Shanghai Longcheer Technology Co., Ltd.

Date of Prospectus: January 14, 2026

Shanghai Longcheer Technology IPO: Growth Ambitions, Cornerstone Backing, and Financial Insights for Investors

IPO Snapshot: Structure, Offer Price, and Key Details

Shanghai Longcheer Technology Co., Ltd. (Stock Code: 9611) launches its Hong Kong IPO with a bold strategy focused on global expansion and innovation. The H Share offering targets both institutional and public investors, with a robust structure and clear growth orientation.

IPO Application: Fully electronic process via www.eipo.com.hk or HKSCC EIPO channel. Physical applications are not accepted. Eligible investors must be 18 or older, reside outside the United States, and have a Hong Kong address (for White Form eIPO).
Prospectus Website: www.hkexnews.hk and www.longcheer.com

Growth-Focused Use of Proceeds

Shanghai Longcheer is deploying its IPO proceeds to fuel an ambitious international and R&D expansion strategy:

• 40% (HK\$608.3 million): Expand production capacity, both in China and internationally, strengthening self-production capabilities.
• 20% (HK\$304.1 million): Ongoing research and development, focusing on proprietary innovation in key areas.
• 10% (HK\$152.1 million): Domestic and international marketing and customer expansion.
• 20% (HK\$304.1 million): Global strategic investments or acquisitions to strengthen and diversify the business.
• 10% (HK\$152.1 million): Working capital and general corporate purposes.

This capital allocation signals a clear commitment to growth, technology leadership, and global market penetration.

Offer Structure and Allocation

The IPO comprises a public and institutional offering, with a substantial cornerstone tranche and employee participation:

• Hong Kong Public Offering: 5,226,000 H Shares (10% of total shares offered, subject to reallocation)
• International Offering: 47,033,100 H Shares (90% of total, subject to Over-allotment Option and reallocation)
• Over-allotment (“Greenshoe”): Up to 7,838,800 additional H Shares (up to 15% of the base offer)
• Employee Preferential Offering: Up to 5,225,000 International Offer Shares reserved for eligible employees at the offer price
• Cornerstone Investors: 14,200,900 H Shares (approx. 27.17% of IPO, 2.72% of post-IPO capital) to named anchor investors, subject to 6-month lock-up

Shares not subject to lock-up: Post-IPO, 38,058,200 H Shares (expected market cap of HK\$1,179.8 million) will be freely tradeable, easily satisfying public float requirements.

Investor Participation, Cornerstone Investors, and Book Quality

Cornerstone participation brings high-profile names and confidence to the deal:

• Qualcomm Ventures LLC (US\$8 million subscription)
• Guokong Xinzhi Co., Limited
• Other strategic and financial cornerstone investors, as named in the prospectus

Cornerstone shares represent a significant portion of the IPO, and all are subject to a 6-month lock-up period, aligning interests with longer-term value creation.

No pre-listing disposals or sales by major shareholders are disclosed, and there are no side agreements granting preferential rights to cornerstone investors beyond guaranteed allocation at final offer price.

While specific oversubscription ratios are not disclosed, the presence of global institutional investors, a structured employee offering, and anchor commitments suggest substantial investor demand and a high-quality order book.

Deal Parties, Sponsors, and Underwriting Structure

The IPO is backed by an experienced syndicate of global and China-focused investment banks:

• Joint Sponsors: Citigroup Global Markets Asia Limited, Haitong International Capital Limited, Guotai Junan Capital Limited
• Overall Coordinators: Citigroup, Haitong, Guotai Junan
• Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers: As above, plus additional named parties
• Underwriters: Full underwriting for both Hong Kong and International offerings; discretionary incentive fee up to 1% of offer price, on top of a 2.2% base commission

Greenshoe (Over-allotment Option): Up to 15% of the offer size (7,838,800 H Shares), exercisable by the Overall Coordinators within 30 days after the offer closes, providing post-listing price support and market liquidity.

Book structure, sponsor quality, and the presence of stabilization mechanisms point to robust listing day support and orderly aftermarket trading.

Business Overview: Model, Products, and Market Position

Shanghai Longcheer Technology is a leading original design manufacturer (ODM) of smart devices, serving major global and domestic brands.

• Business Model: ODM for smartphones, tablets, smart hardware, and IoT devices
• Revenue Streams: Primarily sales of smart devices, with R&D and manufacturing as core strengths
• Key Products: Smartphones, tablets, wearables, IoT devices
• Customer Segments: Global consumer electronics brands and technology leaders (major customers account for a significant share of revenue)
• Geographies: Mainland China, international markets (expansion focus)

Industry & Sector: Global smart device ODM sector, highly competitive and concentrated, with a handful of major players holding significant market share.

Financial Health: (inferred from summary tables and narrative; exact multi-period figures are not provided, but key metrics are)

Competitive Position: The company emphasizes accelerated product iteration, premium client focus, and technology-driven profitability. Market position is strengthened by strong customer relationships and a track record of serving leading brands.

Management: Named executive team and board of directors, with deep sector and operational expertise, and a proven record in scaling the business globally.

