--- title: "Net profit plunges 146%! \"Apple supply chain leader\" Lens Technology's performance \"turns sour\"" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39984385.md" description: "Lens Technology's performance suddenly "turned sour." On April 15th, the "Apple supply chain leader" Lens Technology released its Q1 2026 earnings report. The financial data shows that the company's Q1 operating revenue was 14.14 billion yuan, a year-on-year decrease of 17.13%; net profit attributable to shareholders was a loss of 150 million yuan, a year-on-year decrease of 134.88%; and adjusted net profit attributable to shareholders was a loss of 174 million yuan, a year-on-year decline of 146.08%. Faced with this Q1 report that fell short of expectations, the capital market reacted very strongly. After the earnings release, Lens Technology's A-share price plummeted 13.35% in a single day..." datetime: "2026-04-17T02:08:13.000Z" locales: - [en](https://longbridge.com/en/topics/39984385.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39984385.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39984385.md) author: "[侃见财经](https://longbridge.com/en/profiles/3206955.md)" --- # Net profit plunges 146%! "Apple supply chain leader" Lens Technology's performance "turns sour" Lens Technology's performance suddenly "turned sour". On April 15th, Lens Technology, the "Apple supply chain leader", announced its Q1 2026 earnings report. The financial data shows that the company achieved operating revenue of 14.14 billion yuan in Q1, a year-on-year decrease of 17.13%; net profit attributable to shareholders was a loss of 150 million yuan, a year-on-year decrease of 134.88%; adjusted net profit attributable to shareholders was a loss of 174 million yuan, a year-on-year decline of 146.08%. Faced with this Q1 earnings report that fell short of expectations, the capital market reacted fiercely. After the earnings release, Lens Technology's A-share price plunged 13.35% in a single day, and its Hong Kong stock price also fell sharply by 12.67%, with its market value suffering a significant contraction. Regarding the reasons for the Q1 loss, Lens Technology stated that the core reason for the profit pressure in Q1 was the "book drag" caused by short-term exchange rate fluctuations. Excluding the impact of this non-operational short-term foreign exchange gain/loss, the company's actual operating net profit in Q1 was basically flat compared to the same period last year. Media reports indicated that from Q4 2025 to Q1 2026, the RMB/USD exchange rate fell from around 7.1 to 6.8. The exchange rate fluctuations led to a sharp increase in Lens Technology's financial expenses, combined with the comprehensive impact of foreign currency translation, involving an amount exceeding 500 million yuan. Excluding this factor, the company's actual operating profitability actually improved. It is worth noting that Lens Technology's gross profit margin achieved a counter-trend increase in Q1, reaching 14.55%. After the earnings release, Citi issued a research report pointing out that Lens Technology's business performance in the first half of 2026 may be relatively weak, mainly dragged down by factors such as rising memory prices for Android phones, iPhone sales entering a low season, and exchange rate fluctuations. However, the company's performance in the second half of the year will be driven by multiple factors, including: first, Apple's foldable screen phone is expected to be officially launched in the second half; second, the automotive glass business for the new SUV model in cooperation with a Beijing automaker will start in the second half; third, the server business of the acquisition target, Yuanshi Technology, will begin to contribute to performance. Citi expects that Lens Technology's net profit ratio for the first and second halves of 2026 will reach 25% and 75%, respectively. The bank also stated that the company's earnings growth in 2027 is expected to further accelerate, benefiting from the full-year contribution of foldable phones and automotive glass business, as well as the business increment brought by the titanium casing and 3D glass front and back cover design of Apple's flagship phone for its 20th anniversary. Based on the above judgment, Citi lowered the target price for Lens Technology's Hong Kong stock from HK$32 to HK$27, maintaining a "Buy" rating; and lowered the A-share target price from 38 yuan to 32 yuan, downgrading the rating from "Buy" to "Neutral". **With the overall pressure on the consumer electronics sector and the industry backdrop of rising memory chip prices, can Lens Technology remain unscathed? Can its full-year performance achieve a reversal?