--- title: "The largest IPO in Hong Kong this year had an awkward debut, with the \"fruit supply chain leader\" valued at 480 billion breaking its issue price" type: "News" locale: "en" url: "https://longbridge.com/en/news/292378129.md" description: "On July 9th, LUXSHARE-ICT was listed on the Hong Kong Stock Exchange at an issuance price of HKD 63.28 per share, raising approximately HKD 24 billion, making it the largest IPO in Hong Kong this year. Despite the support from luxury cornerstone investors, the stock price fell below the issue price on the first day, closing down 1.55%. As of July 10th, the stock price rebounded to HKD 63, with a market capitalization of approximately HKD 485.2 billion. The company's revenue and net profit both increased in the first quarter, with an expected year-on-year net profit growth of 18%-22% for the first half of the year" datetime: "2026-07-11T11:56:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292378129.md) - [en](https://longbridge.com/en/news/292378129.md) - [zh-HK](https://longbridge.com/zh-HK/news/292378129.md) --- # The largest IPO in Hong Kong this year had an awkward debut, with the "fruit supply chain leader" valued at 480 billion breaking its issue price On July 9th, "the king of the fruit chain" LUXSHARE-ICT officially landed on the Hong Kong Stock Exchange, successfully completing its "A+H" dual capital market layout. It is reported that LUXSHARE-ICT's global offering of H shares totaled 383 million shares, with the final issue price set at HKD 63.28 per share, raising a net amount of approximately HKD 24 billion, making it the largest IPO in the Hong Kong stock market this year. Despite attracting a number of luxury cornerstone investors, LUXSHARE-ICT faced a cold reception on its first day of trading in Hong Kong, with the company's stock price opening below the issue price, experiencing a maximum intraday drop of nearly 10%, hitting a low of HKD 57.2 per share, and ultimately closing at HKD 62.3 per share, a slight decline of 1.55%. As of the close on July 10th, LUXSHARE-ICT's stock price in Hong Kong rebounded by 1.12% to HKD 63 per share, with a latest market capitalization of approximately HKD 485.2 billion. As a leading global consumer electronics precision components company, LUXSHARE-ICT is viewed as one of the core suppliers in Apple's supply chain. However, in recent years, the company has aimed to downplay its "fruit chain" label, with sales from its largest customer accounting for 75.24% in 2023, decreasing to 56.68% by 2025. In terms of performance, LUXSHARE-ICT achieved revenue of RMB 83.888 billion in the first quarter, a year-on-year increase of 35.77%; it recorded a net profit attributable to the parent company of RMB 3.66 billion, a year-on-year increase of 20.24%. Additionally, according to the latest earnings forecast disclosed by LUXSHARE-ICT, the company expects its net profit attributable to the parent company for the first half of the year to fall within the range of RMB 7.84 billion to RMB 8.106 billion, representing a year-on-year growth of 18% to 22%. It is worth mentioning that in the "2026 New Fortune 500 Wealth Creation List" released in June, Wang Laisheng and Wang Laichun, who stand behind LUXSHARE-ICT, made the list with a fortune of RMB 174.9 billion, an increase of approximately RMB 43.4 billion compared to the previous year. **First day of listing in Hong Kong breaks issue price, investors suffer a loss of HKD 98 per lot** LUXSHARE-ICT's listing in Hong Kong at an issue price of HKD 63.28 per share appears quite "strong." According to the 21st Century Business Herald, there has long been an industry practice in the Hong Kong IPO market of "discounting for liquidity." For example, another "fruit chain" company, Lingyi Industry, had its H shares priced at a discount of about 44% compared to the closing price of its A shares the previous day. LUXSHARE-ICT's final issue price for its Hong Kong listing was set at HKD 63.28 per share, which is the upper limit of the issue price range. Based on the exchange rate on that day, the H share issue price corresponds to an A share discount of about 13%. In other words, LUXSHARE-ICT completed its H share issuance in a manner that is closer to A share valuations, which led secondary market funds to be more cautious in pricing in the short term. According to China News Service, a Hong Kong stock investor revealed that in early July, they casually subscribed to LUXSHARE-ICT, thinking it was a leading stock in the fruit chain and would be very popular, but unexpectedly, they ended up with just one lot However, after winning the lottery, he looked at the brokerage software and saw that the predicted winning rate for one lot was 100%, which made him feel that "things were not looking good." "Sure enough, the dark market dropped yesterday afternoon, and it didn't