Core Viewpoint - Flashback Technology Limited has submitted its listing application to the Hong Kong Stock Exchange, marking its third attempt since 2024 to go public in the Hong Kong market [1] Company Overview - Flashback Technology focuses on after-market trading services for consumer electronics, particularly in the mobile phone recycling sector, aiming to extend the lifespan of electronic products and create a win-win situation for consumers, upstream procurement partners, and downstream second-hand mobile phone sellers [1][3] - The company operates under its own brand "Flashback Recycling" for offline trade-in services and "Flashback Quality" for selling second-hand consumer electronics on its own and third-party e-commerce platforms [3] Market Position - In 2024, Flashback Technology ranked third among mobile phone recycling service providers in China, with a transaction volume of 1 billion yuan, significantly trailing behind competitors like Aihuishou and Zhuanzhuan, which had transaction volumes of 6.2 billion yuan and 5.8 billion yuan, respectively [3] - The market shares of Aihuishou and Zhuanzhuan were 7.9% and 7.4%, while Flashback's market share was only 1.3% [3] Financial Performance - The company reported cumulative losses of approximately 337 million yuan and has yet to achieve profitability [5] - The gross profit margin has declined from 8.2% in 2021 to 4.8% in 2024, although there was a slight recovery in the first half of 2025, remaining below the industry average [5] - High sales costs, particularly from second-hand mobile phone procurement, have been identified as a major factor contributing to the declining gross profit margin [5] Strategic Partnerships - Flashback Technology has a close partnership with Xiaomi Group, which is both a significant supplier and a shareholder of the company [5] - A substantial portion of the procurement value comes from second-hand consumer electronics purchased from Xiaomi through trade-in programs [5] Challenges and Risks - The company has signed multiple performance guarantee agreements with external investors, which have triggered redemption conditions due to previous unsuccessful IPO attempts, leading to a surge in current liabilities [7] - The expected completion date for the IPO has been extended to December 31, 2025, but the company faces increasing pressure to succeed in this attempt to avoid severe liquidity and asset health issues [7]

Core Viewpoint - Shenzhen Flashback Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange for the third time, focusing on the second-hand mobile phone recycling market, where it ranks as the third largest player in China with a market share of approximately 1.3% [2][10]. Company Overview - Flashback Technology operates a closed-loop platform model involving upstream brand partners, its own recycling and refurbishment processes, and downstream wholesale sales [2]. - The company's primary revenue comes from the price difference of second-hand devices, with a heavy reliance on mobile phone categories [2]. Financial Performance - Despite being in a rapidly growing market, Flashback Technology has struggled with profitability, showing continuous net losses from 2021 to 2025, with cumulative losses exceeding 300 million yuan [8][9]. - Revenue increased from 750 million yuan in 2021 to 1.297 billion yuan in 2024, but the gross profit margin remained low at 4.8% in 2024, significantly below industry averages [8][10]. - Sales costs rose from 688 million yuan in 2021 to 1.235 billion yuan in 2024, accounting for over 90% of revenue, primarily due to the high costs of procuring second-hand electronic products [8][9]. Market Position and Competition - The second-hand mobile phone recycling market in China is projected to grow from 192.9 billion yuan in 2024 to 360 billion yuan by 2028, with a compound annual growth rate exceeding 16% [10]. - Flashback Technology's market share is limited, with the top two companies holding only 15.3% of the market, and its transaction volume is less than one-sixth of the leading competitor [10]. - Competitors are building barriers to entry, with established players diversifying their services, while Flashback Technology's business model remains overly dependent on B2B partnerships and the Xiaomi ecosystem [10][11]. Strategic Challenges - The company plans to use the funds from its listing to strengthen its supply chain, upgrade its AI quality inspection platform, and repay some debts, but there are concerns that this may be more of a "lifeline" than a genuine strategic upgrade [11]. - The sustainability of its profit model is questioned, as it relies heavily on the price difference of second-hand mobile phones, with limited long-term profitability prospects [11]. - Brand reputation and trust risks are significant, as issues related to data privacy and after-sales service could severely impact the company's image [11].

