receiptsoftaxrefunds	3,100,093,905.89	2,611,921,580.42
Othercashreceiptsrelatingto operatingactivities	1,178,580,038.87	728,201,545.63
Sub-totalofcashinflowsfrom operatingactivities	101,344,544,382.43	62,199,885,398.20
Cashpaymentsforgoods purchasedandservicesreceived	78,908,490,079.24	42,488,386,509.36
Netincreaseinloansandadvances tocustomers
Netincreaseinbalancewiththe centralbankandduefrombanksand otherfinancialinstitution
Cashpaymentsforclaimsand policyholders’benefitsunderdirect insurancecontracts
Netincreaseinplacementswith banksandotherfinancialinstitutions
Cashpaymentsforinterest,fees andcommissions
Cashpaymentsforinsurance policyholderdividends
Cashpaymentstoandonbehalfof employees	11,976,189,826.48	8,201,521,329.49
Paymentsofvarioustypesoftaxes	1,462,211,616.65	1,294,566,177.19
Othercashpaymentsrelatingto operatingactivities	2,124,441,374.01	2,749,423,207.83
Sub-totalofcashoutflowsfrom operatingactivities	94,471,332,896.38	54,733,897,223.87
Netcashflowfromoperatingactivities	6,873,211,486.05	7,465,988,174.33
II.CashFlowsfromInvesting Activities:
Cashreceiptsfromdisposalsand recoveryofinvestments	55,479,505,473.33	80,206,416,647.61
Cashreceiptsfrominvestment income	487,104,548.83	88,715,608.23
Netcashreceiptsfromdisposalsof fixedassets,intangibleassetsandother long-termassets	105,209,975.47	140,428,894.26
Netcashreceiptsfromdisposalsof subsidiariesandotherbusinessentities	62,681,623.24	7,239,362.24
Othercashreceiptsrelatingto investingactivities
Sub-totalofcashinflowsfrominvesting activities	56,134,501,620.87	80,442,800,512.34
Cashpaymentstoacquireor constructfixedassets,intangibleassets andotherlong-termassets	7,502,140,356.20	6,362,579,306.81
Cashpaymentstoacquire investments	57,696,197,909.00	80,341,719,000.94
Netincreaseinpledgedloans receivables
Netcashpaymentsforacquisitions ofsubsidiariesandotherbusinessunits;	83,897,533.75	36,117,688.79
Othercashpaymentsrelatingto investingactivities.
Sub-totalofcashoutflowsfrom investingactivities	65,282,235,798.95	86,740,415,996.54
Netcashflowfrominvestingactivities	-9,147,734,178.08	-6,297,615,484.20
III.CashFlowsfromFinancing Activities:
Cashreceiptsfromcapital contributions	1,610,278,326.76
Including:Cashreceiptsfrom capitalcontributionsfromminority ownersofsubsidiaries	1,091,126,000.00
Cashreceiptsfromborrowings	25,747,304,566.98	22,031,435,875.30
Othercashreceiptsrelatingto financingactivities	4,485,600,000.00	500,000,000.00
Sub-totalofcashinflowsfrom financingactivities	31,843,182,893.74	22,531,435,875.30
Cashrepaymentsofborrowings	23,976,420,698.67	20,910,702,273.13
Cashpaymentsfordistributionof dividendsorprofitsorsettlementof interestexpenses	1,065,757,282.54	536,308,613.00
Including:Paymentsfor distributionofdividendsorprofitsto minorityownersofsubsidiaries	12,150,000.00
Othercashpaymentsrelatingto financingactivities	14,511,270.50	12,066,213.47
Sub-totalofcashoutflowsfrom financingactivities	25,056,689,251.71	21,459,077,099.60
Netcashflowfromfinancingactivities	6,786,493,642.03	1,072,358,775.70
IV.EffectofForeignExchangeRate ChangesonCashandCashEquivalents	-194,506,422.92	97,088,350.10
V.NetIncreaseinCashandCash Equivalents	4,317,464,527.08	2,337,819,815.93
Add:Openingbalanceofcashand cashequivalents	6,147,339,924.26	3,809,520,108.33
VI.ClosingBalanceofCashandCash	10,464,804,451.34	6,147,339,924.26
Equivalents

6.Statementofcash flowsoftheparentcompany

In:RMB

Item	2020	2019
I.CashFlowsfromOperating Activities:
Cashreceiptsfromthesalesof goodsandtherenderingofservices;	7,317,370,785.47	4,494,254,381.92
Receiptsoftaxrefunds	138,658,293.85	138,903,885.43
Othercashreceiptsrelatingto operatingactivities	1,643,814,995.33	559,380,122.12
Sub-totalofcashinflowsfrom operatingactivities	9,099,844,074.65	5,192,538,389.47
Cashpaymentsforgoods purchasedandservicesreceived	8,120,664,222.33	3,397,695,203.62
Cashpaymentstoandonbehalfof employees	135,105,794.86	111,095,822.27
Paymentsofvarioustypesoftaxes	105,195,119.59	87,707,937.86
Othercashpaymentsrelatingto operatingactivities	1,963,131,078.26	434,734,580.72
Sub-totalofcashoutflowsfrom operatingactivities	10,324,096,215.04	4,031,233,544.47
Netcashflowfromoperatingactivities	-1,224,252,140.39	1,161,304,845.00
II.CashFlowsfromInvesting Activities:
Cashreceiptsfromdisposalsand recoveryofinvestments	13,929,048,580.41	12,486,000,000.00
Cashreceiptsfrominvestment income	3,416,407,362.80	843,790,277.09
Netcashreceiptsfromdisposalsof fixedassets,intangibleassetsandother long-termassets	27,330,856.05	8,172,506.42
Netcashreceiptsfromdisposalsof subsidiariesandotherbusinessentities	63,942,000.00	7,239,163.89
Othercashreceiptsrelatingto investingactivities
Sub-totalofcashinflowsfrominvesting activities	17,436,728,799.26	13,345,201,947.40
Cashpaymentstoacquireor constructfixedassets,intangibleassets andotherlong-termassets	125,735,695.16	41,821,786.87
Cashpaymentstoacquire investments	19,459,676,016.32	13,325,246,977.28
Netcashpaymentsforacquisitions ofsubsidiariesandotherbusinessunits;
Othercashpaymentsrelatingto investingactivities.
Sub-totalofcashoutflowsfrom investingactivities	19,585,411,711.48	13,367,068,764.15
Netcashflowfrominvestingactivities	-2,148,682,912.22	-21,866,816.75
III.CashFlowsfromFinancing Activities:
Cashreceiptsfromcapital contributions	527,162,579.34
Cashreceiptsfromborrowings	1,543,324,080.00	96,229,200.00
Othercashreceiptsrelatingto financingactivities	4,485,600,000.00	500,000,000.00
Sub-totalofcashinflowsfrom financingactivities	6,556,086,659.34	596,229,200.00
Cashrepaymentsofborrowings	1,882,450,000.00	523,510,176.00
Cashpaymentsfordistributionof dividendsorprofitsorsettlementof interestexpenses	662,016,221.81	219,909,951.40
Othercashpaymentsrelatingto financingactivities	11,364,675.69	10,279,415.46
Sub-totalofcashoutflowsfrom financingactivities	2,555,830,897.50	753,699,542.86
Netcashflowfromfinancingactivities	4,000,255,761.84	-157,470,342.86
IV.EffectofForeignExchangeRate ChangesonCashandCashEquivalents	-7,911,773.68	4,522,010.88
V.NetIncreaseinCashandCash Equivalents	619,408,935.55	986,489,696.27
Add:Openingbalanceofcashand cashequivalents	1,261,246,519.90	274,756,823.63
VI.ClosingBalanceofCashandCash Equivalents	1,880,655,455.45	1,261,246,519.90

1,880,655,455.451,261,246,519.90

7.Consolidated statementofchangesin owners’equity

Amountsin thecurrentperiod

In:RMB

Amountforpriorperiod

In:RMB

8.Statementofchangesin owners’equity oftheparentcompany

Amountsin thecurrentperiod

In:RMB

Item	2020
Item	Share	Otherequity			Capital	Less:	Other	Special	Surplus	Unappr	Others	Total
	capital	instruments			reserve	Treasuryshares	comprehensiveincome	reserve	reserve	opriatedprofit		owners’equity
	capital	Preferredshares	Perpetualbonds	Others	reserve	Treasuryshares	comprehensiveincome	reserve	reserve	opriatedprofit		owners’equity
I.Closing balanceofthe precedingyear	5,349,001,738.00				3,070,397,725.31		125,608,900.24		362,335,031.18	2,318,504,188.81		11,225,847,583.54
Add: Changesin accounting policies
Correctionsof priorperiod errors
Others
II.Opening balanceofthe currentyear	5,349,001,738.00				3,070,397,725.31		125,608,900.24		362,335,031.18	2,318,504,188.81		11,225,847,583.54
III.Changesfor theyear (Decreaseis indicatedby“-”)	1,650,766,448.00			527,449,226.56	-767,200,287.93		-44,873,885.23		370,732,766.55	2,713,195,407.88		4,450,069,675.83
(I)Total comprehensive income							-22,303,192.71			3,707,327,665.52		3,685,024,472.81
(II)Owners’ contributions andreductionin capital	39,223,321.00			527,449,226.56	844,342,839.07							1,411,015,386.63
1.Ordinary shares contributedby owners	39,223,321.00				487,939,258.34							527,162,579.34
2.Capital contribution fromholdersof otherequity instruments				527,449,226.56								527,449,226.56
3.Share-based payment					347,403,580.73							347,403,580.73
recognizedin owners’equity
4.Others					9,000,000.00							9,000,000.00
(III)Profit distribution									370,732,766.55	-1,015,348,708.61		-644,615,942.06
1.Transferto surplusreserve									370,732,766.55	-370,732,766.55
2.Distributions toowners(or shareholders)										-644,615,942.06		-644,615,942.06
3.Others
(IV)Transfers withinowners’ equity	1,611,543,127.00				-1,611,543,127.00		-22,570,692.52			21,216,450.97		-1,354,241.55
1.Capitalization ofcapitalreserve	1,611,543,127.00				-1,611,543,127.00
2.Capitalization ofsurplus reserve
3.Lossoffsetby surplusreserve
4.Retained earningscarried forwardfrom changesin definedbenefit plans
5.Retained earningscarried forwardfrom other comprehensive income							-22,570,692.52			21,216,450.97		-1,354,241.55
6.Others
(V)Special reserve
1.Transferto specialreservein thecurrent period
2.Amount utilizedinthe currentperiod
(VI)Others
VI.Closing balanceofthe currentperiod	6,999,768,186.00			527,449,226.56	2,303,197,437.38		80,735,015.01		733,067,797.73	5,031,699,596.69		15,675,917,259.37

Amountforpriorperiod

In:RMB

Item	2019
	Sharecapital	Otherequityinstruments			Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Unappropriatedprofit	Others	Totalowners’equity
	Sharecapital	Preferredshares	Perpetualbonds	Others	Capitalreserve	Less:Treasuryshares	Othercomprehensiveincome	Specialreserve	Surplusreserve	Unappropriatedprofit	Others	Totalowners’equity
I.Closing balanceofthe precedingyear	4,114,616,722.00				4,006,219,481.93		106,904,925.00		288,526,845.75	1,859,961,356.05		10,376,229,330.73
Add: Changesin accounting policies							-2,433,837.63		361,900.76	3,257,106.87		1,185,170.00
Correctionsof priorperiod errors
Others
II.Opening balanceofthe currentyear	4,114,616,722.00				4,006,219,481.93		104,471,087.37		288,888,746.51	1,863,218,462.92		10,377,414,500.73
III.Changesfor theyear (decreaseis indicatedby “-”)	1,234,385,016.00				-935,821,756.62		21,137,812.87		73,446,284.67	455,285,725.89		848,433,082.81
(I)Total comprehensive income							21,137,812.87			734,462,846.66		755,600,659.53
(II)Owners’ contributions andreductionin capital					298,563,259.38							298,563,259.38
1.Ordinary shares contributedby owners
2.Capital contribution fromholdersof otherequity instruments
3.Share-based payment recognizedin owners’equity					298,563,259.38							298,563,259.38
4.Others
(III)Profit distribution									73,446,284.67	-279,177,120.77		-205,730,836.10
1.Transferto surplusreserve									73,446,284.67	-73,446,284.67
2.Distributions toowners(or shareholders)										-205,730,836.10		-205,730,836.10
3.Others
(IV)Transfers withinowners’ equity	1,234,385,016.00				-1,234,385,016.00
1. Capitalization ofcapital reserve	1,234,385,016.00				-1,234,385,016.00
2. Capitalization ofsurplus reserve
3.Lossoffset bysurplus reserve
4.Retained earningscarried forwardfrom changesin definedbenefit plans
5.Retained earningscarried forwardfrom other comprehensive income
6.Others
(V)Special reserve
1.Transferto specialreserve inthecurrent period
2.Amount utilizedinthe currentperiod
(VI)Others
IV.Closing balanceofthe currentperiod	5,349,001,738.00				3,070,397,725.31		125,608,900.24		362,335,031.18	2,318,504,188.81		11,225,847,583.54

III.BasicInformation

Luxshare Precision Industry Co.,Ltd.(“Company”or“the Company”)is a company limited byshares established by Shenzhen Zixin InvestmentCo.,Ltd.(“Zixin Investment”)and LuxshareLimited as founders after being approved by Shenzhen People’s Government and ShenzhenBureau of Trade and Industry in February 2009. Company’s UniformSocial Credit Code:91440300760482233Q.The Company was listed on Shenzhen Stock Exchange in September2010.TheCompany pertainsto thecommunication equipmentindustry.

AsofDecember31,2020,the Company issued 6,999,768,186 sharesin total,with itsregisteredcapital amounting to RMB6,999,768,186 and its registered office located at: 2/F, Block A,Sanyo NewIndustrialZone,WestHaoyiCommunity,Shajing Street,Baoan District,Shenzhen,China.Itsplace ofbusinesswaschanged in August2020,and the place before change isNo.17Kuiqing Road,Qinghuang Village,Qinghuang IndustrialZone,QingxiTown,Dongguan City,Guangdong, China, and the place after change is No.313 North Ring Road, Qingxi Town,Dongguan City, Guangdong, China. The main business activities of the Company include:production and operation of connecting wires, connectors, computer peripherals, plastichardware products. The Company’s parent company is Luxshare Limited, and its de factorcontrollersareWANGLaichun and WANGLaisheng.

These financialstatements were approved by the Company’s board of directors on April 20,2021 forissuance.

The relevantinformation ofsubsidiaries ofthe Company is seen in the Note“VII.Interests inOtherEntities”.

The changesin scope ofconsolidation forthisreporting period isseen in the Note“VI.Changesin ScopeofConsolidation”

IV.BasisofPreparation ofFinancialStatements

1.Basisofpreparation

The Company have prepared its financialstatementsin accordance with the requirements oftheAccounting StandardsforBusinessEnterprises—Basic Standard promulgated by the Ministry ofFinance of the PRC, specific accounting standards, guidelines for application of accountingstandardsforenterprises,interpretation ofaccounting standardsforenterprisesand otherrelevantregulations successively promulgated (collectively,“Accounting Standards for BusinessEnterprises”)and the Preparation Rules for Information Disclosure by Companies OfferingSecurities to the Public No. 15—General Provisions on Financial Reports issued by ChinaSecuritiesRegulatory Commission.

2.Going concern

The Company preparesits financialstatements on a going concern basis.The Company hastheability to continueasagoing concern within 12 monthsfromthe end ofthereporting period,anddetected no majoreventsthatmay affectsuch ability.

V.ImportantAccounting Policiesand Accounting Estimates

Reminderson specificaccounting policiesand accounting estimates:

Thedetailsareseen in thefollowing statements:

1.Statementofcompliancewith theAccounting StandardsforBusinessEnterprises

These financial statements comply with the requirements of the Accounting Standards forBusiness Enterprises promulgated by the Ministry of Finance of the PRC, and truly andcompletely reflectthe consolidated and parentcompany’s financialposition ofthe Company asof December 31,2020,and the consolidated and parentcompany’s operating results and cashflowsfortheyearthen ended.

2.Accounting period

TheCompany’saccounting yearisfromJanuary 1 to December31 ofeach calendaryear.

3.Operating cycle

TheCompany’soperating cycleis12 months.

4.Functionalcurrency

The Company usesRMBasitsfunctionalcurrency.The subsidiariesofthe Company determineits functionalcurrency based on the primary economic environmentin which such subsidiariesoperate.Thesefinancialstatementsarepresented in RMB.

5.Accounting treatmentofbusinesscombinationsinvolving enterprisesunder common controlandbusinesscombinationsnotinvolving enterprisesundercommon control

Business combination involving enterprises under common control: The assets and liabilitiesacquired by the absorbing party in a business combination (including goodwillformed throughthe acquisition by the ultimate controllerofthe absorbed party)are measured according to thecarrying amountofthe assets and liabilities ofthe absorbed party in the financialstatements ofultimate controlleron the combination date.The difference between the carrying amountofthenetassetsobtained in a businesscombination and the carrying amountofthe consideration paidforthe combination (orthe aggregate face value ofsharesissued asconsideration)isadjusted tothe equity premiumin the capitalreserve.If the equity premiumin the capitalreserve is notsufficientto absorb thedifference,any excessshallbeadjusted againstretained earnings.

Businesscombination notinvolving enterprisesundercommon control:The costofcombinationisthe aggregate ofthe fairvalues,atthe acquisition date,ofthe assetsgiven,liabilities incurredorassumed,and equity securitiesissued by the acquirer,in exchange forcontrolofthe acquiree.Where the costofa businesscombination exceedsthe acquirer’sinterestin the fairvalue oftheacquiree’s identifiable netassets,the difference is recognized as goodwill;where the costofabusiness combination is lower than the acquirer’s interest in the fair value of the acquiree’sidentifiable netassets,the difference is recognized in profitorloss forthe currentperiod.Theacquiree’s identifiable assets, liabilities and contingent liabilities that are acquired in thecombination meet the recognition criteria are measured at the fair value on the date ofacquisition.

The costsincurred directly attributable to the businesscombination arerecognized in profitorlossforthecurrentperiod when incurred;the transaction costs for issue of equity securities or debtsecurities arerecognized in theamountinitially recognized ofequity securitiesordebtsecurities.

6.Method ofpreparation ofconsolidated financialstatements

1.Scopeofconsolidation

The scope ofconsolidated financialstatements is determined on the basis ofcontrol,andincludes those ofthe Company and allofits subsidiaries.“Control”means the poweroftheCompany overtheinvestee,through which theCompany willenjoy variablereturnsbyparticipating in therelevantactivitiesand hastheability to usethepowerovertheinvestee

to affecttheCompany’sreturn amount.

2.Consolidation procedures

The Company regardsthe entire enterprise group asan accounting entity and preparestheconsolidated financial statements according to the uniformed accounting policies,reflecting the overallfinancialstatus,operating results and cash flows of this enterprisegroup. The effects of other intragroup transactions (between the Company and itssubsidiaries or between subsidiaries)are eliminated.Where the intragroup transactionsshowthat relevant assets have suffered impairment losses,those losses are recognizedfully.Where the accounting policiesand periodsadopted by allsubsidiariesare notin linewith thoseoftheCompany,thenecessary adjustmentsaremadeto thefinancialstatementsofthese subsidiaries based on the accounting policies and periods ofthe Company when

preparing theconsolidated financialstatements.

That portion of owner’s equities, net profits or losses and comprehensive income ofsubsidiariesforthe period attributable to minority interestsare separately presented in theconsolidated balance sheet belowthe“owner’s equity”line item, in the consolidatedincome statementbelowthe“netprofit”and“totalcomprehensive income”as“minorityinterests”.When the amount of loss for the currentperiod attributable to the minorityshareholders of a subsidiary exceeds the minority shareholders’share of the openingbalance of owner’s equity of the subsidiary, the excess is allocated against minority

interests.

(1)Increasein subsidiesorbusiness

Where a subsidiary orbusinessisacquired during the reporting period through a businesscombination involving enterprisesundercommon control,operating resultsand cash flowsofthis subsidiary orbusiness fromthe beginning ofthe period in which the combinationtakes place to the end ofthe reporting period are included in the consolidated financialstatements. Meanwhile, the adjustments are made to the opening balances of theconsolidated financialstatementsand the relevantitemsofthe comparative statement,andthe combined reporting entity isdeemed to have existed since the time when the ultimate

controllerbeginsto exercisecontrol.

Where the Company becomes capable to exercise control over an investee under thecommon controldueto additionalinvestmentorotherreasons,forequity investmentsheldbefore acquiring control of the absorbed party, the relevant gains or losses, othercomprehensive income and otherchangesin netassetsrecognized during the period fromtheearlierofthedateofacquisition oforiginalequity orthedatewhen theabsorbing partyand the absorbed party are under the common control until the combination date arerespectively offsetagainstopening balances ofretained earnings during the comparative

reporting period orprofitorlossforthecurrentperiod.

Where a subsidiary orbusinessisacquired during the reporting period through a businesscombination not involving enterprises under common control, it is included in theconsolidated financialstatements fromthe date ofacquisition based on the fairvalue ofidentifiable net assets, liabilities and contingent liabilities determined on the date of

acquisition.

Where the Company becomes capable to exercise control over an investee not undercommon controldue to additionalinvestmentorotherreasons,forthe acquiree’s equityheld priorto the date ofacquisition,the Company remeasuresthe fairvalue ofthe equityon the date ofacquisition,and the difference between the fairvalue ofthe equity and itscarrying amountisrecognized in profitorlossforthe currentperiod.Where the acquiree’sequity held priorto the date ofacquisition involvesothercomprehensive income thatcanbe reclassified to profitorlossand changes in otherowners’equity underequity method,such othercomprehensive income and changesare transferred to the income ofthe period

in which thedateofacquisition falls.

(2)Disposalofsubsidiaries

①Generaldisposal

When the Company loses control over the investee due to disposal of partial equityinvestments or other reasons, for the remaining equity investments after disposal, theCompany remeasures the remaining equity investments afterdisposalatthe fairvalue onthe date when the Company loses its control.The difference between the sumof theconsideration fromdisposalofequity and the fairvalue ofremaining equity lessthe sumofan originalsubsidiary’s share ofnetassets and goodwillcontinuously calculated fromthe date of acquisition or combination according to original shareholding ratio isrecognized as the investment return for the period in which the control is lost. Othercomprehensive income relating to the originalsubsidiary’sequity investmentsthatwillbereclassified to profitorlossand changesin otherowners’equity underthe equity method

istransferred into theinvestmentincomeforthecurrentperiod when thecontrolislost.

②Disposalofsubsidiariesby steps

Where the subsidiary’s equity investments are disposed by steps through multipletransactions untilthe controlis lost,and the terms and conditions of alltransactions ondisposal of the subsidiary’s equity investments and the economic impact thereof fallwithin one ormore ofthe following circumstances,then itusually indicatesthatmultiple

transaction eventsbelong asinglepackage:

i.thesestransactionsare concluded simultaneously orafterthe influence on each otheris

considered;

ⅱ.thesetransactionsaawholecan achieveacompletecommercialresult;

iii.theoccurrenceofonetransaction dependson thatofatleastoneothertransaction;

ⅳ.a transaction is noteconomicalalone,buteconomicalwhen considered togetherwith

othertransactions.

Where all transactions belong to a single package, the Company accounts for suchtransactions as one transaction to dispose of and lose its control over the subsidiary;however,the difference between the proceeds fromeach disposalbefore loss ofcontroland the share owned by the Company in the netassetsofthe subsidiary in relation to theinvestmentdisposed ofis recognized in othercomprehensive income in the consolidatedfinancialstatements,which iswholly transferred to theprofitorlossin theperiod in which

thecontrolislost.

Where alltransactions do notbelong to a single package,priorto the loss ofcontrol,theCompany accounts for such transactions as partial disposal of a subsidiary’s equityinvestments in the event that the control is notlost; and when the control is lost,theCompany accounts for such transactions in accordance with the general methods of

disposalofsubsidiaries.

(3)Acquisition ofasubsidiary’sminority equity

The difference between the long-termequity investmentsnewly obtained by the Companydue to acquisition of minority equity and its share of the subsidiary’s net assetscontinuously calculated fromthe date of acquisition or combination according to newshareholding ratio is adjusted against the capital reserve (capital premium)in theconsolidated balance sheet.Ifthe equity premiumin the capitalreserve isnotsufficientto

absorb thedifference,any excessshallbeadjusted againstretained earnings.

(4)Partialdisposalofthe subsidiary’s long-termequity investments in the eventthatthe

controlisnotlost

The difference between the proceedsfromdisposaland the share owned by the Companyin the netassets ofthe subsidiary in relation to the long-termequity investmentdisposedofthatis calculated continuously fromthe date ofacquisition orcombination is adjustedagainstthe capitalreserve (capitalpremium).In case the capitalpremiumisnotsufficient

to absorb thedifference,theremaining balanceisadjusted againsttheretained earnings.

7.Classification ofjointarrangementsand accounting treatmentofjointoperations

Jointarrangementsareclassified into jointoperationsand jointventures.

Where a party to a jointarrangementenjoys relevantassets and assumes relevantliabilities ofsuch an arrangement,thiscasebelongsto ajointoperation.

TheCompany recognizesthefollowing itemsrelating to itsinterestin thejointoperation:

(1)the assets held individually by the Company,and the Company’s share of the assets heldjointly;

(2)the liabilities incurred individually by the Company, and the Company’s share of theliabilitiesincurred jointly;

(3)theCompany’srevenuefromthesalesofitsshareofoutputofthejointoperation;

(4)theCompany’sshareofrevenuefromthesalesofassetsby thejointoperation;and

(5)the expenses incurred individually by the Company, and the Company’s share of theexpensesincurred jointly by thejointoperation.

TheCompany accountsforinvestmentsin jointventuresusing theequity method and thedetailsareseenin Note“III.(XIV)Long-termEquity Investments”

8.Recognition ofcash and cash equivalents

Cash comprises cash on hand and deposits of the Company thatcan be readily withdrawn ondemand.Cash equivalents comprise short-term,highly liquid investments held by the Companythatare readily convertible into known amountsofcash and which are subjectto an insignificantrisk ofchangesin value.

9.Foreign currency transactionsand translation offoreign currency financialstatements

1.Foreign currency transactions

The foreign currency transactions are recorded by translating the amount of a foreign

currency into RMBatthespotexchangerateprevailing on the1stofeach month.

The balances offoreign currency monetary items are translated using the spotexchangerate atthe balance sheetdate.Exchange differences arising therefromare recognized inprofit or loss for the current period, except for exchange differences generated byspecific-purpose borrowings in a foreign currency related to acquisition of qualifyingassets, which should be accounted for according to the capitalization principles of

borrowing costs.

2.Translation offinancialstatementsdenominated in foreign currencies

Assets and liabilities in the balance sheet are translated at the spot exchange rateprevailing atthe balance sheetdate.An itemofowners’equity exceptfor“unappropriatedprofit”are translated atthe spotexchange rates atthe dates on which such items arose.

Income and expensesin the income statementare translated atthe spotexchange ratesor

similarratesatthedatesofthetransactions.

When theCompany disposesofaforeign operation,ittransfersthetranslation differencesrelating to

translation ofthefinancialstatementsofthatforeign operation fromtheowner’sentity to profitorlossforthecurrentperiod.

10.Financialinstruments

When the Company becomesa party to a financialinstrumentcontract,a financialasset,liabilityorequity instrumentisrecognized.

1.Classification offinancialinstruments

Based on the Company’sbusinessmodelformanaging financialassetsand the cash flowcharacteristics of financial assets, the financial assets are classified into on initialrecognition:financialassets measured atits amortized cost,financialassets atfairvaluethrough othercomprehensive income,and financialassets atfairvalue through profitor

loss.

The Company classifies financialassets thatmeetthe following criteria atthe same timeand are not designated as at fair value through profit or loss as the financial assets

measured atamortized cost:

－thebusinessmodelaimsto collectcontractualcash flows;and

－the contractualcash flows are generated only frompaymentofprincipaland interest

on theoutstanding principal;

The Company classifies financialassets thatmeetthe following criteria atthe same timeand are notdesignated as atfairvalue through profitorloss as the financialassets (debt

instruments)atfairvaluethrough othercomprehensiveincome:

－thebusinessmodelaimsto collectcontractualcash flowsand sellsuch financialassets;and

－the contractualcash flows are generated only frompaymentofprincipaland interest

on theoutstanding principal;

TheCompany irrevocably designatesthenon-trading equity instrumentsasfinancialassets(equity instruments)at fair value through other comprehensive income on initialrecognition.Such designation ismade on the basisofa single investment,and the relevant

investmentsmeetthedefinition ofan equity instrumentfromtheissuer’sperspective.

Exceptforthe financialassets measured atamortized costand the financialassets atfairvalue through othercomprehensive income,the Company classifiesallofotherremainingfinancialassetsasthe financialassetsatfairvalue through profitorloss.Ifthe accountingmismatch can be eliminated orsignificantly reduced on initialrecognition,the Companymay irrevocably designate the financialassets thatshould have been classified as thosemeasured atamortized costorthose atfairvalue through othercomprehensive income as

thefinancialassetsatfairvaluethrough profitorloss.

On initialrecognition,financialliabilitiesare classified into the following two categories:financialliabilitiesatfairvalue through profitorlossand financialliabilitiesmeasured at

amortized cost.

Afinancialliability may be designated as atfair value through profitor loss on initial

measurementifoneofthefollowing conditionsismet:

1)thedesignation eliminatesorsignificantly reducesaccounting mismatch.

2)a group offinancialliabilities ora group offinancialliabilities and financialassets ismanaged and itsperformance isevaluated on a fairvalue basis,and information aboutthegroup isreported on thatbasisto the enterprise’skey managementpersonnelaccording to

such risk managementorinvestmentstrategy setoutin officialwritten documents.

3)thisfinancialliability containsembedded derivativesthatneed to besplitseparately.

2.Recognition and measurementoffinancialinstruments

(1)Financialassetsmeasured atamortized cost

The financial assets measured at amortized cost, including notes receivable, accountsreceivable,otherreceivables,long-termreceivablesand debtinvestments,etc.,are initiallymeasured at fair value, and the relevant transaction costs are charged to the initiallyrecognized amount;the accounts receivable thatdo notcontain any significantfinancingcomponent or are recognized by the Company without taking into consideration thesignificantfinancing componentsunderthe contractswith a termoflessthan one yearare

initially measured atthecontractualtrading price.

The interestcalculated using the effective interestmethod during the holding period is

recognized in theprofitorlossforthecurrentperiod.

On recovery ordisposalofa financialasset,the difference between the proceeds and thecarrying amountofthefinancialassetisrecognized in profitorlossforthecurrentperiod.

(2)Financialassets(debtinstruments)atfairvaluethrough othercomprehensiveincome.

Financial assets (debt instruments)at fair value through other comprehensive income,including receivable financing and other debtinvestments,are initially measured atfairvalue,and the relevant transaction costs are recognized in initially recognized amount.

These financialassetsare subsequently measured atfairvalue,changesin fairvalue otherthan the interestcalculated using the effective interestmethod,impairmentloss or gain

and profitorlosson exchangearerecognized in othercomprehensiveincome.

On derecognition,the cumulative gain orlosspreviously included in othercomprehensiveincome isremoved outfromothercomprehensive income and recognized in profitorloss

forthecurrentperiod.

(3)Financialassets(equity instruments)atfairvaluethrough othercomprehensiveincomeFinancialassets (equity instruments)atfair value through other comprehensive income,including otherequity investments,are initially measured atfairvalue,and the relevanttransaction costs are recognized in initially recognized amount.These financialassetsaresubsequently measured atfair value,and changes in fair value are recognized in othercomprehensive income.The dividends received are recognized in profitor loss for the

currentperiod.

On derecognition,the cumulative gain orlosspreviously included in othercomprehensiveincome is removed out fromother comprehensive income and included in retained

earnings.

(4)Financialassetsatfairvaluethrough profitorloss

Financialassets atfair value through profitor loss,including held-for-trading financialassets, derivative financial assets and other non-current financial assets, are initiallymeasured atfairvalue,and the relevanttransaction costsare included in profitorlossforthe currentperiod.These financialassets are subsequently measured atfair value,and

changesin fairvalueareincluded in profitorlossforthecurrentperiod.

(5)Financialliabilitiesatfairvaluethrough profitorloss

Financialliabilitiesatfairvalue through profitorloss,including held-for-trading financialliabilities and derivative financialliabilities,are initially measured atfair value,and therelevanttransaction costs are recognized in profitor loss for the currentperiod.Thesefinancialliabilities are subsequently measured atfairvalue,and changes in fairvalue are

recognized in profitorlossforthecurrentperiod.

On derecognition,thedifference between theircarrying amountand the consideration paid

isincluded in profitorlossforthecurrentperiod.

(6)Financialliabilitiesmeasured attheamortized cost

The financialliabilities measured atthe amortized cost,including short-termborrowings,notes payable,accounts payable,other payables,long-termborrowings,bonds payable,long-termpayables,are initially measured atfairvalue,and the relevanttransaction costs

arecharged to theinitially recognized amount.

The interestcalculated using the effective interestmethod during the holding period is

recognized in theprofitorlossforthecurrentperiod.

On derecognition,the difference between the consideration paid and the carrying amount

ofthesefinancialliabilitiesisrecognized in profitorlossforthecurrentperiod.

3.Derecognition and transferoffinancialassets

TheCompany derecognizesafinancialassetwhen oneofthefollowing conditionsismet:

－thecontractualrightto receivecash flowsfromthefinancialassetshasexpired;

－the financialassethas been transferred and allthe risks and rewards ofownership of

thefinancialassetaresubstantially transferred to thetransferee;

－the financialassethasbeen transfer,and the Company neithertransferred norretaineda substantialportion ofallrisks and rewards incidentalto the ownership ofthe financial

asset,butdid notretain controloverthefinancialasset.

When a financialassetistransferred,ifthe Company retainssubstantially allthe risksand

rewardsofownership ofafinancialasset,itdoesnotderecognizethefinancialasset.

When the Company determines whether a transfer of a financial asset satisfies thederecognizing criteriaprescribed above,itgivesweightto thesubstanceratherthan form.

The Company dividesa transferofa financialassetinto a transferofthe financialassetinitsentirety ora transferofa partofthe financialasset.Fora transferofa financialassetinits entirety thatsatisfies the derecognizing criteria,the difference between the following

two amountsisrecognized in profitorlossforthecurrentperiod:

(1)thecarrying amountofthefinancialassettransferred;and

(2)the sumof the consideration received fromthe transfer and (if the financial assettransferred is a financial asset (debt instrument)measured at fair value through othercomprehensive income)any cumulative changes in fair value that was originally

recognized in owners’equity.

Ifa partofthe transferred financialassetqualifiesforderecognizing,the carrying amountofthe transferred financialassetin itsentirety isallocated between the partthatcontinuesto be recognized and the partthatis derecognized,based on the relative fair values ofthose parts.The difference between the following two amounts is recognized in profitor

lossforthecurrentperiod:

(1)thecarrying amountallocated to thepartderecognized;and

(2)the sumofthe consideration received forthe partderecognized and (if the financialassettransferred isa financialasset(debtinstrument)measured atfairvalue through othercomprehensive income)the amount of the part derecognized corresponding to the

cumulativechangesin fairvaluethatwasoriginally recognized in owner’sequity.

Afinancialassetthatdoes notqualify forderecognition continues to be recognized,and

theconsideration received isrecognized asafinancialliability.

4.Derecognition offinancialliabilities

If the present obligations of a financial liability are discharged in part or whole, thefinancialliability orany partthereofisdisrecognized;an agreementbetween theCompanyand the creditorto replacethe existing financialliability with a newfinancialliability withsubstantially differenttermsisaccounted forasan extinguishmentofthe existing financial

liability and therecognition ofanewfinancialliability.

