Investment Rating - The report maintains a "Strong Buy" rating for the company [3] Core Insights - The company reported Q3 2025 revenue of 5.15 billion, a year-over-year increase of 27.1%, and a net profit of 0.09 billion, up 408% [1][7] - Non-GAAP operating profit reached 0.14 billion, reflecting a 34.9% increase, with a Non-GAAP net profit of 0.11 billion, up 22.2% [1][7] - The company is positioned as a leader in the circular economy, with expectations for continued market share growth [1][7] - The company anticipates Q4 2025 revenue between 6.08 billion and 6.18 billion, representing a growth of 25.4% to 27.4% [7] Financial Performance - The company's product revenue was 4.73 billion, increasing by 28.7%, while service revenue was 0.42 billion, up 11.6% [1][7] - The number of electronic products traded in Q3 was 10.9 million, a 19.8% increase, with a total of 2,195 stores by the end of Q3, an increase of 103 quarter-over-quarter and 558 year-over-year [7] - Gross margin improved to 20.5%, with a Non-GAAP net profit margin of 2.1% [7] Financial Projections - The company expects to achieve Non-GAAP net profits of 0.43 billion, 0.69 billion, and 0.99 billion for 2025, 2026, and 2027 respectively [7] - The projected P/E ratio for 2025 is 20 times the Non-GAAP net profit, leading to a target price of 5.40 USD [3][7] Market Position - The company is expanding its multi-category recycling and community high-frequency recycling initiatives, which are expected to enhance its ecological layout and growth potential [7] - The report highlights the increasing penetration rate of second-hand electronic recycling, positioning the company favorably within the industry [7]

Core Viewpoint - Flashback Technology, a Chinese company focused on second-hand mobile phone recycling services, is accelerating its IPO process in Hong Kong, showcasing rapid business growth while revealing some financial details and risk factors that warrant attention [1] Business Model - The company is the third-largest mobile phone recycling service provider in China, offering an integrated solution from trade-in to standardized resale through proprietary detection, grading, and pricing technology [2] - It collaborates closely with upstream procurement partners to source second-hand consumer electronics, which are then processed and sold through its online platform and third-party e-commerce sites [2] Supply Channels - The primary supply channels include upstream procurement partners, major retailers, and individual consumers, with trade-in being the main procurement method. The percentage of procurement through trade-in has shown slight fluctuations from 90.6% in 2021 to 83.7% in the first half of 2025 [3] Financial Performance - Revenue has shown significant growth, increasing from approximately RMB 750 million in 2021 to about RMB 1.297 billion in 2024, with a compound annual growth rate of around 20%. The revenue for the first half of 2024 was approximately RMB 577 million, rising to about RMB 810 million in the first half of 2025, reflecting a growth rate of approximately 40.3% [3] - The prospectus does not disclose net profit figures, making it difficult to assess the company's overall profitability and quality [4] - There is a lack of information regarding gross margin, raising concerns about cost control and product competitiveness [5] - Net profit margin data is also absent, complicating the evaluation of the company's actual profitability after accounting for all costs and taxes [6] Revenue Composition - The majority of revenue comes from the sale of second-hand consumer electronics, accounting for over 98%, with second-hand mobile phone sales being the largest segment. Other service revenues are minimal [7] Related Transactions - The prospectus does not mention related party transactions, but potential profit manipulation or benefit transfer through such transactions could pose risks to shareholders [8] Financial Challenges - The absence of profitability metrics hinders investor assessment of the company's financial health. Additionally, the lack of gross margin data makes it challenging to evaluate cost control across various operational stages [9] Industry Comparison - Flashback Technology holds a market share of approximately 1.3% in the second-hand mobile phone recycling market, ranking third in China. However, it may face challenges in brand influence, market share expansion, and cost control compared to leading competitors [10] Customer and Supplier Concentration - The prospectus lacks detailed information on major customers and customer concentration, raising concerns about potential revenue impacts from customer dependency [11] - Similarly, there is insufficient information on major suppliers and supplier concentration, which could affect operational stability if supply issues arise [12] Shareholding and Management - The prospectus does not provide details on the controlling shareholders or major stakeholders, which could impact company decision-making and stability [13] - Information regarding the core management team's experience, compensation, and incentive mechanisms is also lacking, which is crucial for assessing governance and management effectiveness [14] Risk Factors - The second-hand consumer electronics recycling market is highly competitive, with numerous players potentially engaging in price wars and service expansion, which could affect market share and profitability [15] - Regulatory changes related to environmental and electronic waste management could increase compliance costs and impact operations if the company fails to adapt [16] - Rapid technological advancements in consumer electronics necessitate continuous updates in detection and pricing technologies to maintain customer satisfaction [18]

中国最大的专注于线下以旧换新的手机回收服务提供商。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，中国证监会国际合作司于10月8日披露了关于ShanH Technology Limited（闪 回科技有限公司，以下简称"闪回科技"）赴港上市备案通知书。 成立于2016年的闪回科技基于自己的专有检测、分级与定价技术以及回收与销售平台，以及与上游 资源合作伙伴的战略合作，致力于提供一体化的综合解决方案，从以旧换新的方式启动回收并促成新 机的销售，对采购的二手手机进行标准化转售。 根据弗若斯特沙利文的资料，以2023年自消费者端回收交易总额 计算 ，闪回科技是中国最大的专 注于线下以旧换新的手机回收服务提供商，亦是中国第三大手机回收服务商，市场份额分别约为 7.4% 及 1.4%。 2023年年底，闪回科技将合作和回收交易服务延伸至香港——2023年10月，闪回科技取得香港无 线电商牌照。此外，在2023年9月和12月，闪回科技以闪回有品品牌在深圳开设了第一家和第二家 线下零售店，开展二手消费电子产品的回收和销售服务。 财务数据方面。 2 021 年至2 ...