Core Viewpoint - Flashback Technology is attempting its third IPO on the Hong Kong Stock Exchange despite consecutive years of losses, with a cumulative loss of 337 million RMB over four and a half years [1][2]. Financial Performance - Flashback Technology's revenue from 2021 to 2025 is projected to grow from 750 million RMB to 1.3 billion RMB, but the company has not achieved profitability, with losses ranging from 24.6 million RMB to 99.1 million RMB during the same period [3][4]. - The company's gross margin has decreased significantly from 8.2% in 2021 to 4.8% in 2024, although it slightly improved to 6.3% in the first half of 2025 [5][6]. Market Position - Flashback Technology is the third-largest mobile phone recycling service provider in China, holding a market share of approximately 1.3%, which is significantly lower than its competitors, Aihuishou and Zhuanzhuan, with market shares of 9.1% and 8.4% respectively [3][4]. Business Model and Challenges - The company's business model relies heavily on partnerships with upstream suppliers for low-cost procurement of used phones, which poses risks if relationships deteriorate [8]. - Flashback Technology faces high sales costs, which have nearly doubled from 688 million RMB in 2021 to 1.235 billion RMB in 2024, leading to a situation where sales costs are almost equal to revenue [5][6]. Cash Flow and Liabilities - The company has reported negative cash flow from operating activities for four consecutive years, with net cash outflows ranging from 6.4 million RMB to 47.8 million RMB [13]. - Flashback Technology's current liabilities have increased significantly, reaching 722 million RMB, primarily due to obligations arising from special agreements with investors [12][13]. Future Plans - The proceeds from the IPO are intended to enhance the company's technology and research capabilities, strengthen strategic partnerships with suppliers, and expand marketing efforts to increase sales and profit margins [14].

Core Viewpoint - Flashback Technology is attempting its third IPO on the Hong Kong Stock Exchange despite consecutive years of losses, with a cumulative loss of 337 million RMB over four and a half years [1][3]. Company Overview - Flashback Technology, established in 2016, focuses on the recycling of consumer electronics, particularly in the second-hand mobile phone market, operating under two main brands: "Flashback Recycling" for offline services and "Flashback Youpin" for online sales [2]. - The company is the third-largest mobile phone recycling service provider in China, holding approximately 1.3% market share in both the total transaction volume of recycled phones and sold second-hand phones [3]. Financial Performance - Revenue figures from 2021 to 2025 show a growth trend: 750 million RMB in 2021, 919 million RMB in 2022, 1.16 billion RMB in 2023, and projected 1.3 billion RMB in 2024, with 809 million RMB for the first half of 2025 [3][4]. - Despite revenue growth, the company has not achieved profitability, with losses of 48.7 million RMB in 2021, 99.1 million RMB in 2022, 98.3 million RMB in 2023, 66.4 million RMB in 2024, and 24.6 million RMB in the first half of 2025, totaling 337 million RMB in losses [3][4]. Cost Structure - The sales costs have significantly increased from 688 million RMB in 2021 to 1.24 billion RMB in 2024, nearly doubling, with a 37.74% year-on-year increase in the first half of 2025 [5]. - The gross margin has decreased from 8.2% in 2021 to 4.8% in 2024, although it slightly improved to 6.3% in the first half of 2025 [5]. Market Position and Competition - Flashback Technology's market share is significantly lower than its competitors, with the leading companies, Aihuishou and Zhuanzhuan, holding 9.1% and 8.4% market shares respectively [3]. - The company faces challenges in pricing and inventory, as it cannot fully pass on procurement cost pressures to customers, leading to lower sales prices compared to competitors [8][10]. Operational Challenges - The business model heavily relies on partnerships with upstream suppliers, which poses risks if relationships deteriorate [7]. - The company has experienced negative cash flow from operating activities for four consecutive years, with net cash outflows of 6.4 million RMB in 2021, 43.7 million RMB in 2022, 47.8 million RMB in 2023, and 18.4 million RMB in 2024 [10]. Debt and Financing - As of mid-2024, Flashback Technology's current liabilities reached 722 million RMB, with total liabilities of 713 million RMB, primarily due to obligations arising from special agreements with investors [10]. - The company has completed multiple rounds of equity financing, attracting investments from various firms, including Xiaomi Group and Shunwei Capital [11]. Future Plans - The proceeds from the IPO are intended to enhance technology and R&D capabilities, upgrade infrastructure, strengthen strategic partnerships, and increase marketing efforts to expand into higher-potential sales channels [11].