Apple Supplier Luxshare Precision Discloses US Investigation Findings
Luxshare Precision, a consumer electronics manufacturer and Apple supplier, announced on September 13 that the United States International Trade Commission’s investigation into the company has been closed without any material impact on the company’s production and operations. Affected by this news, its stock price rose more than 5% today.
According to the announcement, Amphenol Corporation, a leading supplier of advanced interconnected systems, sensors and antennas, filed an investigation application with the ITC on December 18, 2020 in accordance with Section 337 of the U.S. Tariff Act of 1930. The so-called “337 investigation” involves three US patents, which are related to conductive plastic technology and terminal horizontal injection molding technology.
The ITC then affirmed its preliminary ruling and terminated its investigation. Its report shows that only a small number of Luxshare Precision’s first-generation products that directly exported to the U.S. were covered by part of the patents claimed by Amphenol. The first-generation products from Luxshare Precision were no longer exported to the U.S., and have been replaced by the current version of products.
The ITC confirmed that Luxshare Precision did not have any infringement in respect of other alleged products covered by the other two U.S. patents. The existing designs and schemes proposed by Luxshare Precision have again been testified by the ITC not to infringe any rights of patents of Amphenol.
Luxshare Precision was founded on May 24, 2004, and was successfully listed on the Shenzhen Stock Exchange on September 15, 2010. Since its listing, its operating revenue has achieved a compound annual growth rate of 50%. According to the 2021 annual report, it is committed to the optimization of underlying technology, especially in acoustics, visual functions, power, wireless communication technology and other fields.
In terms of performance, according to the firm’s 2022 semi-annual report, Luxshare Precision achieved revenue of about 81.961 billion yuan ($11.8 billion) in the first half of the year, year-on-year growth of 70.23%, while net profit attributable to shareholders was about 3.784 billion yuan, up 22.49% year on year.
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In an investor relations activity record released previously by the company, Grace Wang, the chairman and general manager, expressed her opinion on the prevention and restriction of Chinese manufacturers on patents outside China. “Ninety percent of the company’s business is in overseas markets, which means that the company’s talent is global and mobile. There is no impact on talent, but we need to take some risks into consideration when investing overseas,” said Wang.