On August 25, LUXSHARE ICT fell 3.48% in regular trading, trading at HKD 56.75/share, with turnover of HKD 15.13 million. The decline follows the company's H1 earnings release on August 24, which revealed a significant gap between revenue and profit growth.

LUXSHARE ICT reported H1 revenue of RMB 174.5 billion, up 40.16% year-on-year, driven by enterprise consolidation (Leoni integration) and increased product shipments. However, attributable net profit rose only 18.04% to RMB 7.843 billion, while non-recurring-adjusted net profit grew a mere 6.47% to RMB 5.962 billion. Q2 adjusted net profit declined 0.13% year-on-year. The profit-revenue divergence stemmed from management expenses surging 75.49% and financial expenses swinging to a RMB 2.24 billion loss from exchange rate fluctuations. Operating cash flow turned negative at RMB 2.446 billion outflow.

The company guided Q3 cumulative net profit of RMB 13.25-14.40 billion, implying 15%-25% growth. Separately, institutional positioning shifts — including Goldman Sachs reducing its long position from 18.57% to 3.46% — have added selling pressure.

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