Report Date: April 22, 2026

Report Summary: This report aims to conduct an in-depth analysis of the underlying nature and implications of the current global wave of across-the-board price increases in the electronics supply chain. Drawing on Shenzhen LeaKin Technology Co., Ltd.’s (hereinafter referred to as “LeaKin Technology” or “our company”) 13 years of technological expertise, customer base, and vertical integration capabilities, the report proposes a systematic strategy for transforming industry crises into opportunities for growth. The ultimate goal is to collaborate with our customers to move forward together and create new prospects amid changing circumstances.

I. An Essential Interpretation of the Industry Price-Hike Wave: A Stress Test and a Prelude to Structural Restructuring

The across-the-board price increases spanning the entire industrial chain, which have persisted since the end of 2025, are not a short-term fluctuation but rather the prelude to a profound stress test for the industry and a reshaping of the market landscape. Its core characteristics are:

A Dual-Helix Rise Driven by Costs and Demand: The rigid cost increases in upstream raw materials—such as precious metals, wafers, and basic chemical materials—coupled with robust demand from downstream sectors like AI, automotive electronics, and industrial control, have created a “dual-helix” price uptrend that exerts pressure across the entire value chain, from design and manufacturing to packaging, testing, distribution, and end applications.

The Inflection Point from “Resource Competition” to “Value Competition”: As “stockouts and price hikes” become the norm, supply-chain stability and cost advantages are eroded, and the core of competition is shifting from traditional “resource-acquisition capabilities” to the ability to deliver systematic “value creation” for customers.

A window of opportunity for a profound restructuring of industry-chain relationships: customers’ concerns have expanded beyond the traditional focus on “price” and “delivery time” to encompass how to optimize BOM costs, ensure supply security, and accelerate product iteration to maintain competitiveness. This presents a strategic window for partners with deep technical expertise and robust resource-integration capabilities to deepen their engagement and elevate their partnerships.

II. LeaKin Technology’s Core Competitive Advantage: The Confidence Built Over Thirteen Years of Experience

In the face of this wave of change, LeaKin Technology is by no means starting from scratch. Thirteen years of relentless dedication have enabled us to build unique competitive advantages for tackling these challenges:

In-depth technical expertise and solution-delivery capabilities: With more than a decade of experience in technology monitoring and application support, we have developed a profound understanding of component characteristics, alternative logic, and design optimization. We go beyond mere “buying and selling” to excel at “integration” and “optimization.”

Stable Customer Relationships and a Trusted Network: The customer trust built up over years of service is the most valuable asset in times of crisis. We have an in-depth understanding of our clients’ business models and pain points across various industries, which enables low communication overhead and rapid response times.

Vertical Resource Integration and Supply Chain Resilience: As a specialized, industry-focused enterprise, we have established a multi-tiered, comprehensive network of collaborative relationships with upstream OEMs, distributors, and solution providers, enabling us to mobilize resources more effectively and achieve greater information transparency. This allows us to build a more resilient supply assurance system.

III. LeaKin Technology’s Strategic Response: Turning Pressure into Momentum and Growing Together with Customers

Based on the foregoing analysis and its own strengths, LeaKin Technology has resolved to shift from passive response to proactive leadership by implementing a dual-engine strategy of “cultivating both internal and external capabilities while delivering value-driven empowerment.”

(1) Strengthening Internal Capabilities: Building Endogenous Momentum for Cost Absorption and Value Creation

Design Optimization and Value-Added Solutions:

Establish an “Anti-Price-Hike Technical Support Team” to proactively provide customers with cost-reduction substitution solutions for critical materials and design optimization recommendations (e.g., by adjusting circuit designs to incorporate higher-cost-performance components).

We promote modular and platform-based solutions that, through our pre-designed and integrated offerings, help customers reduce the number of items in their BOMs, thereby lowering management complexity and procurement risk.

Strengthen the exploration of synergistic value between software and algorithms, and enhance product performance and added value through integrated hardware–software solutions, thereby mitigating the pressure of hardware cost inflation.

Supply Chain Management Upgrade:

Dynamic Tiered Stocking: Leveraging data analytics to establish strategic, dynamic safety stock levels for critical and in-demand materials, with priority given to ensuring supply for core customers.

Supply chain diversification: Accelerate the validation and onboarding of high-quality domestic brands and second-tier international brands to provide customers with a broader portfolio of optimized “performance–price–delivery” solutions, thereby reducing reliance on a single supply source.

Demand Forecasting Collaboration: Establish closer demand forecasting and inventory information-sharing mechanisms with key customers to enhance the accuracy and responsiveness of supply chain planning.

(2) Proactively “Empowering” External Partners: From Cost-Conscious Collaborators to Value-Driven Growth Partners

Positioning Transformation: From Supplier to “Supply Chain Strategy Consultant”:

Proactively deliver industry price-increase analysis reports, market trend forecasts, and strategic recommendations to clients, helping their decision-makers cut through the fog and formulate effective procurement and product strategies.

We offer value-added services such as “BOM Cost Health Diagnosis” and “Supply Risk Assessment” tailored to clients’ specific projects.

Deepen cooperation and build barriers:

Joint R&D and Early Engagement: We invite key customers to participate in joint evaluations of new solutions and platforms led by our company, enabling us to identify and lock in optimization strategies at the earliest stages of product definition and thereby establish long-term technological collaboration barriers.

Value bundling and shared risk: For strategic cooperation projects, we will explore more flexible and in-depth collaboration models to create a community of shared interests in supply assurance and cost control, thereby strengthening customer loyalty.

Comprehensive resource integration: Leveraging our company’s vertically integrated industrial capabilities, we not only supply components but also connect customers with critical industry resources such as testing and certification, technical support, and production capacity coordination, thereby serving as an indispensable “resource interface” for our clients.

IV. Ultimate Goal: Navigate the Cycle and Lead a New Paradigm

LeaKin Technology fully recognizes that this wave of price increases will eventually subside, but the rules of market competition will be permanently altered. Our ultimate goal is by no means merely to help our customers “get through the current challenges”; rather, it is:

Co-Developing Capabilities with Customers: In the joint effort to navigate the wave of price increases, our company and our customers have collaboratively strengthened our core competencies in technology selection, solution optimization, and supply-chain management—capabilities that will serve as the most robust “moat” once the tide recedes.

Seizing the Strategic High Ground in the Post-Rising-Prices Era: As the industry returns to normal, companies that demonstrate exceptional resilience, intrinsic value, and trusted partnerships during times of crisis will capture greater market share and earn deeper customer trust. LeaKin Technology is committed to becoming customers’ preferred—and ultimately their first—strategic partner in the “post-price-increase era.”

Establishing a New Market Position: Through this round of transformation, LeaKin Technology will evolve from an outstanding R&D company specializing in embedded solutions and electronic components into an industry value-chain enabler platform whose core competitive advantages lie in deep technical support and robust resource integration, thereby securing a more proactive and advantageous strategic position in the future market landscape.

Conclusion:

The wave of price increases is both a biting cold wind and a crucible that tests true strength, weeding out the weak and allowing the strong to prevail. Building on 13 years of accumulated experience, guided by a steadfast strategy and driven by the commitment to grow together with our customers, LeaKin Technology will proactively rise to the challenge and turn adversity into opportunity. We firmly believe that, through comprehensive value enhancement—both internally and externally—LeaKin Technology, in close partnership with our clients, will not only navigate this cycle safely but, once the tide recedes, emerge even stronger to jointly shape the new market landscape!

Shenzhen LeaKin Technology Co., Ltd.

Management Committee

April 22, 2026