Luxshare Precision Industry Co., Ltd. (LUXSHARE ICT, 02475) posted solid top-line growth for the nine months ended 30 September 2026, while higher working-capital needs and expansion spending weighed on cash generation.
Financial highlights (nine-month period) • Revenue reached RMB 285.01 billion, up 29.01% year-on-year, driven by continued expansion across consumer electronics, communication & data-center interconnects, and automotive electronics. • Gross profit rose to RMB 33.94 billion; cost of sales grew in line with revenue (+29.37%) amid raw-material inflation, keeping gross margin broadly stable at 11.9%. • Net profit attributable to shareholders increased 13.36% to RMB 13.06 billion. Basic EPS improved 11.35% to RMB 1.77. • Return on weighted average equity slipped 1.38 percentage points to 13.86%, reflecting a larger capital base after new share issuance. • Operating cash flow reversed to an outflow of RMB 6.43 billion (vs. +RMB 3.48 billion a year earlier) due mainly to higher payments to suppliers and staff and inventory build-up.
Balance-sheet developments (30 September 2026 vs. year-end 2025) • Total assets expanded 34.32% to RMB 411.74 billion, led by sharp increases in inventories (+55.41% to RMB 65.79 billion), trade receivables (+42.60% to RMB 69.07 billion) and financial assets held for trading (+342.72% to RMB 12.58 billion). • Cash and cash equivalents stood at RMB 67.50 billion, up 24.57% from the prior year-end. • Total liabilities rose 33.60% to RMB 270.28 billion, as short-term borrowings surged 69.39% to RMB 101.87 billion and bonds payable almost doubled to RMB 6.46 billion. • Shareholders’ equity increased 41.86% to RMB 120.47 billion, supported by retained earnings and a RMB 25.73 billion uplift in capital reserves following the Hong Kong share listing.
Segment outlook Management reaffirmed strategic focus on three pillars: 1. Consumer Electronics – Targeting early-stage opportunities in edge AI hardware and next-generation smart devices through vertically integrated component-to-system capabilities. 2. Communication & Data Centers – Scaling high-speed copper and optical interconnect products to serve global AI infrastructure build-outs, complemented by power and thermal management solutions. 3. Automotive Electronics – Deepening post-acquisition integration of Leoni to broaden global customer access in wiring harnesses and connectors; accelerating in-house R&D for intelligent control, powertrain and chassis systems to evolve into a platform-based Tier-1 supplier.
Dividend The board approved a third-quarter cash dividend of RMB 0.60 per 10 shares (RMB 463.54 million in total), payable by 23 December 2026. H-share holders will receive HKD 0.70 per 10 shares, based on the RMB/HKD central parity rate of 0.85621. The record date for H-share entitlement is 16 November 2026, with the register closed from 12–16 November.
Capital allocation During the period the company raised RMB 27.89 billion from investors, increased borrowings by RMB 46.85 billion net, and repaid RMB 81.32 billion of maturing debt. Investment cash outflows totalled RMB 119.31 billion, reflecting higher spending on fixed assets, wealth-management products and equity acquisitions.
Key metrics snapshot (nine-month Y/Y change) • Revenue: +29.01% • Net profit attributable: +13.36% • Basic EPS: +11.35% • Operating cash flow: –RMB 6.43 billion (down RMB 9.91 billion) • Total assets: +34.32% • Shareholders’ equity: +41.86%
Despite currency headwinds and rising input costs, Luxshare Precision delivered robust revenue and profit growth in 2026 to date, underpinned by diversification across fast-growing technology end-markets. Elevated inventory and receivables, together with aggressive capacity expansion, led to a temporary cash-flow deficit and higher leverage, areas the company will need to monitor as it executes its growth and integration plans.
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