The first A-share Year of the Dragon ushered in a new **, which is a "dragon generation"**According to the arrangement, Longcheer Technology (603341) launched the subscription today (February 21), which is also the only new ** in the week after the Spring Festival holiday.
According to the issuance announcement, Longcheer Technology will land on the main board of the Shanghai Stock Exchange, issuing ** 26 yuan shares, the number of shares issued this time is 60 million shares, and the issue price-earnings ratio is 2413 times. The subscription limit is 140,000 shares, with a market value of 140,000 yuan.
According to the calculation of Longcheer Technology's issuance, the total amount of funds raised is expected to be 15600 million yuan, which was invested in Huizhou intelligent hardware manufacturing project, Nanchang intelligent hardware manufacturing center reconstruction and expansion project, Shanghai R&D center upgrade and construction project and supplementary working capital.
As a company mainly engaged in ODM business of smart products, in the first three quarters of 2023, Longcheer Technology experienced a decline in revenue and an increase in attributable net profit. In addition, Xiaomi is not only a related party of Longcheer Technology, but also the company's largest customer, and the company's related party transactions with Xiaomi account for a relatively high proportion, accounting for more than 40% from 2020 to 2022.
Synthesis |Editor of Beijing Business Daily arti
This article is for informational purposes only and does not constitute any trading advice
According to the prospectus, Longcheer Technology is a technology enterprise engaged in the R&D, design, manufacturing and comprehensive services of intelligent products, and belongs to the ODM industry of intelligent products. The company's business covers many countries and regions, providing professional intelligent product comprehensive services for the world's leading consumer electronics brands and the world's leading technology companies.
According to Counterpoint data, Longcheer Technology, Huaqin Technology and Wingtech Technology are the leading manufacturers in the global smartphone ODM IDH (Original Design Manufacturer Independent Design Company) market. Longcheer's main customers include Xiaomi, Samsung Electronics, Lenovo, Honor, OPPO, vivo, China Post Communications, China Unicom, China Mobile, China Telecom, etc.
From 2020 to 2022, Longcheer Technology's revenue and net profit have increased steadily. However, since 2023, the company's operating income has declined, and the company's operating income in the first three quarters of 2023 has declined by 24% year-on-year41%, from the perspective of the whole year of 2023, Longcheer Technology expects that the operating income will also decline.
Financial data show that from 2020 to 2022, Longcheer Technology's operating income will be about 1642.1 billion yuan, 2459.6 billion yuan, 293$4.3 billion; The corresponding attributable net profit was about 29.8 billion yuan, 54.7 billion yuan, 5600 million yuan.
In the first three quarters of 2023, Longcheer Technology achieved an operating income of about 173500 million yuan, down 2441%；The corresponding attributable net profit is about 50.7 billion yuan, a year-on-year increase of 2616%。
Longcheer Technology said that from January to September 2023, the company's operating income decreased year-on-year, mainly due to the fact that the smartphone market is still in the slow recovery stage and the high base in the same period last year.
According to the prospectus, Xiaomi has become a related party of the company because Tianjin Jinmi and Suzhou Shunwei hold more than 5% of the company's shares, of which Tianjin Jinmi holds Longqi Technology 913% equity, Suzhou Shunwei holds 818% equity. In addition, Liu De, Executive Director and Senior Vice President of Xiaomi Group, serves as a director of Longcheer Technology.
The industry in which Longcheer Technology is located belongs to the key industries supported and encouraged by the national industrial policy, with large market space, stable business model, large scale, and long-term operating performance in the forefront of the global industry.
After the successful implementation of the raised funds investment project, it will help improve the ODM delivery capacity of smart products; It is an expansion and extension of the company's existing main business and core technology, which is expected to provide strong support for the company's sustainable development, further improve the company's production capacity, meet the company's business growth needs, help maintain sustainable competitiveness, effectively improve profitability in general, and maximize shareholder value.
As a leading ODM of smart products in China, Longcheer Technology is driving the efficiency of itself and the industrial chain through R&D investment, and is ready to meet a new wave of growth in smart product manufacturing. According to the prospectus, the funds raised from this IPO will also be invested in the Huizhou intelligent hardware manufacturing project, the Nanchang intelligent hardware manufacturing center reconstruction and expansion project, and the Shanghai R&D center upgrade and construction project. At the same time, the company will actively fulfill its social responsibilities, further invest in environmental protection, public welfare and other fields, and make greater contributions to the society.