Image source: Pixabay

On July 9, LUXSHARE-ICT was listed on the main board of the Hong Kong Stock Exchange, completing its "A+H" capital layout.

According to the allocation results announced by LUXSHARE-ICT, it issued shares at HKD 63.28 per share, with a global offering of 383 million H shares, of which 10% was for public offering in Hong Kong and 90% for international offering. The Hong Kong public offering was subscribed 3.78 times, while the international offering was subscribed 9.46 times. After deducting listing expenses, the net fundraising amount was approximately HKD 24 billion, making it the largest IPO in terms of fundraising scale in the Hong Kong stock market so far in 2026.

However, on the first day of trading, LUXSHARE-ICT's stock price fell below the issue price, dropping more than 6% at one point during the session, and ultimately closed at HKD 62.3 per share, down 1.55%. On July 10, LUXSHARE-ICT closed at HKD 63 per share, up 1.12%, but had not yet returned to the issue price level, with a total market capitalization of HKD 485.2 billion.

Clearly, there is a divergence in market valuation.

01

Apple Contributes Over Half of Revenue

According to data from Frost & Sullivan, based on revenue in 2025, LUXSHARE-ICT ranks second globally and first in mainland China in the consumer electronics components and modules (PIMS) market, with a global market share of 11.2%.

In terms of performance, in recent years, LUXSHARE-ICT, as a leader in the "Apple supply chain," has brought stable revenue growth through its OEM business for Apple. From 2023 to 2025, LUXSHARE-ICT's revenue is projected to be CNY 231.905 billion, CNY 268.795 billion, and CNY 332.344 billion, representing year-on-year growth of 8.35%, 15.91%, and 23.64%; net profit attributable to shareholders of the listed company is projected to be CNY 10.953 billion, CNY 13.366 billion, and CNY 16.6 billion, with year-on-year growth of 19.53%, 22.03%, and 24.2%.

Consumer electronics have consistently accounted for about 80% of LUXSHARE-ICT's revenue. From 2023 to 2025, revenue from consumer electronics is projected to be CNY 204.675 billion, CNY 233.096 billion, and CNY 264.266 billion, accounting for 88.3%, 86.7%, and 79.5% of total revenue, respectively.

From 2023 to 2025, revenue from the five major clients of LUXSHARE-ICT is projected to be CNY 191.2 billion, CNY 211 billion, and CNY 216.2 billion, accounting for 82.4%, 78.5%, and 65% of total revenue in the same years, respectively. During the same period, revenue from the largest client (i.e., Apple) is projected to be CNY 174.5 billion, CNY 190.1 billion, and CNY 188.4 billion, accounting for 75.2%, 70.7%, and 56.7% of total revenue, respectively.

At the same time, LUXSHARE-ICT is also strengthening its capabilities in consumer electronics. In January 2025, LUXSHARE-ICT plans to acquire equity and assets of certain subsidiaries of Wingtech Technology. In its announcement at that time, the company stated that it would acquire equity and business asset packages related to the consumer electronics system integration business under Wingtech Technology to quickly supplement its R&D team and manufacturing resources in the Android ecosystem ODM system integration field Effectively shorten the self-cultivation cycle from 0 to 1 and improve the cost-effectiveness of resource investment. At the same time, Wingtech Technology has a mature R&D and manufacturing system in the fields of mobile phones, tablets, laptops, and small household appliances as an ODM and OEM for consumer electronics, which will form a deep complementarity with the company's existing precision manufacturing capabilities, significantly enhancing the comprehensive service capabilities in system-level solutions for smart terminals and AI hardware development.

In March 2025, LUXSHARE-ICT announced the initiation of an acquisition, with a total transaction price of 4.389 billion yuan, including 100% equity of Shenzhen Wingtech, Huangshi Wingtech, Hong Kong Wingtech, Indonesia Wingtech, Kunming Wingtech, and Kunming Wingxin, as well as the asset package related to India Wingtech and Wuxi Wingtech.

In January 2026, LUXSHARE-ICT announced that the company decided to terminate the acquisition of the asset package related to India Wingtech under Wingtech Technology and filed for arbitration with the Singapore International Arbitration Centre (SIAC) to recover the payments made. The request is to rule on the termination of the acquisition agreement and to require India Wingtech to return the paid transaction price and other fees totaling approximately 1.977 billion Indian Rupees (approximately 153 million yuan), along with the corresponding interest up to the date of payment. Other related assets have been delivered.

