Lijing Innovation Relies on a Single Customer for 70% of Revenue

Produced by | Zidan Finance

Author | Ma Qiong

Editor | Dan Zong

Art | Qianqian

Review | Song Wen

In July 2026, Luxshare Precision rang the bell to list on the Hong Kong Stock Exchange, completing its "A+H" dual-platform setup, with market capitalization briefly exceeding 440 billion yuan. Even as the excitement of that capital feast lingered, the Wang family had already revealed its next card.

According to Hong Kong Stock Exchange disclosures, Lijing Innovation recently filed its second application for a main-board listing with the exchange. Founded in 2018 by Wang Laixi, the younger brother of Luxshare Precision founder Wang Laichun, the company counts Wang Laichun herself as its chairwoman.

From its growth path to its organizational structure, Lijing Innovation bears the unmistakable imprint of the "Luxshare system." In just eight years, the company has leveraged a series of intensive acquisitions and financing rounds to rise from industry newcomer to the top tier of global consumer-electronics camera module makers. But behind the rapid growth lie intertwined challenges: customer concentration, related-party transactions, idle capacity and debt-servicing pressure.

As the current dividend cycle gradually peaks, whether Lijing Innovation can shake off its dependence on major clients, absorb the assets acquired through past M&A deals and deliver on expectations for a second growth curve has become the biggest question hanging over the capital markets.

1. Family at the helm, acquisitions paving the way

Lijing Innovation's growth story is a textbook case of expansion driven by mergers and acquisitions.

In 2018, Wang Laixi, who had served as general affairs manager at Luxshare Precision for more than a decade, founded Lijing Innovation. Much of the company's core management team comes from the Luxshare Precision system.

Wang Laixi serves as the company's executive director, mainly responsible for the group's strategic planning, business policies and overall management. Wang Laichun is both non-executive director and chairman of Lijing Innovation, and also serves as chairman of Luxshare Precision.

According to the 2025 Hurun China Rich List, Wang Laichun ranked 55th with a fortune of 85.5 billion yuan, making her the richest woman in Chaoshan and the widely known "Apple supply chain queen."

According to the prospectus, the four siblings Wang Laixi, Wang Laichun, Wang Laisheng and Wang Laijiao together form the controlling shareholder of Lijing Innovation. As of July 22, 2026, the four siblings collectively control about 48.06% of the company's shares.

From its inception, Lijing Innovation embarked directly on a path of expansion through acquisitions.

In 2018, Lijing Innovation acquired the CCM (camera module) business unit of Lite-On Technology, gaining mature mass-production lines, a patent portfolio and Android customer resources, thereby entering the consumer electronics camera module market.

Over the following nearly seven years, Lijing Innovation rapidly completed its industry puzzle through three key acquisitions.

In 2021, Lijing Innovation acquired Cowell, gaining entry into the camera module supply chain of a leading consumer electronics brand. In 2022, it spent 910 million yuan to acquire Lite-On Technology's imaging business unit, extending its operations into smart office areas such as printers and scanners. In 2025, it completed the acquisition of an 80 percent stake in Konica Minolta's Shanghai plant, securing mass-production capabilities for high-end optical lenses and automotive lenses.

Following this series of capital moves, Lijing Innovation has built a complete optical product portfolio spanning consumer electronics, automotive electronics, smart office, XR, robotics and other emerging sectors.

(Image / Lijing Innovation official website)

This expansion logic closely mirrors that of Luxshare Precision. After going public, Luxshare Precision relied on frequent, high-paced acquisitions, first vertically integrating "components—modules—complete machines" within the Apple supply chain, then replicating its precision manufacturing capabilities into new fields such as automotive and AI computing power, achieving leapfrog growth.

The difference is that Luxshare Precision uses its connector business as an internal foundation to extend into multiple fields, while Lijing Innovation has focused on optics as a single track since its inception, using acquisitions to make a rapid entry from zero to one, then vertically integrating the supply chain internally and broadening downstream application scenarios externally.

The efficiency of capital is directly reflected in industry standing. According to Frost & Sullivan data, by 2025 revenue, Lijing Innovation ranked second globally in consumer electronics camera modules and first among Chinese mainland companies.

