Sou Hu Cai Jing·2025-08-08 04:24Core Viewpoint - The company, Shangmi Technology, is aiming for an IPO on the Hong Kong Stock Exchange after previously withdrawing its application for the A-share market. The company has faced challenges such as revenue fluctuations and customer attrition, which are magnified in the competitive landscape of the commercial IoT sector [1][4]. Group 1: Company Background and Development - Shangmi Technology was founded in 2013, evolving from a POS machine manufacturer to a leading provider of commercial IoT solutions, capitalizing on the growth of the food delivery market [2][4]. - The company launched its first smart POS machine in 2016, achieving over $100 million in global revenue within three years [2]. - By 2024, Shangmi is projected to hold over 10% of the global market share in the Android-based BIoT solutions sector, serving approximately 61,000 commercial partners worldwide [4]. Group 2: Financial Performance - Shangmi's revenue decreased from 34.04 billion RMB in 2022 to 30.71 billion RMB in 2023, with a slight recovery expected to 34.56 billion RMB in 2024, indicating a net revenue growth of only 52 million RMB over three years [9][10]. - The net profit for 2022, 2023, and 2024 was reported at 1.60 billion RMB, 1.01 billion RMB, and 1.81 billion RMB, respectively, with gross profit margins fluctuating between 26.7% and 28.9% [9][10]. - The decline in revenue is primarily attributed to a drop in sales from smart device sales, which accounted for 98% of total revenue [10]. Group 3: Market Position and Competition - The competitive landscape includes major players like Xiaomi, Ant Group, and Meituan, all of whom have invested in Shangmi Technology [5][6]. - The company has experienced a reduction in its customer base, dropping from 2,506 in 2022 to 2,262 in 2024, highlighting the challenges of maintaining client relationships in a competitive market [13]. - Shangmi's reliance on a few major clients is evident, with the top five clients contributing 42.3%, 28.8%, and 41.1% of revenue over the reporting period [13]. Group 4: Future Plans and Funding - The company plans to use the funds raised from the IPO for R&D in BIoT hardware and software solutions, enhancing supply chain operations, and global market expansion [8].