Asubstantialmodification to the termsofan existing financialliability ora partthereofisaccounted forasan extinguishmentofthe existing financialliability ora partthereof,andthe financialliability with modified terms is recognized asa newfinancialliability atthe

sametime.

When the Company derecognizes a financialliability ora partthereof,itrecognizes thedifference between the carrying amount of the financial liability derecognized and theconsideration paid (including any non-cash assets transferred or newfinancialliabilities

assumed)in profitorlossforthecurrentperiod.

Ifthe Company repurchasesa partofa financialliability,itallocatesthe carrying amountofthefinancialliability in itsentirety between the partthatcontinuesto berecognized andthe partthatisderecognized based on the relative fairvaluesofthose partson the date ofthe repurchase. The difference between the carrying amount of the financial liabilityderecognized and the consideration paid (including any non-cash assetstransferred ornew

financialliabilitiesassumed)isrecognized in profitorlossfortheperiod.

5.Method ofdetermination ofthefairvalueoffinancialassetsand financialliabilities

Ifthere isan active marketfora financialinstrument,thequoted price in the active marketis used to establish the fairvalue ofthe financialinstrument.Ifthere is no active marketfora financialinstrument,a valuation technique is used to establish the fairvalue ofthefinancialinstrument.On valuation,the Company adopts the valuation technique whichappliesto the currentcircumstancesand issupported by sufficientdata available and otherinformation, selects the input value consistent with the characteristics of the asset orliability considered by the marketparticipants in the transaction of the relevantassetorliability,and prioritizesusing the relevantobservable inputvalue.The unobservable inputvalue can be used only when the relevantobservableinputvalue cannotbeobtained orit’s

impracticableto obtain therelevantobservableinputvalue.

6.Testand accounting treatmentofimpairmentoffinancialassets

The Company estimates the expected credit losses of financial assets measured atamortized cost and financial assets (debt instruments)at fair value through other

comprehensiveincomeon asingleorjointbasis.

The Company comprehensively considersreasonable and well-founded information aboutpastevents,currentconditions,and predictions offuture economic conditions as wellasthe possibility ofdefaultto calculate the probability-weighted amountofthe presentvalueofthe difference between cash flowsreceivable fromcontractsand cash flowsexpected to

berecovered and includeitin theexpected creditloss.

The Company recognizes a loss allowance equalto the lifetime expected creditlosses ifthe creditrisk hasincreased significantly since initialrecognition,orto the expected creditlosses within the next12 months if the creditrisk has notincreased significantly sinceinitialrecognition.The added orreversed lossreservesarising therefromare recognized inprofitorlossforthecurrentperiod asimpairmentlossesorgains.

The Company compares the possibility of default at the balance sheet date with thepossibility of default upon initial recognition, to determine the relative change in thedefaultrisks of financialinstrumentduring the expected lifetime,and assess determinewhetherthe creditrisk ofthe financialinstrumentshasincreased significantly since initialrecognition.If a financialinstrumentis pastdue for more than 30 days,the Companyusually believes that credit risk of the financial instrument has increased significantly,unlessthere isclearevidence thatcreditrisk ofthe financialinstrumenthasnotincreased

significantly sinceinitialrecognition.

If a financial instrument has lowcredit risk on the balance sheet date, the Companybelieves thatcreditrisk of the financialinstrumenthas notincreased significantly since

initialrecognition.

If there is objective evidence indicating thata financialassethas been impaired for itscredit, the Company makes a provision for impairment of the financial asset on an

individualbasis.

With respectto accounts receivable and contractassets thatarise fromthe transactionsregulated under the Accounting Standard for Business Enterprises No. 14—Revenue(2017), whether to include significant financing components, the Company alwaysmeasuresitslossreservesbased on an amountequalto the expected creditlossduring the

entirelifeofaccountsreceivable.

Forlease receivables,the Company alwaysmeasuresitslossreservesbased on an amount

equalto theexpected creditlossduring theentirelifeofthesereceivables.

IftheCompany no longerreasonably expectsthatthecontractualcash flowsofafinancialassetcan berecovered in wholeorin part,itdirectly reducesthecarrying amountofsuch financialasset.

11.Notesreceivable

12.Accountsreceivable

13.Receivablefinancing

14.Otherreceivables

Determination and accounting treatmentofexpected creditlossesofotherreceivables

15.Inventories

1.Classification and costofinventories

Inventories are classified into: materials in transit, rawmaterials, revolving materials,goodson hand,productsin process,goodssold,work in process-outsourced,etc.

Inventories are initially measured at cost. Cost of inventories comprises all costs ofpurchase,costs ofconversion and otherexpenditures incurred in bringing the inventories

to theirpresentlocation and condition.

2.Pricing methodsofinventoriestransferred out

The Company delivers inventories at the price calculated using the weighted-average

systemmonthly in arrears.

3.Determination basisofnetrealisablevalueofdifferenttypesofinventories

Atthe balance sheetdate,inventoriesare measured atthe lowerofcostand netrealisablevalue.If the costof inventories is higher than the netrealisable value,a provision fordecline in value ofinventories ismade.Netrealisable value isthe estimated selling pricein the ordinary course ofbusinesslesscostsexpected to be incurred untilcompletion and

theestimated costsnecessary to makethesaleand relevanttaxes.

Forfinished products,goodson hand,materialsavailable forsalesand othermerchandiseinventories available for sales, in the ordinary production and operation process,theirrealisablenetvalueisdetermined attheestimated selling priceoftheseinventorieslesstheestimated costsnecessary to make the sale and relevanttaxes;forthe inventoriesthatneedto be processed,in the ordinary production and operation process,their realisable netvalue isdetermined atthe estimated selling price offinished products lessthe coststo beincurred untilcompletion and the estimated costsnecessary to make the sale and relevanttaxes.The netrealisable value ofthe quantity ofinventoriesheld to satisfy salesorservicecontractsisbased on the contractprice.Ifthe quantity ofinventoriesheld ismore than thequantity ordered in the sales contracts,the netrealisable value of the excess portion of

inventoriesisbased on generalselling prices.

Afterthe provision fordecline in value ofinventories is made,ifthe circumstances thatpreviously caused inventoriesto bewritten down belowcostno longerexistso thatthenetrealizable value ishigherthan the carrying amountofinventories,the reversalis made tothe extentofthe amountoriginally provided forthe decline in value ofinventories.The

amountofthereversalisrecognized in profitorlossforthecurrentperiod.

4.Inventory systemsforinventories

Aperpetualinventory systemisadopted.

5.Amortization oflow-valueconsumablesand packing materials

(1)Thelow-valueconsumablesareamortized using immediatewrite-offmethod.

(2)Thepacking materialsareamortized using immediatewrite-offmethod.

16.Contractassets

1.Recognition methodsand standardsofcontractassets

The Company presents the contractassets orliabilities in the balance sheetbased on therelationship between performance obligations and customer payments. The Companypresents the rightto receive the consideration for the goods or services thathave beentransferred oroffered to customers(thatis,depending on factorsotherthan the passage oftime)asthe contractassets.The Company liststhe contractassetsand liabilitiesunderthesame contract as net amount. The Company separately presents its owned right tounconditionally (that is,only depending on the passage of time)receive consideration

fromcustomersastheaccountsreceivable.

2.Determination and accounting treatmentofexpected creditlossesofcontractassets

Determination and accounting treatmentof expected creditlosses of contractassets areseen in the Note“(X)VI. Test and Accounting Methods of Impairment of Financial

Assets”.

17.Contractcosts

Accounting policiesadopted fromJanuary 1,2020

Contractcostsincludecontractperformancecostand contractacquisition costs.

The costincurred by the Company to performa contractisnotbe governed by the standardsoninventories,fixed assets orintangible assets,and ifmeeting the following criteria,isrecognizedasan assetasthecontractperformancecost:

•such costisdirectly related to an existing orexpected contract.

•Such cost increases the the Company’s future resources for fulfilling its performanceobligations.

•Such costisexpected to berecovered.

Ifthe incrementalcostincurred by the Company to obtain a contractisexpected to be recovered,itisrecognized asan assetasthecostforcontractacquisition.

TheCompany amortizesthe assetrelated to thecontractcoston thesame basisastherecognitionofthe revenue ofthe goodsorservicesrelated to the asset;provided thatifthe costforcontractacquisition is amortized fornotmore than one year,the Company includes itinto the profitorcostforthecurrentperiod in which itisincurred.

If the carrying amount of the asset related to the contract cost is higher than the differencebetween the following two amounts,then the Company makesa provision forimpairmentoftheexcessand recognizesitasan impairmentlossfortheasset:

1.theremaining consideration expected to beobtained dueto thetransferofthegoods;and

2.thecostto beincurred dueto thetransferoftherelevantgoodsorservices.

Iftheimpairmentfactorsforpriorperiodshavechanged afterwardsso thattheabovedifferenceishigherthan thecarrying amountoftheasset,then theCompany reversesaprovision forimpairmentoriginallymadeand includesitin theprofitorlossforthecurrentperiod,provided thatthecarrying amountafterreverseshould notexceed thecarrying amounttheassetwould havereached on thedateofreversehadtheprovision forimpairmentbeen notmade.

18.Held-for-saleassets

The assets of which carrying amount is recovered mainly through sales (including throughexchange of non-monetary assets with commercial substance)rather than continuous use ofnon-currentassetsordisposalgroupsareclassified astheheld-for-saleassets.

The Company classifies the non-currentassets ordisposalgroups which meetallthe followingconditionsastheheld-for-saleassets:

(1)they can be sold immediately undercurrentconditions according to the practice ofsales ofsuch assetsordisposalgroupsin similartransactions;and

(2)the sale is very likely to happen,thatis,the Company has made a resolution on a sale planand obtained a confirmed purchase commitment, and such sale is expected to be completedwithin one year.The sale has been approved by the relevantauthority orregulatory departmentoftheCompany ifitisrequired to beso approved by therelevantprovisions.

Forthe non-currentassets(excluding financialassets,deferred tax assets,assetsformed by the employeebenefits)ordisposalgroups classified as the held-for-sale assets,iftheircarrying amountis higherthanthe fair value netof sale expenses,then the carrying amountis reduced to the fair value netof saleexpenses.Thatreduction in amountis recognized as an impairmentloss of the assets and charged toprofitorlossforthe currentperiod.Aprovision forimpairmentofthe held-for-sale assets is recognizedaccordingly.

19.Debtinvestments

20.Otherdebtinvestments

21.Long-termreceivables

22.Long-termequity investments

1.Judgmentcriteria ofjointcontroland significantinfluence

Joint control is the agreed sharing of control over an arrangement, and the relevantactivitiesofsuch arrangementmustbe decided upon the unanimousconsentofthe partiessharing control.If the Company can exercise jointcontrolover the investee along withotherpartiesto jointventuresand enjoy rightsovernetassetsofthe investee,the investeeisajointventureoftheCompany.

Significant influence is the power to participate in the financial and operating policydecisions of an investee,butis notcontrolor jointcontrolwith other parties over theestablishmentof those policies.If the Company can have significantinfluence over the

investee,theinvesteeisan associateoftheCompany.

2.Determination ofinitialinvestmentcost

(1)Long-termequity investmentsformed by businesscombination

In case of a long-termequity investment of a subsidiary acquired through a businesscombination involving entities under common control,the initialinvestmentcostof thelong-termequity investmentistheCompany’sshareofthecarrying amountoftheowners’equity of the absorbed party in the consolidated financial statements of the ultimatecontrolleratthe date ofcombination.The differencebetween the initialinvestmentcostofthe long-termequity investmentand the carrying amountofthe consideration paid forthecombination istreated asan adjustmentto the capitalreserve.In case the capitalreserve isnot sufficient to absorb the difference, the remaining balance is adjusted against theretained earnings. Where the Company becomes capable to exercise control over aninvestee under the common control due to additional investment or other reasons,thedifference between the initial investment cost of the long-termequity investmentrecognized in the lightof above principles and the sumof the carrying amountof thelong-termequity investment prior to combination plus the carrying amount of newconsideration paid forfurtheracquisition ofshareson combination date isadjusted to theequity premium. If the equity premiumis not sufficient to absorb the difference,any

excessisadjusted againstretained earnings.

In case ofa long equity investmentacquired through a businesscombination notinvolvingenterprises under common control, the Company regards the cost of combinationdetermined on the date ofacquisition asthe initialinvestmentcostofthe long-termequityinvestment.If the Company becomes capable to exercise control over an investee notundercommon controldueto additionalinvestmentorotherreasons,theinitialinvestmentcostis the sumofthe carrying amountof the equity investmentoriginally held and the

newinvestmentcost.

(2)Long-termequity investmentsobtained through formsotherthan businesscombinationFora long-termequity investmentacquired by paying cash,the initialinvestmentcostis

theactualpurchaseprice.

For a long-termequity investmentacquired by the issue of equity securities,the initialinvestmentcostisthefairvalueofequity securitiesissued.

3.Subsequentmeasurementand determination ofprofitorloss

(1)Long-termequity investmentsaccounted forusing thecostmethod

The Company accountsforthe long-termequity investments ofthe subsidiariesusing thecostmethod,unless these investments meetthe held-for-sale conditions.Exceptforcashdividends or profit distributions declared but undistributed included in the price orconsideration actually paid on acquisition ofinvestments,theCompany recognizesitscashdividends or profit distributions declared by the investee as investment income in the

currentperiod.

(2)Long-termequity investmentsaccounted forusing theequity method

The long-termequity investmentsofassociatesand jointventuresare accounted forusingthe equity method.Where the initial investment costof a long-termequity investmentexceedstheCompany’sinterestin thefairvaluesofthe investee’sidentifiable netassetsatthe acquisition date,no adjustmentismade to the initialinvestmentcostofthe long-termequity investment.Where the initialinvestmentcostislessthan the Company’sinterestinthefairvaluesoftheinvestee’sidentifiable netassetsattheacquisition date,thedifferenceis charged to profitor loss for the currentperiod,and the costof the long-termequity

investmentisadjusted accordingly.

The Company respectively recognizes its share of the net profits or losses and othercomprehensive income made by the investee as investmentincome or losses and othercomprehensive income, and adjusts the carrying amount of the long-termequityinvestment accordingly. The carrying amount of the long-termequity investment isreduced by the portion of any profit distributions or cash dividends declared by theinvestee thatis attributed to the Company.The Company adjusts the carrying amountofthe long-termequity investmentforotherchangesin owner’sequity ofthe investee otherthan netprofits orlosses,othercomprehensive income and profitdistributions (“changes

in otherowners’equity”),and includesthecorresponding adjustmentin owner’sequity.

The Company recognizes its share of the investee’s netprofits or other comprehensiveincome and changes in otherowners’equity aftermaking appropriate adjustments basedon the fairvalue ofthe investee’sidentifiable assetsatthe date acquisition in accordance

with itsaccounting policiesand period.

For unrealized profits or losses resulting fromintragroup transactions between theCompany and associates or joint ventures, the portion attributable to the Company iseliminated,and based on this,the investmentincome isrecognized,unlessthe invested orsold assets constitute the business.The impairmentloss ofassets in the unrealized lossesresulting fromintragroup transactions between the Company and the investee is fully

recognized.

The Company discontinues recognizing its share of netlosses of the associate or jointventure after the carrying amountof the long-termequity investmenttogether with anylong-terminterests thatin substance formpartof the Company’s netinvestmentin theassociate orjointventure are reduced to zero,exceptto the extentthatthe Company hasincurred obligations to assume additional losses. Where the associate or joint venturemakes net profits subsequently, the Company resumes recognizing its share of those

profitsonly afteritsshareoftheprofitsequalstheshareoflossesnotrecognized.

(3)Disposaloflong-termequity investments

On disposalofalong termequity investment,thedifferencebetween theproceedsactually

received and thecarrying amountisrecognized in profitorlossforthecurrentperiod.

If, on partial disposal of long-termequity investments accounted for using the equitymethod,the remaining equity is stillaccounted forusing the equity method,the portionpreviously included in othercomprehensive income is accounted foron a pro-rata basis,with the same basisasthe relevantassetsorliabilitiesdirectly disposed ofby the investee,and changes in otherowners’equity are transferred to profitorlossforthe currentperiod

on apro-ratabasis.

When the Company loses joint control or significant influence on the investee due todisposalofequity investmentsorotherreasons,the originalequity investmentincluded inothercomprehensive income due to the use of equity method is accounted for on samebasis as the relevant assets or liabilities directly disposed of by the investee when theequity method discontinues,and the changes in otherowners’equity are fully transferred

to profitorlossforthecurrentperiod when theequity method discontinues.

Where the Company loses control over the investee due to disposal of partial equityinvestments,ifin preparing separate financialstatements,the Company can exercise jointcontrol or significant influence on the investee by virtue of its remaining equity, theremaining equity switches to the equity method foraccounting,and is adjusted as ifitisaccounted for using the equity method since acquisition.Other comprehensive incomerecognized prior to acquisition of the control on the investee is carried forwardproportionally on the same basis as the investee’s direct disposal of related assets orliabilities,and changes in other owners’equity recognized using the equity method aretransferred to profitor loss for the currentperiod on a pro-rata basis;if the Companycannot exercise joint control or significant influence on the investee by virtue of itsremaining equity,the remaining equity isrecognized asfinancialassets,and the differencebetween the fair value and the carrying amount on the date when the Company losescontrolis recognized in profitor loss for the currentperiod,and other comprehensiveincome and changesin otherowners’equity recognized priorto acquisition ofthe controlon theinvesteearefully carried forward.

Where alltransactionsfromdisposalofequity investments in a subsidiary through multiple transactionsby steps until the loss of control belong to a single package, the Company shall accounts for eachtransaction as a disposal of equity investments in a subsidiary and the loss of control; however,thedifference between the proceedsfromeach disposalbefore lossofcontroland the carrying amountofthelong-termequity investments corresponding to the equity disposed of is first recognized in othercomprehensive income in separate financialstatements and then transferred to the profitor loss in theperiod in which the control is lost. Where all transactions does not belong to a single package,theCompany accountsforeach transaction respectively.

23.Investmentproperties

Measurementofinvestmentproperties

Measured atcost

Depreciation oramortization methods

The Company’sinvestmentproperty isproperty held to earn rentalsorforcapitalappreciation orboth,including land use rightsthathave been leased out,land use rightsthatare held and read tobetransferred afterappreciation,and buildingsthathave been leased out(including thosethatareavailable forletafterbeing builtby the Company itselforcompletion ofdevelopmentactivities,and arebeing builtorin progressforletin thefuture).

The Company measures the existing investment properties using the cost model.Subsequentcosts incurred for an investmentproperty are included in the costof the investmentpropertywhen itisprobable thatthe associated economic benefitswillflowto the Company and the costofthe assetcan be measured reliably.Subsequentcosts thatfailto meetthe recognition criteriaabove are recognized in profitorloss in the period in which they are incurred.Forinvestmentproperties measured using costmodelformeasurement-the buildings available forletfollowsthe same depreciation policies as those of the Company’s fixed assets, and land use rightsavailableforletfollowthesameamortization policiesasthoseofintangibleassets.

24.Fixed assets

(1)Recognition offixed assets

Fixed assetsare held foruse in the production orsupply ofgoodsorservices,forrentalto others,orforadministrative purposes, and have useful lives more than one accounting year. An fixed asset isrecognized only when both ofthe following conditionsare met:(1)itisprobable thateconomic benefitsassociated with thefixed assetwillflowto theenterprise;and (2)thecostoffixed assetscan bemeasuredreliably.Afixed assetofthe Company is initially measured atits cost,and in determining the costofafixed asset,the Company considersthe effectofany expected costsofabandoning the assetatthe end ofitsuse.Subsequentexpendituresincurred fora fixed assetare included in thecostofthefixed assetwhenitisprobablethattheassociated economic benefitswillflowto theCompany and thecostoftheassetcanbe measured reliably; the carrying amount of the part to be replaced is derecognized; all of othersubsequentexpendituresarerecognized in profitorlossin theperiod in which they areincurred.

(2)Method ofDepreciation

Category	Methodofdepreciation	Estimatedusefullife(years)	Residualvaluerate	Annualdepreciationrate(%)
Buildings	Straight-linemethod	20	10	4.50
Machineryequipment	Straight-linemethod	5-10	10	9-18
Auxiliaryproduction equipment	Straight-linemethod	5-10	10	9-18
Transportation equipment	Straight-linemethod	5	10	18
Mouldequipment	Straight-linemethod	3	10	30
Officeequipment	Straight-linemethod	3-5	10	18-30
Computerequipment	Straight-linemethod	3-5	10	18-30
Otherequipment	Straight-linemethod	5	10	18

determinesthe depreciation rate on the category,estimated usefullife and estimated netresidualvalue offixed assets. For fixed assets with the provision for impairment, the depreciation amount will bedetermined in the future based on the carrying amountafterdeduction ofthe provision forimpairmentand remaining usefullife.Where individualcomponentparts of an itemof fixed assethave differentusefullives orprovide benefits to the enterprise in differentmanners thus necessitating use ofdifferentdepreciation ratesormethods,thedepreciation ofthefixed assetisrespectively provided.

The Company adoptsa depreciation policy forthe fixed assetsleased in underfinancing leaseswhich isconsistentwith thatforits owned fixed assets.Ifthere is reasonable certainty thatthe lessee willobtainownership ofthe leased asset,the leased assetisdepreciated overitsusefullife;ifthere isno reasonablecertainty thatthe lessee willobtain ownership ofthe leased assetby the end ofthe lease term,the leasedassetisdepreciated overtheshorteroftheleasetermand itsusefullife.

Depreciation methods,periods,residualvaluerateand annualdepreciation ratesoffixesassetsareas

follows:

(3)Identification basis,pricing and depreciation methods offixed assets leased in under financingleases

Ifthe clausesofthe lease agreementmade and entered into by and between the Company and the lessorstipulate oneofthe following conditions,the relevantassetwillberecognized asthe assetleased in underfinancing lease:(1)theownership oftheleased assetbelongsto theCompany aftertheleasetermexpires;(2)the Company has the option to purchase the assetatthe price much lowerthan the fairvalue oftheassetatthe time ofexercise ofoption;(3)the lease termis forthe majorpartofthe usefullife oftheleased asset;(4)the presentvalue of the minimumlease paymentatthe inception of the lease is notsignificantly differentfromthe fairvalue ofthe asset;or(5)the leased assetis ofa specialized naturesuch thatonly the lessee can use themwithoutmajormodifications being made.Atthe inception ofthelease,the Company recordsthe leased assetatan amountequalto the lowerofthe fairvalue ofthe leasedassetand the presentvalue ofthe minimumlease payments,and recognizes a long-termpayable atanamountequalto the minimumlease payments.The difference between the recorded amountofthe leasedassetand therecorded amountofthepayableisaccounted forasunrecognized financecharge.

(4)Disposaloffixed assets

Afixed assetisderecognized when itisdisposed orwhen no futureeconomic benefitsareexpected to begenerated fromits use or disposal.When a fixed asset is sold,transferred,retired or damaged,theCompany recognizes the amountof any proceeds on disposalnetof the carrying amountand relatedtaxesand feein profitorlossforthecurrentperiod.

25.Construction in progress

Aconstruction in progress is measured at the actual cost incurred. Actual cost includesconstruction and installation fees, qualifying borrowing costs and other necessary expensesnecessarily incurred for bringing the asset to working condition for its intended use. Theconstruction in progress is transferred to fixed assets when meeting working conditions for itsintended useand theCompany beginsto makeprovision fromnextmonth.

26.Borrowing costs

1.Recognition ofcapitalization ofborrowing costs

Borrowing costsincurred by the Company thatare directly attributable to the acquisition,construction orproduction ofa qualifying assetare capitalized as partofthe costoftherelevant asset. The amounts of other borrowing costs incurred are recognized as an

expensein theperiod in which they areincurred.

Qualifying assets are assets (fixed assets, investment property, inventories, etc.)thatnecessarily take a substantialperiod oftime foracquisition,construction orproduction to

getready fortheirintended useorsale.

2.Capitalization period ofborrowing costs

Capitalization period is the period fromthe date of commencementof capitalization ofborrowing coststo the date ofcessation ofcapitalization,excluding any period overwhich

capitalization issuspended.

The capitalization of borrowing costs can commence only when all of the following

conditionsaresatisfied:

(1)expenditures for the asset are being incurred,and such expenditures include thoseexpenditures incurred for the acquisition, construction or production of the qualifyingassetthathave resulted in paymentsofcash,transferofnon-cash assets,orthe assumption

ofinterest-bearing liabilities;

(2)borrowing costsarebeing incurred;and

(3)activities relating to the acquisition,construction or production of the assetthatare

necessary to preparetheassetforitsintended useorsalehavecommenced.

When the qualifying assetbeing acquired,constructed orproduced hasbecome ready for

itsintended useorsale,thecapitalization ceases.

3.Period overwhich capitalization issuspended

Capitalization of borrowing costs is suspended during periods in which the acquisition,construction or production of a qualifying asset is interrupted abnormally, when theinterruption isfora continuousperiod ofmore than 3 months.However,capitalization ofborrowing costs continues when the interruption is a necessary part of the process ofpreparing thatassetforitsintended use orsale.The borrowing costsincurred during theseperiods of interruption are recognized as an expense for the current period, and thecapitalization of borrowing costs continues until the acquisition, construction or

production ofthatassetisresumed.

4.Calculation methodsofrateand amountofcapitalization ofborrowing costs

Where funds are borrowed under a specific-purpose borrowing for the acquisition,construction or production of a qualifying asset,the amount of borrowing costs to becapitalized is the actualborrowing costs incurred for the currentperiod less any bankinterestearned fromdepositing the borrowed fundsbefore being used on the assetorany

investmentincomeon thetemporary investmentofthosefunds.

Where funds are borrowed under general-purpose borrowings and are utilized for theacquisition,construction orproduction ofa qualifying asset,the Company determinestheamount of borrowing costs to be capitalized on such borrowings by multiplying acapitalization rate ofthe utilized general-purpose borrowings by the weighted average oftheexcessamountsofcumulativeexpenditureson theassetoverand abovetheamountsofspecific-purpose borrowings.The capitalization rate is the weighted average ofthe actual

interestratesapplicableto thegeneral-purposeborrowings.

During the capitalization period,exchange differencesrelated to the principaland intereston aspecific-purposeborrowing denominated in foreign currency arecapitalized aspartofthe costof the qualifying asset.The exchange differences arising fromforeign currencyborrowings and interestthereon other than specific-purpose borrowings denominated inforeign currency arerecognized in profitorlossforthecurrentperiod.

27.Biologicalassets

28.Oiland gasassets

29.Useofrightassets

30.Intangibleassets

(1)Pricing methods,usefullivesand impairmenttests

1.Pricing methodsofintangibleassets

(1)TheCompany initially measuresan intangibleassetatcostofacquisition;

The costof a separately acquired intangible assetcomprises its purchase price,relatedtaxesand any directly attributableexpenditureforpreparing theassetforitsintended use.

(2)Subsequentmeasurement

The Company analyzes and assesses the useful life of an intangible asset on its

acquisition.

Afinite-lived intangible asset is amortized during the period over which the assetgenerateseconomic benefitsforthe enterprise;an intangible assetisregarded ashaving anindefinite usefullife when there isno foreseeable limitto the period overwhich the asset

isexpected to generateeconomicbenefitsfortheenterprise,and isnotbeamortized.

2.Estimated usefullivesoffinite-lived intangibleassets

Item	Estimatedusefullife	Amortizationmethods	Residualvaluerate	Basis
Software	5-10	straight-line	None	Estimatedperiodofbenefit
Landuserights	50	straight-line	None	Certificateoflanduserights
Patentrights	10	straight-line	None	Rightterm
Nonpatented technology	10	straight-line	None	Estimatedperiodofbenefit

3.Basisfor judgementofan intangible assetwith indefiniteusefullifeand proceduresfor

reviewofusefullife

The Company reviewsthe usefullife ofthe indefinite intangible assetsatthe end ofeach

period.

Upon review,theusefullifeofintangibleassetsisstillindefinite.

(2)Accounting policiesforinternalresearch and developmentexpenditure

1.Specific criteria for an internalresearch and development project that are classified

into theresearch phaseand thedevelopmentphase

Expenditure on an internalresearch and developmentprojectisclassified into expenditure

on theresearch phaseand expenditureon thedevelopmentphase.

Research phase:isthe stage oforiginaland planned investigation and activity undertaken

with theprospectofgaining newscientificortechnicalknowledgeand understanding.

Developmentphase:isthestage oftheapplication ofresearch findingsorotherknowledgeto a plan ordesign forthe production ofneworsubstantially improved materials,devices

orproductsetc.beforethestartofcommercialproduction oruse.

2.Specificcriteria ofexpenditureon thedevelopmentphasequalifying forcapitalization

Expenditure on the research phase isrecognized in profitorlossforthe period in which itis incurred.Expenditure on the developmentphase is recognized as an intangible assetonly when the Company demonstrates allofthe following;otherwise,itis recognized in

profitorlossforthecurrentperiod:

(1)the technicalfeasibility ofcompleting the intangible assetso thatitwillbe available

foruseorsale;

(2)theintention to completetheintangibleassetand useorsellit;

(3)howthe intangible assetwill generate economic benefits.Among other things,theCompany can demonstrate the existence ofa marketforthe outputofthe intangible assetorthe intangible assetitselfor,ifitisto beused internally,theusefulnessoftheintangible

asset;

(4)the availability of adequate technical,financialand other resources to complete the

developmentand theability to useorselltheintangibleasset;and

(5)itsability to measure reliably the expenditure attributable to the intangible assetduring

itsdevelopmentphase.

If the Company fails to discriminate between expenditure on the research phase andexpenditure on the developmentphase,allexpenditures on research and developmentare

recognized in theprofitforthecurrentperiod.

31.Impairmentoflong-termassets

Whereany indication existsthatlong-termequity investments,investmentpropertiesmeasured atthe costmodel,fixed assets,construction in progress,intangible assetswith finite usefullife andother long-termassets may be impaired atthe balance sheetdate,the Company performs animpairmenttestthereon.The resultofthe impairmenttestshowsthatthe recoverable amountofan assetis lowerthan its carrying amount,the difference is made the provision forimpairmentand included in the impairmentloss.The recoverable amountofan assetisthe higherofitsfairvalue lesscoststo selland the presentvalue ofthe future cash flowsexpected to be derived fromthe asset.The provision forimpairmentofassets is calculated and recognized foran individualasset,and if itis notpossible to estimate the recoverable amountof the individualasset,theCompany determines the recoverable amountofthe assetgroup to which the assetbelongs.Anassetgroup isthesmallestidentifiablegroup ofassetsthatgeneratescash inflows.

Goodwill,indefinite-lived intangible assetsand intangible assetswhich do notmeetthe workingconditions forits use are tested forimpairmentatleastatthe end ofeach year,irrespective ofwhetherthereisany indication thattheassetmay beimpaired.

For the purpose of impairment testing of the Company, the carrying amount of goodwillgenerated in a businesscombination is,fromthe acquisition date,allocated on a reasonable basisto each ofthe related assetgroups.Ifitisnotpossible to allocate to the related assetgroups,itisallocated to each ofthe related sets ofassetgroups.Each ofthe related assetgroups orsets ofassetgroupsshallbean assetgroup orsetofassetgroup thatisableto benefitfromthe synergiesofthebusinesscombination.

In testing an asset group or a set of asset groups to which goodwill has been allocated forimpairment,there may be an indication thata related assetgroup orsetofassetgroups may beimpaired.In such circumstances,the Company firstly tests the assetgroup or the setof assetgroups excluding the amountof goodwillallocated for impairment,calculates its recoverableamount,comparesan impairmentloss recoverable amountwith the related carrying amountandrecognizesany impairmentloss.Then,the Company teststhe assetgroup ora setofassetgroupsto which goodwill has been allocated for impairment and compares its carrying amount andrecoverable amount.When the recoverable amountis less than its carrying amount,the amountofimpairmentlossfirstreducesthe carrying amountofany goodwillallocated to the assetgrouporsetofassetgroups,and then reducesthe carrying amountofotherassets(otherthan goodwill)within the assetgroup orsetofassetgroups,pro rata on the basisofthe carrying amountofeachasset.Once an impairmentloss on the assetabove is recognized,itwillnotbe reversed in asubsequentperiod.

32.Long-termprepaid expenses

Long-termprepaid expenses mean those which have been incurred butshould be amortized inthecurrentperiod and thesubsequentperiodsofmorethan oneyear.

Theamortization period and methodsofexpensesareshown asfollows:

Item	Amortizationmethods	Amortizationperiod
Decorationfees	straight-line	Periodofbenefit
Others	straight-line	Periodofbenefit

33.Contractliabilities

Accounting policiesadopted fromJanuary 1,2020

The Company presents the contract assets or liabilities in the balance sheet based on therelationship between performance obligations and customer payments.The Company presentsthe obligations to transfergoods orofferservices to customers as the consideration received orreceivable fromcustomers the contract liabilities.The Company lists the contract assets andliabilitiesunderthesamecontractasnetamount.

34.Employeebenefits

(1)Accounting treatmentofshort-termbenefits

The Company recognizes the short-termbenefits actually incurred during the accountingperiod when the employees serve the Company asliabilities,and include same aspartof

thecostofrelated assetsorin profitorlossforthecurrentperiod.

The employee benefits corresponding to payments of social security contributions andhousing fundsforemployees by the Company and the appropriation to laborunion fundsand employee education feesare determined on such provision basisand atsuch provisionrateasstipulated during theperiod when theemployeesprovideservicesfortheCompany.

The staffwelfare incurred by the Company is stated as the amountactually incurred and recorded intoprofitor loss or costof related assets in the period in which they are actually incurred;non-monetarybenefitsaremeasured atfairvalue.

(2)Accounting treatmentofpost-employmentbenefits

(1)Defined contribution plans

The Company pays basic endowment insurance and unemployment insurance foremployees pursuant to the relevant regulations of the local government. The amountspayable therefor,during the accounting period when the employees serve the Company,are calculated according to the payment base and proportion stipulated by the localregulations,which are recognized in profitor loss for the currentperiod or the costofrelated assets as liabilities.The Company pays a certain proportion ofthe totalwages ofan employee to the annuity plan/localsocialinsurance institution,and the correspondingexpensesarerecognized in profitorlossforthecurrentperiod orthecostofrelated assets.

(2)Defined benefitplans

The Company,according to the formula determined by the expected cumulative benefitunitmethod,attributes the benefitobligationsarising fromthe defined benefitplan to theservice period ofthe employees,and recognizes themin the profitorloss forthe current

period orthecostofrelated assets.

The deficitor surplus formed by the presentvalue of obligations in the defined benefitplan minus the fair value of assets therein is recognized as the net liabilities or netassets of the defined benefitplan.If the defined benefitplan has surplus,the Companymeasures the netassets ofthe defined benefitplan according to the lowerofthe surplus

and theupperlimitofassetsin thedefined benefitplan.

All obligations in the defined benefit plan, including obligations expected to be paidwithin 12 months afterthe end ofthe annualreporting period foremployee services,arediscounted based on the marketyield oftreasury bondsorhigh-quality corporate bondsinactive markets thatmatch the termand currency ofthe obligations in the defined benefit

plan on thebalancesheetdate.

The service cost generated by the defined benefit plan and the net interest of the netliabilities ornetassets ofthe defined benefitplan are recognized in the profitorloss forthecurrentperiod orthe costofrelated assets;changesarising fromthere-measurementofnetliabilitiesornetassetsofthe defined benefitplan are included in othercomprehensiveincomes,and are notbe converted back to profitorlossin subsequentaccounting periods.

At the end of the original defined benefit plan, the part originally included in othercomprehensive incomes isfully carried forward to unappropriated profitwithin the scope

ofequity.

In the settlementofthe defined benefitplan,the gain orloss ofsettlementis recognizedaccording to the difference between the presentvalue of the obligations in the defined

benefitplan and thesettlementpricedetermined on thesettlementdate.

