HONG KONG, Oct 27, 2023 - (JCN Newswire) - Luxshare Precision, a leading global manufacturer of cable & connector assembly and system solutions for consumer electronics, automotive interconnect, and communication interconnect, recently unveiled its 2023FYQ3 financial results, showcasing robust performance and indicating the potential for exceptional results for the full year. According to the financial report, the company's revenue for the first three quarters amounted to RMB155.875 billion, reflecting a year-on-year growth of 7.31%. Additionally, Luxshare Precision achieved a net profit attributable to shareholders of the listed company after the deduction of non-recurring gain or loss of RMB7.033 billion, marking a significant increase of 17.63% compared to the previous year. The net profit attributable to shareholders of the listed company reached RMB7.374 billion, demonstrating a year-on-year growth of 15.22%.
Furthermore, Luxshare Precision issued its annual performance forecast, anticipating that the growth of net profit attributable to shareholders of the listed company will be between 17.5% and 22.5% for the full year of 2023 compared to the previous year. This projection indicates a range of RMB10.767 billion to RMB11.225 billion, surpassing RMB10 billion for the first time in Luxshare's history.
The disclosed financial report underscores Luxshare Precision's consistent improvement in sales gross margin and net profit margin. These figures rose from 10.03% and 4.20% at the beginning of the year to 11.8% and 5.31%, respectively. The company's profitability has shown continuous enhancement, positioning it favorably for future growth.
With the imminent arrival of the traditional peak season for consumer electronics and the launch of new products by Apple, Luxshare Precision stands to benefit from significant opportunities. Luxshare Precision has enjoyed a fruitful collaboration with Apple Inc. spanning over a decade, encompassing product lines such as iPhone, Apple Watch, and AirPods. In a previous interview, Wang Laichun, Chairwoman of Luxshare Precision, emphasized the company's substantial contribution to iPhone production, stating that its iPhone business had doubled in size over the past year. Wang also likened the relationship between Luxshare Precision and Apple to that of a "phoenix" and a "swift bird," symbolizing their soaring success together.
Moreover, Apple CEO Tim Cook recently visited China and specifically toured Luxshare Precision's Apple Watch assembly factory alongside Wang Laichun. Additionally, Wang revealed that Luxshare Precision is preparing for the production of Apple's upcoming Apple Vision Pro, set to launch early next year. Ming-Chi Kuo, an analyst at TF International Securities, shares a positive outlook on the synergistic development between Luxshare Precision and Apple, anticipating further collaboration and stating that Luxshare Precision is currently involved in the introduction of a new high-end iPhone in 2024.
Looking ahead, Luxshare Precision expressed its commitment to strengthening existing businesses while proactively exploring new areas, technologies, and products. Leveraging its advantages of R&D in precision smart manufacturing platforms and processes, the company aims to achieve mutual integration and resource sharing across various sectors, including consumer electronics, communications, and automotive. By establishing a complete vertical integration loop, Luxshare Precision seeks to drive its development as desired.
In the communication field, Luxshare Precision has adopted a strategy of "core components + system-level products" to drive synergistic development. This approach encompasses a wide range of products, such as high-speed interconnects, optical modules, heat dissipation components, base station antennas, base station filters, and modules. The company has already achieved global leadership in specific areas. In addition, Luxshare also mentioned that the company's overseas business of high-speed copper connectors and wire harnesses is growing rapidly. The company's optical module products have quickly entered the top three data center customer projects, with some in testing and some already being delivered in small batches.
In the automotive sector, Luxshare Precision covers domains such as automotive wire harnesses/connectors, vehicle electronics, Intelligent cockpits, and autonomous driving. Its product portfolio includes high/low-voltage wire harnesses, special wire harnesses, charging guns, automotive connectors, Intelligent cockpit domain controllers, LCD instruments, and AR HUDs and DMSs. The company has established strong partnerships with leading international automotive brands.
It is worth mentioning that's, Luxshare Precision's recent investor relations record shows that its automotive business sector grew by over 50% from January to September 2023 and is expected to maintain good growth momentum in the next 3-4 years.
Overall, Luxshare Precision has made remarkable strides in improving profitability and diversifying its business layout throughout the first three quarters of this year. With the double-digit growth achieved in both revenue and net profit during the reporting period and considering the company's comprehensive development across multiple industries, categories, and customer segments, Luxshare Precision is poised for sustainable future growth.
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