On March 1, 2024, Shanghai Longcheer Technology Co., Ltd. (603341:SH) was officially listed on the main board of the Shanghai Stock Exchange.
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. Several investors have expressed their views on Longcheer Technology's listing, as excerpted below:
Shunwei's founding partner and CEO, Xu Da, stated, "Since leading the A-round financing for Longcheer Technology in 2015, we have always believed in the unique value and potential of Longcheer Technology in the electronic information industry. Over the past nine years, we have not only witnessed the rapid development of Longcheer Technology but also the high-quality growth of China's electronic information industry."
Lin Ling, a partner at Costone Capital, remarked, "The listing of Longcheer Technology signifies the convergence of China's major three intelligent product ODM companies in the capital market. Longcheer has already completed product definition in collaboration with brand manufacturers. We believe and look forward to Longcheer Technology becoming a leading global intelligent product ODM service provider in the future!"
Dr. Huang Kai, co-founder of FutureX Technology Investments, stated, "As global consumer electronics ODM business continues to concentrate towards leading enterprises, China's leading ODM companies are experiencing simultaneous increases in revenue and gross profit margins. With strong comprehensive product design and supply chain integration capabilities, Longcheer has been deeply involved in the selection and development of domestic semiconductor components, promoting and accelerating the localization and substitution of domestic supply chains, leading to continuous improvement in gross profit margins. With the establishment of overseas manufacturing centers in India, Vietnam, and other locations in recent years, Longcheer has initially formed global delivery capabilities, enabling the company to serve global brand customers and better withstand economic cyclicality."
In recent years, China has continuously strengthened its support for the electronic information industry, introducing a series of policies aimed at encouraging technological innovation, enhancing the independent controllability of the industry chain, and promoting high-quality development. Particularly, against the backdrop of the strategic emphasis on stabilizing, reinforcing, and enhancing industrial chains, Longcheer Technology's successful listing is not only an important milestone for the company's own development but also a direct result of the country's policy support in technological innovation and industrial upgrading.
At the time of reporting, Longcheer Technology's stock was priced at CNY 51.92 per share, with a total market value of CNY 24.148 billion.