As a key player in Apple's supply chain, Lingyi Itech (Guangdong) Company, led by "Apple Supply Chain Queen" Zeng Fangqin, has already established itself in the A-share market since its 2018 listing. By November 28 this year, its market capitalization briefly exceeded 100 billion yuan. Now, this manufacturing giant spanning AI hardware, automotive, and low-altitude economy sectors has initiated its Hong Kong IPO on November 20, seeking new financing channels. However, amid shifting dynamics in the consumer electronics market, Apple's halo appears dimmer than before. After years of benefiting from the Apple supply chain, Lingyi faces operational challenges, including heightened customer concentration risks, surging trade receivables, and doubled short-term borrowing pressures—all impacting its future growth. The critical question: Can automotive and humanoid robotics become its next growth drivers?
1. The "Apple Supply Chain Queen" at the Helm of a 100-Billion-Yuan Giant Lingyi Itech isn’t new to Hong Kong IPO attempts. It first filed in June 2021, receiving China Securities Regulatory Commission approval by September that year. However, citing volatile market conditions and strategic adjustments, Lingyi let the application lapse and paused its Hong Kong listing in April 2022. A potential London listing also fell through. Now, under Zeng Fangqin’s leadership, Lingyi is making its second Hong Kong bid.
Zeng, born in 1965 in Hubei, graduated from Wuhan University in the 1980s and initially worked in fisheries management at a state-owned enterprise in Shenzhen. After studying abroad, she returned to lead Meishi Precision Manufacturing’s China operations before founding Lingyi’s predecessor, Lingsheng Electronics, in 2006. A pivotal moment came in 2009 when Lingyi secured Apple orders, joining the coveted "Apple chain." By 2012, Lingyi dominated global mobile phone module cutting (by revenue). Post-merger with Jiangfen Magnetic Materials in 2018, it rebranded as Lingyi Itech and went public.
Frost & Sullivan data in its latest prospectus ranks Lingyi first globally in high-precision AI terminal components (2024 revenue: $2.259 billion, 6.7% market share) and third in AI terminal smart manufacturing platforms ($4.6 billion revenue, 1.5% share). Pre-IPO, Zeng holds 58.64% ownership via direct/indirect stakes.
Yet, heavy reliance on top clients poses risks. From 2022 to Q3 2025, Lingyi’s top five clients contributed 49.1%–56.4% of total revenue, peaking at 56% in 2025. Its largest client accounted for 18.4%–24.4%. While concentration boosts economies of scale, over-dependence—like former Apple supplier O-Film’s collapse after losing Apple orders—leaves Lingyi vulnerable.
2. Trade Receivables Exceed 12.7 Billion Yuan, Short-Term Borrowings Double in 9 Months As an AI hardware smart manufacturing platform, Lingyi’s product matrix spans core materials, precision components, modules, and assembly. Its segments include AI hardware (terminals, robots, servers) and automotive/low-altitude economy.
Financially, Lingyi’s performance fluctuates. Revenue dipped 1% YoY in 2023 but rebounded 29.6% in 2024, with Q1–Q3 2025 growth slowing to 19.3%. Net profit rose 29.1% in 2023 but fell 12.6% in 2024 before climbing 39.6% in 2025’s first three quarters. Notably, 2024 saw revenue growth without profit gains.
AI hardware drives ~90% of revenue (87.6%–92.1%), while automotive/low-altitude contributes 3.1%–5.2%. Overseas revenue surged from 26.2% (2022) to 47.3% (Q3 2025).
Mounting financial pressures include trade receivables (net of provisions) rising to 12.738 billion yuan by Q3 2025 and total receivables hitting 15.192 billion yuan. Inventory grew to 7.557 billion yuan, straining cash flow. Operating cash flow of 2.297 billion yuan (Q3 2025) couldn’t cover 6.605 billion yuan in investments, forcing reliance on debt. Interest-bearing borrowings jumped to 11.826 billion yuan, with short-term loans doubling to 7.33 billion yuan in nine months.
3. M&A-Driven Second Curve: Can Automotive and Humanoid Robotics Deliver? With consumer electronics competition intensifying, Lingyi is aggressively diversifying. Automotive/low-altitude revenue remains small (3.1%–5.2%), prompting acquisitions for growth.
In April 2025, Lingyi acquired 66.46% of Jiangsu Keda, a Tier-1 supplier to BYD and Li Auto, transitioning from Tier-2 to automotive interior/exterior parts. In October, it spent 2.404 billion yuan on Zhejiang Xianglong, a specialist in drive shafts for automakers like Volkswagen and NIO. However, integration risks loom—Jiangsu Keda’s 81% debt ratio and negative cash flow raise profitability concerns.
Lingyi also invested in high-end power startup Hangzhou Boke Electronics and pivoted to humanoid robotics. In June 2025, it allocated 50 million yuan to upgrade robotics component manufacturing. Partnerships with Beijing Humanoid Robot Innovation Center and joint ventures (e.g., 80%-owned Dongguan Lingzhi Innovation Robotics) aim to capture this nascent market. By November, Lingyi reported scaled orders but minimal revenue from robotics.
Multiple acquisitions heighten goodwill impairment risks (3.94 billion yuan in 2022, tapering to 1.29 billion yuan in 2024). As Lingyi navigates debt pressures and integration challenges, its Hong Kong IPO bid underscores broader struggles—balancing short-term liabilities with long-term bets in automotive and robotics. Whether these moves pay off hinges on execution and market validation.
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