Longcheer Technology has publicly filed for an IPO on the SSE

Longcheer Technology will commence its subscription on February 21, 2024, and is planning to list on the main board of the Shanghai Stock Exchange at a later date.The company's total issuance this time is 60 million shares, including an online issuance of 14.4 million shares, with a subscription price of CNY 26.00 per share, resulting in an issuance price-earnings ratio of 24.13 times.

According to the announcement, the funds raised from this public offering will be invested in projects including the smart hardware manufacturing project in Huizhou, the expansion and renovation project of the smart hardware manufacturing center in Nanchang, the upgrade and construction project of the R&D center in Shanghai, as well as supplementary working capital. The company stated that upon completion, these projects will significantly enhance the company's smart product manufacturing and delivery capabilities, as well as its product development capabilities, strengthening its profitability and market competitiveness.

Established in 2004, Longcheer Technology belongs to the intelligent product ODM industry, having established a comprehensive layout covering smart products such as smartphones, tablets, and AIoT products. It has provided integrated smart product services to global leading consumer electronics brands and tech enterprises across multiple countries and regions.

Based on Counterpoint's data, Longcheer Technology's smartphone shipments reached 138 million units in 2022, accounting for 28% of the global smartphone ODM/IDH shipments, ranking first globally.

Notably, Longcheer Technology has been expanding into the AIoT field since 2015, encompassing smartwatches, VR/AR devices, and other products.

In the smartwatch sector, Longcheer Technology established its third business division in 2018, dedicated to smartwatch research and customer service. Since 2018, it has successively developed smartwatches for enterprises such as Xiaomi, including children's smartwatches, Redmi Watch, and Xiaomi Watch S1.

In the VR/AR field, Longcheer Technology began its VR product layout as early as 2015 and delivered its first VR product to iQIYI in 2017. In the same year, it established a partnership with another enterprise to provide VR product ODM services, successfully entering the global leading VR device brands, with a cumulative shipment of over 1 million units.

In 2019, Longcheer Technology collaborated with Luxottica to develop smart eyewear, exploring the product route of "smart eyewear + fashion brand." The smart eyewear products from this collaboration have achieved cumulative shipments of over 700,000 units.

In summary, Longcheer Technology has proactively entered product categories with higher development potential and higher value.

In terms of financial data, from 2020 to 2022, Longcheer Technology's revenues were CNY 16.421 billion, CNY 24.596 billion, and CNY 29.342 billion, respectively. During the same period, the company's net profits were CNY 299 million, CNY 548 million, and CNY 561 million, respectively. In the first half of 2023, Longcheer Technology's revenue and net profit were CNY 10.8 billion and CNY 334 million, respectively.

Since its establishment, Longcheer Technology has received investments from well-known institutions such as Xiaomi, Shunwei Capital, China Mobile, Chaoyue Moore Capital, Yunfeng Capital, Costone Capital, and FutureX Capital.

Before the IPO, Xiaomi held 9.13% of Longcheer Technology's shares, making it the largest external investor.

Currently, the company has research and development centers in multiple locations such as Shanghai, Shenzhen, Huizhou, Nanchang, and Hefei, with a research and technology team exceeding 3,000 employees. It possesses development experience across various platforms including Qualcomm, MTK, and UNISOC, as well as capabilities in developing operating systems such as Android, RTOS, and Wear OS. The company has established smart product manufacturing centers in Huizhou and Nanchang, and has expanded its overseas manufacturing presence in Vietnam and India, forming preliminary global delivery capabilities.