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Luxshare Precision's Growth Outlook for 2026

Luxshare Precision Industry Co., Ltd. (SZSE: 002475; HKEX: 02475), a globally recognized provider of precision manufacturing solutions, has revealed optimistic projections for its operations in 2026. The company anticipates that its net profit attributable to shareholders will range from 13.25 billion to 14.40 billion RMB, signaling a robust annual growth of 15% to 25% during the first nine months ending September 30, 2026.

As per preliminary results, Luxshare predicts an adjusted net income—excluding extraordinary items—between 10.37 billion and 11.72 billion RMB, marking an increase ranging from 8.63% to 22.79%. Additionally, the projected basic earnings per share are between 1.79 and 1.95 RMB, a noticeable rise from 1.59 RMB in the same period last year.

This optimistic outlook is fueled by Luxshare's steady progress across its main business lines, which leverage an extensive global manufacturing footprint, vertical integration capabilities, and a precision smart manufacturing platform. These projections are still preliminary and subject to final verification, with detailed results to be published in the company’s third-quarter report for 2026.

Wang Laichun, the Chairwoman and CEO of Luxshare Precision, commented, "Our profit projections reflect a disciplined execution of our diversified business portfolio and the transformation of our previous investments into commercial programs. We continue to emphasize AI-driven devices, AI infrastructure, and intelligent vehicles, thereby enhancing our local presence and operational efficiency while delivering long-term value."

Key Area Growth

1. Consumer Electronics: The latest data for the six months ending June 30, 2026, indicates that Luxshare’s consumer electronics segment experienced a noteworthy increase in revenue by 19.3%, totaling 122.48 billion RMB. The company has focused on strengthening relationships with major clients, enhancing ODM and JDM capabilities, and expanding its market presence in AI-device manufacturing. By integrating technologies in areas such as acoustics, optics, electrical systems, thermal management, magnetism, and precision structures, Luxshare is progressing from component manufacturing to system development and end-to-end product delivery. Key products include AI computers, connected wearables, AI glasses, and smart acoustic products.

2. Communication and Data Centers: Revenue from communications and data center products surged by 49.7% to reach 16.61 billion RMB in the first half of 2026. The company is expanding its portfolio of integrated AI infrastructures, covering high-speed copper interconnections, optical interconnections, thermal management, and power management. Achievements include batch deliveries of DAC, ACC, and AEC products and mass production of 800G optical products.

3. Automotive Electronics: This segment witnessed an impressive 274.1% revenue growth, amounting to 32.39 billion RMB, driven by organic growth, client program contributions, and the integration of resources from Leoni. Luxshare’s product lineup now includes connectors, cable harnesses, intelligent control systems, smart chassis technologies, and powertrain solutions. The advancement of high-speed connectors and intelligent cockpit platforms is being driven by several client programs, and the company has begun mass production of rear-wheel steering systems for mainstream vehicles in China.

Targeted Investments for Commercialization

The recent data for the six-month period ending June 30, 2026, reveals that the gross margin increased by 17 basis points year-on-year to stand at 11.78%, primarily due to operational leverage, internal efficiency gains, and accelerated growth in the automotive electronics and data center segments, which both yield above-average margins.

Capital expenditures rose to 10.27 billion RMB, an increase of 742 million RMB compared to the previous year, mainly directed towards foreign facilities, infrastructure, and new product launches. Research and development investments expanded by 43.1% to reach 6.57 billion RMB, with more than half allocated to developing emerging technologies as part of commercial projects in the pipeline.

As of June 30, 2026, Luxshare held 50.37 billion RMB in inventory, up by 19.0% from the end of 2025, a rate lower than the first half’s revenue growth of 40.2%. This inventory increase is attributed to business expansion and strategic material preparation for certain products. The company’s operational digital platforms continue to enhance coordination between demand planning, procurement, inventory, and production.

Global Platform and Future Outlook

Luxshare Precision's global presence spans five continents and 29 countries, with over 100 production sites ensuring localized deliveries and fostering collaboration with clients, thereby enhancing the resilience of its supply chain. Its vertically integrated platform covers core components, functional modules, and system-level products, while AI-based digital manufacturing tools enhance quality management, predictive maintenance, production planning, and standardized execution globally.

By the end of 2026, Luxshare aims to advance its consumer electronics product launches and ODM/JDM programs, expedite commercialization in high-speed interconnections, optical products, liquid cooling, and power management, and leverage additional integration benefits and customer opportunities in the automotive electronics sector. Luxshare is committed to a rigorous capital allocation policy and will continue investing in technology, production capabilities, and global delivery capacities to foster sustainable and high-quality growth.

About Luxshare Precision

Luxshare Precision Industry Co., Ltd. is a global provider of precision smart manufacturing solutions tailored for consumer electronics, communications and data centers, automotive electronics, and other high-tech sectors. The company assists clients from product definition and process development to new product launch, mass production, and worldwide delivery.