On June 17th, according to business information, global chip giant Intel has invested in Dongguan Lixun Technology Co., Ltd., a subsidiary of A-share consumer electronics leader Lixun Precision (002475). This news has received high attention from the market. On June 17th, the stock price of Lixun Precision closed up 7.71%, with a daily market value increase of about 19 billion yuan and a total market value of 265.66 billion yuan. As of noon on June 18th, the stock continued to rise by 2.08%. It is reported that the cooperation between the two parties will focus on the communication and data center business areas of Lixun Precision, which is Lixun Precision's second main business sector after consumer electronics, and also the "second growth curve" of Lixun Precision's future development strategy planning.
According to Tianyancha, Dongguan Lixun Technology Co., Ltd., a subsidiary of Lixun Precision, has recently undergone a business change, with a new shareholder, Intel (China) Co., Ltd., holding a 3% stake. At the same time, the registered capital has increased from approximately RMB 571 million to approximately RMB 589 million. The largest shareholder of Dongguan Lixun Technology Co., Ltd. is Lixun Precision, with a shareholding ratio of 89.2205%.
According to public information, Dongguan Lixun Technology Co., Ltd. was established in 2017 and is a provider of communication facilities and enterprise level interconnection products. It mainly produces and operates communication equipment such as base station antennas, filters, RRUs, as well as interconnection products such as connectors, connecting cables, optical modules, AOCs, etc. It covers wireless communication base stations, data centers, servers, switches, routers, and other application fields, providing complete interconnection solutions from wireless connections to electrical connections, optical connections, thermal management, and more.
According to the latest 2023 annual report released by Lixun Precision, the company's main businesses currently include consumer electronics, communication and data center, and automotive. Among them, the communication and data center business mainly includes indoor and outdoor electronic products related to wireless base station application scenarios in the communication field, as well as products such as electrical connection, optical connection, thermal management, power modules and power systems in data center application scenarios.
According to industry insiders, Intel's investment in the subsidiary of Lixun Precision will leverage their respective strengths to further cooperate in data center and AI server businesses. Previously, the two sides had cooperated in relevant fields, mainly in data center optical/electrical connections, liquid cooling systems, power systems, etc. Lixun Technology also provided complete high-speed interconnection and thermal management solutions for the Intel Partner Alliance (IPA) and multiple enterprises in the general server industry technology innovation chain.
In the annual report of Lixun Precision, the company analyzed its main business and stated, "Since entering the communication and data center industry, the company has continuously cultivated products such as electrical connections, optical connections, air-cooled/liquid cooled cooling, power management, RF, etc. Especially in the field of high-speed interconnection in data centers, the company has collaborated with leading chip manufacturers to proactively develop next-generation high-speed connection standards such as 800G and 1.6T for mainstream data centers and cloud service providers worldwide. Some segmented products such as external high-speed copper cables, cables and connector components, backplane connectors and cables, HSIO, SSIO, etc. have won customer recognition with leading technology, cost advantages, and excellent product performance."
Lixun Precision stated that based on this, the company takes this as the entry point to comprehensively promote products such as optical connections, heat dissipation, and power modules to further deepen cooperation with top customers. During the reporting period, the company has made breakthrough progress under this strategic guidance. It is reported that at the 2023 online performance briefing of Lixun Precision, the company responded positively to its relationship with Nvidia for the first time, stating that "it has indirect and direct services for cloud computing and data center customers, including this customer."
For Lixun Precision itself, communication and data center business is highly expected as the "second curve". In its outlook for the future development of the company, Lixun Precision stated that in the face of new environments, new markets, and new customers, the company will continue to implement the "Three Five Year" development plan, dynamically allocate internal and external resources to fully support the high-quality growth of communication/data center business and automotive business while consolidating the foundation of consumer electronics business.
Li Xun Precision stated that for the year 2024, the company will continue to promote technological innovation in products such as optical/electrical connections, liquid cooling, power supplies, and RF communication in the communication field. In terms of expanding business opportunities, the rapid iteration of AI technology has driven the rapid growth of computing power demand, while also placing higher demands on hardware performance such as transmission and heat dissipation. In the face of new markets and opportunities, the company accurately positions its domestic and foreign head cloud service customers, quickly forms a differentiated competitive advantage, and focuses on forging the ability to provide high value-added products and services to global leading customers, opening up more growth momentum for the company's second growth curve.