LUXSHARE-ICT(SZ:002475) Sou Hu Cai Jing·2025-07-10 07:34Core Viewpoint - Luxshare Precision (002475.SZ) is planning to issue H-shares and list on the Hong Kong Stock Exchange, aiming for an "A+H" dual listing to enhance its global strategy and financing capabilities while improving governance transparency [1][3]. Group 1: Company Strategy and Financial Performance - The company aims to deepen its global strategy and enhance its overseas financing capabilities through the H-share issuance [1]. - Luxshare's revenue has shown steady growth from 153.946 billion yuan in 2021 to an estimated 268.795 billion yuan in 2024, while net profit increased from 7.071 billion yuan to 13.366 billion yuan over the same period [5]. - Despite revenue growth, the company's gross margin has been declining, dropping from 22.88% in 2015 to 10.41% in 2024, a decrease of 54% over ten years [5]. Group 2: Customer Dependency and Risks - Luxshare's reliance on Apple is significant, with over 70% of its annual sales attributed to the tech giant, which poses risks due to Apple's stringent supplier selection and diversification strategies [6][10]. - The gross margin for Luxshare's consumer electronics business has decreased from 23.00% in 2015 to 13.65% in 2024, reflecting the pressure from its partnership with Apple [7]. - The company faces potential threats to its performance sustainability due to Apple's strong bargaining power and supplier elimination mechanisms [8]. Group 3: Governance and Related Party Transactions - Concerns have arisen regarding Luxshare's governance, particularly related to related party transactions and the transfer of loss-making assets from its affiliated company, Xinhau Optoelectronics [11][14]. - The transfer of assets has raised questions about the rationale behind these transactions and whether they harm the interests of minority shareholders [14]. - The company's actual controller has been involved in a significant shareholding "holding" controversy, which has exposed governance vulnerabilities [20][23].