Apple AirPods maker Luxshare plans $1b HK listing

Luxshare Precision Industry Co., a major Apple supplier, is planning a Hong Kong listing to raise over US$1 billion.

The Shenzhen-listed company will issue H shares to improve overseas financing, according to a filing with the Shenzhen Stock Exchange.

The offering is expected later this year, but size and timing may still change.

Luxshare is working with China International Capital Corp., Citic Securities Co., and Goldman Sachs Group Inc. for the deal.

Known for producing Apple AirPods, Luxshare earned 75% of its 2023 revenue from Apple. It also makes components for electronics, communications, and automotive systems.

The firm has a market cap of 246 billion yuan (US$34 billion). Its stock is up 18% since an April low, though still down 17% year-to-date.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Luxshare’s strong financial growth supports its international ambitions

Luxshare has demonstrated remarkable financial performance in recent years, with revenue reaching 314.78 billion CNY in 2025, marking a 17.11% increase from 268.79 billion CNY in the previous year 1.

This follows earlier strong growth when the company reported revenues of approximately 113.48 billion CNY in 2022, a 29.2% increase from 87.78 billion CNY in 2021 2.

The company maintains healthy profitability metrics, with a profit margin of 5.01% and a return on equity of 19.06%, supporting its ability to pursue major financing initiatives like the planned Hong Kong listing 3.

Luxshare’s diversification beyond consumer electronics is evident in its automotive segment, which increased from 10% to 15% of revenue in 2022, demonstrating the company’s ability to expand into growing markets like electric vehicle components 2.

With strong liquidity ratios (current ratio at 1.62 and quick ratio at 1.19), Luxshare has the financial stability to pursue international expansion strategies 2.

2️⃣ Geopolitical tensions accelerating Chinese tech suppliers’ global manufacturing diversification

Luxshare has been actively expanding production bases beyond China, including facilities in Vietnam, Thailand, and Malaysia, as part of a strategic response to ongoing trade tensions 4.