Lens Technology, a leading supplier in Apple's supply chain, reported a net loss of 149.6 million yuan for the first quarter of 2026. The company's revenue for the quarter was 14.14 billion yuan, a decrease of 17.13% compared to the same period last year. This net loss represents a significant decline of 134.88% year-over-year.
The first-quarter results contrast sharply with the company's full-year 2025 report, which showed a 10.87% increase in net profit. This disparity led to notable volatility in the company's stock price, with shares falling 13.35% on April 16, the day after the earnings release, wiping out over 20 billion yuan in market value.
While the quarterly report did not specify the exact reasons for the loss, an analysis from China International Capital Corporation (CICC) pointed to two primary pressures. The performance was impacted by reduced shipments from downstream clients due to rising memory chip prices and foreign exchange losses from a depreciating US dollar, which collectively pushed the company into a loss.
The revenue decline was primarily driven by a significant drop in smartphone and computer-related income. According to the company's investor relations communications, this was caused by clients scaling back demand due to shortages and price increases in consumer-grade memory chips, alongside design changes and model transitions for some customers.
On the profitability side, sharp short-term currency fluctuations were the main pressure point. Lens Technology estimated that exchange rate effects, including net exchange losses, negatively impacted its first-quarter results by approximately 500 million yuan compared to the prior-year period. This is reflected in the financials, with financial expenses surging 443.38% to 252.4 million yuan, compared to a negative 73.51 million yuan in Q1 2024. Furthermore, losses on forward exchange contracts led to a fair value change of approximately -59.5 million yuan, a decrease of 989.13%.
This performance slowdown was already evident in the fourth quarter of 2025, when revenue fell 12.34% to 207.5 billion yuan and net profit declined 6.23%. The company had attributed that earlier slowdown to currency volatility and changes in revenue recognition for certain assembly contracts.
The first-quarter results underscore challenges inherent to the contract manufacturing model within the consumer electronics sector. Companies like Lens Technology, which provide components and assembly services for major brands like Apple and Samsung, are highly dependent on downstream orders and have limited ability to pass on upstream raw material cost increases. The current surge in demand for AI servers and terminals has absorbed much of the global wafer capacity, leading to shortages and price hikes for consumer-grade memory. This increases costs for end-devices, prompting downstream manufacturers to potentially reduce orders or adjust product plans to manage risk, thereby pressuring intermediate manufacturers.
Facing these challenges, Lens Technology's management is actively pursuing strategic changes. The company views 2025-2026 as a critical window for optimizing its business structure. It is shifting focus towards higher-growth, higher-margin areas while optimizing older, less profitable segments. The company has identified four key strategic directions for major investment: AI-enabled terminals, AI servers, embodied AI, and commercial aerospace. Lens Technology has explicitly stated its intention to position itself as an intelligent hardware manufacturer for the AI era.
AI glasses represent a promising new area. The company is a core module supplier for several leading global AI glasses brands and the assembler for Rokid's整机 products. Benefiting from breakthroughs in this area, revenue from智能头显与智能穿戴 (smart headsets and wearables) grew 14.04% in 2025.
The company is also moving to enter the NVIDIA supply chain. In December 2025, Lens Technology announced plans to acquire 100% of裴美高国际, thereby indirectly gaining a 95.1164% stake in元拾科技.元拾科技 holds a稀缺的RVL certification, a critical "gold standard" for entering the global AI computing hardware supply chain. Lens Technology has indicated that production expansion is underway in Dongguan, with teams collaborating to engage major domestic and international clients, expecting audits and orders to follow the acquisition's completion.
In embodied AI, the company has been involved in robotics since 2016. It has established a vertically integrated manufacturing platform covering core components to整机 assembly for humanoid and quadruped robots, supplying several leading clients. By the end of 2025, shipments of humanoid robots and robotic dogs exceeded 10,000 units, with its robotics subsidiary generating over 1 billion yuan in revenue.
In commercial aerospace, since 2023, Lens Technology has been supplying structural modules for ground receivers, including low-dielectric protective glass, to leading clients, a business that has already generated billions in revenue. The company anticipates rapid growth in this segment in 2026 and is jointly developing and testing its self-developed aerospace-grade UTG flexible glass with clients.
However, according to the 2025 annual report, these emerging businesses still account for less than 18% of total revenue. Smartphone and computer-related contract manufacturing remains the dominant pillar, contributing over 82% of revenue. Therefore, fluctuations in orders from downstream clients continue to significantly impact overall performance. While Lens Technology is actively pursuing diversification into前沿科技领域 to drive high-quality growth and establish new revenue streams, the effectiveness of this转型 in altering its identity as an "Apple supply chain leader" remains to be proven by future financial results.
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