Source: YuanSight

After gradually decoupling from Apple, the new business landscape of Luxshare Precision, the former 'leader in Apple's supply chain,' has started to feel unfamiliar.

On April 23, Luxshare Precision continued its strong performance in the A-share market, with its stock price once hitting 70.68 yuan during trading, just a step away from its historical high. Just three days earlier, on April 20, the company experienced a late-session surge, closing at the daily limit and topping the A-share market with a turnover of 25.188 billion yuan.

Luxshare Precision's recent exceed expectations (better-than-expected) performance in optical communication modules and AI computing infrastructure has drawn significant investor attention.

At the annual performance briefing, a company executive revealed that in 2025, the revenue of its communications and data center segment reached 24.568 billion yuan, up 33.81% year-on-year. The company's 800G and 1.6T optical modules are making smooth progress with domestic and international clients. Additionally, the company's investments in AI end-side and AI computing infrastructure have been larger and faster than planned at the end of last year, with the expected performance surge potentially arriving as early as the fourth quarter of this year, rather than next year.

On the other hand, driven by recent hot topics such as positioning in the humanoid robot supply chain and expectations for contract manufacturing of Apple's new foldable-screen devices, Luxshare Precision's contract manufacturing business continues to inspire more imaginative possibilities.

Returning to fundamental performance, Luxshare Precision's overall revenue continues to improve, providing a solid foundation for the recent stock price surge. Financial data shows that in 2025, the company's annual revenue reached 332.344 billion yuan, up 23.64% year-on-year. According to the Q1 performance forecast for this year, the company expects net profit attributable to shareholders to range between 3.652 billion yuan and 3.713 billion yuan, up 20% to 22% year-on-year.

Source: Luxshare Precision's 2025 Financial Report

Notably, as the company expands its business boundaries, annual report data shows that the proportion of revenue from its largest customer (widely believed to be Apple) dropped from over 75% in recent years to 56.58% of the company's total annual sales, indicating improvement in the issue of over-reliance on a core client.

Source: Luxshare Precision's 2025 Financial Report

As the labels of 'leader in Apple's supply chain' and 'mobile phone contract manufacturer' gradually fade, Luxshare Precision is undergoing a transformation towards a full-stack layout in consumer electronics, AI computing infrastructure, and automotive sectors. However, the biggest uncertainty remains whether the contract manufacturing mindset in consumer electronics can continue to align with the expansion of new business models.

01

Realization of Three Major Positive Factors

The core catalysts for Luxshare Precision's recent rally stem from the concentrated realization of positive factors in three major businesses: AI computing infrastructure, humanoid robot manufacturing, and contract manufacturing of new consumer electronics products.

Amid the AI wave, global AI computing centers are seeing increasing demand for high-bandwidth, low-latency, and highly stable connections. Currently, the industry primarily addresses high-speed computing connectivity through two solutions: copper cable interconnects (CPC) and optical interconnects (CPO). CPC is mainly used for short-distance high-speed transmission, while CPO is concentrated in long-distance, high-capacity transmission. Additionally, 'co-packaged optics' and 'near-packaged optics' technologies represent core directions for next-generation products to reduce power consumption and enhance bandwidth.

Public data shows that Luxshare Precision's communications and data center business now covers core links in computing infrastructure, including connectors, optical modules, liquid cooling, power supplies, complete machines, and switches. In 2025, this segment achieved revenue of 24.568 billion yuan, up 33.81% year-on-year.

In the copper cable interconnect field, Luxshare Precision's 224G high-speed cables have entered mass production, with 448G products in the customer pre-research phase. In optical interconnects, the company has transitioned from 'near-packaged optics' to 'co-packaged optics,' with 800G silicon photonics modules now in mass production and 1.6T products undergoing customer verification.

Xiong Tengfang, head of Luxshare Precision's data center business, further explained at the performance briefing that the company's next-generation copper cable interconnect products are expected to achieve bulk delivery to the first customer between the third and fourth quarters of 2027. Additionally, the diamond copper technology the company deployed over a year ago has catalyzed the launch of thermal management products for core clients this year. Products related to microchannel cooling technology also entered mass production last year.

