Apple supplier Luxshare plans to issue a bond to fund new production lines

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A man walks past an Apple store in Taipei, Taiwan October 20, 2020. Picture taken October 20, 2020. REUTERS/Ann Wang

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BEIJING, Feb 21 (Reuters) – Luxshare Precision Industry Co Ltd (002475.SZ), a supplier to Apple Inc, announced on Monday plans to raise up to 13.5 billion yuan ($2.13 billion) to finance six projects, including the construction of a production line for portable devices.

The company plans to issue up to 2.1 billion shares to up to 35 investors at a price to be disclosed later, Luxshare said in a document filed with the Shenzhen Stock Exchange.

The move came as Luxshare sought to “enhance the company’s production capacity in downstream applications such as consumer electronics and smart vehicles,” it said in the filing.

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The six projects included construction of production lines for smart wearable devices, precision components for smart mobile terminals and high-voltage connection systems for new energy vehicles, according to its filing.

Founded in 2004, Luxshare has become a fast-growing supplier for Apple in recent years. He steadily worked his way up the hardware giant’s value chain, from making connecting cables for the iPhone and Macbook to making Airpods.

In 2020, the company acquired two iPhone assembly plants from Taiwan-based Wistron Corp (3231.TW).

The move is seen by analysts as a sign that more indigenous Chinese companies are making deeper inroads into Apple’s supply chain.

($1 = 6.3352 Chinese yuan renminbi)

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Reporting by Ella Cao and Meg Shen; Editing by Jan Harvey

Our standards: The Thomson Reuters Trust Principles.


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