Here, we express our sincere gratitude to our customers, partners, and friends from all walks of life who have supported us! It is your trust, support, and care that have allowed us to create a wonderful 2023 together. At the same time, we also extend our highest respect to all LUSTERNESES and your families. It is your hard work and selfless dedication that enable LUSTER to maintain a positive and optimistic attitude in the face of challenges.

01

Market Customers and Solutions: Remarkable Achievements in Multiple Fields

Over the past year, LUSTER has centered its business around customers and aimed to promote the development of user industries, making significant contributions to various industries. In the 3C electronics, new energy, printing and packaging, and cultural metaverse with stereoscopic vision, which are the strategic focuses of the company, we have gathered our superior resources and worked collectively to achieve breakthroughs and remarkable results in current business.

In the field of 3C electronics, we have provided a large number of intelligent testing and production process solutions and products such as HyperTrain 8000 to top-tier customers in the industry, greatly improving their production efficiency and liberating hardworking laborers. We have also strategically partnered with top-tier customers in intelligent visual appearance inspection, achieving mass deployment from concept to reality. In the expansion of new display business, we have collaborated with BOE, Sharp, AUO, Tianma, and Truly to test car screens for Tesla, Mercedes-Benz, and BMW. At the same time, we have actively expanded into overseas markets, serving industry major customers with intelligent quality testing and management solutions, building reputation and influence! As a representative of China's machine vision industrial quality inspection, LUSTER appeared in a large-scale documentary series called "Made in China" on CCTV and was hailed by CCTV as the industrial version of "Li Zhu," bringing positive industry influence to the company!

In the field of new energy, LUSTER's industry-first online burr inspection system has been validated by customers, establishing a positive influence in the industry. The square appearance inspection equipment has achieved mass delivery. In the photovoltaic field, the newly developed photovoltaic cell inspection system has been validated by customers, solving industry challenges. The company, in collaboration with CATL and Anman Times, strives to overcome multiple technical challenges in intelligent appearance inspection through technological innovation.

In the direction of cultural metaverse with stereoscopic vision, LUSTER continues to enhance core capabilities such as motion capture, light field modeling, and XR virtual-physical fusion shooting. We deepen cooperation with major customers such as Migu and CCTV, yielding fruitful results. For three consecutive years, we have provided technical support for the shooting of XR programs for the CCTV Spring Festival Gala. The short film "Wang Bo's Return," created in collaboration with the CCTV National Laboratory, made its appearance at the World VR Conference. Leveraging AI hyper-realistic digital human technology, we have achieved highly detailed replication of digital humans at the level of 50-100μm hair thickness, receiving industry acclaim. Additionally, we have established a comprehensive metaverse ecosystem with Tsinghua University and China Mobile's Migu company, as well as established the MAC Metaverse Performance Technology Center at the Beijing Shougang Park Curling Hall. Furthermore, we have established the LUSTER Virtual Production Base in Malanshan and put it into operation. The 2023 China Metaverse Conference, jointly organized with the Metaverse Technology Committee of the Chinese Association for Artificial Intelligence, has achieved a complete success. As a contributing unit to the core technology of XR virtual-physical fusion for the "4K/8K Ultra HD TV Production and Presentation System and Industrial Application" project of the CCTV National Laboratory, we collectively won the first prize of the Science and Technology Progress Award from the China Electronics Society.

In the printing and packaging field, LUSTER actively serves the top 10 major customers, achieving rapid growth in performance, and making breakthroughs in international markets. We have partnered with YIYAO PRINTING to create a leading intelligent factory solution in the domestic Carton Packaging Industry, which has been implemented in Zhenjiang. We have also collaborated with Founder Group and GGSC to jointly serve HUNAN XINHUA PRINTING GROUP. Under the guidance of the Printing and Graphic Arts Association, the company has taken the lead in developing industry standards for intelligent visual quality inspection in offset printing.

In the fiber optics and optics field, we have provided the industry with the OCS all-optical exchange solution from the Intelligent Computing Center, which has been favored by the industry. In the life sciences field, we have launched the groundbreaking Sminer droplet digital PCR system, which enables absolute quantitative nucleic acid detection, contributing to the fields of life sciences and precision medicine.

02

Products and Technology: Accumulating strength, reaping abundant fruits!

LUSTER has achieved significant breakthroughs in multiple fields with its focus on "vision + AI + automation" products and core technologies. In 2023, we released more than 20 software and hardware products, delivering over 50,000 high-end vision devices to more than 3,000 customers worldwide, as well as nearly 20,000 intelligent vision components, systems, and equipment, helping customers improve quality, increase efficiency, and reduce costs. The company has applied for 292 patents, with a cumulative total of 1,449 applications.

