(Yicai Global) Aug. 25 -- Luxshare Precision Industry’s shares fell despite the Apple supplier reporting a 22 percent increase in profit and a 32 percent jump in revenue in the first six months of the year.

Luxshare [SHE:002475] closed down 3.8 percent today at CNY37.20 (USD5.70), after falling more than 4 percent earlier in trading. The stock has lost 40 percent of its value since the start of the year, as clouds gathered over the global electronics industry.

First-half net profit was CNY3.1 billion (USD47.7 million), the Guangdong province-based company said in an earnings report released yesterday. Revenue in the six months ended June 30 reached a record CNY48.1 billion (USD7.4 billion).

Luxshare’s consumer electronics division had revenue of CNY40.4 billion, up 30 percent from a year ago, accounting for almost 84 percent of its total first-half income. Revenue from its computers and automobile businesses also climbed by 64 and 39 percent, respectively.

Luxshare did not provide any explanation for the earnings growth or give any guidance. But it noted that the industry is facing challenges from the global chip shortage, high raw material prices, repeated outbreaks of Covid-19, the slowdown in many economies, and increasing labor costs.  

The company also said the majority of its clients are in the consumer electronics business. Luxshare conceded that it could face operating risks if there are any serious issues with key clients, but said its main customers are top-ranking firms in the sector that have had a steady partnership with the company for years. 

Editor: Tom Litting