--- title: "LUXSHARE-ICT H1 Revenue Rises 40% YoY to CNY 174.5 Billion, Net Profit Up 18% | Financial Report Insights" type: "News" locale: "en" url: "https://longbridge.com/en/news/296802109.md" description: "In the first half of 2026, LUXSHARE-ICT reported revenue of CNY 174.504 billion, a year-on-year increase of 40.16%; net profit attributable to shareholders of the parent company was CNY 7.843 billion, up 18.04% year-on-year. The profit growth rate lagged behind revenue growth, primarily due to a 75.49% surge in administrative expenses and a shift in financial expenses from income to an expenditure of CNY 2.24 billion. The company's R&D investment reached CNY 6.573 billion, a 43.09% year-on-year increase. Net cash outflow from operating activities was CNY 2.446 billion, while net cash inflow from financing activities amounted to CNY 44.939 billion, bringing cash and cash equivalents at the end of the period to CNY 71.812 billion" datetime: "2026-08-24T14:23:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296802109.md) - [en](https://longbridge.com/en/news/296802109.md) - [zh-HK](https://longbridge.com/zh-HK/news/296802109.md) generator: "portal-rs" --- # LUXSHARE-ICT H1 Revenue Rises 40% YoY to CNY 174.5 Billion, Net Profit Up 18% | Financial Report Insights On August 24, LUXSHARE-ICT disclosed its semi-annual financial statements for 2026. In the first half of the year, the company achieved operating revenue of CNY 174.504 billion, a year-on-year increase of 40.16%; net profit attributable to shareholders of the parent company was CNY 7.843 billion, up 18.04% year-on-year; basic earnings per share were CNY 1.0774, compared to CNY 0.9175 in the same period last year. **While revenue maintained rapid growth, the company's profitability continued to rise, but the profit growth rate was significantly lower than the revenue growth rate.** In the first half, the company's net profit was CNY 8.526 billion, a year-on-year increase of 16.83%, and operating profit was CNY 9.492 billion, up 16.00% year-on-year; the growth rate of net profit attributable to shareholders of the parent company reached 18.04%. From the expense perspective, the company continued to increase R&D investment. R&D expenses in the first half reached CNY 6.573 billion, a year-on-year increase of 43.09%; administrative expenses were CNY 5.538 billion, up 75.49% year-on-year. Meanwhile, financial expenses shifted from a net income of CNY 160 million in the same period last year to an expenditure of CNY 2.24 billion, exerting some drag on profits. **Cash flow and capital expenditures exhibited stronger expansion characteristics.** In the first half, net cash flow from operating activities was -CNY 244.6 million, and net cash flow from investing activities was -CNY 2.9393 billion, including CNY 1.027 billion paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets; during the same period, net cash flow from financing activities reached CNY 4.4939 billion. ## Revenue Growth Accelerates, Profit Growth Relatively Moderate From the income statement, LUXSHARE-ICT's operating revenue in the first half was CNY 174.504 billion, compared to CNY 124.503 billion in the same period last year, an increase of approximately CNY 50 billion. Operating costs were CNY 153.95 billion, a year-on-year increase of 39.89%, basically matching the revenue growth rate. As a result, the company's gross profit in the first half was approximately CNY 20.554 billion, with a gross margin of about 11.78%, a slight increase of approximately 0.17 percentage points from 11.61% in the same period last year. **However, period expenses grew faster.** Selling expenses were CNY 866 million, a year-on-year increase of 53.59%; administrative expenses were CNY 5.538 billion, up 75.49% year-on-year; R&D expenses were CNY 6.573 billion, a year-on-year increase of 43.09%. The total of these three expenses reached CNY 12.977 billion, higher than CNY 8.313 billion in the same period last year. **Particularly noteworthy are the financial expenses. Financial expenses in the first half were CNY 2.24 billion, compared to -CNY 160 million in the same period last year; among them, interest expenses were CNY 1.0996 billion, and interest income was CNY 876.1 million.** Ultimately, the company's operating profit was CNY 9.492 billion, a year-on-year increase of 16.02%; net profit was CNY 8.526 billion, up 16.83% year-on-year; net profit attributable to shareholders of the parent company was CNY 7.843 billion, a year-on-year increase of 18.04%. Basic earnings per share increased from CNY 0.9175 in the same period last year to CNY 1.0774. ## R&D Investment Continues to Increase, Administrative Expenses Rise Significantly LUXSHARE-ICT's R&D expenses in the first half reached CNY 6.573 billion, accounting for approximately 3.76% of operating revenue, a slight increase from 3.69% in the same period last year. **In absolute terms, R&D investment increased by nearly CNY 2 billion year-on-year, with an increase of 43.09%, significantly higher than the revenue growth rate, indicating that the company continues to invest in technology and product development.