In the field of advanced optical computing and imaging, our high-end vision device products have made remarkable progress. The CB1000 short-wave linear array camera has maintained a leading position in fields such as photovoltaics and semiconductors. The CB2000 short-wave infrared array camera has achieved breakthroughs in the laser industry. Intelligent vision systems and equipment have made new breakthroughs, and the VisionGLUE Dispensing & Inspection Integrated Vision Inspection System has been well received in the 3C business market. The FZMotion motion capture system has been upgraded to stably support over 100 smooth live broadcasts of digital humans. The InFision virtual-physical fusion production system has been successfully applied in major events such as the CCTV Spring Festival Gala, the National People's Congress, and the Golden Rooster Film Festival. The LB6000 series 150 million pixel global shutter camera has won the National Instrumentation Gold Medal, becoming a star product in the industry.

In the frontier technology fields of image artificial intelligence and large-scale models, we have utilized deep learning technology to create the F.Brain platform, which has been applied in 15 projects across industries such as printing and packaging, new energy, and 3C. At the same time, we have launched an intelligent equipment cockpit, enabling equipment maintenance prediction and pre-knowledge. We have also accumulated a database and model base of tens of millions of industrial data. LUSTER's Knowledge and Reason Research Institute and the Metrology Institute's Optoelectronic Imaging and Display Metrology Laboratory have cooperated to tackle industry challenges together. In the field of automation, we have overcome bottleneck processes such as soft wire connection in the 3C manufacturing process and 0.8mm micro screw locking, striving to solve the key technological challenges in the last millimeter of intelligent manufacturing factories.

In 2023, the company was granted 202 authorized patents, including 60 invention patents, and obtained a total of more than 700 authorized patents. We participated in the formulation and release of 4 industry and group standards, accumulating a total of 18 standards. We participated in the writing of three white papers, including the "White Paper on the Development of AI Industrial Quality Inspection Applications," "White Paper on AI Vision Empowering Intelligent Manufacturing," and "2023 Silicon Carbide (SiC) Industry Research White Paper," totaling nine white papers. We have been honored with the first prize of the Science and Technology Invention Award from the China Graphics and Image Society, the leading service organization in intelligent manufacturing in Jiangsu Province, the 2023 Typical Case of Artificial Intelligence Integration and Security Application - Navigation Type, and the 2023 Beijing Artificial Intelligence Industry Empowerment Typical Case - Large-scale Model Type, among other national and provincial honors. We have also undertaken five key technology projects from the Ministry of Science and Technology and the Ministry of Industry and Information Technology.

LUSTER's Knowledge and Reason Research Institute's vision pre-training large-scale model technology took the lead in accuracy and efficiency in the recognition of 3C industrial images in the IEEE Conference on Computer Vision and Pattern Recognition CVPR 2023 Industrial Quality Inspection Challenge, winning the first place in the VISION Track competition. The lithium battery cylindrical cell appearance inspection equipment and the VisionGLUE Dispensing & Inspection Integrated Vision Inspection System have won the Innovation Gold Award from "Vision Systems Design" magazine.

03

Promoting talent development within the organization while making progress

2023 is a crucial year for the company's human resources development. With the mission of undertaking business strategy implementation and serving major clients, significant improvements have been made in the field of human resources.

In terms of IPD2.0 transformation and meeting the organizational capability demands of major clients, further optimization and design have been completed for the business processes and organizational structure of product development. Clarifying the organizational responsibilities and authority relationships among different departments has promoted the efficient utilization of human resources, laying an important foundation for business breakthroughs in 2024. Through a retrospective analysis of the customer service process, key areas for improvement that affect customer satisfaction have been identified. Talent development strategies and qualification construction projects have been implemented based on role cognition, learning what is necessary for the role, assessing knowledge acquired, and combining training with practical experience. These initiatives aim to enhance organizational capabilities.

In 2023, the company has restructured its job system, establishing seven job families, 34 job categories, and 210 specialized positions, as well as over 200 management positions. This provides a foundation for future employee job matching based on personal job levels and salary rewards corresponding to their levels. This system will effectively support the evaluation and distribution of value, stimulating organizational vitality.

In terms of cadre development, the company has released the "LUSTER Cadre Management System 4.0", which improves the concept and requirements of cadre management. This will effectively support the development and appointment of more outstanding cadres and high-potential reserve talents. At the beginning of the year, the cadre succession plan was initiated, identifying over 100 key positions and more than 200 high-potential cadre talents. Thirty-five new cadres were boldly promoted and utilized, laying the foundation for cultivating and developing more top talents.

Regarding talent development, opportunities for growth and learning have been provided to 222 cadres through programs such as the Talent Elite Plan, BU/SPDT General Manager's Business Management Series, and grassroots cadre training camps. Training camps for PDT/PM/SE have been completed for 93 individuals. Additionally, over 100 recent graduates were hired in 2023, and training programs were implemented for their onboarding and integration into the company. These efforts provide momentum for the company's long-term development.

04

Outlook for 2024: Mining Your Potentials!

In the Year of the Dragon, we will focus on quality and leverage the power of intelligence. We will continue to innovate in optics, computational imaging, and AI technologies to enhance our products. We will serve our major clients with exceptional solutions and improve our organizational efficiency. Let's embrace challenges, seize opportunities, and create a brighter future together.

Happy New Year!