134% Crash: Are Rising Memory Costs Crushing Lens?

Shocking Earnings Collapse! On April 16, Lens Technology’s Q1 2026 financial report was officially released, delivering a "disastrous" performance that shattered market expectations.

Earnings Meltdown: Core Metrics Under Heavy Pressure

In the first quarter of 2026, Lens Technology achieved operating revenue of 14.139 billion RMB, a year-on-year decrease of 17.13%. Net profit attributable to shareholders of the listed company was -150 million RMB, a sharp year-on-year decline of 134.88%, shifting from profit to loss. Net profit after deducting non-recurring gains and losses was -174 million RMB, a year-on-year decrease of 146.08%.

Lens Technology disclosed that the decline in revenue was primarily affected by reduced income from smartphones and laptops during the period. According to the company's 2025 annual report, smartphone and computer business accounted for as much as 82.23% of its total revenue.

In addition to the revenue decline, the net loss was driven by a combination of factors, including year-on-year increases in management and R&D expenses, widening net foreign exchange losses, and rising valuation losses on forward foreign exchange settlements. These factors collectively led the net profit to turn negative. Notably, the company’s net profit in the fourth quarter of 2025 still reached 1.175 billion RMB, showing significant volatility on a quarter-on-quarter basis.

Furthermore, Lens Technology’s inventory in Q1 2026 reached a six-quarter high of 7.74 billion RMB. Inventory turnover days increased significantly, jumping from 40.58 days in the 2025 annual report to 54.66 days.

The Deep Crisis of the Consumer Electronics Industry Remains Unresolved

According to preliminary data from IDC’s "Worldwide Quarterly Mobile Phone Tracker," global smartphone shipments fell 4.1% year-on-year to 289.7 million units in the first quarter of 2026. IDC anticipates that the Q1 slowdown is merely a mild precursor to the full-year outlook for 2026, as supply constraints and price increases related to memory will further suppress market growth.

IDC also released preliminary tracking data for the global PC market in Q1 2026, showing that global PC (laptop) shipments slightly increased by 2.5% year-on-year to 65.6 million units. As cost pressures are passed down to terminal markets, IDC judges that PC shipments will further decline in the remaining quarters of 2026 as retail prices continue to rise, pushing the market into a high-pressure cycle.

Shortages in memory chip supply have forced manufacturers to reduce shipments. Meanwhile, sharp price increases have driven up Bill of Materials (BOM) costs, forcing multiple leading brands to raise prices, which has severely impacted demand in price-sensitive regions. Although terminal manufacturers are adopting stricter cost controls, cutting marketing and channel support, and increasingly employing "spec-down" strategies, these measures also limit growth.

According to Lens Technology’s 2025 annual report, its smartphone and computer business accounted for 82.23% of revenue, while smart headsets and wearables accounted for 5.35%. The shortage and rising prices of memory products not only impact demand for smartphones and computers but also negatively affect the market demand for smart headsets and wearables.

Currently, the predicament faced by Lens Technology is largely driven by the upstream supply chain and remains difficult to resolve in the short term.

It is worth noting that Lens Technology’s multi-sector layout has begun to show results. Its automotive-grade cockpit business has become an important growth engine. As the scale of this business expands, it will effectively hedge against the downward risks of the consumer electronics business.