(3)Accounting treatmentoftermination benefits

The Company recognizes the employment compensation liabilities generated bytermination benefits and records theminto the profitorloss forthe currentperiod on theearlier of: when the Company cannot unilaterally withdrawthe severance benefitsprovided asa resultofthe laborrelationship termination plan orlayoffproposal,orwhenit recognizes the costs or expenses related to the restructuring of the severance

benefitspayment,

(4)Accounting treatmentofotherlong-termemployeebenefits

35.Leaseliabilities

36.Provisions

The Company recognizes an obligation related to a contingency a provision when all of thefollowing conditionsaresatisfied:

(1)theobligation isapresentobligation oftheCompany;

(2)itis probable thatan outflowof economic benefits fromthe Company willbe required tosettletheobligation;and

(3)theamountoftheobligation can bemeasured reliably.

Provisions are initially measured atthe bestestimate of the expenditure required to settle therelated presentobligation.

Factorspertaining to a contingency such asthe risks,uncertaintiesand time value ofmoney aretaken into accountasa whole when the Company reachesthe bestestimate.Where the effectofthe time value ofmoney is material,the bestestimate is determined by discounting the relatedfuturecash outflows.

Where there isa continuousrange of[possible outcomesfor]the expenditure required,and eachpossible outcome in thatrange isaslikely asany other,the bestestimate isthe mid-pointofthatrange.Underany othercircumstances,thebestestimateisaccounted forasfollows:

•wherethecontingency involvesasingleitem,thebestestimateisthemostlikely outcome.

•where the contingency involvesa large population ofitems,the bestestimate isdetermined byweighting allpossibleoutcomesby theirassociated probabilities.

Where allorsome ofthe expenditure required to settle an estimated liability is expected to bereimbursed by a third party, the reimbursement is recognized as a separate asset when it isvirtually certain that reimbursement will be received. The amount recognized for thereimbursementdoesnotexceed thecarrying amountoftheestimated liability.

The Company reviewsthe carrying amountofa provision atthe balance sheetdate.Where thereisclearevidencethatthecarrying amountofaprovision doesnotreflectthecurrentbestestimate,thecarrying amountisadjusted to thecurrentbestestimate.

37.Share-based payment

Ashare-based paymentof the Company is a transaction in which the Company grants equityinstruments,or incurs liabilities for amounts thatare determined based on the price of equityinstruments, in return for services rendered by employees or other parties. Ashare-basedpayment of the Company is classified as either an equity-settled share-based payment or acash-settled share-based payment.

1.Equity-settled share-based paymentand equity instruments

An equity-settled share-based payment in exchange for services received fromtheemployeesismeasured atthe fairvalue ofequity instrumentsgranted to the employees.Ifthe right under the share-based payment vests immediately following the grant, theCompany,on grantdate,recognizes related costs orexpenses atan amountequalto thefairvalue oftheequity instruments,with a corresponding increasein capitalreserve.Iftherights under a share-based payment do not vest until the completion of services for avesting period,or until the achievement of a specified performance condition,at eachbalance sheetdate during the vesting period,the Company makesthe bestestimate ofthenumberofequity instrumentsexpected to vest,and based on this,recognizesthe servicesreceived in the currentperiod in the related costs orexpenses atan amountequalto the

fairvalueon thegrantdate,with acorresponding increasein capitalreserve.

Ifthe terms ofequity-settled share-based paymentare modified,the servicesreceived arerecognized atleastpursuantto the unmodified terms.In addition,any modifications thatincrease the fair value of the equity instruments, or changes that are beneficial to

employeeson themodification datearerecognized asan increasein services.

Ifthe granted equity instrumentiscancelled within the vesting period,the Company treatsthe cancellation ofequity instrumentgranted as the accelerated exercise,and the amountto be recognized during the remaining vesting period is immediately charged to profitorlossforthecurrentperiod,and thecapitalreserveisrecognized atthesametime.However,ifa newequity instrumentis granted,and on the grantdate thereof,is deemed to replacethe cancelled equity instrument,then the substitute equity instrumentgrantis accounted

forpursuantto thetermsand conditionsforaccounting fororiginalequity instrument.

2.Cash-settled share-based Paymentand equity instruments

Acash-settled share-based paymentismeasured atthe fairvalue ofthe liability incurred,being a liability which isdetermined based on the price ofthe Company’ssharesorotherequity instruments. If the right under the share-based payment vests immediatelyfollowing thegrant,theCompany,on grantdate,recognizesrelated costsorexpensesatanamountequalto the fairvalue ofthe liabilities assumed with a corresponding increase inliabilities.If the rights undera share-based paymentdo notvestuntilthe completion ofservices for a vesting period, or until the achievement of a specified performancecondition,ateach balance sheetdate during the vesting period,the Company makes thebestestimate of the number of equity instruments expected to vest,and based on this,recognizesthe servicesreceived in the currentperiod in the related costsorexpensesatanamountequalto the fair value of the liabilities assumed by the Company,and includesame in the liabilities accordingly.Untilthe liability is settled,the Company remeasuresthe fairvalue ofthe liability ateach balance sheetdate and atthe date ofsettlement,with

changesrecognized in profitorlossforthecurrentperiod.

38.Preferred shares,perpetualbondsand othersfinancialinstruments

39.Revenue

Theaccounting policiesadopted fortherecognition and measurementofrevenue

Accounting policiesadopted fromJanuary 1,2020

1.Theaccounting policiesadopted fortherecognition and measurementofrevenue

The revenue isrecognized atthe time when the Company hasdischarged the performanceobligations in the contract,thatis,when the customer obtains the controlof the relatedgoods orservices.Obtainmentofthe controlofthe related goods orservices means theability to directtheuseofsuch goodsand servicesand obtain substantially allofeconomic

benefitsfromthem.

If the contracthas two or multiple performance obligations,the Company allocates thetransaction priceto each individualperformanceobligation on theinception ofthecontractby reference to relative standalone selling prices ofgoods orservices promised thereby.

The Company measures revenue based on the transaction price allocated to each

individualperformanceobligation.

The transaction price is the amountof consideration to which the Company is entitledarising fromthe transfer of goods or services to the customer, excluding the amountcollected on behalf of a third party and expected to be returned to the customer.TheCompany determines the transaction price with reference to the contract terms and inconjunction with past customary practices, and in doing so, considers variableconsideration and significantfinancing components,non-cash consideration,considerationpayable to customers and other factors.The Company determines the transaction priceincluding variable consideration to the extentthat,itis highly probable thatits inclusionwillnotresultin a significantrevenue reversalofaccumulatively recognized revenue inthe future when the uncertainty has been subsequently resolved.If there is a significantfinancing componentin the contract,the Company determinesthe transaction price basedon the presumed amountpayable in cash when the customerobtains the controlofgoodsorservices,and amortizes the differences between the transaction price and the contract

consideration using theactualinterestmethod within thetermofthecontract.

When meeting one ofthe following criteria,itbelongs to the obligation performed over

time,otherwiseitconstitutestheobligation performed atapointin time:

•the customer obtains and consumes the economic benefits generated by theCompany’sperformancewhen theCompany performsthecontract.

•the customercan controlthe products in progress in the performance ofthe contractby theCompany.

•the products produced in the process of the Company’s performance haveirresplaceable uses,and the Company hasthe rightto collectpaymentforthe cumulative

performancethathasbeen completed up to datethroughoutthetermofthecontract.

Forthe obligation performed overtime,the Company recognizesthe revenue based on theperformance progress over time,unless the performance progress cannotbe reasonablydetermined.The Company determines the progress of performance obligation by takingthe nature ofgoodsorservicesand using the output/inputmethod.When the performanceprogress cannot be reasonably determined, and the costs incurred are expected to berecoverable,the Company recognizes revenue to the extent of costs incurred until theperformanceprogresscan bereasonably determined.

Fortheobligation performed atapointin time,theCompany recognizestherevenueatthepointin time when the customer obtains the controlof the related goods and services.

When judging whether the customer has obtained the control of goods,the Company

considersthefollowingssigns:

•the Company hasthe currentrightto receive paymentforsuch goodsorservices,thatis,thecustomerhasthecurrentobligation to makepaymentforsuch goodsorservices;

•the Company hastransferred the legalownership ofsuch goodsto the customer,thatis,thecustomerhasthelegalownership ofsuch goods;

•the Company has transferred such goods to the customer physically, that is, thecustomerhastaken possession ofsuch goodsphysically.

•the Company hastransferred majorrisksand rewardsofsuch goodsto the customer,thatis,thecustomerhasobtained majorrisksand rewardsofsuch goods;and

•thecustomerhasaccepted such goodsorservices.

2.Specificmethodsofrevenuerecognition

The Company organizesthe production according to the salescontractssigned with ortheorders placed by customers, and identifies the following models based on different

geographicallocationsofcustomersand inventory managementmethods:

(1)Generalsales

For domestic sales,the Company ships goods to the delivery location designated by acustomer,and recognizesrevenueafterthecustomerhassigned thereceiptoftheproducts;and forforeign sales,the goods are delivered according to specific trade terms,and the

revenueisrecognized atapointin timewhen thecontrolistransferred.

(2)Suppliermanagementinventory

Under this model, the Company ships the goods to the designated warehouse, thecustomerpicksup the goodsfromthe warehouse,and the revenue isrecognized ata point

in timewhen thecontrolistransferred.

Accounting policiesadopted priorto January 1,2020

1.Generalprinciplesofrecognition ofrevenuefromthesalesofgoods

(1)the Company has transferred to the buyer the significant risks and rewards of

ownership ofthegoods;

(2)the Company retainsneithercontinuing managerialinvolvementto the degree usually

associated with ownership noreffectivecontroloverthegoodssold;

(3)theamountoftherevenuecan bemeasured reliably;

(4)itisprobablethattheassociated economicbenefitswillflowto theCompany;and

(5)theassociated costsincurred orto beincurred can bemeasured reliably.

2.Specificprinciples

In addition to meeting the above criteria,the Company’s revenue fromsales ofgoods isrecognized when meeting the following conditions in respect of different methods of

delivery to customersand acceptancecheck:

(1)thegoodshavebeen delivered and passed theacceptancecheck ofthecustomer;and

(2)the Company and the customerhave checked the goodsbased on purchase order,and

thecustomeragreesto makepaymenttherefor.

Differencein theaccounting policy forrevenuerecognition arising fromadoption ofdifferentmodesofoperation forthesamekind ofbusiness

None

40.Governmentgrants

1.Category

Government grants are transfer of monetary assets or non-monetary assets fromthegovernmentto the Company atno consideration.Governmentgrants are classified into

governmentgrantsrelated to assetsand governmentgrantsrelated to income.

Governmentgrantsrelated to assetsaregovernmentgrantswhoseprimary condition isthatthe Company should purchase, construct or otherwise acquire long-termassets.

Governmentgrants related to income are governmentgrants other than those related to

assets.

The specific standard based on which the Company classifies a grantas a governmentgrantrelated to assets is that:the grantobtained by the Company is used to purchase,

constructorotherwiseacquirelong-termassets.

The specific standard based on which the Company classifies a grantas a governmentgrantrelated to income isthat:governmentgrantsrelated to income are governmentgrants

otherthan thoserelated to assets.

When classifying a grantwhose subsidy objectis notclearly specified in the governmentdocumentsasagovernmentgrantrelated to assetsoragovernmentgrantrelated to income,the Company judgeswhetherthe grantisused to purchase,constructorotherwise acquire

long-termassets.

2.Recognition time

When the Company actually receivesthe governmentgrant,a governmentgrantrelated toassetsofthe Company isrecognized,and since the long-termassetsare available foruse,the Company equally amortizesthe deferred income based on the estimated usefullife oflong-termassetsand then transferssameto theprofitorlossforthecurrentperiod.

When the Company actually receivesthe governmentgrant,a governmentgrantrelated toincome of the Company is recognized, and the Company recognizes it in thenon-operating income or other income over the periods in which the related costs arerecognized ifthe grantis a compensation forrelated expensesorlossesto be incurred bythe Company in subsequent periods, and directly recognizes it in the non-operatingincome orotherincome forthe currentperiod on acquisition ifthegrantisacompensation

forrelated expensesorlossesincurred by theCompany.

The governmentgrantisrecognized when the Company meetsthe conditionsattaching to

thegovernmentgrantand can receivethegovernmentgrant.

3.Accounting treatment

The government grants related to assets are offset against the carrying amount of therelated assets or recognized as deferred income. If a grant is recognized as deferredincome,itischarged to profitorlossforthe currentperiod in a reasonable and systematicmannerwithin the usefullife ofrelated assets (the grantrelated to the daily activities ofthe Company is recognized in otherincome,otherwise itis recognized in non-operating

income);

The governmentgrantrelated to income which is a compensation forrelated expensesorlossesto be incurred by the Company in subsequentperiodsisrecognized asthe deferredincome and charged to the profitorlossesoverthe period when related costsorlossesarerecognized (the grantrelated to the daily activitiesofthe Company isrecognized in otherincome,otherwise itisrecognized in non-operating income)oroffsetagainstrelated costsorlosses;and the governmentgrantrelated to income which isa compensation forrelatedexpenses or losses to be incurred by the Company in subsequent periods is directlyrecognized in profitorlossforthecurrentperiod (the grantrelated to thedaily activitiesofthe Company is recognized in otherincome,otherwise itis recognized in non-operating

income)oroffsetagainstrelated costsorlosses.

The policy-related preferential loan interest discounts obtained by the Company are

accounted forseparately according to thefollowing two circumstances:

(1)Ifthe finance departmentallocatesthe interestdiscountfundsto the lending bank,andthen thelending bank offersaloan to theCompany atthepolicy-based preferentialinterestrate,the Company recognizestheloan amountactually received astherecorded amountofthe loan,and calculates the borrowing costs according to the loan principal and such

policy-based preferentialinterestrate.

(2)Ifthe finance departmentdirectly allocatesthe interestdiscountfundsto the Company,the Company offsets the corresponding interest subsidy against the related borrowingcosts.

41.Deferred tax assets/deferred tax liabilities

Income tax include currentand deferred tax.Exceptfor the income tax arising frombusinesscombinations and transactions orevents recognized directly in owners’equity (including othercomprehensive income),the Company recognizes currenttax and deferred tax in profitorlossforthecurrentperiod.

The deferred tax assets and deferred tax liabilities are calculated and recognized based on thedifference (temporary difference)between the tax base ofassets and liabilities and the carryingamountofassetsand liabilities.

Adeferred income tax assetis recognized forthe deductible temporary difference to the extentthat it is probable that future taxable profits will be available against which the temporarydifference can be utilized Adeferred tax asset is recognized for the carryforward of unuseddeductible lossesand tax creditsto the extentthatitisprobable thatfuture taxable profitswillbeavailableagainstwhich thedeductiblelossesand tax creditscan beutilized.

Adeferred tax liability is recognized for taxable temporary difference, except for specialcircumstances.

Special circumstances under which the deferred tax assets or deferred tax liabilities are notrecognized forthetaxabletemporary differenceinclude:

•theinitialrecognition ofgoodwill.

•the transaction oreventthatis notbusiness combination,and atthe time ofthe occurrence,doesnotaffectaccounting profitortaxableprofit(ordeductibleloss).

Adeferred tax liability isrecognized forthe taxable temporary difference related to investmentsin subsidiaries,associatesand jointventures,unlessthe Company isable to controlthe timing ofthe reversalofthe temporary difference and itisprobable thatthe temporary difference willnotreverse in the foreseeable future.Adeferred tax assetis recognized for the taxable temporarydifference related to investments in subsidiaries, associates and joint ventures when thetemporary difference willreverse in the foreseeable future and taxable profitswillbe available inthefutureagainstwhich thetemporary differencecan beutilized.

Atthe balance sheetdate,deferred tax assetsand deferred tax liabilities are measured atthe taxratesthatare expected to apply to the period when the assetisrealized orthe liability issettled,according to therequirementsoftax laws.

The Company reviews the carrying amountofthe deferred tax assets atthe balance sheetdate.TheCompany reducesthecarrying amountofadeferred tax assetto theextentthatitisno longerprobable thatsufficienttaxable profits willbe available in future periodsto allowthe benefitofthedeferred tax assetto beutilized.Any such reduction in amountisreversed to theextentthatitbecomesprobablethatsufficienttaxableprofitswillbeavailable.

The currenttax assetsand currenttax liabilitiesare offsetand presented when the Company hasthe statutory rightto settle on a netbasis,intendsto settle on a netbasisorto obtain assetsandsettleliabilitiessimultaneously.

Atthe balance sheetdate,deferred tax assetsand deferred tax liabilitiesare offsetand presentedwhen both ofthefollowing conditionsaresatisfied:

•the taxpayerhasthe statutory rightto settle the currenttax assetsand currenttax liabilitieson anetbasis;and

•the deferred tax assetsand deferred tax liabilitiesare related to income taxeslevied by thesametax authority on the same taxpayer or differenttaxpayers,provided thatduring the period inwhich each material deferred tax asset and liability will be reversed, the taxpayer involvedintends to settle the currenttax assets and liabilities on a netbasis or obtain assets and settleliabilitiessimultaneously.

42.Leases

(1)Accounting treatmentofoperating leases

(1)Lease expenses paid by the Company for leasing in the assetis amortized using astraight-line method throughout the lease termincluding the rent-free period, andrecognized in expenses for the current period.The initial direct expenses paid by theCompany in connection with theleasetransaction isrecognized in expensesforthecurrent

period.

When the assetlessorbearsthe lease-related expensesto be assumed by the Company,theCompany deducts these expenses fromtotalrentand then amortizes such deducted rent

during theleaseterm,and recognized thesamein expensesforthecurrentperiod.

(2)Lease expensesreceived by the Company forleasing outthe assetisallocated using astraight-line method throughout the lease termincluding the rent-free period, andrecognized asthelease-related income.Theinitialdirectexpensespaid by theCompany inconnection with the lease transaction is recognized in expenses forthe currentperiod;ifsuch initialdirectexpensesareofalarge amount,theinitialdirectcostsarecapitalized andrecognized in profitor loss by installments on the same basis as the recognition of the

lease-related incomethroughouttheleaseterm.

When the Company bearsthe lease-related expensesto be assumed by the lessee,the Company deductstheseexpensesfromtotalrentand then allocatessuch deducted rentduring theleaseterm.

(2)Accounting treatmentoffinancing leases

(1)Assets leased in under financing leases Atthe inception of the lease,the Companyrecordstheleased assetatan amountequalto thelowerofthefairvalueoftheleased assetand the presentvalue oftheminimumleasepayments,and recognizesalong-termpayableatan amountequalto the minimumlease payments.The difference between the recordedamountof the leased assetand the recorded amountof the payable is accounted for asunrecognized finance charge. The Company amortizes unrecognized finance chargeduring the lease termusing the effective interestmethod,and recognizessame in financialexpenses.The initialdirectexpensesincurred by the Company is recognized in the value

ofleased-in asset.

(2)Assets leased outunderfinancing leases:Atthe inception ofthe lease,the Company recognizes thedifferencebetween the sumoffinanceleasereceivablesand unguaranteed residualvalue and theirpresentvalue as unearned finance income,and recognizes same as lease revenue in each period overwhich therentwillbe received.The initialdirectexpenses incurred by the Company in connection with the leasetransactions are recognized in the finance lease receivable initially measured and reduces the amountofincomerecognized during theleaseterm.

43.Othersignificantaccounting policiesand accounting estimates

44.Changesin significantaccounting policiesand accounting estimates

(1)Changesin significantaccounting policies

√Applicable□N/A

Changesinaccountingpoliciesand associatedreasons	Approvalprocedure	Note:
Receiptsinadvancerelatedtoperformance obligationsreclassifiedtocontract liabilities	Examinationandapprovalbytheboardofdirectors	ImplementtheAccountingStandardforBusinessEnterprisesNo.14—Revenue(revisedin2017)(“NewRevenueStandard”)

(1)Implement the Accounting Standard for Business Enterprises No. 14—Revenue

(revised in 2017)(“NewRevenueStandard”)

The Ministry ofFinance revised the Accounting Standard forBusinessEnterprisesNo.14—Revenue in 2017. In accordance with the revised standards, the cumulative effectsarising fromthe first implementation of newstandards is adjusted to the amount ofretained earningsand otherrelated itemsin the financialstatementsatthebeginning ofthe

currentperiod and theinformation forthecomparableperiod isnotadjusted.

(2)ImplementtheInterpretation No.13 oftheAccounting StandardsforBusiness

Enterprises

The Ministry ofFinance issued the Interpretation No.13 ofthe Accounting StandardsforBusinessEnterprises(CaiKuai[2019]No.21)(“Interpretation No.13”)on December10,2019,which shallbe implemented fromJanuary 1,2020 and do notrequire retrospective

adjustment.

The Interpretation No.13 improves three elements of business composition,refines thejudgmentconditions ofbusiness composition,introduces the“concentration test”option,which simplifies the judgment to a certain extent on whether the combination not

involving enterprisesundercommon controlobtained constitutesthebusiness.

The Company implemented the Interpretation No.13 fromJanuary 1,2020,and made noadjustment to the comparative financial statements. The implementation of theInterpretation No.13 hasnothad materialimpacton the Company’sfinancialposition and

operating results.

(3)Implement the InterimProvisions on the Accounting Treatment Regarding Carbon

EmissionsRightTrading

The Ministry of Finance issued the InterimProvisions on the Accounting TreatmentRegarding Carbon Emissions RightTrading (CaiKuai[2019]No.22)on December16,2019,which shallapply to the relevantenterprisesamong key emission enterprises(“keyemission enterprises”)thatconductcarbon emission trading business in accordance withtheInterimMeasuresfortheAdministration ofCarbon Emission PermitTrading and otherrelevantprovisions.These provisions were implemented fromJanuary 1,2020 and key

emission enterprisesshallapply theseprovisionsprospectively.

The Company implemented these Provisions fromJanuary 1, 2020, and made noadjustment to the comparative financial statements. The implementation of theseprovisionshasnothad materialimpacton the Company’sfinancialposition and operating

results.

(4)Implement the Provisions on the Accounting Treatment of the COVID-19Pandemic-related RentalConcessions

The Ministry of Finance issued the Provisions on the Accounting Treatment of theCOVID-19 Pandemic-related RentalConcessions (CaiKuai[2020]No.10),which shallbe implemented fromJune 19,2020 and allowenterprises to make adjustments to therelated rentalconcessionsincurred fromJanuary 1,2020 to the date ofimplementation ofthese provisions.In accordance with these provisions,if the rentreduction,exemption,deferred paymentand otherrentalconcessions,which,directly caused by the COVID-19pandemic,meet all of the following conditions,an enterprise may conduct accounting

treatmentby choosing to adoptthesimplified method.

The implementation of these provisions has nothad materialimpacton the Company’s

financialposition and operating results.

(2)Changesin significantaccounting estimates

□Applicable√N/A

(3)Description ofadjustments in opening balancesofline items in financialstatementsofthe yeardueto firstimplementation ofnewincomestandard and newleasestandard since2020

Applicable

Did thelineitemsoftheopening assetsand liabilitiesrequireadjustment?

□Yes√No

Thereason why thelineitemsoftheopening assetsand liabilitiesrequireno adjustment

The Company implemented newincome standard fromJanuary 1,2020.In accordancewith newstandards, the Company adjusts the amount of retained earnings and otherrelated itemsin the financialstatementsatthe beginning ofthe currentperiod only forthecumulative effects ofthe contracts uncompleted on the date offirstimplementation,andthe information forthe comparable period isnotadjusted.The main impactsarising fromimplementation ofthesestandardsaredescribed asfollows:

Changesinaccountingpoliciesandassociatedreasons	Approvalprocedure	Affecteditemsofthestatements	EffectsofthebalanceasatJanuary1,2020
Changesinaccountingpoliciesandassociatedreasons	Approvalprocedure	Affecteditemsofthestatements	Combination	Parentcompany
Receiptsinadvance relatedtoperformance obligationsreclassifiedto contractliabilities	Examinationandapprovalbytheboard ofdirectors	Receipts inadvance	-101,609,379.21	-19,692,593.36
		Contractliabilities	95,586,087.42	17,427,073.77
		Other currentliabilities	6,023,291.79	2,265,519.59

(4)Description of retrospective adjustments in comparative data in prior periods due to firstimplementation ofnewfinancialinstrumentstandardsand newleasestandard in 2020

□Applicable√N/A

45.Others

None

VI.Taxes

1.Majorcategoriesoftaxesand tax rates

Taxcategory	Taxationbasis	Taxrate
Value-addedtax(VAT)	VATpayableistheoutputtaxbasedonthesalesofgoodsandtaxablelaborincomecalculatedpursuanttothetaxlaw,netoftheinputtaxthatisallowedtobedeductedinthecurrentperiod	13%,9%,6%,5%,3%,0%
Urbanmaintenanceandconstructiontax	SubjecttotheactualpaymentofVATandconsumptiontax	7%,5%
Enterpriseincometax	Subjecttothetaxableincomeamount	25%,20%,19%,16.5%,15%,0%

Disclosureoftaxpayers(ifany)with differentratesofenterpriseincometax:

Taxpayer	Rateofenterpriseincometax
LuxsharePrecisionIndustryCo.,Ltd.	15
XiexunElectronic(Ji’an)Co.,Ltd.	15
ASAPTechnology(Jiangxi)Co.,Ltd.	15
LantoElectronicLimited	15
BozhouLantoElectronicLimited	15
HuzhouJiudingElectronicCo.,Ltd.	15
LuxshareAutomation(Jiangsu)Ltd.	15
MeiteTechnology(Suzhou)Co.,Ltd.	15
LuxshareElectronicTechnology(Kunshan)Co.,Ltd.	15
YongxinCountyBoshuoElectronicsCo.,Ltd.	15
LuxsharePrecisionIndustry(Chuzhou),Ltd.	15
MeilvElectronic(Huizhou)Co.,Ltd.	15
FujianJKWiringSystemsCo.,Ltd.	15
JiangxiLuxshareIntelligentManufactureCo.,Ltd.	15
JiangxiASAPElectronicCo.,Ltd.	15
Kunshan-LuxshareRFTechnologyCo.,Ltd.	15
SuiningLuxsharePrecisionIndustryCo.,Ltd.	15
LuxsharePrecisionIndustry(Baoding)Co.,Ltd.	15
LuxsharePrecisionIndustry(Shanxi)Co.,Ltd.	15
DonguanXuntaoElectronicCo.,Ltd.	15
KunshanLuxsharePrecisionIndustryCo.,Ltd.	15
LuxshareIntelligentManufacture(Zhejiang)Co.,Ltd.	15
ShenzhenLuxshareAcousticsTechnologyLtd.	15
LuxsharePrecisionLimited(HK)	Note1
LuxsharePrecisionTechnologyCo.,Ltd.	16.5
TaiwanLuxsharePrecisionLimited	20
ICTLANTOLIMITED(HK)	Note1
LuxshareStandardLimited(HK)	Note1
LuxshareTechnologiesLimited	Note1
Luxshare-ICT(Japan)	Note2
YundingTechnologyCo.,Ltd.	Note1
SpeedTechCorp.	20
Luxshare-ICT(India)	25
LuxshareLanto(India)Co.,Ltd.	25
LuxshareICT,Inc.	Note3
Luxshare-ICTIndustryEuropeLimited	19
SukkunststofftechnikGmbH	15
KoreaLuxshareICTCo.,Ltd	Note4
LUXSHARE-ICTINTERNATIONALB.V.	Note5
Luxshare-ICT(Vietnam)Limited	20
LuxsharePrecision(Yunzhong)Co.,Ltd.	20
LuxsharePrecision(Yi’an)Co.,Ltd.	20
Othersubsidiaries	25

2.Tax incentives

1.The Company was identified as a high-tech enterprise by Shenzhen Science and TechnologyInnovation Commission, Shenzhen Finance Committee, and Shenzhen Tax Service, StateTaxation Administration on November 9,2018,with the High-tech Enterprise Certificate No.GF201844203584 which isvalid forthree years.Asprovided forin the Notice by the Ministry ofFinance and the State Administration ofTaxation on PreferentialPoliciesforEnterprise IncomeTaxes Related to Enterprises’Technological Innovation and the Notice by the StateAdministration of Taxation on Issues Concerning the Implementation of Preferential IncomeTaxesforHigh-tech Enterprises,theCompany enjoysan enterpriseincometax of15%for2020.

2.The subsidiary,Xiexun Electronic (Ji’an)Co., Ltd. (“Ji’an Xiexun”), was identified as ahigh-tech enterprise by Science and Technology Department of Jiangxi Province, JiangxiProvincialFinance Bureau,and JiangxiProvincialTax Service,State Taxation Administration onSeptember14,2019,with the High-tech Enterprise Certificate No.GR202036001325 which isvalid forthreeyears.According to relevantprovisionsofthenationalhigh-tech enterpriseincometax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

3.The subsidiary,ASAPTechnology (Jiangxi)Co.,Ltd.(“ASAPJiangxi”),was identified as ahigh-tech enterprise by Science and Technology Department of Jiangxi Province, JiangxiProvincialFinance Bureau,and JiangxiProvincialTax Service,State Taxation Administration onSeptember16,2019,with the High-tech Enterprise Certificate No.GR201936000710 which isvalid forthreeyears.According to relevantprovisionsofthenationalhigh-tech enterpriseincometax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

4.The subsidiary,Lanto Electronic Limited (“Lanto Kunshan”),was identified as a high-techenterprise by the Jiangsu ProvincialDepartmentofScience and Technology,Jiangsu ProvincialDepartmentofFinance,Jiangsu ProvincialTax Service,State Taxation Administration and LocalTaxation Bureau of Jiangsu Province on December 2,2020 and obtained the Certificate No.GF2020320037377 which is valid forthree years.In accordance with relevantprovisions ofthenationalhigh-tech enterprise income tax preferentialpolicies in China,itenjoys an enterpriseincometax rateof15%for2020.

5.The sub-subsidiary,Bozhou Lanto Electronic Limited (“Bozhou Lanto”),was identified as ahigh-tech enterprise by Anhui Provincial Department of Science and Technology, AnhuiProvincial Department of Finance, and Anhui Provincial Tax Service, State TaxationAdministration on July 24,2018,and obtained the Certificate No.GR201834001191 which isvalid forthreeyears.According to relevantprovisionsofthenationalhigh-tech enterpriseincometax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

6.The sub-subsidiary,Huzhou Jiuding Electronic Co.,Ltd.(“Huzhou Jiuding”),wasidentified asa high-tech enterprise by the Zhejiang Provincial Department of Science and Technology,Zhejiang Provincial Department of Finance, Zhejiang Provincial Tax Service, State TaxationAdministration and Local Taxation Bureau of Zhejiang Province on December 1,2020, andobtained the High-tech Enterprise Certificate No.GR202033002604 which is valid for threeyears. According to relevant provisions of the national high-tech enterprise income taxpreferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

7.The subsidiary,LuxshareAutomation (Jiangsu)Ltd.(“Jiangsu Automation”),wasidentified asa high-tech enterprise by Jiangsu Provincial Department of Science and Technology,JiangsuProvincial Department of Finance, and Jiangsu Provincial Tax Service, State TaxationAdministration on November 30, 2018, with the High-tech Enterprise Certificate No.GR201832005137 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

8.The sub-subsidiary,Meite Technology (Suzhou)Co.,Ltd.(“Suzhou Meite”)wasidentified asa high-tech enterprise by Jiangsu Provincial Department of Science and Technology,JiangsuProvincialDepartmentofFinance,Jiangsu ProvincialTax Service,State Taxation Administrationand Local Taxation Bureau of Jiangsu Province on December 2, 2020, with the High-techEnterprise CertificateNo.GR202032005557 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

9.The subsidiary,Luxshare Electronic Technology (Kunshan)Co.,Ltd.(“Luxshare ElectronicKunshan”),wasidentified asa high-tech enterprise by Jiangsu ProvincialDepartmentofScienceand Technology,Jiangsu ProvincialDepartmentofFinance,and Jiangsu ProvincialTax Service,State Taxation Administration on November28,2018,with the High-tech Enterprise CertificateNo.GR201832003780,which is valid for three years.According to relevantprovisions of thenationalhigh-tech enterprise income tax preferentialpolicies in China,itenjoys an enterpriseincometax rateof15%for2020.

10.The sub-subsidiary,Yongxin County Boshuo ElectronicsCo.,Ltd.(“Yongxin Boshuo”),wasidentified as a high-tech enterprise by Science and Technology DepartmentofJiangxiProvince,JiangxiProvincialFinance Bureau,JiangxiProvincialTax Service,StateTaxation Administrationand Local Taxation Bureau of Jiangxi Province on December 2, 2020, with the High-techEnterprise CertificateNo.GR202036001897 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

11.The subsidiary,Luxshare Precision Industry (Chuzhou),Ltd.(“Luxshare Chuzhou”),wasidentified asa high-tech enterprise by AnhuiProvincialDepartmentofScience and Technology,Anhui Provincial Department of Finance, and Anhui Provincial Tax Service, State TaxationAdministration on September 9, 2019, with the High-tech Enterprise Certificate No.GR201934001733 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

12.The sub-subsidiary,Meilv Electronic (Huizhou)Co.,Ltd.(“Huizhou Meilv”),wasidentifiedas a high-tech enterprise by Departmentof Science and Technology of Guangdong Province,DepartmentofFinance ofGuangdong Province,and Guangdong ProvincialTax Service,StateTaxation Administrationin2018, withthe High-techEnterprise Certificate No.

GR201844010193 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrate of 15%for 2020.According to relevant provisions of the national high-tech enterpriseincome tax preferentialpolicies in China,itenjoys an enterprise income tax rate of 15%for2020.

13.The subsidiary,Fujian JKWiring Systems Co.,Ltd.(“Fujian JK”),was identified as ahigh-tech enterprise by the Fujian Provincial Department of Science and Technology,FujianProvincialDepartmentofFinance,Fujian ProvincialTax Service,State Taxation Administrationand Local Taxation Bureau of Fujian Province on December 1, 2020, with the High-techEnterprise CertificateNo.GR202035000014 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

14.The subsidiary,JiangxiLuxshare IntelligentManufacture Co.,Ltd.(“IntelligentManufactureJiangxi”),was identified as a high-tech enterprise by Jiangsu ProvincialDepartmentofScienceand Technology,Jiangsu ProvincialDepartmentofFinance,and Jiangsu ProvincialTax Service,State Taxation Administration on August13,2018,with the High-tech Enterprise Certificate No.GR201836000417 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

15. The sub-subsidiary, Jiangxi ASAPElectronic Co., Ltd. (“Boshuo Electronics”), wasidentified as a high-tech enterprise by Science and Technology DepartmentofJiangxiProvince,Jiangxi Provincial Finance Bureau, and Jiangxi Provincial Tax Service, State TaxationAdministration on December 4, 2018, with the High-tech Enterprise Certificate No.GR201836001774 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

16. The sub-subsidiary, Kunshan-Luxshare RFTechnology Co., Ltd. (“Kunshan RF”), wasidentified asa high-tech enterprise by Jiangsu ProvincialDepartmentofScience and Technology,Jiangsu ProvincialDepartmentof Finance,and Jiangsu ProvincialTax Service,State TaxationAdministration on November 28, 2018, with the High-tech Enterprise Certificate No.GR201832003391 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

17.The sub-subsidiary,Suining Luxshare Precision Industry Co.,Ltd.(“Suining Luxshare”)wasidentified as a high-tech enterprise by Science &Technology DepartmentofSichuan Province,Sichuan Provincial Finance Department, and Sichuan Provincial Tax Service, State TaxationAdministration on December 3, 2018, with the High-tech Enterprise Certificate No.GR201851001013 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

18.The sub-subsidiary,Luxshare Precision Industry (Baoding)Co.,Ltd.(“Baoding Luxshare”),was identified as a high-tech enterprise by Hebei Provincial Department of Science andTechnology,HebeiProvincialFinance Bureau,and HebeiProvincialTax Service,State TaxationAdministration on September 10, 2019, with the High-tech Enterprise Certificate No.GR201913000851 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

19.The sub-subsidiary,Luxshare Precision Industry (Shanxi)Co.,Ltd.(“ShanxiLuxshare”),wasidentified as a high-tech enterprise by Shanxi Science and Technology Department, ShanxiProvincial Department of Finance, and Shanxi Provincial Tax Service, State TaxationAdministration on September 16, 2019, with the High-tech Enterprise Certificate No.GR201914000049 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

20. The sub-subsidiary, Donguan Xuntao Electronic Co., Ltd. (“Donguan Xuntao”), wasidentified asa high-tech enterprise by the DepartmentofScience and Technology ofGuangdongProvince, Department of Finance of Guangdong Province, and Guangdong Provincial TaxService, State Taxation Administration on December 2, 2019, with the Certificate No.GR201944005411 which isvalid forthree years.According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterprise income taxrateof15%for2020.

