Recently, Huaqin Technology Co., LTD. (hereinafter referred to as Huaqin Technology Co., LTD.), the leading ODM of smart hardware, was accepted to be transferred to the main board of Shanghai Stock Exchange. The amount of funds raised by Huaqin Technology Co., Ltd. decreased by 2 billion compared with that when it entered the science and Technology innovation board.
According to Counterpoint, the top three vendors by market share accounted for a combined 70% of the market in 2021, measured by volume of shipments. In 2021, the company ranked first in the market by shipments, Longqi Technology ranked second, and Wentai Technology ranked third.
Although the market share is not small, the road to listing of mobile phone ODM manufacturers is generally difficult. At present, only Wentai Technology has successfully achieved backdoor listing, while Longqi Technology, which has a revenue of 10 billion, failed in its two ipos.
It is understood that Huaqin Technology was accepted by the Science and Technology Innovation Board of Shanghai Stock Exchange in June 2021, and went through three rounds of regulatory inquiries in September, November and December 2021. In March of this year, the financial data was updated. On April 29 of this year, Huaqin Technology voluntarily submitted an application for withdrawing the initial offering of Huaqin Technology and listing on the science and Technology Innovation Board, and the board was closed.
Now the main board, whether the success is also in doubt.
According to the prospectus, the company currently has an experienced R&D team of more than 10,000 people and invested more than 7.5 billion yuan in R&D during the reporting period. However, there is some "water" in the accounting of the company's R&D expenses. For example, in the accounting of R&D expenses, Huaqin Technology includes the technical service fee, transportation expense, office communication expense, business entertainment expense and rental property expense, is it reasonable?
In addition, the company's comprehensive gross margin of less than 10% during the reporting period (2019 to 2021) and the overall outsourcing of the production and manufacturing process of all orders of the project seem to be contrary to the technology-driven company.
It is worth noting that in 2021, the company's net profit failed to maintain growth, behind the lack of bargaining power for the upstream and downstream of the industry chain. From 2018 to 2021, the operating revenue of Huaqin Technology was 35.300 billion yuan, 59.866 billion yuan and 83.759 billion yuan respectively; Net profit was 503 million yuan, 2.191 billion yuan and 1.875 billion yuan, respectively. In 2021, the company's net profit failed to maintain growth.
In this regard, the company said that since 2021, due to the strained upstream supply and demand, COVID-19 epidemic and other factors, the price of some upstream raw materials in the consumer electronics industry, chip and other parts of the raw material supply tension or even shortage of the situation.
During the report period, some of the top five customers of Huaqin Technology, including Samsung, Lenovo and Asus, were also suppliers of Huaqin technology.
