Recently, Largan Precision Innovation Technology Co., Ltd. reapplied for a listing on the Main Board of the Hong Kong Stock Exchange, with CITIC Securities (Hong Kong) and CICC Hong Kong serving as joint sponsors.

This move represents the company's second attempt, following the expiration of its initial application in November 2025. The firm has secured regulatory waivers from the Hong Kong Stock Exchange on issues including management presence in Hong Kong, the qualifications of joint company secretaries, and ongoing connected transactions.

The company's business roots trace back to the camera module division of Lite-On Technology, which was acquired by Luxshare Group for US$360 million in 2018 and subsequently rebranded. Lite-On Technology also secured a 10% stake in Largan Precision Innovation through this deal. Over the past nearly seven years, Largan Precision Innovation has swiftly completed its industrial layout through three pivotal mergers and acquisitions: acquiring a controlling stake in Cowell e Holdings via a tender offer from late 2020 to early 2021, thereby entering the Apple camera module supply chain through its existing customer base; integrating Lite-On's imaging division in 2022; and finalizing the purchase of an 80% stake in Konica Minolta's Shanghai factory in 2025, gaining mass production capabilities for high-end optical lenses and automotive lenses.

These capital maneuvers have enabled the company to construct a comprehensive optical product matrix spanning emerging sectors such as consumer electronics, automotive electronics, smart offices, XR, and robotics.

Financially, the company has demonstrated robust growth momentum in recent years: from 2023 to 2025, revenue surged from RMB 15.248 billion to RMB 34.755 billion, with a compound annual growth rate (CAGR) of 51%; net profit climbed from RMB 588 million to RMB 1.690 billion, with a CAGR of 69.6%. In the first five months of 2026, revenue reached RMB 13.624 billion, a year-on-year increase of 14.7%, and net profit was RMB 776 million, a year-on-year increase of 48.5%; the gross margin during this period was approximately 11.6%.

However, this high growth is underpinned by extremely high customer concentration. From 2023 to the first five months of 2026, revenue from the top five customers accounted for 77.9%, 88.7%, 90.0%, and 90.1%, respectively. The largest customer contributed 71.0% of revenue in 2025 and 68.2% in the first five months of 2026.

Regarding accounts receivable, as of the end of 2023, 2024, and 2025, the company's trade receivables were RMB 4.1 billion, RMB 6.1 billion, and RMB 7.5 billion, respectively; as of May 31, 2026, this figure stood at RMB 6 billion. The continuous rise in accounts receivable is primarily attributable to the longer payment terms of major customers and the natural accumulation resulting from rapid revenue growth.

In terms of gross margin, it was 12.0%, 10.8%, and 10.8% from 2023 to 2025, respectively. The margin pressure stems mainly from the increasing proportion of low-margin smartphone camera module revenue. To counter this trend, the company has consistently boosted its investment in cutting-edge technologies, with R&D expenditure surpassing RMB 1 billion in 2024.

From an industry standpoint, the global precision optics market for consumer electronics, after contracting from 2021 to 2023, rebounded to approximately US$86.9 billion in 2025, with a compound growth rate of only 2.2% during this period. However, according to Frost & Sullivan projections, the growth rate is expected to surge to 9.9% from 2026 to 2030, with the market size projected to reach US$124.9 billion by 2030. Automotive, robotics, and XR are clearly identified as core growth markets.

Against this backdrop, Largan Precision Innovation has made forward-looking strategic moves: it established Litian Innovation as a joint venture with RoboSense to venture into the LiDAR module sector; and completed the acquisition of Konica Minolta's Shanghai factory in 2025 to further bolster its manufacturing capabilities for automotive optical lenses. With the increasing penetration of autonomous driving, the company's automotive optics business has sustained rapid growth. Nevertheless, the industry also faces high technical and customer certification barriers, making it challenging for new entrants to achieve breakthroughs in the short term.

It should be noted that, based on the current revenue structure, the company's revenue from the consumer electronics sector still accounts for over 90%. In 2025, consumer electronics revenue constituted 90.0% of the total, while emerging businesses such as automotive and XR are still in their nascent stages of growth. It will take time for the performance contributions of these new sectors to transition from "strategic narratives" to tangible growth.

The funds raised from this listing will be primarily utilized for the R&D and innovation of precision optical products and related technologies, the optimization and upgrading of the intelligent manufacturing platform, investment and mergers and acquisitions of high-quality upstream targets, repayment of certain existing interest-bearing bank borrowings, and supplementation of working capital.

Amid the industrial wave propelled by AI terminals and intelligent vehicles, Largan Precision Innovation's IPO narrative combines the "certainty of the Apple supply chain" with the "emerging growth potential." However, issues such as excessive customer concentration, order fluctuation risks due to reliance on major customers, and high accounts receivable will remain pivotal variables that must be carefully considered during market pricing.