21.The subsidiary,Kunshan Luxshare Precision Industry Co.,Ltd.(“Kunshan Luxshare”),wasidentified asa high-tech enterprise by Jiangsu ProvincialDepartmentofScience and Technology,Jiangsu ProvincialDepartmentof Finance,and Jiangsu ProvincialTax Service,State TaxationAdministration on December 2, 2020, with the High-tech Enterprise Certificate No.GR202032002892, which is valid for three years. According to relevant provisions of thenationalhigh-tech enterprise income tax preferentialpolicies in China,itenjoys an enterpriseincometax rateof15%for2020.

22.The subsidiary,Luxshare IntelligentManufacture (Zhejiang)Co.,Ltd.(“Zhejiang IntelligentManufacture”),was identified as a high-tech enterprise by Zhejiang ProvincialDepartmentofScience and Technology,Zhejiang ProvincialDepartmentof Finance,and Zhejiang ProvincialTax Service,State Taxation Administration on December1,2020,with the High-tech EnterpriseCertificate No. GR202033001987, which is valid for three years. According to relevantprovisionsofthe nationalhigh-tech enterprise income tax preferentialpoliciesin China,itenjoysan enterpriseincometax rateof15%for2020.

23.The subsidiary,Shenzhen Luxshare AcousticsTechnology Ltd.(“Luxshare Acoustics”),wasidentified asa high-tech enterprise by Jiangsu ProvincialDepartmentofScience and Technology,Jiangsu ProvincialDepartmentof Finance,and Jiangsu ProvincialTax Service,State TaxationAdministration on December 11, 2020, with the High-tech Enterprise Certificate No.

GR202044204060, which is valid for three years. According to relevant provisions of thenationalhigh-tech enterprise income tax preferentialpolicies in China,itenjoys an enterpriseincometax rateof15%for2020.

3.Others

Note 1.Asperthe tax lawin Hong Kong,Hong Kong adoptsa territorialsource principle oftaxation,underwhich only profits which have a source in Hong Kong are taxable there,while profitssourcedelsewhere are notsubjectto Hong Kong gain tax.Luxshare TechnologiesLimited,Luxshare StandardLimited (HK), ICTLANTOLIMITED(HK), Luxshare Precision Limited (HK)and YundingTechnology Co.,Ltd.arenotsubjectto Hong Kong gain tax.

Note 2.Luxshare-ICT(Japan)isentitled to the graded tax rate forthe capitalamounting to notmorethan JPY100 million.Corporate income tax (nationaltax):at15%forthe portion oftaxable incomewithin JPY8 million (inclusive),and at 23.2%for the portion in excess thereof. Local corporateincometax (nationaltax):at10.3%oftotalcorporatetaxableincome(nationaltax).

Note3.Theapplicabletax rateofLuxshareICT,Incisshown asfollows:

	Applicabletaxrate
Incometax(federal)	21%
Localtax(state)	8.84%

Note4.Theapplicabletax rateofKoreaLuxshareICTCo.,Ltd isshown asfollows:

Totalprofits	Corporatetax	Localtax
LessthanKRW200million	10%	10%ofcorporatetaxableincome
KWR200million~KWR20billion	20%
KWR20billion~KWR300billion	22%
AboveKWR300billion	25%

Note5.LUXSHARE-ICTINTERNATIONALB.V.isincorporated in theNetherlands,to whomtheapplicabletax rateis16.5%fortheportion ofincomewithin EUR200,000 and 25%fortheportion inexcessthereof.

VII.Notesto Itemsin Consolidated FinancialStatements

1.Cash and bank balances

In RMB

Item	ClosingBalance	OpeningBalance
Cashonhand	9,919,560.76	594,825.70
Bankdeposit	10,454,884,890.58	6,146,745,098.56
Othercashandbankbalances	63,441,314.59	33,126,334.75
Total	10,528,245,765.93	6,180,466,259.01
Including:Totalamountoffunds depositedabroad	3,867,118,934.25	2,593,531,992.70
Totalamountoffundswhichare restrictedinusebymortgage,pledgeor freezing,etc.	63,441,314.59	33,126,334.75

Otherdescriptions

Bank depositsincludeinterestincurred fromfixed-termdepositsamounting to RMB11,810,808.21

Thebreakdown ofcash and bank balanceswhich arerestricted in useby mortgage,pledgeorfreezing,etc.,and which aredeposited abroad with restricted repatriation areasfollows:

Item	ClosingBalance	ClosingBalanceofPreviousYear
Securitydepositofbankacceptancebills	10,678,394.18	3,078,831.30
Creditdeposits	13,933,745.95	13,254,298.15
Performancedeposit	21,291,516.86
TermdepositorCallDepositusedfor guarantee	17,537,657.60	16,793,205.30
Total	63,441,314.59	33,126,334.75

2.Held-for-trading financialassets

In RMB

Item	ClosingBalance	OpeningBalance
Financialassetsatfairvaluethroughprofit orloss	3,160,064,470.41	1,524,366,132.75
Including:
Derivativefinancialassets	305,388,419.95	16,591,708.18
Bankwealthmanagement	2,854,676,050.46	1,507,774,424.57
Including:
Total	3,160,064,470.41	1,524,366,132.75

Otherdescriptions:

3.Derivativefinancialassets

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions:

4.Notesreceivable

(1)Categorized presentation ofnotesreceivable

In RMB

Item	ClosingBalance	OpeningBalance
Bankacceptancebill	251,899,317.40	47,511,878.70
Commercialacceptancebill	9,309,284.10	19,362,048.27
Total	261,208,601.50	66,873,926.97

In RMB

Category	ClosingBalance					OpeningBalance
	Bookbalance		Bad-debtprovision		Bookvalue	Bookbalance		Bad-debtprovision		Bookvalue
	Amount	Proportion	Amount	Provisionproportion	Bookvalue	Amount	Proportion	Amount	Provisionproportion	Bookvalue
Including:
Including:

Provision forbad debtsmadeindividually:

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision

Provision forbad debtsmadeby group:

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion

Descriptionson thebasisfordetermination ofthegroup:

Ifthebad-debtprovision ofnotesreceivableismadeaccording to thegeneralmodelofexpected creditloss,pleasedisclosetherelevantinformation ofbad-debtprovision with referenceto thedisclosuremethod ofotherreceivables:

Applicable√N/A

(2)Bad-debtprovision made,recovered orreversed in thecurrentperiod

Bad-debtprovision madein thecurrentperiod:

In RMB

Category	OpeningBalance	Amountofchangeinthecurrentperiod				ClosingBalance
Category	OpeningBalance	Provision	Recoverorreversal	Writeoff	Other	ClosingBalance

Including significantamountsrecovered orreversed fromthecurrentprovision forbad debts:

Applicable√N/A

(3)Notesreceivablepledged by theCompany attheend oftheperiod

In RMB

Item	Pledgedamountattheendoftheperiod
Bankacceptancebill	22,490,383.01
Total	22,490,383.01

(4)Notes receivable that have been endorsed or discounted by the Company at the end of theperiod and havenotyetmatured on thebalancesheetdate

In RMB

Item	Derecognizedamountattheendoftheperiod	Amountnotderecognizedattheendoftheperiod
Bankacceptancebill	2,091,917,564.86
Total	2,091,917,564.86

(5)Noteswhich the Company transfersinto accountsreceivable atthe end ofthe period because ofdrawers’non-performance

In RMB

Item	Amounttransferredtoaccountsreceivableattheendoftheperiod

Otherdescriptions

(6)Notesreceivableactually written offin thecurrentperiod

In RMB

Item	Write-offamount

Including thewrite-offofsignificantnotesreceivable:

In RMB

Entityname	Natureofnotesreceivable	Write-offamount	Reasonsforwriteoff	Proceduresforwriteoff	Whetherthefundsaregeneratedbyrelated-party
					transactions

Instructionson thewrite-offofnotesreceivable:

5.Accountsreceivable

(1)Categorized disclosureofaccountsreceivable

In RMB

Category	ClosingBalance					OpeningBalance
	Bookbalance		Bad-debtprovision		Bookvalue	Bookbalance		Bad-debtprovision		Bookvalue
	Amount	Proportion	Amount	Provisionproportion	Bookvalue	Amount	Proportion	Amount	Provisionproportion	Bookvalue
Accountsreceivablefor whichbad-debtprovisionis madeindividually	37,656,321.38	0.27%	37,527,221.68	99.66%	129,099.70	38,880,180.69	0.29%	38,617,539.76	99.32%	262,640.93
Including:
Accountsreceivablefor whichbad-debtprovisionis madebygroup	13,862,652,924.95	99.73%	23,626,684.18	0.17%	13,839,026,240.77	13,268,942,471.16	99.71%	25,579,539.87	0.19%	13,243,362,931.29
Including:
Groupbyaging	13,862,652,924.95	99.73%	23,626,684.18	0.17%	13,839,026,240.77	13,268,942,471.16	99.71%	25,579,539.87	0.19%	13,243,362,931.29
Total	13,900,309,246.33	100.00%	61,153,905.86		13,839,155,340.47	13,307,822,651.85	100.00%	64,197,079.63		13,243,625,572.22

Provision forbad debtsmadeindividually:RMB37,527,221.68

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision
Entity1	30,988,680.56	30,988,680.56	100.00%	Unrecoverable
Entity2	3,884,072.10	3,884,072.10	100.00%	Unrecoverable
Entity3	2,542,165.36	2,413,065.66	94.92%	Unrecoverable
Entity4	241,403.36	241,403.36	100.00%	Unrecoverable
Total	37,656,321.38	37,527,221.68	--	--

Provision forbad debtsmadeindividually:

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision

Provision forbad debtsmadeby group:RMB23,626,684.18

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion
Undue	13,718,412,121.82	6,878,063.42	0.05%
1to60daysoverdue	120,007,255.07	6,000,362.74	5.00%
61to120daysoverdue	9,261,165.60	2,778,349.68	30.00%
121to180daysoverdue	7,927,945.22	3,171,178.08	40.00%
181to365daysoverdue	4,484,906.74	2,242,453.37	50.00%
1(excluding1)to2years overdue	32,538.23	29,284.62	90.00%
Morethan2yearsoverdue	2,526,992.27	2,526,992.27	100.00%
Total	13,862,652,924.95	23,626,684.18	--

Description on thebasisfordetermination ofthegroup:

Provision forbad debtsmadeby group:

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion

Description on thebasisfordetermination ofthegroup:

Ifthebad-debtprovision ofaccountsreceivableismadeaccording to thegeneralmodelofexpected creditloss,pleasereferto thedisclosuremethod ofotherreceivablesto disclosetherelevantinformation ofbad debtprovision:

√Applicable□N/A

Disclosureby aging

In RMB

Aging	Bookbalance
Within1year(including1year)	13,861,439,232.22
Undue	13,718,412,121.83
1to60daysoverdue	120,007,255.07
61to120daysoverdue	9,261,165.60
121to180daysoverdue	8,449,126.92
181to365daysoverdue	5,309,562.80
1to2years	4,379,393.94
2to3years	34,490,620.17
Total	13,900,309,246.33

Total13,900,309,246.33

(2)Bad-debtprovision made,recovered orreversed in thecurrentperiod

Bad-debtprovision in thecurrentperiod:

In RMB

Category	OpeningBalance	Amountofchangeinthecurrentperiod				ClosingBalance
Category	OpeningBalance	Provision	Recoverorreversal	Writeoff	Other	ClosingBalance
Accounts receivable	64,197,079.63	7,737,455.44		8,486,030.92	-2,294,598.29	61,153,905.86
Total	64,197,079.63	7,737,455.44		8,486,030.92	-2,294,598.29	61,153,905.86

Including significantamountsrecovered orreversed fromthecurrentprovision forbad debts:

In RMB

Entityname	Amountrecoveredorreversed	Recoverymethod

(3)Accountsreceivableactually written offin thecurrentperiod

In RMB

Item	Write-offamount
Accountsreceivableactuallywrittenoff	8,486,030.92

Including thewrite-offofsignificantaccountsreceivable:

In RMB

Entityname	Natureofaccountsreceivable	Write-offamount	Reasonsforwriteoff	Proceduresforwriteoff	Whetherthefundsaregeneratedbyrelated-partytransactions

Whetherthefunds

Entity nameNatureofaccountsreceivable

Write-offamountReasonsforwriteoff

Proceduresforwriteoff

aregenerated by

related-party

transactions

Description on thewrite-offofaccountsreceivable:

(4)Accountsreceivablewith top fiveclosing balance-by debtor

In RMB

Entityname	Closingbalanceofaccountsreceivable	Proportionintotalclosingbalanceofaccountsreceivable	Closingbalanceofbad-debtprovision
Entity1	3,835,859,879.62	27.60%	1,917,929.94
Entity2	1,993,686,757.88	14.34%	996,843.38
Entity3	959,284,250.83	6.90%	479,642.13
Entity4	610,371,562.51	4.39%	305,185.78
Entity5	542,396,461.86	3.90%	271,198.23
Total	7,941,598,912.70	57.13%

(5)Accountsreceivablederecognized dueto transferoffinancialassets

Item	Amountofderecognition	Waysoffinancialassetstransfer	Gainsorlossesrelatedtoderecognition
Entity1	7,430,587,022.91	Sale	-31,529,890.44
Total	7,430,587,022.91		-31,529,890.44

In 2020, the Company sold the accounts receivable of specific customers to banks and financialinstitutions.As ofDecember31,2020,the accounts receivable derecognized forthe specific customersamountto RMB7,430,587,022.91.

(6)Amount of assets and liabilities formed by transferring accounts receivable and continuinginvolvement

Otherdescriptions:

6.Receivablesfinancing

In RMB

Item	ClosingBalance	OpeningBalance

Increaseand decreaseaswellasfairvaluechangesofreceivablesfinancing in thecurrentperiod

□Applicable√N/A

Iftheprovision forimpairmentofreceivablesfinancing ismadeaccording to thegeneralmodelofexpected creditloss,pleasereferto thedisclosuremethod ofotherreceivablesto disclosetherelevantinformation ofimpairmentprovision:

□Applicable√N/A

Otherdescriptions:

7.Prepayments

(1)Presentation ofprepaymentsby aging

In RMB

Aging	ClosingBalance		OpeningBalance
Aging	Amount	Proportion	Amount	Proportion
Within1year	182,183,707.73	99.07%	210,286,780.20	99.19%
1to2years	1,264,401.36	0.69%	1,133,221.56	0.53%
2to3years	172,178.32	0.09%	191,954.70	0.09%
Over3years	266,650.29	0.15%	406,655.45	0.19%
Total	183,886,937.70	--	212,018,611.91	--

Reasonsforuntimely settlementofprepaymentsin significantamountwith aging over1 year:

(2)Prepaymentswith top fiveclosing balance-by prepaymentbeneficiary

Prepaymentreceiver	ClosingBalance	Proportionintotalclosingbalanceofprepayments(%)
Entity1	45,755,861.25	24.88
Entity2	30,460,372.91	16.56
Entity3	10,155,255.63	5.52
Entity4	8,679,875.60	4.72
Entity5	5,161,011.87	2.81
Total	100,212,377.26	54.49

Otherdescriptions:

8.Otherreceivables

In RMB

Item	ClosingBalance	OpeningBalance
Otherreceivables	407,990,780.79	338,237,923.96
Total	407,990,780.79	338,237,923.96

(1)Interestreceivable

1)Classification ofinterestreceivable

In RMB

Item	ClosingBalance	OpeningBalance

2)Significantoverdueinterest

In RMB

Borrower	Closingbalance	Overduetime	Reasonsfordelay	Whetherthereisimpairmentanditsjudgmentbasis

Otherdescriptions:

3）Bad-debtprovision

□Applicable√N/A

(2)Dividendsreceivable

1)Classification ofdividendsreceivable

In RMB

Item(orInvestee)	ClosingBalance	OpeningBalance

2)Significantdividendsreceivablewith aging over1 year

In RMB

Item(orInvestee)	ClosingBalance	Aging	Reasonsfornon-recovery	Whetherthereisimpairmentanditsjudgmentbasis

3)Bad-debtprovision

□Applicable√N/A

Otherdescriptions:

(3)Otherreceivables

1)Classification ofotherreceivablesby nature

In RMB

Natureofreceivables	Closingbookbalance	Openingbookbalance
Reservefund	2,150,958.86	9,489,186.52
Securitydeposit	82,843,142.41	39,474,865.66
Importtaxrebatereceivable	52,519,780.76	25,871,375.64
Disbursement	61,811,236.98	2,156,089.51
Transferfundsoffixedassets	15,068,375.17	66,256,604.46
Other	195,784,468.71	196,384,767.00
Total	410,177,962.89	339,632,888.79

2)Bad-debtprovision

In RMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(withcreditimpaired)	LifetimeECL(withcreditunimpaired)	Total
BalanceasatJanuary1, 2020	1,394,964.83			1,394,964.83
BalanceasatJanuary1,	——	——	——	——
2020inthecurrent period
Provision	852,545.23			852,545.23
Write-off	68,961.70			68,961.70
Otherchanges	8,633.74			8,633.74
BalanceasatDecember 31,2020	2,187,182.10			2,187,182.10

Changesin thebook balanceoftheprovision forlosswith significantamountofchangesin thecurrentperiod

□Applicable√N/A

Disclosureby aging

In RMB

Aging	Bookbalance
Within1year(including1year)	409,648,448.73
Undue	407,198,678.37
1to60daysoverdue	1,661,132.43
61to120daysoverdue	495,439.79
121to180daysoverdue	5,305.30
181to365daysoverdue	287,892.84
1to2years	529,514.16
Total	410,177,962.89

3)Bad-debtprovision made,recovered orreversed in thecurrentperiod

Bad-debtprovision madein thecurrentperiod:

In RMB

Category	Openingbalance	Amountofchangeinthecurrentperiod				Closingbalance
Category	Openingbalance	Provision	Recoverorreversal	Writeoff	Other	Closingbalance
Groupbyaging	1,394,964.83	852,545.23		68,961.70	8,633.74	2,187,182.10
Total	1,394,964.83	852,545.23		68,961.70	8,633.74	2,187,182.10

Including significantamountsreversed orrecovered fromthecurrentprovision forbad debts:

In RMB

Entityname	Amountreversedorrecovered	Recoverymethod

4)Otherreceivablesactually written offin thecurrentperiod

In RMB

Item	Write-offamount

Including thewrite-offofsignificantotherreceivables:

In RMB

Entityname	Natureofotherreceivables	Write-offamount	Reasonsforwriteoff	Proceduresforwriteoff	Whetherthefundsaregeneratedbyrelated-partytransactions

Descriptionson thewrite-offofotherreceivables:

5)Otherreceivableswith top fiveclosing balance-by debtor

In RMB

Entityname	Natureofreceivables	Closingbalance	Aging	Proportionintotalclosingbalanceofotherreceivables	Closingbalanceofbad-debtprovision
Entity1	Equitytransferfunds	190,000,000.00	Undue	46.32%	950,000.00
Entity2	Exporttaxrebate	52,519,780.76	Undue	12.80%	262,598.90
Entity3	Securitydeposit	17,447,194.83	Undue	4.25%	87,235.97
Entity4	Securitydeposit	13,704,698.01	Undue	3.34%	68,523.49
Entity5	Transferfundsoffixedassets	12,189,828.69	Undue	2.97%	60,949.14
Total	--	285,861,502.29	--	69.68%	1,429,307.50

6)Receivablesinvolving governmentgrants

In RMB

Entityname	Nameofgovernmentgrant	Closingbalance	Agingattheendoftheperiod	Estimatedtime,amountandbasisofcollection

Estimated time,amount

and basisofcollection

7)Otherreceivablesderecognized dueto transferoffinancialassets

8)Amount of assets and liabilities formed by transferring other receivables and continuinginvolvement

Otherdescriptions:

9.Inventories

WheretheCompany need to comply with thedisclosurerequirementsfortherealestateindustry

(1)Classification ofinventories

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecost	Bookvalue	Bookbalance	Provisionfordeclineinvalueofinventoriesorprovisionforimpairmentofcontractperformancecost	Bookvalue
Rawmaterial	3,139,313,968.65	30,816,233.39	3,108,497,735.26	2,394,527,722.87	20,450,891.52	2,374,076,831.35
Productsin process	2,047,580,192.49	31,348,190.65	2,016,232,001.84	1,329,809,441.89	5,410,657.68	1,324,398,784.21
Goodsonhand	8,023,281,968.11	67,217,791.93	7,956,064,176.18	3,843,140,662.09	61,496,691.86	3,781,643,970.23
Revolving materials	57,309,755.00	2,374.56	57,307,380.44	49,272,045.90	15,000.03	49,257,045.87
Goodssold	29,388,057.62	160,985.17	29,227,072.45	154,254,852.98	2,690,065.64	151,564,787.34
Materialsin transit	42,757,516.88	0.00	42,757,516.88	1,567,293.31	0.00	1,567,293.31
Workinprocess- outsourced	923,498.10	0.00	923,498.10	18,349,175.85	0.00	18,349,175.85
Total	13,340,554,956.85	129,545,575.70	13,211,009,381.15	7,790,921,194.89	90,063,306.73	7,700,857,888.16

(2)Provision for decline in value of inventories and provision for impairment of contractperformancecost

In RMB

Item	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
Item	OpeningBalance	Provision	Other	Reversalorwriteoff	Other	ClosingBalance
Rawmaterial	20,450,891.52	13,458,112.74	0.00	3,020,592.33	72,178.54	30,816,233.39
Productsin process	5,410,657.68	25,569,567.59	0.00	38,763.03	-406,728.41	31,348,190.65
Goodsonhand	61,496,691.86	23,877,877.36	-143,411.45	17,145,550.61	867,815.23	67,217,791.93
Revolving materials	15,000.03	-12,625.47	0.00	0.00	0.00	2,374.56
Goodssold	2,690,065.64	-2,529,080.47	0.00	0.00	0.00	160,985.17
Total	90,063,306.73	60,363,851.75	-143,411.45	20,204,905.97	533,265.36	129,545,575.70

Total90,063,306.7360,363,851.75-143,411.4520,204,905.97533,265.36129,545,575.70

(3)Descriptionson closing balanceofinventoriescontaining capitalized amountofborrowing costs

(4)Descriptionson currentamortization amountofcontractperformancecosts

10.Contractassets

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue

Theamountofand reasonsforsignificantchangesin thebook valueofcontractassetsin thecurrentperiod:

In RMB

Item	Changeamount	Reasonforchange

Ifthebad-debtprovision ofcontractassetsismadeaccording to thegeneralmodelofexpected creditloss,pleaserefertothedisclosuremethod ofotherreceivablesto disclosetherelevantinformation ofbad debtprovision:

Applicable√N/A

Provision forimpairmentofcontractassetsin thecurrentperiod

In RMB

Item	Provision	Reversal	Writeoff/cancellation	Reason

Otherdescriptions:

11.Held-for-saleassets

In RMB

Item	Closingbookbalance	Provisionforimpairment	Closingbookvalue	Fairvalue	Estimateddisposalcosts	Estimateddisposaltime

Otherdescriptions:

12.Currentportion ofnon-currentassets

In RMB

Item	ClosingBalance	OpeningBalance

Significantdebtinvestments/otherdebtinvestments

In RMB

Debtitem	ClosingBalance				OpeningBalance
Debtitem	Facevalue	Couponrate	Effectiveinterestrate	Maturedate	Facevalue	Couponrate	Effectiveinterestrate	Maturedate

Otherdescriptions:

13.Othercurrentassets

In RMB

Item	ClosingBalance	OpeningBalance
Inputtaxtobededucted	1,540,111,512.16	1,176,940,503.21
Incometaxprepaid	257,446,420.71	286,319,473.87
Other	6,927,712.62	21,191,174.65
Total	1,804,485,645.49	1,484,451,151.73

Otherdescriptions:

14.Debtinvestments

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue

Significantdebtinvestments

In RMB

Debtitem	ClosingBalance				OpeningBalance
Debtitem	Facevalue	Couponrate	Effectiveinterestrate	Maturedate	Facevalue	Couponrate	Effectiveinterestrate	Maturedate

Provision forimpairment

In RMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(withoutcreditimpaired)	LifetimeECL(withcreditunimpaired)	Total
BalanceasatJanuary1, 2020inthecurrent period	——	——	——	——

Changesin thebook balanceoftheprovision forlosswith significantamountofchangesin thecurrentperiod

□Applicable√N/A

Otherdescriptions:

15.Otherdebtinvestments

In RMB

Item	Openingbalance	Accruedinterest	Changesinfairvalueinthecurrentperiod	Closingbalance	Cost	Cumulativechangesinfairvalue	Cumulativeprovisionforlossrecognizedinothercomprehensiveincome	Remarks

Othersignificantdebtinvestments

In RMB

Otherdebtitem	ClosingBalance				OpeningBalance
Otherdebtitem	Facevalue	Couponrate	Effectiveinterestrate	Maturedate	Facevalue	Couponrate	Effectiveinterestrate	Maturedate

Provision forimpairment

In RMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(withcreditimpaired)	LifetimeECL(withcreditunimpaired)	Total
BalanceasatJanuary1, 2020inthecurrent period	——	——	——	——

Changesin thebook balanceoftheprovision forlosswith significantamountofchangesin thecurrentperiod

□Applicable√N/A

Otherdescriptions:

16.Long-termreceivables

(1)Long-termreceivables

In RMB

Item	ClosingBalance			OpeningBalance			Discountraterange
Item	Bookbalance	Bad-debtprovision	Bookvalue	Bookbalance	Bad-debtprovision	Bookvalue	Discountraterange

Impairmentofbad-debtprovision

In RMB

Bad-debtprovision	StageI	StageII	StageIII	Total
	12-monthECL	LifetimeECL(withcreditimpaired)	LifetimeECL(withcreditunimpaired)
BalanceasatJanuary1, 2020inthecurrent period	——	——	——	——

Changesin book balanceofprovision forlosswith significantchangesin thecurrentperiod

□Applicable√N/A

(2)Long-termreceivablesderecognized dueto transferoffinancialassets

(3)Amount of assets and liabilities formed by transferring long-termreceivables and continuinginvolvement

Otherdescriptions

17.Long-termequity investments

In RMB

Investee	Openingbalance(bookvalue)	Increaseanddecreaseinthecurrentperiod								Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment
Investee	Openingbalance(bookvalue)	Additionalinvestment	Reducedinvestment	Investmentprofitorlossrecognizedunderequitymethod	Othercomprehensiveincomeadjustment	Otherchangesinequity	Declaredcashdividendsorprofits	Provisionforimpairment	Other	Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment

I.Jointventure
RiyimaoIndustrialCo., Ltd.	77,160,654.68	18,394,906.69	-374,657.21	-8,758,307.43	-185,657.72	86,236,939.01
XuandeEnergyCo.,Ltd.	454,220.23	-453,732.03			-488.20
Subtotal	77,614,874.91	17,941,174.66	-374,657.21	-8,758,307.43	-186,145.92	86,236,939.01

II.Associates
SILICONCH SYSTEMSPRIVATE LIMITED	25,502,902.88		-2,839,396.33					22,663,506.55
ZhuhaiKinwong FlexibleCircuitCo., Ltd.	234,305,410.77		3,291,894.45					237,597,305.22	34,372,608.46
CaldigitHolding Limited		55,510,273.80	5,295,883.15	-679,239.68			-892,336.71	59,234,580.56
AssemTechnologyCo., Ltd.		55,251,818.12	-1,405,798.82	-18,304.30	26,148.20		-57,944.76	53,795,918.44
TaihanPrecisionCo., Ltd.		97,442,171.83					-104,844.17	97,337,327.66
ChangshuLizhen SmartTechnology Partnership(Limited Partnership)		600,000,000.00						600,000,000.00
VietnamMeilvLuxshare Co.,Ltd.		83,531,280.00	2,516,084.31					86,047,364.31
Subtotal	259,808,313.65	891,735,543.75	6,858,666.76	-697,543.98	26,148.20		-1,055,125.64	1,156,676,002.74	34,372,608.46
Total	337,423,188.56	891,735,543.75	24,799,841.41	-1,072,201.19	26,148.20	-8,758,307.43	-1,241,271.56	1,242,912,941.75	34,372,608.46

Otherdescriptions

Changshu Lizhen Smart Technology Partnership (Limited Partnership)was jointly established by theCompany and its subsidiaries, Changshu Luxshare Industrial Investment Management Co.,Ltd., andChangshu Luxshare Corporate Management Services Partnership (Limited Partnership), in which theCompany and Changshu Luxshare Corporate ManagementServicesPartnership (Limited Partnership)arelimited partners, contributing RMB570 million and RMB5.4 billion respectively; the Company’ssubsidiary isa generalpartner,contributing RMB30 million.According to the partnership agreement,thepurpose of the partnership is to invest in and acquire targets in the field of systemassembly, caseassembly, and consumer electronics, or other projects in Changshu; in respect of partnership affairpractice,the managing partnershallbe responsible forday-to-day affairsofthe partnership,and have therightto conclude contractsand otheragreements and commitments on behalfofthe partnership in orderto achieve the partnership purpose.Forprofitdistribution,exceptforthe agreed distribution proportion,all investment income obtained by the partnership may not be reinvested without the consent of allpartners,and the operating losses ofthe partnership shallbe borne by allpartners in proportion to theircapital contributions. For the above reasons,the Company does not actually control over ChangshuLizhen Smart Technology Partnership (Limited Partnership),and therefore does not include it in thescopeofconsolidation.

18.Otherinvestmentsin equity instruments

In RMB

Item	ClosingBalance	OpeningBalance
BeijingXloongTechnologiesCo.,Ltd.	10,977,900.79	10,752,374.31
BeijingWiparkingTechnologyCo.,Ltd.	9,150,443.30	8,789,652.45
JingtuoLiyinTechnology(Beijing)Co., Ltd.	3,724,908.43	3,675,044.01
ZhejiangTonyElectronicCo.,Ltd	114,221,319.04	170,733,150.00
Total	138,074,571.56	193,950,220.77

Itemized disclosureofnon-trading equity instrumentinvestmentsin thecurrentperiod

In RMB

Projectname	Cumulativegains	Cumulativelosses	Amountofothercomprehensiveincomecarriedovertoretainedearnings	Reasonsforbeingdesignatedasequityinstrumentsatfairvaluethroughothercomprehensiveincome	Reasonsforcarry-overofothercomprehensiveincometoretainedearnings
BeijingXloong Technologies Co.,Ltd.	977,900.79			Notforshort-termtradingpurposes
Beijing Wiparking TechnologyCo., Ltd.		-849,556.70		Notforshort-termtradingpurposes
JingtuoLiyin Technology (Beijing)Co., Ltd.	724,908.43			Notforshort-termtradingpurposes
ZhejiangTony ElectronicCo., Ltd	94,854,026.52		22,570,692.52	Notforshort-termtradingpurposes	Disposalofpartialequities

Otherdescriptions:

19.Othernon-currentfinancialassets

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions:

20.Investmentproperties

(1)Investmentpropertiesmeasured atcost

√Applicable□N/A

In RMB

Item	Buildings	Landuseright	Total
I.Originalcarrying amount
1.Openingbalance	48,092,587.77	16,462,696.47	64,555,284.24
2.Increaseinthe currentperiod	416,874.16		416,874.16
(1)Purchase
(2)Transferfrom inventories\fixed assets\constructionin progress	416,874.16		416,874.16
(3)Increaseinbusiness combination

3.Decreaseinthe currentperiod	1,657,313.52	2,479,861.45	4,137,174.97
(1)Disposal	1,635,786.91	2,447,106.02	4,082,892.93
(2)Othertransferout	21,526.61	32,755.43	54,282.04
Otherdecrease
4.Closingbalance	46,852,148.41	13,982,835.02	60,834,983.43
II.Accumulated depreciationand amortization
1.Openingbalance	11,898,806.50		11,898,806.50
2.Increaseinthe currentperiod	1,937,521.84		1,937,521.84
(1)Provisionor amortization	1,937,521.84		1,937,521.84

3.Decreaseinthe currentperiod	593,455.15		593,455.15
(1)Disposal	586,057.33		586,057.33
(2)Othertransferout	7,397.82		7,397.82

4.Closingbalance	13,242,873.19		13,242,873.19
III.Provisionfor impairment
1.OpeningBalance
2.Increaseinthe currentperiod
(1)Provision

3.Decreaseinthe currentperiod
(1)Disposal
(2)Othertransferout

4.Closingbalance
IV.Bookvalue
1.Closingbalance	33,609,275.22	13,982,835.02	47,592,110.24
2.Openingbalance	36,193,781.27	16,462,696.47	52,656,477.74

（ (2)Investmentpropertiesmeasured atfairvalue

Applicable√N/A

(3)Investmentpropertieswithouttitlecertificate

In RMB

Item	Bookvalue	Reasonsfornotobtainingthetitlecertificate

Othernotes

21.Fixed assets

In RMB

Item	ClosingBalance	OpeningBalance
Fixedassets	19,761,012,854.95	13,707,298,535.36
Total	19,761,012,854.95	13,707,298,535.36

(1)Fixed assets

In RMB

Item	Buildings	Officeequipment	Machineryequipment	Computerequipment	Auxiliaryproduction	Transportation	Otherequipment	Mouldequipment	Total
					equipment	equipment
I.Original carrying amount
1.Opening Balance	4,544,013,678.10	156,341,023.99	8,181,591,674.43	125,793,925.18	1,454,366,545.86	43,266,776.57	1,553,202,096.75	1,250,190,928.04	17,308,766,648.92
2. Increasein thecurrent period	2,492,192,167.48	48,347,866.40	4,314,086,470.71	40,443,707.53	569,707,147.67	7,934,264.41	1,406,352,642.72	1,160,993,026.63	10,040,057,293.55
(1) Purchase	1,376,914,445.58	47,371,263.44	3,710,468,499.89	39,983,029.14	504,361,471.28	7,926,608.05	1,402,523,140.31	1,104,246,919.00	8,329,831,867.42
(2) Transferin from construction inprogress	1,104,725,605.43	76,610.52	600,513,202.51	461,794.41	65,394,619.23		2,637,529.78	56,744,583.48	1,694,517,454.63
(3) Increasein business combination							1,192,403.53		1,192,403.53
Other	10,552,116.47	899,992.44	3,104,768.31	-1,116.02	-48,942.84	7,656.36	-430.90	1,524.15	14,515,567.97
3. Decreasein thecurrent period	14,574,834.24	8,129,332.62	1,789,988,570.25	15,504,093.64	207,991,692.00	3,017,838.40	179,030,360.83	187,522,202.07	2,405,758,924.05
(1) Disposalor scrap	4,734,995.24	6,993,109.39	1,287,833,063.55	15,388,508.94	207,846,950.28	2,905,349.27	178,244,446.32	187,451,181.22	1,891,397,604.21
Other	9,839,839.00	1,136,223.23	502,155,506.70	115,584.70	144,741.72	112,489.13	785,914.51	71,020.85	514,361,319.84
4.Closing Balance	7,021,631,011.34	196,559,557.77	10,705,689,574.89	150,733,539.07	1,816,082,001.53	48,183,202.58	2,780,524,378.64	2,223,661,752.60	24,943,065,018.42
II. Accumulate d depreciation
1.	699,447,771	63,593,544.	1,430,353,1	40,297,931.	374,257,195	20,728,806.	473,785,977	431,843,198	3,534,307,5
Opening balance	.71	06	21.23	56	.19	43	.54	.93	46.65
2. Increasein thecurrent period	259,995,232.86	28,329,216.99	895,638,952.13	20,651,189.65	247,118,761.61	4,987,517.73	378,515,628.73	388,140,993.58	2,223,377,493.28
(1) Provision	253,562,583.58	27,590,506.72	890,016,029.45	20,749,387.24	247,192,980.04	4,979,361.94	378,280,200.82	388,139,528.62	2,210,510,578.41
Other	6,432,649.28	738,710.27	5,622,922.68	-98,197.59	-74,218.43	8,155.79	235,427.91	1,464.96	12,866,914.87
3. Decreasein thecurrent period	3,060,287.77	4,845,104.83	399,134,860.42	5,409,087.04	70,251,075.09	1,624,321.34	79,177,957.74	89,489,851.58	652,992,545.81
(1)Disposal orscrap	1,779,929.69	4,599,344.73	336,142,693.31	5,372,392.83	35,677,962.98	1,607,891.93	79,112,373.52	86,344,097.74	550,636,686.73
Other	1,280,358.08	245,760.10	62,992,167.11	36,694.21	34,573,112.11	16,429.41	65,584.22	3,145,753.84	102,355,859.08
4.Closing Balance	956,382,716.80	87,077,656.22	1,926,857,212.94	55,540,034.17	551,124,881.71	24,092,002.82	773,123,648.53	730,494,340.93	5,104,692,494.12
III. Provision for impairment
1. Opening Balance		1,832,839.19	23,065,704.76	24,706.94	2,857,463.43	42,534.87	16,267,714.79	23,069,602.93	67,160,566.91
2. Increasein thecurrent period		8,390.80	81,189,350.05	17,490.44	524,635.23	-42,534.87	-4,462,197.74	1,689,925.38	78,925,059.29
(1) Provision		8,390.80	80,987,860.48	17,490.44	524,635.23	-42,534.87	-4,462,197.74	1,689,925.38	78,723,569.72
Other			201,489.57						201,489.57
3. Decreasein thecurrent period		34,548.67	56,283,660.26	11,041.09	818,658.55		11,191,869.73	386,178.55	68,725,956.85
(1) Disposalor		34,548.67	56,283,660.26	11,041.09	818,658.55		11,191,869.73	386,178.55	68,725,956.85
scrap
Other
4. Closing balance		1,806,681.32	47,971,394.55	31,156.29	2,563,440.11		613,647.32	24,373,349.76	77,359,669.35
IV.Book value
1.Closing balance	6,065,248,294.54	107,675,220.23	8,730,860,967.40	95,162,348.61	1,262,393,679.71	24,091,199.76	2,006,787,082.79	1,468,794,061.91	19,761,012,854.95
2.Opening balance	3,844,565,906.39	90,914,640.74	6,728,172,848.44	85,471,286.68	1,077,251,887.24	22,495,435.27	1,063,148,404.42	795,278,126.18	13,707,298,535.36

(2)Temporarily idlefixed assets

In RMB

Item	Originalcarryingamount	Accumulateddepreciation	Provisionforimpairment	Bookvalue	Remarks

(3)Fixed assetsleased in through financelease

In RMB

Item	Originalcarryingamount	Accumulateddepreciation	Provisionforimpairment	bookvalue

(4)Fixed assetsleased outthrough operating lease

Item	Closingbookvalue

(5)Fixed assetswithouttitlecertificate

In RMB

Item	Bookvalue	Reasonsfornotobtainingthetitlecertificate
Workshop,officeanddormitorybuildings ofFujianJK	10,115,951.99	Note1
PrecisionmachineryworkshopofBoshuo Electronics	6,089,484.25	Newlybuilt;thecertificateisinprocess
NewhousesandbuildingsofLuxshare ElectronicKunshan	385,256,993.67	Newlybuilt;thecertificateisinprocess
ChangshuLuxshareFactoryandAuxiliary BuildingProject	313,734,239.12	Newlybuilt;thecertificateisinprocess
NewDormitoryofZhejiangIntelligent Manufacture	133,995,943.37	Newlybuilt;thecertificateisinprocess
CadreTrainingCenterofMeite Technology(Suzhou)Co.,Ltd.	1,443,777.51	Newlybuilt;thecertificateisinprocess
PlantandDormitoryforJiangxiIntelligent Manufacture	427,715,309.33	Newlybuilt;thecertificateisinprocess
ComplexBuildingandDormitoryof DongguanLuxshare	151,693,631.20	Newlybuilt;thecertificateisinprocess

Otherdescriptions

Note 1:The land occupied by the staffdormitory isin nature an allotted land,the use rightofwhich wasacquired by the Company by meansoftransferthrough agreementin line with relevantregulationsatthattime.The property title formed based on the allotted land use rightisnotallowed to be transferred unlesstheallocated land userightisconverted to paid land useright.However,theexisting land userightcannotbe transferred by agreement,asa resultofwhich the property title to the staffdormitory building hasnotbeen transferred to Fujian JK.

