Hanshow (汉朔科技) has recently officially submitted a prospectus, intending to list on the ChiNext Board of the Shenzhen Stock Exchange, with CICC (中金公司) as the sponsor.
Founded in 2012, Hanshow is one of the world's leading providers of smart IoT hardware and industrial digital solutions. Relying on digital technology and rich customer service experience, Hanshow has formed a comprehensive business line with electronic shelf label solutions as the core, integrating the development of smart marketing and AI solutions. And it also has an efficient supply chain system and integrated delivery capabilities, through a comprehensive solution consisting of IoT smart terminals and a self-developed system platform. It empowers customers in various industries, improves the efficiency of operation management, and assists customers in digital upgrading, thereby gaining a competitive advantage.
According to Frost & Sullivan's data, from 2016 to 2021, the global electronic shelf label market will grow from CNY 1.4 billion to CNY 7.7 billion, with a compound growth rate of 40.6%. At the same time, according to Meticulous Research, the global electronic shelf label market will grow at a compound growth rate of 27.4%, and it is expected to reach about USD 6 billion by 2028.
The revenue of Hanshow has achieved continuous growth from 2020 to 2022, reaching CNY 1.190 billion, CNY 1.617 billion, and CNY 2.858 billion respectively. The net profits were CNY 82 million, - CNY 6 million, and CNY 207 million respectively. During the reporting period, its Nebular gradually became an important part of its main business income, accounting for 0.95%, 23.08%, and 54.35% respectively. According to E-paper Industry Alliance, in 2021, Hanshow's share in the domestic electronic shelf label market will be about 67%.
What's more, the prospectus disclosure shows that Hanshow's electronic shelf label revenue in 2021 and 2022 ranks second among global listed company competitors. Electronic shelf label has attracted a lot of companies to enter the market. Representative companies in China include BOE (京东方), Jofee (小飞科技), ZKONG (智控网络), and YalaTech (雅量智能); internationally, Samsung in South Korea, Pricer in Sweden, Displaydata in the UK, and SES in France are quite powerful.
According to the official website of Hanshow, the company's business covers many countries and regions. It has established subsidiaries in the United States, France, and Germany, and established a European center in Amsterdam in 2019. This sprint of IPO will help Hanshow to further expand overseas markets.
According to the disclosure in the prospectus, Hanshow recognizes that the deterioration of geopolitics and international trade frictions in the future may have an adverse impact on its product sales. The company's products are mainly settled in EUR and USD. If major settlement currencies continue to depreciate rapidly for a long period of time in the future, this may have a certain negative impact on the company's profitability.