rise when the market opened today." The allocation results announced by LUXSHARE-ICT on the evening of July 8 showed that its public offering in Hong Kong was moderately oversubscribed, with 47,308 valid applications and a subscription multiple of approximately 3.78 times, with a winning rate of 100.00% for one lot. Among them, Group A accepted 46,965 applicants, Group B accepted 343 applicants, and the mechanism for reallocation was not triggered. The international offering was also moderately oversubscribed, with a subscription multiple of approximately 9.46 times, and a total of 294 underwriters. As of the closing on the first day of listing, LUXSHARE-ICT's stock price was HKD 62.3 per share. Based on this, investors who won one lot (100 shares) faced a floating loss of HKD 98. Along with the retail investors, more than 20 cornerstone investors brought in by LUXSHARE-ICT also suffered losses. They collectively subscribed for approximately 186 million H shares, accounting for nearly half (48.44%) of the total H shares issued after LUXSHARE-ICT's global offering. Looking through the list of cornerstone investors for LUXSHARE-ICT, the company has almost gathered the core forces of the global capital market for this listing, covering five core capital camps: national sovereign wealth funds, leading international asset management institutions, globally renowned hedge funds, domestic leading financial institutions, and top industrial capital. Based on the closing price of HKD 62.3 per share on the first day of listing, the aforementioned cornerstone investors faced an overall floating loss of approximately HKD 182 million. As of the close on July 10, LUXSHARE-ICT's stock price in Hong Kong had adjusted by 1.12% to HKD 63 per share, but it was still slightly lower than the issue price of HKD 63.28 per share. **Relying on Apple for performance growth, "dependency on major clients" has somewhat eased** The recent sluggish stock price of LUXSHARE-ICT may have been influenced by Apple's recent announcement of price increases. On June 25, U.S. time, Apple significantly raised the prices of some products on its official website, with Mac computers generally increasing by about 15% to 20%, and iPad prices rising by about 15% to 25%. Earlier, Apple CEO Tim Cook had warned that soaring costs for memory and storage chips would force the company to raise prices. In this announcement, Apple stated: "The consumer electronics industry is facing unprecedented challenges. The rapid expansion of AI data centers has led to a surge in demand for memory and storage. We have never seen component prices rise so quickly in such a short time." Apple also pointed out that the company "has reached the stage where it must begin to raise prices on some products," which means that further price increases may still be possible in the future. The ripples caused by Apple's price increase news quickly reached the domestic "Apple supply chain" giants. On June 26, LUXSHARE-ICT fell 8.63% in a single day, leading Yiyang Intelligent Manufacturing down 8.22%, GoerTek down 6.37%, and Foxconn Industrial Internet down 8.79%. Public information shows that LUXSHARE-ICT's core founder Wang Lai Chun worked at Foxconn in his early years. With outstanding performance, Wang Lai Chun rose step by step from an ordinary employee to a line leader, group leader, and eventually promoted to section chief. At that time, the position of section chief was the highest position that mainland employees could achieve at Foxconn Despite having an enviable position and stable income at Foxconn, Wang Laichun later chose to leave Foxconn. In 1999, Wang Laichun and his brother Wang Laisheng acquired Hong Kong LUXSHARE, thus embarking on an entrepreneurial journey. According to Tianyancha, five years later, LUXSHARE-ICT was officially registered. In the early days, LUXSHARE-ICT's business primarily focused on taking orders from Foxconn. From 2007 to 2009, the revenue from its largest customer, Foxconn, accounted for 47.73%, 56.46%, and 45.38% of the company's total revenue, respectively, before going public. In 2010, LUXSHARE-ICT successfully entered the A-share capital market, with revenue that year surpassing one billion. Under Wang Laichun's leadership, LUXSHARE-ICT successfully entered the Apple supply chain, ushering in a period of rapid development for the company. In 2015, LUXSHARE-ICT's revenue successfully broke through the 10 billion mark. By 2020, the company's revenue further climbed to 92.501 billion yuan. Just one year later, the company's annual revenue surged again by 66.43% to 153.946 billion yuan, and in 2022, it exceeded 200 billion yuan. The rapid expansion of LUXSHARE-ICT is, to some extent, supported by its deep ties with major clients. In 2022, the company's largest customer accounted for 73.28% of its sales. At the same time, this