** Administrative expenses increased from CNY 3.156 billion in the same period last year to CNY 5.538 billion, a year-on-year increase of 75.49%, with the growth rate significantly higher than that of revenue and R&D expenses. At the same time, investment income from associates increased significantly. Investment income in the first half was CNY 4.289 billion, a year-on-year increase of 42.11%, of which investment income from associates and joint ventures was CNY 2.747 billion, a substantial year-on-year increase of approximately 103%. This also means that, in addition to main business profits, the contribution of investment income to the company's overall profit has further increased. ## Inventory Rises to CNY 50.4 Billion, Asset Scale Continues to Expand As of the end of June, LUXSHARE-ICT's total assets reached CNY 349.89 billion, an increase of approximately CNY 43.352 billion from CNY 306.538 billion at the end of 2025. Among them, cash and cash equivalents were CNY 71.812 billion, an increase of CNY 10.653 billion from CNY 61.159 billion at the beginning of the year; accounts receivable were CNY 4.7666 billion, basically flat compared to the beginning of the year; inventory rose from CNY 42.333 billion to CNY 50.367 billion, an increase of approximately CNY 8.035 billion. **The growth in inventory scale was synchronous with the company's revenue expansion, but the growth rate was slightly higher than the revenue growth rate.** At the same time, the company's prepayments also increased from CNY 144.1 million to CNY 335.1 million, indicating an increase in working capital occupation brought about by the expansion of operational scale. The liability side also expanded significantly. As of the end of June, the company's total liabilities were CNY 235.964 billion, an increase of CNY 33.446 billion from CNY 202.517 billion at the beginning of the year. Among them, short-term borrowings were CNY 93.569 billion, an increase of CNY 33.432 billion from CNY 60.138 billion at the beginning of the year; long-term borrowings were CNY 24.543 billion, an increase of CNY 8.101 billion from CNY 16.442 billion at the beginning of the year. The company's owners' equity at the end of the period was CNY 113.926 billion, an increase of CNY 9.906 billion from CNY 104.02 billion at the beginning of the year. ## Capital Expenditures Remain High, M&A Continues to Advance The cash flow statement shows that LUXSHARE-ICT's net cash outflow from investing activities in the first half was CNY 29.393 billion, significantly expanding from CNY 15.832 billion in the same period last year. Among them, payments for the purchase and construction of fixed assets, intangible assets, and other long-term assets were CNY 10.27 billion, higher than CNY 9.528 billion in the same period last year; cash paid for investments reached CNY 57.185 billion. **At the same time, the company continued to support business expansion through financing.** Cash inflows from financing activities in the first half were CNY 112.853 billion, of which CNY 100.337 billion was received from borrowings; debt repayments amounted to CNY 62.314 billion, resulting in a final net cash inflow from financing activities of CNY 44.939 billion. In terms of mergers and acquisitions, a subsidiary of LUXSHARE-ICT acquired a 24.8% stake in LEONI AG for EUR 186 million, equivalent to CNY 1.496 billion, on April 29. After the transaction, the shareholding ratio increased from 50.1% to 74.9%, and the company continued to maintain control over LEONI AG. ## Operating Cash Flow Remains Negative, Cash Reserves Remain Ample In the first half, the company's net cash flow from operating activities was -CNY 2.446 billion, compared to -CNY 1.658 billion in the same period last year. **Looking at the specific composition of operating cash flow, cash received from selling goods and providing services reached CNY 174.669 billion, a year-on-year increase of 37.93%; however, cash paid for purchasing goods and receiving services reached CNY 158.037 billion, and cash paid to and for employees reached CNY 20.877 billion, resulting in a net outflow from operating activities.** Despite pressure on operating cash flow, under the combined effect of financing and investing activities, the company's cash and cash equivalents at the end of the period reached CNY 71.041 billion, higher than CNY 56.485 billion in the same period last year; cash and cash equivalents on the balance sheet basis reached CNY 71.812 billion. Regarding dividends, the company plans to distribute a cash dividend of CNY 1.1 for every 10 shares, based on the total share capital of 772 million shares as of the disclosure date, totaling approximately CNY 849 million in cash dividends. ### Related Stocks - [02475.HK](https://longbridge.com/en/quote/02475.HK.md) - [002475.CN](https://longbridge.com/en/quote/002475.CN.md) - [LEO.DE](https://longbridge.com/en/quote/LEO.DE.md) ## Related News & Research - [Luxshare Precision Declares Interim Dividend for H-Shareholders](https://longbridge.com/en/news/296835047.md) - [LUXSHARE ICT Plans to Issue Up to RMB25B Corporate Bonds](https://longbridge.com/en/news/296847363.md) - [Luxshare Proposes Governance Changes After H-Share Listing](https://longbridge.com/en/news/296806918.md) - [Fibocom sells Shanghai Faiot industrial handheld unit to Luxshare for RMB 120 million](https://longbridge.com/en/news/296613884.md) - [Luxshare Precision Calls EGM to Revise Governance Rules and Approve Bond Issuance](https://longbridge.com/en/news/296834492.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**