Industry Trends, IPO Timing, and Market Environment

The smart device ODM industry is characterized by rapid technology cycles, global demand, and evolving customer requirements.

• Recent industry growth driven by demand for smartphones, tablets, and IoT hardware
• Customer concentration is a key risk, with major clients accounting for a large share of revenue
• Regional and global economic trends, as well as supply chain dynamics, impact business performance

IPO Timing: Offer period runs January 14–19, 2026, with listing expected by March 31, 2026. The offering is well-timed following the company’s successful A-share listing on the Shanghai Stock Exchange on March 1, 2024.

Recent Developments: The company reports no material adverse change in its financial or trading position since September 30, 2025. Its business has demonstrated strong and sustainable operating capabilities since its A-share debut.

Market Conditions: The prospectus signals a favorable environment for capital raising, with strong institutional and cornerstone support, no regulatory impediments, and robust demand outlook.

Risk Factors: Key Exposures and Business Risks

Investors should note several material risks disclosed by the company:

• Customer Concentration: A substantial portion of revenue is derived from a few major clients; loss of a key customer would have a material impact.
• Industry Competition: The smart device ODM sector is highly competitive and concentrated.
• Financial Trends: Historical results may not guarantee future performance; annualized metrics may be misleading.
• Supply Chain/FX/Commodity Risks: The company faces exposure to supply chain disruptions, exchange rate fluctuations, and input price volatility.
• Legal/Regulatory: Compliance with PRC and HK regulations, including the risk of adverse changes in laws or enforcement.
• Related-Party and Connected Transactions: All such transactions are disclosed, with no material adverse events reported.
• IPO Risk: If the final offer price is not agreed, the IPO will not proceed. The offer is also subject to termination clauses typical for Hong Kong listings.

Growth Strategy: Expansion, Innovation, and M&A

Shanghai Longcheer outlines a multi-pronged approach to drive growth and shareholder value:

• Capacity Expansion: Substantial investment in new production facilities and international manufacturing capability
• Research & Development: Ongoing investment to enhance proprietary technology and support independent innovation
• Marketing & Customer Acquisition: Focus on expanding the domestic and international customer base
• Strategic Investments/M&A: Up to 20% of proceeds earmarked for global investments and acquisitions, targeting technology and market synergies (no specific M&A targets named as of prospectus date)
• Working Capital: 10% of proceeds to ensure operational flexibility

The company also operates an employee stock ownership scheme, aligning employee interests with long-term performance.

Ownership Structure and Lock-up Commitments

Pre- and Post-IPO Shareholding:

• Post-offer: 522,590,644 shares outstanding upon completion of the IPO (excluding exercise of Over-allotment Option)
• Promoters/Major Shareholders: Maintain significant stakes, subject to lock-up commitments under Hong Kong Listing Rules
• Cornerstone Investors: 14,200,900 H Shares (2.72% of capital) locked up for 6 months from listing
• Employee ESOP/Reserved Shares: Up to 5,225,000 shares reserved

Lock-ups: Company and controlling shareholders have committed not to issue or dispose of shares for 6 months post-listing (company) and up to 12 months (major shareholders), except as permitted under the Listing Rules.

Valuation and Peer Comparison

Pro Forma Valuation Metrics:

• Pro Forma Net Tangible Assets per Share: HK\$15.00 (post-IPO)
• Market Capitalization (inferred): Based on A-share trading price and H-share offer, value exceeds HK\$24 billion, but no direct P/E or peer comparison data is provided in the document.

No peer symbols or sector P/E, P/B, or EV/EBITDA metrics are disclosed in this prospectus, so direct comparison is not provided here.

Dividend Policy and Payout

Dividends are to be declared and paid only from profits and reserves lawfully available for distribution. The company’s historical dividends should not be seen as indicative of future payout policy. No specific payout ratio or future dividend timetable is committed in the prospectus.

Research Coverage & Analyst Opinions

• Frost & Sullivan (Beijing) Inc., Shanghai Branch Co. provided industry consulting
• The Joint Sponsors and reporting accountants (Ernst & Young) have opined that the profit estimate for the year ended December 31, 2025, has been prepared with due care and is reasonable based on the company’s accounting policies and forecasts

No explicit price targets or analyst recommendations are published in the prospectus.

Listing Outlook: Is Shanghai Longcheer Worth Subscribing?

Shanghai Longcheer’s IPO is characterized by:

• Strong cornerstone and institutional investor participation
• Clear use of proceeds for global expansion and innovation
• Solid track record and no reported adverse developments since last financial close
• Experienced syndicate and robust post-listing support mechanisms (over-allotment option, stabilization)

Based strictly on prospectus disclosures, the IPO appears well-structured for a positive first-day performance, especially given the quality of the book and strategic anchor investors. The likely trading range is anticipated to be at or above the offer price, with upside potential if market conditions remain robust.

Where to Find More Information and Apply

Prospectus and application information are available at:

• www.hkexnews.hk
• www.longcheer.com

Application Channels: Apply electronically via www.eipo.com.hk (White Form eIPO) or through HKSCC EIPO channel. No paper/physical applications are accepted. Application window: January 14–19, 2026 (see detailed times above).