IPO News | Longcheer Technology, a “globally leading provider of smart products and services,” has launched its IPO subscription, with plans to list on January 22. The subscription amount for one lot is HKD 3,131.26.

Futu Information, January 14th: $LONGCHEER (09611.HK)$ An announcement was made on January 14th to January 19th for the IPO. The company plans to globally offer approximately 52,259,100 shares and is expected to be listed on January 22nd.

Company Overview

Longcheer Technology is a global leading provider of smart products and services, offering solutions—including product research, design, manufacturing, and support—to globally renowned smart product brands and leading technology companies. Established in 2004, Longcheer Technology has consistently adhered to the core values of 'customer-centricity, contributor-focused, and long-term orientation.' Over the past two decades, the company has accumulated industry-leading capabilities in smart products and developed a solution matrix encompassing conceptual design, hardware innovation, system-level software platform development, lean manufacturing, supply chain integration, and quality control. In 2024, $Shanghai Longcheer Technology (603341.SH)$ successfully listed on the main board of the Shanghai Stock Exchange.

Longcheer Technology has built the industry’s broadest and most comprehensive ecosystem of smart products compatible with popular platforms like Android and Windows. Centered around new customer demands, market opportunities, and technological innovations in the AI era, the company's product portfolio follows a '1+2+X' framework: '1' represents smartphones as the core business track; '2' includes personal computing and automotive electronics as key growth areas; and 'X' refers to multiple emerging consumer electronics businesses such as tablets, wearables, TWS earbuds, and smart glasses. This framework enhances the company’s all-encompassing product lineup.

Source: Prospectus

In recent years, Longcheer Technology's AIoT business has grown rapidly. According to Frost & Sullivan, the company’s shipment volumes in fields like smartwatches and fitness bands have ranked among the top two in the industry, leading the global smart wearable ODM market. Particularly in the smart glasses sector, the company has maintained close collaboration with leading global internet clients. In 2024, it successfully launched several models of smart glasses, with total shipments exceeding 2 million units, making it a globally leading provider of smart glasses.

Financial Overview

In 2022, 2023, and 2024, and for the nine months ended September 30, 2024, and September 30, 2025, Longcheer Technology's revenue was RMB 29,343.2 million, RMB 27,185.1 million, RMB 46,382.5 million, RMB 34,920.9 million, and RMB 31,331.6 million, respectively. During the same periods, the company’s annual/period profit was RMB 561.5 million, RMB 602.7 million, RMB 493.4 million, RMB 425.4 million, and RMB 514.5 million, respectively.

The company’s overall gross margin increased from 5.8% for the nine months ended September 30, 2024, to 8.3% for the nine months ended September 30, 2025, primarily due to the company’s efforts during this period to actively improve project quality and strategically abandon certain low-margin projects, focusing on achieving higher-quality growth. Market raw material prices stabilized, ending the upward trend observed in 2024.

Source: Prospectus

Industry Overview

Amid the accelerating integration of AI trends, leading ODM manufacturers are becoming an essential platform for brands to expand into diversified smart product categories, thanks to their keen market insights and mature platform capabilities. Through deep collaboration with brands across various industries and product categories, leading ODM manufacturers have established systematic, multi-dimensional market data and feedback mechanisms. Leveraging their in-depth understanding of AI technology pathways, they can accurately capture various consumer trends and technological evolution directions, distilling common patterns to provide forward-looking support for product planning and technology decision-making, helping brands create products with market potential.

The wave of AI is driving a comprehensive innovation in the functionality, form, and user experience of smart products, creating a rapidly iterating industry characteristic. Smart product ODM manufacturers, with their mature modular design capabilities, agile supply chain response systems, and extensive experience in large-scale production of multiple product categories, facilitate the efficient transformation of new products from AI technology prototypes to mass production, ushering in new development opportunities. Core AI-powered smart products include AI smartphones, AIPC, AIoT devices, and AI robots. The efficient and cost-effective hardware-software integrated platform solutions provided by smart product ODM manufacturers accelerate the commercialization of products across all categories.

In the global consumer electronics industry, the market share of consumer electronics ODM and EMS manufacturers has significantly risen from 75.1% in 2020 to 79.7% in 2024. Specifically, in the entire global consumer electronics market, the share of ODM manufacturers in 2020 was 40.3%, increasing to 46.2% by 2024. By 2029, the market share of consumer electronics ODM and EMS manufacturers is expected to rise further to 82.5%, with ODM manufacturers alone accounting for 50.8% of global consumer electronics shipments, sustaining rapid growth in the global consumer electronics industry.

Cornerstone Investor

Cornerstone investors have agreed to subscribe for a certain number of offer shares at the offer price, under certain conditions, amounting to approximately US$56.5 million (or approximately HK$440.2 million). Assuming the offer price is HK$31, the total number of offer shares to be subscribed by cornerstone investors will be 14,200,900 offer shares. Cornerstone investors include: Qualcomm, Jiangxi Guokong, OmniVision HK, Hong Kong Yutong, Qingdao Guanlan, Guotai Junan Securities Investment (Hong Kong) Co., Ltd., and Endless Growth.

Qualcomm: Qualcomm Ventures LLC ('Qualcomm') is a limited liability company registered in Delaware and a wholly-owned subsidiary of Qualcomm Technologies, Inc., which is ultimately controlled by$Qualcomm (QCOM.US)$.

OmniVision HK: Will Semiconductor Hong Kong Co., Ltd. ("OmniVision HK"), a limited liability company incorporated under Hong Kong law in 2008, is engaged in semiconductor design and sales. OmniVision HK is a wholly-owned subsidiary of $OMNIVISION (00501.HK)$ a company listed on both the Shanghai Stock Exchange and the Stock Exchange of Hong Kong.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Longcheer Technology expects the net proceeds from the global offering to be approximately HK$1.521 billion (assuming no exercise of the over-allotment option, with an offer price of HK$31). According to the prospectus, Longcheer Technology intends to allocate the proceeds from the global offering for the following purposes:

Approximately 40% will be used to expand the company's overall production capacity both domestically and internationally, thereby enhancing its self-production capabilities; approximately 20% will be allocated to support ongoing research and development efforts, particularly to strengthen the company's independent R&D and innovation capabilities in key areas; approximately 10% will be used to enhance the company’s marketing and customer outreach activities both domestically and overseas; approximately 20% will be dedicated to supporting the company's strategic investments or acquisitions globally; approximately 10% will be utilized as working capital and for other general corporate purposes.

Further reading:Longcheer Technology Prospectus

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