On September 17, 2024, ShanH Technology Limited, a mobile phone recycling company from Anji County, Huzhou, Zhejiang Province, submitted its prospectus to the Hong Kong Stock Exchange for an IPO listing in Hong Kong. This marks another attempt following two previous failed applications on February 26, 2024, and September 17, 2024.
**Core Business**
ShanH Technology is a Chinese company engaged in providing consumer electronics recycling services, primarily focusing on the recycling of second-hand mobile phones and other consumer electronic products (mainly including laptops, tablets, mobile phone accessories, and other digital products) through online and offline trade-in services.
According to Frost & Sullivan data, ShanH Technology ranked as China's third-largest mobile phone recycling service provider in 2024, with market shares of approximately 1.3% and 1.3% respectively based on total transaction value of recycled second-hand phones and sold second-hand phones.
Leveraging proprietary testing, grading, and pricing technologies, along with recycling and sales online platforms, and strategic partnerships with upstream procurement partners (including mainstream consumer electronics brands and their designated distributors, major Chinese consumer electronics merchants, and major mobile network operators), ShanH Technology is committed to providing integrated comprehensive solutions. The company initiates recycling through trade-in methods to facilitate new device sales and conducts standardized resale of procured second-hand phones.
ShanH Technology has established and developed two core corporate brands: "ShanHuiShou" and "ShanHuiYouPin".
The company primarily obtains supply of second-hand consumer electronics through trade-in transactions at offline and/or online stores of upstream resource partners in its proprietary recycling system "ShanHuiShou", with a smaller portion through idle recycling. Individual consumers (end suppliers) purchase new consumer electronic devices at discounted prices by trading in their second-hand consumer electronics as part of payment.
Subsequently, ShanH Technology's testing and operations centers process the procured second-hand consumer electronics using proprietary testing, grading, and pricing technologies, and sell these products mainly through the company's online platform "ShanHuiYouPin" and self-operated stores on multiple third-party e-commerce platforms.
**Shareholder Structure**
According to the prospectus, ShanH Technology's pre-listing shareholding structure shows:
Liu Jianyi holds 31.71% through ShanHuiShou BVI; MGY Wisdom BVI (Liu indirectly 80%, Yu Hairong indirectly 20%) holds 10.72%; Yu Hairong holds 2.92% through MGY Alliance BVI. Liu and Yu collectively hold 45.35% beneficial interest.
Other notable shareholders include: XIAOMI-W (01810.HK) holds 6.83% through Shanghai Jiaozeng; Shunwei Technology and Hangzhou Shunying (associated with Lei Jun's spouse) hold 3.90% through Shanghai Wenwei; Tongchuang Weiye holds 8.50% through Shanghai Xiuhui; Zhuanzhuan's subsidiary Fatiao Shiguang holds 4.42% through World Circulation BVI.
**Management Team**
The board consists of 8 directors including: - 4 Executive Directors: Liu Jianyi (Chairman, General Manager); Yu Hairong (CEO); He Xiaomin (Chief Production Officer); Lin Lexin (CTO) - 1 Non-executive Director: Jiang Wen (Head of XIAOMI-W's Ecosystem Chain Department) - 3 Independent Non-executive Directors: Hou Siming (Managing Director of Baihui Capital); Dr. Liang Jianchang (Managing Director of Redbud Capital); Wen Zhuyun (Financial Expert at XYF.US)
**Financial Performance**
The prospectus shows that for 2021, 2022, 2023, 2024, and the first half of 2025, ShanH Technology's operating revenues were RMB 750 million, 919 million, 1.158 billion, 1.297 billion, and 809 million respectively. Corresponding net losses were RMB 48.708 million, 99.084 million, 98.268 million, 66.443 million, and 24.633 million respectively.
**Intermediary Team**
The IPO intermediary team includes: Qingke Capital as exclusive sponsor; KPMG as auditor; Han Kun as company's Chinese counsel; Fangda as company's Hong Kong counsel; Deheng as underwriter's Chinese counsel; Ditong International and Dehui as underwriter's Hong Kong counsel; Qingke Capital as compliance advisor; Frost & Sullivan as industry advisor.
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