The most anticipated IPO of the year on Hong Kong Stock Exchange sees an awkward debut, as the 480 billion tech giant in Apple's supply chain falls below its offering price
Produced by Radar Finance
Written by | Ding Yu
Edited by | Meng Shuai
On July 9, Luxshare Precision, known as the "top player in Apple's supply chain", was officially listed on the Hong Kong Stock Exchange, successfully completing its "A+H" dual capital market layout.
It is reported that the total number of H shares offered globally by Luxshare Precision in this offering is 383 million, with the final issue price set at HK$63.28 per share, raising a net proceeds of approximately HK$24 billion, making it the largest-scale IPO on the Hong Kong stock market this year.
Despite enlisting a lineup of high-profile cornerstone investors to support its listing, Luxshare Precision faced a lukewarm reception on the Hong Kong Stock Exchange on its first trading day. The company's share price fell below the issue price immediately after the market opened, with the maximum intraday drop approaching 10% at one point, touching a low of HK$57.2 per share, before finally closing at HK$62.3 per share, down a marginal 1.55%.
As of the close of trading on July 10, Luxshare Precision's Hong Kong stock price rebounded 1.12% to HK$63 per share, with the latest market capitalization standing at approximately HK$485.2 billion.
As a leading global enterprise in precision components for consumer electronics, Luxshare Precision is widely regarded as one of the core suppliers in Apple's industrial chain. However, in recent years, the company has deliberately downplayed its "Apple supply chain" label, with the proportion of sales revenue from its largest single customer dropping from 75.24% in 2023 to 56.68% in 2025.
In terms of performance, Luxshare Precision recorded operating revenue of 83.888 billion yuan in the first quarter, representing a year-on-year increase of 35.77%; its attributable net profit reached 3.66 billion yuan, up 20.24% year on year.
According to the latest performance forecast disclosed by Luxshare Precision, the company expects its attributable net profit for the first half of the year to fall within the range of 7.84 billion yuan to 8.106 billion yuan, marking a year-on-year growth of 18% to 22%.
It is worth noting that in the "2026 New Fortune 500 Wealth Creation List" released in June, the siblings Wang Laisheng and Wang Laichun, who stand behind Luxshare Precision, made the list with a personal fortune of 174.9 billion yuan, with their wealth increasing by approximately 43.4 billion yuan compared to the previous year.
Share Price Drops Below Issue Price on Hong Kong Debut, Retail Investors Suffer Unrealized Loss of HK$98 per One Lot
For this Hong Kong listing, the issue price of HK$63.28 per share set by Luxshare Precision appears rather "resolute".
According to reports from 21st Century Business Herald, the Hong Kong stock IPO market has long followed the industry practice of "trading a discount for liquidity". For instance, Lingyi Technology, another enterprise in the Apple supply chain, set the upper limit of its H-share offering price at a discount of approximately 44% relative to the closing price of its A shares on the previous trading day.
In contrast, the final issue price of Luxshare Precision's Hong Kong offering was set at HK$63.28 per share, which is the upper end of its offering price range. Converted at the exchange rate on that day, the H-share issue price corresponds to a discount of roughly 13% compared to its A-share valuation.
In other words, Luxshare Precision completed its H-share offering at a valuation much closer to its A-share level, which made secondary market funds more inclined to adopt a cautious pricing stance in the short term.
As reported by China News Service, a Hong Kong stock investor revealed that he casually subscribed for Luxshare Precision's shares in early July, thinking "it's a leading stock in the Apple supply chain, the offering should be extremely popular, I never expected to get all the shares in one lot I applied for."
However, after winning the allotment, he saw the 100% allotment rate for one lot shown on his brokerage app and sensed that "something was amiss. Sure enough, the price dropped in the grey market yesterday afternoon, and it never rallied after the market opened today."
The allotment results announced by Luxshare Precision on the evening of July 8 show that its Hong Kong public offering was moderately oversubscribed, with 47,308 valid applications, a subscription multiple of approximately 3.78 times, and a 100.00% allotment rate for one lot.
Among them, there were 46,965 approved applicants in the tranche for small investors (Group A) and 343 approved applicants in the large investor tranche (Group B), which did not trigger the clawback mechanism.