(6)Disposaloffixed assets

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions

22.Construction in progress

In RMB

Item	ClosingBalance	OpeningBalance
Constructioninprogress	1,596,064,894.58	865,549,438.56
Total	1,596,064,894.58	865,549,438.56

(1)Construction in progress

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue
Workshop construction	1,311,923,496.51		1,311,923,496.51	646,783,362.29		646,783,362.29
Mould improvement	4,759,515.63		4,759,515.63	32,471,966.51		32,471,966.51
Equipment	145,475,258.95		145,475,258.95	184,343,732.88		184,343,732.88
installation engineering
Other	133,906,623.49		133,906,623.49	1,950,376.88		1,950,376.88
Total	1,596,064,894.58		1,596,064,894.58	865,549,438.56		865,549,438.56

(2)Changesin significantconstructionsin progressforthecurrentperiod

In RMB

Projectname	Budget	Openingbalance	Increaseinthecurrentperiod	Amounttransferredtofixedassetsinthecurrentperiod	Otherdecreaseinthecurrentperiod	Closingbalance	Proportionofaccumulatedprojectinvestmentinbudget	Projectprogress	Sourceoffunds
Changshu Luxshare workshop constructio n	786,917,140.87		643,399,268.56	277,048,598.87	2,175,096.00	364,175,573.69	81.76%	81.76
Dongguan Luxshare workshop constructio n	1,000,000,000.00	168,993,660.03	101,006,322.64	197,298,704.82		72,701,277.85	95.00%	95.00	Fundsfromequityfinancing
Workshop Project	500,000,000.00	83,849,433.44	207,418,190.22	5,615,836.45	5,807,816.60	279,843,970.61	58.25%	58.25
Intelligent Manufactu reJiangxi workshop constructio n	1,082,665,773.12	189,572,791.91	1,204,150.95	101,233,151.33		89,543,791.53	75.00%	80.00	Fundsfromequityfinancing
Zhejiang intelligent manufactu ring workshop constructio n	144,730,000.00	15,602,124.80	226,829,927.62	242,432,052.42			100.00%	100.00
Yunzhong phaseI	1,700,000,000.00	87,679,914.12	28,170,000.00	87,679,914.12		28,170,000.00	80.00%	80.00
andphase II workshop constructio n
Yi’an project constructio n	660,786,440.65	80,220,457.42	424,517,985.48	138,057,144.69	5,193,555.51	361,487,742.70	76.38%	76.38
Total	5,875,099,354.64	625,918,381.72	1,632,545,845.47	1,049,365,402.70	13,176,468.11	1,195,922,356.38	--	--	--

(3)Provision forimpairmentofconstruction in progressforthecurrentperiod

In RMB

Item	Currentprovisionamount	Reasonsforprovision

Otherdescriptions

(4)Engineering materials

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue

Otherdescriptions:

23.Bearerbiologicalassets

(1)Bearerbiologicalassetsmeasured atcost

Applicable√N/A

(2)Bearerbiologicalassetsmeasured atfairvalue

Applicable√N/A

24.Oiland gasassets

Applicable√N/A

25.Right-of-useassets

In RMB

Item		Total

Othernotes:

26.Intangibleassets

(1)Intangibleassets

In RMB

Item	Landuseright	Patentright	Non-patenttechnology	Software	Other	Total
I.Original carryingamount
1.Opening balance	1,022,608,330.65	1,771,459.90	71,902,729.82	16,318,959.18	42,059,231.19	1,154,660,710.74
2.Increase inthecurrent period	257,568,074.66	77,940.05	17,144,353.16	109,894,112.81		384,684,480.68
(1) Purchase	257,442,863.77	66,981.13	17,073,890.16	109,889,559.91		384,473,294.97
(2) InternalR&D
(3) Increasein business combination
Other	125,210.89	10,958.92	70,463.00	4,552.90		211,185.71
3.Decreasein thecurrentperiod	101,574,187.62	921,331.82	2,140,160.48	-341,853.96	21,388.19	104,315,214.15
(1) Disposal	14,198,228.54	486,066.04	1,276,656.56	60,344.86		16,021,296.00
Decreasein business combination	62,418,000.00					62,418,000.00
Other	24,957,959.08	435,265.78	863,503.92	-402,198.82	21,388.19	25,875,918.15
4.Closing Balance	1,178,602,217.69	928,068.13	86,906,922.50	126,554,925.95	42,037,843.00	1,435,029,977.27
II.Accumulated amortization
1.Opening Balance	66,801,559.21	717,432.77	31,090,251.01	6,196,585.34	2,129,036.88	106,934,865.21
2.Increase inthecurrent period	22,720,572.80	84,456.51	18,392,710.88	22,013,583.55	3,645,854.39	66,857,178.13
(1) Provision	22,720,572.80	74,790.68	18,328,216.88	22,011,767.67	3,645,854.39	66,781,202.42
Other		9,665.83	64,494.00	1,815.88		75,975.71
3.Decrease inthecurrent period	2,073,254.46	203,138.67	1,764,307.81	-125,490.23	8,065.01	3,923,275.72
(1) Disposal	287,912.59	20,252.80	1,241,156.17	10,057.49		1,559,379.05
Decreasein business combination	1,456,420.00					1,456,420.00
Other	328,921.87	182,885.87	523,151.64	-135,547.72	8,065.01	907,476.67
4.Closing Balance	87,448,877.55	598,750.61	47,718,654.08	28,335,659.12	5,766,826.26	169,868,767.62
III.Provisionfor impairment
1.Opening Balance
2.Increase inthecurrent period
(1) Provision
Other
3.Decrease inthecurrent period
(1)Disposal
Other
4.Closing Balance
IV.Bookvalue
1.Closing balance	1,091,153,340.14	329,317.52	39,188,268.42	98,219,266.83	36,271,016.74	1,265,161,209.65
2.Opening	955,806,771.44	1,054,027.13	40,812,478.81	10,122,373.84	39,930,194.31	1,047,725,845.53
balance

Theproportion ofintangibleassetsformed through internalR&Din thebalanceofintangibleassetsattheend ofthis

period.

(2)Land userightwithouttitlecertificate

In RMB

Item	Bookvalue	Reasonsfornotobtainingthetitlecertificate

Otherdescriptions:

27.Developmentexpenditure

In RMB

Item	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
Item	OpeningBalance	Internaldevelopmentexpenditure	Other	Recognizedasintangibleassets	Convertedtocurrentprofitorloss	ClosingBalance

Total

Otherdescriptions

28.Goodwill

(1)Originalcarrying amountofgoodwill

In RMB

Investeenameoreventforminggoodwill	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
Investeenameoreventforminggoodwill	OpeningBalance	Formedbybusinesscombination	Other	Disposal	Other	ClosingBalance
ASAP Technology (Jiangxi)Co., Ltd.	42,325,745.85					42,325,745.85
LantoElectronic Limited	376,682,429.24					376,682,429.24
BozhouLanto Electronic Limited	9,564,372.61					9,564,372.61
M&Aof	53,174,339.31					53,174,339.31
KERTONG goodwill
FujianJKWiring SystemsCo.,Ltd.	17,717,209.29					17,717,209.29
HuzhouJiuding ElectronicCo., Ltd.	1,730,318.45					1,730,318.45
SpeedTechCorp.	26,656,146.69					26,656,146.69
Luxshare Electronic Technology (Kunshan)Co., Ltd.	4,582,880.91					4,582,880.91
Suk kunststofftechnik GmbH	9,552,894.63					9,552,894.63
Meite Technology (Suzhou)Co., Ltd.	8,570,588.06					8,570,588.06
MeilvElectronic (Huizhou)Co., Ltd.	6,575,713.14					6,575,713.14
MeilvElectronics (Shanghai)Co., Ltd.	454,304.97					454,304.97
WuxiHuihong ElectronicCo., Ltd.	3,102,735.14					3,102,735.14
CastleRock,Inc.	8,303,254.98					8,303,254.98
Taiqiao InvestmentCo., Ltd.		441,595.93				441,595.93
Total	568,992,933.27	441,595.93				569,434,529.20

(2)Provision forimpairmentofgoodwill

In RMB

Investeenameoreventforming	OpeningBalance	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		ClosingBalance
Investeenameoreventforming	OpeningBalance	Provision	Other	Disposal	Other	ClosingBalance
goodwill
Meite Technology (Suzhou)Co., Ltd.	8,570,588.06					8,570,588.06
Suk kunststofftechnik GmbH	9,552,894.63					9,552,894.63
MeilvElectronics (Shanghai)Co., Ltd.	454,304.97					454,304.97
FujianJKWiring SystemsCo.,Ltd.	17,717,209.29					17,717,209.29
Total	36,294,996.95					36,294,996.95

Relevantinformation on assetgroup orsetofassetgroupsto which thegoodwillbelongs

Descriptions on the goodwillimpairmenttestprocess,key parameters (such as the growth rate in the forecastperiod,thegrowth rate in the stable period,the profitrate,the discountrate,the forecastperiod,etc.,when forecasting the presentvalueoffuturecash flow)and therecognition method ofgoodwillimpairmentloss

The goodwillofthe Company is formed by business combinations notinvolving enterprises undercommon controlin previous years and this year.On the balance sheetdate,the Company conductedimpairment tests on goodwill. The recoverable amount of the asset group involved in goodwill isdetermined according to thepresentvalue ofthe future cash flowofthe assetgroup and the netrealizablevalue. The management determines the growth rate and gross margin based on the macro marketenvironment,historicalexperience and the developmentstage forecastofproductsegments involved indifferentassetgroups.Depending on the differentassetgroups involved,the growth rate used in theforecastforthe currentyearis 1.00%-25.00%,the gross margin is 13.00%-23.81%,and the discountrate is 10.75%-12.01%.The parameters used in goodwillimpairmenttestofmajorassetgroups are asfollows:

Assetgroupname	Grossmargin	Growthrate	Discountrate
ASAPTechnology(Jiangxi)Co.,Ltd.	18%-19.48%	1.4%-1.6%	10.75%
LantoElectronicLimited	22.00%-23.81%	10.00%-10.82%	11.25%
ShenzhenKertongIndustrialCo.,Ltd.	22%-23%	23.00%-24.9%	12.01%

Influenceofgoodwillimpairmenttest

Otherdescriptions

29.Long-termprepaid expenses

In RMB

Item	OpeningBalance	Increaseinthecurrentperiod	Amortizationamountinthecurrentperiod	ClosingBalance
Houserepairfee	301,886,866.87	228,173,592.60	105,277,059.74	424,783,399.73
Other	50,155,584.53	45,458,799.06	32,310,738.35	63,303,645.24
Total	352,042,451.40	273,632,391.66	137,587,798.09	488,087,044.97

Otherdescriptions

30.Deferred incometax assets/deferred incometax liabilities

(1)Deferred incometax assetsthatarenotoffset

In RMB

Item	ClosingBalance		OpeningBalance
Item	Deductibletemporarydifferences	Deferredincometaxassets	Deductibletemporarydifferences	Deferredincometaxassets
Provisionforimpairment ofassets	178,973,738.82	27,259,356.59	106,187,235.36	16,759,791.66
Deductiblelosses	1,093,128,995.53	151,850,386.35	157,932,162.92	15,959,512.69
Exchangedifferencesof foreignoperations	27,288,912.60	5,457,782.50	26,415,900.11	5,283,180.10
Unrealizedprofitof internaltransaction	197,095,777.59	29,564,366.64	170,180,940.60	25,527,141.08
Non-leavebonus	1,773,724.21	354,744.89	1,749,973.08	349,994.62
Valuationofderivative financialinstruments			960,650.06	144,097.51
Governmentgrants	396,003,023.27	70,194,455.38	232,487,846.06	35,768,155.06
Share-basedpayment	390,170,003.29	67,974,211.12	241,604,404.52	38,422,671.30
Other	15,122,457.21	3,179,130.74	5,732,001.17	1,260,646.35
Total	2,299,556,632.52	355,834,434.21	943,251,113.88	139,475,190.37

(2)Deferred incometax liabilitiesthatarenotoffset

In RMB

Item	ClosingBalance		OpeningBalance
Item	Taxabletemporarydifference	Deferredtaxincomeliabilities	Taxabletemporarydifference	Deferredtaxincomeliabilities
Assetsvaluation appreciationofbusiness	93,903,990.20	16,054,921.33	99,810,634.68	16,786,151.78
combinationnot involvingenterprises undercommoncontrol
Changesinfairvalueof otherinvestmentsin equityinstruments	95,831,927.34	14,374,789.10	148,985,524.31	22,234,972.50
Accelerateddepreciation offixedassets	5,363,997,971.61	806,120,054.47	3,405,624,697.88	511,670,187.93
Supportfundsallocated bythegovernment	15,046,630.73	2,256,994.61	15,434,326.67	2,315,149.00
Accumulative recognitionofoverseas investmentinterestsby equitymethod	342,518,297.34	68,503,659.35	205,334,910.98	41,066,982.12
Prepaidpension	4,849,056.41	969,811.28	4,606,433.66	921,286.73
Allowanceforbaddebt overrun	682,946.59	136,589.23	663,432.19	132,686.44
Valuationofderivative financialinstruments	320,117,316.21	48,017,597.53	14,537,134.42	2,311,933.44
Other	51,621,287.35	9,657,796.05	3,129,960.92	745,043.06
Total	6,288,569,423.78	966,092,212.95	3,898,127,055.71	598,184,393.00

(3)Deferred incometax assetsorliabilitiespresented in netamountafteroffsetting

In RMB

Item	Offsetamountbetweendeferredtaxassetsandliabilitiesattheendoftheperiod	Closingbalanceofdeferredtaxassetsorliabilitiesafteroffset	Offsetamountbetweendeferredtaxassetsandliabilitiesatthebeginningoftheperiod	Openingbalanceofdeferredtaxassetsorliabilitiesafteroffset
Deferredtaxassets		355,834,434.21		139,475,190.37
Deferredtaxliabilities		966,092,212.95		598,184,393.00

(4)Detailsofunrecognized deferred incometax assets

In RMB

Item	ClosingBalance	OpeningBalance

(5)The deductible losses ofunrecognized deferred income tax assets willbe due in the followingyears

In RMB

Particularyear	Closingamount	Openingamount	Remarks

Otherdescriptions:

31.Othernon-currentassets

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue
Prepaymentsforequipment,projectand land	1,212,186,290.84		1,212,186,290.84	1,422,892,638.91		1,422,892,638.91
Prepaidpension	4,849,056.41		4,849,056.41	4,606,433.66		4,606,433.66
Other	6,164,295.36		6,164,295.36	5,067,455.80		5,067,455.80
Total	1,223,199,642.61		1,223,199,642.61	1,432,566,528.37		1,432,566,528.37

Otherdescriptions:

32.Short-termborrowings

(1)Classification ofShort-termborrowings

In RMB

Item	ClosingBalance	OpeningBalance
Pledgeloans	5,382,006,847.47	2,231,288,461.26
Mortgageloans	80,950,818.66	41,868,000.00
Guaranteedloans	871,234,184.03	844,714,453.79
Creditloans	1,242,876,948.33	1,048,431,308.12
Total	7,577,068,798.49	4,166,302,223.17

Descriptionson classification ofshort-termborrowings:

(2)Overduebutunpaid short-termborrowings

Thetotalamountofoverduebutunpaid short-termborrowingsattheend oftheperiod isRMB,ofwhich thesignificantoverdueand outstanding short-termborrowingsareasfollows:

In RMB

Borrower	ClosingBalance	Loaninterestrate	Overduetime	Overdueinterestrate

BorrowerClosing BalanceLoan interestrateOverduetimeOverdueinterestrateOtherdescriptions:

33. Held-for-trading financialliabilities

In RMB

Item	ClosingBalance	OpeningBalance
Held-for-tradingfinancialliabilities		1,001,553.00
Including:
Derivativefinancialliabilities		1,001,553.00
Including:
Total		1,001,553.00

Otherdescriptions:

34.Derivativefinancialliabilities

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions:

35.Notespayable

In RMB

Category	ClosingBalance	OpeningBalance
Commercialacceptancebill	280,012.21
Bankacceptancebill	128,292,099.33	206,496,660.20
Total	128,572,111.54	206,496,660.20

Thetotalamountofnotespayableduebutunpaid attheend ofthisperiod isRMB.

36.Accountspayable

(1)Presentation ofaccountspayable

In RMB

Item	ClosingBalance	OpeningBalance
Withinoneyear	23,001,670,496.95	17,254,624,115.62
Onetotwoyears	48,074,585.64	6,716,724.96
Twotothreeyears	777,315.18	5,634,282.62
Morethanthreeyears	1,035,206.06	1,248,056.96
Total	23,051,557,603.83	17,268,223,180.16

(2)Significantaccountspayablewith aging over1 year

In RMB

Item	ClosingBalance	Reasonsfornon-paymentorcarryingforward
Entity1	7,060,756.36	Unsettled
Entity2	5,047,010.15	Unsettled
Entity3	3,607,807.50	Unsettled
Entity4	3,262,450.00	Unsettled
Entity5	1,213,928.00	Unsettled
Total	20,191,952.01	--

Otherdescriptions:

37.Receiptsin advance

(1)Presentation ofreceiptsin advance

In RMB

Item	ClosingBalance	OpeningBalance
Withinoneyear		100,037,449.20
Onetotwoyears		1,511,930.01
Twotothreeyears		60,000.00
Total		101,609,379.21

(2)Significantreceiptsin advancewith aging over1 year

In RMB

Item	ClosingBalance	Reasonsfornon-paymentorcarryingforward

38 Contractliabilities

In RMB

Item	ClosingBalance	OpeningBalance
Goodspaymentsreceivedinadvance	152,512,971.36	0.00
Total	152,512,971.36

Amountofand reason forsignificantchangesin book valueduring thereporting period

In RMB

Item	Changeamount	Reasonforchange

39.Employeebenefitspayable

(1)Presentation ofemployeebenefitspayable

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
I.Short-term compensation	1,390,049,933.20	11,477,740,914.72	11,505,531,953.21	1,362,258,894.71
II.Postemployment benefits-defined contributionplan	33,268,964.54	485,266,194.82	483,260,369.76	35,274,789.60
III.Terminationbenefits	98,454.92	591,254.58	591,254.58	98,454.92
Total	1,423,417,352.66	11,963,598,364.12	11,989,383,577.55	1,397,632,139.23

(2)Presentation ofshort-termcompensation

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
1.Salary,bonus, allowanceandsubsidy	1,365,911,504.54	10,958,962,160.01	10,994,429,770.55	1,330,443,894.00
2.Employeewelfare	3,907,968.78	34,061,821.66	34,340,075.18	3,629,715.26
3.Socialinsurance premium	17,649,747.03	282,229,522.08	276,586,215.52	23,293,053.59
Including:Medical insurancepremium	14,227,803.13	248,781,884.09	243,271,856.50	19,737,830.72
Employment injuryinsurance premium	2,199,252.97	14,298,209.61	14,300,381.86	2,197,080.72
Maternity insurancepremium	1,222,690.93	19,149,428.38	19,013,977.16	1,358,142.15
4.Housingprovident fund	653,763.92	195,028,615.11	194,709,518.91	972,860.12
5.Tradeunionfundsand staffeducationfunds	914,416.01	5,858,895.26	5,225,816.10	1,547,495.17
6.Othershort-term compensation	1,012,532.92	1,599,900.60	240,556.95	2,371,876.57
Total	1,390,049,933.20	11,477,740,914.72	11,505,531,953.21	1,362,258,894.71

（3）Presentation ofdefined contribution plan

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
1.Basicendowment insurancepremium	32,460,745.49	459,483,031.72	457,500,084.73	34,443,692.48
2.Unemployment	808,219.05	25,783,163.10	25,760,285.03	831,097.12
insurancepremium
Total	33,268,964.54	485,266,194.82	483,260,369.76	35,274,789.60

Otherdescriptions:

40. Taxespayable

In RMB

Item	ClosingBalance	OpeningBalance
Valueaddedtax	51,405,224.41	22,190,181.00
Enterpriseincometax	61,775,887.49	123,745,112.07
Individualincometax	21,229,322.95	70,495,128.22
Urbanmaintenanceandconstructiontax	39,628,090.50	49,444,922.13
Propertytax	9,463,498.94	6,764,746.33
Educationsurcharges	24,409,566.22	29,750,942.00
Landusetax	2,197,387.91	1,632,262.33
Localeducationsurcharges	15,752,322.98	19,851,689.12
Stampduty	6,904,466.32	2,724,640.80
Other	4,655,723.91	1,033,698.68
Total	237,421,491.63	327,633,322.68

Otherdescriptions:

41.Otherpayables

In RMB

Item	ClosingBalance	OpeningBalance
Interestpayable		6,097,484.73
Otherpayables	146,162,097.14	346,292,787.04
Total	146,162,097.14	352,390,271.77

(1)Interestpayable

In RMB

Item	ClosingBalance	OpeningBalance
Interestonlong-termborrowingswith interestpaidininstallmentsandprincipal repayableatmaturity		624,916.67
Corporatebondinterest		290,958.90
Interestpayableonshort-termborrowings		5,181,609.16
Total		6,097,484.73

Total6,097,484.73Significantoverduebutunpaid interest:

In RMB

Borrower	Overdueamount	Reasonsfordelay

Otherdescriptions:

(2)Dividendspayable

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions:itisrequired to disclosethereasonsiftherearekey dividendspayablethathavenotbeen paid formorethan 1 year.

(3)Otherpayables

1)Presentation ofotherpayablesby nature

In RMB

Item	ClosingBalance	OpeningBalance
Within1year	144,334,594.60	324,372,366.62
1-2years	622,251.94	20,753,622.69
2-3years	410,000.00	966,797.73
Over3years	795,250.60	200,000.00
Total	146,162,097.14	346,292,787.04

2)Othersignificantaccountspayableaged over1 year

In RMB

Item	ClosingBalance	Reasonsfornon-paymentorcarryingforward

Otherdescriptions

42.Held-for-saleliabilities

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions:

43. Non-currentliabilitiesduewithin oneyear

In RMB

Item	ClosingBalance	OpeningBalance
Long-termborrowingsduewithinoneyear	278,527,714.63	366,537,115.41
Total	278,527,714.63	366,537,115.41

Otherdescriptions:

44. Othercurrentliabilities

In RMB

Item	ClosingBalance	OpeningBalance
Short-termbondspayable	508,715,277.78	500,000,000.00
Government-backedfund	57,000,000.00	115,000,000.00
OutputVATtobelevied	17,673,149.75
Other	39,869,128.36	31,115,152.49
Total	623,257,555.89	646,115,152.49

Increaseand decreasein short-termbondspayable:

In RMB

Bondname	Facevalue	Issuedate	Bondmaturity	Amountofissue	Openingbalance	Currentissue	Interestaccruedatfacevalue	Currentrepayment	ClosingBalance
Short-term bonds payable	100.00	December26,2019	270days	500,000,000.00	500,000,000.00		13,057,377.05	513,057,377.05
Short-term bonds payable	100.00	March05,2020	270days	1,000,000,000.00		1,000,000,000.00	21,452,054.79	1,021,452,054.79
Short-term bonds payable	100.00	April24,2020	270days	500,000,000.00		500,000,000.00	8,715,277.78		508,715,277.78
Total	--	--	--	2,000,000,000.00	500,000,000.00	1,500,000,000.00	43,224,709.62	1,534,509,431.84	508,715,277.78

Otherdescriptions:

45.Long-termborrowings

(1)Classification oflong-termborrowings

In RMB

Item	ClosingBalance	OpeningBalance
Pledgeloans	1,878,341.29	1,949,694.88
Mortgageloans	1,301,034,722.05	1,527,173,950.10
Creditloans	192,286,175.07	33,785,179.32
Total	1,495,199,238.41	1,562,908,824.30

Descriptionson classification oflong-termborrowings:

Otherdescriptions,including interestraterange:

46.Bondspayable

(1)Bondspayable

In RMB

Item	ClosingBalance	OpeningBalance
Convertiblebonds	2,475,423,249.98
Total	2,475,423,249.98

(2)Increase and decrease in bondspayable (excluding preferred shares,perpetualbondsand otherfinancialinstrumentsclassified asfinancialliabilities)

In RMB

Bondname	Facevalue	Issuedate	Bondmaturity	Amountofissue	Openingbalance	Currentissue	Interestaccruedatfacevalue	Amortizationofpremiumanddiscount	Currentrepayment		ClosingBalance
Convertib lebonds of Luxshare	3,000,000,000.00	November3,2020	6years	3,000,000,000.00		3,000,000,000.00	500,000.00	-17,629,052.02			2,475,423,249.98
Total	--	--	--	3,000,000,000.00		3,000,000,000.00	500,000.00	-17,629,052.02			2,475,423,249.98

(3)Descriptionson conditionsand timeforconversion ofconvertiblebonds

1. Description on conditionsand timeoftheconvertiblebonds

The conversion period ofthe convertible bonds issued this time commences on the firsttrading day six months afterthe end ofthe issue ofthe convertible bonds (November9,2020,i.e.the date when the proceeds are transferred to the issuer's account)and ends onthematurity dateoftheconvertiblebonds.(i.e.fromMay 10,2021 (asthedateofMay 09,2021 is a non-trading day,itdefers to May 10,2021 )to November2,2026 (itdefers tothe firsttrading day thereafterin case oflegalholidaysorrestdays;no additionalinterestwillbecharged to thepaymentduring thedeferred period)).

(4)Descriptionson otherfinancialinstrumentsclassified asfinancialliabilities

Basicinformation on preferred shares,perpetualbondsand otherfinancialinstrumentsoutstanding attheend oftheperiodChangesin preferred shares,perpetualbondsand otherfinancialinstrumentsoutstanding attheend oftheperiod

In RMB

Outstanding financial instruments	Opening		Increaseinthecurrentperiod		Decreaseinthecurrentperiod		Closing
Outstanding financial instruments	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue

Descriptionson thebasisforclassifying otherfinancialinstrumentsinto financialliabilities

Otherdescriptions

47.Leaseliabilities

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions

48.Long-termpayables

In RMB

Item	ClosingBalance	OpeningBalance

(1)Presentation oflong-termpayablesby nature

In RMB

Item	ClosingBalance	OpeningBalance

Otherdescriptions:

(2)Specialaccountspayable

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance	Reason

ItemOpening BalanceIncreaseDecreaseClosing BalanceReasonOtherdescriptions:

49.Long-termemployeebenefitspayable

(1)Breakdown ofLong-termemployeebenefitspayable

In RMB

Item	ClosingBalance	OpeningBalance

(2)Changesin defined benefitplans

Presentvalueofobligationsin defined benefitplans:

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Plan assets:

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Netliabilities(netassets)ofdefined benefitplans

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Descriptionson thecontentofthedefined benefitplans,therelated risks,and theimpacton theCompany’sfuturecashflow,timeand uncertainty:

Descriptionson themajoractuarialassumptionsand sensitivity analysisresultsconcerning thedefined benefitplans:

Otherdescriptions:

50.Provisions

In RMB

Item	ClosingBalance	OpeningBalance	Reason
Productqualitywarranty	1,360,598.63	1,317,263.45
Total	1,360,598.63	1,317,263.45	--

Otherdescriptions,including majorassumptionsand estimation descriptionsrelated to significantprovisions

51.Deferred income

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance	Reason
Governmentgrants	256,059,554.91	212,686,653.09	43,400,225.36	425,345,982.64
Total	256,059,554.91	212,686,653.09	43,400,225.36	425,345,982.64	--

Projectsinvolving governmentgrants:

In RMB

Liabilities	Openingbalance	Newsubsidyamountinthecurrentperiod	Amountincludedinotherincomesinthecurrentperiod	Closingbalance	Relatedtoasset/income
Specialfunds for technological transformation	244,004,302.41	212,686,653.09	42,856,630.76	413,834,324.74	Relatedtoasset
andindustrial upgrading
Land-related refund	12,055,252.50		543,594.60	11,511,657.90	Relatedtoasset

Otherdescriptions:

52.Othernon-currentliabilities

In RMB

Item	ClosingBalance	OpeningBalance
Depositforleaseofplantbuildings	19,923.33	11,130.10
Government-backedfund	150,000,000.00	350,000,000.00
Total	150,019,923.33	350,011,130.10

Otherdescriptions:

On May 7,2016,JiangxiLuxshareIntelligentManufactureCo.,Ltd.(formally named asJi’anCity LuxshareRadio Frequency Technology Co.,Ltd.,“Ji’an RF”),asubsidiary ofthe

Company,entered into an investmentagreementwith theManagementCommitteeofJiangxiJi’an High-tech IndustrialPark,whereby itisagreed thatJi’an RFwillsetup aLuxshare-based RFprojectin thehigh-tech park,mainly planning theproduction ofbasestations,high-frequencyantennas,cordlesscharging modulesand otherelectronicproducts.In orderto promotethepaceofprojectconstruction,Ji’an RFwasgranted aloan fund supportofup to RMB500 million forcivilengineering.Thespecificfund paymentshallbemadedepending on theprojectprogressand projectfund demand.AsofDecember31,2020,thebalanceoffundsactually disbursed isRMB150 million.

53.Sharecapital

In RMB

	OpeningBalance	Increaseanddecrease(+,-)					ClosingBalance
	OpeningBalance	Newsharesissued	Stockdividend	Sharesconvertedfromcapitalreserve	Other	Subtotal	ClosingBalance
Totalshares	5,349,001,738.00	39,223,321.00		1,611,543,127.00		1,650,766,448.00	6,999,768,186.00

Otherdescriptions:

TheCompany’ssharecapitalincreased by RMB1,650,766,448.00 in thecurrentperiod.In details,after22,810,292 shareswere exercised independently by the stock option incentive recipientsin2018,the Company’ssharesincreased to 5,371,812,030 shares;according to the 17th session ofits 4th board of directors held on April 20,2020,the Company made profit distribution bydistributing cash dividendsofRMB644,617,443.60 in totalbased on the generalshare capitalof5,371,812,030 sharesto allshareholdersaccording to RMB1.2 (tax-inclusive)per10 shares,andatthe same time,the capitalreserve was capitalized by converting per10 shares into 3 shares,afterwhich,the generalshare capitalofthe Company hasbeen changed to 6,983,355,157 shares;afterthe capitalization ofcapitalreserve,16,413,029 shareswere exercised independently by thestock option incentive recipients,afterwhich the Company’s shares increased to 6,999,768,186shares.

