A-share subscription | ODM manufacturer Longqi Technology (603341.SH) begins subscription. Its main customers include many well-known companies such as Xiaomi and Samsung Electronics.

On February 21, Longqi Technology (603341.SH) began the subscription process with an issue price of 26 yuan per share and a subscription upper limit of 14,000 shares. The price-earnings ratio is 24.13 times, and it belongs to the Shanghai Stock Exchange main board. Huatai United Securities is its exclusive sponsor. According to the prospectus, Longqi Technology is a technology company engaged in the research and development, design, manufacturing, and comprehensive services of intelligent products, belonging to the ODM industry of intelligent products. The company's business covers multiple countries and regions, providing professional comprehensive services for global top consumer electronics brands and leading technology companies, with main customers including Xiaomi, Samsung Electronics, A company, Lenovo, Honor, OPPO, vivo, China Post Communication, China United Network Communications, China Mobile Limited, China Telecom Corporation, and B company. The company has been deeply involved in the industry for nearly 20 years, accumulating strong capabilities in product-level solution design, hardware innovation design, system-level software platform development, lean production, supply chain integration, and quality control, forming an intelligent product layout covering smartphones, tablets, and AIoT products. The company mainly purchases electronic product components such as screens, casings, cameras, function ICs, memory, main chips, batteries, speakers, PCBs, etc. from well-known manufacturers such as Holitech Technology, Lextar Electronics, WPI INTERNATIONAL (HK) LIMITED, Young-won Precision, OFILM Group Co., Ltd, Tecoco, Qualcomm, Dongguan New Energy Technology Co., Ltd. With strong comprehensive product design and supply chain integration capabilities, the company has pushed forward and accelerated the localization process of domestic semiconductor components through deep involvement in the selection and development process, promoting the import of domestic supply chains and domestic substitution process. Currently, the company has research and development centers in Shanghai, Shenzhen, Huizhou, Nanchang, Hefei, and other locations, with a research and technology team of over 3,000 people. They have experience in developing multiple platforms such as Qualcomm, MTK, and Spreadtrum, as well as the development capabilities of operating systems such as Android, RTOS, and Wear OS. The company has intelligent product manufacturing centers in Huizhou and Nanchang, and has set up overseas manufacturing centers in India, Vietnam, and other places, preliminarily forming global delivery capabilities. Relying on the product customization and delivery capabilities covering the entire business chain, the company provides customers with product research and development services, including product definition, complete solution design, design simulation, appearance and structure design, circuit system design, key material optimization selection, module customization, development design, system-level software platform development, product testing and certification, supply chain management and integration, production operation, product delivery, etc., according to the product needs and market trends of different customers, jointly creating intelligent products with market competitiveness. In recent years, the consolidation of the global intelligent product ODM/IDH market has accelerated, with market share steadily concentrating towards industry leaders. According to Counterpoint data, Huaqin Technology, Longqi Technology, and Wingtech Technology are leading global smartphone ODM/IDH manufacturers. The market share of major global smartphone ODM/IDH manufacturers from 2020 to 2022 is as shown in the table below: According to Counterpoint data, Longqi Technology's smartphone shipments reached 138 million units in 2022, accounting for 28% of the global smartphone ODM/IDH shipments, ranking first globally, and has become a leading technology company in the field of intelligent product research and manufacturing. In the future, the company will continue to focus on technology and product innovation, continuously improve company efficiency and competitiveness, accelerate digitization, and play a leading role in facilitating the development of domestic supply chains, creating a comprehensive category, independently designed, intelligent manufacturing-leading, globally leading intelligent product technology company. Financially, Longqi Technology achieved operating income of approximately 16.421 billion yuan, 24.596 billion yuan, 29.343 billion yuan, and 10.8 billion yuan in the years 2020, 2021, 2022, and the first half of 2023 respectively. The company's net profit was approximately 299 million yuan, 548 million yuan, 561 million yuan, and 334 million yuan respectively.