Core 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].

Core Viewpoint - The company, Flashback Technology Limited, is attempting to go public for the third time in Hong Kong, hoping to capitalize on the current hot IPO market after two previous failed attempts [3]. Group 1: Business Overview - Flashback primarily engages in the recycling of second-hand consumer electronics, focusing mainly on mobile phones. The company operates a "Flashback Recycling" system through partner retail stores and online platforms for trade-ins [3]. - Recycled products are tested, graded, repaired, and priced before being sold on the "Flashback Premium" platform or various third-party e-commerce platforms [3]. Group 2: Financial Performance - The company has seen a steady increase in revenue over the past four years, rising from 750 million yuan in 2021 to 1.297 billion yuan last year, with revenue reaching 809 million yuan in the first half of this year, a 40% year-on-year increase [6]. - Despite revenue growth, the company has consistently reported losses, with losses of 48.7 million yuan, 99.08 million yuan, 98.27 million yuan, and 65.87 million yuan over the past four years. In the first half of this year, the loss narrowed to 24.81 million yuan [6]. Group 3: Profitability Challenges - The low gross margin is a significant reason for the ongoing losses, with the gross margin from product sales never exceeding 8% over the past four years. It peaked at 7.5% in 2021 but fell to 4.4% last year, recovering to 6% in the first half of this year, which remains low [7]. - The company ranks third in the mobile phone recycling market in China, with a market share of only 1.3%, significantly trailing behind the top two competitors, which hold market shares of 7.9% and 7.4% respectively [7]. Group 4: Debt and Cash Flow Issues - The company's net debt has increased from 235 million yuan in 2021 to 688 million yuan last year, reaching 713 million yuan in the first half of this year, marking a 200% increase in just four and a half years [8]. - Operating cash flow has been disappointing, with negative cash flows recorded in previous years, although a positive cash flow of 43.7 million yuan was reported in the first half of this year [8].