Luxshare Precision Industry, a supplier to Apple Inc., has announced its intention to raise HK$24.27 billion ($3.1 billion) through a share sale in Hong Kong, according to a stock exchange filing on Tuesday. The Shenzhen-listed electronics manufacturer plans to issue 383.5 million H shares at a maximum offer price of HK$63.28 ($7.94) per share. The listing is part of Luxshare's strategy to diversify beyond consumer electronics, which accounted for nearly 80% of its revenue last year, as its automotive electronics business grows rapidly.

The company's automotive electronics segment has increased its share of revenue from 3.9% two years ago to 11.8% in 2025. Luxshare's move comes amid a broader shift in Apple's global supply chain, with the tech giant increasingly relying on Chinese manufacturers like Luxshare. This trend, referred to by analysts as the "red supply chain," highlights Apple's growing dependence on China amid escalating U.S.-China tensions.

Luxshare's share allocation will see 90% of the shares offered to international investors and the remaining 10% to Hong Kong retail investors. The company is expected to finalize the offer price on July 7, with pricing and allocation results released on July 8. Shares are slated to begin trading on July 9.

The filing also notes Luxshare's expansion into emerging sectors, aligning with broader industry trends. Foxconn Technology Group, another key Apple supplier, has similarly diversified beyond consumer electronics into AI servers, electric vehicles, and robotics. Luxshare's Hong Kong listing underscores its efforts to reduce reliance on consumer electronics and capitalize on growth in automotive and other high-tech sectors.

Key Details of Luxshare's Share Sale

Luxshare's diversification reflects a strategic pivot as it seeks to mitigate risks associated with its heavy reliance on consumer electronics. The automotive electronics segment's rapid growth, now contributing 11.8% of revenue, highlights the company's progress in this direction. The Hong Kong listing is expected to provide the capital needed to fuel further expansion in these emerging areas.

Luxshare Precision Industry Co., Ltd. released its 2025 Sustainability Report on June 23, 2026, detailing progress across environmental, social, and governance (ESG) priorities. The report highlights measurable advances in ESG governance, climate strategy, supply chain oversight, human rights protection, and sustainable innovation. Luxshare Precision continues to position sustainability at the core of decision-making through a comprehensive ESG governance framework led by its Board of Directors.

Strengthening Governance and Long-Term Strategy

The company operates a three-tier ESG governance structure spanning decision-making, planning, and execution. The Board provides overall oversight of ESG strategy, performance, and key issues, with 37.5% independent and female representation supporting balanced decision-making. Following the achievement of its 2025 sustainability targets, Luxshare Precision has introduced new 2030 targets spanning governance, operations, products, partnerships, and workplace practices. These targets focus on emissions reduction, energy efficiency, responsible sourcing, innovation, and employee well-being.

Advancing Climate Action with Measurable Progress

Climate action remains central to Luxshare Precision's sustainability agenda. Guided by TCFD recommendations, the company systematically assesses climate-related risks and opportunities. Its science-based target, aligned with the 1.5°C pathway, has been validated by the Science Based Targets initiative (SBTi), supported by a roadmap to achieve carbon neutrality by 2050. The report highlights tangible progress, including clean energy accounting for 64% of total consumption and absolute Scope 1 and 2 emissions decreasing by 25% compared with 2022 levels. Scope 3 emissions per CNY of value added were reduced by 19%.

Supplier engagement plays a critical role in expanding these efforts. Through training, on-site engagement, and broader capacity-building initiatives, the company has enhanced suppliers' environmental management capabilities. These efforts helped suppliers achieve 56,560 MWh in energy savings in 2025. In recognition of its performance, Luxshare Precision received an A rating in the CDP Climate Change questionnaire for the second consecutive year.

Building Responsible and Resilient Supply Chains

The report underscores the company's focus on transparency, traceability, and risk management across the supply chain, supported by a multidimensional risk framework. All suppliers are required to comply with the Supplier Code of Conduct. CSR audits are conducted primarily through on-site assessments and supplemented by online evaluations. In total, 1,815 suppliers were covered, including 100% of new raw material suppliers. A total of 2,345 risk-related issues were identified and addressed.

Luxshare Precision is committed to adhering to international guidelines such as the OECD Due Diligence Guidance. All 3TG minerals involved in products were sourced from RMAP-conformant smelters and refiners and were traceable to the country of origin.

Driving Inclusive Workforce Practices and Engagement

As a member of the Responsible Business Alliance (RBA), the company has established a comprehensive labor risk management mechanism. A network of 60 labor unions, along with regular satisfaction surveys, helps maintain open dialogue. Diversity and inclusion initiatives have increased the representation of women in leadership roles, while employees with disabilities now account for 0.8% of the workforce. Strengthened environmental, health, and safety management contributed to an 11% year-on-year reduction in injury rates per million working hours.

Integrating Sustainability Across Product Lifecycles

Sustainability considerations are increasingly embedded in product development, with a stronger emphasis on scaling clean technology applications. The company has broadened its clean technology portfolio to include energy system optimization solutions, advanced power management modules, industrial automation solutions, electric vehicle components, recycling-focused materials, and photovoltaic and energy storage systems. Grace Wang, Chairman and Chief Executive Officer of Luxshare Precision, noted that long-term value creation remains a guiding principle.