The international offering was also moderately oversubscribed, with a subscription multiple of approximately 9.46 times, and a total of 294 allottees.
As of the close of trading on the first listing day, Luxshare Precision's share price stood at HK$62.3 per share. Based on this calculation, retail investors who won one lot (100 shares) incurred an unrealized loss of HK$98.
Sharing the same losses as retail investors are more than 20 cornerstone investors that Luxshare Precision brought in to "escort" its listing. They collectively subscribed for approximately 186 million H shares, accounting for nearly half (48.44%) of the total number of issued H shares of Luxshare Precision after the completion of this global offering.
Looking through the list of Luxshare Precision's cornerstone investors, the company has gathered almost all the core major players in the global capital market for this listing, covering five core capital camps: national sovereign wealth funds, top international asset management institutions, world-renowned hedge funds, leading domestic financial institutions, and top-tier industrial capital.
Calculated based on the closing price of HK$62.3 per share on the first listing day, the aforementioned cornerstone investors as a whole have an unrealized loss of approximately HK$182 million.
As of the close of trading on July 10, Luxshare Precision's Hong Kong stock price edged up 1.12% to HK$63 per share, but it is still slightly below the issue price of HK$63.28 per share.
Riding Apple's Coattails for Performance Surge, "Over-Reliance on Major Customer" Has Been Alleviated
The recent sluggish performance of Luxshare Precision's share price may be influenced by the news that Apple officially announced price hikes not long ago.
On June 25 local time in the United States, Apple significantly raised the prices of some products on its official website, with prices of Mac computers generally increasing by about 15% to 20%, and iPad prices rising by roughly 15% to 25%.
Even earlier, Apple CEO Tim Cook had warned that the sharp rise in the cost of memory and storage chips would force the company to raise product prices.
In this official statement, Apple further stated: "The consumer electronics industry is facing unprecedented challenges. The rapid expansion of AI data centers has led to a surge in demand for memory and storage. We have never seen component prices rise so rapidly within such a short period of time."
Apple also pointed out that the company "has reached a stage where it must start raising prices for some of its products", which means further price increases are still possible in the future.
The ripples caused by Apple's price hike news quickly spread to domestic giants in the Apple supply chain. By the close of trading on June 26, Luxshare Precision's share price dropped 8.63% in a single day, Lingyi Technology fell 8.22%, Goertek declined 6.37%, and Foxconn Industrial Internet dropped 8.79%.
Public information shows that Wang Laichun, the core founder of Luxshare Precision, once worked at Foxconn in her early years. With her outstanding work performance, Wang Laichun was gradually promoted from an ordinary employee to line leader, team leader, and eventually to the position of section manager. At that time, the position of section manager was already the highest position that a mainland employee could reach at Foxconn.
Although she had an enviable position and stable income at Foxconn, Wang Laichun later chose to leave the company.
In 1999, Wang Laichun and her brother Wang Laisheng acquired Hong Kong Luxshare, embarking on their entrepreneurial journey. According to Tianyancha, five years later, Luxshare Precision Industry Co., Ltd. was officially registered and established.
In the early stage, Luxshare Precision's business mainly focused on taking orders from Foxconn. From 2007 to 2009, the years before its listing, the revenue the company generated from its largest customer Foxconn accounted for 47.73%, 56.46%, and 45.38% of its total operating revenue respectively.
In 2010, Luxshare Precision successfully listed on the A-share capital market, with its annual operating revenue just exceeding 10 billion yuan that year. Under the leadership of Wang Laichun, Luxshare Precision successfully entered Apple's supply chain afterwards, ushering in a period of rapid development.
In 2015, Luxshare Precision's operating revenue successfully exceeded the 100 billion yuan mark. In 2020, the company's operating revenue further climbed to 92.501 billion yuan. Just one year later, its full-year operating revenue soared by 66.43% to 153.946 billion yuan, and in 2022, it broke through the 2000 billion yuan threshold in one fell swoop.
To a certain extent, the rapid expansion of Luxshare Precision cannot be separated from the support of its major customer, with which it maintains a deeply bonded relationship. In 2022, its largest single customer contributed 73.28% of the company's total sales. At the same time, this largest customer was also one of its major suppliers.
This means that if there is an adverse change in the cooperative relationship between Luxshare Precision and its largest customer, the company's operating performance may be significantly and adversely affected.
