Investment Rating - Industry rating: Recommended [5] Core Insights - The electronic price tag industry has significant growth potential, with HanShuo Technology being the leading player in China. The company has developed a comprehensive business system centered around electronic price tag systems and SaaS cloud platform services, continuously innovating its product offerings [1][9] - The penetration rate of electronic price tags is expected to continue rising, with the current global penetration at approximately 15%. In China, the penetration rate is only 15% as of 2023, but it is projected to reach 40% in the next five years. The global electronic price tag market size has grown from 2.8 billion to 16.9 billion from 2017 to 2023, with a CAGR of 34.9%, and is expected to reach 34.9 billion by 2028 [2][14][15] Summary by Sections Section 1: Electronic Price Tag Industry Overview - HanShuo Technology is the top electronic price tag manufacturer in China and ranks among the top three globally. The company has established international operations since 2014 and has formed strategic partnerships with major retailers [1][9][10] - The company reported a revenue of 4.49 billion in 2024, an increase of 18.8% year-on-year, with electronic price tag terminal revenue at 4.113 billion, up 16.9% year-on-year [10] Section 2: Market Dynamics - The electronic price tag market is characterized by a high concentration of leading service providers, with HanShuo Technology holding a 62% market share in China and a 28% share globally. The competitive landscape is expected to continue favoring top-tier service providers as retailers increasingly invest in digital solutions [2][15] Section 3: Company Performance - HanShuo Technology's revenue has grown from 1.19 billion in 2020 to 4.49 billion in 2024, with a CAGR of 39.3%. The net profit attributable to the parent company increased from 0.82 billion to 0.71 billion during the same period, with a CAGR of 71.3% [10][11]

Core Viewpoint - HanShuo Technology is transforming the retail industry in China through its innovative electronic price tag solutions, which enhance operational efficiency and customer experience in supermarkets [2][5][21]. Company Overview - HanShuo Technology, founded in 2012, specializes in providing digital solutions centered around electronic price tags, integrating hardware and SaaS cloud platforms [2][3]. - The company has grown to become the leading electronic price tag provider in China and the third globally, serving over 400 clients across more than 50 countries [3][20]. Business Model and Growth - The electronic price tags replace traditional paper tags, allowing for real-time updates and online payment options, significantly reducing labor and material costs for retailers [5][9]. - HanShuo's electronic price tag system can update information for 3 million tags in 80 minutes, saving supermarkets substantial operational costs [9]. - The company has established partnerships with major retailers like Yonghui and Auchan, contributing to its rapid revenue growth [15][16]. Financial Performance - HanShuo's revenue has shown strong growth, with figures of 16.13 billion RMB in 2021, 28.62 billion RMB in 2022, and 37.75 billion RMB in 2023, alongside a net profit of 6.78 billion RMB in 2023 [15]. - The company’s gross profit margin has consistently exceeded industry averages, with a margin of 37.25% in the first half of 2024 [15][16]. Market Position - HanShuo holds a 62% market share in China's electronic price tag market and approximately 28% globally, ranking among the top three in revenue within the industry [20]. - The company has a strong international presence, with significant revenue derived from overseas markets, accounting for over 90% of its income in recent years [15][16]. Research and Development - HanShuo has invested heavily in R&D, with a cumulative investment of 5.12 billion RMB from 2021 to 2024, representing 4.94% of its total revenue during that period [20]. - The introduction of the Nebular series has driven substantial sales growth, with a compound annual growth rate of 487.21% from 2020 to 2023 [18][20]. Future Plans - The company plans to raise 11.8 billion RMB through its IPO, with funds allocated for digital solution industrialization, AIoT R&D, and working capital [21].