On September 17, 2024, ShanH Technology Limited (referred to as "闪回科技") from Anji County, Huzhou, Zhejiang, submitted a prospectus to the Hong Kong Stock Exchange, planning to go public on the Hong Kong IPO. This is the second application after its failed submission on February 26, 2024.
闪回科技 prospectus link:
https://www1.hkexnews.hk/app/sehk/2024/106791/documents/sehk24091700943_c.pdf
Main Business
闪回科技, as a Chinese company engaged in post-market trading services for consumer electronics products, focuses on the mobile phone recycling service market. The company strategically cooperates with upstream resource partners, including mainstream consumer electronics brands and their designated distributors, large merchants of Chinese consumer electronics products, and large mobile network operators, to provide integrated solutions. The company mainly initiates the recycling process through trade-ins and facilitates the sale of new devices, as well as standardized resale of used mobile phones.
According to Frost Sullivan data, based on the total amount of consumer-side recycling transactions in 2023, ShanH Technology Limited is the largest offline trade-in mobile phone recycling service provider in China, as well as the third-largest mobile phone recycling service provider in China, with market shares of approximately 7.4% and 1.4% respectively.
ShanH Technology Limited has established and developed two core enterprise brands, "闪回收" (FlashBack) and "闪回有品" (FlashBack Quality). The company primarily obtains supplies of used consumer electronics products through trade-ins with its upstream resource partners at offline and/or online stores. A small number are obtained through idle recycling. Individual consumers (the ultimate suppliers) purchase new consumer electronic devices at a discount by trading in their used consumer electronics products as part of the payment. Subsequently, ShanH Technology Limited processes the purchased used consumer electronics products through its testing and operation centers, using proprietary testing, grading, and pricing technologies, and mainly sells these electronic products through its online platform "闪回有品" (FlashBack Quality), as well as its proprietary online stores operating on multiple third-party e-commerce platforms.
ShanH Technology Limited's revenue mainly comes from selling used consumer electronics products (mostly mobile phones) to buyers in the second-hand market through its online platform "闪回有品" (FlashBack Quality) and its proprietary online stores operating on third-party e-commerce platforms. The company also sells a portion of the purchased consumer electronics products through offline corporate sales and provides various value-added and after-sales services to buyers.
Shareholder Structure
According to the prospectus, in the shareholder structure of ShanHuiShou Technology before its listing,
Mr. Jianyi Liu holds 31.71% of the shares through ShanHuiShou BVI;
MGY Wisdom BVI (Mr. Liu indirectly holds 80% and Ms. Hairong Yu indirectly holds 20%) holds 10.72% of the shares;
Mr. Liu holds a total of 40.29% of the beneficial interest mentioned above.
Ms. Hairong Yu holds 2.92% of the shares through MGY Alliance BVI;
Mr. Xiaomin He holds 2.44% of the shares through Flash Recycle BVI;
Mr. Lexin Lin holds 1.79% of the shares through Lightning Recycle BVI;
Mr. Luoyuan Shun holds 0.71% of the shares through Recycle Lifestyle BVI.
Mr. Xie Siyin holds 1.28% of the shares through SHS Blooming BVI.
Mr. Yin Xuejun holds 0.57% of the shares through SHS Flash BVI.
Mr. Ge Dong holds 0.38% of the shares through SHS Prosperity BVI.
Ms. Yuan Shuying's Flexman (HK) holds 3.05% of the shares through Barryspace BVI.
Lei Jun's spouse holds 3.90% of the shares through Shunwei Technology and Hangzhou Shunying, through Shanghai Wenwei.
Xiaomi (01810.HK) holds 6.83% of the shares through Shanghai Jiaozheng.
Torch Innovation (832793.OC) holds 8.50% of the shares through Shanghai Xiuhui.
Fengtiao Shiguang, a subsidiary of Zhuanzhuan, holds a 4.42% stake through World Circulation BVI.
Mr. Duan Liping holds a 2.93% stake through ShanHS Sword BVI.
Shenzhen Smart City Investment (22.85%, GP, a subsidiary of Shenzhen State-owned Assets Supervision and Administration Commission) and Huang Junyong (77.15%) Smart Investment Wealth, hold a 1.64% stake.
Ms. Zhu Yongmei (Partner at Guohao Law Firm) holds a 5.12% stake through Yuntouhang BVI.
Mr. Chen Jiangao holds a 1.46% stake through SHS Thunder BVI.
Mr. Gao Zibin holds a 4.34% stake through SHS Glory BVI.
Mr. Wang Shujia holds a 1.07% stake through SHS Lightning BVI.
Mr. Hu Qinghe and Ms. Peng Xiaomei hold a 1.89% stake through Long Shining BVI.
Anji County Finance Bureau ultimately controls Anji Guorong BVI, holding 2.33% of the shares.
Management Team
The board of directors of Flashback Technology consists of 8 directors, including:
4 executive directors: Mr. Liu Jianyi (Chairman of the Board, General Manager), Ms. Yu Hairong (Chief Executive Officer), Mr. He Xiaomin (Chief Production Officer), Mr. Lin Lexin (Chief Technology Officer);
1 non-executive director: Mr. Jiang Wen;
3 independent non-executive directors: Mr. Hou Siming, Ms. Liang Jianchang, Ms. Wen Zhuyun.
In addition to the executive directors, the senior management includes Ms. Pan Jianhong, Chief Financial Officer.
Corporate Performance
The prospectus shows that in the past 2021, 2022, 2023, and the first half of 2024, Flashback Technology's revenue was RMB 0.75 billion, 0.919 billion, 1.158 billion, and 5.77 billion yuan, respectively, with corresponding net losses of 48.708 million, 99.084 million, 98.268 million, and RMB 4012.6 million.
Intermediary Team
The intermediary team for Flashback Technology's IPO mainly includes: Zero2IPO as its exclusive sponsor; KPMG as its auditor; Han Kun, Fangda as its domestic and Hong Kong lawyers respectively; Dentons, Deacons as its brokerage domestic and Hong Kong lawyers respectively; and Frost & Sullivan as its industry consultant.