This is not an alarmist statement, as there are already precedents in the domestic industry. In November 2022, Goertek, another enterprise in the Apple supply chain, issued a "Risk Warning Announcement" stating that the company had recently received a notice from a major overseas customer to suspend the production of one of its smart acoustic whole-machine products.
In December of the same year, Goertek stated in its "2022 Annual Performance Forecast Revision Announcement" that affected by this incident, the company's direct losses and asset impairment losses amounted to approximately 2 billion to 2.4 billion yuan, which had a significant impact on its 2022 annual operating performance.
Analyst Ming-Chi Kuo pointed out that the product whose production was suspended at Goertek at that time was likely Apple's AirPods Pro 2 headphones, and the production suspension was more probably due to production-related issues rather than demand problems. The manufacturer that took over this part of the production capacity was none other than Luxshare Precision.
In 2023, the sales revenue of Luxshare Precision generated from its largest customer reached 174.5 billion yuan, and its proportion in the total annual sales further climbed to 75.24%. As this proportion increased, the company's reliance on its major customer became increasingly prominent.
Later, with the efforts of Luxshare Precision, the company's "over-reliance on major customers" was slightly alleviated. Last year, the company's sales revenue from its largest single customer reached 188.4 billion yuan, with its proportion in the total annual sales dropping to 56.68%.
Three Business Engines Running in Parallel, with Relatively Low Gross Profit Margin
To ease its reliance on the major customer, Luxshare Precision is striving to build a business landscape where the three engines of "consumer electronics + automotive + AI" operate in parallel.
In 2025, Luxshare Precision achieved full-year operating revenue of 332.344 billion yuan, representing a year-on-year increase of 23.64%; its attributable net profit reached 16.6 billion yuan, up 24.2% year on year.
Entering 2026, the company's first-quarter operating revenue increased by 35.77% to 83.888 billion yuan, and its attributable net profit rose 20.24% to 3.66 billion yuan.
Further breaking down Luxshare Precision's operating revenue, the revenue from its automotive electronics business reached 39.255 billion yuan last year, surging 185.34% year on year; the revenue from its communications and data center business stood at 24.568 billion yuan, up 33.81% year on year, and the combined proportion of these two businesses in the total operating revenue is close to 20%.
During the same period, the revenue of the company's consumer electronics business increased by 13.37% to 264.266 billion yuan, with its proportion in the total operating revenue dropping from 86.72% in the previous year to 79.52%, a decrease of more than 7 percentage points year on year.
According to the financial report, at present, Luxshare Precision's automotive business mainly covers four major segments: connectors, wiring harnesses, intelligent control, and power systems. Last year, the company officially completed the delivery and comprehensive integration of Leoni AG, the century-old German automotive components giant.
At the same time, the company is also focusing on the fields of core components and whole-machine assembly for communication base stations and AI servers, with its business covering key links such as high-speed electrical connection, optical connection, thermal management, power management, server whole machines, and 4G/5G radio frequency antennas.
In this Hong Kong listing, out of the approximately HK$24 billion net proceeds raised by Luxshare Precision, about 35% will be used to expand production capacity and upgrade existing production bases, of which roughly 18% will be allocated to the automotive electronics business, and around 17% to the consumer electronics business.
Meanwhile, approximately 30% of the net proceeds will be used for technology R&D, improving manufacturing processes, and enhancing intelligent manufacturing capabilities; about 15% will be used to invest in upstream and downstream industries or related industrial targets, and the remaining funds will be used to repay borrowings and supplement working capital.
It is worth noting that in recent years, Luxshare Precision's gross profit margin has remained at a relatively low level. Before the pandemic, it could maintain a level of around 20%, but it has gradually declined in recent years, even dropping to 10.41% at one point in 2024.
For the full year of 2025 and the first quarter of this year, the company's gross profit margin rebounded slightly to 11.91% and 11.92% respectively, which may be related to the growth of the company's higher-margin automotive business (15.75% last year) and communications business (18.40% last year).
In addition, as of the end of the first quarter, Luxshare Precision's asset-liability ratio reached 66.53%, the highest level in the company's history.
Radar Finance will continue to pay close attention to the subsequent development of Luxshare Precision.