Core Viewpoint - Lens Technology, a well-known company in the Apple supply chain, has submitted a listing application to the Hong Kong Stock Exchange, facing challenges due to its heavy reliance on Apple for nearly half of its revenue in 2024 [1][2]. Group 1: Financial Performance - In 2024, Lens Technology achieved operating revenue of 69.90 billion yuan, a year-on-year increase of 28.27%, and a net profit attributable to shareholders of 3.62 billion yuan, up 19.94% [4][8]. - The gross profit margin of Lens Technology has declined from nearly 30% in 2020 to less than 16% in 2024, indicating weak bargaining power within the supply chain [1][4]. - The company reported a net profit growth of nearly 40% in the first quarter of 2025, but the sustainability of this growth is questioned due to potential market fluctuations [6]. Group 2: Customer Dependency - A significant portion of Lens Technology's revenue comes from a few key clients, with revenue from the top five clients amounting to 38.88 billion yuan, 45.28 billion yuan, and 56.71 billion yuan for 2022, 2023, and 2024 respectively, accounting for 83.3%, 83.1%, and 81.1% of total revenue [2][3]. - Sales to the largest customer represented 71.0%, 57.8%, and 49.5% of total revenue in the same years, highlighting the company's dependency on major clients [2]. Group 3: Strategic Initiatives - Lens Technology aims to diversify its customer base and enhance global delivery capabilities through its listing, with plans to expand operations in Vietnam, Thailand, and Mexico [2][5]. - The company is focusing on vertical integration and has increased R&D spending to a record 2.79 billion yuan, targeting advanced technologies in areas such as foldable screens, AI glasses, and smart vehicles [3][4]. Group 4: Market Challenges - The company faces challenges in pricing power due to high customer demands for cost reductions, which has contributed to the declining profit margins in the consumer electronics sector [4][5]. - The competitive landscape in the smartphone and personal computer markets has shifted to a saturation phase, necessitating differentiation or breakthrough innovations for growth [5].

Group 1 - The company, Lens Technology, submitted an application for the issuance of H-shares and listing on the Hong Kong Stock Exchange, with a maximum of 7% of the total share capital to be issued [2] - Lens Technology has established long-term strategic partnerships with numerous global clients in the consumer electronics and smart automotive sectors, including Apple, Samsung, Huawei, Xiaomi, and Tesla [2] - The company is expanding its customer base and product structure through strong technical reserves, manufacturing capabilities, and efficient production processes [2] Group 2 - In 2024, Lens Technology's vertical integration strategy began to yield results, with assembly business experiencing rapid growth and increased introduction of self-owned upstream components [3] - The company achieved a revenue of 69.897 billion yuan, a year-on-year increase of 28.27%, and a net profit attributable to shareholders of 3.624 billion yuan, up 19.94% [3] - Research and development expenditure reached a record 2.785 billion yuan, focusing on advanced technologies in various fields such as foldable smartphones and AI glasses [3]