At noon on October 26, Foxconn officials told reporters of the first finance and economics department that “false news” was “set up a working group to resist the precision of Lixun”. “According to company policy, we do not comment on market speculation, but the description of the working group is not true and the management team has not taken any other special measures.” Foxconn told reporters that the company would not comment on the operation of any customers. < / P > < p > although it denies the market rumors, the comparison between Foxconn and lichen precision has never been interrupted in the past year. Lixun precision has entered the OEM field by taking a stake in Wistron and has become Foxconn’s strongest competitor. Thanks to the deep binding of apple, the operating revenue of Lixun precision in the first half of the year was 36.5 billion yuan, with a year-on-year increase of 70.01%, and the net profit attributable to it was 2.54 billion yuan, with a year-on-year increase of 69.01%. By the end of the day, Lixun precision closed up 1.32%, with a market value of 401.6 billion yuan, ranking second only to Hikvision in A-share electronic technology stocks. < p > < p > in 2017, after successively obtaining a series of orders, such as Apple iPad internal cable, macbook power cord, applewacth wireless charging / watch strap, macbook type-C and iPhone adapter, etc., lichen precision finally officially became the manufacturer of airpods. With Apple’s new noise reduction Bluetooth headset airpods Pro launched in 2019, the company’s performance has entered a blowout period. < / P > < p > according to the data of China Research Institute of industry, the sales volume of appleairpods accounts for 71% of the revenue of wireless headset market, and lichen has won 70% of Apple’s airpods Pro orders, which has become the main revenue source of lichen precision. According to the semi annual report released before, the growth rate of Li Xun precision consumer electronic business reached 86.56% year-on-year. However, in late July this year, lichen precision announced that it and its controlling shareholder Lixun Co., Ltd. would invest 3.3 billion yuan to wholly acquire 100% equity of two wholly-owned subsidiaries of Wistron and Zitong. The transaction price of the assets of the two target companies was initially determined to be about 3.3 billion yuan, of which, Lixun contributed 600 million yuan in the acquisition. < p > < p > for the actions of Lixun in the field of OEM, Foxconn’s parent company, Hon Hai Precision (Chairman Liu Yangwei once said at the previous financial report presentation meeting that the relationship between Hon Hai and its customers was not formed in one or two days, and the company has also made continuous efforts to maintain a leading position in new technologies. < / P > < p > “if the industry is in full swing, it means that the industry still has a head start. If not, it means that the industry can’t go on. ” Liu Yangwei said that it is very natural for the industry to increase competitors. As long as it is benign competition, it will help the industry and become the driving force for industrial progress. He believes that the alliance of other manufacturers has limited impact on Foxconn. However, judging from the financial report, the revenue of Hon Hai Precision mainly comes from the fields of consumer and intelligent products, cloud network products, computer terminal products, components and other products, accounting for 36%, 30%, 27% and 7% respectively. From the trend point of view, the revenue of consumption and intelligent product line is in the decline channel. According to the reporter, affected by the epidemic, Hon Hai’s revenue in February was only NT $217.46 billion (about RMB 62.9 billion), down 18.13% year-on-year, the largest monthly decline since March 2013, and a new low since August 2011. Among them, the equivalence ratio of consumer and intelligent products, enterprise products and computing products decreased by 15%. According to the second quarter performance data released by Hon Hai Precision, the quarterly revenue was NT $1.13 trillion (about RMB 266.4 billion), a month on month increase of 21.38%, but a year-on-year decrease of 2.77%. Affected by the delay in the launch of new machines, Hon Hai expects a single digit increase in revenue in the third quarter, but a double-digit decline over the same period last year. However, in response to the rumors, Foxconn told reporters that the company’s success is based on the support it provides to a variety of customers who recognize that the company’s industry leadership is based on a number of factors, including the culture of innovation and the competitiveness of quality, productivity, workforce and global operations. It is reported that at present, the main OEM manufacturers of apple in China include Foxconn, Heshuo technology, Wistron group and BYD electronics. Among them, Foxconn, Heshuo technology and Wistron group provide iPhone OEM services for apple. According to the total revenue of Lixun precision in 2019 of 62.516 billion yuan, the volume is only 5% of Foxconn’s revenue of $178.065 billion in 2019. Judging from the market scale, the former still has a long way to go. Spontaneous combustion at a Guangzhou Motor vehicle intersection and other traffic lights in Shenzhen

By ibmwl