NewTimeSpace | IPO Decoding: Ali-Invested Woke Technology Submits HKEX Listing Application, Forging a Cross-Border New Retail Path Deeply Rooted in Southeast Asia

Recently, Shenzhen Woke Technology Co., Ltd. (hereinafter referred to as "Woke Technology") has submitted a listing application to the Hong Kong Exchanges and Clearing Limited (HKEX), with Huatai International acting as the sole sponsor. Backed by renowned institutions including Alibaba, the company's core business is to sell 3C accessories, small home appliances and other products to the Southeast Asian market under its own brands by virtue of a full-link digital platform.

According to data from Frost & Sullivan, based on retail sales in 2024, Woke Technology ranks first among Chinese cross-border companies in the Indonesian 3C accessories sector and sixth in the small home appliances sector.

Business Model: The Three Pillars of "Brand + Digitalization + Supply Chain"

Woke Technology positions itself as a cross-border new retail enterprise with full-link digital capabilities at its core. Its business model can be broken down into three mutually supportive pillars.

1. Own Brand Matrix

Rather than being a mere trader or distributor, the company has built a portfolio of own brands in the Indonesian market, such as VIVAN and ROBOT (focusing on 3C accessories) and SAMONO (focusing on small home appliances). Through brand operation, the company is able to reach consumers directly and accumulate brand equity, instead of only earning meager product price differences. Citing market reports, the prospectus states that these brands have gained high popularity and market share locally, laying a solid foundation for its business.

2. Omnichannel Sales Network

The company's sales rely heavily on its offline distribution network. As of the end of September 2025, it has connected with more than 40,000 small and medium-sized retailers (SMRs) in Southeast Asia. Although the revenue contribution from this channel dropped from 82.8% in 2023 to 69.5% in the first nine months of 2025, it remains the absolute mainstay. Meanwhile, the company has launched 55 official flagship stores on major regional e-commerce platforms such as Shopee and Tokopedia, and laid out live streaming on TikTok, driving the proportion of direct-to-consumer revenue up to 28.5%. This omnichannel strategy of in-depth offline distribution + comprehensive online coverage aims to maximize market penetration.

3. Digitalization and Supply Chain Integration

This is the core of Woke Technology's development story. The company claims to have integrated the entire chain from Chinese factories to Southeast Asian retail terminals through a self-developed digital platform. Addressing the pain points of the Southeast Asian market, such as fragmented channels, low logistics efficiency and low digitalization level, the platform is designed to help the company and its downstream SMR customers optimize product selection, manage inventory and improve logistics efficiency. The company's self-operated warehousing and logistics network and localized teams ensure the reliability of fulfillment and the responsiveness of services. The goal of this system is to reduce overall supply chain costs and convert efficiency into competitive advantages.

Financial Profile: High Revenue, Low Net Profit

In terms of financial data, Woke Technology has achieved steady growth during the reporting period. The company's revenue increased from RMB 908 million in 2023 to RMB 1.049 billion in 2024, and reached RMB 880 million in the nine months ended September 30, 2025.

In terms of profitability, the company's gross profit margin has shown a slight improvement trend, rising from 33.6% in 2023 to 36.9% in the first nine months of 2025, indicating an enhancement in the company's product pricing power or cost control capability. However, a look at the net profit margin reveals a relatively low level of profitability. The net profit in 2023, 2024 and the first nine months of 2025 was RMB 18.319 million, RMB 20.353 million and RMB 41.652 million respectively, accounting for 2.0%, 1.9% and 4.7% of revenue.

The core reason for this "high revenue, low net profit" situation lies in the high cost of sales, which accounted for as much as 66.4%, 64.4% and 63.1% of revenue in the corresponding periods. This means that for every RMB 1 of revenue, approximately RMB 0.64 is the direct product cost. This reflects the inherently limited profit margins and fierce competition in the 3C accessories and small home appliances industry where the company operates, and is also consistent with its market positioning of expanding through a cost-effective strategy.

Notably, unlike many consumer brands that rely on huge marketing spending, Woke Technology's sales and distribution expenses have remained at a relatively stable proportion of revenue (18%-22%), while R&D expenses account for a low ratio (1.3%-2.3%). This indicates that the company's key investment and core competitive moat may not lie in brand advertising or cutting-edge technologies, but in the "full-link digitalization" operational efficiency and supply chain integration capabilities that it has repeatedly emphasized.

Backed by Multiple Rounds of Capital, Focusing on the High-Growth Blue Ocean Market

Founded in 2014, Woke Technology has undergone multiple rounds of equity financing, attracting numerous investors including well-known venture capital institutions. According to the disclosure in the prospectus and Qichacha data, on the eve of the company's restructuring into a joint-stock limited company in November 2025, its shareholder structure included more than 20 institutional and individual investors. Among them, Mr. Xu, the founder of the company, is not only a direct shareholder (holding approximately 4.86% of the shares), but also controls nearly half of the company's equity in total through holding a controlling stake in Qianhai Hailu (holding approximately 44.06% of the shares). In addition, the shareholder list includes many investment institutions such as Shenzhen Yilian, Hangzhou Haoxing, Guangdong Lesso and Jinjiang Butong Jingrui. The latest equity transfer completed in January 2026 involved approximately 1.60% of the company's shares, demonstrating the sustained attention of the capital market prior to the listing.

From a market prospect perspective, Southeast Asia, where the company is deeply rooted, is showing strong consumption potential. The Frost & Sullivan report shows that the scale of the Southeast Asian retail market is expected to grow from US$879.9 billion in 2024 to US$1.2 trillion in 2029, with a compound annual growth rate (CAGR) of approximately 6.3%. The internet penetration rate is expected to reach 91.7% by 2029, the e-commerce industry is experiencing rapid growth, and the size of the middle class is expanding, which is expected to reach approximately 170 million by 2029.

Particularly in Indonesia, the company's core market, the 3C accessories market where it focuses its business is expected to achieve a CAGR of 8.3% from 2024 to 2029, the small home appliances market 5.6%, and the home building materials market 6.7%. The internet penetration rate is projected to hit 96.6%, and the middle-class population is expected to reach 56.6 million by 2029. Coupled with the comprehensive popularization of digital consumption habits, all these will further drive the development of the aforementioned markets.

The company is attempting to replicate its business model proven successful in Indonesia to emerging markets such as Vietnam and Thailand. Revenue from other countries in the first nine months of 2025 increased by 68.5% year-on-year, demonstrating the initial results of its regional expansion.

In addition, the prospectus discloses that the proceeds from this IPO will be used for:

Upgrading the supply chain and warehousing & logistics network: to strengthen warehousing capacity in Indonesia and improve logistics response speed and inventory turnover efficiency;

Expanding marketing and channel networks: planning to build a national physical brand store network in Indonesia, increasing investment in e-commerce promotion and live streaming ecosystem, and expanding channels to the Philippines, Thailand and Vietnam;

Building brand strength and digitalization capabilities: including product R&D, brand marketing, and all-round digital upgrading from warehousing IT systems to supply chain central systems.

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