Fengyi Technology files for Hong Kong IPO with 2.01 billion yuan revenue
Shenzhen Fengyi Technology Group Co. Ltd. filed for a Hong Kong IPO, reporting 2.01 billion yuan in 2025 revenue and an adjusted net profit of 118.6 million yuan. The company operates 184,000 smart retail cabinets across China but contends with thin 2.5% operating margins and high costs. The listing follows poor performances by peers like Ubox and Qunabox, challenging Fengyi to prove the viability of its AI-powered unmanned retail model.
*this image is generated using AI for illustrative purposes only.
Shenzhen Fengyi Technology Group Co. Ltd. filed for a Hong Kong IPO last week, unveiling financial results that highlight the challenges of scaling unmanned retail. The company reported revenue of 2.01 billion yuan for 2025, up from 1.24 billion yuan in 2023, while its adjusted net profit reached 118.6 million yuan. Despite holding a 21.5% share of China's installed smart cabinet base, Fengyi's low gross merchandise value (GMV) share of 11.5% underscores the difficulty of generating high sales from dispersed, low-traffic locations.
Financial Performance and Margins
Fengyi's top-line growth has been accompanied by margin improvements, though profitability remains tight. Gross margin rose from 52.4% in 2023 to 55.8% in 2025. The company swung from an operating loss of 14.2 million yuan in 2023 to operating profits of 48 million yuan in 2024 and 50.8 million yuan in 2025. However, the 2025 operating margin was a slim 2.5%, weighed down by selling and marketing expenses of 960.8 million yuan, which consumed nearly half of the year's revenue.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue (yuan) | 1.24 billion | - | 2.01 billion |
| Gross Margin (%) | 52.4 | - | 55.8 |
| Operating Profit/Loss (yuan) | -14.2 million | 48 million | 50.8 million |
| Adjusted Net Profit (yuan) | - | 77.4 million | 118.6 million |
AI and Operational Efficiency
Central to Fengyi's strategy is its Flow Pilot AI system, which handles inventory and logistics decisions. In the fourth quarter of 2025, the system made nearly 120 million decisions daily, with only about 20,000 requiring human intervention. This automation increased the number of points each operations manager could handle from 303 in 2023 to 504 in 2025. The company, originally a subsidiary of S.F. Holding, became independent in 2024 and now manages its own regional warehouses and delivery drivers.
Market Context and Competition
Fengyi operates in a sector with a history of volatility, targeting semi-closed locations like offices and factories. The company's 184,000 cabinets give it the largest installed base in China. However, investor sentiment toward similar listings has been negative; rival Ubox (2429.HK) has lost nearly 80% of its value since 2023, and Qunabox (0917.HK) has dropped about 60% since 2024 despite reporting a profit. Fengyi's IPO will test whether its AI-driven logistics model can sustain profitability where others have struggled.
Can Fengyi's AI-driven logistics model sustain profitability as it expands beyond semi-closed locations into higher-traffic, competitive areas?
Will the recent poor performance of rival Ubox and Qunabox negatively impact investor appetite for Fengyi's IPO?
How will the company manage the high selling and marketing expenses that consumed nearly half of its 2025 revenue?
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