** Looking at the company's past performance, Lens Technology's performance began to recover significantly starting from Q2 2025, with revenue in Q3 and Q4 2025 both exceeding 20 billion yuan. Supported by the expectation of a performance recovery, Lens Technology's A-share price rose over 41% for the full year of 2025. However, entering 2026, affected by both market conditions and performance, Lens Technology's stock price has accumulated a decline of nearly 40% since mid-January. In the earnings conference call, Lens Technology stated that the company is currently in a period of transition between old and new growth drivers, with significant investments in various emerging business segments. In the short term, there will be a mismatch between business investment and performance output, but these investments are crucial for locking in core customers and capturing market share for core products. The company's new products, such as foldable screens, will begin volume production in the second half of this year, and other emerging businesses will gradually enter the volume production stage in 2027. Growth points across business segments will see a concentrated outbreak in the second half of the year and next year, fully demonstrating the effectiveness of the company's transition between old and new growth drivers through gross margin improvement and earnings elasticity. Kan Jian Finance believes that, from the perspective of customer structure, the revenue contributed by Lens Technology's first and second largest customers accounts for over 70% of its total revenue. The impact of major customers' business trends and demands on the company's performance is self-evident. Other media reports suggest that Apple's AI glasses, codenamed N50, have completed four core design finalizations and are expected to be officially released in late 2026 or early 2027, with sales commencing in 2027. According to informed sources, Apple's design team is currently testing four different frame styles, including classic large frames, slim frames, retro round frames, and oval frames, and is expected to launch various colors such as black, navy blue, and light brown. If Apple's AI glasses successfully enter mass production, it will provide a substantial boost to Lens Technology's performance. Omdia data shows that in 2025, Meta held an absolute dominant position in the global AI glasses market, with annual shipments reaching 7.4 million units, a year-on-year increase of 281.3%, and a market share as high as 85.2%. In terms of regional markets, the United States is the world's largest AI glasses consumer market, with shipments exceeding 5 million units in 2025, accounting for more than half of global total shipments; the Chinese mainland market became the world's fastest-growing AI glasses market. Driven by intensive new product releases in the industry, continuous entry of new players, and affordable pricing strategies, annual shipments approached 1 million units, with a global market share of 10.9%, making it the world's second-largest market. Among global manufacturers, the Chinese brand Rokid and smartphone manufacturer Xiaomi ranked second and third, respectively. The agency predicts that global AI glasses shipments will exceed 15 million units in 2026, and industry competition will gradually shift from a single hardware capability contest to the construction of a full ecosystem. We believe that if AI glasses can replace traditional consumer electronics products like phones and computers to become a new consumption trend, it will present important development opportunities for leading consumer electronics component companies like Lens Technology. Overall, we believe the short-term impact of Lens Technology's Q1 loss is relatively limited. From a medium- to long-term perspective, the company's performance trend will remain deeply tied to the overall prosperity of the consumer electronics market. Therefore, in the current industry environment, it is difficult for Lens Technology to remain completely unscathed. ### Related Stocks - [300433.CN](https://longbridge.com/en/quote/300433.CN.md) - [06613.HK](https://longbridge.com/en/quote/06613.HK.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [01810.HK](https://longbridge.com/en/quote/01810.HK.md) - [XIACY.US](https://longbridge.com/en/quote/XIACY.US.md) - [81810.HK](https://longbridge.com/en/quote/81810.HK.md) - [AAPB.US](https://longbridge.com/en/quote/AAPB.US.md) - [AAPD.US](https://longbridge.com/en/quote/AAPD.US.md) - [AAPU.US](https://longbridge.com/en/quote/AAPU.US.md) - [AAPX.US](https://longbridge.com/en/quote/AAPX.US.md) - [AAPY.US](https://longbridge.com/en/quote/AAPY.US.md) - [APLY.US](https://longbridge.com/en/quote/APLY.US.md) - [HXXD.SG](https://longbridge.com/en/quote/HXXD.SG.md) ## Comments (1) - **幸运快乐 · 2026-04-17T02:13:59.000Z**: As soon as this was released, just looking at the title, it plummeted.