This week is the first trading week for A-shares in the Year of the Dragon, according to the current IPO arrangementThere is only 1 new stock subscription, which is Longcheer Technology, a new stock on the main board of the Shanghai Stock Exchange on Wednesday (February 21). Longcheer Technology plans to issue 60 million new shares and plans to raise 1.8 billion yuan.
According to the prospectus, Longcheer Technology isConsumer electronics ODM (Original Design Manufacturer) global leader, engaged in intelligent product research and development, design, manufacturing, comprehensive services of science and technology enterprises, belongs to the intelligent product ODM industry, the core products of the intelligent product industry for smart phones, with smart phones as a link to tablets, laptops, AIoT products and many other intelligent products. The company is a major OEM of mobile phone manufacturers such as Xiaomi, Honor, OPPO, and vivoIt has delivered "explosive" products such as Redmi 9A 9C and Redmi Note 10 with cumulative shipments of more than 10 million units.
According to Counterpoint data, Longcheer Technology's smartphone shipments in 2022 reached 13.8 billion units, accounting for 28% of global smartphone ODM IDH shipments, ranking first in the world. And standing behind this ODM leader is a Zhejiang businessman from Dongyang who graduated from Zhejiang University.
Guaranteed to Zhejiang University, master's and doctoral studies.
In two years, he went from engineer to general manager of products
Du Junhong, founder of Longcheer Technology,Vice President of Zhejiang Chamber of Commerce in Shanghai. In 1973, he was born in an ordinary peasant family in Dongyang, Zhejiang. Like most young students in rural areas, there is only one goal, which is to read good books and get into good universities, which also means that they can change the trajectory of their lives. Du Junhong was a top student at the beginning of his childhood, and was later sent to Zhejiang University in the 1990 mixed class of electrical engineering because of his excellent grades. After that, he achieved a master's and doctoral degree in succession
In 1999, Du Junhong, who graduated with a Ph.D., successfully joined ZTE Shanghai R&D CenterStarting as an engineer, he became a project manager in half a year, a department manager in another year, and one of the company's 25 product general managers in half a year. At the age of 27, he became the fastest-promoted and youngest product general manager of ZTE, which had more than 20,000 employees at the time
At that time, ZTE was known as the "Whampoa Military Academy" in the domestic mobile phone industry, and trained many professionals for the development of the industry, many of whom embarked on the road of entrepreneurship. After some training at ZTE, Du Junhong also came up with the idea of starting a business.
In 2002, Du Junhong resigned from ZTE, led his partners, and came to Xinzhuang Town, Shanghai, where he started his entrepreneurial journey in a 200-square-meter office and founded a mobile phone design company, Shanghai Longqi Technology Company.
At this time, in order to pursue higher efficiency, mobile phone manufacturers began to choose mobile phone design outsourcing to give entrants a broad market. Du Junhong's entrepreneurial team has gathered talents in technology, operation, marketing, management and other aspects from the beginning, and the sound organizational structure has also laid a solid foundation for future development.
In the initial stage of only 4 people and 200 square meters of office space, the company set the ambitious goal of going public in 5 years。To 10 people half a year later, and then to 40 people a year and a half later, everyone wears multiple hats, and then each department is slowly implementing its own standardization, and improving the structure of each department in the process of progressing.
Thanks to the excellent technical team and good enterprise development planning, Longcheer Technology soon broke out of the world in the domestic mobile phone market.
The speed at which the company is growing.
It can be described as "riding a rocket".
In 2004, Du Junhong reorganized Shanghai Longqi Technology Co., Ltd. to form Longcheer Holdings, and at the same time introduced internationally renowned venture capital and ** as a strategic investor.
According to the company's information, Longcheer Technology has completed multiple rounds of financing, and investors includeXiaomi Group, Shunwei Capital, IDG Capital, Shenzhen Venture Capital, China Merchants Capital, Moore**, Sany Groupand other well-known enterprises and investment institutions.
With a professional team in charge and external investment, Longcheer Technology quickly entered the fast lane of development.
In 2004, Longcheer Technology achieved sales revenue of 42.2 billion yuan, an increase of 500% compared with fiscal year 2003. In 2005 and 2006, the company was selected as one of Deloitte's "China's Top 50 Technology and Fast Growth Companies" and "Asia Pacific Technology and Fast 500 Enterprises" for two consecutive years.
In 2005, Longcheer Technology ushered in a highlight moment and was listed in Singapore. Successfully listed in less than three years since its establishment, the development speed of Longcheer Technology can be described as "sitting on a rocket". At that time, Du Junhong, who was only 32 years old, already owned a listed company.
Now, after nearly 20 years of business layout and continuous development, Longcheer Technology's "circle of friends" continues to expandCustomers include Xiaomi, Samsung Electronics, Lenovo, Honor, OPPO, vivo, China Post Communications, China Unicom, China Mobile and other leading enterprises in the communications industry. Among them, Xiaomi and its affiliates are firmly the largest customers of Longcheer Technology。In addition, Xiaomi holds 913% and 818% of the shares, a total of 1731%, the second largest shareholder of the company.
One of the world's top three ODM manufacturers.
The listing will raise 1.8 billion
According to Counterpoint's latest global smartphone ODM tracking report, Longcheer Technology's market share in the first half of 2022 was 25%, surpassing Wingtech Technology and second only to Huaqin Technology. Since then,The outside world refers to Longcheer Technology, Huaqin Technology and Wingtech Technology as "the world's three major ODM manufacturers".
Longcheer Technology and Qualcomm reached a strategic cooperation.
According to the prospectus, the operating income of Longcheer Technology from 2020 to 2022 will be 1642.1 billion yuan, 2459.6 billion yuan, 2934.3 billion yuan, with revenue of 108 in the first half of 20230 billion yuan; The net profit from 2020 to 2022 is 29.9 billion yuan, 54.8 billion yuan, 56.1 billion yuan, with a net profit of 33.4 billion yuan.
As early as December 2015 and December 2017, Longcheer Technology submitted a prospectus twice to be listed on the GEM, but the IPO application was rejected by the Issuance Examination Committee of the Securities Regulatory Commission. In February 2023, Longcheer Technology will once again restart its listing on the main board of the Shanghai Stock Exchange, and the amount of funds raised will also increase from the previous 42.7 billion yuan expanded to 1.8 billion yuan, an increase of more than 300%.
51-year-old Du Junhong will usher in the second opportunity in his life to ring the listing bell. And the Xiaomi system, which "contributes money and effort" to Longcheer Technology, will also share the feast of wealth.