Pegatron announced on July 16th the disposal of 4.3 million shares in Luxshare Precision, a prominent player in China’s red supply chain. This sale resulted in a profit of RMB 85.82 million (approximately NT$387 million). Since July, Pegatron has executed two separate sales of Luxshare shares, cumulatively earning around 864 million yuan.
The latest transaction was executed through Pegatron Technology (Shanghai), with shares sold at RMB 42.7 (approximately NT$193) each, totaling RMB 184 million (approximately NT$828 million). Pegatron cited the realization of investment income as the reason for the sale.
Following this sale, Pegatron still holds 29,845,105 shares of Luxshare, valued at approximately NT$5.07 billion, representing a 0.41% stake. Earlier this month, Pegatron sold 5.7 million Luxshare shares at RMB 41.31 (approximately NT$186) per share, generating a profit of 477 million yuan from that transaction.
The combined profit from both sales, totaling 864 million yuan, will be included in Pegatron’s outside income for this quarter. However, the precise impact on Pegatron’s non-operating income, given the previous inclusion of Luxshare stock in Pegatron’s financial assets evaluation, remains to be detailed by the company.
Pegatron has historically maintained a long-term holding in Luxshare, but recent volatility in Luxshare’s stock price has introduced instability in Pegatron’s financial reports. Fluctuations in Luxshare’s value have caused significant variations in Pegatron’s quarterly profits.
Chairman Tzu-Hsien Tung has emphasized that Pegatron’s investment in Luxshare is purely financial, with adjustments made based on market conditions.
Pegatron’s strategic management of its Luxshare holdings continues to reflect its cautious yet opportunistic financial approach, balancing investment returns with market dynamics.
