Luxshare Precision Announces First-Half 2023 Financial Results: Over 20% Increase in Net Profit Excluding Non-recurring Profit And Loss

Thursday, 31 August 2023, 08:30 HKT/SGT

HONG KONG, Aug 31, 2023 - (ACN Newswire) - Luxshare Precision (002475.SZ) released its 2023 interim report on 28th August, revealing a year-on-year increase of 19.53% in operating revenue, amounting to RMB97.971 billion. Net profit after deduction of non-recurring profit and loss attributable to ordinary shareholders of the company soared by 22.48% to RMB4.154 billion.

The company also forecasted its performance for the third quarter, projecting a 10% to 20% increase in net profit attributable to ordinary shareholders of the company for the first three quarters of 2023, with an expected range of RMB7.04 billion to RMB7.68 billion.

The interim report highlighted significant improvements in Luxshare's profitability and further optimization of multiple financial indicators. Furthermore, the company's diversified business strategy is yielding impressive results, with continuous growth in its communication business and automotive business, providing a strong impetus for stable development.

Strong revenue and net profit growth with significant gross profit margin improvement
Positioned as a solutions provider, Luxshare leverages its robust technical strength and innovative capabilities to offer comprehensive solutions across the industrial chain. This positioning allows the company to seize more market opportunities, such as in the era of intelligent electric vehicles. It integrates its accumulated experience and advantages in communication and electronics, propelling the company onto a fast track towards becoming a global top ten Tier 1 player in the intelligent electric vehicle field.

In the first half of 2023, Luxshare demonstrated "double-digit growth in revenue and net profit". The company's growth rate of net profit excluding non-recurring profit and loss surpassed that of revenue, signifying an improvement in revenue quality. This increase can be attributed to Luxshare's higher positioning in the supply chain and continuous cost reduction and efficiency improvement in management.

Luxshare has implemented systems such as SAP, PLM, MES, and WMS, and through digital transformation and upgrading, it has further optimized its management and production processes, thereby improving operational efficiency in lean manufacturing and supply chain management.

Some research reports noticed that for three consecutive quarters, Luxshare's "cash receipts from the sales of goods and the rendering of services" exceeded "cash payments for goods purchased and services received" hinting at an increase in gross profit margin. It is worth to notice that, the company's gross profit margin in the first half of the year was 10.64%, while the Q2 gross profit margin was 11.27%, indicating an improvement from the previous quarter.

Moreover, Luxshare's cash flow statement showed significant improvement in the first half of 2023, with net cash flow from operating activities surging by 263.74% to RMB8.814 billion.

Advancement across diverse business sectors
The ongoing acceleration of diversified layout formed Luxshare Precision unique operational advantages and fostered a positive development pattern across multiple platforms. With the consumer electronics business as the backbone of Luxshare Precision, the company presented an over-industry-level performance in the first half of the year.

Despite a global decline in the smartphone market, Luxshare Precision's consumer electronics business has maintained strong growth momentum. The upcoming launch of Apple's new iPhone 15 series is expected to provide additional growth opportunities for the company.

Meanwhile, Luxshare Precision's communication business is the fastest-growing sector in recent years. The company has devised a mixed development model of "core components + system-level products" to boost business growth comprehensively, which turned out well and received high recognition from top customers at home and abroad.

In the automotive business, Luxshare Precision achieved over 50% growth in the first half of the year. The company continues to expand its automotive portfolio, forming strategic partnerships with major players such as Chery, GAC, and Huawei.

In addition, Luxshare Precision was included in the Fortune Global 500 list for the first time, representing a significant achievement for enhancing the company's brand value and influence, as well as for the technology manufacturing industry in China.

In summary of the performance in the first half of 2023, Luxshare Precision is highlighted in its improved management efficiency, enhanced asset quality, and advanced development of the three major business sectors. With the release of Apple new products and expansion of partnerships in the automotive industry, the company is well-positioned to continue its growth trajectory.

Topic: Press release summary Sectors: Electronics
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