In the mid-to-high-end smartphone camera module segment, it holds a 7.4% market share. In laptop and tablet camera modules, it ranks first among global suppliers, with market shares of 16.0% and 22.1%, respectively.

(Image / Lijing Innovation prospectus)

However, the close family ties between the actual controllers of Lijing Innovation and Luxshare Precision have also raised market questions about the company's operational independence.

The prospectus discloses that Lijing Innovation will continue to conduct related-party transactions with Luxshare Precision. From 2026 to 2028, the aggregate annual caps under the procurement framework agreements between the company and the Luxshare group are RMB 3.289 billion, RMB 3.618 billion and RMB 3.980 billion, respectively.

Although the company has brought in independent non-executive directors at the governance level as a supervisory safeguard, the ongoing large related-party transactions still leave the market questioning the fairness of transaction pricing.

2. Integrated customer and supplier: 70% of revenue depends on a single customer

By trading capital for time through mergers and acquisitions, Lijing Innovation quickly secured orders from top-tier customers and drove explosive growth in performance, but it also planted the risk of high customer concentration.

The prospectus shows that from 2023 to 2025, Lijing Innovation posted revenue of 15.248 billion yuan, 27.914 billion yuan, and 34.755 billion yuan, respectively, a compound annual growth rate of 51.0%; net profit was 588 million yuan, 1.052 billion yuan, and 1.690 billion yuan, respectively, a compound annual growth rate of 69.6%.

In the first five months of 2026, the company reported revenue of 13.624 billion yuan, up 14.7% year on year, and net profit of 776 million yuan, up 48.5% year on year.

By revenue mix, more than 90% of the company's revenue comes from consumer electronics. Automotive electronics, smart office and other businesses still account for a very small share of revenue, and the second growth curve remains in the ramp-up stage, making it hard to offset consumer electronics cycle fluctuations in the short term.

(Chart / Lijing Innovation prospectus)

The core driver of this growth curve is the continued ramp-up of orders from its largest customer, with dependence on that single major client continuing to rise.

During the reporting period, Lijing Innovation's revenue from Customer A was 6.083 billion yuan, 17.181 billion yuan, 24.689 billion yuan and 9.285 billion yuan, accounting for 39.9%, 61.6%, 71.0% and 68.2% of the company's total revenue, respectively. The combined revenue share of the top five customers rose in step, reaching 77.9%, 88.7%, 90.0% and 90.1%.

(Chart / Lijing Innovation prospectus)

The prospectus describes Customer A as a globally leading consumer electronics brand company. Although Lijing Innovation did not disclose Customer A's identity, it is widely believed to refer to Apple.

Notably, a business model heavily reliant on a few core customers means that customer churn, order volatility or even cancellations will directly hit the company's performance. O-Film's ejection from the Apple supply chain that year serves as a cautionary tale.

More unusual is the two-way "customer-supplier integration" arrangement: Customer A is not only Lijing's largest customer but also a key supplier of raw materials. During the reporting period, the company purchased sensors, PCBs, VCMs and integrated circuits from Supplier A, with purchases accounting for 20.7%, 36.5%, 48.5% and 47.3%, respectively.

The cost structure further amplifies operating pressure. According to the prospectus, inventory costs are the largest component of cost of sales, remaining at 88.0%, 90.1%, 90.9% and 90.1% of cost of sales during the reporting period.

Sales depend on its orders, while procurement depends on its supply of components. Facing the same dominant giant at both ends of the chain, this two-way dependence can amplify bargaining disadvantages and squeeze profit margins.

The prospectus shows that Lijing Innovation's overall gross margin has long hovered at low levels, at 12.0%, 10.8%, 10.8% and 11.6% in the respective periods. By comparison, Sunny Optical's overall gross margin reached 19.7% in 2025, a significant gap between the two.

The cost of acquisition-driven expansion is also reflected on the balance sheet. Multiple cash acquisitions, combined with continued capital expenditure on production lines, have pushed up goodwill and debt burdens.

As of the end of 2025, Lijing Innovation's goodwill stood at 1.958 billion yuan, making post-acquisition integration and absorption an important issue as well.

