Apple Supplier Luxshare Seeks Hong Kong Listing to Boost Trade War Defenses
By Liu Peilin and Han Wei
Luxshare Precision Industry Co. Ltd., a major Chinese assembler of Apple Inc.’s iPhones, has applied for a listing on the Hong Kong Stock Exchange, joining a wave of Chinese technology firms turning to international capital markets as they navigate growing geopolitical and trade pressures.
The Shenzhen-listed company submitted its application and preliminary prospectus on Monday, according to a company announcement. Luxshare did not disclose how much it intends to raise or the expected size of the offering.
Luxshare’s Shenzhen-traded shares closed down 1.24% on Tuesday at 39.10 yuan ($5.4), giving it a market capitalization of 283.6 billion yuan. The stock has bounced back from a low of 26.91 yuan in early April after U.S. President Donald Trump announced sweeping reciprocal tariffs, returning to pre-announcement levels.
The planned Hong Kong listing highlights a trend of Chinese technology companies seeking new diversified funding channels and strategic flexibility as they face increasing risks from the trade war.
In July, Lens Technology Co. Ltd., another Apple supplier, raised HK$4.7 billion ($600 million) in a Hong Kong debut to fund product expansion and new facilities in Vietnam and Thailand.
Apple accounted for 70.7% of Luxshare’s 2024 revenue, mostly from smartphone assembly. The company flagged ongoing risks from U.S. tariffs, noting that although Washington and Beijing agreed to a 90-day tariff truce after talks in Stockholm, the eventual outcome remains uncertain. A deal is under negotiation with the tariff deadline extended to early November.
Luxshare reassured investors in April that it would not absorb new tariff costs, saying that logistics and warehousing fees have never been part of its supply chain burden. While the company operates factories in Vietnam, Indonesia, Malaysia, Thailand and India, final iPhone assembly remains concentrated in the Chinese mainland.
Lens Technology, in its own prospectus, said brand clients were responsible for additional tariff costs, though its contracts do not allow for price adjustments. Apple accounted for nearly half of Lens’s 2024 revenue.
Luxshare has grown steadily despite margin pressure. Revenue climbed from 214 billion yuan in 2022 to 268.8 billion yuan in 2024, while net profit rose from 10.5 billion yuan to 14.6 billion yuan over the same period. Gross margin narrowed, however, to 10.1% in 2024 from 11.9% in 2022, as lower-margin assembly gained a larger share of its business.
Hong Kong’s IPO market has rebounded sharply. In the first half of 2025, with 44 companies raising a combined HK$107.1 billion in listings, a sevenfold increase from the prior year. That performance has made the city the world’s top IPO venue for the first half, its strongest showing since 2016, with a record 210 main-board applications pending at the end of June.
Contact reporter Han Wei (weihan@caixin.com)
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