Based on 2024 sales statistics, on average one in every two smartphones, one in every three smart wearables, and one in every five smart vehicles globally incorporates products from Luxshare Precision (55.410, 2.30, 4.33%) (002475.SZ). This data objectively underscores the market penetration breadth of this precision manufacturing enterprise.

On August 25, 2025, Luxshare Precision released its 2025 semi-annual report.

During the reporting period, the company achieved operating revenue of RMB 124.503 billion, representing a year-on-year increase of 20.18%. Net profit attributable to shareholders of the listed company reached RMB 6.644 billion, up 23.13% year-on-year, with profit growth outpacing revenue growth. Concurrently, the company's preliminary earnings forecast for the first three quarters indicates an expected net profit of RMB 10.89 billion to RMB 11.344 billion for the period, representing a 20% to 25% increase year-on-year.

The sustained growth in financial metrics stems from the company's ongoing optimization of its business structure.

Since 2025, while continuously strengthening its consumer electronics business as the “foundation,” Luxshare Precision's forward-looking investments in the communications and data center, and automotive sectors have become core growth drivers (10.500, -0.45, -4.11%) propelled by artificial intelligence technology trends.

Currently, Luxshare Precision has formally submitted its listing application to the Hong Kong Stock Exchange. This latest strategic move aims to provide more robust capital support for the company's next phase of global expansion, thereby opening a new chapter in its development.

High Growth in Communications and Automotive Businesses, Solid Foundation in Consumer Electronics

Luxshare Precision's performance growth in the first half of 2025 clearly demonstrates a healthy structure driven by synergistic momentum from both established and emerging segments.

Emerging business segments, represented by AI computing infrastructure and automotive electronics, demonstrated high growth resilience, providing core momentum for the company's overall upward trajectory. Meanwhile, the substantial consumer electronics business delivered a solid foundation through deep integration with AI trends and continuous expansion of its operational boundaries.

The communications and data center business emerged as a key contributor to growth in the first half.

During the reporting period, this segment achieved operating revenue of RMB 11.098 billion, representing a year-on-year increase of 48.65%. This growth is directly linked to the accelerated global development of AI computing infrastructure. Luxshare Precision noted in its financial report that the explosive growth of artificial intelligence applications continues to drive the construction of global data centers and the generational upgrade of network architectures, fueling a surge in demand for high-speed interconnectivity within data centers.

Against this backdrop, leveraging its long-term technological expertise in the data center sector, Luxshare Precision provides customers with integrated “copper, optical, electrical, thermal” solutions spanning high-speed copper cabling, high-speed backplane connectors, high-speed optical modules, server power supplies, and thermal management systems.

Technologically, the company's product development is well-defined and industry-leading. In electrical connectivity, its 224G high-speed cables have entered mass production, while 448G products are undergoing pre-research with multiple major clients. Management stated during investor meetings that Luxshare has evolved from a follower to a recognized technology leader in high-speed copper connectivity.

In optical connectivity, 800G silicon photonics modules have entered mass production, while 1.6T products are undergoing customer validation. The company has also initiated development plans for subsequent 5nm products. Amid rapidly escalating AI server power consumption making thermal management a critical bottleneck, the company's thermal management business has achieved breakthroughs. Liquid cooling solutions have transitioned from forward-looking development to large-scale commercialization, with revenue and profit expected to double by 2025. Power management module products have secured certification from key North American clients and entered mass production.

Since 2025, Luxshare Precision has continuously expanded its market share among leading global cloud service providers (CSPs), chip customers, and equipment manufacturers, with multiple high-speed, high-value-added products now achieving mass delivery.

The automotive business has emerged as Luxshare's fastest-growing segment.

In the first half of 2025, the company's automotive connectivity products and precision components generated revenue of RMB 8.658 billion, representing a substantial year-over-year increase of 82.07%. Luxshare Precision's role in the automotive sector is not “building cars,” but rather focusing on the “vascular and nervous systems” of vehicles, positioning itself as a Tier 1 core supplier.

