A-share subscription | Hanshuo Technology (301275.SZ) opens subscription with a market share of over 60% in the domestic electronic price tag market in 2023.

On February 28th, Hanzhao Technology (301275.SZ) began its subscription with an issue price of 27.5 yuan per share and a subscription limit of 0.65 million shares. The price-earnings ratio is 17.14 times, and it belongs to the ChiNext board of the Shenzhen Stock Exchange, with CICC as its exclusive sponsor. The prospectus reveals that Hanzhao Technology is a high-tech enterprise with IoT wireless communication technology as its core. The company focuses on the digitalization of retail stores and has built a business system centered around hardware and software products and services such as electronic price tag systems and SaaS cloud platform services. An electronic price tag is an electronic display device with information receiving and transmitting functions, consisting of a communication module and a display module. The communication module can receive control commands and images from the server in real time, while the display module is responsible for showing the received images and information. Electronic price tags enable real-time and large-scale responses to product information data, facilitating functions such as price management, inventory management, and human-machine interaction in offline stores. From 2021 to 2023, Hanzhao Technology's operating income compound annual growth rate reached 52.99%. According to CINNO statistics, the company's market share in the domestic electronic price tag market is approximately 62% in 2023. The company's electronic price tag revenue scale also ranks among the top three among global listed company competitors from 2021 to 2023. The company has an early internationalization strategy and has established subsidiaries in countries such as the US, UK, France, Germany, the Netherlands, Australia, New Zealand, Singapore, Japan, Sweden, Canada, Vietnam, and Poland, serving over 400 customers in more than 50 countries and regions worldwide. During the reporting period, the company's electronic price tag terminal products mainly include five series: Nebular, Stellar, Nowa, Polaris, and Lumina. The sales of electronic price tag terminals accounted for 88.48%, 93.07%, 93.20%, and 91.83% of the company's main operating income, respectively, making it the main source of revenue for the company. It is worth noting that in the prospectus, Hanzhao Technology stated that during the reporting period, the company primarily adopted an outsourced processing model, with self-production as a supplement. Under the outsourced processing model, the company directly purchases electronic price tag terminals and other products from outsourced processing factories. The proportions of outsourced processing of the total number of product entries were 89.57%, 99.19%, 99.83%, and 99.91% for each period. The company has already coordinated production capacities and quality with big outsourced processing factories like Luxshare Precision Industry, BYD Company Limited, and Huizhou Iwatsu Technology Co., Ltd. Given limited self-production capacities, the company has focused on investing resources in the supplementary production capacity of key electronic paper display modules, resulting in the proportion of outsourced processing entries exceeding 99% since 2022. Hanzhao Technology pointed out that since its establishment, the production and procurement model for electronic price tag terminal products has evolved from pure outsourced processing to a combination of a small amount of self-production and outsourced processing. For components and other intelligent hardware apart from electronic price tags, the company mainly relies on outsourced processing for production. Currently, the company's self-owned production line capacity is still limited, and in the future, the company plans to further expand its self-production scale to ensure the supply and delivery of electronic price tag terminals and core display modules. The company aims to use the raised funds for the following projects after deducting issuance expenses: Financially, the company achieved operating income of approximately 1.613 billion yuan, 2.862 billion yuan, and 3.775 billion yuan in 2021, 2022, and 2023, respectively. The net profit was approximately -6.6125 million yuan, 208 million yuan, and 678 million yuan, respectively.