Wang Laichun, the company's founder and chairwoman, anticipates that Luxshare Precision's current investments in AI end-side and AI computing infrastructure are larger and faster than planned at the end of last year. The performance surge originally expected next year may now materialize as early as the fourth quarter of this year.

The positive performance expectations are driven by breakthroughs in AI computing infrastructure on one end and the continuous deepening of precision manufacturing capabilities on the other.

At the Beijing Yizhuang Half Marathon held on April 19, Honor's 'Lightning' robot won the championship and broke the human half-marathon record, sparking widespread discussion.

Source: Honor Official Release

According to multiple media reports, Luxshare Precision, as the core supplier for Honor's robots, undertook complete machine contract manufacturing and precision structural component production, demonstrating the natural extension of the company's precision manufacturing capabilities into embodied AI scenarios. As previously disclosed, the company is actively layout (positioning) itself in AI-derived products and the humanoid robot industry, with plans to ship 3,000 humanoid robots in 2025.

Furthermore, news of Apple's upcoming release of a foldable-screen iPhone this year has further stimulated market expectations for the 'leader in Apple's supply chain.'

Currently, as the world's second-largest iPhone contract manufacturer, Luxshare Precision has upgraded its status from a component supplier to a core complete machine contract manufacturer, with significant advantages in yield control, delivery efficiency, and production flexibility. The precision structural and assembly process requirements for foldable-screen iPhones far exceed those of ordinary models, further amplifying Luxshare Precision's vertically integrated production capacity and ODM-OEM synergies. The arrival of the foldable-screen iPhone cycle is expected to further solidify Luxshare Precision's leading position in precision manufacturing for consumer electronics within Apple's supply chain.

While the three highlighted businesses appear to operate in different sectors, their underlying logic is highly unified: Luxshare Precision consistently extends horizontally around three core capabilities—precision manufacturing, full-chain delivery, and global production capacity. This is also the core reason the market is willing to bet on its transformation.

02

Diversified Growth Strategy

Beyond short-term hot topic catalysts, capital market confidence in Luxshare Precision's long-term prospects stems from its consistently improving performance and continuously optimizing business structure.

Financial data shows that in 2025, Luxshare Precision achieved revenue of 332.344 billion yuan, up 23.64% year-on-year, with net profit attributable to shareholders reaching 16.599 billion yuan, up 24.20% year-on-year. Revenue and net profit growth remained synchronized. The Q1 performance forecast for 2026 indicates that the company expects net profit attributable to shareholders to range between 3.652 billion yuan and 3.713 billion yuan, up over 20% year-on-year.

By dissecting the company's business structure, it becomes clear that Luxshare Precision is striving to move away from a single consumer electronics-driven model and transition towards a three-pronged growth strategy: consumer electronics as a stable foundation, automotive electronics as a high-growth driver, and communications and data centers as incremental growth areas. The rising proportion of high-margin, high-growth businesses represents a more valuable change than mere revenue scale growth.

Source: Luxshare Precision's 2025 Financial Report

Specifically, consumer electronics remain the company's anchor but with a declining share. In 2025, the consumer electronics business achieved revenue of 264.266 billion yuan, up 13.37% year-on-year, but its proportion of total revenue dropped to 79.52%, down about 7 percentage points from previous levels.

In terms of total revenue, this shift is not due to business contraction but rather Luxshare Precision's proactive effort to reduce reliance on a single client. Financial data shows that in 2025, revenue from the company's largest client plummeted to 56.68% of total revenue, compared to 75.24% and 70.74% in the previous two years, indicating that while solidifying Apple orders, the company is actively expanding its client base in the consumer electronics sector.

The financial report reveals that during the reporting period, the company systematically strengthened its product design definition and underlying R&D capabilities through smooth integration of ODM operations and R&D teams. By providing one-stop solutions covering material selection, product definition, industrial design, process development, high-yield mass production, and full-lifecycle after-sales support, the company has escaped the low-margin predicament (dilemma) of pure contract manufacturing.

