"Apple supply chain leader Luxshare Precision passes HKEX hearing"
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According to a disclosure by the Hong Kong Stock Exchange on June 23, Luxshare Precision Industry Co., Ltd. has officially passed its Main Board listing hearing, with CITIC Securities, Goldman Sachs, and CICC serving as joint sponsors.
As of the close on June 23, Luxshare Precision’s A-shares were trading at 69.36 yuan per share, with a total market capitalization of 507.594 billion yuan. This means that the leading domestic precision manufacturing enterprise is just one step away from having dual “A+H” financing platforms.
Against the macro backdrop of cyclical fluctuations in consumer electronics and the global reshaping of supply chains, Luxshare Precision’s post-hearing data set details how its business structure has evolved from a high base of performance, how it has mitigated reliance on key customers, and its strategies for shifting production capacity to cope with geopolitical risks.
The continuous rise in financial data is the core justification for Luxshare Precision’s development of overseas listing channels this time.
The hearing documents show that from 2023 to 2025, the company’s operating income amounted to 231.905 billion yuan, 268.795 billion yuan, and 332.344 billion yuan, with annual profits of 12.243 billion yuan, 14.579 billion yuan, and 18.170 billion yuan, showing steady year-on-year profit increases of 19.1% and 24.6%. The latest unaudited quarterly data show that in the first quarter of 2026, its revenue and profit reached 83.9 billion yuan and 3.7 billion yuan, respectively, with strong growth momentum remaining.
However, what’s more newsworthy than overall scale expansion is the real adjustment of its revenue structure.
For a long time, the market viewed Luxshare Precision as purely a consumer electronics OEM giant, but the revenue share from its consumer electronics business has declined from 88.3% in 2023 to 79.5% in 2025.
Meanwhile, automotive electronics and communications/data center businesses are becoming its second growth curve. Especially the automotive electronics sector, whose revenue surged from 9.252 billion yuan in 2023 to 39.255 billion yuan in 2025, with its share rising from 3.9% to 11.8%. This transformation from a single consumer electronics track to cross-industry vertical integration demonstrates management’s strategic intent to smooth out fluctuations of a single industry cycle.
This structural transformation is directly related to the market’s most concerned issue: high client concentration.
During the track record period, the company's revenue derived from its largest customer, “Customer A/Supplier A”, accounted for 75.2%, 70.7% and 56.7%, respectively. Despite the absolute amount still reaching 188.4 billion yuan in 2025, a nearly twenty percentage point decline in share shows that Luxshare Precision has made progress in diversifying its customer matrix.
The potential risk of client concentration is that, if a core client adjusts its supply chain strategy or faces terminal sales pressure, the company’s financial health would be directly impacted.
To address this, Luxshare Precision has frequently used external mergers and acquisitions in recent years to break the deadlock.
Between 2024 and 2025, the company completed several significant capital operations, including acquiring RF device-focused Vision business, and securing part of Wingtech’s consumer electronics ODM and OEM business, thereby consolidating its core competitiveness in customized consumer electronics and enriching its customer structure.
In the automotive sector, Luxshare Precision acquired the German century-old automotive wiring harness giant LEONI, directly entering the core supply chain of major European carmakers, thus obtaining technical and market resources for automotive wiring harness systems and solutions.
Accompanying the client restructuring is its global capacity restructuring to cope with a complex international trade environment.
As a multinational enterprise highly dependent on overseas markets, the share of sales revenue from customers outside mainland China accounted for as high as 84.5%, 84.0%, and 82.4% from 2023 to 2025, with the share from U.S. customers remaining at around 30%.
In light of frequent geopolitical friction in recent years and the reality of additional tariffs by some countries on Chinese products, Luxshare Precision has adopted a global localized supply chain strategy. By the end of 2025, the company had established 105 production bases worldwide, spanning Asia, Europe, the Americas, and Africa. This vast capacity network effectively hedges against the risks of trade barriers from single production locations.
Financial data validate the effectiveness of this capacity transfer strategy: in 2025, revenue derived from products sold from China to the U.S. and exposed to high tariff risks accounted for only 1.49% of total income, while 78.3% of products sold to the U.S. were already manufactured at its Vietnam base, which has bilateral tariff advantages.
Management confirmed in the documents that tariff fluctuations have not had a significant adverse impact on the firm's operating performance, order acquisition, or customer retention, and that major U.S. clients have, in accordance with the agreements, borne the related tariffs themselves.
Although the business restructuring and global capacity layout have achieved significant results, continued high capital expenditures and acquisitions have made Luxshare Precision face objective challenges in its funding chain.
The post-hearing documents show that, as of December 31, 2025, the company’s short-term borrowings reached 70.3 billion yuan, accounting for 68.8% of its total debt, and its net current assets decreased by 5.1 billion yuan compared with the end of 2024, mainly due to increased short-term borrowing. High dependence on short-term borrowing to maintain daily operations and expansion unavoidably exposes the company to interest rate volatility and refinancing risks.
In this context, building a Hong Kong equity financing channel and attracting international capital has become particularly urgent.
According to the disclosure, the net proceeds from this Hong Kong listing will mainly be used to expand and upgrade its existing global production bases, invest in the R&D of advanced intelligent manufacturing and green manufacturing technologies, seize investment and acquisition opportunities in quality upstream and downstream assets, and repay part of interest-bearing bank borrowings to optimize its asset-liability structure.
Overall, Luxshare Precision’s Hong Kong listing is not only a dual-channel trial at the capital level but also a key move as it seeks in-depth engagement in the global industrial chain competition at a market value threshold of 500 billion yuan. The follow-up efficiency of its cross-border asset integration and its ability to release profits from new businesses will become core indicators continually scrutinized by the capital market.
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