As we all know, Wingtech, Huaqin, Longqi is the world's top three mobile phone ODM manufacturers, occupying about 70% of the global mobile phone ODM / IDH market share, with the expansion of market volume and the enhancement of research and development capabilities, listing has become the target option of ODM manufacturers.
Today, Wingtech became the first A-share ODM stock after the backdoor listing of Zhongyin shares in 2016, and now has a market value of nearly 100 billion yuan; Huaqin submitted the IPO prospectus of the Science and Technology Innovation Board in 2021 and has received several rounds of inquiries; and the Dragon Banner, which first impacted the IPO and experienced two folds, seems to be one step slower.
However, in recent years, while the established business has grown steadily, Longqi has also accelerated its layout in emerging fields, and the speed of financing is also accelerating, perhaps, it is not far from its impact on IPOs again.
Continuous growth of mobile phone business
Longqi Group was founded in 2002, headquartered in Shanghai, has R & D centers in Shanghai and Shenzhen, has manufacturing industry bases in Nanchang, Huizhou, India and Vietnam, and has set up branches in Beijing, Hong Kong, the United States, South Korea and other regions, focusing on the design, research and development, manufacturing and service of smart phones, tablet computers, smart wearables, smart homes and other terminal products.
As of 2021, longqi smartphone shipments have achieved four consecutive years of growth, and shipments in 2021 have exceeded the 100 million unit mark for the first time.
In terms of customers, Xiaomi accounts for about 80% of Longqi's shipments. While vulnerable to fluctuations in a single brand, Dragon Banner has also benefited from Xiaomi's rapid expansion overseas, not only neutralizing the damage caused by fewer orders from huawei, the second largest customer, but also gaining more growth.
Moreover, after winning OPPO's outsourced order in 2020, Longqi received another order from Samsung in 2021, making progress in improving its customer structure.
Lay out new areas and accelerate the creation of 5G+AIoT
Although Longqi's mobile phone business has achieved continuous growth, as we all know, it is inevitable for the mobile phone market to enter the stock competition, so seeking new opportunities has also become an important issue for ODM manufacturers.
Compared with Wingtech's layout in the field of integration business + semiconductor + optics, and Huaqin's expansion in the fields of intelligent terminals, servers and automotive electronics, Longqi chose to closely follow the wind outlet of meta-universe and accelerate the layout of intelligent terminal markets such as AIoT.
Longqi said that as a pioneer in the domestic ODM industry, it has become the world's leading 5G+AIoT intelligent hardware platform.
Obviously, the rise of a series of intelligent waves and the awakening of independent innovation consciousness have provided more opportunities for ODM manufacturers to shift from manufacturing centers to innovation centers, whether it is vertical integration or horizontal expansion, which has made the industry competition more and more diversified.
Impacting IPOs again?
In 2018, after The Dragon Flag hit the IPO for the second time, it seemed to slow down the pace of listing. However, since 2021, Dragon Flag has been moving continuously, and the listing process seems to have begun to advance again.
In March 2021, Shanghai Longqi Technology Co., Ltd. completed a US$100 million Series B financing, led by Shenzhen Innovation Investment Group and Shenzhen Qianhai Wanrong Laterite Investment Fund. Du Junhong, founder of Longqi Technology, said that in the 5G era, the market boundary of smart products is getting bigger and bigger, which will bring new opportunities to the ODM industry and also put forward higher requirements for ODM manufacturers.
In July 2021, Nanchang Longqi Science and Technology Park held the opening ceremony, the park has a total investment of 5 billion yuan, the first phase of investment of 2.25 billion yuan, to build 28 TMT production lines, is expected to achieve an annual output of 72 million intelligent terminal equipment in 2022, the output value of 10 billion yuan.
In August 2021, Shanghai Longqi Technology completed the C round of financing, with a scale of more than 1 billion yuan, and the lead investor was the China Internet Investment Fund.
In January 2022, Huatai United Securities issued an announcement showing that Shanghai Longqi Technology intends to apply for an initial public offering of shares in the territory of the People's Republic of China and be listed, and has now urged it to study relevant laws and regulations, establish and improve the financial system, improve the management system, etc., and said that at present, Longqi has a preliminary plan for the investment project of the raised funds, and the feasibility study of the investment project of the raised funds needs to be further promoted in the follow-up.
It can be seen that on the basis of business expansion and enhanced technical reserves, Longqi is already on the way to be listed again.
Intelligent terminal is the most concentrated downstream application of semiconductor products, Longqi once announced after the C round of financing, will continue to increase the research and development of 5G emerging technologies and technical reserves, accelerate the layout in the field of AIoT and related new products research and development and production investment, and focus on the upgrading of smart factories.
Perhaps one day in the future, with the successful integration and development in the market, the figure of the top three ODM manufacturers will be seen in the stock market, and it is not known.