54.Otherequity instruments

(1)Basic information on preferred shares, perpetual bonds and other financial instrumentsoutstanding attheend oftheperiod

(2)Changes in preferred shares,perpetualbonds and other financialinstruments outstanding attheend oftheperiod

In RMB

Outstandingfinancialinstruments	Opening		Increaseinthecurrentperiod		Decreaseinthecurrentperiod		Closing
Outstandingfinancialinstruments	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue	Quantity	Bookvalue
Convertible bonds				527,449,226.56				527,449,226.56
Total				527,449,226.56				527,449,226.56

Descriptionson theincreaseand decreasein otherequity instrumentsin thecurrentperiod,thereasonsforthechanges,andthebasisforrelevantaccounting treatment:

According to the Proposal on the Specific Plan for the Public Issue of Convertible Bonddeliberated and approved atthe tenth secession ofthe fourth Board ofDirectorsofthe Company,and the Reply forApprovalofPublic Issue ofConvertible Bondsby Luxshare Precision IndustryCo.Ltd.received by the Company fromChina SecuritiesRegulatory Commission(Zheng Jian XuKe [2020]No.247)on February 19, 2020, the Company was approved to publicly issueconvertiblebondswith atotalfacevalueofRMB3 billion and atermof6 years.TheCompany’sconvertible bonds of RMB3 billion were listed for trading on Shenzhen Stock Exchange onNovember3,2020,with an abbreviation name of"Luxshare Convertible Bonds"and the bondcode of“128136”. The equity amount of convertible bonds was increased byRMB527,449,226.56 in thecurrentperiod.

Otherdescriptions:

55.Capitalreserve

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
Capitalpremium(share capitalpremium)	2,350,369,599.00	628,237,652.74	1,611,543,127.00	1,367,064,124.74
Othercapitalreserve	304,323,275.21	347,403,580.73	128,691,411.08	523,035,444.86
Total	2,654,692,874.21	975,641,233.47	1,740,234,538.08	1,890,099,569.60

Otherdescriptionsincluding thoseon theincreaseand decrease forthecurrentperiod and thereasonsforthechange:

Capital surplus - equity premiumincreased by RMB628,237,652.74 in the current period,including an increase of RMB487,939,258.34 fromstock option exercise, a transfer ofRMB128,691,411.08 fromothercapitalreserve through stock option exercise,and an increase ofRMB11,606,983.32 by other ways; capital reserve - equity premiumdecreased byRMB1,611,543,127.00 in the current period, which was due to the capitalization of capitalreserve.

Capitalreserve -the increase in othercapitalreserve in the currentperiod is due to the costofshare-based paymentincreased by RMB347,403,580.73,and the decrease therein is due to thetransferofothercapitalreserveto equity premium.

56.Treasury stock

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance

Otherdescriptions,including thoseon theincreaseand decreaseforthecurrentperiod and thereasonsforthechange:

57.Othercomprehensiveincome

In RMB

Item	OpeningBalance	Amountrecognizedinthecurrentperiod						ClosingBalance
Item	OpeningBalance	Amountofincomebeforetaxinthecurrentperiod	Less:amountpreviouslyincludedinothercomprehensiveincomeandtransferredtoprofitorlossforthecurrentperiod	Less:amountpreviouslyincludedinothercomprehensiveincomeandtransferredtoretainedearningsforthecurrentperiod	Less:incometaxexpenses	Attributabletotheparentcompanyaftertax	Attributabletominorityshareholdersaftertax	ClosingBalance
I.Othercomprehensiveincomethat cannotbereclassifiedintoprofitorloss	126,283,944.26	-30,172,249.21		22,570,692.52	-7,918,920.92	-44,824,020.81		81,459,923.45
Changesinfairvalueofother investmentsinequityinstruments	126,283,944.26	-30,172,249.21		22,570,692.52	-7,918,920.92	-44,824,020.81		81,459,923.45
II.Othercomprehensiveincometobe reclassifiedintoprofitorloss	39,318,208.48	-169,542,554.65				-165,495,934.99	-4,046,619.66	-126,177,726.51
Translationdifferenceof foreigncurrencyfinancialstatements	39,318,208.48	-169,542,554.65				-165,495,934.99	-4,046,619.66	-126,177,726.51
Totalothercomprehensiveincome	165,602,152.74	-199,714,803.86		22,570,692.52	-7,918,920.92	-210,319,955.80	-4,046,619.66	-44,717,803.06

Otherdescriptions,including thoseon theadjustmentforconversion oftheeffectivepartofprofitorlossofcash flow

hedging into theinitialrecognition amountofthehedged item:

58.Specialreserve

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance

Otherdescriptions,including thoseon theincreaseand decreaseforthecurrentperiod and thereasonsforthechange:

59.Surplusreserve

In RMB

Item	OpeningBalance	Increase	Decrease	ClosingBalance
Statutorysurplusreserve	362,335,031.18	370,732,766.55		733,067,797.73
Total	362,335,031.18	370,732,766.55		733,067,797.73

Description ofsurplusreserve,including thoseon increaseand decreaseforthecurrentperiod and thereasonsforthe

change:

60.Undistributed profits

In RMB

Item	CurrentPeriod	PriorPeriod
Undistributedprofitsattheendoflastyearbefore adjustment	11,764,987,172.39	7,336,096,836.36
Totaladjustmentoftheundistributedprofitsatthe beginningoftheperiod(increase+,decrease-)		-5,571,942.46
Undistributedprofitsatthebeginningofthe periodafteradjustment	11,764,987,172.39	7,330,524,893.90
Add:Netprofitsattributabletotheownersofthe parentcompanyinthecurrentperiod	7,225,462,752.58	4,713,820,644.90
Less:Apportiontostatutorysurplusreserve	370,732,766.55	73,446,284.67
Commonstockdividendspayable	644,615,942.06	205,730,836.10
Other	-21,048,041.37	181,245.64
Undistributedprofitsattheendoftheperiod	17,996,149,257.73	11,764,987,172.39

Undistributed profitsattheend oftheperiod17,996,149,257.7311,764,987,172.39Detailsofadjustmentofundistributed profitsatthebeginning oftheperiod:

1)The undistributed profits at the beginning of the period affected by the retroactive adjustment as stipulated in theAccounting StandardsforBusinessEnterprisesand newregulationsnewly promulgated relating thereto amountto RMB.2)Theundistributed profitsatthebeginning oftheperiod affected by thechangesin accounting policiesamountto RMB.3)The undistributed profitsatthe beginning ofthe period affected by the correction ofmajoraccounting errorsamounttoRMB.

4)Theundistributed profitsatthebeginning oftheperiod affected by changesin thescopeofconsolidation dueto businesscombination involving enterprisesundercontrolamountto RMB.

5)Theundistributed profitsatthebeginning oftheperiod affected by otheradjustmentsamountto RMB.

61.Operating incomeand operating costs

In RMB

Item	Amountrecognizedinthecurrentperiod		Amountrecognizedinthepriorperiod
Item	Income	Cost	Income	Cost
Principalbusiness	91,793,434,304.26	75,153,299,514.88	62,099,166,625.21	49,775,493,325.62
Otherbusiness	707,824,907.28	616,707,534.70	417,147,963.21	292,336,628.34
Total	92,501,259,211.54	75,770,007,049.58	62,516,314,588.42	50,067,829,953.96

Ifthelowerofaudited netsprofitsincluding and excluding non-recurring profitorlossisnegative

□Yes√No

Income-related information:

In RMB

Contractclassification	Division1	Division2	Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:

Information related to performanceobligations:

Company purchasesrawmaterialsfromsuppliers,and combinesthe rawmaterialsinto certain productsfordelivery to thecustomersthrough significantproduction and processing activities.y Considering itassumes the majorresponsibilities fordelivering products to the customers,the Company is deemed as the primary responsible party.The Company is notobligated to return thereceived customers’goodspaymentsin anticipation,butithasaquality warranty responsibility forthe productsdelivered to thecustomers.Since thisresponsibility isan affirmative warranty which isrequired to ensure thatthe Company'sproductsshallmeetthe technicalparameters,quality,appearance and otherrequirementsofthe customers,ratherthan aservicewarranty,thisquality warranty doesnotconstituteaseparateperformanceobligation.

Information relating to thetransaction priceallocated to theremaining performanceobligations:

Attheend ofthereporting period,theincomescorresponding to thecontractssigned whoseperformancehasnotbeencommenced orcompleted amountto RMB0.00,ofwhich RMBisexpected to berecognized in,RMBisexpected toberecognized in,and RMBisexpected to berecognized in.

Otherdescriptions

62.Taxesand surcharges

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Urbanmaintenanceandconstructiontax	81,906,708.52	121,700,496.38
Educationsurcharges	75,957,575.51	117,804,967.10
Propertytax	39,872,407.36	29,065,746.96
Landusetax	6,222,537.93	6,418,612.42
Vehicleandvesselusetax	1,594,540.33	56,029.89
Stampduty	38,224,811.62	21,969,936.43
Other	6,997,157.54	6,177,170.34
Total	250,775,738.81	303,192,959.52

Otherdescriptions:

63.Selling expenses

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Employeebenefits	299,604,855.35	275,535,165.34
Storage,freightandleaseexpenses	25,954,501.83	84,047,142.56
Travelexpenses	10,523,347.33	23,191,081.26
Businessentertainmentexpenses	20,355,079.41	18,139,485.77
Materialexpenditure	1,095,021.52	17,833,112.34
Transportationexpenses	3,366,341.74	4,340,175.59
Consumablesandmiscellaneouspurchases	5,583,719.60	2,113,323.15
Depreciationandamortization	5,752,130.91	4,215,792.99
Consultingfees	2,383,695.21	1,513,311.78
Officeexpenses	322,246.46	2,495,149.63
Other	102,106,936.22	64,851,097.64
Total	477,047,875.58	498,274,838.05

Otherdescriptions:

64.Generalexpenses

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Personnelbenefits	1,460,800,684.09	986,091,683.77
Depreciationandamortization	251,028,760.61	212,114,923.53
Leasefee	62,104,694.48	43,856,074.86
Repaircost,miscellaneouspurchase	125,433,880.08	55,785,837.56
Waterandelectricity	36,346,709.92	20,450,376.73
Travelandtransportationexpenses	26,568,577.76	20,501,589.95
Officeexpenses	115,440,868.62	82,546,812.45
Materialsandconsumption	164,759,105.43	20,562,087.63
Otherexpenses	221,469,927.64	82,925,674.90
Total	2,463,953,208.63	1,524,835,061.38

Otherdescriptions:

65.R&Dexpenses

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Personnelbenefits	2,908,511,305.08	2,134,314,807.66
Mouldandmaterialcost	1,412,859,366.51	954,586,000.29
Consumablesandmiscellaneous	427,092,914.15	565,667,039.05
Depreciationandamortization	434,765,917.47	283,777,931.21
Repairandinspection	171,099,556.49	63,104,300.74
Servicefees	73,318,711.87	65,564,310.79
Waterandelectricity	72,911,702.75	57,562,150.17
Transportationandtravelexpenses	29,788,220.49	43,929,904.57
Commercialinsurance	4,911,888.67	14,371,174.40
Leasefee	47,239,062.80	28,253,209.91
Otherexpenses	162,306,490.05	164,839,817.68
Total	5,744,805,136.33	4,375,970,646.47

Otherdescriptions:

66.Financialexpenses

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Interestexpenses	394,589,818.16	364,595,633.11
Less:Interestincome	144,116,091.77	100,065,571.29
Foreignexchangegainsorlosses	614,733,760.74	37,682,810.65
Other	39,620,655.76	27,860,572.98
Total	904,828,142.89	330,073,445.45

Otherdescriptions:

67.Otherincomes

In RMB

Sourcesofotherincomes	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Specialfundsfortechnological transformationandindustrialupgrading	42,856,630.76	35,692,547.35
Financialincentives,grantsandsupport funds	209,265,296.05	129,859,190.43
Patentgrants	1,196,950.00	1,358,580.00
R&Dgrants	8,816,360.00	4,904,499.67
Enterprisedevelopmentsupportfunds	20,325,926.50	4,522,500.00
Jobsecuritygrants	8,612,979.89	24,049,601.68
Exportincentives	83,961,688.97	7,801,607.77
Land-relatedrefund	543,594.60	543,594.60
Taxrebate	62,702,274.58	16,848,851.19
Other	12,467,094.54	6,730,455.66

68.Investmentincome

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Long-termequityinvestmentincome accountedforusingtheequitymethod	24,799,841.42	-36,548,318.18
Investmentincomefromdisposaloflong-term equityinvestment	1,723,373.00	-11,293,177.89
Investmentincomefromheld-for-trading financialassetsduringholdingperiod	508,055,516.99	129,978,951.36
Investmentincomefromdisposalof held-for-tradingfinancialassets		956,475.00
Incomefromwealthmanagement	113,778,334.95	89,722,710.32
Total	648,357,066.36	172,816,640.61

ItemAmountrecognized in thecurrentperiodAmountrecognized in thepriorperiod

Otherdescriptions:

69.Netexposurehedging income

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Otherdescriptions:

70.Incomefromchangesin fairvalue

In RMB

Sourcesofincomefromchangesinfairvalue	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Held-for-tradingfinancialassets	329,044,852.43	801,205.01
Including:Incomefromchangesin fairvalueofderivativefinancial instruments	329,044,852.43	801,205.01
Total	329,044,852.43	801,205.01

Otherdescriptions:

71.Impairmentlossesofcredit

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Baddebtlossofotherreceivables	-852,545.23	176,788.76
Baddebtlossofaccountsreceivable	-7,737,455.44	-6,629,761.72
Total	-8,590,000.67	-6,452,972.96

Otherdescriptions:

72.Impairmentlossesofassets

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
II.Lossofinventorydepreciationand impairmentlossofcontractperformance cost	-60,363,851.75	-23,067,157.13
V.Impairmentlossoffixedassets	-78,925,059.30	-57,575,936.71
Total	-139,288,911.05	-80,643,093.84

Otherdescriptions:

73.Incomefromdisposalofassets

In RMB

Sourcesofincomefromassetdisposal	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Lossondisposaloffixedassets	-2,309,694.02	9,716,496.38

74.Non-operating income

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod	Amountincludedinnon-recurringprofitorlossfortheperiod
Incomefromcompensationfor breachofcontract	4,109,194.81	121,971.25	4,109,194.81
Incomefromassetretirement	7,173,590.23	1,161,945.28	7,173,590.23
Other	10,649,503.20	16,831,856.05	10,649,503.20
Total	21,932,288.24	18,115,772.58	21,932,288.24

Governmentgrantsincluded in currentprofitorloss:

In RMB

Grantitem	Granter	Reasonsforgrant	Natureandtype	Whetherthesubsidyaffecttheprofitorlossofthecurrentyear	Whetheritisaspecialgrant	Amountinthecurrentperiod	Amountinthepriorperiod	Relatedtoasset/income

Otherdescriptions:

75.Non-operating expenses

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod	Amountincludedinnon-recurringprofitorlossfortheperiod
Externaldonation	8,826,883.90	1,290,000.00	8,826,883.90
Assetretirementloss	42,346,561.68	119,223,122.31	42,346,561.68
Compensation,liquidated damagesandfines	368,635.63	1,007,227.02	368,635.63
Other	2,414,711.57	6,104,008.54	2,414,711.57
Total	53,956,792.78	127,624,357.87	53,956,792.78

Otherdescriptions:

76.Incometax expenses

(1)Incometax expenses

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Currentincometaxexpense	486,267,875.03	603,245,275.25
Deferredincometaxexpense	158,497,053.67	104,508,599.40
Total	644,764,928.70	707,753,874.65

(2)Reconciliation ofincometax expensesto theaccounting profit

In RMB

Item	Amountrecognizedinthecurrentperiod
Totalprofit	8,135,779,664.12
Incometaxexpensecalculatedbasedonstatutory/applicabletax rate	1,220,366,949.59
Effectofdifferenttaxratesofsubsidiariesoperatinginother jurisdictions	-233,899,728.11
Effectofadjustmentonincometaxforpriorperiod	-23,616,326.73
Effectofnon-taxableincome	-4,206,425.06
Effectofnon-deductiblecost,expenseandloss	36,490,531.87
Effectofutilizingdeductiblelossnotrecognizedfordeferredtax assetsforpriorperiod	-36,678,455.90
Effectofdeductibletemporarydifferenceordeductiblelossnot	t 130,186,654.90
recognizedfordeferredtaxassetsforthecurrentperiod
Changesinthebalanceofdeferredincometaxassets/liabilities atthebeginningoftheperiodduetotaxrateadjustment	-4,851,247.48
AdditionaldeductionofR&Dexpenses	-252,505,793.73
Other	-186,521,230.65
Incometaxexpenses	644,764,928.70

Otherdescriptions

77.Othercomprehensiveincome

Seethenotesfordetails.

78.Itemsin thecash flowstatement

(1)Othercash received related to operating activities

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Specialsubsidiesandgrants	620,035,223.62	276,807,077.07
Leaseincome	58,450,087.37	14,527,054.49
Interestincome	144,116,091.77	100,065,571.29
Non-operatingincome	14,757,798.01	16,953,827.30
Recoveryofcurrentaccountsand disbursements	341,220,838.10	319,848,015.48
Total	1,178,580,038.87	728,201,545.63

Descriptionson othercash received related to operating activities:

(2)Othercash paid related to operating activities

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Sellingexpenses	171,690,889.32	218,523,879.72
Generalexpenses	812,592,804.46	414,496,105.23
R&Dexpenses	971,330,641.74	2,032,615,354.97
Non-operatingexpenses	11,610,231.10	8,401,235.56
Inter-companytransactions	70,545,074.10	47,526,059.37
Handlingcharges	39,620,655.76	27,860,572.98
Other	47,051,077.53
Total	2,124,441,374.01	2,749,423,207.83

Descriptionson othercash paid related to operating activities:

(3)Othercash received related to investing activities

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Descriptionson othercash received related to investing activities:

(4)Othercash paid related to investing activities

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Descriptionson othercash paid relating to investing activities:

(5)Othercash received related to financing activities

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Short-termfinancingbonds	1,500,000,000.00	500,000,000.00
Convertiblebonds	2,985,600,000.00
Total	4,485,600,000.00	500,000,000.00

Descriptionson othercash received related to financing activities:

(6)Othercash paid related to financing activities

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Financingcharges	14,511,270.50	12,066,213.47
Total	14,511,270.50	12,066,213.47

Descriptionson othercash paid related to financing activities:

79.Supplementary information to cash flowstatement

(1)Supplementary information to cash flowstatement

In RMB

Supplementaryinformation	Currentperiod	Priorperiod
1．Reconciliationofnetprofittocashflow fromoperatingactivities:	--	--
Netprofit	7,491,014,735.42	4,927,424,927.20
Add:Provisionforimpairmentlossesof	147,878,911.72	87,096,066.80
assets
Depreciationoffixedassets, depletionofoilandgasassets, depreciationofbearerbiological assets	2,212,448,100.25	1,485,838,229.86
Depreciationofrightofuseassets	0.00	0.00
Amortizationofintangibleassets	66,781,202.42	32,620,359.24
Amortizationoflong-termprepaid expenses	137,587,798.08	152,561,855.90
Lossfromdisposaloffixedassets, intangibleassetsandotherlong-termassets (“-”meansincome)	2,309,694.02	-9,716,496.38
Lossfromfixedassetsretirement (“-”meansincome)	34,858,852.91	108,508,845.97
Lossfromchangesinfairvalue (“-”meansincome)	-329,044,852.43	-801,205.01
Financialexpenses(“-”means income)	394,589,818.16	364,595,633.11
Investmentloss(“-”means income)	-648,357,066.36	-172,816,640.61
Decreaseindeferredincometax assets(“-”meansincrease)	-216,359,243.84	-47,784,054.83
Increaseindeferredincometax liabilities(“-”meansdecrease)	367,907,819.95	172,570,861.10
Decreaseininventories(“-” meansincrease)	-5,549,633,761.96	-2,974,217,328.29
Decreaseinoperatingreceivables (“-”meansincrease)	-1,149,269,162.66	-2,538,757,065.48
Increaseinoperatingaccounts payable(“-”meansdecrease)	3,910,498,640.37	5,878,864,185.75
Other
Netcashflowfromoperating activities	6,873,211,486.05	7,465,988,174.33
2.Significantinvestingandfinancing activitiesthatdonotinvolvecashreceipts andpayments:	--	--
Conversionofdebtintocapital
Convertiblebondsduewithinoneyear
Fixedassetsacquiredunderfinance leases
3.Netchangesincashandcashequivalents:	--	--
Closingbalanceofcash	10,464,804,451.34	6,147,339,924.26
Less:Openingbalanceofcash	6,147,339,924.26	3,809,520,108.33
Add:Closingbalanceofcashequivalents
Less:Openingbalanceofcash equivalents
Netincreaseincashandcashequivalents	4,317,464,527.08	2,337,819,815.93

(2)Netcash paid to acquiresubsidiariesfortheperiod

In RMB

	Amount
Cashorcashequivalentspaidincurrentperiodforbusiness combinationincurredincurrentperiod	92,936,975.09
Including:	--
CyberAcoustics,LLC(USA)	29,259,430.49
TaiqiaoInvestmentCo.,Ltd.	63,677,544.60
Less:Cashandcashequivalentsheldbysubsidiariesatthedateof purchase	9,039,441.34
Including:	--
CyberAcoustics,LLC(USA)	8,202,381.74
TaiqiaoInvestmentCo.,Ltd.	837,059.60
Including:	--
Netcashpaidtoacquiresubsidiaries	83,897,533.75

Otherdescriptions:

(3)Netcash received fromdisposalofsubsidiariesin thecurrentperiod

In RMB

	Amount
Cashorcashequivalentsreceivedfromdisposalofsubsidiariesin thecurrentperiod	63,942,000.00
Including:	--
LuxsharePrecisionIndustry(Xi’an)Co.,Ltd.	63,942,000.00
Less:Cashandcashequivalentsheldbysubsidiariesonthedateof lossofcontrol	1,260,376.76
Including:	--
LuxsharePrecisionIndustry(Xi’an)Co.,Ltd.	1,260,376.76
Including:	--
LuxsharePrecisionIndustry(Xi’an)Co.,Ltd.	62,681,623.24

Otherdescriptions:

(4)Composition ofcash and cash equivalents

In RMB

Item	ClosingBalance	OpeningBalance
I.Cash	10,464,804,451.34	6,147,339,924.26
Including:Cashonhand	9,919,560.76	594,825.70
Bankdepositsavailableforpaymentat anytime	10,454,884,890.58	6,146,745,098.56
III.Closingbalanceofcashandcash equivalents	10,464,804,451.34	6,147,339,924.26

Otherdescriptions:

80.Notesto itemsin statementofchangesin owners’equity

Descriptionson thenameof“other”itemsand theamountofadjustmentforclosing balancein thepreviousyear

81.Assetswith restricted ownership orrightofuse

In RMB

Item	Closingbookvalue	Reasonsforrestriction
Cashandbankbalances	63,441,314.59	Issueofnotesandletterofcredit
Notesreceivable	22,490,383.01	FinancingfromPledgeofaccountsreceivable
Fixedassets	1,290,093,659.89	Financingfrommortgageoffixedassets
Intangibleassets	472,877,041.20	Financingfrommortgageofland
Accountsreceivable	786,934,477.55	Financingfrommortgageofaccountsreceivable
Total	2,635,836,876.24	--

Otherdescriptions:

82.Foreign currency monetary items

(1)Foreign currency monetary items

In RMB

Item	Closingbalanceinforeigncurrency	Exchangerate	ClosingbalanceinRMB
Cashandbankbalances	--	--	3,592,636,569.44
Including:USD	523,048,082.79	6.5249	3,412,836,335.19
EUR	351,596.39	8.025	2,821,561.04
HKD	205,300.65	0.8416	172,781.03
JPY	112,221,068.01	0.0632	7,096,411.50
TWD	554,351,920.00	0.2321	128,665,080.63
VND	113,027,017,856.68	0.0003	31,839,710.93
KRW	1,495,890,687.00	0.006	8,970,856.45
GBP	26,302.00	8.8903	233,832.67
Accountsreceivable	--	--	10,818,877,593.73
Including:USD	1,646,938,579.60	6.5249	10,746,109,538.03
EUR	2,516,946.45	8.025	20,198,495.26
HKD
JPY	45,994,723.00	0.0632	2,908,522.30
TWD	178,612,530.00	0.2321	41,455,968.21
VND	27,988,067,376.64	0.0003	7,884,238.58
KRW	10,368,010.00	0.006	62,176.96
GBP	29,094.00	8.8903	258,654.39
Long-termborrowings	--	--	76,010,982.77
Including:USD	9,474,331.41	6.5249	61,819,065.00
EUR
HKD
JPY	224,427,822.00	0.0632	14,191,917.77
Otherreceivables			143,903,073.15
Including:USD	20,485,851.57	6.5249	133,668,132.91
EUR	86,092.19	8.025	690,889.82
JPY	48,484,617.00	0.0632	3,065,973.24
TWD	11,488,729.00	0.2321	2,666,534.00
VND	113,380,803,265.88	0.0003	2,012,287.54
KRW	167,218,480.00	0.006	1,002,809.22
GBP	89,586.00	8.8903	796,446.42
Accountspayable			12,177,427,079.61
Including:USD	1,778,736,848.60	6.5249	11,606,080,063.63
EUR	4,005,846.60	8.025	32,146,919.00
HKD	435,732.59	0.8416	366,729.44
JPY	347,175,945.00	0.0632	21,955,392.12
TWD	45,361,741.00	0.2321	10,528,460.07
VND	1,793,945,485,481.00	0.0003	505,354,443.26
KRW	164,450,302.00	0.006	986,208.46
GBP	997.00	8.8903	8,863.63
Otherpayables			9,156,091.02
Including:USD	460,290.32	6.5249	3,003,348.32
EUR	37,645.77	8.025	302,107.30
JPY	18,338,046.00	0.0632	1,159,624.68
TWD	17,543,598.00	0.2321	4,071,869.10
VND	1,969,478,558.75	0.0003	554,802.11
KRW	10,728,616.00	0.006	64,339.51
Short-termborrowings			2,278,637,441.95
Including:USD	342,815,372.39	6.5249	2,236,836,023.29
TWD	180,100,899.00	0.2321	41,801,418.66

Otherdescriptions:

(2)Descriptions on overseas business entities, including, with respect to significant overseasbusinessentities,disclosure oftheir overseasmain businessplace,functionalcurrency and selectionbasis,and thereasonsforchangesin functionalcurrency (ifany).

□Applicable√N/A

83.Hedging

Disclosureofthequalitativeand quantitativeinformation ofthehedged items,relevanthedging instrumentsand hedgedrisksaccording to thehedging categories:

84.Governmentgrants

(1)Basicinformation ofgovernmentgrants

In RMB

Category	Amount	Presentationitem	Amountincludedincurrentprofitorloss
Specialfundsfortechnological transformationandindustrial upgrading	413,834,324.74	Deferredincome	42,856,630.76
Land-relatedrefund	11,511,657.90	Deferredincome	543,594.60
Financialincentives,grantsand supportfunds	209,265,296.05	Otherincome	209,265,296.05
Exportincentives	83,961,688.97	Otherincome	83,961,688.97
Taxrebate	62,702,274.58	Otherincome	62,702,274.58
Enterprisedevelopmentsupport funds	20,325,926.50	Otherincome	20,325,926.50
R&Dgrants	8,816,360.00	Otherincome	8,816,360.00
Jobsecuritygrants	8,612,979.89	Otherincome	8,612,979.89
Patentgrants	1,196,950.00	Otherincome	1,196,950.00
Others	12,467,094.54	Otherincome	12,467,094.54

(2)Return ofgovernmentgrants

□Applicable√N/A

Otherdescriptions:

85.Others

VIII.Changesin scopeofconsolidation

1.Businesscombination notinvolving enterprisesundercommon control

(1)Businesscombination notinvolving enterprisesundercommon controlin thecurrentperiod

In RMB

Nameofacquiree	Timepointofequityacquisition	Costofequityacquisition	Equityacquisitionratio	Methodofequityacquisition	Acquisitiondate	Basisfordeterminationofacquisitiondate	Incomeoftheacquireefromtheacquisitiondatetotheendoftheperiod	Netprofitoftheacquireefromtheacquisitiondatetotheendoftheperiod
Cyber Acoustics, LLC(USA)	Sep.29,2020	29,259,430.49	70.00%	Businesscombinationnotinvolvingenterprisesundercommon	September29,2020	Obtainmentofcontrol	65,789,078.35	19,672,242.22
				control
Taiqiao Investment Co.,Ltd.	Dec.28,2020	63,677,544.60	100.00%	Businesscombinationnotinvolvingenterprisesundercommoncontrol	December28,2020	Obtainmentofcontrol

Otherdescriptions:

(2)Combination costsand goodwill

In RMB

Combinationcosts	CyberAcoustics,LLC(USA)	TaiqiaoInvestmentCo.,Ltd.
--Cash	29,259,430.49	63,746,133.08
Totalofcombinationcost	29,259,430.49	63,746,133.08
Less:Fairvalueofidentifiablenetassets acquired	29,771,405.57	63,304,537.15
Amountofgoodwill/combinationcostless thantheshareoffairvalueofidentifiable netassetsacquired	-511,975.08	441,595.93

Descriptionson methodsfordetermining thefairvalueofcombination costs,contingentconsiderationsand changes

therein:

Main reasonsfortheformation oflargegoodwill:

Otherdescriptions:

(3)Identifiableassetsand liabilitiesoftheacquireeon theacquisition date

In RMB

	CyberAcoustics,LLC(USA)		TaiqiaoInvestmentCo.,Ltd.
	Fairvalueatacquisitiondate	Bookvalueatacquisitiondate	Fairvalueatacquisitiondate	Bookvalueatacquisitiondate
Assets:	60,732,634.74	60,732,634.74	86,376,261.26	52,512,226.02
Cashandbankbalances	8,202,381.74	8,202,381.74	837,059.60	837,059.60
Accountsreceivable	41,310,619.30	41,310,619.30
Inventories	9,300,395.08	9,300,395.08
Fixedassets	704,232.02	704,232.02
Prepayments	1,215,006.60	1,215,006.60
Long-termequity investment			85,539,201.66	51,675,166.42
Liabilities:	18,202,055.36	18,202,055.36	23,071,724.11	23,071,724.11
Borrowings			18,568,000.00	18,568,000.00
Accountspayable	11,801,245.19	11,801,245.19
Deferredtaxliabilities			807,503.29	807,503.29
Notespayable			3,689,302.38	3,689,302.38
Otherpayables	5,039,783.89	5,039,783.89	6,918.44	6,918.44
Othercurrentliabilities	1,361,026.28	1,361,026.28
Netassets	42,530,579.38	42,530,579.38	63,304,537.15	29,440,501.91
Less:minorityinterest	12,759,173.81	12,759,173.81
Netassetsacquired	29,771,405.57	29,771,405.57	63,304,537.15	29,440,501.91

Methodsfordetermining thefairvalueofidentifiableassetsand liabilities:

Contingentliabilitiesoftheacquireein businesscombination:

Otherdescriptions:

(4)Gains or losses arising fromthe re-measurement ofequity held before the acquisition date atfairvalue

Wherethereisany transaction thatrealizesbusinesscombination step by step through multipletransactionsand obtainscontrolrightin thereporting period

Yes√No

(5)Relevant Descriptions on the combination consideration or the fair value of the identifiableassets and liabilities ofthe acquiree thatcannotbe reasonably determined on the acquisition dateorattheend ofthecurrentperiod

(6)Otherdescriptions

2.Businesscombination involving enterprisesundercommon control

(1)Businesscombination involving enterprisesundercommon controlin thecurrentperiod

In RMB

Nameofcombinedparty	Equityratioobtainedinbusinesscombination	Basisforbusinesscombinationinvolvingenterprisesundercommoncontrol	Combiningdate	Basisfordeterminingthecombinationdate	Incomeofthecombinedpartyfromthebeginningofthecurrentperiodtothecombination	Netprofitofthecombinedpartyfromthebeginningofthecurrentperiodtothecombination	Incomeofthecombinedpartyduringthecomparisonperiod	Netprofitofthecombinedpartyduringthecomparisonperiod
					date	date

Netprofitof

Basisfordeterminingthecombinationdate

the

Equity ratioobtained inbusinesscombination

Nameofcombinedparty

combined

Combiningdate

party during

the

comparison

period

datedate

Otherdescriptions:

(2)Combination costs

In RMB

Combinationcosts

Descriptionson contingentconsiderationsand changestherein:

Otherdescriptions:

(3)Book valueofassetsand liabilitiesoftheacquireeatthecombination date

In RMB


	Combinationdate	Endoflastperiod

Contingentliabilitiesassumed by acquireein businesscombinations:

Otherdescriptions:

3. Counterpurchase

Basicinformation oftransactions,basisforforming areversepurchase,ifassetsand liabilitiesretained by listed companyconstituteabusinessand itsbasis,determination ofcombination cost,adjustmentson and calculation ofequity treated asequity transactions:

4. Disposalofsubsidiaries

Singledisposalofinvestmentsin subsidiaries,i.e.thelossofcontrol

√Yes□No

In RMB

controlDifference

between thelosing controlAmountof

disposalpricevalueDetermination

other

and thesharelosing controlGain orloss

method and

losing controlBasisfor

losing controlBook valueof

ofnetassetsofto thedisposalProportion of

controlFairvalueof

from

main

determining

theresidual

NameofsubsidiaryEquity disposal

priceEquity disposal

ratioEquity disposal

methodTimepointof

residualequity

re-measuremen

assumption for

to equity

thesubsidiary

thetimepoint

equity on the

on thedateof

tofresidual

fairvalueof

atthe

oflosing

dateoflosing

equity atfair

consolidated

residualequity

financial

on thedateof

statementlevel

investment

corresponding

ofinvestment

Luxshare

63,942,000.00100%SoldMay 1,2020Re-election of

Precision

theboard of

-58,000.00

Industry (Xi’

directors

an)Co.,Ltd.

Otherdescriptions:

Whetherthereisany situation wheretheinvestmentin subsidiariesisdisposed step by step through multipletransactionsand thecontrolislostin thecurrentperiod

□Yes√No

5. Changesin consolidation scopeforotherreasons

Descriptionson changesin thescopeofconsolidation forotherreasons(such astheestablishmentofnewsubsidiaries,

liquidation ofsubsidiaries,etc.)and related situations:

The Company’sscopeofconsolidation which ischanged dueto newly established subsidiariesin2020 isasfollows:

Company	Dateofestablishment

LuxshareLiantao (India)Co.,Ltd.August31,2020

LuxsharePrecision Industry (Jiangsu)Co.,Ltd.April29,2020

Suzhou Liantao ElectronicCo.,Ltd.March 24,2020

Xingning LuxshareElectronicCo.,Ltd.May 13,2020

September30,2020

Changshu Luxshare IndustrialInvestmentManagementCo.,Ltd.

November4,2020

Kunshan Luxshare Enterprise Management DevelopmentCo.,Ltd.

