2024-04-29-上交所科创板-Corporate_Value_and_Return_Enhancement_Action_Plan_2024_16页_3mb

LUSTER LightTech Co., Ltd. 2024 Quality, Efficiency and Returns Enhancement Action Plan

This document outlines LUSTER's 2024 plan focused on business development, technological advancement, organizational optimization, and shareholder returns.

I. Key Focus Areas

1. Business Development & Value Creation:

   • Core Strategy: Concentrate on primary business development centered around "AI+ Vision".
   • Objective: Achieve sustainable and high-value growth, enhance investor returns.
   • Approach: Optimize machine vision revenue structure, execute the development plan for the Industrial Artificial Intelligence Taihu Industrial Base, empower traditional industries, and address labor cost pressures.
   • Metrics: Showcase steady revenue growth (CAGR 16.6%), strong revenue share (71%), and portfolio diversification.

2. Technology Improvement & Competitive Edge:

   • Core Strategy: Drive innovation, integrate AI and vision, leverage four core underlying technologies (Advanced Imaging, Intelligent Algorithms, Intelligent Software, Intelligent Automation).
   • Objective: Foster quality productive forces, reshape competitive advantages ("new quality productive forces"), lead industrial transformation.
   • Approach: Increase R&D investment (R&D Expense Ratio 16.3%, CAGR 31%). Develop new products, pursue major awards (2023), secure patents (Awarded 176), and enhance intellectual property protection.
   • Action: Strengthen technology transformation into product applications, develop deep learning models, ensure technological leadership globally. Refer to detailed actions under intelligent algorithms, software, and automation.

3. Business Management & Operational Efficiency:

   • Core Strategy: Optimize management systems, improve corporate governance, enhance talent motivation, and fulfill compliance.
   • Objective: Build steady growth and high-quality management ("trustworthy and highly reputable"). Establish "Stable Stock Price" as the core value.
   • Approach: Implement the IPD system, upgrade information technology, improve information quality and corporate transparency. Refine incentive mechanisms, maintain board expertise, and strengthen risk control awareness. Manage "Key Minority Personnel" responsibilities and performance.

4. Standardized Operations & ESG Governance:

   • Core Strategy: Standardize operations, enhance compliance, improve investor relations.
   • Objective: Build a trustworthy and highly reputable company, qualify as an excellent listed enterprise.
   • Approach: Ensure information disclosure quality, actively promote investor relations, strengthen internal controls, and incorporate ESG governance.

5. Investment Value & Return Enhancement:

   • Core Strategy: Align endogenous and exogenous development, expand global market presence.
   • Objective: Comply with regulations, utilize capital market tools ("responsible and high-return").
   • Approach: Manage market value and capital allocation (14 equity investments), support strategic layouts through investment and M&A abroad.

6. Shareholder Returns:

   • Core Strategy: Focus on shareholder returns and profit-sharing.
   • Objective: Build a profit-sharing and high-return company.
   • Approach: Prioritize cash dividends (proposed amount for 2023: RMB 3.86 million), implement stock repurchase plans (87M RMB for 2022 plan, RMB 50.4M shares repurchased by March 31, 2024, RMB 3.86M cash dividend for 2023 pending SHM approval).

Summary Conclusion

LUSTER's 2024 Action Plan focuses on enhancing its long-term financial health and market position by consolidating its core "AI+ Vision" business, aggressively investing in R&D and technological leadership (AI, automation, underlying technologies), optimizing its organizational structure and governance (ESG, IT, training, compliance), adhering to high standards of operation and disclosure, and directly engaging with shareholders through dividends and stock buybacks.