Automotive electronics business surges! Luxshare Precision's revenue and profit both grow by about 24% in 2025, setting new historic highs.

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Luxshare Precision’s 2025 performance continued its high-growth trend. Driven by multiple businesses including consumer electronics, data centers, and automotive, both revenue and profit hit record highs. The company’s asset scale expanded sharply, and its competitiveness in the global electronics manufacturing supply chain has continued to rise.

For the full year of 2025, the company achieved revenue of 332.344 billion yuan, an increase of 23.64% year-on-year; net profit attributable to shareholders was 16.599 billion yuan, up 24.20% year-on-year. The net profit excluding non-recurring items was 14.169 billion yuan, up 21.16%, maintaining solid earnings quality.

The automotive electronics business posted revenue of 39.255 billion yuan, accounting for 11.81% of total revenue, a sharp year-on-year increase of 185.34%, becoming the core engine driving company growth. This was mainly due to the acquisition and integration of Germany’s Leoni Group, as well as the company’s own products such as smart cockpits and intelligent driving domain controllers quickly entering clients’ systems.

The communications and data center business achieved revenue of 24.568 billion yuan, accounting for 7.39% of total revenue, an increase of 33.81% year-on-year. The surging demand for AI computing infrastructure drove rapid growth in orders for high-speed interconnections, liquid cooling, power supplies, and other products.

Accelerating performance throughout the year, with a particularly strong contribution in the second half

Looking at quarterly distribution, the company’s performance was clearly concentrated in the second half of the year. Revenue in the third and fourth quarters were 96.411 billion and 111.430 billion yuan respectively, together accounting for about 62% of the total annual revenue, reflecting the significant boost from the consumer electronics peak season.

In terms of net profit, the fourth quarter posted a net profit attributable to shareholders of 5.081 billion yuan, the highest single quarter of the year, while the third quarter was 4.874 billion yuan. These two quarters together account for about 60% of the annual net profit. In comparison, net profit in the first and second quarters were 3.044 billion and 3.601 billion yuan respectively, showing a clear divide between the two halves of the year.

Non-recurring net profit also showed a steady sequential increase, climbing from 2.409 billion yuan in the first quarter to 4.627 billion yuan in the fourth quarter, demonstrating continuous improvement in the company’s main business profitability and robust intrinsic growth momentum beyond seasonal fluctuations.

Cash flow declines year-on-year, asset-liability ratio rises slightly

Despite strong profit performance, net cash flow from operating activities was 17.325 billion yuan, a year-on-year decrease of 36.11% (compared to 27.117 billion yuan in 2024). Breaking it down quarterly, the first quarter saw a net outflow of 6.692 billion yuan, with annual cash flow being mainly supported by the fourth quarter’s 13.847 billion yuan.

As for the asset-liability ratio, it was 66.07% at the end of 2025, up 3.91 percentage points from 62.16% at the end of 2024, in line with the rapid expansion of total assets.

However, the company’s interest coverage ratio was 19.85 times, slightly higher than 19.64 times in 2024, indicating overall stable debt repayment capability. EBITDA to total debt ratio was 32.80%, down 9.79 percentage points from last year.

In terms of bond credit ratings, United Credit Rating Co., Ltd. in June 2025 maintained the company’s long-term issuer credit rating and convertible bond credit rating at AA+, with a stable outlook.

Data center and automotive electronics businesses drive growth

The company’s three core business segments all achieved growth to varying degrees, with the business structure continually optimized.

Consumer electronics business realized revenue of 264.266 billion yuan, accounting for 79.52% of total revenue, up 13.37% year-on-year, maintaining steady development as the core base. Driven by emerging demand for AI phones and AI wearable devices, the company’s market share in core client segments continued to increase.

Automotive electronics business realized revenue of 39.255 billion yuan, with its proportion of total revenue rising to 11.81%, a sharp year-on-year increase of 185.34%, becoming the main growth driver, mainly benefiting from the acquisition and integration of Germany’s Leoni Group, as well as the quick introduction of products such as smart cockpits and intelligent driving domain controllers into clients’ systems.

Communications and data center business achieved revenue of 24.568 billion yuan, accounting for 7.39% of total revenue, up 33.81% year-on-year. Explosive demand for AI computing infrastructure fueled rapid growth in orders for high-speed interconnections, liquid cooling, power supplies, and other products.

From the perspective of profitability, the data center business had the highest gross margin at 18.40%, up 2 percentage points year-on-year; automotive electronics gross margin was 15.75%, remaining basically stable; consumer electronics gross margin was 10.64%, up 1.16 percentage points year-on-year. The rising proportion of high-margin business revenue contributed to overall profitability improvement.

In terms of regional structure, domestic sales revenue was 49.136 billion yuan, up 47.43% year-on-year, significantly outpacing the 20.28% growth of overseas sales. Domestic market expansion saw clear results, though overseas sales still accounted for 85.22% of total revenue, highlighting the advantages of global layout.

During the reporting period, the company launched new embodied intelligent dexterous hand products and promoted mass production of intelligent chassis systems such as brake-by-wire and steer-by-wire in its automotive business, continually expanding product technology boundaries into high value-added fields.

Concentrated equity structure, continued increases by controlling shareholders

In terms of equity, the largest shareholder Luxshare Ltd. holds 37.49% of shares, totaling 2.732 billion shares, of which about 1.011 billion shares are pledged.

Hong Kong Securities Clearing Company holds 7.25%, as the second largest shareholder. Among the top 10 shareholders, multiple CSI 300 ETF funds and entities related to Central Huijin Asset Management appear on the list.

One of the actual controllers, Vice Chairman Mr. Wang Laisheng, increased his holding by a total of 14,626,447 shares via concentrated bidding from May 2022 to September 2025, with the total increase amounting to 501 million yuan (excluding transaction fees).

The three increases occurred in May 2022, January 2024, and September 2025, fully reflecting management’s strong confidence in the company’s future value and effectively boosting market expectations.

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