In addition, Lijing Innovation's leverage ratio rose from 32.6% at the end of 2025 to 42.5% as of May 31, 2026, mainly due to increases in bank loans and lease liabilities.

The prospectus shows that as of the end of May 2026, bank loans had reached 4.77 billion yuan, up significantly from 3.464 billion yuan at the end of 2025. The expansion of debt brings real pressure on principal and interest repayments, putting cash flow management to the test.

(Image / Lijing Innovation prospectus)

"BULLET FINANCE" (子弹财经) contacted Lijing Innovation about progress in customer diversification and the fairness of related-party transaction pricing, among other issues. As of press time, no response had been received.

3. Idle capacity and the countdown of the performance commitment

Rapid expansion requires capital infusion, and Lijing Innovation has maintained a tight pace of primary-market fundraising with a stellar lineup of investors.

2022 marked Lijing Innovation's fundraising peak, with the company completing three rounds of financing in succession — Series A, Series A+ and Series A2 — raising a total of about 3.24 billion yuan.

Of this, the Wang family invested 1.6 billion yuan through Lijing Ltd., while bringing in top-tier institutions including IDG Capital, Sequoia China, Legend Capital, CPE Yuanfeng and Joy Capital, as well as CITIC Securities Investment, CECEP CICC Capital and several state-owned capital platforms.

From 2023 to 2024, Lijing Innovation continued to raise funding, further expanding its roster of investors.

In March 2023, China Mobile's China Mobile Fund joined the A2+ round with an investment of 500 million yuan. In June 2024, the company completed a 1.5 billion yuan Series B round led by Wuxi Guoshou, China Mobile Investment, CITIC Securities Investment and others, at which point Lijing Innovation's funding price had reached 16.32 yuan per share.

Based on the per-share cost of the Series B round, Lijing Innovation's post-money valuation reached 22.5 billion yuan.

Tied to the intensive fundraising is a strict valuation adjustment agreement (VAM), whose core term requires Lijing Innovation to complete an IPO within seven years from March 1, 2022. If it fails to list on time, investors have the right to demand reinstatement of their redemption rights.

Lijing Innovation had originally filed its prospectus with the Hong Kong Stock Exchange in November 2025, but because it failed to pass review within six months, the prospectus automatically lapsed at the end of May 2026. Part of the time window has already been used up, meaning the company has only about two and a half years left to complete its listing.

According to the prospectus, the proceeds from this IPO will be used for R&D and innovation in precision optical products and related technologies, optimization and upgrading of the intelligent manufacturing platform, investment in and acquisition of high-quality upstream targets, repayment of bank borrowings, and replenishment of working capital.

Notably, the IPO retains funds for mergers and acquisitions, signaling the company's intent to deepen integration across the optical industry chain. The fundraising plan also includes no major capacity expansion projects, echoing the underutilized capacity in parts of its business.

According to the prospectus, capacity utilization for the company's consumer electronics products was 51.4%, 66.6%, 73.7% and 65.3% during the reporting period, respectively — an overall recovery but with fluctuations. Utilization for automotive electronics products, meanwhile, hovered at a low level between 36.2% and 43.6%.

(Image / Lijing Innovation prospectus)

On the low capacity utilization of its automotive business, the company explained that rapid industry iteration and swift customer shifts prompted a strategy change to focus on major leading customers, with expectations that subsequent order releases will lift utilization rates.

Regarding the decline in capacity utilization of the smart office segment in the first five months of 2026, the company attributed it mainly to temporary disruptions caused by production line relocation and recommissioning.

For an optics company founded just eight years ago with revenue already exceeding 30 billion yuan, Lijing Innovation has used acquisitions and capital to achieve growth far outpacing its peers. But as the windfall from its buying spree fades, deeper problems — customer concentration, thin profits, idle capacity and rising debt — are surfacing one by one.

Whether the company can successfully enter the capital market within the remaining earn-out window, and whether it can truly forge an independent growth path after listing, free of the "Luxshare ecosystem" and the "Apple supply chain," Zidan Finance will continue to follow closely.

*The cover image in this article is from Shetuwang, under the VRF license.

       Original title : A "Replica" of Luxshare Precision? Backed by Wang Laichun's Family, 70% of Luxshare Innovation's Revenue Relies on a Single Customer