Core Viewpoint - Longqi Technology, a leading ODM manufacturer in smart hardware, has submitted its listing application to the Hong Kong Stock Exchange after just over a year on the Shanghai Stock Exchange, aiming to leverage its strong market position and diverse product offerings in the consumer electronics sector [1][2]. Group 1: Business Model and Market Position - Longqi Technology provides comprehensive ODM services, integrating hardware design, software development, testing, and supply chain management, with a diverse product range including smartphones, AI PCs, automotive electronics, tablets, smartwatches, and smart glasses [1]. - The company is the second-largest consumer electronics ODM globally and ranks first in smartphone ODM shipments as of 2024 [1]. - Major clients include leading brands such as Xiaomi, Samsung, Lenovo, Honor, OPPO, and vivo [1]. Group 2: Financial Performance - Revenue figures for Longqi Technology from 2022 to 2024 are as follows: 29.343 billion RMB, 27.185 billion RMB, and 46.382 billion RMB, while net profits were 562 million RMB, 603 million RMB, and 493 million RMB respectively [1][4]. - The company's gross profit increased over the same period, but the gross margin showed a decline, with figures of 8.1%, 9.5%, and 5.8% for the respective years [4][5]. - In Q1 2025, the company reported a revenue of 9.378 billion RMB, a year-on-year decrease of 9.27%, but net profit increased by 20.33% to 154 million RMB, indicating a recovery in profitability [4]. Group 3: Strategic Growth Initiatives - Longqi Technology has adopted a "1+2+X" strategy to align with new market demands and technological innovations, focusing on smartphones as the core, with personal computing and automotive electronics as key growth areas, and expanding into emerging consumer electronics [2]. - The AIoT and other product segments have shown continuous revenue growth, with figures of 1.887 billion RMB, 2.511 billion RMB, and 5.573 billion RMB from 2022 to 2024, increasing their revenue share from 6.5% to 12% [3][4]. Group 4: Industry Trends and Future Outlook - The rise of AI technology is expected to create significant growth opportunities for Longqi Technology, particularly in the smartphone and PC markets, where AI penetration rates are projected to reach 18% and 32% respectively in 2024 [6]. - Longqi Technology has been proactive in developing AIoT products, launching over 10 million smartwatches in 2023 and achieving significant sales in smart glasses and VR products since 2015 [6][7]. - The company is well-positioned to benefit from the anticipated growth in AI hardware products, which could enhance its performance and appeal to growth-oriented investors in the Hong Kong capital market [8].

Core Viewpoint - Longqi Technology Co., Ltd. has submitted its prospectus for a listing on the Hong Kong Stock Exchange, marking its transition to an "A+H" listed company after its initial public offering on the Shanghai Stock Exchange in March 2024 [1][3]. Company Overview - Longqi Technology was established in October 2004 and has a registered capital of approximately 465 million yuan. Major shareholders include Kunshan Longqi Investment Management Center and Chengmai Qihe Enterprise Management Partnership [3][4]. - The company is a leading provider of intelligent products and services, offering comprehensive solutions for smart product brands and technology companies, including product research, design, manufacturing, and support [4]. Market Position - According to Frost & Sullivan, Longqi Technology is the second-largest consumer electronics ODM manufacturer globally and the largest ODM manufacturer for smartphones in 2024 [4]. Financial Performance - Longqi Technology's revenue for 2022, 2023, and 2024 was approximately 29.34 billion yuan, 27.19 billion yuan, and 46.38 billion yuan, respectively. Gross profit for the same years was about 2.37 billion yuan, 2.59 billion yuan, and 2.71 billion yuan [5][6]. - The company's net profit for 2022, 2023, and 2024 was approximately 562 million yuan, 603 million yuan, and 493 million yuan, respectively, indicating a decline in net profit despite revenue growth in 2024 [5][6]. Revenue Breakdown - In 2023, Longqi Technology's revenue from smartphone sales was approximately 21.82 billion yuan, a decrease of 10.1% from 2022. However, revenue from AIoT and other products grew by 33.0% to about 2.51 billion yuan [8][9]. - In 2024, the company's revenue from smartphone sales increased by 65.6% to approximately 36.13 billion yuan, while revenue from AIoT and other products also saw significant growth [10][11]. Profitability Analysis - Despite increased sales and revenue in 2024, Longqi Technology's gross margin decreased from 9.5% in 2023 to 5.8% in 2024, attributed to rising average procurement prices of raw materials [11][12]. - The gross margin for smartphone sales dropped from 8.3% in 2023 to 4.7% in 2024, while the gross margin for AIoT and other products fell from 20.7% to 11.0% [12].