New stock news | Second-hand mobile phone recycling leader Flashback Technology filed IPO application with Hong Kong Stock Exchange, continuous losses await breakthrough.

According to the disclosure from the Hong Kong Stock Exchange on May 25, ShanHuiShou Technology Limited (referred to as "ShanHuiShou Technology") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with China Renaissance Capital as its exclusive sponsor. It is reported that the company had previously submitted applications to the Hong Kong Stock Exchange on February 26, 2024, September 17, 2024, and August 14, 2025, respectively. Company Profile ShanHuiShou Technology is a Chinese consumer electronics recycling service provider, focusing on efficient trade-in solutions for old to new products, with a primary business of second-hand mobile phones. Since its establishment in 2016, the company has spent several years developing and optimizing digital infrastructure to simplify trade-in transactions for used consumer electronics, promoting a circular economy through the large-scale reuse of second-hand consumer electronics products. With its proprietary BOSS system (including the ShanHuiShou recycling system and the ShanHuiYoupin online sales platform), the company is able to synchronize the transaction of trading in and reselling used consumer electronics products in minutes, ensuring high operational efficiency and inventory turnover. During the historical period, the company provided trade-in services for outdated products to more than 77,000 offline stores across 31 provinces in China. Its upstream procurement partners mainly include major participants in the Chinese consumer electronics industry, such as popular consumer electronics brands (such as Xiaomi, Samsung, Huawei, Honor, Vivo, and their authorized distributors), large retailers of consumer electronics, and major network operators like China Mobile Limited and their designated distributors. Financial Information Revenue In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 1.158 billion, 1.297 billion, and 1.771 billion respectively. Gross Profit Margin In the fiscal years 2023, 2024, and 2025, the company's gross profit margin was 6.8%, 4.8%, and 6.5% respectively. Annual Loss In the fiscal years 2023, 2024, and 2025, the company recorded annual losses of approximately RMB 98.268 million, 66.443 million, and 78.99 million respectively. ShanHuiShou Technology stated that the loss for the year ended December 31, 2023, was due to the increase in sales costs and expenses for selling, administrative, and research and development exceeding the growth in revenue during the period; and (ii) the loss for the year ended December 31, 2024, was due to slower sales growth than expected and a decrease in gross profit. Industry Overview The Chinese used consumer electronics trading market has rapidly developed over the past five years. From 2021 to 2025, the market size, based on the total transaction value (including transactions between consumers, consumers and merchants, and merchants), grew from RMB 369.8 billion to RMB 851.8 billion, with a compound annual growth rate of 23.2%. Among all categories, mobile phones accounted for the majority of the market share, approximately 72.3% in 2025. During the forecast period, with government support for the circular economy, consumer demand for handling or replacing outdated consumer electronics due to technological upgrades (such as the implementation and popularization of 5G networks), and the vigorous development of offline channels for the recycling of second-hand consumer electronics products, it is expected that the market will continue to grow, reaching approximately RMB 2,165.7 billion by 2030, with a compound annual growth rate of 21.0% during the forecast period. Consumer demand for handling outdated or idle consumer electronics products continues to increase, driving the thriving development of consumer electronics recycling activities. Regarding the trading volume of traded-in mobile phones, the Chinese market rapidly increased from approximately RMB 8.9 billion in 2021 to RMB 25.4 billion in 2025, with a compound annual growth rate of approximately 29.9%, and is expected to further increase to approximately RMB 85.1 billion by 2030. Used mobile phones are in high demand in the Chinese market, and this trend is expected to continue during the forecast period. Compared to sellers in the market, buyers of used mobile phones are generally abundant, with an average inventory turnover period of 10 to 15 days. As for the trading volume of idle recovery of mobile phones, the statistics increased from approximately RMB 33.9 billion in 2021 to approximately RMB 70.2 billion in 2025, and is expected to further increase to approximately RMB 159.4 billion by 2030. In terms of the competitive landscape of the Chinese mobile phone recycling market, the top five market participants held a 19.7% market share in the 2025 Chinese mobile phone recycling market based on the total transaction volume of mobile devices. In 2025, in terms of the total transaction volume of mobile devices, the company was the third largest mobile phone recycling service provider, with a transaction volume of RMB 1.5 billion, accounting for 1.6% of the market. In 2025, in terms of the amount of mobile phones recovered from consumers, the company was the third-largest mobile phone recycling service provider, accounting for 1.5% of the market. Board of Directors Information The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors. The board is responsible for managing and overseeing the business of the company. Ownership Structure ShanHuiShou BVI (fully owned by Mr. Liu) beneficially owns 80% equity interest in the voting shares issued by MGY Wisdom BVI. Under the Securities and Futures Ordinance, Mr. Liu is considered to have an interest in the shares held by ShanHuiShou BVI and MGY Wisdom BVI. Intermediary Team Exclusive Sponsor: China Renaissance Capital Limited Legal Advisors to the Company: Fangda Partners, Hankun Law Firm, Conyers Dill & Pearman Legal Advisors to the Exclusive Sponsor: Dechert LLP, DHH Law Firm, DeHeng Law Offices Auditors and Reporting Accountants: KPMG Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch Compliance Advisor: China Renaissance Capital Limited