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Luxshare Precision Reports 40.2% Revenue Growth in H1 2026

In an impressive display of resilience and strategic growth, Luxshare Precision Industry Co., Ltd. has reported a remarkable 40.2% increase in revenue for the first half of 2026. The company's revenue reached approximately 174.5 billion RMB, with a net profit attributed to shareholders soaring by 18% to approximately 7.84 billion RMB. Notably, even after excluding non-recurring gains and losses, the net profit grew by 6.5% to 5.96 billion RMB. The company's gross margin also saw an uptick, expanding by 17 basis points to a healthy 11.78%.

This robust performance is attributed to a diversified revenue base, particularly in consumer electronics, communications, data centers, and automotive electronics. Luxshare's strategic investments in AI infrastructure, smart vehicles, and a global distribution capacity have played a significant role in driving this growth.

Diversified Revenue Streams

Wang Laichun, President and CEO of Luxshare Precision, stated, "Our performance in the first half showcases the strength of our diversified portfolio and global operational platform." The company's commitment to disciplined investment in areas with clear customer demand and defined technological roadmaps remains a priority. This includes a focus on AI-enabled devices, AI infrastructure, and smart vehicles, which are all key to maintaining operational efficiency and sustainable value creation.

Luxshare's investment in research and development also saw a substantial increase of 43.1%, amounting to approximately 6.57 billion RMB. This boost primarily results from heightened spending on engineering talent, tools, materials, and certifications. The company's R&D efforts are notably directed toward technological preparation for upcoming commercialization programs.

Capital Investments Stepping Up

Capital expenditures reached around 10.27 billion RMB, representing an increase of 742 million RMB compared to the previous year. These investments are primarily allocated to expanding overseas facilities, supporting infrastructure, and new product lines. Luxshare prioritizes investments linked to customer programs, localized delivery, and long-term manufacturing flexibility.

As of June 30, 2026, Luxshare's inventory stood at 50.37 billion RMB, reflecting a 19% uptick from the previous year's end. This increase, although substantial, is still lower than the company’s revenue growth of 40.2%, indicating that the rise in inventory is largely due to strategic material preparations for specific products.

Operational Cash Flow Dynamics

The company's operational cash flow indicated an outflow of 2.45 billion RMB in the first half, primarily due to seasonal payments to suppliers and over 5 billion RMB allocated for strategic inventory preparation. However, a positive trend emerged in the second quarter, with operational cash flow turning positive at 4.62 billion RMB.

Exchange rate fluctuations resulted in approximate losses of 1.99 billion RMB on foreign currency-denominated monetary assets and liabilities, while currency risk management activities generated related profits of about 1.3 billion RMB. These profits were categorized as non-recurring items in accordance with applicable accounting treatments, while the corresponding losses were recorded within both disclosed net profit measures.

Significant Gains Across Divisions

Some key figures include:

• - Consumer Electronics: Revenue surged by 19.3% to 122.48 billion RMB. Luxshare has been fortifying relationships with key clients while enhancing ODM capabilities and comprehensive product development. Strategic priorities include AI-enabled computers, smart wearables, AI glasses, and smart acoustic products.
• - Communications and Data Centers: Revenue grew by a staggering 49.7% to 16.61 billion RMB. The company is developing an integrated AI infrastructure portfolio that encompasses high-speed copper interconnections and optical interconnections, among others. Significant operational advancements include large-scale production of 800G optical products and complete shipment of 1.6T DAC, ACC, and AEC products to clients.
• - Automotive Electronics: The automotive division experienced explosive growth of 274.1%, reaching 32.39 billion RMB. This growth was driven by organic growth, customer program expansions, and contributions from the integration of Leoni’s resources.

Global Operations and Future Outlook

Luxshare operates across five continents, with 29 countries and over 100 production centers, facilitating localized delivery and supply chain resilience. The company's vertically integrated platform encompasses precision components, functional modules, and system-level products, bolstered by AI-driven digital tools for quality management and production execution.

Looking ahead to the remainder of 2026, Luxshare plans to support electronic product launches and ODM/JDM programs while accelerating the commercialization of high-speed interconnections and optical products. The company remains committed to disciplined capital allocation and continued investment in technology to support sustainable, high-quality growth across its operations.

In conclusion, Luxshare Precision's impressive second-quarter results underline its strong position in the market and ongoing dedication to innovation and efficiency as it forges ahead in a rapidly evolving technology landscape.