New stock news | Flashback Technology again submits application to Hong Kong Stock Exchange, self-described lower gross profit margin may not achieve profitability, and may continue to generate losses in the future

According to the disclosure by the Hong Kong Stock Exchange on September 17, Flashback Technology Limited (referred to as Flashback Technology) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Clearwater Capital as its exclusive sponsor. It is reported that the company previously filed with the Hong Kong Stock Exchange on February 26 of this year. The prospectus shows that Flashback Technology is a Chinese company engaged in providing post-market trading services for consumer electronics products, focusing on the mobile phone recycling service market. According to Frost & Sullivan's data, the company is the largest provider of offline trade-ins for old-for-new mobile phone recycling services in China based on the total volume of transactions from consumers by 2023, as well as the third-largest provider of mobile phone recycling services in China, with market shares of approximately 7.4% and 1.4% respectively. In 2023, based on the amount of mobile phone sales recycled by consumers, the company is also the third-largest mobile phone recycling service provider in China. Flashback Technology mainly obtains the supply of second-hand consumer electronics products by conducting old-for-new transactions through its upstream purchasing partners in offline and/or online stores using its Flashback Recycling system. Individual consumers (i.e. end suppliers) purchase new consumer electronics products at a discounted price by using their old consumer electronics products as part of the payment. The purchased second-hand consumer electronics products are then processed at the company's testing and operations center using proprietary testing, grading, and pricing technology, and are efficiently sold to various buyers in the second-hand consumer electronics market through the company's online platform Flashback Shop and its proprietary online stores operating on multiple third-party e-commerce platforms. With its solid position in the Chinese mobile phone recycling service market and understanding of the demands and preferences of buyers in the second-hand consumer electronics market, the company has also been involved in corporate recycling and offline sales to meet the business needs of its upstream business partners and customers by processing consumer electronics products in bulk. Additionally, the company provides value-added and after-sales services to participants in the upstream and downstream value chain. Flashback Technology has established and developed two core business brands, namely "Flashback Recycling" and "Flashback Shop". "Flashback Recycling" is the main brand for the company's offline recycling business, where second-hand consumer electronics products are collected from individual consumers through its upstream purchasing partners. "Flashback Shop" is the main brand for the company's online platform and/or proprietary online stores on third-party e-commerce platforms for selling purchased second-hand consumer electronics products to customers. In terms of finances, for the six-month periods ending on June 30 in 2021, 2022, 2023, and 2024, Flashback Technology achieved revenues of approximately 750 million yuan, 919 million yuan, 1.158 billion yuan, and 577 million yuan respectively, with corresponding annual net losses of 48.708 million yuan, 99.084 million yuan, 98.268 million yuan, and 40.126 million yuan respectively.