Lockin Technology (Beijing) Co., Ltd. submitted its listing application to the Hong Kong Stock Exchange in mid-February, with China Galaxy International serving as the sole sponsor. In recent years, Lockin Tech's revenue has surpassed the RMB 10 billion mark. However, behind the seemingly impressive financial performance lies a corporate crisis. Not only is its net profit margin below 5%, but the company is also facing a liquidity crunch. Under multiple pressures, can Lockin Tech successfully open the door to the Hong Kong Stock Exchange?
ODM as a Pillar, Sub-5% Profit Margin Lockin Tech is a pioneer in global AI home security systems. Leveraging its integrated "hardware + software + AI" technological capabilities, the company provides comprehensive solutions centered on smart locks for home and community security, intelligent management, and home care. According to Frost & Sullivan data, in 2024, Lockin Tech ranked first globally in shipments of vein recognition smart locks, holding a 10.5% market share. Its overall smart lock shipments ranked fourth globally with a 2.6% share. In 2024, the company shipped 1.2 million units in mainland China, ranking third with a 5.8% market share. During the track record period, Lockin Tech's revenue primarily came from sales of its own-brand consumer products, ODM services for brand companies, and commercial solutions under the Cloud Ding brand for managed residential properties. From 2023 to the first nine months of 2025, revenue from ODM projects was RMB 514 million, RMB 579 million, and RMB 476 million, accounting for 50.6%, 53.4%, and 61.6% of total revenue, respectively, making it the highest revenue-contributing segment. Revenue from own-brand consumer products was RMB 319 million, RMB 301 million, and RMB 159 million, accounting for 31.5%, 27.7%, and 20.5%. Revenue from commercial solutions was RMB 165 million, RMB 181 million, and RMB 121 million, accounting for 16.3%, 16.7%, and 15.7%. In terms of sales volume, ODM unit shipments were 753,000, 914,000, and 1.081 million units, with average selling prices of RMB 682.5, RMB 634.3, and RMB 440.3 per unit, respectively, indicating a consistent decline. Sales volumes for both own-brand consumer products and commercial solutions decreased. The company's gross margin was 33.3%, 38.1%, and 31.8% during the period. Total revenue for the reporting period was RMB 1.015 billion, RMB 1.086 billion, and RMB 774 million, with net profits of RMB 14.026 million, RMB 53.113 million, and RMB 31.981 million, resulting in net profit margins of 1.4%, 4.9%, and 4.1%, highlighting thin profitability. The company's return on equity was 5.5%, 16.5%, and 9.0%, and its gearing ratio was 33.3%, 38.1%, and 31.8%. Overseas revenue remained minimal, accounting for only 3.8%, 4.9%, and 3.9% of the total.
Heavy Marketing, Light R&D, Operating Cash Flow Turns Negative The low profit margin is closely linked to the company's emphasis on marketing over R&D. Sales and marketing expenses were RMB 155 million, RMB 164 million, and RMB 101 million, accounting for 15.3%, 15.1%, and 13.1% of revenue. R&D expenses were RMB 74.123 million, RMB 77.992 million, and RMB 47.159 million, representing 7.3%, 7.2%, and 6.1%. General and administrative expenses were RMB 90.436 million, RMB 93.022 million, and RMB 68.801 million, accounting for 8.9%, 8.6%, and 8.9%. The sales expense ratio was significantly higher than the R&D expense ratio. Inventory was RMB 121 million, RMB 149 million, and RMB 202 million, with inventory days increasing from 58 to 89 days. Trade receivables and notes were RMB 196 million, RMB 296 million, and RMB 283 million, with collection days extending from 70 to 101 days, increasing bad debt risk. Net cash from operating activities was RMB 89.485 million, RMB 1.247 million, and negative RMB 38.307 million. Net current assets turned negative, recording negative RMB 537 million as of January 15, 2026, indicating a significant liquidity gap. Cash and cash equivalents declined to RMB 66.733 million.
60% Revenue Reliance on Xiaomi, Faces Valuation Adjustment Mechanism Pressure
Lockin Tech's downstream customers include end consumers, corporate clients, ODM partners, and distributors. Sales to the top five customers accounted for 53.6%, 56.8%, and 65.2% of total revenue. Sales to the largest customer, widely believed to be
Numerous Complaints, APP Violations, and Failed Inspections On consumer complaint platforms, Lockin Tech has accumulated numerous complaints related to product faults, poor after-sales service, and core malfunctions. In December 2025, the "Lockin Smart" APP was flagged for privacy policy violations. In September 2023, Lockin Tech was fined for quality law violations after a specific door lock model failed a safety standard inspection. The company was found to have continued selling the product despite knowing it was non-compliant.
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