On the evening of October 25, Lens Technology (300433.SZ), one of the top three players in the "Apple supply chain," announced its latest financial results, revealing a year-on-year profit decline that essentially halved its earnings in the third quarter.

According to the financial report, in the third quarter of 2026, Lens Technology reported revenue of 19.035 billion yuan, an 8.05% decrease from the same period last year, and net profit attributable to shareholders of 843 million yuan, marking a substantial 50.42% year-on-year drop.

From January to September 2026, Lens Technology’s revenue amounted to 47.902 billion yuan, a 10.74% decline year-on-year, while net profit attributable to shareholders of the listed company was 1.420 billion yuan, a significant 50.06% decrease compared to the previous year.

Multiple factors contributed to this sharp downturn in financial performance, including weakening market demand, exchange rate volatility, and delays in the launch of major client products. With the iPhone Duo experiencing strong sales, could Lens Technology, which supplies flexible glass and nano-films for the device, be poised for a new growth turning point?

The day following the earnings release, Lens Technology’s stock opened lower but gradually recovered. By the close of trading on October 26, it stood at 27.96 yuan per share, up 0.54%, with a total market capitalization of 147.594 billion yuan.

Massive Exchange Losses: 650 Million Yuan Gone

At the investor conference on October 25, Jiang Nan, the board secretary of Lens Technology, explained that the revenue decline was primarily driven by three factors: sluggish terminal market demand, shifts in client product schedules, and exchange rate fluctuations.

According to Sing Tao’s observations, rising storage costs since the beginning of the year have dampened demand for mobile phones and computers, affecting most manufacturing companies in the supply chain.

Lens Technology primarily provides structural components, functional modules, and assembly services for mobile phone and computer manufacturers. Revenue from this segment has declined year-on-year this year.

In terms of profitability, beyond the reduction due to declining operating revenue, the largest non-operating factor impacting profits was the significant exchange losses caused by the appreciation of the RMB.

According to Sing Tao’s inquiries, Lens Technology consistently generates over half of its revenue from overseas markets, with Apple as its largest client, followed by industry giants like Samsung and Tesla, all of whom settle transactions in USD.

In the first nine months of this year, Lens Technology incurred exchange losses of up to 654 million yuan, compared to exchange gains of 115 million yuan during the same period last year. The net impact was a 769 million yuan year-on-year decrease in exchange-related gains and losses.

Additionally, rising expenses—including provisions for equity incentive costs, higher R&D expenditures, and increased management costs—further eroded profits.

Jiang Nan stated that looking ahead to the fourth quarter, unavoidable challenges such as unilateral adverse exchange rate fluctuations, rising storage chip prices, and raw material price volatility are expected. However, their adverse impact on Lens Technology is likely to gradually diminish.

Exclusive Nano-Film Supply: How Much Will the iPhone Duo Benefit?

Whether Lens Technology’s fourth-quarter performance can rebound depends largely on its foldable screen business.

For Apple’s newly launched foldable phone, the iPhone Duo, Lens Technology supplies structural components such as UTG ultra-thin flexible glass, nano-textured CPI film, and 3D glass covers.

UTG ultra-thin flexible glass and hinges are considered the two most valuable components in the foldable phone manufacturing chain. Lens Technology holds a majority share of the glass supply for the iPhone Duo and exclusively provides the nano-textured film.

Board secretary Jiang Nan said that the high added value and significant market share in foldable phone manufacturing would drive substantial business growth for the company in the future.

Despite controversies over the iPhone Duo’s peelable nano-textured CPI film design and software incompatibility, the device has remained in high demand and commands a market premium since its launch.

Sing Tao learned that Apple has recently increased orders to the supply chain by 30% and significantly raised its shipment target for the next 12 months from 9.7 million units to 14 million units, an increase of about 44%.

Lens Technology stated that it is fully prepared in terms of production capacity. Jiang Nan said that currently, the company’s relevant production lines are operating at full capacity, with overtime production and shipping. As of the end of the third quarter, Lens Technology’s inventory book value reached 9.36 billion yuan, a significant 35.02% increase from the beginning of the year.

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