On the second day of Guanglian Technology Holdings' (02531) listing, its stock fell more than 5%, hitting a low of HKD 4.51, below its issue price of HKD 4.7. As of the time of publication, it has fallen 5.21%, to HKD 4.55, with a turnover of 44.932 million Hong Kong dollars.
According to the financial news app Intelligence Finance, Guanglian Technology Holdings (02531) fell more than 5% on the second day of its listing, hitting a low of HKD 4.51, below its issue price of HKD 4.7. As of the time of publication, it has fallen 5.21%, to HKD 4.55, with a turnover of 44.932 million Hong Kong dollars.
As a participant in China's automobile aftermarket industry, Guanglian Technology Holdings is a provider of in-car hardware and SaaS marketing and management services for industry players along the value chain. According to a report from Zhuo Shi Consulting, based on revenue in 2023, Guanglian Technology Holdings ranks first among SaaS marketing and management service providers in China's automobile aftermarket industry with a market share of 6.1%, and ranks third among in-car hardware providers in China's automobile aftermarket industry with a market share of 3.4%.
However, based on its financial data, Guanglian Technology's past profit performance is relatively unstable. Its gross margin from 2020 to 2023 is approximately CNY 0.11 billion, CNY 94.681 million, CNY 0.173 billion, and CNY 0.252 billion, respectively; its net income is approximately CNY 0.048 billion, CNY 0.035 billion, CNY 0.049 billion, and CNY 0.051 billion, respectively. In 2023, the company's gross margin reached 44.9%, a year-on-year increase of 3.1 percentage points, but the net profit margin decreased by 2.3 percentage points year-on-year to 9.2%. One of the main reasons for the pressure on profit growth is the rapid increase in distribution and sales expenses.