Hansen Software files for listing with HKEX: £345 million put options pose risk, profits plunge by 30%

ZC Asia has learnt that Shenzhen Hansen Software Co., Ltd. has recently submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with Guojin Securities (Hong Kong) and CITIC Securities acting as joint sponsors.

According to the prospectus, Hansun Software operates as a full-chain digital printing solutions provider, primarily offering print control systems, printing infrastructure and innovative printing services. Frost & Sullivan data indicates that, based on 2024 revenue, Hansun Software ranks first among global independent print control system suppliers with a market share of approximately 5.6%, underscoring its leadership within this niche sector.

The company's core strength lies in its integrated platform model, which combines print control systems, hardware infrastructure, and the RIIN Galaxy SaaS service, aiming to transform the delivery and scalable expansion of printing solutions.

However, beneath this impressive industry standing lie undeniable operational concerns. In the first eight months of 2025, while Hanssen Software achieved revenue of RMB 325 million, representing a 15.66% year-on-year increase, profit attributable to owners of the company plummeted by approximately 30% year-on-year to just RMB 68.219 million.

This profit decline stems from steeply rising expenses. Sales expenditure surged 88.7% year-on-year to RMB 14.133 million, R&D expenditure grew 58.1% to RMB 70.532 million, and administrative expenses increased 51.6% to RMB 32.057 million. The combined increase in these three expense categories amounted to RMB 43.492 million, far exceeding the RMB 15.43 million growth in gross profit over the same period.

More notably, two months prior to filing its listing application, Hansun Software completed an acquisition with a total cash consideration of RMB 337 million, securing a 51% equity stake in Shanghai Serudan. This transaction not only generated RMB 73.793 million in goodwill but also included a potentially far-reaching clause: the seller retains the right to require Hanssen Software to acquire the remaining 49% stake in Serudan for RMB 345 million after the end of the 2027 financial year.

Questionably, Hansen Software did not recognise this potential RMB 345 million payment obligation as a financial liability. Whether this accounting treatment complies with relevant International Financial Reporting Standards is expected to be a key focus of the Hong Kong Stock Exchange's review.

Concurrently, Hansen Software's asset quality has shown worrying signs. By the end of August 2025, the company's inventory carrying value surged to RMB 115 million, representing a 174.1% increase from the end of 2024. More critically, inventory turnover days rose sharply from 71.2 days to 132.5 days, with only 25.5% of inventory utilised or sold by the end of September.

The situation regarding accounts receivable is equally concerning. The outstanding balance of receivables grew from RMB 439 million at the end of 2024 to RMB 872 million, representing an increase of 98.2%. Moreover, only 46.7% of accounts receivable outstanding at the end of August 2024 had been recovered one year later, indicating a marked decline in collection efficiency.

In terms of business structure, Hansun Software remains heavily reliant on its print control systems business, which contributed 71.5% of revenue in the first eight months of 2025. Although the print innovation services business achieved rapid growth of 133.7%, its revenue scale of RMB 17.676 million accounted for only 5.4% of total revenue, proving insufficient to sustain the company's overall growth.

Another noteworthy phenomenon is the overlapping client relationships with multiple customers. From January to August 2025, revenue from overlapping clients and suppliers accounted for 39.5% of total income. More critically, the gross profit margin for these related-party transactions was markedly lower than the company's overall level, inevitably raising questions about the fairness of these transactions.

As of 31 August 2025, Hansun Software held RMB 160 million in cash and cash equivalents, supplemented by RMB 70.502 million in financial assets, indicating relatively ample liquidity. This situation has prompted market queries regarding the necessity of its current IPO financing.

Industry data indicates the global digital printing solutions sector is projected to grow from US$43.3 billion in 2024 to US$61.3 billion by 2029, representing a compound annual growth rate of 7.2%. Within this expanding industry, the market awaits whether Hansen Software can overcome its current operational challenges and successfully navigate the Hong Kong Stock Exchange's listing review.

For investors, Hansen Software's narrative presents a classic contradiction: on one hand, its leadership position and technological edge within a niche sector; on the other, a sudden deterioration in profitability and potential financial risks. How this tension will impact its listing journey remains to be seen.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.