November25,2020

KunshanLuxshareCorporateManagement Services

Partnership (Limited Partnership)

LuxshareIntelligentEquipment(Kunshan)Co.,Ltd.December29,2020

LuxshareSmartTechnology (Rugao)Co.,Ltd.December1,2020

6.Others

IX.Equity in OtherEntities

1.Equity in subsidiaries

(1)Composition oftheenterprisegroup

Nameof subsidiary	Mainplaceofbusiness	Placeofregistration	Natureofbusiness	Shareholdingratio		Methodofacquisition
Nameof subsidiary	Mainplaceofbusiness	Placeofregistration	Natureofbusiness	Direct	Indirect	Methodofacquisition
Luxshare Precision TechnologyCo., Ltd.	HongKong	HongKong	Investmentconsulting	100%		Establishment
TaiwanLuxshare PrecisionLimited	Taiwan	Taiwan	Marketingbusiness		100%	Establishment
LuxshareICT, Inc.	USA	USA	Marketingbusiness		100%	Establishment
Luxshare-ICT EuropeLimited	UK	UK	Marketingbusiness		100%	Establishment
LUXSHAREICT INTERNATION ALB.V.	Netherlands	Netherlands	Marketingbusiness		100%	Establishment
Luxshare PrecisionLimited	HongKong	HongKong	Trade	100%		Establishment
Yunding TechnologyCo., Ltd.	HongKong	HongKong	Investmentconsulting		100%	Establishment
HuzhouJiuding ElectronicCo., Ltd.	Huzhou	Huzhou	Processingandmanufacturing		100%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
Luxshare-ICT (Japan)	Japan	Japan	Marketingbusiness		80%	Establishment
Korea LuxshareICTCo., Ltd	Korea	Korea	Marketingbusiness		100%	Establishment
Luxshare-ICT (India)	India	Chennai	Processingandmanufacturing		100%	Establishment
ICT-LANTO LIMITED(HK)	HongKong	HongKong	Trade	100%		Businesscombinationnotinvolvingenterprisesundercommoncontrol
SpeedTechCorp.	Taiwan	Taiwan	Processingand		30.65%	Business
			manufacturing			combinationnotinvolvingenterprisesundercommoncontrol
CastleRock,Inc.	Taiwan	XinbeiCity	Processingandmanufacturing		12.26%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
CyberAcoustics, LLC(USA)	Taiwan	Taiwan	Processingandmanufacturing		21.46%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
Taiqiao InvestmentCo., Ltd.	Taiwan	Taiwan	Investmentconsulting		30.65%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
Luxshare-ICT (Vietnam) Limited	Vietnam	Vietnam	Processingandmanufacturing		100%	Establishment
Luxshare Precision (Yunzhong)Co., Ltd.	Vietnam	Vietnam	Processingandmanufacturing		100%	Establishment
Luxshare Precision(Yi’an) Co.,Ltd.	Vietnam	Vietnam	Processingandmanufacturing	100%		Establishment
Kunshan Luxshare PrecisionIndustry Co.,Ltd.	Kunshan	Kunshan	Processingandmanufacturing		100%	Establishment
Kunshan Luxshare PrecisionMould Co.,Ltd.	Kunshan	Kunshan	Processingandmanufacturing		100%	Establishment
Luxshare PrecisionIndustry	Baoding	Baoding	Processingandmanufacturing		100%	Establishment
(Baoding)Co., Ltd.
Dongguan Luxshare Smart-Link Electronic TechnologyCo., Ltd.	Dongguan	Dongguan	Processingandmanufacturing		100%	Establishment
Xuancheng Luxshare PrecisionIndustry Co.,Ltd.	Anhui	Xuancheng	Processingandmanufacturing		100%	Establishment
Luxsahre Electronic (Shanghai)Co., Ltd.	Shanghai	Shanghai	Processingandmanufacturing		88%	Establishment
KunshanLanto Electronic Limited	Kunshan	Kunshan	Processingandmanufacturing	100%		Businesscombinationnotinvolvingenterprisesundercommoncontrol
BozhouLanto Electronic Limited	Bozhou	Bozhou	Processingandmanufacturing		100%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
BozhouXuntao Electronic Limited	Bozhou	Bozhou	Processingandmanufacturing		100%	Establishment
SuiningLuxshare PrecisionIndustry Co.,Ltd.	Suining	Suining	Processingandmanufacturing		100%	Establishment
Meite Technology (Suzhou)Co., Ltd.	Suzhou	Suzhou	Processingandmanufacturing		51%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
BeijingLuxshare Acoustic	Beijing	Beijing	Processingandmanufacturing		100%	Establishment
TechnologyCo., Ltd.
Luxshare PrecisionIndustry (Shanxi)Co.,Ltd.	Changzhi	Changzhi	Processingandmanufacturing		100%	Establishment
Wan’anXiexun ElectronicCo., Ltd.	Wan’an	Wan’an	Processingandmanufacturing	100%		Establishment
Ji’anJizhou districtLuxshare ElectronicCo., Ltd.	Ji’an	Ji’an	Processingandmanufacturing	100%		Establishment
XiexunElectronic (Ji’an)Co.,Ltd.	Ji’an	Ji’an	Processingandmanufacturing	100%		Businesscombinationinvolvingenterprisesundercommoncontrol
ASAP Technology (Jiangxi)Co., Ltd.	Ji’an	Ji’an	Processingandmanufacturing	100%		Establishment
YongxinCounty Boshuo ElectronicsCo., Ltd.	YongxinCounty	YongxinCounty	Processingandmanufacturing		100%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
XinyuXiexun ElectronicCo., Ltd.	Xinyu	Xinyu	Processingandmanufacturing		100%	Establishment
JiangxiASAP ElectronicCo., Ltd.	Ji’an	Ji’an	Processingandmanufacturing		100%	Establishment
FujianJKWiring SystemsCo., Ltd..	Fuzhou	Fuzhou	Processingandmanufacturing	55%		Businesscombinationnotinvolvingenterprisesundercommoncontrol
JianouJKWiring SystemsCo.,Ltd.	Jian’ou	Jian’ou	Processingandmanufacturing		55%	Establishment
Xingning Luxshare TechnologyCo., Ltd.	Xingning	Xingning	Processingandmanufacturing		90.00%	Establishment
Luxshare Electronic Technology (Kunshan)Co., Ltd.	Kunshan	Kunshan	Processingandmanufacturing	100%		Businesscombinationnotinvolvingenterprisesundercommoncontrol
Shenzhen Luxshare Acoustics TechnologyLtd.	Shenzhen	Shenzhen	Processingandmanufacturing	100%		Establishment
Fengshun Luxshare PrecisionIndustry Co.,Ltd.	Fengshun	Fengshun	Processingandmanufacturing	100%		Establishment
Luxshare PrecisionIndustry (Chuzhou),Ltd.	Chuzhou	Chuzhou	Processingandmanufacturing	100%		Establishment
SuK Kunststofftechnik GmbH	Germany	Germany	Processingandmanufacturing	100%		Businesscombinationnotinvolvingenterprisesundercommoncontrol
SUKPLASTICS	Romania	Romania	Processingandmanufacturing		100%	Establishment
Luxshare Automation (Jiangsu)Ltd.	Kunshan	Kunshan	Processingandmanufacturing	70.00%		Businesscombinationnotinvolvingenterprisesundercommoncontrol
Dongguan Luxshare PrecisionIndustry Co.,Ltd.	Dongguan	Dongguan	Processingandmanufacturing	100%		Establishment
Guangdong LuxshareMerry ElectronicCo.,	Dongguan	Dongguan	Processingandmanufacturing		51%	Establishment
Ltd.
MeilvElectronic (Huizhou)Co., Ltd.	Huizhou	Huizhou	Processingandmanufacturing		51%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
MeilvElectronics (Shanghai)Co., Ltd.	Shanghai	Shanghai	Trade		51%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
JiangxiLuxshare Intelligent ManufactureCo., Ltd.	Ji’an	Ji’an	Processingandmanufacturing	100.00%		Establishment
Luxshare Technologies Limited	HongKong	HongKong	Processingandmanufacturing		90.00%	Establishment
Shenzhen Luxshare StandardCo., Ltd.	Shenzhen	Shenzhen	Processingandmanufacturing	70%		Establishment
Luxshare StandardLimited (HK)	HongKong	HongKong	Processingandmanufacturing		70%	Establishment
Luxshare PrecisionIndustry (Enshi)Co.,Ltd.	Enshi	Enshi	Processingandmanufacturing	100%		Establishment
Luxshare PrecisionIndustry (Suzhou)Co., Ltd.	Suzhou	Suzhou	Processingandmanufacturing	100%		Establishment
Luxshare Intelligent Manufacture (Zhejiang)Co., Ltd.	Jiashan	Jiashan	Processingandmanufacturing	100%		Establishment
Luxshare Intelligent	Changshu	Changshu	Processingandmanufacturing	100%		Establishment
Manufacture Technology (Changshu)Co., Ltd.
Dongguan Luxshare TechnologyCo., Ltd.	Dongguan	Dongguan	Processingandmanufacturing	90%		Establishment
DonguanXuntao ElectronicCo., Ltd.	Dongguan	Dongguan	Processingandmanufacturing		90.00%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
Luxshare-ICT International Cable,Inc.(USA)	USA	USA	Processingandmanufacturing		90.00%	Establishment
Kunshan-Luxshar eRFTechnology Co.,Ltd.	Kunshan	Kunshan	Processingandmanufacturing		90.00%	Establishment
WuxiHuihong ElectronicCo., Ltd.	Wuxi	Wuxi	Processingandmanufacturing		62.07%	Businesscombinationnotinvolvingenterprisesundercommoncontrol
LuxshareLiantao (India)Co.,Ltd.	India	India	Processingandmanufacturing		100.00%	Establishment
Luxshare PrecisionIndustry (Jiangsu)Co., Ltd.	Liyang	Liyang	Processingandmanufacturing		100.00%	Establishment
SuzhouLiantao ElectronicCo., Ltd.	Suzhou	Suzhou	Processingandmanufacturing		100%	Establishment
Xingning Luxshare TechnologyCo., Ltd.	Xingning	Xingning	Processingandmanufacturing		100%	Establishment
Changshu Luxshare	Changshu	Changshu	Investmentconsulting	100.00%		Establishment
Industrial Investment ManagementCo., Ltd.
Kunshan Luxshare Enterprise Management DevelopmentCo., Ltd.	Kunshan	Kunshan	Investmentconsulting	100.00%		Establishment
Kunshan Luxshare Corporate Management Services Partnership (Limited Partnership)	Kunshan	Kunshan	Investmentconsulting		9.09%	Establishment
Luxshare Intelligent Equipment (Kunshan)Co., Ltd.	Kunshan	Kunshan	Processingandmanufacturing		9.46%	Establishment
LuxshareSmart Technology (Rugao)Co.,Ltd.	Rugao	Rugao	Processingandmanufacturing	100.00%		Establishment

Descriptionson thedifferencebetween theshareholding ratio and thevoting rightratio in thesubsidiary:

(1)Kunshan Luxshare Corporate ManagementServicesPartnership (Limited Partnership)was jointly established by Kunshan Luxshare Enterprise ManagementDevelopmentCo.,Ltd., a subsidiary of the Company, and Kunshan Jinhong Urban-Rural IntegrationConstruction Co., Ltd. According to the partnership agreement, Kunshan LuxshareEnterprise ManagementDevelopmentCo.,Ltd.acted asthe generalpartner,subscribing acapitalofRMB200 million while Kunshan Jinhong Urban-RuralIntegration ConstructionCo.,Ltd.acted asthe limited partner,subscribing a capitalofRMB2 billion.The generalpartneristhe managing partnerofthe partnership.In respectofpartnership affairpractice,the managing partner has the exclusive right to manage and control the partnership'soperation,investmentbusiness and otheraffairs.Forprofitdistribution,the subsidiary ofthe Company isentitled to enjoy 80%ofthe income distribution while the limited partnerhasthe rightto enjoy the remaining proportion.Since the subsidiary ofthe Company cancontrolthe partnership,Kunshan Luxshare Corporate ManagementServices Partnership(Limited Partnership)isincluded in thescopeofconsolidation.

(2)Luxshare IntelligentEquipment(Kunshan)Co.,Ltd.wasestablished on December29,2020, whose shares were directly held by Kunshan Luxshare Corporate ManagementServices Partnership (Limited Partnership)at a proportion of 99.59%and KunshanLuxshare Enterprise Management Development Co., Ltd. At a proportion of 0.41%.

Therefore,asthe Company indirectly controlsLuxshare IntelligentEquipment(Kunshan)Co.,Ltd.through its subsidiary,Luxshare IntelligentEquipmentis included in the scope

ofconsolidation.

Basisforholding halforlessvoting rightsbutstillcontrolling theinvestee,and holding morethan halfofthevoting rightsbutnotcontrolling theinvestee:

Basisforthecontrolofsignificantstructured entitiesincluded in theconsolidation scope:

Basisfordetermining whetheracompany isan agentoraprincipal:

Otherdescriptions:

(2)Significantnon-wholly-owned subsidiaries

In RMB

Nameofsubsidiary	Shareholdingratioofminorityshareholders	Profitorlossattributabletominorityshareholdersinthecurrentperiod	Balanceofminorityinterestattheendoftheperiod
FujianJKWiring SystemsCo.,Ltd..	45.00%	1,310,180.65	64,904,247.88
LuxshareAutomation (Jiangsu)Ltd.	30.00%	24,661,723.62	97,100,366.71
MeilvElectronic (Huizhou)Co.,Ltd.	49.00%	56,336,040.40	208,696,572.30
MeiteTechnology (Suzhou)Co.,Ltd.	49.00%	51,217,417.28	718,973,436.87
SpeedTechCorp.	69.35%	114,917,157.75	503,825,923.38

Descriptionson thedifferencebetween theshareholding ratio ofminority shareholdersand theirvoting rightratio in thesubsidiary:

Otherdescriptions:

(3)Main financialinformation ofsignificantnon-wholly-owned subsidiaries

In RMB

Nameofsubsidiary	ClosingBalance						OpeningBalance
Nameofsubsidiary	Currentassets	Non-currentassets	Totalassets	Currentliabilities	Non-currentliabilities	Totalliabilities	Currentassets	Non-currentassets	Totalassets	Currentliabilities	Non-currentliabilities	Totalliabilities
FujianJK Wiring Systems Co.,Ltd..	163,428,973.90	37,881,649.81	201,310,623.71	56,639,528.54	439,433.25	57,078,961.79	195,911,115.77	45,070,000.83	240,981,116.60	69,373,435.60	421,469.85	69,794,905.45
Luxshare Automatio n(Jiangsu) Ltd.	632,811,583.17	25,327,104.17	658,138,687.34	334,035,875.87	434,922.47	334,470,798.34	365,699,394.70	20,156,759.83	385,856,154.53	147,209,913.17	512,243.75	147,722,156.92
Meilv Electronic (Huizhou) Co.,Ltd.	922,468,906.46	91,289,271.11	1,013,758,177.57	580,109,436.01	7,737,369.47	587,846,805.48	555,228,066.65	101,357,640.18	656,585,706.83	339,621,169.30	5,870,256.47	345,491,425.77
Meite Technolog y(Suzhou) Co.,Ltd.	1,181,697,694.14	1,409,645,063.39	2,591,342,757.53	1,092,806,110.91	31,243,918.32	1,124,050,029.23	1,039,072,803.07	1,467,179,953.72	2,506,252,756.79	1,082,678,769.48	61,727,275.55	1,144,406,045.03
SpeedTech Corp.	2,162,130,004.28	1,160,247,787.78	3,322,377,792.06	1,950,655,927.00	145,273,694.52	2,095,929,621.52	1,420,474,318.85	808,337,644.36	2,228,811,963.21	1,255,943,210.02	111,971,150.25	1,367,914,360.27

In RMB

Nameofsubsidiary	Amountrecognizedinthecurrentperiod				Amountrecognizedinthepriorperiod
Nameofsubsidiary	Operatingincome	Netprofits	Totalcomprehensiveincomes	Cashflowfromoperatingactivities	Operatingincome	Netprofits	Totalcomprehensiveincomes	Cashflowfromoperatingactivities
FujianJK Wiring SystemsCo., Ltd..	250,073,562.76	2,911,512.54	-26,954,549.23	16,729,734.42	435,843,684.40	14,072,412.76	15,066,877.44	11,309,541.52
Luxshare Automation (Jiangsu)Ltd.	766,700,321.47	82,205,745.40	85,533,891.39	-31,470,651.03	427,622,084.75	21,901,190.33	30,898,872.88	39,812,300.80
Meilv Electronic (Huizhou)Co., Ltd.	1,352,111,265.87	114,971,511.03	114,817,091.01	196,105,592.33	904,734,269.95	73,548,747.03	74,051,973.77	166,955,738.11
Meite Technology (Suzhou)Co., Ltd.	2,510,006,534.54	104,525,341.39	105,446,016.56	413,323,812.87	2,794,200,149.66	239,415,414.34	240,169,329.08	118,033,727.51
SpeedTech Corp.	3,463,332,781.62	327,841,387.24	365,550,567.60	437,331,860.62	2,585,053,555.74	150,745,551.92	115,397,822.61	165,028,772.02

165,028,772.

SpeedTechCorp.

Otherdescriptions:

(4)Major restrictions on the use of enterprise group assets and repayment of enterprise groupdebts

(5)Financial support or other support provided to structured entities included in the scope ofconsolidated financialstatements

Otherdescriptions:

2.Transactionsin which the share ofowners’equity in the subsidiary changesand stillcontrolsthesubsidiary

(1)Descriptionson changesin thesharesofowners’equity in subsidiaries

(2)Impact of transactions on minority interest and owners’equity attributable to the parentcompany

In RMB

Otherdescriptions

3.Equity in jointventuresorassociates

(1)Significantjointventuresorassociates

Nameofjoint ventureor associate	Mainplaceofbusiness	Placeofregistration	Natureofbusiness	Shareholdingratio		Accountingtreatmentofinvestmentinjointventureorassociate
Nameofjoint ventureor associate	Mainplaceofbusiness	Placeofregistration	Natureofbusiness	Direct	Indirect	Accountingtreatmentofinvestmentinjointventureorassociate

Descriptionson thedifferencebetween theshareholding ratio and thevoting rightratio in thejointventureorassociate:Basisforholding lessthan 20%ofthe voting rightsbuthaving significantinfluence,orholding 20%ormore ofthe votingrightsbutwithoutsignificantinfluence:

(2)Main financialinformation ofsignificantjointventures

In RMB

	ClosingBalance/Amountrecognizedinthecurrentperiod	OpeningBalance/Amountrecognizedinthepriorperiod

Otherdescriptions

(3)Main financialinformation ofsignificantassociates

In RMB

	ClosingBalance/Amountrecognizedinthecurrentperiod	OpeningBalance/Amountrecognizedinthepriorperiod

Otherdescriptions

(4)Summary financialinformation ofinsignificantjointventuresand associates

In RMB

	ClosingBalance/Amountrecognizedinthecurrentperiod	OpeningBalance/Amountrecognizedinthepriorperiod
Jointventures:	--	--
Totalbookvalueofinvestment	86,236,939.01	77,614,874.91
Totalamountofthefollowingitems calculatedaccordingtoshareholdingratio	--	--
--Netprofits	17,941,174.66	22,544,135.76
--Othercomprehensiveincome	-374,657.21	-2,266,528.48
--Totalcomprehensiveincomes	17,566,517.45	20,277,607.28
Associates:	--	--
Totalbookvalueofinvestment	1,122,303,394.28	225,435,705.19
Totalamountofthefollowingitems calculatedaccordingtoshareholdingratio	--	--
--Netprofits	6,858,666.76	-59,092,453.94
--Othercomprehensiveincome	-697,543.98
--Totalcomprehensiveincomes	6,161,122.78	-59,092,453.94

Otherdescriptions

(5)Descriptions on significantrestrictions on the ability ofjointventures or associates to transferfundsto theCompany

(6)Excesslossofjointventuresorassociates

In RMB

Nameofjointventureorassociate	Cumulativeunrecognizedlossesaccumulatedinpreviousperiod	Unrecognizedlossesinthecurrentperiod(ornetprofitsharedinthecurrentperiod)	Cumulativeunrecognizedlossesattheendoftheperiod

lossesattheend oftheperiod

Otherdescriptions

(7)Unconfirmed commitmentsrelated to investmentin jointventures

(8)Contingentliabilitiesrelated to investmentin jointventuresorassociates

4.Significantjointoperations

Nameofjoint operation	Mainplaceofbusiness	Placeofregistration	Natureofbusiness	Shareholdingratio/share
Nameofjoint operation	Mainplaceofbusiness	Placeofregistration	Natureofbusiness	Direct	Indirect

Descriptionson thedifferencebetween theshareholding ratio orshareand thevoting rightsratio in thejointoperation:

Basisforclassifying aseparateentity into jointoperation:

Otherdescriptions

5.Equity in structured entitiesnotincluded in theconsolidated financialstatements

Descriptionson structured entitiesnotincluded in theconsolidated financialstatements:

6.Others

X.RisksAssociated with FinancialInstruments

1.Creditrisks

Creditrisks referto the risks thatone party to a financialinstrumentsuffers financiallosses due to thefailure of the other party to performits obligations. The customer credit risks mainly faced by theCompany come fromcreditsale.Before signing a newcontract,the Company willassessthe creditrisksgenerated by newcustomers fromperspectives such as externalcreditrating and,in some cases,bankcreditcertification (when the same isavailable).The Company hasa creditlimit,which isthe maximumamountwithoutadditionalapproval,foreach customer.

The Company ensures that its overall credit risk is within the controllable range through quarterlymonitoring of credit rating of existing customers and monthly reviewof aging analysis of accountsreceivable.Customers are grouped according to their creditcharacteristics when the creditrisks fromthemare monitored.Customers rated as“high risk”willbe placed on the restricted customer list,andonly with additionalapprovalcan the Company sellthemon creditin the future period,otherwise theymustberequired to pay thecorresponding amountin advance.

2.Marketrisks

Marketrisksoffinancialinstruments referto the risks thatthe fairvalue orfuture cash flowoffinancialinstrumentswillfluctuate due to marketprice changes,including exchange rate risk,interestrate risk andotherpricerisks.

(1)Interestraterisk

Interestrate risk refers to the risk thatthe fair value or future cash flowof financialinstruments willfluctuate due to the change in marketinterestrate.The interestrate risk faced by the Company mainlycomesfromthe long-termand short-termborrowingsfrombanks.The Company,underitscurrentpolicy,seeks to borrowin USDwith a lower loan interest rate.In order to obtain loans,the Company hasprovided guarantee for its wholly-owned overseas subsidiaries ICT-Lanto Limited and ICT-LantoLimited foroverseasfinancing.

(2)Exchangeraterisk

Exchange rate risk refers to the risk thatthe fairvalue offinancialinstruments orfuture cash flowwillfluctuate due to the change in foreign exchange rate.The Company tries to match foreign currencyincome with foreign currency expenditure to reduce exchange rate risk.In addition,the Company hassigned forward foreign exchangecontractsto avoid exchangeraterisk.

(3)Otherpricerisks

The Company holdsequity investmentsofotherlisted companies,and the managementbelievesthatthemarketpricerisksfaced by theseinvestmentactivitiesisacceptable.

Theequity investmentsoflisted companiesheld by theCompany arepresented asfollows:

Item	Closingbalance	Balanceattheendoflastyear
Otherinvestmentsinequityinstruments	114,221,319.04	170,733,150.00
Total	114,221,319.04	170,733,150.00

3.Liquidity risks

Liquidity risks refer to,with respectto an enterprise,the risks of capitalshortage tothe enterprisewhen itfulfillsitsobligation ofsettlementby cash orotherfinancialassets.Itisthe Company’spolicy toensure thatthere is sufficientcash to pay its debts as they falldue.The liquidity risks are controlled bythe financial department of the Company in a unified manner. By monitoring the cash balance,marketable securities thatcan be realized atany time and rolling forecastof cash flowin the next12months,the financialdepartmentensuresthatthe Company hassufficientfundsto repay debtsunderallreasonableforecasts.

XI.DisclosureofFairValue

1.Closing fairvalueofassetsand liabilitiesmeasured atfairvalue

In RMB

Item	Closingbalanceoffairvalue
Item	LevelI	LevelII	LevelIII	Total
I.Continuousfairvalue measurement	--	--	--	--
(I)Held-for-trading financialassets		305,388,419.95	2,854,676,050.46	3,160,064,470.41
1.Financialassetsatfair valuethroughprofitor loss		305,388,419.95	2,854,676,050.46	3,160,064,470.41
(3)Derivativefinancial assets		305,388,419.95		305,388,419.95
(III)Otherequity instrumentinvestments	114,221,319.04		23,853,252.52	138,074,571.56
Wealthmanagement products			2,854,676,050.46	2,854,676,050.46
Totalassetscontinuously measuredatfairvalue	114,221,319.04	305,388,419.95	2,878,529,302.98	3,298,139,041.97
II.Non-continuousfair valuemeasurement	--	--	--	--

2.Basisfor determining the marketprice ofthe itemscontinuously and notcontinuously measuredatfairvalueatlevelI

LevelIinputs are quoted marketprice (unadjusted)in an active marketforan identicalassetorliabilityavailableatthedateofmeasurement.

3.Valuation technology and qualitative and quantitative information ofimportantparametersusedin theitemscontinuously and notcontinuously measured atfairvalueatlevelII.

LevelIIinputsareinputs,otherthan inputswithin LevelI,thatareobservablefortheassetorliability.

4.Valuation technology and qualitative and quantitative information ofimportantparametersusedin theitemscontinuously and notcontinuously measured atfairvalueatthethird level

LevelIIIinputsareunobservableinputsfortheassetorliability.

5.Adjustment information between the opening book value and the closing book value,and thesensitivity analysisofunobservable parametersforitemscontinuously measured atfair value atthethird level

6.For items continuously measured atfair value,ifthere is conversion between differentlevels inthe current period,the reasons for the conversion and the policy for determining the conversiontimepoint

The fairvalue levelforthe measurementresults is determined by the lowestlevelofthe inputs thataresignificantto thefairvaluemeasurementasawhole.

7.Changesin valuation technology in thecurrentperiod and reasonsforchanges

8.Fairvalueoffinancialassetsand financialliabilitiesnotmeasured atfairvalue

9.Others

XII.Related Partiesand Related-party Transactions

1.Theparentcompany oftheCompany

Nameofparentcompany	Placeofregistration	Natureofbusiness	Registeredcapital	ShareholdingratiooftheparentcompanyintheCompany	VotingrightsratiooftheparentcompanyintheCompany
LuxsharePrecision Limited	HongKong	Industry	HKD10,000	40.90%	40.90%

Descriptionson theparentcompany oftheCompany

TheultimatecontrolleroftheCompany isWANGLaichun and WANGLaisheng.

Otherdescriptions:

2.SubsidiariesoftheCompany

FordetailsoftheCompany’ssubsidiaries,pleasereferto NoteVII.Equity in OtherEntities.

3.Jointventuresand associatesoftheCompany

FordetailsofthesignificantjointventuresorassociatesoftheCompany,pleasereferto NoteVII.Equity in OtherEntities.Otherjointventuresorassociatesthathaverelated-party transactionswith theCompany in thecurrentperiod orformed abalancedueto related-party transactionswith theCompany in thepriorperiod areasfollows:

Nameofjointventureorassociate	RelationshipwiththeCompany
RiyimaoIndustrialCo.,Ltd.	Joint-stockcompanyofamajority-ownedsub-subsidiaryoftheCompany
XuandeEnergyCo.,Ltd.	Joint-stockcompanyofamajority-ownedsub-subsidiaryoftheCompany
AyalaDesignCo.,Ltd.(Japan)	Subsidiaryofjoint-stockcompanyofamajority-ownedsub-subsidiaryoftheCompany
Caldigit(UK)Limited	Subsidiaryofjoint-stockcompanyofamajority-ownedsub-subsidiaryoftheCompany
CaldigitAmericanInc.	Subsidiaryofjoint-stockcompanyofamajority-ownedsub-subsidiaryoftheCompany
AssemTechnologyCo.,Ltd.	Joint-stockcompanyofamajority-ownedsub-subsidiaryoftheCompany
ZhuhaiKinwongFlexibleCircuitCo.,Ltd.	AssociatesoftheCompany
ShangraoCityLijingInnovationTechnologyCo.,Ltd.	OtherrelatedpartyoftheCompany
GuangzhouLuxvisionsInnovationTechnologyLimited	OtherrelatedpartyoftheCompany
BisaisiAutomotiveTechnology(Suzhou)Co.,Ltd.	AnenterprisecontrolledbytheCompany’sparentcompany

Otherdescriptions

4.Otherrelated parties

Nameofotherrelatedparties	RelationshipbetweenotherrelatedpartiesandtheCompany

Otherdescriptions

5.Related-party transactions

(1)Related-party transactionsofpurchasing and selling goods,rendering and accepting services

Purchasing goods/accepting services

In RMB

Relatedparties	Related-partytransactions	Amountrecognizedinthecurrentperiod	Whetherthetransactionlimitisexceeded	Amountrecognizedinthepriorperiod
RiyimaoIndustrial Co.,Ltd.	Purchasinggoods	8,030,338.04	No	6,497,433.42
AssemTechnology Co.,Ltd.	Purchasingfixedassets	1,742,625.00	No
AssemTechnology Co.,Ltd.	Otherservices	7,133.15	No
ZhuhaiKinwong	Purchasinggoods	40,830,964.42	No	125,594,269.72
FlexibleCircuitCo., Ltd.
BisaisiAutomotive Technology (Suzhou)Co.,Ltd.	Purchasinggoods	676,913.53	No	183,291.36
Guangzhou Luxvisions Innovation TechnologyLimited	Purchasinggoods	11,134.40	No

Selling goods/rendering services

In RMB

Relatedparties	Related-partytransactions	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
RiyimaoIndustrialCo.,Ltd.	Processinggoodspurchased	6,691.91	13,312.01
RiyimaoIndustrialCo.,Ltd.	Otherservices	1,842.54	39,133.92
AyalaDesignCo.,Ltd.(Japan)	Sellingproducts	4,495,492.93
Caldigit(UK)Limited	Sellingproducts	31,496,213.08
CaldigitAmericanInc.	Sellingproducts	135,401,289.61
AssemTechnologyCo.,Ltd.	Otherservices	7,133.15
ZhuhaiKinwongFlexible CircuitCo.,Ltd.	Sellingproducts	20,714.40	84,292.81
ShangraoCityLijing InnovationTechnologyCo., Ltd.	Sellingproducts	1,383,434.92	49,473.00
GuangzhouLuxvisions InnovationTechnologyLimited	Equipmentandapparatus	43,045,170.20	62,286,745.18
BisaisiAutomotiveTechnology (Suzhou)Co.,Ltd.	Sellingproducts	106,918,653.51	496,575.04

Descriptionson related-party transactionsofpurchasing and selling goods,and providing and accepting services

(2)Related-party entrusted management/contracting and entrusted management/outsourcing

Entrusted management/contracting oftheCompany:

In RMB

Nameofprincipal/owner	Nameoftrustee/contractor	Typesofentrusted/contractedassets	Commencementdateofentrustment/contract	Terminationdateofentrustment/contract	Pricingbasisoftrusteeshipincome/contractincome	Trusteeshipincome/contractincomerecognizedinthecurrentperiod

income/contract

Nameofprincipal/owner

income

recognized in the

currentperiod

Descriptionson related-party trusteeship/contract

Statementofentrusted management/outsourcing oftheCompany:

In RMB

Nameofprincipal/owner	Nameoftrustee/contractor	Typesofentrusted/contractedassets	Commencementdateofentrustment/contract	Terminationdateofentrustment/contract	Pricingbasisoftrusteeshipincome/contractincome	Trusteeshipincome/contractincomerecognizedinthecurrentperiod

income/contract

Nameofprincipal/owner

income

recognized in the

currentperiod

Descriptionson related-party management/outsourcing

(3)Related-party lease

TheCompany actsasthelessor:

In RMB

Nameoflessee	Typesofleasedassets	Leaseincomerecognizedinthecurrentperiod	Leaseincomerecognizedinthepreviousperiod
RiyimaoIndustrialCo.,Ltd.	Fixedassets	21,117.59
XuandeEnergyCo.,Ltd.	Fixedassets	108,412.88	544,555.20

TheCompany actsasthelessee:

In RMB

Nameoflessor	Typesofleasedassets	Leaseincomerecognizedinthecurrentperiod	Leaseincomerecognizedinthepreviousperiod

Leaseincomerecognized in the

previousperiod

Descriptionson related-party leases

(4)Related-party guarantee

TheCompany actsastheguarantor

In RMB

Guaranteedparty	Amountofguarantee	Commencementdateofguarantee	Maturitydateofguarantee	Whethertheguaranteehasbeenfulfilled
ICT-LANTOLIMITED	189,222,100.00	June23,2020	June22,2021	No
ICT-LANTOLIMITED	195,747,000.00	August1,2019	July31,2020	No
LuxsharePrecisionCo., Ltd	71,773,900.00	June23,2020	June22,2021	No
LuxsharePrecisionCo., Ltd	5,219,920,000.00	July20,2020	July19,2025	No
LuxsharePrecisionCo., Ltd	326,245,000.00	December15,2019	June1,2021	No
LuxsharePrecisionCo.,	326,245,000.00	March9,2020	March24,2023	No
Ltd

TheCompany actsastheguaranteed party

In RMB

Guarantor	Amountofguarantee	Commencementdateofguarantee	Maturitydateofguarantee	Whethertheguaranteehasbeenfulfilled

Descriptionson related-party guarantee

(5)Related-party loans

In RMB

Relatedparty	Loanamount	Commencementdate	Maturitydate	Remarks

Borrow
Lend

(6)Assettransferand debtrestructuring ofrelated parties

In RMB

Relatedparty	Related-partytransactions	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod

Amountrecognized in theprior

period

(7)Remuneration ofkey managers

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Compensationofkeymanagers	11,414,640.00	9,765,724.53
Share-basedpaymentofkeymanagers	9,586,952.73	11,682,249.90

(8)Otherrelated-party transactions

6.Accountsreceivableand payableofrelated parties

(1)Receivables

In RMB

Item	Relatedparty	ClosingBalance		OpeningBalance
Item	Relatedparty	Bookbalance	Bad-debtprovision	Bookbalance	Bad-debtprovision
Accountsreceivable	XuandeEnergyCo.,Ltd.			107,582.38	53.79
Accountsreceivable	ZhuhaiKinwongFlexibleCircuitCo.,			38,420.00	19.21
	Ltd.
Accountsreceivable	ShangraoCityLijingInnovationTechnologyCo.,Ltd.	324,853.80	162.43	13,503.50	6.75
Accountsreceivable	GuangzhouLuxvisionsInnovationTechnologyLimited	14,398,489.55	7,199.24	59,986,632.21	29,993.32
Accountsreceivable	BisaisiAutomotiveTechnology(Suzhou)Co.,Ltd.	59,654,508.75	29,827.25	542,719.17	271.36
Accountsreceivable	AyalaDesignCo.,Ltd.(Japan)	890,628.97	445.31
Accountsreceivable	Caldigit(UK)Limited	17,773,116.02	8,886.56
Accountsreceivable	CaldigitAmericanInc.	38,290,629.44	19,145.31
Otherreceivables	GuangzhouLuxvisionsInnovationTechnologyLimited	69,933.44	349.67	5,087,557.78	25,437.79
Otherreceivables	BisaisiAutomotiveTechnology(Suzhou)Co.,Ltd.	4,200.00	21.00
Otherreceivables	XuandeEnergyCo.,Ltd.	168,480.23	842.40

(2)Payables

In RMB

Item	Relatedparty	期末Bookbalance	期初Bookbalance
Accountspayable	RiyimaoIndustrialCo.,Ltd.	3,195,766.80	2,788,491.37
Accountspayable	ZhuhaiKinwongFlexibleCircuitCo.,Ltd.		36,129,173.65
Accountspayable	GuangzhouLuxvisionsInnovationTechnologyLimited	12,581.87	38,157.90
Accountspayable	BisaisiAutomotiveTechnology(Suzhou)Co.,Ltd.	447,157.67	28,406.07
Receiptsinadvance	XuandeEnergyCo.,Ltd.		232,600.00

Receiptsin advanceXuandeEnergy Co.,Ltd.232,600.00

7.Commitmentofrelated parties

8.Others

XIII.Share-based payment

1.Generalsituation ofshare-based payment

√Applicable□N/A

In RMB

TotalamountoftheCompany’sequityinstrumentsgrantedinthecurrent period	0.00
TotalamountoftheCompany’sequityinstrumentsexercisedinthe currentperiod	42,488,500.00
TotalamountoftheCompany’sequityinstrumentsinvalidinthecurrent period	4,353,900.00

Otherdescriptions

Range ofexercise prices and remaining contractualterms ofthe Company’s outstanding stockoptions atthe end ofthe period:(1)On September25,2018,the Proposalon Granting StockOptionsto Granteesunderthe 2018 Stock Option Incentive Plan ofLuxshare Precision IndustryCo.,Ltd.was approved upon deliberation atthe 5th session ofthe 4th board ofdirectors oftheCompany.Accordingly,the Company granted 97.50 million of stock options to 1,899 eligiblegrantees atthe exercise price ofRMB17.58 pershare.After12 months fromthe date on whichthe grantregistration is completed,grantees meeting the exercise conditions can exercise theoptions in five periods,with a proportion of20%foreach period,in the following 60 months;According to the Proposalon Satisfying the Exercise Conditionsforthe Second Exercise Periodunderthe 2018 Stock Option Incentive Plan approved upon deliberation atthe 27th session ofthe4th board ofdirectors ofthe Company on December2,2020,given thatthe exercise conditionfor the second exercise period options under the 2018 Stock Option Incentive Plan had beenmatured, it was agreed that 1,718 grantees of the 2018 Stock Option Incentive Plan canindependently exercise their options at the exercise price of RMB10.28 per share, with theestimated stock options to be exercised numbering 31,212,577 (the actual number of stockoptions to be exercised shall be subject to registered number by Shenzhen Branch of ChinaSecuritiesDepository and Clearing Co.,Ltd.)(2)On April22,2019,the Proposalon GrantingStock Options to Initial Grantees under the 2019 Stock Option Incentive Plan of LuxsharePrecision Industry Co.,Ltd.wasapproved afterdeliberation atthe 9th session ofthe 4th board ofdirectors. Accordingly, the Company granted 50.076 million stock options to 348 eligiblegrantees at the granted price of the first stock options of RMB23.36 per share,with 12.519million stock optionsused asreserve.On November27,2019,the 13th session ofthe 4th boardof directors deliberated and passed the Proposal on Granting Stock Options to GranteesReserved underthe 2019 Stock Option Incentive Plan on November27,2019,asperwhich the

Company granted 16,274,700 to 263 eligible grantees atan exercise price of RMB17.93 pershare,and after 12 months fromthe date on which the registration of stock options grantforshare-base paymentis completed,grantees who meetthe exercise conditions can exercise thestock options in five periods,with a proportion of 20%for each period,in the following 60months.On June 22,2020,atthe 19th session of the 4th board of directors,the ProposalonSatisfying the Exercise Conditions for the InitialExercise Period under the 2019 Stock OptionIncentive Plan wasapproved upon deliberation,pursuantto which the exercise condition forthefirstexercise period optionsunderthe2019 Stock Option Incentive Plan wasmatured.Therefore,itwasagreed that339 initialgranteesofthe2019 Stock Option Incentive Plan can independentlyexercise their options atthe exercise price of RMB13.17 per share,with the estimated stockoptions to be exercised numbering 16,456,708 (the actual number of stock options to beexercised is subjectto registered number by Shenzhen Branch of China Securities Depositoryand Clearing Co.,Ltd.).

