#China #Dongguan #Annual Report #Precision Manufacturing #LUXSHARE-ICT

Luxshare-ICT Achieves Strong Performance in 2025

On April 27, 2026, Luxshare Precision Industry Co., Ltd. (referred to as "Luxshare-ICT" or the "Company") officially released its Annual Report for 2025, showcasing robust growth in critical financial metrics. The company reported operational revenues of 332.34 billion RMB, marking a year-on-year increase of 23.64%. Additionally, the net profit attributable to shareholders was 16.6 billion RMB, up 24.20% from the previous year. When excluding non-recurring gains and losses, the net profit stood at 14.17 billion RMB, reflecting a 21.16% annual growth.

The Company achieved this impressive performance in a complex external environment characterized by supply chain regionalization, trade policy uncertainties, fluctuations in raw material costs, rising memory prices, and currency exchange volatility. Despite these challenges, Luxshare-ICT maintained stable operations, demonstrating the resilience of its diversified business structure, global manufacturing presence, vertical integration capabilities, and disciplined operational management.

Management emphasizes that a company's true strength is not only measured by its ability to grow during favorable cycles but also by its capacity to perform well during uncertain times. In 2025, Luxshare-ICT continued to consolidate its core businesses, invest in emerging opportunities, and reinforce its foundations for long-term growth.

A Diversified Portfolio Supporting Sustainable Growth

During the reporting period, Luxshare-ICT focused on three key areas: consumer electronics, communications and data centers, and automotive electronics. These sectors collectively contributed to the company's revenue growth and enhanced its adaptability to market cycles.

In consumer electronics, the company further strengthened its comprehensive product coverage and vertical integration capabilities. The development of edge AI devices, AI smartphones, AI PCs, smart wearables, augmented/virtual reality devices, and smart home products generated new opportunities for precision components, modules, and system-level solutions. By integrating original design manufacturing (ODM) capabilities and R&D resources, Luxshare-ICT improved its ability to support clients from product definition and industrial design to mass production and full lifecycle services.

In the communications and data center sector, the rapid advancement of artificial intelligence drove continued demand for high-performance computing infrastructure. The company’s communications and data center business achieved revenues of 24.57 billion RMB in 2025, representing a year-on-year growth of 33.81%, with a gross margin up by 2 percentage points to 18.40%. This sector has become an increasingly vital growth engine as global clients accelerate investment in AI servers, high-speed interconnections, optical connectivity, thermal management, and energy management solutions.

In the automotive electronics domain, the company made significant strides in expanding its global Tier 1 capabilities. Revenues from automotive electronics soared to 39.25 billion RMB in 2025, showing a year-on-year increase of 185.34%, driven by both organic business expansion and the consolidation of Leoni. The company continued to build a comprehensive portfolio that includes automotive wiring harnesses, high and low voltage connectors, high-speed connectors, smart cabin systems, advanced driver assistance systems, and intelligent chassis-related products.

Global Manufacturing Network Enhancing Operational Resilience

Globalization remains a cornerstone of Luxshare-ICT's long-term strategy. In 2025, the company expanded and optimized its global manufacturing network further. Leveraging its established capabilities abroad, particularly in Vietnam and other regions, the integration of Leoni augmented the company’s production presence across five continents, boasting over 100 production facilities worldwide.

This global presence allows Luxshare-ICT to better support its clients’ regional supply chain strategies, offering localized deliveries, improving responsiveness, and reducing exposure to region-specific operational risks. As global supply chains continue to evolve, Luxshare-ICT's inter-regional manufacturing and delivery capabilities have become a significant competitive advantage.

The integration of Leoni also marks a crucial milestone in the company’s automotive globalization strategy. By combining Leoni's established customer base and global production network with Luxshare-ICT’s strengths in precision manufacturing, digital management, and operational efficiency, the company has created new opportunities in the automotive wiring harness and electronics sector. Management noted that Leoni achieved profitability improvements during the first year post-integration, laying a solid foundation for future collaboration with global automotive clients.

Vertical Integration and Smart Manufacturing as Key Competitive Advantages

Luxshare-ICT’s value proposition extends beyond manufacturing scale. The company has developed a vertically integrated platform that encompasses precision components, modules, and system-level solutions for diverse end markets. Its technical capabilities include acoustics, optics, electrical interconnection, thermal management, magnetism, radio frequency, precision structures, and system integration.

This solid technological foundation enables Luxshare-ICT to support clients throughout the entire product lifecycle, from initial concept development and design validation to pilot production, mass production, and after-sales services.

At the same time, Luxshare-ICT continues to drive smart manufacturing and digital operations. By applying digital systems, AI algorithms, machine vision, IoT-enabled data collection, and standardized operational processes, the company enhances production efficiency, quality consistency, and replicability across regions. These capabilities are especially crucial as clients demand faster product iteration, more flexible capacity implementation, and more resilient global supply chains.

Disciplined Investment for Future Growth

In 2025, Luxshare-ICT continued to make forward-looking investments in areas such as edge AI devices, AI data centers, automotive electronics, advanced manufacturing equipment, and global infrastructure. Management highlighted that a significant portion of the company's R&D spending is directed towards technologies and products expected to support future business opportunities, particularly in communications and data centers.

The company also noted that its capital expenditure cycle has surpassed peak demand phases. Previous investments in facilities, infrastructure, and capacity building abroad are expected to support reuse across consumer electronics, AI computing, and automotive businesses, enhancing long-term asset utilization efficiency.

Looking Ahead

Moving forward, Luxshare-ICT will maintain its focus on its core strategy of technological leadership, vertical integration, smart manufacturing, and global distribution. The company will further strengthen its presence in consumer electronics, communications and data centers, and automotive electronics while continuing to support its global clients in product innovation and supply chain optimization.

As artificial intelligence, electrification, smart mobility, and supply chain regionalization transform the global technology and manufacturing landscape, Luxshare-ICT is confident that its diversified business portfolio, global manufacturing network, and system-level engineering capabilities position it well to seize long-term growth opportunities and create sustainable value for its customers, partners, and shareholders.