Leveraging its long-term expertise in precision manufacturing and system integration, Luxshare has successfully achieved cross-sector technological and operational synergy. The company's automotive business has now entered a sustained “harvest period” spanning multiple years. In its product lines, automotive wiring harnesses continue to advance in high-voltage and high-speed applications. Multiple new projects secured in 2024 will enter mass production sequentially starting in 2025. For intelligent cockpits and advanced driver assistance systems, alongside EMS-model projects, self-developed products have also secured orders from leading customers, with bulk shipments expected in Q4 2025.

Company management disclosed that its secured projects in this sector rank second globally. The newly established intelligent chassis product line in 2024 is projected to achieve its first revenue breakthrough in 2025, while the powertrain system has already achieved stable mass supply. Through the successful acquisition and integration of Germany's Leoni Group, the company has successfully entered the supply chains of top global automakers, continuously expanding its product portfolio and customer base.

In its interim report, Luxshare stated that leveraging its unique operational strategy—a diversified product matrix, local R&D, and global delivery—Luxshare Precision has become the preferred Tier 1 partner for supporting Chinese brands' global expansion and serving worldwide customers.

 

As the company's “core business,” the consumer electronics segment delivered steady performance in the first half of 2025, achieving operating revenue of RMB 97.799 billion, a year-on-year increase of 14.32%. This robust growth stems from a new innovation cycle driven by AI.

The accelerated adoption of terminal products like AIPCs, AI smartphones, and smart wearables has ignited a new wave of market enthusiasm. Leveraging its long-established collaborative development mechanisms with core clients, Luxshare Precision continues to intensify investments in the integrated development of new materials, technologies, and processes. This enables the company to provide global brand clients with one-stop services spanning components, modules, and system solutions.

In the first half of 2025, Luxshare completed the acquisition of equity and assets in certain subsidiaries of Wingtech Technology (47.100, -2.22, -4.50%). The acquired assets primarily focus on consumer electronics system integration for non-Apple clients, a move that will help Luxshare expand its broader client portfolio.

Preliminary deployments extend beyond this scope. Luxshare is deepening collaborations with clients in emerging sectors including AR/VR, AI glasses, consumer-grade 3D printing, and robotics.

During the mid-year earnings briefing, Luxshare Precision's management stated that all leading brands in the AI sector are already its clients. The company will also allocate resources to provide strategic support for promising AI edge brands and products with future potential.

Integration Capabilities and Capital Operations Underpin Long-Term Development

If the synergistic development of its three major business segments constitutes the “hard power” driving Luxshare Precision's growth, then its exceptional global operational capabilities, M&A integration expertise, and forward-looking capital market strategies collectively form the “soft power” and strategic safeguards enabling the company to navigate economic cycles and achieve long-term sustainable development.

Facing a complex global macroeconomic landscape and persistent geopolitical uncertainties, Luxshare Precision's global manufacturing network serves as a “moat” safeguarding supply chain resilience.

During investor communications, Luxshare Precision explicitly stated that it has fully considered the impact of external factors such as tariff policies and made corresponding preparations. The foundation of its response strategy lies in its manufacturing network spanning 29 countries and 105 production bases worldwide. Beyond multiple core campuses in mainland China, the company operates production facilities in Vietnam, Malaysia, Indonesia, Thailand, Mexico, Romania, and other locations.

These facilities leverage their geographical advantages to flexibly align with customer market demands and deliver global manufacturing services. Management emphasized that the company's production capacity spanning Southeast Asia, the Americas, and Europe enables it to calmly navigate tariff impacts while maintaining industrial competitiveness.

Exceptional post-merger integration and operational enhancement capabilities represent another core competitive edge distinguishing Luxshare Precision from traditional manufacturers.