2.Share-based paymentsettled in equity

√Applicable□N/A

In RMB

Methodofdeterminingthefairvalueofequityinstrumentsonthe grantdate	Black-Scholesmodel
Basisfordeterminingthenumberofexercisableequityinstruments	ThedeterminationismadebytheCompanyaccordingtotheequityinstrumentscorrespondingtotheon-the-jobgranteesandtheCompany’sperformanceforecastinthefuture.
Reasonsforsignificantdifferencesbetweencurrentandprior estimates	None
Cumulativeamountofshare-basedpaymentsettledinequity includedinthecapitalreserve	697,082,140.17
Totalamountofshare-basedpaymentsettledinequityrecognized inthecurrentperiod	347,403,580.73

Otherdescriptions

(1)On September25,2018,the Company held the 5th session ofthe 4th board ofdirectors and the 5thsession of the 4th board of supervisors,deliberating and approving the Proposalon Granting StockOptions to Granteesunderthe 2018 Stock Option Incentive Plan ofLuxshare Precision Industry Co.,Ltd.,whereby it was determined that97,500,000 stock options would be granted to 1,899 eligiblegranteeson September25,2018 asthegrantdateoftheincentiveplan.

On November27,2019,the Company held the 13th session ofthe 4th board ofdirectors and the 13thsession of the 4th board of supervisors, deliberating and approving the Proposal on Adjusting theExercise Price and Quantity under the 2018 Stock Option Incentive Plan and Canceling Some StockOptionsaswellasthe Proposalon Satisfying theExercise ConditionsfortheInitialExercise Period ofthe 2018 Stock Option Incentive Plan.According to relevantprovisionsofthe MeasuresforManagingEquity Incentives ofListed Companies,the Company’s 2018 Stock Option Incentive Plan (Draft)andthe Administrative Measures for the Implementation and Assessment of the 2018 Stock OptionIncentive Plan, and as authorized by the Company’s second extraordinary general meeting ofshareholdersin 2018,theadjustmentoftheexercise priceand quantity underthestock option incentiveplan and the cancellation of some options was ratified in response to the implementation by theCompany ofthe annualequity distribution plan in 2018 and the resignation ofgrantees,etc..Aftertheadjustment,the number ofgrantees was changed from1,870 to 1,762,the quantity ofstock optionsgranted was changed from97,300,000 to 122,327,530,and the exercise price of stock options waschanged fromRMB17.58 pershareto RMB13.48 pershare.

(2)On April22,2019,theCompany held the 9th session ofthe4th board ofdirectorsand the 9th sessionofthe 4th board ofsupervisors,atwhich itdeliberated and approved the Proposalon Granting StockOptionsto Subordinated Granteesunderthe 2019 Stock Option Incentive Plan ofLuxshare PrecisionIndustry Co.,Ltd.,determining that50,076,000 stock options would be granted to 348 eligible initialgranteeson April22,2019 asthegrantdateoftheincentiveplan.

On November27,2019,the Company held the 13th session ofthe 4th board ofdirectors and the 13thsession of the 4th board of supervisors, deliberating and approving the Proposal on Adjusting theExercise Price and Quantity under the 2019 Stock Option Incentive Plan and the Proposal onGranting Stock Optionsto GranteesReserved underthe 2019 Stock Option Incentive Plan.Due to theimplementation by the Company ofthe annualequity distribution plan in 2018,the exercise price andquantity underthe 2019 stock option incentive plan were adjusted.Afteradjustment,the exercise priceofthe stock option initially granted was changed fromRMB23.36 pershare to RMB17.93 pershare,the quantity of stock options initially granted was changed from50,076,000 to 65,098,800,and thequantity ofreserved stock options granted was changed from12,519,000 to 16,274700.Atthe sametime,the board ofdirectors considered thatthe Company and the grantees had metthe conditionsforthe grantofreserved stock optionsunderthe Company’s 2019 incentive plan,and consented to grant16,274,700 stock options to 263 grantees on November27,2019 as the grantdate ofreserved stockoptionsattheexercisepriceofRMB17.93 pershare.

On June 22,2020,the Company held the 19th session ofthe 4th board ofdirectorsand the 19th sessionof the 4th board of supervisors,deliberating and approving the Proposalon Adjusting the ExercisePrice and Quantity under the Stock Option Incentive Plans in 2018 and 2019,and Canceling SomeStock Options,and the Proposalon Satisfying the Exercise Conditionsfor the InitialExercise Periodofthe2018 StockOption IncentivePlan.Afterthisadjustment,the numberofinitialgranteesunderthe2019 stock option incentive plan was adjusted from348 to 340,the quantity ofstock optionsinitiallygranted was adjusted from65,098,800 to 84,626,558, and the exercise price of the stock optionsinitially granted was adjusted fromRMB17.93 per share to RMB13.70 per share; the quantity ofreserved stock options granted was adjusted from16,241,700 to 21,113,740,and the exercise pricethereofwasadjusted fromRMB17.93 pershareto RMB13.70 pershare.

3.Share-based paymentsettled in cash

□Applicable√N/A

4.Modification and termination ofshare-based payment

5.Others

XIV.Commitmentsand Contingencies

1.Significantcommitments

Significantcommitmentson thebalancesheetdate

TheCompany hasno significantcommitmentsto bedisclosed.

2. Contingencies

(1)Significantcontingencieson thebalancesheetdate

TheCompany hasno significantcontingenciesto bedisclosed.

(2)NotesshallbemadeiftheCompany hasno significantcontingenciesthatneed to bedisclosed

TheCompany hasno significantcontingenciesto bedisclosed.

3.Others

XV.EventsaftertheBalanceSheetDate

1.Significantnon-adjusting items

In RMB

Item	Content	Effectedquantumonfinancialstatusandoperatingresults	Reasonswhytheeffectedquantumcannotbeestimated

2.Profitdistribution

In RMB

3.Salesreturn

4.Description on eventsafterthebalancesheetdate

1. The USAlaunched the 337 investigation against Luxshare Precision.On January 22,2021,theCompany wasinformed oftwo noticesregarding thisinvestigation fromtheUnited StatesInternationalTrade Commission (USITC),which told the case numberand the designated presiding administrativejudge.Atpresent,the Company hasbeen involved in the 337 investigation process,with alltreatmentssubjectto proceduresand regulationsofthe337 investigation.

2. In order to further improve the strategic layout of the Company in the field of computer andprecision structuralcomponentsmodulesofconsumerelectronics,and enhance the synergy benefitsofverticalintegration and simultaneousdevelopmentin computerand consumerelectronicsproducts,theCompany and itswholly-owned subsidiary,namely,Luxshare Precision Technology Co.,Ltd.,enteredinto the CapitalIncrementAgreementofRikaiComputer Accessory Co.,Ltd.and the ShareholderAgreementwith Casetek Holdings Limited,Rih LiInternationalLimited,Changshu LikaiCorporateManagementPartnership (Limited Partnership)and RikaiComputerAccessory Co.,Ltd.(hereinafterreferred to as“RikaiComputer”),pursuantto which the Company and its wholly-owned subsidiary,namely, Luxshare Precision Technology Co., Ltd., together with Changshu Likai CorporateManagementPartnership (Limited Partnership),jointly invested in RikaiComputerby theirown funds,in which the Company invested RMB5,760,062,200 while its subsidiary invested RMB239,937,800.Upon completion of this investment, the Company, as holding 50.013%equity interest in RikaiComputer,controlled Rikka Computer;Changshu Likka,through the investmentofRMB125,967,400,held 3.5%equity interest in Rikai Computer; and Rikka Computer's original shareholder, Rih LiInternationalLimited,held 46.487%equity interestin RikaiComputer.

3. On January 15,2021,the Company completed itsissueofthefirstultra-short-termfinancing bondsforthe yearof2021, which was named as the FirstUltra-short-termFinancing Bonds ofLuxsharePrecision Industry Co.Ltd.In 2021,with the code of21011112.IBand a termof270 days.The valuedate ofsuch bondsisJanuary 15,2021 and the paymentdate isOctober12,2021.The bondshasbeenissued atan amountofRMB800 million in totalwith an issueinterestrateof3.3%.

XVI.OtherSignificantEvents

1.Correction ofpreviousaccounting errors

(1)Retrospectiverestatement

In RMB

Accountingerrorcorrected	Processingprocedure	Nameoftheaffectediteminthestatementsofthecomparisonperiod	Cumulativequantumaffected

(2)ProspectiveApplication

Accountingerrorcorrected	Approvalprocedure	Reasonsforadoptingmethodofprospectiveapplication

2.Debtrestructuring

3.Assetreplacement

(1)Exchangeofnon-monetary assets

(2)Replacementofotherassets

4.Annuity plan

5.Termination ofoperation

In RMB

Item	Incomes	Costs	Totalprofits	Incometaxexpenses	Netprofits	Profitsfromterminationofoperationattributabletotheownersoftheparentcompany

attributableto the

ownersofthe

parentcompany

Otherdescriptions

6. Segmentinformation

(1)Determination basisand accounting policy ofreporting segment

(2)Financialinformation ofreporting segment

In RMB

Item		Inter-segmentoffset	Total

(3)Descriptions on reasons why the Company has no reporting segment or cannot disclose thetotalassetsand liabilitiesofeach reporting segment,ifany

(4)Otherdescriptions

7.Otherimportanttransactionsand eventsthathavean impacton investors’decision-making

8.Others

XVII.Notesto Key Itemsin FinancialStatementsoftheCompany

1.Accountsreceivable

(1)Categorized disclosureofaccountsreceivable

In RMB

Category	ClosingBalance					OpeningBalance
	Bookbalance		Bad-debtprovision		Bookvalue	Bookbalance		Bad-debtprovision		Bookvalue
	Amount	Proportion	Amount	Provisionproportion	Bookvalue	Amount	Proportion	Amount	Provisionproportion	Bookvalue
Accountsreceivable forwhichbad-debt provisionismade individually	241,403.36	0.01%	241,403.36	100.00%		241,403.36	0.02%	241,403.36	100.00%
Including:
Entity1	241,403.36	0.01%	241,403.36	100.00%		241,403.36	0.02%	241,403.36	100.00%
Accountsreceivable forwhichbad-debt provisionismadeby group	6,927,999,417.25	99.99%	4,846,817.94	0.07%	6,923,152,599.31	1,564,941,516.13	99.98%	3,148,698.64	0.20%	1,561,792,817.49
Including:
Groupbyaging	1,023,149,566.63	14.76%	4,846,817.94	0.47%	1,018,302,748.69	1,087,700,095.39	69.49%	3,148,698.64	0.29%	1,084,551,396.75
Relatedpartygroup inthescopeof consolidation	5,904,849,850.62	85.23%			5,904,849,850.62	477,241,420.74	30.49%			477,241,420.74
Total	6,928,240,820.61	100.00%	5,088,221.30		6,923,152,599.31	1,565,182,919.49	100.00%	3,390,102.00		1,561,792,817.49

Provision forbad debtsmadeindividually:RMB241,403.36

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision
Entity1	241,403.36	241,403.36	100.00%	Itcannotberecovered
Total	241,403.36	241,403.36	--	--

Provision forbad debtsmadeindividually:

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion	Reasonforprovision

Provision forbad debtsmadeby group:RMB4,846,817.94

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion
Undue	1,004,331,583.99	501,763.97	0.05%
1to60daysoverdue	12,296,156.94	614,807.85	5.00%
61to120daysoverdue	3,978,537.27	1,193,561.18	30.00%
121to180daysoverdue	9,948.16	3,979.26	40.00%
181to365daysoverdue			50.00%
1to2years(excluding1year)	6,348.00	5,713.41	90.00%
Over2years	2,526,992.27	2,526,992.27	100.00%
Relatedpartygroupinthescope ofconsolidation	5,904,849,850.62	0.00	0.00%
Total	6,928,240,820.61	4,846,817.94	--

Description on basisfordetermining thegroup:

Provision forbad debtsmadeby group:

In RMB

Description	ClosingBalance
Description	Bookbalance	Bad-debtprovision	Provisionproportion

Descriptionson basisfordetermining thegroup:

Ifthe bad-debtprovision foraccounts receivable is made according to the generalmodelofexpected creditloss,pleasereferto thedisclosuremethod ofotherreceivablesto disclosetherelevantinformation ofbad debtprovision:

Applicable√N/A

Disclosureby aging

In RMB

Aging	Bookbalance
Within1year(including1year)	6,925,466,076.98
Undue	1,004,331,583.99
1to60daysoverdue	12,296,156.94
61to120daysoverdue	3,978,537.27
121to180daysoverdue	9,948.16
181to365daysoverdue
Relatedpartygroupinthescopeofconsolidation	5,904,849,850.62
1to2years	6,348.00
2to3years	2,768,395.63
Total	6,928,240,820.61

(2)Bad-debtprovision made,recovered orreversed in thecurrentperiod

Bad-debtprovision madein thecurrentperiod:

In RMB

Category	OpeningBalance	Amountofchangeinthecurrentperiod				ClosingBalance
Category	OpeningBalance	Provision	Recoverorreversal	Writeoff	Other	ClosingBalance
Provisiononan individualbasis	241,403.36					241,403.36
Provisionona groupbasis	3,148,698.64	1,699,043.64		924.34		4,846,817.94
Total	3,390,102.00	1,699,043.64		924.34		5,088,221.30

Including significantamountsreversed orrecovered fromthecurrentprovision forbad debts:

In RMB

Entityname	Amountrecoveredorreversed	Recoverymethod

(3)Accountsreceivableactually written offin thecurrentperiod

In RMB

Item	Write-offamount

Including thewrite-offofsignificantaccountsreceivable:

In RMB

Entityname	Natureofaccountsreceivable	Write-offamount	Reasonsforwriteoff	Proceduresforwriteoff	Whetherthefundsaregeneratedbyrelatedpartytransactions

Whetherthefunds

Entity nameNatureofaccountsreceivable

Write-offamountReasonsforwriteoff

Proceduresforwriteoff

aregenerated by

related party

transactions

Descriptionson thewrite-offofotherreceivables:

(4)Accountsreceivablewith top fiveclosing balance-by debtor

In RMB

Entityname	Closingbalanceofaccountsreceivable	Proportionintotalclosingbalanceofaccountsreceivable	Closingbalanceofbad-debtprovision
Entity1	2,394,402,100.00	34.56%
Entity2	2,172,821,630.20	31.36%
Entity3	630,415,700.00	9.10%
Entity4	354,887,300.48	5.12%
Entity5	280,847,249.98	4.05%	140,423.62
Total	5,833,373,980.66	84.19%

(5)Accountsreceivablederecognized dueto transferoffinancialassets

(6)Amount of assets and liabilities formed by transferring accounts receivable and continuinginvolvement

Otherdescriptions:

2.Otherreceivables

In RMB

Item	ClosingBalance	OpeningBalance
Dividendsreceivable	11,543,626.19
Otherreceivables	543,164,102.94	524,425,779.85
Total	554,707,729.13	524,425,779.85

(1)Interestreceivable

1)Classification ofinterestreceivable

In RMB

Item	ClosingBalance	OpeningBalance

2)Significantoverdueinterest

Borrower	Closingbalance	Overduetime	Reasonsfordelay	Whetherthereisimpairmentanditsjudgmentbasis

Otherdescriptions:

3）Bad-debtprovision

□Applicable√N/A

(2)Dividendsreceivable

1)Classification ofdividendsreceivable

In RMB

Item(orInvestee)	ClosingBalance	OpeningBalance
Wan’anXiexunElectronicCo.,Ltd.	11,543,626.19
Total	11,543,626.19

2)Significantdividendsreceivablewith aging over1 year

In RMB

Item(orInvestee)	ClosingBalance	Aging	Reasonsfornon-recovery	Whetherthereisimpairmentanditsjudgmentbasis

3)Bad-debtprovision

□Applicable√N/A

Otherdescriptions:

(3)Otherreceivables

1)Classification ofotherreceivablesby nature

In RMB

Natureofreceivables	Closingbookbalance	Openingbookbalance
Reservefund	49,663.76	99,209.99
Securitydeposit		221,000.00
Importtaxrebatereceivable	20,052,713.03
Other	191,697,001.27	191,539,338.72
Currentaccount	332,444,406.04	333,529,849.71
Total	544,243,784.10	525,389,398.42

2）Bad-debtprovision

In RMB

Bad-debtprovision	StageI	StageII	StageIII	Total
Bad-debtprovision	12-monthECL	LifetimeECL(without	LifetimeECL(withcredit	Total
		creditimpaired)	unimpaired)
BalanceasatJanuary1, 2020	963,618.57			963,618.57
BalanceasatJanuary1, 2020inthecurrent period	——	——	——	——
Provisioninthecurrent period	116,062.59			116,062.59
BalanceasatDecember 31,2020	1,079,681.16			1,079,681.16

Changesin book balanceofprovision forlosswith significantchangesin thecurrentperiod

Applicable√N/A

Disclosureby aging

In RMB

Aging	Bookbalance
Within1year(including1year)	544,241,438.94
Undue	210,503,376.79
1to60daysoverdue	973,910.51
61to120daysoverdue	314,440.30
121to180daysoverdue	5,305.30
181to365daysoverdue
Relatedpartygroupinthescopeofconsolidation	332,444,406.04
1to2years	2,345.16
Total	544,243,784.10

3)Bad-debtprovision made,recovered orreversed in thecurrentperiod

Bad-debtprovision in thecurrentperiod:

In RMB

Category	OpeningBalance	Amountofchangeinthecurrentperiod				ClosingBalance
Category	OpeningBalance	Provision	Recoverorreversal	Writeoff	Other	ClosingBalance
Groupbyaging	963,618.57	116,062.59				1,079,681.16
Total	963,618.57	116,062.59				1,079,681.16

Including significantamountsreversed orrecovered fromthecurrentprovision forbad debts:

In RMB

Entityname	Amountreservedorrecovered	Recoverymethod

4)Otherreceivablesactually written offin thecurrentperiod

In RMB

Item	Write-offamount

Including thewrite-offofsignificantotherreceivables:

In RMB

Entityname	Natureofotherreceivables	Write-offamount	Reasonsforwriteoff	Proceduresforwriteoff	Whetherthefundsaregeneratedbyrelated-partytransactions

Descriptionson thewrite-offofotherreceivables

5)Otherreceivableswith top fiveclosing balance-by debtor

In RMB

Entityname	Natureofreceivables	Closingbalance	Aging	Proportionintotalclosingbalanceofotherreceivables	Closingbalanceofbad-debtprovision
Entity1	Currentaccount	200,000,000.00	Undue	36.75%
Entity2	Equitytransferfunds	190,000,000.00	Undue	34.91%	950,000.00
Entity3	Currentaccount	130,498,000.00	Undue	23.98%
Entity4	Currentaccount	20,052,713.03	Undue	3.68%	100,263.57
Entity5	Currentaccount	949,127.17	Undue	0.17%
Total	--	541,499,840.20	--	99.49%	1,050,263.57

6)Receivablesinvolving governmentgrants

In RMB

Entityname	Nameofgovernmentgrant	Closingbalance	Agingattheendoftheperiod	Estimatedtime,amountandbasisofcollection

Estimated time,amount

and basisofcollection

7)Otherreceivablesderecognized dueto transferoffinancialassets

8)Amount of assets and liabilities formed by transferring other receivables and continuinginvolvement

Otherdescriptions:

3.Long-termequity investments

In RMB

Item	ClosingBalance			OpeningBalance
Item	Bookbalance	Provisionforimpairment	Bookvalue	Bookbalance	Provisionforimpairment	Bookvalue
Investmentin subsidiaries	13,406,253,703.42	28,560,179.80	13,377,693,523.62	9,972,755,414.87	28,560,179.80	9,944,195,235.07
Investmentin jointventuresand associates	260,260,811.77	34,372,608.46	225,888,203.31	259,808,313.65	34,372,608.46	225,435,705.19
Total	13,666,514,515.19	62,932,788.26	13,603,581,726.93	10,232,563,728.52	62,932,788.26	10,169,630,940.26

(1)Investmentin subsidiaries

In RMB

Investee	Openingbalance(bookvalue)	Increaseanddecreaseinthecurrentperiod					Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment
Investee	Openingbalance(bookvalue)	Additionalinvestment		Reducedinvestment	Provisionforimpairment	Other	Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment
ASAP Technology (Jiangxi)Co., Ltd.	269,252,401.16	2,190,371.05					271,442,772.21
Xiexun Electronic (Ji'an)Co.,Ltd.	242,137,662.88	1,651,816.82					243,789,479.70
Suining Luxshare Precision IndustryCo., Ltd.	1,779,965.55	511,479.35					2,291,444.90
Luxshare Precision TechnologyCo., Ltd.	58,059,935.32	100,000,000.00					158,059,935.32
ICT-LANTO LIMITED	534,084,500.26						534,084,500.26
Luxshare Precision Limited	32,708,137.68	-284,307.78					32,423,829.90
LantoElectronic	2,192,820,238.	1,095,998,647.					3,288,818,885.
Limited	44	12					56
Dongguan Leader Precision IndustryCo., Ltd.	63,493,794.31	1,200,894.57					64,694,688.88
Kunshan Luxshare Precision IndustryCo., Ltd.	430,091,772.36	92,853,142.31					522,944,914.67
Wan’anXiexun ElectronicCo., Ltd.	40,164,974.04	83,521.15					40,248,495.19
FujianJK WiringSystems Co.,Ltd..	96,964,062.97	133,938.23					97,098,001.20
Ji’anJizhou district Luxshare ElectronicCo., Ltd.	8,112,772.81	-62,671.86					8,050,100.95
Xingning Luxshare TechnologyCo., Ltd.		215,943.92					215,943.92
Luxshare Precision Industry (Chuzhou),Ltd.	761,318,025.91	7,066,532.95					768,384,558.86
SuK Kunststofftechni kGmbH	33,746,516.14						33,746,516.14
Fengshun Luxshare Precision IndustryCo., Ltd.	10,076,141.87	38,549.00					10,114,690.87
Shenzhen Luxshare	4,081,506.28	-156,512.01					3,924,994.27	28,560,179.80
Acoustics TechnologyLtd.
Dongguan Luxshare Precision IndustryCo., Ltd.	1,001,329,142.07	22,668,525.46					1,023,997,667.53
Luxshare Automation (Jiangsu)Ltd.	38,027,834.69	3,328,145.99					41,355,980.68
Shenzhen Luxshare StandardCo., Ltd.	21,000,000.00						21,000,000.00
Jiangxi Luxshare Intelligent Manufacture Co.,Ltd.	995,790,836.43	63,489,154.64					1,059,279,991.07
Donguan Xuntao ElectronicCo., Ltd.	1,561,134.02	-10,933,958.18					-9,372,824.16
Luxshare Electronic Technology (Kunshan)Co., Ltd.	1,604,961,044.49	641,949,758.70					2,246,910,803.19
Luxshare Precision Components (Kunshan)Co., Ltd.	79,543,166.18	21,848,053.86					101,391,220.04
Luxshare Precision Industry(Enshi) Co.,Ltd.	63,000,000.00	37,975,752.97					100,975,752.97
YongxinCounty Boshuo	263,449.36	349,933.26					613,382.62
ElectronicsCo., Ltd.
Luxshare-ICT (Japan)	742,801.20	1,491,127.38					2,233,928.58
Taiwan Luxshare Precision Limited	31,180,665.86	72,432,574.07					103,613,239.93
Luxshare-ICT,in c.	11,429,601.78	14,722,997.63					26,152,599.41
Korea Luxshare-ICT Co.,Ltd.	2,431,448.58	1,638,515.07					4,069,963.65
LUXSHARE-IC TEUROPE LIMITED	304,567.47	154,194.82					458,762.29
Meite Technology (Suzhou)Co., Ltd.	2,576,133.16	920,675.17					3,496,808.33
Kunshan-Luxsh areRF TechnologyCo., Ltd.	1,730,833.09	20,589,815.84					22,320,648.93
Meilv Electronic (Huizhou)Co., Ltd.	571,900.00	-154,420.02					417,479.98
Ji’anCounty Branchof Luxshare Automation (Jiangsu)Ltd.
JiangxiASAP ElectronicCo., Ltd.	1,022,839.08	485,876.34					1,508,715.42
Luxshare Precision Industry	241,115.91	441,712.25					682,828.16
(Baoding)Co., Ltd.
Luxshare Precision Industry (Shanxi)Co., Ltd.	837,894.93	532,879.24					1,370,774.17
Guangdong LuxshareMerry ElectronicCo., Ltd.
Guangdong LuxshareMerry ElectronicCo., Ltd.	3,199,193.61	-2,141,089.88					1,058,103.73
BozhouLanto Electronic Limited	2,523,662.33	1,399,658.70					3,923,321.03
Kunshan Luxshare PrecisionMould Co.,Ltd.	2,555,423.16	-503,108.45					2,052,314.71
HuzhouJiuding ElectronicCo., Ltd.	626,901.37	317,384.94					944,286.31
XinyuXiexun ElectronicCo., Ltd.	212,688.11	7,073,830.88					7,286,518.99
Luxshare Precision Industry(Xi’an) Co.,Ltd.	64,000,000.00		64,000,000.00
Luxshare Precision Industry (Suzhou)Co., Ltd.	111,000,000.00	19,000,000.00					130,000,000.00
Luxshare Intelligent	403,156,886.94	344,363,709.71					747,520,596.65
Manufacture (Zhejiang)Co., Ltd.
luxshareGlobal CableInc.
BozhouXuntao Electronic Limited	85,785.00	84,183.40					169,968.40
Dongguan Luxshare TechnologyCo., Ltd.	696,027,859.24	187,657,696.61					883,685,555.85
Xuancheng Luxshare Precision IndustryCo., Ltd.	177,664.36	3,234,157.92					3,411,822.28
Beijing Luxshare Acoustic TechnologyCo., Ltd.	190,354.67	3,373,288.87					3,563,643.54
Luxshare Intelligent Manufacture Technology (Changshu)Co., Ltd.	23,000,000.00	693,342,959.97					716,342,959.97
Xingning Luxshare ElectronicCo., Ltd.		143,840.32					143,840.32
SpeedTech Corp.		906,496.72					906,496.72
Luxshare Technologies Limited		1,872,619.53					1,872,619.53
LuxshareSmart Technology (Rugao)Co.,		12,000,000.00					12,000,000.00
Ltd.
Changshu Luxshare Industrial Investment Management Co.,Ltd.		30,000,000.00					30,000,000.00
Total	9,944,195,235.07	3,497,498,288.55	64,000,000.00				13,377,693,523.62	28,560,179.80

(2)Investmentin jointventuresand associates

In RMB

Investee	Openingbalance(bookvalue)	Increaseanddecreaseinthecurrentperiod								Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment
Investee	Openingbalance(bookvalue)	Additionalinvestment	Reducedinvestment	Investmentprofitorlossrecognizedunderequitymethod	Othercomprehensiveincomeadjustment	Otherchangesinequity	Declaredcashdividendsorprofits	Provisionforimpairment	Other	Closingbalance(bookvalue)	Closingbalanceofprovisionforimpairment

I.Jointventures
II.Associates
Siliconch	25,502,902.88	-2,839,396.33	22,663,506.55
Zhuhai Kinwong Flexible Circuit Co.,Ltd.	199,932,802.31	3,291,894.45	203,224,696.76	34,372,608.46
Subtotal	225,435,705.19	452,498.12	225,888,203.31	34,372,608.46
Total	225,435,705.19	452,498.12	225,888,203.31	34,372,608.46

（3）Otherdescriptions

4.Operating incomeand operating costs

In RMB

Item	Amountrecognizedinthecurrentperiod		Amountrecognizedinthepriorperiod
Item	Income	Cost	Income	Cost
Principalbusiness	11,464,276,490.11	10,754,493,607.05	4,311,003,122.10	3,931,734,512.43
Otherbusiness	100,827,039.16	26,703,475.62	62,594,534.16	22,925,428.05
Total	11,565,103,529.27	10,781,197,082.67	4,373,597,656.26	3,954,659,940.48

Incomerelated to information:

In RMB

Contractclassification	Segment1	Segment2	Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:

Information related to performanceobligations:

Performanceobligationsspecified in theCompany’scontractsinclude:to deliverproductsto customers,to deliverproductsto customers according to the delivery dates agreed in contractorders,and make paymentsby customers according to thepayment dates agreed in the orders after the control has been transferred to the customers upon inspection andacceptance.The Company is obligated to deliver to customers products which can be accepted by the customers.TheCompany purchasesrawmaterialsfromsuppliers,and combinesthe rawmaterialsinto certain productsfordelivery to thecustomers through significantproduction and processing activities.y Considering itassumes the majorresponsibilities fordelivering products to the customers,the Company is deemed as the primary responsible party.The Company is notobligated to return the received customers’goodspaymentsin anticipation,butithasa quality warranty responsibility forthe productsdelivered to thecustomers.Since thisresponsibility isan affirmative warranty which isrequired to ensure thatthe Company’sproductsshallmeetthe technicalparameters,quality,appearance and otherrequirementsofthe customers,ratherthan aservicewarranty,thisquality warranty doesnotconstituteaseparateperformanceobligation.

Information relating to thetransaction priceallocated to theremaining performanceobligations:

Attheend ofthereporting period,theincomescorresponding to thecontractssigned whoseperformancehasnotbeen

commenced orcompleted amountto RMB0.00,ofwhich RMBisexpected to berecognized in,RMBisexpected toberecognized in,and RMBisexpected to berecognized in .

Otherdescriptions:

5.Investmentincome

In RMB

Item	Amountrecognizedinthecurrentperiod	Amountrecognizedinthepriorperiod
Long-termequityinvestmentincome	3,325,246,159.60	792,348,017.08
accountedforusingthecostmethod
Long-termequityinvestmentincome accountedforusingtheequitymethod	452,498.12	-59,092,453.94
Investmentincomefromdisposalof long-termequityinvestment	-58,000.00	-86,909,611.82
Investmentincomefromheld-for-trading financialassetsduringholdingperiod	14,791,876.12	-772,350.00
Dividendincomefromotherequity instrumentinvestmentsduringtheholding period		956,475.00
Incomefromwealthmanagementproducts	69,496,746.15	44,445,784.15
Total	3,409,929,279.99	690,975,860.47

6.Others

XVIII.Supplementary Information

1. Breakdown ofnon-recurring profitorlossforthecurrentperiod

√Applicable□N/A

In RMB

Item	Amount	Remarks
Profitorlossfromdisposalofnon-current assets	-35,503,173.93
Governmentgrantsrecognizedinthecurrent profitorloss(exceptforthegovernment grantswhicharecloselyrelatedtothe businessoftheenterpriseandenjoyedin accordancewiththenationalunified standardquota)	450,749,695.89
Profitorlossonassetsunderentrusted investmentormanagement	113,778,335.78
Exceptforeffectivehedgingbusinessrelated tothecompany’snormalbusiness operations,profitorlossfromchangesinfair valuearisingfromtheholdingof held-for-tradingfinancialassets,derivative financialassets,held-for-tradingfinancial liabilities,derivativefinancialliabilities,and	837,100,369.42
investmentincomefromdisposalof held-for-tradingfinancialassets,derivative financialassets,held-for-tradingfinancial liabilities,derivativefinancialliabilitiesand otherdebtinvestments
Othernon-operatingincomeandexpenses excepttheaboveitems	30,554,498.37
Less:Affectedquantumofincometax	214,489,873.68
Affectedquantumofminorityinterest	45,628,950.13
Total	1,136,560,901.72	--

Itis required to specify the reason fordefining items as non-recurring profitorloss items according to InformationDisclosure and Presentation Rules for Companies Making Public Offering ofSecurities No.1 － Non-recurring ProfitorLoss,and reasons for defining non-recurring profitor loss items illustrated in Information Disclosure and PresentationRulesforCompaniesMaking Public Offering ofSecuritiesNo.1 － Non-recurring ProfitorLossasrecurring profitorlossitems.

□Applicable√N/A

2.Return on equity and earningspershare

Profitinthereportingperiod	Weightedaveragereturnonequity	Earningspershare
Profitinthereportingperiod	Weightedaveragereturnonequity	Basicearningspershare(RMB/share)	Dilutedearningsper(RMB/share)
Netprofitattributabletoordinary shareholdersoftheCompany	30.29%	1.03	1.01
Netprofitafterdeductionof non-recurringprofitsorlosses attributabletoordinary shareholdersoftheCompany	26.15%	0.87	0.85

3.Accounting data differencesunderdomesticand foreign accounting standards

(1)Differences of net profit and net assets in financial reports disclosed according to overseasaccounting standardsand Chineseaccounting standardsatthesametime

□Applicable√N/A

(2)Difference of net profit and net asset in financial reports disclosed according to overseasaccounting standardsand Chineseaccounting standardsatthesametime

□Applicable√N/A

(3)Descriptions on the reasons for the differences of accounting data under the accountingstandardsathome and abroad,and the name ofthe overseasinstitution ifdifference adjustmentismadeto thedata audited by an overseasauditinstitution

4.Others

Section XIIIListofDocumentsAvailableforInspection

1.Financialstatementswith sealsand signaturesoflegalrepresentative,thechieffinancialofficerand thehead ofaccounting

department(theperson in chargeofaccounting).

2.Theoriginalauditor’sreportwith sealsoftheaccounting firmand sealsand signaturesofthecertified publicaccountants.

3.Alloriginaldocumentsand announcementsoftheCompany publicly disclosed in thewebsitesdesignated by theCSRCwithin theReporting Period.

4.Otherrelevantmaterials.

LuxsharePrecision Industry Co.,Ltd.

Chairman: WANGLaichun

April 20, 2021