Beyond consumer electronics, the automotive electronics business is emerging as a new growth engine for Luxshare Precision.

In 2025, the company formally completed the acquisition and full integration of Leoni AG, a century-old German automotive component giant, marking a crucial leap for Luxshare Precision into the core global automotive supply chain.

Leveraging Leoni's global production network, Luxshare Precision can significantly reduce overseas factory construction time and trial-and-error costs, directly accessing supply channels for mainstream automakers in Europe, the U.S., Japan, and South Korea. By introducing high-margin products such as high-voltage wiring harnesses, intelligent cockpits, and intelligent driving domain controllers, combined with procurement scale effects, Luxshare Precision achieved rapid revenue growth in related businesses within a short period.

Reflected in financial data, in 2025, Luxshare Precision's automotive electronics business revenue reached 39.255 billion yuan, surging 186.51% year-on-year, with its revenue proportion rising to 11.81%. As the high-margin automotive electronics business continues to grow, Luxshare Precision is poised to gain a brand-new profit growth engine.

In the global AI wave competition, Luxshare Precision's communications and data center business warrants long-term attention.

Benefiting from accelerated global computing center construction and architectural upgrades, demand for high-speed copper cables, optical modules, and server components continues to explode. With its full-stack self-research capabilities, Luxshare Precision has deeply partnered with global computing giants like NVIDIA. In 2025, this business segment grew by 33.81%, far outpacing the consumer electronics business and becoming a key source of future earnings elasticity.

03

Remaining Uncertainties

Whether Luxshare Precision's ambitious transformation plan can replicate its past miracle of gradually penetrating Apple's supply chain remains the top concern for external observers.

Luxshare Precision began as a computer connector manufacturer in 2004. In 2011, it acquired Kunshan Liantao to enter Apple's supply chain, starting with components like iPad connectors and MacBook power cords. In 2017, it entered AirPods complete machine contract manufacturing. In 2020, it acquired Wistron's Kunshan factory to become mainland China's first iPhone contract manufacturer. Wang Laichun, once dubbed 'Foxconn's factory girl,' spent over a decade propelling Luxshare Precision to the pinnacle of Apple's supply chain contract manufacturing—a story always regarded as a global manufacturing miracle.

Source: Luxshare Precision Official Website

During this period, Luxshare Precision's core competitiveness lay in ultimate (ultimate) precision manufacturing, efficient delivery capabilities, and strict cost control. During multiple visits to Luxshare Precision's factories, Tim Cook consistently praised its production capacity.

However, behind the 'leader in Apple's supply chain' halo, Luxshare Precision has always faced underlying business concerns. From 2021 to 2023, revenue from Apple once exceeded 75%, with single-client dependency compounded by geopolitical risks and the inherent low-margin bottleneck of contract manufacturing, leaving Luxshare Precision lacking sufficient imaginative space in the capital market for an extended period.

To address this, Wang Laichun initiated the company's transformation as early as 2021, proposing a 'Three Five-Year Plans' strategy to expand into automotive, communications, and industrial sectors. The AI wave accelerated this transformation, with collaborations like partnering with OpenAI to advance consumer-grade AI hardware and securing high-speed copper cable orders from major clients like Google and NVIDIA sparking external discussions about Luxshare Precision beyond Apple's supply chain.

Meanwhile, Luxshare Precision is advancing global production capacity and capital layout (deployment), retaining R&D and high-end manufacturing in China while building more overseas production networks to hedge against geopolitical and tariff risks.

In March 2026, Luxshare Precision submitted another prospectus to the Hong Kong Stock Exchange, seen as a crucial attempt to enhance AI business valuation premiums and diversify single-market capital risks through a global capital platform.

From its current business structure, Luxshare Precision's transformation intensity exceeds external expectations. However, reforms are not without concerns. In the long run, whether Luxshare Precision's consumer electronics contract manufacturing mindset can continuously align with full-link product innovation, capital expenditure rhythms, and the company's subsequent profitability remains to be validated by the market.

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