During investor discussions, Chairman Wang Laichun likened this process to “solving a math problem.” He explained that across different regions, as long as the industry and business model align, extensive simulation exercises can swiftly identify operational differences and key areas for improving labor efficiency. This systematic management methodology has been thoroughly validated in two major integrations in recent years. For the integration of Germany's Leoni Group, Luxshare Precision collaborated with Leoni's senior management to optimize corporate governance structures, enhance organizational efficiency, and advance the company toward a target management model.

The post-integration outcomes were remarkable. Company management disclosed: “Employee morale is soaring, team confidence is growing daily, all management metrics are trending positively, and customers have provided enthusiastic feedback. We anticipate achieving our operational targets ahead of schedule.” The successful integration of Leoni not only boosted its own profitability but also established it as a vital platform for Luxshare Precision to empower global automotive clients and support Chinese automakers' international expansion.

The integration of Wingtech's system integration business has also yielded results exceeding expectations. Following Luxshare Precision's involvement, vertical integration analysis of the component supply chain and modular optimization in product development significantly strengthened team cohesion and enhanced customer recognition. In the home appliance sector, clients acknowledged the progress made over the past six months, resulting in a two- to threefold increase in designated projects compared to the initial takeover. Company management summarized: “The performance of both the Lapp and Wingtech teams that have joined Luxshare has exceeded our expectations.”

Based on a clear strategic roadmap and robust business growth, Luxshare Precision has embarked on a new capital market deployment.

On August 18, 2025, the company submitted an application to the Hong Kong Stock Exchange for the issuance of overseas-listed shares (H-shares) and listing on the Main Board.

This move is widely viewed as a forward-looking strategic initiative to secure resources for the next phase of global expansion, undertaken at a peak performance period with a well-defined strategic roadmap. According to the company's publicly disclosed application materials, the proceeds from this Hong Kong listing will be allocated to specific investment targets. On one hand, the funds will be used to expand production capacity and upgrade manufacturing facilities for the automotive electronics business. This includes focusing on core products such as automotive wiring harnesses, domain controllers, hardware for intelligent driving assistance systems, and intelligent chassis solutions to solidify the company's leading position in this sector.

On the other hand, the funds will be used to increase production capacity and upgrade manufacturing facilities for its consumer electronics business. This includes expanding its distributed production network, strengthening global service capabilities, and mitigating risks arising from trade friction. Additionally, the raised capital will provide robust support for upstream and downstream integration across all business segments. This capital operation underscores Luxshare Precision's increasingly solidified industry position.

According to Frost & Sullivan data, Luxshare ranked fourth globally and first in mainland China within the precision smart manufacturing solutions industry based on 2024 revenue. It has consecutively made the Fortune Global 500 list from 2023 to 2025. This Hong Kong IPO represents a strategic capital operation by the global leader to align with its worldwide standing.

At the 2025 mid-year investor briefing, Chairman and CEO Wang Laichun summarized the company's developmental phase: "From its pre-IPO years through its first 15 years post-listing, Luxshare has consistently focused on executing its core responsibilities over these 18 years. Having evolved through this journey, I believe Luxshare is now in its prime developmental stage. While geopolitical policy environments present challenges, this is precisely the optimal moment for the company to demonstrate its capabilities. I can clearly sense that Luxshare's development direction for the next 5 to 10 years is well-defined."

This assessment aligns with the long-term vision outlined in the company's Hong Kong IPO prospectus. Looking ahead, Luxshare Precision aims to: “Resolutely invest in cutting-edge technologies, empower cross-industry innovation, continuously break through core technological barriers, and relentlessly push industry boundaries. We aspire to have 30% of our product lines enter the global industry's ‘uncharted territory’.”

This article is reprinted from Sina Finance. Source: Cailian Press
Original link:Beyond the Apple supply chain: Driven by dual engines of AI and automotive, Luxshare Precision posts significant revenue and profit growth in first half

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