Luxshare Precision: Key Clients Have Order Lock-in Capability, Limited Impact from Rising Memory Chip Prices

Luxshare Precision Industry Co., Ltd. stated in a November 26 announcement that its long-term business model with key clients involves multi-year lock-in agreements, typically spanning two to three years for high-end and mid-to-high-end product lines. The company noted that despite recent memory chip price increases, none of its major clients have indicated any need to reduce production capacity demand for the second half of the year due to memory chip factors. This demonstrates that Luxshare's key clients possess strong order lock-in capabilities, thereby limiting the impact of such price fluctuations. As a B2B supplier, the company emphasized it cannot absorb costs arising from raw material (including memory chips) price volatility, exchange rate fluctuations, or other macroeconomic factors within its business model.