largest customer is also one of its main suppliers. This means that if there is an adverse change in the cooperative relationship with its largest customer, the company's operating performance may be significantly affected. This is not alarmist; there is a precedent in the domestic market. In November 2022, GoerTek, another "Apple supply chain" company, issued a "Risk Warning Announcement" stating that it had recently received a notice from a major overseas customer to suspend production of a certain smart acoustic product. In December of the same year, GoerTek stated in its "2022 Annual Performance Forecast Revision Announcement" that due to this matter, the company faced direct losses and asset impairment losses of approximately 2 to 2.4 billion yuan, significantly impacting its operating performance for 2022. Analyst Guo Mingqi pointed out that the product GoerTek suspended production on was likely Apple's AirPods Pro 2 headphones, and the suspension was more likely due to production issues rather than demand issues. The manufacturer taking over this production capacity was LUXSHARE-ICT. In 2023, LUXSHARE-ICT's sales from its largest customer reached 174.5 billion yuan, with the proportion of annual total sales further rising to 75.24%. As this proportion increases, the company's dependence on major clients becomes increasingly evident. Subsequently, with LUXSHARE-ICT's efforts, the company's "dependency on major clients" was somewhat alleviated. Last year, the sales from its largest customer amounted to 188.4 billion yuan, with the proportion of annual total sales decreasing to 56.68%. **Three-pronged approach with relatively low gross margin levels** To alleviate its dependence on major clients, LUXSHARE-ICT is striving to build a business structure that integrates "consumer electronics + automotive + AI" as a three-pronged approach. By 2025, LUXSHARE-ICT is expected to achieve annual revenue of 332.344 billion yuan, a year-on-year increase of 23.64%, and record a net profit attributable to the parent company of 16.6 billion yuan, a year-on-year increase of 24.2% Entering 2026, the company's first-quarter revenue grew by 35.77% to 83.888 billion yuan, and net profit attributable to the parent company increased by 20.24% to 3.66 billion yuan. Further breaking down LUXSHARE ICT's revenue, last year the company's automotive electronics business revenue reached 39.255 billion yuan, a year-on-year surge of 185.34%; the revenue from communication and data center business was 24.568 billion yuan, a year-on-year increase of 33.81%, with the combined revenue share of the two approaching 20%. During the same period, the company's consumer electronics business revenue grew by 13.37% to 264.266 billion yuan, with its revenue share decreasing from 86.72% last year to 79.52%, a year-on-year drop of over 7 percentage points. The financial report shows that LUXSHARE ICT's automotive business currently mainly covers four major sectors: connectors, wiring harnesses, intelligent control, and power systems. Last year, the company officially completed the acquisition and full integration of the German century-old automotive parts giant Leoni. At the same time, the company is also focusing on core components and complete machine assembly in the fields of communication base stations and AI servers, covering key areas such as high-speed electrical connections, optical connections, thermal management, power management, complete servers, and 4G/5G RF antennas. In this Hong Kong listing, LUXSHARE ICT's net fundraising of approximately HKD 24 billion will allocate about 35% for capacity expansion and upgrading existing production bases, with approximately 18% for automotive electronics business and about 17% for consumer electronics business. Additionally, about 30% of the net fundraising will be used for technology research and development, improving manufacturing processes, and enhancing intelligent manufacturing capabilities; approximately 15% will be invested in upstream and downstream industries or related industry targets, with the remaining funds used for repaying loans and supplementing working capital. It is worth noting that in recent years, LUXSHARE ICT's gross profit margin has been at a relatively low level, maintaining around 20% before the pandemic, but has gradually declined in recent years, dropping to 10.41% in 2024. For the full year of 2025 and the first quarter of this year, the company's gross profit margin slightly rebounded to 11.91% and 11.92%, which may be related to the growth of the company's higher-margin automotive business (15.75% last year) and communication business (18.40% last year). In addition, as of the end of the first quarter, LUXSHARE ICT's debt-to-asset ratio reached 66.53%, the highest level in the company's history. 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