Lens Technology's Net Profit Drops 50% in First Three Quarters, Squeezed by Forex Losses and Capital Expenditure
nashnova research
Lens Technology (蓝思科技, 300433.SZ) reported nine-month net profit of RMB 1.42 billion, down 50% year-on-year, as forex losses alone wiped out nearly RMB 800 million; heavy capex expansion and a near-impossible Q4 target add to the pressure.
Profit halved — where did the money go?
Nine-month revenue hit RMB 47.9 billion, down 10.74% YoY; net profit attributable to shareholders came in at RMB 1.42 billion, down 50.06%.
This means → profit fell nearly five times faster than revenue. Sales dipped; earnings collapsed.
Recurring net profit (stripping out one-off gains) was RMB 998 million, down 63.07%. In plain terms = the core business is shrinking even faster than the headline number suggests.
How did FX losses wipe out RMB 800 million?
Nine-month finance costs came to RMB 716 million versus a negative RMB 74 million a year ago — a swing of roughly RMB 790 million.
Lens Technology earns overseas revenue mostly in US dollars. The renminbi strengthened in the first half, and forex losses reached RMB 492 million for H1 alone.
In plain terms = the company earns dollars but spends renminbi. When the renminbi rises, the same dollar revenue converts into fewer renminbi, hitting the books as a loss.
The quarterly report gives only a nine-month total; the Q3 forex hit alone cannot be isolated.
Why is the core smartphone business shrinking?
Per the interim report, smartphone and PC revenue was RMB 22.38 billion in H1, down 17.67% YoY — accounting for 77.54% of total revenue.
Management blamed a memory-chip downcycle (memory chips store data in phones and PCs) dragging end-demand, plus lower assembly revenue.
This means → Lens's biggest revenue engine is decelerating, and it is the segment that makes up nearly four-fifths of sales.
Smart headset and wearable revenue grew 7.95%, but gross margin dropped 10.55 percentage points — more sales, less profit. No segment breakdown was disclosed for Q3.
Profits are falling — why is the company still spending aggressively?
Nine-month capex (cash paid for fixed and intangible assets) reached RMB 7.68 billion, up roughly 18% YoY.
Construction-in-progress surged to RMB 3.28 billion, up 265% from year-start, driven by the Dongyuan facility.
This means → the company sits in a mismatch: shrinking profits, expanding investment.
Long-term borrowings rose to RMB 8.32 billion, up 90.48% from year-start; operating cash flow fell to RMB 4.71 billion, down 19.35%. In plain terms = internal cash generation is weakening while borrowing accelerates — the funding squeeze is visible.
Broker forecasts need a 2.5× Q4 — is that realistic?
Before the quarterly report, Soochow Securities and Guosen Securities forecast full-year net profit at RMB 4.33 billion and RMB 4.49 billion respectively.
With only RMB 1.42 billion booked through nine months, hitting those targets requires roughly RMB 2.9–3.1 billion in Q4.
Last year's Q4 net profit was RMB 1.18 billion. This means → this year's Q4 would need to be 2.5–2.6 times last year's — an extremely tall order.
Both forecasts were issued before this report and do not reflect the latest broker views. Whether brokers cut estimates, and whether Q4 earnings can beat expectations, are the key things to watch next.
市场有风险，内容仅供研究参考，不构成投资建议。