Leading the global Android BIoT market share, can Shangmi Technology break through the valuation dilemma on the Hong Kong stock market?

ZC Asia has learnt that on 21 April 2026, Shangmi Technology officially launched its public offering in Hong Kong, with the stock code 06810.HK. The offer price has been set at HK$24.86, with 42.6268 million shares being offered globally, raising a total of approximately HK$1.06 billion. After deducting relevant expenses, the net proceeds are expected to be around HK$909 million. The subscription period runs from 21 April to 24 April, and the company is expected to be officially listed on the Hong Kong Stock Exchange on 29 April.

Global Market Leader with a Profit of HK$56.08 Million in the First Nine Months of 2025

Shangmi Technology’s core business is providing smart IoT solutions for offline commercial scenarios, specifically through an integrated service model combining “smart hardware, software and AI data insights”, primarily addressing the digital transformation needs of sectors such as retail, catering and logistics.

According to data from third-party research institutions cited in the prospectus, based on 2024 revenue, Shangmi Technology holds a market share of over 10% in the global Android-based BIoT market, ranking first globally. The company’s business network has expanded to over 200 countries and regions, with end-customers including well-known brands such as Sam’s Club, FamilyMart, Pop Mart, Alibaba and Uber Eats.

In terms of financial data, Shangmi Technology’s revenue for 2022, 2023 and 2024 was RMB 3.4 billion, RMB 3.071 billion and RMB 3.456 billion respectively; gross profit was RMB 957 million, RMB 821 million and RMB 997 million respectively; and net profit was RMB 160 million, RMB 100 million and RMB 181 million respectively. In the first nine months of 2025, the company’s revenue stood at 2.241 billion yuan, representing a 2.1% increase from the 2.195 billion yuan recorded in the same period of the previous year. Profit for the period was 56.08 million yuan, compared with 42.22 million yuan in the corresponding period of the previous year.

In terms of adjusted net profit, the figures for 2022, 2023 and 2024 were 206 million yuan, 105 million yuan and 220 million yuan respectively, whilst the adjusted net profit for the first nine months of 2025 stood at 93.37 million yuan. As at 30 September 2025, Shangmi Technology held cash and cash equivalents of 1.5 billion yuan. Overall, the company has demonstrated stable profitability; however, the profit figures for the first three quarters of 2025 remain relatively low compared to the full-year level, indicating some seasonal fluctuations or cost pressures.

Cornerstone subscriptions of US$36.57 million; multiple challenges remain post-listing

Regarding the shareholder structure, the prospectus discloses that Ant Group, Meituan and Xiaomi are all strategic investors in Shangmi Technology. The backing of such industrial capital not only signifies the company’s potential for synergy within ecosystems such as payments, local lifestyle services and smart hardware, but also provides strong support for the cornerstone subscriptions of its IPO. This IPO has brought in China Orient Enhanced Income Fund and Jiashan Xinwutang as cornerstone investors. The two institutions have collectively subscribed for approximately US$36.57 million, equivalent to around HK$286 million, accounting for approximately 27% of the total offering size. This provides a degree of assurance for share price stability during the initial public offering period.

However, behind the impressive shareholder lineup and robust revenue figures, Shangmi Technology still faces multiple challenges.

Firstly, there are issues regarding customer concentration and pricing power. The company’s core products are smart commercial terminal devices, primarily targeting large retailers, chain brands and SaaS service providers. The IoT hardware industry generally faces structural pressures such as price pressure from major clients and extended payment terms; should a major client develop its own equipment or switch suppliers, this would directly impact the company’s short-term revenue.

Secondly, global compliance costs continue to rise. With operations spanning multiple countries and regions, Shangmi must simultaneously comply with the EU’s GDPR, US state privacy laws and data localisation requirements across Southeast Asian nations, leading to ever-increasing compliance expenditure.

Furthermore, as an IoT company with Chinese origins, Shangmi may face the risk of exclusion due to non-technical factors in tenders for certain overseas markets. Thirdly, there is pressure on gross margins and competition within the hardware sector. In recent years, a large number of low-cost Android POS terminal manufacturers have emerged in China and Southeast Asia, leading to increasingly fierce price wars. If Shangmi is unable to boost its overall gross margin through non-hardware revenue streams such as software subscriptions and AI value-added services, relying solely on hardware sales will result in long-term downward pressure on gross margins.

Finally, there is the issue of the Hong Kong stock market’s valuation preferences for IoT companies. The issue price of HK$24.86 corresponds to total proceeds of approximately HK$1.06 billion. Given the current environment of divergent liquidity in the Hong Kong market and generally cautious valuations for technology stocks, whether Shangmi can secure a sustained valuation premium post-listing will ultimately depend on its ability to deliver on software and AI revenue, as well as its gross margin performance in overseas markets.

Overall, Shangmi Technology is a commercial IoT company with stable revenue and a strong shareholder base. The HK$1.06 billion raised through this Hong Kong IPO will be primarily invested in AI R&D, supply chain upgrades and global expansion. However, investors should also pay attention to risk factors such as customer concentration, global compliance costs, pressure on hardware gross margins and the valuation environment in the Hong Kong stock market.

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.