The leading electronics manufacturing company from mainland China is accelerating its listing in Hong Kong. Behind its 300-billion-yuan revenue, AI data centers and smart vehicles are replacing its traditional business, becoming the new growth engine under the AI wave.
Luxshare Precision Industry Co.,Ltd. (SHE: 002475) officially launched its global offering of H shares on June 30, aiming to raise approximately HK$24 billion. It is expected to list on the Hong Kong Stock Exchange on July 9 (Stock Code: 2475). This marks another multi-billion-dollar manufacturing leader choosing a dual primary listing in both the A-share and Hong Kong markets, following the warming of the A-share market in 2025.
The cornerstone investor lineup for this H-share IPO is notably strong. Temasek, GIC, Abu Dhabi Investment Authority (ADIA), Tencent, HHLR, Fidelity International, Oaktree, and others collectively subscribed to approximately $1.5 billion (about HK$11.75 billion), accounting for roughly 48.4% of the global offering shares.
If one sentence were to summarize the core purpose of Luxshare's Hong Kong IPO, it could be boiled down to three key words: capital, global expansion, and AI strategy. The prospectus reveals that 35% of the net proceeds will be used for capacity expansion and production base upgrades, while 30% will be allocated to technology R&D and smart manufacturing. The focus of capacity expansion has shifted from consumer electronics to automotive electronics, and R&D investment is highly concentrated on AI data centers and high-speed interconnect technologies.
Apple remains the "cash cow," but it is no longer the sole focus. In 2025, Luxshare's annual revenue reached 332.3 billion yuan, with a net profit of 18.2 billion yuan, representing year-on-year growth of 23.6% and 24.6%, respectively. Overseas revenue accounted for a high 82.4%, with the U.S. market contributing 97.8 billion yuan and the European market contributing 107.1 billion yuan. Customer A (Apple) contributed revenue of 188.4 billion yuan in 2025, accounting for 56.7% of the company's total revenue. While this figure still represents a majority share, it has significantly decreased from 75.2% in 2023. The former "King of the Apple Supply Chain" is actively working to reduce its dependence on a single major client.
The change in business structure is even more pronounced. The proportion of consumer electronics business decreased from 88.3% in 2023 to 79.5% in 2025. In contrast, the automotive electronics business surged from 3.9% to 11.8% during the same period, with a three-year compound annual growth rate of 106%. The communications and data center business also expanded steadily at a compound annual growth rate of 30%.
What is most noteworthy in the prospectus is Luxshare's deep strategic layout in the AI infrastructure field. With the continuous expansion of AI servers, high-speed switches, and data centers, high-speed interconnect has become a crucial incremental market in the industry chain. Luxshare has strategically positioned itself around communications and data centers with products like high-speed connectors, high-speed cables, optical modules, and data center interconnect products, providing comprehensive solutions for global communication equipment and cloud computing customers.
From an operational data perspective, revenue from the communications and data center business reached 24.568 billion yuan in 2025. Its gross profit margin improved to 18.1%, significantly higher than the 10.3% level of the consumer electronics business, indicating continuous improvement in profitability.
Looking back, Luxshare's growth history is one of mergers, acquisitions, and integration in precision manufacturing. Over the past two years, the company completed two key transactions. In July 2025, it completed the acquisition of Leoni's wiring systems business for approximately €525 million. The integration of this established German automotive wiring harness supplier propelled Luxshare to the fourth position in the global automotive wiring harness PIMS market (with a 7.6% market share) and provided it with manufacturing networks and customer resources in Europe, Africa, and the Americas.
During the same period, the company also completed the acquisition of ODM/OEM-related businesses from Wingtech Technology, with a total consideration exceeding 4.5 billion yuan. This strengthened its capabilities in consumer electronics customization manufacturing and expanded its laptop assembly business.
Using its consumer electronics precision manufacturing capabilities as a foundation, the company is rapidly replicating its success through acquisitions into two high-growth sectors: automotive electronics and communications/data centers. This is the core methodology behind Luxshare's transformation from an "Apple supply chain manufacturer" to a "global precision intelligent manufacturing platform."
Transitioning from the "Apple supply chain king" to a "player in the AI supply chain," Luxshare is undergoing a challenging but necessary strategic pivot. Whether this precision manufacturing leader, with its revenue base of over 300 billion yuan and a market capitalization exceeding 500 billion yuan, can replicate its consumer electronics success on the new global tracks of AI data centers and smart vehicles will be the key question for the market following its H-share listing.
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