02

Layout of the Second Growth Line

The gross profit margin of consumer electronics, which accounts for 80%, is lower than that of other businesses. In 2025, the gross profit margin of LUXSHARE-ICT's consumer electronics was 10.3%. During the same period, the gross profit margins for automotive electronics, communications, and data centers were 15.6% and 18.1%, respectively. Therefore, the overall gross profit margin of LUXSHARE-ICT was only 11.6%.

As a result, LUXSHARE-ICT is also accelerating its business layout in automotive electronics, communications, and data centers.

In September 2024, LUXSHARE-ICT announced plans to acquire 50.1% of Leoni AG and 100% of its wholly-owned subsidiary Leoni Kabel GmbH. According to the information, Leoni AG is a leading global supplier of cable, wire, and harness system solutions. In its 2025 annual report, LUXSHARE-ICT stated that it had officially completed the delivery and full integration of Leoni, which drove the growth of automotive electronics.

In 2025, LUXSHARE-ICT's automotive electronics business revenue reached 39.255 billion yuan, a year-on-year increase of 185.34%, with its revenue share rising from 5.12% the previous year to 11.81% in 2025. The company indicated that this was mainly due to its own rapid business growth combined with the expanded scope of consolidation including Leoni.

In the wave of AI, LUXSHARE-ICT's communications and data center business has also attracted significant attention. In the investor relations activity record released by LUXSHARE-ICT in May 2026, the company stated that as an AI computing power supply chain enterprise, it is rapidly introducing AI platforms to enhance the efficiency of its management and manufacturing processes, while striving for business opportunities and promoting the improvement of internal operational efficiency Since 2013, the company has been promoting the expansion of its traditional cable connector business into the communications industry; at the beginning of 2020, it began to layout the AI computing track; since 2024, the company has actively explored the overseas CSP market and recommended mature products in the communications industry to customers. As a new entrant in the optical module field, the company faces several long-established and capable peers, and still faces many challenges in the short term; the expansion of the business level and revenue scale will still take time. The company currently does not have the capability to independently develop 1.6T silicon photonic chips. In the field of 448G CPC copper connection technology, the company is already at an industry-leading level, and the business progress is in line with expectations.

According to Frost & Sullivan, LUXSHARE-ICT is one of the most comprehensive providers of precision manufacturing solutions for communication and data center components and modules, covering areas such as copper interconnection, optical interconnection, thermal management, and power management. LUXSHARE-ICT is the tenth largest provider of precision manufacturing solutions for communication and data center components and modules globally, with a global market share of 2.5%.

In 2025, LUXSHARE-ICT's revenue from communications and data centers is expected to reach 24.568 billion yuan, a year-on-year increase of 33.81%, with its revenue proportion rising from 6.83% the previous year to 7.39% in 2025.

With business expansion, LUXSHARE-ICT also faces some financial pressure. In its Hong Kong IPO prospectus, LUXSHARE-ICT stated that its expansion plans will require significant capital investment, such as expenses for building factories and purchasing equipment for business growth. In the past, LUXSHARE-ICT primarily funded its operations and expansion through cash generated from operations and bank loans, and it is expected to continue relying on these resources in the future. As of December 31, 2025, LUXSHARE-ICT's short-term loans amounted to 70.3 billion yuan, accounting for 68.8% of its total debt.

This listing on the Hong Kong stock market also accelerates the construction of the company's moat and further supplements its funding. 35% will be used to expand capacity and upgrade existing production bases. Among them, 18% will be used to increase the capacity of the automotive electronics business and upgrade its production base; 17% will be used to increase the capacity of the consumer electronics business and upgrade production bases.

At the same time, 20% will be invested in technology research and development to improve manufacturing processes and enhance intelligent manufacturing capabilities; 15% will be invested in high-quality targets in upstream and downstream industries or related industries; 10% will be used to repay certain existing interest-bearing bank loans for working capital purposes; the remaining 10% will be used for working capital and other general corporate purposes.

After completing the "A+H" layout with this Hong Kong listing, whether LUXSHARE-ICT can leverage the raised funds to promote the landing of new businesses, gradually adjust its revenue structure, reduce its reliance on consumer electronics and Apple, and truly cultivate a second growth curve in automotive electronics and AI computing power, will take time to provide an answer.

Author | Wu Ren

Source | Zheng Tan Finance (ID: teccj6)