Core Viewpoint - Luxshare Precision, known as a major player in the Apple supply chain, has made significant progress towards its secondary listing in Hong Kong by submitting its main board listing application on August 18 [1][3] Company Overview - Luxshare Precision's stock price slightly decreased to 39.1 CNY per share as of August 19, with a total market capitalization of 283.6 billion CNY [1][2] - The company is a core supplier for Apple and is expected to raise over 1 billion USD through its IPO, primarily to support its globalization strategy [3] Financial Performance - From 2022 to 2024, Luxshare's revenue is projected to grow from 214.03 billion CNY to 268.80 billion CNY, with a compound annual growth rate exceeding 10% [4] - The net profit attributable to shareholders is expected to increase from 9.16 billion CNY to 13.37 billion CNY, reflecting a growth rate of 45.8% [4] - In Q1 2025, the company achieved year-on-year revenue and net profit growth of 17.90% and 23.17%, respectively [4] Business Strategy - Luxshare's core business remains in consumer electronics, but it is diversifying into automotive electronics, which has become a new growth area [4] - The company has made strategic acquisitions, including the purchase of Fujian Yuanguang Electric, to enter the automotive sector and is accelerating its global expansion in this field [4] - In September 2024, Luxshare initiated the acquisition of the German automotive wiring harness company Leoni Group, enhancing its position in the global supply chain [4] Market Position - As of 2024, Luxshare's overseas revenue contribution reached 87.6%, with production bases across Asia, Europe, the Americas, and Africa [4] - The company maintains a high customer concentration, with the top five customers accounting for 78.5% of sales, and Apple alone representing 70.74% [5]

Core Viewpoint - Luxshare Precision's secondary listing process in Hong Kong has advanced, with the company submitting its main board listing application to the Hong Kong Stock Exchange on August 18, 2023 [1][3] Group 1: IPO Details - The IPO is expected to raise over $1 billion, primarily for global strategic expansion [3] - Luxshare is the last among the three major "fruit chain" giants in A-shares to initiate a Hong Kong listing, following Lens Technology and GoerTek [3] - The joint sponsors for the listing are CITIC Securities, Goldman Sachs, and CICC [3] Group 2: Financial Performance - Luxshare's revenue is projected to grow from 214.03 billion yuan in 2022 to 268.80 billion yuan in 2024, with a compound annual growth rate exceeding 10% [4] - Net profit attributable to shareholders is expected to rise from 9.16 billion yuan in 2022 to 13.37 billion yuan in 2024, an increase of 45.8% [4] - In Q1 2025, the company reported revenue of 61.79 billion yuan, a year-on-year increase of 17.90%, and a net profit of 3.04 billion yuan, up 23.17% [4] Group 3: Business Structure and Strategy - Consumer electronics remain the core business, projected to generate 224.09 billion yuan in 2024, accounting for 83.37% of total revenue [4] - The automotive electronics sector, viewed as a key growth area, is expected to achieve revenue of 13.76 billion yuan in 2024, a growth of 48.69% [4] - Luxshare has initiated a global expansion strategy in the automotive sector, acquiring a 50.1% stake in Leoni AG, a leading automotive wiring company [5] Group 4: Customer Concentration - Luxshare's top five customers accounted for 78.5% of total sales in 2024, with Apple being the largest customer, contributing 70.74% of total sales [6]