Luxshare Precision Announces 2022FY and 2023FYQ1 Financial Results

Monday, 8 May 2023, 11:12 HKT/SGT

HONG KONG, May 8, 2023 - (ACN Newswire) - Despite facing numerous challenges over the past year, including a global economic slowdown and weak demand for consumer electronics, Luxshare Precision, a leading global manufacturer of cable & connector assembly and system solutions for consumer electronics, automotive interconnect and communication interconnect, has achieved remarkable results.

On April 27, Luxshare Precision released its annual report for 2022 and its first-quarter results for 2023. In 2022, the company achieved an operating revenue of approximately RMB214.028 billion, representing a year-on-year increase of 39.03%. Net profit attributable to shareholders of the listed company was about RMB9.163 billion, representing a year-on-year increase of 29.6%.

In the first quarter of 2023, Luxshare Precision kept its growth momentum, achieving operating revenue of RMB49.942 billion, representing a year-on-year increase of 20.05%. Net profit attributable to shareholders of the listed company was RMB2.018 billion, representing a year-on-year increase of 11.9%.

Although the market raised questions about Luxshare Precision's reliance on a single large customer, from the recently published financial report can we see that it has chosen to grow alongside the world's prime clients and has better credit terms than its peers. This not only accelerates the turnover of accounts receivable but also ensures a healthy cash flow.

In 2022, Luxshare Precision's net cash flow from operating activities was RMB12.728 billion, representing a year-on-year increase of 74.72%, which shows a significant improvement. At the same time, the company's accounts receivable turnover days in 2022 were 48.5 days, showing a decrease of 4.66 days.

According to news from Taiwan's Economic Daily News on April 26, Apple will include Pegatron and Luxshare Precision as iPhone 15 series suppliers. It is expected that Pegatron will obtain iPhone 12% assembly share of 15 Pro mobile phones, while Luxshare Precision will obtain 15% assembly share of iPhone 15 Ultra mobile phones. Based on market data, Luxshare Precision shipped approximately 20 million iPhones in 2022, and under optimistic estimates, the company's iPhone shipments this year could increase to 42-50 million units.

In addition, Luxshare Precision's R&D investment has seen a steady increment in recent years. In terms of R&D investment, the company has invested a total of RMB20.834 billion in the past three years, of which RMB8.447 billion was invested in 2022, hitting a five-year high. In 2022, the company accumulated 4,526 invention patents, representing an increase of 46.47% compared to the end of 2021, leading the industry in R&D strength.

It is also worth noting that the company's interim report forecast for 2023 was also released alongside the Q1 report, showing that Luxshare Precision's performance in the first half of 2023 has stable progress. Net profit attributable to shareholders of the listed company for the first half of 2023 is expected to be RMB4.162-4.541 billion, representing a year-on-year increase of 10%-20%.

In summary, Luxshare Precision is moving from a single business mode to a more diversified and comprehensive development. Given the vast blue ocean market and great growth opportunities, it is believed that Luxshare Precision has a promising future.

Topic: Press release summary Sectors: Electronics, Engineering
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