XIAOMI(HK:01810) Sou Hu Cai Jing·2025-09-23 09:14Core Viewpoint - Flashback Technology is making a third attempt to list on the Hong Kong Stock Exchange, facing a deadline of December 31, 2025, to avoid a significant share redemption pressure of nearly 800 million yuan [2][16]. Company Overview - Flashback Technology focuses on the recycling of second-hand mobile phones, providing integrated solutions that facilitate trade-ins and promote the sale of new devices [3][4]. - The company has established two core brands: "Flashback Recycling" for consumer trade-ins and "Flashback Quality" for reselling second-hand products through its online platform and third-party e-commerce sites [4]. Market Position - According to Frost & Sullivan, Flashback Technology ranks as the third-largest mobile phone recycling service provider in China, holding a market share of 1.3% in both total transaction value of recycled phones and sold second-hand phones [6][7]. - The top five market players account for 18.6% of the Chinese mobile phone recycling market, with the leading provider, Aihuishou, holding a market share of 7.9%, which is approximately six times that of Flashback Technology [6]. Financial Performance - Flashback Technology has shown revenue growth from 750 million yuan in 2021 to approximately 1.297 billion yuan in 2024, with a compound annual growth rate of about 20% [9]. - Despite revenue growth, the company has incurred significant losses, totaling over 337 million yuan over four and a half years, with losses reported for each year from 2021 to the first half of 2025 [9][10]. - The gross profit margin has declined from 8.2% in 2021 to 6.3% in the first half of 2025, with a notable drop to 4.8% in 2024 [9][10]. Cost Structure - The sales costs have remained high, with approximately 91.3% of the costs in the first half of 2025 attributed to the procurement of second-hand electronic products [11]. - Flashback Technology's reliance on Xiaomi as a major supplier poses both opportunities and risks, as Xiaomi accounted for 49.3% of the company's procurement through trade-in channels in the first half of 2025 [11][13]. Redemption Obligations - The company's redemption liabilities have increased from 307 million yuan in 2021 to 791 million yuan by the first half of 2025, while cash and cash equivalents stood at only 120 million yuan as of June 2025 [13][14].